If foreign demand for dollars and Treasuries weakens, the United States faces a painful adjustment. Less demand means higher borrowing costs, greater downward pressure on the dollar...
In a nutshell, registered silver stocks declined, but total physical stocks increased. This signals category movement and net deposits, not escalating depletion of physical silver.
If we go back about 45 years, we discover that inflation wasn’t always defined simply as “rising prices.” Economists understood it as an increase in money and credit.
A de-dollarization of the world economy could cause a dollar glut. The U.S. currency could further depreciate. At the extreme, global de-dollarization could spark a currency crisis.
As the war drags on, we have seen the national debt pass $40 trillion, diesel fuel prices at the highest ever, and inflation hitting the middle class and poor even harder.
These situations look like Ponzi schemes where it takes endless new money coming in—mostly by way of expanding credit—to keep fueling the upward path that makes these stocks enviably hot.
For Prins, gold’s long-term outlook depends less on any single Fed meeting and more on the continuing demand from buyers who want a scarce, physical asset.
