Bill’s Blog | November 7, 2022
I follow the gold and silver markets closely, and watching the significant price increases over the last few weeks in both assets has been interesting. Both assets have been under pressure this year mainly due to the strong US dollar other than the war spike in February; however, there are increased risks in the markets globally. We have had considerable drops in currency values all over the globe. Gold and silver have done very well in currencies with large devaluations: the Yen, the Pound, the Euro, the Yuan, the Turkish Lira, and even the Canadian dollar, to name a few. Since gold and silver are priced in US dollars, this distorts their value.
So what is causing the price appreciation? Multiple crises are playing out right now; the British pension crisis and several large banks in the EU are in big trouble with too much leverage. Central banks are scrambling to try and stabilize their crashing currencies and diversify the US dollar holdings, but the Fed has been raising rates at a record pace this year, making the task almost impossible.
Here is another exciting development: Central banks bought almost 400t of gold in Q3’22. These purchases are the largest since 1967.
When big money purchases gold, you know they have insider information and know that something big is brewing. Gold is real money, and everything else is credit. Gold has proven to be the best safe-haven asset over millennia and a pillar to storing wealth. The World Gold Council (which backs the gold mining industry) is actively working toward there own digital gold currency with all major players in the industry.
Another critical factor I have alluded to in past Blogs is the growing divide between East and West. For example, both China and Russia are working towards backing their currencies with a basket of commodities (it may be sooner than many imagine), and both gold and silver will most likely be a significant part of it. Both Nations have amassed immense quantities of both gold and silver. India is also another significant purchaser. Also, estimates are that up to 65% of the world’s population will join the Eastern block of Nations, which will have a massive impact on precious metals prices shooting up in value.
I forecast that gold and silver price will dramatically increase over the coming decade. Based on several reasons mentioned above, but also on primary supply and demand issues. Mike Maloney, a precious metals expert, has forecast for years that a day will come when gold and silver will be unavailable and unaffordable. Our fiat currency system is broken, and historically when politicians and central bankers destroy the currencies with endless printing, the solution is gold and silver backing. I suspect history will repeat.
Then, of course, they will try to introduce CBDC first (Central Bank Digital Currencies) to fool the population; however, these, too, will fail, especially if they are unbacked by commodities. Britain’s new Prime Minister recently said that the G7 countries are all working together to launch CBCDs by 2025. Ironically, his father-in-law is the creator of the CBDC technology. The PM is worth over 700 million pounds (mainly from shares in his inlaw’s company…no conflict there, of course!) Many other financial experts and I are very concerned about the coming CBDCs, which will be 100% programable and will track every dollar you spend. The CBDCs will be all about control of the masses and way too Orwellian for me! The Chinese digit Yuan follows this exact model.
I invite you to join me this Saturday at 10 AM PST to listen to one of Canada’s top silver experts Peter Krauth. Please register for this 45-minute webinar with Q&A for 10 to 15 minutes.
You are invited to a Zoom webinar.
When: November 12, 2022, 10:00 AM Vancouver
Topic: Straight Talk on Silver, Peter Krauth/Silver Expert/Author/Speaker
Register in advance for this webinar:
https://us02web.zoom.us/webinar/register/WN_owmLL8dOStuj5Ei9dINE8A
After registering, you will receive a confirmation email containing information about joining the webinar.
Have a great week and hope you join us Saturday,
Bill Westmacott, Owner
fivefoldfinancial.ca