The Future of Money, and Wealth Storage
Paper precious metals investments will be under attack for as long as financial markets function and thus, even when physical gold and silver win their war with the vendors of fraudulent fiat currency and financial markets, there’s no guarantee that anything other than the real thing will benefit.
Despite the price suppression of the past 6 years (that will definitely end), the cartel has been unable to push gold below its cost of production no matter how hard it’s tried.
As for the attractiveness of physical metal versus paper precious metal investments, gold production rose by less than 15% over the last 15 years, and may plunge to turn of the century levels over the next decade. Aboveground inventories have also plunged. Global demand hit an all-time high in 2015, before numerous currencies started crashing
Many mining companies project flat production into the foreseeable future, if not a catastrophic production collapse.
US President Trump’s proposal of an unfunded corporate tax cut is projected to add $2 trillion to the national debt, just as the debt ceiling is about to be reached. This, atop the potential government shutdown and the historic nuclear war drills in New York and Washington, along with North Korea’s largest ever live-fire drill and the prospect of all laptops being banned from Europe to US flights.
Then there is the soaring cost of real estate in an environment of record-low savings, labour participation, and real earnings, while all other economic data weakens. This, as the crude oil price threatens to plunge. Amid these headwinds, the Fed predicts lower growth.
Finally, Hoffman discusses the Indian cash ban and a rapidly unfolding situation in the world of Bitcoin.
As history’s largest, most destructive fiat Ponzi scheme implodes, government attempts to control competing currencies will become more draconian. They will all fail as wealth storage—gold, silver, Bitcoin or any competing currency—migrates out of the system. The need to own physical assets rather than paper assets is urgent.