Big problems usually begin as small problems. So, it shouldn’t surprise us if the economic disturbances of the last years compound into something bigger.
The two old friends speak out on the US fighting tooth and nail to retain their world reserve currency status, with the threat of Russia’s gold-based trade currency closing in.
This will be one of the biggest blunders the Fed has ever made. The Fed is pounding the stock market’s head (and all markets) into the ground at a time when the economy is extremely damaged..
Gold is not an investment. Gold is real money and a long term store of value. It is original money and the measure of value for everything else. Gold’s value is in its use as money.
It seems unlikely in today’s climate to get governments to come together for a Plaza Accord-type agreement, which leaves a currency war as the likely outcome. Keep holding physical gold and silver while the storm is brewing!
In the end, of course, the Fed will capitulate. They will have no choice, and the next QE and rate cut program is going to melt your eyebrows. The metals and miners will soar accordingly, but that's only after...
A yield on gold and silver is an attractive alternative to falling yields in dollars or the negative yield with costs of vaulting your precious metals. But are the yields high enough?
