Gold is on fire right now.

Actually, scratch that… gold has been on fire for decades. It’s outperformed stocks since 2000 by a wide margin. 

Wait, what? You mean to tell me that gold, which Warren Buffett famously claimed doesn’t do anything but “sit there” has been a better investment that stocks, which demonstrate the best of humanity’s innovation and productivity?

Yep.

The reason?

The below chart. This is a chart of the purchasing power of the $USD. As you can see, since 2000 alone, the $USD has lost HALF its purchasing power.

(Click on image to enlarge)

This is what happens when you allow the government to spend an ever increasingly amount of money, while simultaneously allowing your central bank to print new money and use it to buy government debt: your currency collapses.

Gold is perhaps the ultimate hedge against a currency collapse. Small wonder then that it’s gone absolutely vertical as the $USD lost 10% in the last two months.

So where do things go from here?

The U.S. economy is rolling over which means it’s only a matter of time before the Fed is forced to start printing money again. Throw in the fact that despite all the hoopla about DOGE, the Trump administration continues to run “Crisis type” deficits, and the door is open to a full-scale $USD collapse.

This is an extremely dangerous situation. The odds of a U.S. dollar collapse are now higher than at any point in the last 30 years.

More By This Author: