Debts Lift Gold

The world is awash in debt, an immense, unfathomable ocean of financial obligations. The stack of IOUs is so enormous, the balances so large, they will never be fully settled without dreadful consequences to the global economy. This tsunami of debt was unleashed in 1971 when Nixon ended the backing of the US dollar with gold.

Since 1971, US debt and gold price have increased greatly. Traditionally, rampant increases in US debt occur when trying to pull the economy out of an economic downturn as displayed in the spikes that occurred in 2008 and 2020. Considering the amount of debt that has already been taken on to combat the pandemic combined with the rising uncertainty involving vaccinations and new strain variants, it can be anticipated that the worst is yet to come. As Democrats push towards passing an additional $1.9 trillion stimulus package, governments are willing to take on previously unforeseen levels of debt to prop up the economy during the pandemic. This could lead to a promising future for the price of gold.

(Click on image to enlarge)

Debts Lift Gold | US Public Debt Lifts Gold Chart | Nick Barisheff

This divergence has been caused by manipulation of precious metals. A great deal has been written about this and one of the best books on the subject is Rigged – Exposing the Largest Financial Fraud in History by Stuart Englert. 

Price manipulation never lasts, and when it ends there always tends to be a reset to inflation-adjusted levels. The biggest questions are, when and how high will gold and silver prices rise?

However, even with manipulated markets precious metals have outperformed traditional financial markets and have generated over 10% returns in all currencies over the last 20 years.

How soon precious metals rise to normalized levels depends on how rapidly governments and central banks inundate the world with debased dollars and other fiat currencies, and how quickly individuals and institutions lose faith in those increasingly worthless debt-based currencies.

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Disclaimer: The information contained in this article/video provides a general overview of subjects covered, and the expressed personal views and opinions are not intended to be taken as advice ...

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