Regarding your quoting of Rick Rule on silver, I think it could come even sooner than that. When looking at the charts, from its recent collapse to 28 or so, it has paused and given nothing back after a strong bounce. Its lateral move suggests to me that it's winding up for another big move higher. I'm pissed at myself for not adding a bunch more when it was below 30.
I also think the fact that silver is hanging tough could well mean that gold's correction will be a shallow/lateral consolidation to work off overbought conditions. If gold was in for a steeper correction, I think silver would be losing steam from its recent strong bounce.
Another gem, Jesse. Adopting the mindset that gold is the ultimate yardstick is an enormously important mental leap to make.
A possible follow-on article might be to share your thoughts on stacking gold v. silver for the common man or woman. While individual circumstances differ, are there general principles about how to go about it? e.g., start with the Venezuelan one-oz-of-silver-feeds-family-of-four-for-a-month and go from there? Junk silver, quality silver, and then gold; or other approach(es)? Never store in a bank vault or safety deposit box (channeling Egon), …
Another well written explanation as to why folks should own PMs. Please tell me what happens to the price of gold when we flip from fiat to digital finance and that flip might not be too far away.
One of the clearest explanations I’ve seen connecting fiat decay to gold’s rise. It’s striking how many investors still think in nominal terms rather than purchasing power terms. When you realize fiat currencies are inherently programmed to lose value over time, owning real assets like gold stops feeling like speculation—and starts feeling like basic self-defense.
I somewhat disagree with your point here. While you are correct that some of gold's price appreciation is a direct proportional consequence of the declining purchasing power of currencies, some of it is real.
In other words it is not just that fiat currencies are declining - gold actually buys more loaves of bread, cars, houses etc. today than it used to.
This is because gold becomes a much more valuable asset when its competitior stores of value become less attractive. In safer times people do not need gold and the demand is low. But now everyone wants it and its real price rises with the increased demand.
Yes, I see your point on that and expect gold to increase in terms of purchasing power even more once the Everything Bubble bursts and stocks, bonds, and real estate prices sink in terms of gold.
i’ve been fairly successful in getting friends & family to stop thinking in terms of fiat price, but rather as you describe here. it’s a pretty big shift in how to think about this subject, but necessary. also, i’m pretty sure all the readers here would agree that CPI isn’t anywhere close to reality for many obvious reasons which is why i prefer john williams’ shadowstats. another good article jesse!
Brilliant piece again Jesse. Very strong analysis on de-valaution of major currencies. I agree, ultimately the fiat currency will die - all reserve currencies fade away into oblivion over time. Ray Dalio talks a lot about this. The Debt Burden and the death of the US dollar is inevitable. Gold and Silver will rule the future.
World debt is not the "official" $318 trillion figure at all. It has been in the multiple
QUADRILLIONS for years...and getting worse by the day.
The Weimar Republic existed from 1913 to 1933 until Adolf fixed it with a national
bank. Anyone who simply bought gold and silver coins thrived in that time. The other
99% starved. Same thing today.
Jesse has warned us the dollar is going to keep collapsing and prices are going to keep
exploding. Only gold and silver will protect you. That's it.
Rick Rule predicts when gold blows thru $3,700, silver will finally explode. His opinion
is based on a lot of experience, facts, and figures. We will see the natural, historical 16 to
1 gold/silver ratio return. Be right and sit tight. Put your counterfeit "money" into silver
bullion you hold personally.
Yes, we are creating a Bubble Community!
Great points as usual, Roger. Yes, the situation is indeed worse than the official statistics indicate. I hope to write about that one of these days.
Regarding your quoting of Rick Rule on silver, I think it could come even sooner than that. When looking at the charts, from its recent collapse to 28 or so, it has paused and given nothing back after a strong bounce. Its lateral move suggests to me that it's winding up for another big move higher. I'm pissed at myself for not adding a bunch more when it was below 30.
I also think the fact that silver is hanging tough could well mean that gold's correction will be a shallow/lateral consolidation to work off overbought conditions. If gold was in for a steeper correction, I think silver would be losing steam from its recent strong bounce.
And the time to do that is running out …. Rapidly
C.grats Jesse..I saw you on.. KITCO...well done..
But... the wording..most currencies should have been..ALL f.i.a.t paper promises...
Name me one...that has held valus against the..king of kings...gold...?
cheers
Thank you! Yes, all fiat paper promises are doomed in the end...
Another gem, Jesse. Adopting the mindset that gold is the ultimate yardstick is an enormously important mental leap to make.
A possible follow-on article might be to share your thoughts on stacking gold v. silver for the common man or woman. While individual circumstances differ, are there general principles about how to go about it? e.g., start with the Venezuelan one-oz-of-silver-feeds-family-of-four-for-a-month and go from there? Junk silver, quality silver, and then gold; or other approach(es)? Never store in a bank vault or safety deposit box (channeling Egon), …
Thanks, Stephen! Yes, that's a good point.
Sure - I've been meaning to write something like that, so I will put it in the queue. Thanks for the idea/reminder.
Another well written explanation as to why folks should own PMs. Please tell me what happens to the price of gold when we flip from fiat to digital finance and that flip might not be too far away.
Thanks, Alastair!
One of the clearest explanations I’ve seen connecting fiat decay to gold’s rise. It’s striking how many investors still think in nominal terms rather than purchasing power terms. When you realize fiat currencies are inherently programmed to lose value over time, owning real assets like gold stops feeling like speculation—and starts feeling like basic self-defense.
Thanks, Chase! Yes, most people think in nominal terms, which central banks use to their advantage.
That's so true - I can't image not owning gold in these times.
I somewhat disagree with your point here. While you are correct that some of gold's price appreciation is a direct proportional consequence of the declining purchasing power of currencies, some of it is real.
In other words it is not just that fiat currencies are declining - gold actually buys more loaves of bread, cars, houses etc. today than it used to.
This is because gold becomes a much more valuable asset when its competitior stores of value become less attractive. In safer times people do not need gold and the demand is low. But now everyone wants it and its real price rises with the increased demand.
Yes, I see your point on that and expect gold to increase in terms of purchasing power even more once the Everything Bubble bursts and stocks, bonds, and real estate prices sink in terms of gold.
i’ve been fairly successful in getting friends & family to stop thinking in terms of fiat price, but rather as you describe here. it’s a pretty big shift in how to think about this subject, but necessary. also, i’m pretty sure all the readers here would agree that CPI isn’t anywhere close to reality for many obvious reasons which is why i prefer john williams’ shadowstats. another good article jesse!
https://www.shadowstats.com/alternate_data/inflation-charts
Thank you! Feel free to send them this article if it will help open their eyes.
Gold (and silver) miners may also become some kind of an edge. Agnico-Eagle post increased profits that bode well for this industry's future.
Yes, I'm a big fan of them and I'm in the process of writing a report on that topic.
A very clear and concise article. Thank you.
Thanks, Bharat!
Knock me over with a feather! Really? Who’d of thought.
😉
https://x.com/MoneyMetals/status/1947666036087460264
Brilliant piece again Jesse. Very strong analysis on de-valaution of major currencies. I agree, ultimately the fiat currency will die - all reserve currencies fade away into oblivion over time. Ray Dalio talks a lot about this. The Debt Burden and the death of the US dollar is inevitable. Gold and Silver will rule the future.