Monday, October 19, 2020

Axel Merk: Boatloads of Money Coming No Matter Who Wins

Money manager Axel Merk manages about $1 billion in assets. Merk says, “We love one guy and hate the other guy. I care more about fiscal spending. 

As I said earlier, yeah, we are going to spend a boatload of money. They are going to spend it a little differently and on different priorities, but they are going to spend a boatload of money. 

They are politicians, and they can’t help it. One big difference with Trump is we are going to get a reduction in regulation and regulatory burden, and with Biden we will get an increase.” 

Merk likes gold because of all the money printing and the eventual inflation that is surely coming from printing all those digital dollars. 

He also likes a diversified portfolio, but one of his very favorite investments is gold. 

Merk tells me he holds more than some people would and is holding it as a core investment. His simple advice for the little guy is, “Spend less money than you make so you can save more.”

- Source, USA Watchdog

Friday, October 16, 2020

The Piper is Calling: A Sea of Debt, a World of Problems

The world remains steadfast, tightly gripped in the midst of the COVID-19 pandemic, however, there is another calamity that is lying in wait and is sadly unavoidable at this point.

The debt bomb is primed, set and ready to go off, not just in the United States, Canada, or the United Kingdom, but rather across the entirety of the world.

There is no escaping it, but there is still time to prepare.

Economic Disaster After Economic Disaster Has Taken Its Toll

The dot com boom and bust, the housing collapse of 2008 and now the economic ruin caused by the COVID-19 lockdowns have all systematically chipped away and destroyed the foundation of many economies across the world.

Led by Keynesian economists, Central Banks around the globe have avoided taking their medicine and letting the system collapse and correct itself naturally.

This has been done through their favorite tool of economic control, printing copious amounts of fiat money and throwing it at the problem.

The results of their actions are in the pudding as the world continues to chug along. 

They have done what many believed to be impossible time and time again, putting band aids on the wounds and keeping the system afloat, for just a little bit longer each and every time.

(Chart source,

But at what cost?

There is a reason why the price of gold has continued to trend higher and higher since these unchecked bailouts began in earnest, accounting for the new level of fiat money injected into the global economy.

The problem with simply throwing artificial, printed out of thin air money at each and every economic calamity is the fact that you are just burying the problem and masking the gaping wound. 

The rot still exists and the structural, long term damage to the system still remains. You cannot dig yourself of a "debt hole", by simply creating an ever increasing amount of debt.

Nothing has changed, nothing has been fixed and the debt continues to grow and grow, reaching what is unarguably now, unsustainable levels.

Are the COVID-19 Bailouts the Icing on the Cake?

The latest bailouts that occurred in every established country around the world, in response to the COVID-19 pandemic, is truly the icing on the cake.

In a record breaking period of time, countries have printed ungodly amounts of fiat money, tossing it at their citizens, businesses and whoever else would accept it, as people were forced out of work and made to stay home.

This brought the global economy to a halt and although some new versions of "normality" are now returning in many areas of the world (others remain less well off), businesses on main street are still heavily impacted and feeling the pain due.

However, the worst part of all of this, at least economically speaking, is the long term damage that has now been done and ramifications that are now coming due to these bailouts.

(Chart source,

In true Keynesian fashion, countries increased debt levels the likes of which have rarely been seen before outside of war times.

Japan, Canada, Australia and the United States led the charge, injecting a stunning 21.1%, 16.4%, 14% and 13.2% respectively of stimulus, when compared to their yearly GDP, directly into their economies.

The worst part of all of this, is the fact that more stimulus is going to be needed before the COVID-19 pandemic is fully resolved, with many countries already working on fresh waves of bailout money, meaning that further significant increases in debt to GDP ratios are yet to come.

In Conclusion

The world is now truly awash in debt, with many countries finding their debt to GDP ratios at unsustainable, non recoverable levels.

(Chart source,

Debt to GDP ratios at this level are akin to "circling the drain", with the problem now compounding upon itself as making the interest payments on this debt is the best most countries can hope for.

This will only further exacerbate the problem, causing these highly indebted countries to go further and further into debt, to help finance the pre-existing debt and new obligations / bailouts that arise.

We are truly living in a sea of debt and a world of problems.

The debt bomb is primed and ready to go off, only needed a spark to ignite it.

Don't be caught off guard when that day inevitably occurs and this "house of cards" comes crashing down upon our heads.

Get prepared and keep stacking.

- Source, Nathan McDonald via the Sprott Money Blog

Friday, October 9, 2020

Precious Metals to Rally Hard After Elections, Even More So if Joe Biden Wins

The Presidential Elections will take place in less than one month, with November 3rd only a mere 25 days away.

The anxiety, the uncertainty is rife and all around us, especially if you call yourself a citizen of the United States, however, the ramifications of the coming election will be felt all around the world.

At the moment both the Democrats and Republicans are jockeying for position and the typical political nonsensical games are being played in real time, as seen from the non stop appearances of political surrogates from both parties appearing on the MSM, spewing their talking points and pushing their agendas.

However, there are a few things that are all but guaranteed at this point, regardless of which side is deemed the victor.

Political Violence Will be in Abundance

I take absolutely zero joy in this predication. 

Yet, I see no alternative scenario unfolding in the coming months.

Political violence is going to hit a level within the United States that we have not seen in decades, and that is saying a lot, considering the near non stop riots and strife that have been unfolding in many major cities across the United States in the last half of the year, with Portland being one of the most serious examples.

Unfortunately, I believe that this is going to be nothing in comparison to the coming dark days that the world is going to be forced to bear witness to, if one side or the other does not win in a complete and utter landslide.

The plethora of mail in voting that is taking place within the United States due to the ongoing COVID-19 pandemic has led to increased uncertainty and mistrust within the voting system, with many on the right speculating that "funny" business is almost going to be taking place.

Meanwhile, conspiracy theorists on the left have attacked the U.S. Postal system as well, with many declaring that President Trump is attempting to sabotage the organization and thus throw the election into chaos.

More than likely, neither side is right, however, this does not change the fact that mail in voting is notoriously flawed and has had very serious problems in the past, due to improperly filled or filed voting ballots, resulting in a large number of them being simply discarded.

What this is all leading to is one of the greatest enemies of the markets and democracy at large, extreme uncertainty, the likes of which is likely only going to fuel the radical sides of both parties further in the coming months.

Many are going to feel "justified" in their violent actions due to this heightened level of uncertainty, whether it be through direct violence to others who they deem the enemy, or simply through outright destruction of property while engaging, as the MSM likes to put it, "mostly peaceful protest".

This is going to send the financial markets spinning, as the country attempts to resume stability and hopefully cooler heads can prevail.

Extreme Money Printing is Coming

The next scenario that is all but guaranteed at this point is the fact that much, much more stimulus is coming after the elections, regardless of who wins.

President Trump is pushing hard for a second wave of COVID-19 stimulus, amounting to approximately $1 Trillion USD.

This effort has been bogged down by the Democrats for a number of reasons since rumors first began circulating that a second wave of stimulus was in the cards, over six months ago.

Although many reasons and objections are cited as to why funding is not being passed, it doesn't take a rocket scientist to figure out that passing a second stimulus bill and placing a fat check in peoples bank accounts weeks before an election, is not in the Democrats best interest and would only help President Trump's chances of re-election.

"Buying" votes is a well known tactic for politicians, however, the Democrats have mastered the art of easy money printing above all others.

Still, this does not mean that no stimulus is coming if Joe Biden wins on November 3rd, in fact quite the opposite.

Remember, Joe Biden is in much greater favor than President Trump of shutting down the economy and placing further restrictions on the economy, in an effort to slow down the spread of COVID-19.

If this occurs, or even if it doesn't, then the Democrats are going to push for additional stimulus packages of their own, putting the printing presses in high gear, cranking out those digital fiat dollars.

(Chart source,

(Chart source, Market Watch)

Likely this is one of the reasons why we are seeing a renewed weakness in the strength of the U.S. Dollar Index, as market participants can clearly see that much more money printing is going to take place, before this crisis is fully put behind us.

Additionally, both gold and silver bullion have surged significantly higher as the odds of Joe Biden winning the President elections (according to many analysts and polls), has increased in the past number of days.

Still, these polls and predictions should be taken with a grain of salt, as we all know what happened in 2016, when Hillary Clinton went into election night with a 98% chance of winning.

Regardless, the markets clearly believe that Joe Biden will be the "even easier money" President.

In Conclusion

The coming days are going to be intense, scary and incredibly interesting to watch unfold.

The 2020 U.S. Presidential campaign cycle is soon to come to a close, however, the ramifications of November 3rd are going to be felt well into 2021 and beyond.

Regardless of who wins, strife is going to occur, uncertainty is going to be in abundance and fiat money printing is going to continue in excess.

The moral of the story? Prepare accordingly and above all else...

Keep stacking.

- Source, Nathan McDonald via the Sprott Money Blog

Wednesday, October 7, 2020

Gold Silver: Why Is North Korea A Dark Void At Night?

Why is North Korea a dark void at night, who turned out the lights? The answer may surprise you...

Monday, October 5, 2020

David Forest: Gold Is Still the Best Disaster Insurance You Can Buy

Regular readers know that Bill is a longtime goldbug. He and Dan Denning, his colleague over at The Bonner-Denning Letter, recommend allocating a sizable portion of your portfolio to the yellow metal.

And this year has seen plenty of action in the gold market. Following a 12% drop in the gold price in just nine days in March, gold went on to break its previous all-time high in August. It’s now 32% above its pre-crash level.

Some readers may be wondering if they’ve missed the opportunity to get into gold. But this weekend’s guest editor, David Forest from Casey Research, is here to tell us why he believes this gold bull market is just getting started…

And he tells us how we can find out how legendary gold investor, Casey Research founder Doug Casey, made his millions in the metal

In August, gold took out its all-time high of around $1,914 an ounce and quickly shot past $2,000.

But I believe we’re just in the early innings of a historic gold bull market.

There are a number of reasons why I think the precious metal will soar to new highs.

Firstly, in an attempt to paper over the market’s insanity, the feds continue to unleash a wave of money-printing unlike any we’ve seen before.

Since the market crash in March, the Federal Reserve has pumped out $3 trillion in new money supply. And there’s more coming.

Intuitively, made-up money shouldn’t solve real economic problems. But it worked in 2008. And it might get us through the current crisis as well.

Since its March low, the Dow is up 50%. Stock markets could glide on and continue rising. In fact, stock prices might rise faster than ever because of all the new money sloshing around.

Crash Protection

But historically, October is a “witching season” for market crashes. It’s almost a self-fulfilling prophecy. Everyone worries and selling can quickly accelerate into a runaway collapse.

Typically, when this happens, people rush out of stocks… and into gold.

But it likely won’t be a straight shot higher for gold. There will be surges and dips along the way, as we’ve seen these last few weeks.

I understand this can be unsettling for those with positions in gold. And I get a lot of questions from readers wondering what to expect in the months ahead, like this one from Daniel:

Will gold stocks sink as deep as they did in March if we have another crash? Why or why not?

If we do get another major crash, physical gold likely will offer protection. Historically, gold prices fall less than other assets during financial panics.

But here’s the critical point: Gold will likely fall initially if we get a crash.

During crises, people sell everything. That includes physical gold. We saw that back in March, when the gold price dropped 12% in nine days – even as the gold supply dropped as mines halted production due to the coronavirus restrictions.

Past Crashes Show What Lies Ahead

As for what could happen in the months ahead, I’d like to point to a couple of historical examples as my second reason why I believe the gold bull market is just beginning.

In 2008, the Dow lost 53%. Gold bullion dropped from $1,000 per ounce to $700.

But although it took the Dow four years to recoup its losses, gold quickly rebounded. By September 2009, it was back to $1,000. It then soared to a record $1,927.70 in 2011.

That triggered a massive bull market in gold stocks. The VanEck Vectors Gold Miners ETF (GDX) shot up 257% in just under three years.

Many people don’t realize, but the troubled 1930s were the same. Gold mining was one of the few industries that prospered.

The initial shock in 1929 wiped out many stock investors and companies. And a second collapse clobbered more investors in 1930. You can see that in this chart of the Dow Jones from 1929 to 1933 below…

But here’s the surprising thing. That collapse triggered big gains for gold stocks.

Here’s another chart, showing major gold miner Homestake through the 1930s. Notice how it took flight starting in 1931, when the big crash was in full swing… ending the decade on a 441% gain, compared with a 54% loss for the Dow.

Gold stocks like Homestake got a big lift in 1934, when President Roosevelt raised the gold price nearly 70% to $35 per ounce. That set off a gold-mining bull market that lasted through much of the Great Depression.

Although we’re now off the gold standard… and presidents can’t revalue gold… over the past 15 months, gold prices have already risen 37%. So I think we could see something similar unfold.

In fact, gold has already regained its losses from earlier this year and is now 32% above its pre-crash level. And GDX is 105% higher than it was before the crash.

Not Too Late

That’s why I’ve been telling my readers that this could be a gold bull market for the ages.

And it’s not too late to get in.

The first step is owning physical gold. After that, consider taking a position in VanEck Vectors Gold Miners ETF (GDX). As the price of gold rises, gold miners could skyrocket even higher.

But if you’re looking for the best way to invest in gold, Legacy Research cofounder and legendary gold investor Doug Casey recently revealed how he built his gold fortune.

He’ll tell you all about the method that’s made him a millionaire… and reveal five gold plays set for 10x… 20x… even 50x gains.

Saturday, October 3, 2020

Peak Uncertainty: President Trump Contracts COVID-19

When I stated last week that we hadn't seen the end of the 2020 chaos, the end of the uncertainly, I certainty didn't see this curveball coming.

Dominating the news headlines today is the fact that President Trumps and the First Lady have tested positive for COVID-19, shortly after news broke that Hope Hicks, one of the Presidents close aides contracted the virus.

In true Trump fashion, the President took to twitter to break the story;


This news has once again upended the already upended and now empty apple cart, as the President's campaign plans have been halted dead in their tracks, as he is forced to self isolate for the duration of the virus.

Markets Sent Reeling

Unsurprisingly, U.S. markets across the board reacted negatively to the news, moving sharply lower as this information spread across the world.

The DOW dropped by a significant 400 points, while the NASDAQ reacted even more negatively, shedding 200 points, or 1.7% of its value.

Even more severely impacted were the oil markets, which suffered heavy losses upon learning this news.

Brent dropped by a stunning 5.1%, moving to levels not seen since June, while in New York, West Texas Intermediate crude futures plummeted by as much as 5.4%.

Other oil indexes dropped in a similar fashion, moving sharply lower.

(Chart source,

This of course is going to be seen as either an overreaction by the markets, or an under reaction depending on how severely President Trump, who is 74 years of age and thus at a heightened level of risk to the coronavirus, reacts in the coming days.

If President Trump's health takes a turn for the worse and is hospitalized, similar to how the leader of the United Kingdom, Boris Johnson was, then you can expect what we are seeing now occur in the markets amplified by an untold magnitude greater.

President Trump is Deemed As the Pro Business Candidate

The fact that this news has moved the markets so significantly tells you all that you need to know about the general, broad sentiment of market participants. 

President Trump is viewed as the "pro business" candidate and thus, better for the markets as a whole.

Besides the efforts that the President has made over the last number of years that he has been in office, with his "America" first agenda influencing the majority of his decisions in regards to international trade, there remains the stark reality that President Trump wishes to keep the economy open, while Joe Biden has suggested that further lockdowns are required.

Wall Street by no means wants the latter and unsurprisingly wishes to see the markets remain open, no matter the ramifications.

This is even further highlighted by today's unemployment numbers, which plunged below 8%, as approximately 661K jobs were added, showing that the economy, under President Trump is on track for recovery.

Whether or not you personally agree, or disagree with eithers Joe Biden's, or Presidents Trump's course of action matters little, as the markets have spoken through this move and are clearly worried about how this news is going to affect the rapidly approaching elections.

Meanwhile, gold and silver bullion are being bought as safe haven assets and unlike the broader markets, are holding strongly in the face of this news, with gold remaining relatively unchanged and silver moving slightly higher.

Conspiracy Theories and Shameful Comments Run Amuck

Further highlighting just how far the political divide has become between the left and right within the United States is how this news is being digested on social media, with the most toxic of this, as per usual, being represented on twitter.


Supporters of the President have already begun to raise conspiracy theories on whether or not someone close to President Trump was intentionally infected with COVID-19, so then to pass it on to the President.

While others on the right are wondering if "getting" President Trump infected with COVID-19 is simply going to be used as a means of assassinating the President in another manner, only then to blame the infection as the cause of death.

Meanwhile, those who would qualify as being on the radical left have rejoiced in the news, with many taking to social media, wishing the President ill-will, hoping that the infection takes a turn for the worse, killing the President in the process.

Already the President's previous shown twitter announcement that he and the FLOTUS have contracted COVID-19 is the President's most shared / liked twitter post of all time and is filled with both support and truly heinous, toxic comments.

In Conclusion

We truly do live in interesting times, however maddening and chaotic they may be.

In the coming days we are going to see a new level of uncertainty, with next week's trading action being filled with extreme volatility, as the markets attempt to digest every morsel of news they can acquire about the Presidents health.

How this will affect the Presidential elections and the remaining two debates is yet to be seen and is anyone's best guess at this point, however one thing is guaranteed, uncertainty is going to continue to remain supreme.

Stay safe and keep stacking.

- Source, Nathan McDonald via Sprott Money News

Friday, October 2, 2020

Charles Nenner: Stock Market Not Going to End Very Well

Renowned geopolitical and financial cycle expert Charles Nenner called this market just 2% from the top in January. 

What does he think now? He likes gold and says he “made more money in gold than in stocks” in the past few months. Nenner says, “We are playing the long term gold market. 

We went out at $2,100 (per ounce), and the price target was $1,850 (on the downside). We hit $1,850 a couple of days ago, so we bought back in. We get in and out for a couple of hundred points, and it’s worthwhile. 

So, the gold cycle is up for much longer. $2,500 is the first target, and it could be we get higher targets. 

I do not believe in the stock market, most of the markets we do nicely in are the gold market, silver market, crude oil market, bond market and the dollar. 

It’s all very simple and normal, and the stock market is not going to end very well.”

- Source, USA Watchdog

Tuesday, September 29, 2020

Chris Martenson: Get Ready for Inflation Good and Hard in 2021

Dr. Chris Martenson is a futurist, economic researcher and says severe economic damage has been done to the economy. Wall Street wins while Main Street loses. 

Martenson contends, “The economy is very bad at this point in time, and it’s being covered up by a very, very complicit Federal Reserve that is just propping markets up.

Dr. Martenson also says that because of all the money printing that has already happened with much more to come, there will be some big inflation bubbling up. 

Martenson predicts, “Follow with me out to June of 2021, and we are going to find ourselves in a situation where the shale oil miracle has collapsed to five or six million barrels a day. 

We are going to be demanding, and our economy is going to be on fire at that point because of all this free money that is just sort of floating around. Then we are going to see inflation good and hard.

We are going to have actual oil based inflation come through at that point in time. 

That is the prediction I am working with right now. People need to be ready for that, and that is what our seminars are all about.” Martenson likes physical assets such as gold, silver and farm land. 

Martenson shows people how to be more resilient for what is coming.

- Source, USA Watchdog

Saturday, September 26, 2020

Continuing the Trend: 2020 to End in Chaos

It should come as no surprise to anyone that 2020 has been a year of sheer chaos, madness and worldwide change the likes of which we have not see in most peoples living memory, that is unless you have been living under a rock.

For those of you who are hoping that this trend was going to change as the year progressed and headed towards closure, you are sadly going to be mistaken, as the ending to this year of epic nonsense is only going to get worse, much worse.

Possibly the Most Contested U.S. Elections of All Time

As the November 3rd Presidential Elections rapidly approach, people have finally begun to realize what I have stated since the end of last year, that this year's election are going to be dominated by violence and uncertainty, ending with literal blood in the streets.

Both the far right and the radical left are going to ensure that this will be how 2020 ends, regardless of who takes home the "perceived" victory after the dust finally settles after November 3rd.

Both the Democrats and the Republicans have begun uttering their talking points, with President Trump recently dominating the headlines with statements concerning the high probability of mail in ballot voter fraud.

Mail in voting has many concerned on the political right, as it has the possibility of being heavily abused.

Knowing this fact and how his base feels, President Trump alarmed many this week as he refused to acknowledge that their would be a "peaceful transfer of power", if he loses the 2020 Presidential Elections to Joe Biden.

As recently reported;

When asked directly whether he would commit to a "peaceful transition of power," Trump responded, "We're going to have to see what happens." He went on to suggest that authorities "get rid of the ballots," an apparent reference to the huge uptick in votes cast by mail amid the coronavirus pandemic, adding that, if they did, "there won't be a transfer [of power], frankly. There will be a continuation."

Meanwhile, the Democrats have also stated that they are going to dispute the election results if Joe Biden loses as well, already putting into motion various game plans that will tie up the final results for weeks, if not months, possibly leading to a hung election.

All of this uncertainty has just recently begun to set in on the markets, sending them sharply lower as people see the grim future that awaits them come this fall season.

(Source, google charts)

Regardless of whom is declared victorious, or who is the one doing the disputing and contesting the results, the fact remains that the United States is going to be in an extreme state of anarchy and limbo for many months to come.

This is going to result in an ungodly number of riots, protests, violence and destruction in the worlds largest economy and military power.

The Coming Volatility

Despite the fact that the writing is now on the wall as to what is going to occur in the coming months, both gold and silver bullion have been trending lower over the last number of days, defying all common sense and showing many peoples complete lack of foresight.

(Chart sources,

The metals as seen above, have suffered alongside the general markets, moving sharply lower and taking a vicious beating.

Gold is now well below its highs seen in the month of August, sitting at $1863.03 USD per oz at the time of writing, while silver risks breaking through the $23.00 USD per oz mark.

This recent pull back is great news for anyone that is looking to add to their positions and hedge against these coming risks, of which I believe is a near certainty at this point.

As the madness begins to truly unfold with the 2020 elections getting closer and as the results begin to trickle in on November 3rd, I believe it is then that the true feeling of dread is going to set in with the masses.

It is then that you are going to see one side or the other in the streets, protesting and causing destruction on a near daily basis, with the Mainstream Media exasperating the problems and pitting both sides against one another, which is what they do best.

In Conclusion

The writing is on the wall and sadly I believe that there is no turning back at this point.

The divide between the far right and left within the United States has grown so vast that I believe we are going to have to hit a true boiling point before things can ever return to normal again, if they even can.

The damages are going to be great and the risk to the system will be vast, however, gold and silver bullion have proven themselves to be the one true protection in times of great unrest and upheaval.

This has been true for over 10,000 years and although 2020 is truly one for the history books, I have no doubt that precious metals will offer financial protection once again for those who are wise enough to take action before it is too late.

Until next time, stay safe and keep stacking.

- Source, Nathan McDonald via Sprott Money Blog

Wednesday, September 23, 2020

Monday, September 21, 2020

Martin Armstrong: Rich People Are Selling Stocks Again, Buying Precious Metals

Legendary financial and geopolitical cycle analyst Martin Armstrong thinks many European bonds will never be fully paid back. They will be a default, but it won’t be an outright default.

Armstrong explains, “So, in Europe, all the bonds they have bought, they have to constantly keep rolling them over in addition to what they buy. It’s not sellable.

The proposal in Europe, behind closed doors, is to convert them to ‘perpetual bonds.’ It’s a way to default.

So, effectively, they will just give you the interest, and you can never redeem them.” As far as the stock market goes, Armstrong says, “Rich people are selling stocks again.” Remember, this is just like what happened just before the CV19 lockdowns.

What can the common man do to cushion from what is coming? Armstrong says, “Buy canned food because food prices are going up.”

Armstrong also like soft commodities, energy and gold and silver, especially silver. Armstrong says, “People are not going to know what a silver bar is. I would buy silver coins that are dates 1964 or earlier.

The average person can look at that and know what it is. I would recommend that more than silver bars.

I would say silver would actually be better (than gold) because it’s a smaller denomination that can actually be used.”

- Source, USA Watchdog

Saturday, September 19, 2020

Despite Mint Closures, Silver Bullion Sales Surge Past 2019 Numbers

Large sectors of the global economy have been shut down throughout 2020, with some being affected more than others, creating pockets of scarcity and price increases as a ramification to these forced shutdowns.

These shortages were incredibly noticeable throughout this summer season, with many leisure and sporting goods simply being unavailable for purchase, whereas there would typically be no problem at all.

For some areas of the economy, these higher prices have helped offset some of the losses in production, while other areas of the economy have simply had to grin and bear the pain, experiencing losses that they are never going to be able to recover from.

One area of the economy that was affected and of which was noticeably affected was within the precious metals space, as many of the worlds largest mints were forced to shut down production, taking supply off the market just as demand was skyrocketing.

Silver Bullion Sales Vastly Outperform 2019 in First Half of the Year

As the COVID-19 driven panic began to set in, some people fled to safe haven assets such as precious metals, fearing that the forced shutdowns could cripple the global economy.

Meanwhile governments around the world went into money printing hyper-drive, bailing out individuals and businesses alike, with some of the largest increases to national debts that this world has ever seen.

The ramification of these actions are yet to be fully witnessed and are going to be felt for years to come.

Regardless, this led to an initial sharp increase and move higher in both gold and silver bullion, which for a time looked as if they were going to finally break free of their shackles and surge to ungodly new highs.

Although this parabolic rise was slowed down, I believe that the gains we have witnessed over the past couple of months are only the beginning and just the start of a truly historic new bull market for the precious metals market.

(Chart source SRS Rocco Report)

As the above chart shows, I am most certainly not alone in this assessment.

Silver bullion sales, despite mints being forced to a grind early during the COVID-19 breakout, have vastly outperformed their 2019 sales, with the three major mints all reporting starkly higher numbers.

In the first half of 2020, the U.S. Mint, Canadian Mint and Perth Mint sold a collective 34.9 Moz, compared to 24.1 Moz during the same time period in 2019.

This amounts to an impressive 10.8 Moz sold in 2020, during a time period in which the mints were suffering from temporary closures.

Despite these closures, the mints were able to increase sales by a stunning 45% year over year!

Imagine what these numbers would of looked like, if business was allowed to run unhindered and imagine how much more silver would now be out in the open market.

The Trend Continues and Will Only Get Better

Many people will write this increase in sales off as only an anomaly, however, further data suggests that this couldn't be further from the truth.

Although the Canadian Mint is slower than the U.S. Mint and the Perth Mint in reporting updated sales data, as the SRS Rocco Report highlights, the trend of strong silver bullion sales is only growing in momentum.

(Chart source, SRS Rocco Report)

Updated figures indicate a steady move higher in YoY silver bullion sales from the three top mints.

Collectively the three mints have now sold a total of 40.4 Moz year to date, while during this time period in 2019, they had a total sales of 27.3 Moz.

This results in an increase of total sales YoY of 13.1 Moz.

As previously mentioned, the first half of the year saw a total increase of 45% in YoY sales, while the updated numbers now show a 48% increase YoY, meaning that momentum is still growing within the precious metals space.

This is heartening as an advocate of physical precious metals and the safety that they can offer in a time of increased uncertainty, turmoil and unrest.

In Conclusion

As we move through the remainder of 2020 and into 2021, I believe that there are going to be challenging times ahead for the world both financially and politically that are going to threaten the system in a way many of us have never experienced before.

People continue to go deeper into debt as this crisis worsens, as too do governments around the world.

Fiat money is thus going to be continued to be printed in an ever increasing quantity, as officials attempt to "dig" themselves out of this crisis, just as the Fed has recently indicated they are hoping will happen.

This is going to result in a continued demand for precious metals as more and more people wake up and smell the roses, realizing what is happening to the fiat based system that they find themselves living within.

The trend is your friend until the end and the trend for precious metals is positive indeed.

Stay safe and keep stacking.

- Source, Nathan McDonald via the Sprott Money Blog

Friday, September 18, 2020

Gold is a Barometer of Fiat Currency, We Are Experiencing the Return to the Gold Standard

David Garofalo has 30 years in mining. 

As CEO of Goldcorp, David made history last year by spearheading the $32 billion merger of Goldcorp with Newmont to create the world's largest gold production company. 

Since that time, the value for Goldcorp shareholders has tripled including dividends. 

David discusses how gold is the barometer of fiat currency and what we are witnessing is the return to the gold standard.