The richest institutions in the world are banks, and if you want to get wealthy, you need to pay attention to what they’re doing. The Federal Reserve was claiming that we were in a transitory inflation a month ago, and now the song they’re singing has changed completely.
Now, inflation suddenly isn’t transitory, and we’re all going to suffer to get out of the hole that they’ve been digging for an entire decade. That’s going to be tough, and the low-income families are going to bear the bigger end of the burden. Follow this link to read more https://www.cnbc.com/2022/01/07/gold-markets-world-health-organization-omicron-covid-variant.html.
However, it’s still not too late to make a comeback and make things a bit easier for the future. Everyone knows that the present can be better, but the only way to make it better is by sacrificing your money momentarily in the hopes of it being worth more in the future.
The heads of banks have often claimed that gold is real money, and everything else is just borrowed from its worth. We can think of the dollar, as well as any other fiat currency, as credit, instead of being real money. The current value of the entire sector of precious metals is around 10 trillion dollars.
The entire stockpile of gold in the world can be melted into a cube that’s 60 feet wide, and it’s going to weigh less than 160 000 tons. It’s a form of money that can’t be counterfeited, and it can never become corrupt. It’s the simplest, most obvious choice for the money, and it promises everyone a better future by just existing and retaining value.
How do the markets look?
Exter’s inverted pyramid came to life in the 50s, and it has remained relevant ever since. John Exter was one of the most important people in his time because he was a Board Governor of the Federal Reserve. You can’t get to that position if you’re not intelligent.
He created a tool that helps everyone see how the state of the market is doing. Click here to read more. Every single asset class in the world is presented in a single image, and we can see that the biggest expenditures and money lie in the niche of derivatives.
That includes futures, options, leverage, and margin trading. Those are all bets with the future of the market, and they’re the riskiest form of investing that society has created. An interesting thing about them is that they’re the largest store of money, as well as the riskiest investment class.
There have been a couple of cases where the liquidation of a single hedge fund or massive whale trader has led to an avalanche of liquidations that ends with the termination of the market. Since new bets are being placed each day, it only takes one big mistake to make everything much worse than it already is.
A couple of large players in the market have the power to collapse it. In the same image, we can see that the most secure asset class is gold. Silver is in the same league, but the metals have different properties. Gold is primarily used as an investment, while silver can also be used in the industry because of its great properties.
Whenever times are good, money goes from the pockets of retail investors all the way up into derivatives. That’s where we are at the moment. However, when times are uncertain, money flows down from derivatives into securities such as precious metals. Furthermore, the laws of supply and demand always work.
When a lot of money gets pumped into a specific sector, the prices of the assets are going to skyrocket. Since no one has the confidence in shadow derivatives and government liabilities, it makes sense to start putting some money into gold bullion.
The cascade effect from the top down is going to happen fast, and the people who have reserves of precious metals are going to be quite happy. The United States is a country that has the most debt in the world.
Even though the dollar is the reserve currency of the world, hyperinflations can start happening in a few weaker countries. That has already occurred in Venezuela, which had an inflation rate of 1500 percent last year. Those kinds of situations are quite hard to be reversed, and countries like Ghana and the Philippines might follow soon.
What can you do?
A hundred years ago, the currency of Germany lost all of its value in less than a year. Now, no one knows when the dollar is going to lose its value, but we can all see that the purchasing power is dropping down. The currency itself could last ten years.
It could also last for a hundred or a thousand years. No one can determine what is going to happen in the future. But, everyone can see that you can buy fewer things with the same amount of money. This trend has been happening for the last 50 years, ever since Nixon removed the gold standard.
An interesting thing that happens when paper money fails is that hard money prevails. The only hard money alternatives at the moment are Bitcoin and gold. Since 99 percent of the world hasn’t heard of Bitcoin and doesn’t know how to use it, the only possible solution is gold.
The world has already operated on it, and there’s no way to fake it. Since derivatives have been artificially created and inflated, their destruction is going to bring a lot of money into the niche of precious metals, and their prices are going to rise astronomically.
The previous bull market of 2008, when there were 300 to 400 percent gains, is going to look like child’s play. Since the Republicans and the Democrats can’t agree on the budget and the debt for the following year, a default is possible. In that case, the results for the markets are unknowable, but the rate of growth for silver and gold is going to be positive.