Earlier this week I wrote a note that included information from Rick Rule. That information is that gold was $250.00 in the year 2000 and is currently over $2700.00 today. Even so, many ask him when gold will go up.

I believe that this shows how biased the media is in reporting financial news. Every new record in the stock “markets” are celebrated with hats and balloons on the financial game shows while new highs in the metals “markets” are ignored. Of course, when gold and silver pull back it is front and center. If you watch the commercials, you can see why.

When I used to go on CNBC, Fox Business, and others I was routinely cut off when I talked about gold, natural gas, etc. That is not what they SELL.

How many people do you know that actually understand that in 2024 gold substantially outperformed the major stock “markets”? How many people understand that it is not gold rising but currencies collapsing?

One of the main ways we can tell that currencies are collapsing is that if we look at some major currencies and the rise of gold in those currencies it gives us a good look at how fast currencies are losing purchasing power.

In 2024 gold gained:

27.2% in US dollars. 35.6% in the Euro, 37.1% in Swiss Francs, 41.7% in Japanese Yen.

This is an illustration of why our US dollar “appears” strong. They compare it to these other currencies that are collapsing faster. This is why we hear about a STRONG dollar while we are seeing massive inflation- which means we are losing purchasing power.

Using the local stock “markets” and according to Reuters gold outperformed local stock “markets”

· United States Gold up 27.2%- S&P up 23.3%

· Germany Gold up 35.6% -DAX up 18.8%

· Switzerland Gold up 37.1% SMI up 4.2%

· Japan Gold up 41.7% Nikkei up 19.2%

Both assets are buoyed by a weaker currency. However, with economies collapsing globally the stock “markets” will have a far harder time going forward keeping their momentum. Also keep in mind that many companies are drowning in debt- adding another layer of risk that if they cannot carry that debt the first to lose is the common share holder. If a company defaults your shares could go to ZERO with NO CHANCE of any recovery. Yes, balance sheets are STILL IMPORTANT even though many will ignore this peril. Gold does not have this risk as it is an ASSET rather than a promise to repay.

My opinion on this is that moving forward we could easily see hard assets, and gold and silver in particular, outperform stock “markets” which have been propped up by artificially low interest rates, stock buybacks, and purchasing of shares by central banks and their friends to enrich themselves.

I also believe that we are nearing the end of the ability of the Fed and major US banks in particular to keep the price of gold suppressed. Try as they may- and I see the manipulation on the charts day after day the price continues to rise. This is because with every beatdown there are central banks out there that are buying every dip. They are using our own price suppression scheme against us.

Virtually the only central bank left suppressing the price is the Fed. Why? To give the illusion of dollar strength and to try and keep the US dollar as the preeminent settlement and reserve currency.

While those “in charge” are touting crypto, their actions are saying buy real stuff.

At the end of the day those shouting that debts and deficits do not matter and that those “in charge” have our backs will be proven wrong once again-just like the hundreds of examples we have seen throughout history. It is NOT different this time.

Three hundred years ago, Thomas Jefferson laid it out. If we allow a central bank in the United States, we will wind up renting back the land we conquered. They will do it first with inflation and then deflation.

Look at our current situation where all levels of society are drowning in debt. Personal, corporate, Muni, state, US, and world governments. The numbers suggest that they can never be repaid with currencies maintaining anywhere near their current value.

So, what happens? Do they keep conjuring up cash and make it virtually worthless but keep their “promise to repay” or do they stop and cause a massive collapse? In either case- how do YOU win?

History shows that the “printing” is the most likely outcome and that when the debt cannot be carried anymore it will collapse anyway. At that time, those “in charge” will take over hard assets and then we can rent them back. In recent history Greece had to sell national assets to pay off old debts.

This reminds me of the people asking Rick Rule- When will gold go up.

Another question would be- When will this collapse. My answer is that the collapse took place in 2008 and since- 29 TRILLION has been given to the banks- (no surprise since the major banks own the Fed) and possibly hundreds of trillions of currency units have been conjured up out of nowhere to mask the facts. In many cases new debt is being issued to pay off old debt and even current interest payments. This is happening throughout the economy.

Without the “printing and buying” schemes everyone would be well aware of the collapse. In my opinion reality could rear its ugly head at any time.

Be Prepared!

Any opinions are those of Mike Savage and not necessarily of those of RJFS or Raymond James. Expressions of opinion are as of this date and are subject to change without notice. The information in this report does not purport to be a complete description of securities, markets or developments referred to in this material. The information has been obtained from sources deemed to be reliable, but we do not guarantee that the foregoing material is accurate or complete. Any information is not a complete summary or statement of all available data necessary for making an investment decision and does not constitute a recommendation. There is no guarantee that these statements, opinions, or forecasts provided herein will prove to be correct.

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