Image Source: Pexels

Yesterday we discussed how the parabolic spike in precious metals signaled that our current debt based financial system has entered its final chapter.

In case you missed it:

1. The defining issue for the last 50 years has been the super cycle bull market in bonds. This bull market meant that from 1982 onwards, debt payments became cheaper and cheaper, allowing governments to issue gargantuan amounts of debt.
2. This super cycle bull market in bonds ended in 2020-2022. Since that time, bond yields have spiked higher and are now consolidating.
3. It is not coincidence that precious metals erupted higher when the bull market in bonds ended. For centuries, gold and silver have been “crisis trades” that investors turn to during times of panic.

We got confirmation of this yesterday when rumors swirled of a major financial institution missing a margin call and being forced to liquidate its precious metals positions in the overnight session Sunday night.

This panic selling resulted in silver plunging 16% and gold plunging 5% intraday… while the odds of a major bank failing by January 31st 206 hit 71% in the betting markets (h/t Bill King).

(Click on image to enlarge)

The “big tell” in all this mess is the fact that both gold and silver have already rebounded sharply. If everything was actually fine “behind the scenes” gold and silver would have stayed down after their initial plunge.

They’re not.

As I write this, silver has already recouped nearly half of its losses from the panic liquidation Sunday night. This signals RABID demand from the markets. 

(Click on image to enlarge)

Big Picture: precious metals are signaling something MAJOR is coming down the pike in our financial system. When even a large-scale liquidation can’t stop silver or gold from rallying you KNOW it’s time to back up the truck!

Those investors who are correctly positioned for this could generate life-changing returns. 

More By This Author: