gold news

 hi i'm gonna get right to the news today but first uh you know go to my website and download a free copy of my book it's the best-selling book on precious metals and uh you know you can buy it on amazon or you can get it here for free now before i get into the news very often i'll go go down and scroll through so you know go through these charts and talk about the gold silver ratio and the prices and so on one thing that i have never shown you before is that if you click on these links here

it'll drill down to more detailed charts that are more interactive you can change the time frame on them here you can compare them to different indices you can do ratio charts and so here's gold and you see this sort of march up other than you know this bump here and this dip here you could draw a pretty nice trend line over that thing and it's just going up and up and up very very nicely very reliably uh but you know this was the uh pullback just before the big mad rush into gold and silver

but what you see here is 1500s uh you know dipped down into the high fourteens uh the sixteen hundreds the seventeen hundreds and then in just the past you know this was the mid seventeen hundreds and low seventeen hundreds and in just the past two weeks here we've gone into the low 1800s and uh you'll see later that there's uh some major banks now saying that uh record highs are almost inevitable for gold uh in short order here silver when you look at this you know you had 1850 back here in february

and it dropped all the way to 12. i wish i had had more cash on the sidelines back then because this is the gold silver ratio as you'll see in a minute this is where the gold silver ratio peaked at 122. but we go back into the 14s 15s and then up into the mid-17s and then in just the past month uh it has uh gone all the way up into the high 19s and we're hanging out just below uh 20 bucks now so pretty impressive performance and as far as the gold silver ratio what that what that translates to

when this is rising gold is outperforming silver or silver is falling faster than gold that's what was happening here both of them fell as you recall from those other charts hitting a peak of silver's value being 1 122nd of gold's value in other words it took 122 ounces of silver to equal the value of one ounce of gold but since then silver has been outperforming gold and that's what causes this to fall and we've gone from 122 all the way to 92. this is a big percentage move

on the part of silver catching up with gold so getting into the news uh virus surge and new china tensions could spark a 20 to 30 percent market meltdown now um a 20 to 30 i i believe that the market meltdown really needs to be something more like 70 to get us into reasonable territories for the markets probably even more than that because of the contraction of gdp the size of the market compared to the economy we really need to get back to fair values on stocks like an 80 to 90 percent crash at this

point however 20 to 30 percent is enough to scare the fed into action and when they start doing a bunch of stimulus and what they call asset purchases because remember in order to get currency into circulation the fed counterfeits it into existence and then they buy something with it what they buy is usually from a big brokerage house and that puts it into the markets basically but 20 to 30 percent should scare them into creating lots of currency and manipulating us into a even more warped economy with

even greater bubbles than we currently have and it'll turn this melt down into a melt up where the markets are going up even though the valuations of the the p e ratios they're going to be going insane the stocks will be a bad bad bet one day right now people that are in stocks have done pretty well because they've front run the fed they saw the fed creating currency they all jumped into the market one day reality we'll catch up with everybody we'll see how long that takes but when

it does it's going to be horrific at this point because of how warped everything is if they had not blown the currency supply into massive bubbles if ben bernanke hadn't done what he did during the bailouts from the qe one two and three if they hadn't pushed the markets into these insane back into hyper bubbles if they hadn't pushed real estate back into hybrid bubbles maybe we'd be able to uh get through this pandemic without the carnage that you're going to see but i am uh

seriously worried about the stability of the global financial system i'm not sure how well the monetary system will be able to hold up during this there is no alternative the s p standard poor's says that governments must spend to support coronavirus hit economies and this just goes on and on here we have the fed opens a 600 billion main street program to colleges and hospitals and other non-profits now 600 billion that doesn't sound like much anymore does it i mean we always talk about trillions

but got to remember this is 0.6 trillion and so it is significant um when you talk about a you know greater than 4 trillion spending this year and we're not done yet but before we get to the increase in spending uh post-pandemic world is a will will be a frightening mix of financial bubbles and massive debt this is a pretty good article uh it is uh from australia though so he's writing it from an australian perspective but really this applies to the entire world uh we are going to see this uh

super warp i mean the fed warps all central banks warp their economies uh when they do any currency creation it the wherever the currency is spent first is driven up into bubbles and it comes at the expense of the rest of the economy and so they're stealing from one part of the economy to make a gift of it to the others i've got some videos coming out that will show this in much greater depth but when you have massive where at the end of the pandemic we're going to be left with massive

massive debt and a whole bunch of bubbles that are popping and so on so it's it's going to be the strangest thing you've ever seen i don't believe that anybody has ever experienced anything like what we're going to go through and nobody has experienced in anything even near it in our lifetimes uh jamie dimon the ceo of jpmorgan chase he's warning for the u.s economy and that nobody knows what comes next and in this article he says it's a waste of time even trying to figure it out he says it's like staring

you know staring into a black hole basically so he's gotten much more pessimistic on the outcome of this so we're probably getting near the end of this dead cat bounce before the crash continues uh ceo of major asian banks says it's a big challenge is looming for the uh global economy and uh later on the thing i liked about this article is later on it's got singapore's economic slowdown so you know how i love charts and uh this is the second quarter contraction that singapore has had

but um uh you know and this is bad but it's only going to get worse we're not we we're nowhere near the end of we're we're just uh we're probably 25 the way through this uh uh crash and the re maybe even less than that maybe 10 this could be bad i i'm getting ready actually for the possibility of a total monetary system collapse now that may never happen it's a tail risk but that's a tail risk where people can actually die that has food shortages and the gas stops coming out of the pump and i live

at the top of a of a skyscraper in puerto rico where they have enough problems with the power already but if the monetary system breaks down then after a while the power stops and you have to pump water up to my level and so i'd have all of these floors and it's a long way down to the bottom here to bring water up so um you know i'm right now looking at land up in the mountains and but this is the deflation you know i've been talking about in deflation inflation and deflation simultaneously and i'm seeing food go up

at the supermarket where i live i don't know how it is where you live but you know beef prices are up significantly and many other prices have risen quite significantly but new york city landlords slash prices on a third of rentals as new yorkers flee and they're fleeing from the city to the suburbs and here is a map of uh some of the fall in prices you know the areas that are hit the hardest and then gasoline this is a gasoline and diesel fuel update actually i should probably should refresh this because uh

i did this uh last week well this is close enough uh you can just see this downward trend from uh mid last year this is a one year chart basically and that is deflation and so is the real estate the real estate was in a gigantic bubble though uh but this will probably continue for a while until the fed and the other central banks come to even more of the rescue there is no end in sight congress can confronts new virus crisis rescue package this article fiscal cliff threatens fragile u.s recovery

and we're just not going to see this it's not going to be a recovery we're going to flatten off at a very low level of economic activity for quite a while it's not going to come charging back but here it says that there's another round of stimulus and that stimulus donald uh trump has insisted that it be it shouldn't exceed 1 trillion but house democrats have already approved a 3.5 trillion package so we're talking about some major currency creation coming our way and when this pandemic started i said

that this isn't you know this this first this cares package that they passed right away that that is by no means the end that this is going to get a lot worse and so they passed 2 trillion now there's another 3.5 so we're up to 5.5 trillion on top of the deficit spending that they were already planning which was going to be like a trillion and a half or so and so i mean they they could end up uh i mean this is nowhere near done uh you're going to see this just continue i am hoping that we aren't in the middle

of witnessing the demise of the monetary system as it as it stands right now but you know one of the things that i identified when i was writing my book i started looking for cycles and patterns that repeat and i put every single uh crisis that i could say every stock market crash set of bank runs every kind of crisis that i could find into a spreadsheet looking for something that had uh a sort of irregularity about it and what i found just leapt out at me was uh that the world has a brand new monetary

system every uh 20 to 30 years or so and now we're way way overdue for the next monetary system and the current monetary system is the worst designed out of all the monetary systems but we've had four in the past century um gold has surged due to pandemic and could keep going here's what to know about investing now this was one of the stories and what i found very entertaining is you get down into the middle of the story and they're interviewing somebody named albert cheng and he says that typically

financial advisors recommend a gold allocation of one to five percent and you know for they might be doing that on the average right now but for the first from uh the year 2000 to 2010 or so they weren't recommending any you should stay away from gold gold is death it's been going down for 20 years and then it set uh these brand new highs in 2011 and they started recommending a little well guess what back in the 70s they didn't recommend any and gold went up 24 times its price that means if you put

10 percent into gold and you lost the other 90 you lost 90 percent of your portfolio you would have been 2.4 times richer on just the 10 if you were a european americans could not buy gold when we ended the bretton woods system in 1971 it wasn't until the first day of 75. that americans could buy gold but when that gold bull market started after nixon took us off of the bretton woods system on august 15th of 71 gold went up 24 times silver went up 36 times so if you had had 100 of your assets

in gold you would have been 24 times richer not 2.4 and that is the reason that i you know for for a long time i was one i i used to tell people i'm fully diversified i've got both gold and silver well now i've got gold silver cryptos and a few uh stocks of some silver exploration companies those are highly risky that's my gambling currency i don't recommend anything i i never recommend anything except to learn as much as you can about what's going on with the financial system

and your own financial education so but he does say that uh it could shift higher from 5 to 15 you know and i've seen studies that if you go from 1970 until today which includes then in the enormous bear market where gold went from 850 to 250 from 1980 all the way to the year 2000 even including that bear market a 35 gold allocation uh to stocks no bonds whatsoever in your portfolio all the professionals recommend bonds for stability and hedging but when you do gold that is the best risk reward ratio but

when you limit it to just the secular bull markets of of uh precious metals and you can measure these by measuring them against the stock market and against uh the the growth of the currency supply against a whole bunch of different things and you can identify when they were fundamentally undervalued and started their secular bull market and this pullback that we've been in since 2011 i realized that's a long time and it's been a very grinding grueling thing to get through but we are now on our way out of it and the

second leg up of this secular bull market with a cyclical bear market in the middle that's what we've had moving on uh city says it's only a matter of time before gold hits a record and they are right one of the things that i said when the pandemic started is that just when everybody wants precious metals there's going to be less supply and one of the things i said is during this pandemic they're going to have to close mines because you can't send a bunch of guys down into this hole

working in close proximity with each other when they've got this virus and so pan america has suspended their operation of their silver mines in peru so two of their mines are temporarily suspended silver uh surpassed 20 for the first time since 2016 uh and it'll go much higher but now that is on silver futures contracts that's not spot silver so what you want is spot physical silver as far as prices so this is the speculation of where it's going to go and i haven't read the whole article so i don't know

which contract it is because there's always contracts that go forward different months zimbabwe steps closer to hyperinflation with only 737.3 annual rate of inflation right now so they don't consider that hyperinflation which is somewhat insane the monthly inflation rate rose in may to uh 31.7 from 15.1 so the inflation rate doubled in may and what i find so comical about this is you know in november mid-november of 2008 their inflation rate hit 89.7 sextillion percent i've shown you these before

here's a one dollar zimbabwe note and this is a 2007 and here's a 100 trillion dollar zimbabwe note from 2008 and the thing is that when the when rhodesia became zimbabwe in 1980 the zim dollar was worth more than the u.s dollar it took about a buck 52 or a buck 62 a u.s to buy one zim dollar and then by 2006 they had to lop off three zeros and come out with a new zim dollar so basically you could take 1 000 of the new if you took in 1 000 of the old zim dollars to the bank and you exchanged it you got

one that said one on it but that one had the same purchasing power as the previous 1000 so they lopped off three zeros then in 2008 they lopped off 10 zeros so now that's the third zim dollar and then in 2009 they lopped off zeros and so that's the fourth zim dollar and what the total inflation is is that when you add all of this together it's 10 trillion trillion of the final zim dollars had the same purchasing power as one of the original 10 trillion trillion i you know life is uh sort of a series

of bad jokes just one after another and they just don't learn now what i find interesting in that article on bloomberg is at the very end of it it says the central bank banned bulk payments on mobile money platforms which authorities blame for undermining the currency no it wasn't that they printed too much it was people trying to use things like things like bitcoin and stuff that's what caused the hyperinflation so this is a great article uh definitely worth a read all of miss shedlock's mike shedlock's

articles are fairly short so they're a very easy read but judy shelton who is a gold advocate may soon be on the federal reserve board of directors and here she wrote back in 2008 if capitalism depends on designating a person of god-like abilities to manage demand and supply for all forms of money and credit currency demand deposits money market funds repurchase agreements equities mortgages corporate debt we are as doomed as those wretched citizens who relied on central planning for their economic salvation now

she's talking about the ussr and mao's china and zimbabwe [Laughter] it's time to take on the task of establishing a new foundation for international economic relations and financial relations one dedicated to open markets and based on monetary integrity that's how a gold standard works we need to fix the money literally well she's this bringing back a gold standard changes the currency back to money basically however i'm on record for saying gold standards suck it's better to use

real gold a gold standard is some representation of gold and then getting toward the end here this article is definitely worth a read uh if it's a little bit more technical but it shows that all of these whenever you hear that a gold standard doesn't work or a gold standard limits it's because of this or there's not enough gold that is a bunch of baloney it has nothing to do with it anybody that says that does not know anything about economics they're economically ignorant if they say

that there's not enough gold or that a gold standard somehow uh constrains economic growth what it constrains is government spending that's what it constrains and so uh that civilized relic now john maynard keynes called gold a barbaric barbarous relic at one time so the article is that civilized relic a monetary system as good as gold and gold it turns out is not a perfect system but it's the best one that the world has ever known and uh now we're at the meme and i'm just going to let you sit with

this one you can read it i have no comment i want to thank you very much for watching we'll see you next time