U.S. MARKET FRONT

Once upon a time, not too long ago, the U.S. dollar remained strong and was regarded a safe-haven currency because, in part, America was perceived as having the world’s strongest economy.

However, now with the Federal Reserve and Washington pumping in countless trillions of digital dollars printed on nothing and back by nothing, the dollar has fallen 7.5 percent from its mid-March high.

Despite the dollar bouncing back a bit today – gold hit a new high and silver prices keep rising.

As with many commodities, the precious metals are priced in dollars, so they become cheaper for foreign investors when the dollar softens.

But, it’s more than that. Yes, it’s cheaper for foreign investors, but across the globe, central banks and governments are doing the same as the U.S.: flooding their countries with cheap money and in turn devaluing their currency… and precious metal buyers know it!

Also, while many analysts are bracing for inflation to gain strength, thus pushing gold prices yet higher, we disagree.

Yes, we are forecasting much higher gold prices, but not because of traditional inflation. We are forecasting, “Dragflation: economies, prices of products, and currencies will decline.”

Thus, it will cost more to buy products not because they increased in price – indeed, we expect supply to overwhelm demand – but because it will take more cheap money to buy them.

As we accurately have forecast, gold and silver will continue to rise in value as governments and central banks continue to flood the world with cheap money that becomes worth even less as more pours in. The cheaper money gets, the less it is worth, and metals will float above the ocean of worthless digits.

TREND FORECAST: In June, when silver was trading in the $17 an ounce range, we forecast it was ready to break out, and, when it did, it would accelerate at a faster rate than gold. Silver is up over 30 percent since that time.

 We maintain our forecast that when gold strongly breaks above $2,000 per ounce, silver will spike much higher, doubling in price to $40 per ounce… and higher.

In fact, on 18 June 2020, Gerald Celente was a keynote speaker for the Elementum International AG conference, where he precisely forecast the Silver Bull Run. Since then, silver’s price has done nothing but rise, reaching a six-year high.

In addition to it being bought for its monetary value, silver, which outshines copper as the best conductor of electricity, is also a key element in electronics, photovoltaic panels, cell phones, keyboards, etc. Therefore, with these sectors accounting for more than half of silver’s market and world governments committing more than $50 billion worth of “green” initiatives, most in renewable energy, they are polishing silver’s future.

Moreover, unlike gold, there are no silver stockpiles.

As prices have risen, holdings of bulk silver traded on exchanges have grown 35 percent this year to about 820 million ounces worth about $17 billion. Share prices of silver mining company Fresnillo are up 70 percent this year; Hochschild, another silver producer, has seen its stock price gain 40 percent in recent months.

Silver’s price has risen 70 percent since its March low, compared to gold’s 24-percent gain.

The spread between silver and gold prices peaked at 125 percent in March. It has eased since then, but remains well above its average of 66, making it likely that the metal’s price can climb higher.

The Oil Front

Oil prices remain relatively steady but are unlikely to settle above $50 this year. Most producing regions, including U.S. oil shale plays, need prices higher than that to turn a profit. As we have forecast in our Geopolitical section, with tensions heating up in the Middle East, should major military conflict erupt between Egypt and Turkey and/or the U.S. and Israel vs. Iran, oil prices will sharply spike.

Should that occur, the already declining world economy will crash further into the “Greatest Depression.”

10 Comments
  1. Eric Swan 1 week ago

    I think water will be the new gold. Sure gold is a wonderful metal but try being without water. I remember the 94 northridge earthquake and people were lined up around the block with gallon bottles in their hands. I keep 12 gallons at all times. THere waas an episdode of the twilight zone where one man had bars of gold and the other had a flask of water. Each swig of water cost 1 gold bar. At the end when their bodies were found. One future person said to the other. Gold was a valuable commodity at one time before we started manufacturing it.

  2. Lisa Pratt 1 week ago

    I have silver , but I keep thinking what good will it do it do me ? If we’re into a society where we get marked with those crazy implants and cannot participate in society without one , what good would it be ?

    • Lisa, to make your point, go to China and try to buy an icecream cone with some of your silver. Or convert it to Chinese currency and try to buy that icecream come with it. Spoiler alert. Without your cell phone you’re not going to be licking that cone any time soon.

    • DC 1 week ago

      Lisa, I just made a similar comment over on Greg Mannarino’s article. Sorry guys, but I always read Greg’s article first. The digital Beast system won’t tolerate any divergence. Gold and silver will be analog in a total surveillance digital world. Gold and silver may eventually become useless as “money”. Yeah, they laughed at Noah, too, until it started raining…

  3. Falk 1 week ago

    To respond to Lisa’s comment – I have learned from other investors not to worry too far into the future, but take it one step at a time. There is not much point speculating about what may or may not happen, but base your decisions on the trends evolving right now.

  4. Joseph Johnigk 6 days ago

    Don’t forget the underground economy that will develop because of this

  5. Glen Goldborg 6 days ago

    My dad is a WW2 hero and we’re losing him now at 96yrs old. He’s given me wisdom I could have never learned in books, just by looking into his experienced eyes. He’s given me the key to pandora’s box all the way from those days at Normady. Things with such value. As I watch this world unfold, I’m almost glad my dad won’t be here to see what he and many others who put their lives on the line for. I have his paychecks from the entire campaign totaled, yet they weren’t even enough to pay for the ambulance to take him to the hospital. Our monetary system and our so-called leaders have let us all down. What happened to self discipline and integrity. If there’s one thing my dad has taught me and history repeats, sometimes you find value in things you never thought had it…. like actual physical possessions of any kind that people always need. Simple or inexpensive doesn’t matter

  6. Charles Stansfield 6 days ago

    With the precipitous decapitation of the U.S. Dollar, America’s partners in the newest Mexico-Canada-USA free trade “deal” will find that their currencies will tank along with the Amero-buck. Canada’s standard of living will fall to equal that of Mexico’s. Why? Because both economies to the north and south of the United States will be almost completely dependent on the American market, and America will get its raw materials of all sorts from the gargantuan resources of Canada, replacing especially the niche markets for resources currently derived from China, such as the “rare earth” commodities. Both Mexico and Canada have immense oil reserves, and both have labor markets that will soon not be worth much more than China’s slave labor system. The U.S.A. must do this in order to survive, and its neighbors will be beggared, especially Canada, which has had a standard of living just slightly below that of the U.S.A. Canada also has NO gold reserves left, thanks to the short-sightedness of its free-spending semi-socialist governments over the past 30 years. Also, Canada will have to make a choice: to allow China to own more and more Canadian industries/assets and to colonize larger swathes of the Canadian northern landmass. including oil fields and gold mines. Canada’s second choice is to become even more closely-aligned to the U.S.A., which is what it must do. In fact, I am in favor of Canada becoming a Territory of the U.S.A., much the same as Puerto Rico is today, with an eye to Canada finally becoming another few American States. Canada is flirting with Chinese Communism, and has been doing so for 40 years under the Trudeau semi-dynasty; both Pierre Trudeau and Justin Trudeau have close PRC connections. In my opinion, America must annex Canada to prevent China and Russia from taking control of the Arctic and the Northwest Passage areas. I pray that America will effect this sooner rather than later, when it will be much more dangerous to confront China and Russia to prevent their taking over northern and western Canada. Vancouver is already referred to in the U.S. market as “Hongkouver” and “Chinada”. Canada is the laughing stock of the western world currently, with Justin Trudeau at its rudderless helm.

  7. Ranger 2 days ago

    Charles, say goodbye to your healthcare if you want Uncle Sam to take over.

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