Bill’s Blog | July 19, 2023
Before we get to the big news, let’s do a quick history lesson on Gold. Gold has been genuine money from antiquity and built many empires. Tomb raiders, archeologists and the odd farmer have unearthed vast treasures of Gold hoards. Why? Humanity is obsessed with the yellow metal, and it has served to create and store wealth for millennia.
As with all asset classes, they go in cycles. Gold has been on an uptrend for over 20 years (though corrected for six years after the 2011 record highs), and I believe the best is yet to come. Gold generally maintains its purchasing power and has long been valued by the wealthy and central banks to diversify and maintain wealth. We are seeing this play out again with Central Banks, who have been on a record tear of accumulation. The BRICS have been quietly doing the same for the past decade. If you do not understand why, let me help you. Politicians worldwide have been printing money at a record pace, devaluing their currencies and causing massive inflation & Debt. The perfect recipe for Gold appreciation, as we have witnessed over the last six years.
All fiat currencies fail (that’s history), and Gold is the great equalizer for stabilizing trade and restoring trust in the currency system. Silver and Gold were used in trade for thousands of years and eventually minted into coinage over 2400 years ago. Gold & Silver were central to the monetary systems in Europe and North America for hundreds of years. That changed in 1971 when President Nixon defaulted on the Brenton Wood Agreement, a Gold-backed exchange system between 44 Nations developed after WW2 to stabilize global trade. Since this historic event, the world has been on a Debt-based system backed by nothing, which is why we are in the crises we are in today. Most of the world is enslaved with record Debt (Countries, businesses and consumers). We will see history repeat itself as Nations want a sound money system.
I have written about the 500-year East/West cycle in the past and in my Wealth Foundations Course. I have also called it the bifurcation of nations and the emergence of opposing trade blocks. Unfortunately, but not surprisingly, the USA has weaponized its currency many times and oppressed nations who would not comply with US policies. Finally, many countries are saying enough, and we need to develop a fairer system of trade that once again has built-in trust backing it with Gold. Hence the August 22nd meeting of 41 countries in Johannesburg, South Africa.
The BRICS (Brazil, Russia, India, China and South Africa), the original trading alliance of emerging economic powers, will be heading this meeting. So let’s consider why this new monetary trade system will be so significant and what it will mean for you and me.
- There has been a media blackout in the West regarding this historic event. Why? Could it be it undermines the Western fiat system?
- China and Russia are spearheading this new currency system. Russian Sergei Glazyev has been working on this Gold-backed trade system since March 2022.
- Russia confirmed last Friday, July 14, that a Gold-backed trade system would be announced in Jonhansberg during the three-day summit of 41 nations participating. The Shangia Cooperation Organization members and associates will be attending.
- Many Asian and Sub-Saharan nations will be present.
- The new trade currency will impact 50% of global trade and makeup 70% of the world’s population.
- The result will weaken the US dollar/Euro and Western currencies. As the dollar falls in value, many nations will lighten their US dollars and look for a better alternative (most likely this new Gold-backed trading currency) and Gold itself.
- Seeing how this plays out in the coming months and years will be fascinating.
Will history repeat?
After Nixon ended the Gold trading system in 1971, Gold went from $35/oz to $43/oz in short order. By the end of 1974, Gold had exploded over fourfold to $197.50 and in 1980, it reached a record price of $850 US, a 24X gain. WOW! Silver did even better, increasing from $1.30 per oz to $49.45 with a 38X return.
- I suspect history will repeat, and Gold/Silver will have a repricing in short order. How quickly and how high is any ones guess, but I am pretty confident Gold and Silver are going much higher! Several analysts I follow, predict $2500 by year-end. We will see.
- Gold Price July 14: USD 1955.21 YTD Return 7.19% and One Year 14.34%
- I have said many times; Silver is the most undervalued commodity on the planet and one of the most critical metals for the green revolution. Yes, more volatile, but also on the upside. As of July 17, Silver is USD 24.81.
So, what is one to do?
- I recommend you become your own central bank and take a sizable position in physical Gold and Silver. There is a real potential for a life-changing upside of 5X, 10X, 20X or more over the next decade or less.
- Imagine having enough wealth to be 100% Debt free, with no mortgage and being able to purchase cash-flowing assets and buy other appreciating assets as inflation persists.
- Sadly, most people will do nothing and miss a once-in-a-lifetime opportunity to create significant wealth. I encourage you not to be one of them.
- I have been helping clients purchase, sell and store Gold and Silver since 2011. If you need help, please let me know, and I will share my expertise and walk you through a simple process.
- You can purchase Gold/Silver with Cash and transfer RRSP/TFSA’s and RESP for your children.
- The key is to start where you are at. Work towards 20 to 30% of your networth in Gold/Silver. I will explain why if you reach out to me.
- The remainder of 2023 and the future should be exciting for both Gold and Silver, especially if you own it!
- JP Morgan 1912, “Gold is money, and everything else is credit.”
All the best for the remainder of 2023,
Bill Westmacott, Owner, Financial Educator and Solutions Provider