The A-Hole in J-Hole Can't Cap this Gold and Silver Volcano
Op-ed by Pixy St Claire
Numerous countries surrounding the Globe have been dropping treasuries and buying gold at a fierce pace. This is because gold, as a Tier 1 asset, holds a higher value and is considered more secure than holding a paper currency. The US dollar is tethered to 35 trillion dollars of debt, making it less attractive in the current economic climate.
Contrary to the belief of some (US policymakers included), many countries with astute economists are closely observing the trend of moving away from the US dollar. They are choosing to steer clear of the urgent and pervasive toxic influence of the US dollar.
The Federal Reserve is grappling with this unique part of its embattled history. Even though they are at the top of the Military Industrial chain of command and have profited from their unelected policies of debt monetization, their toolbox remains empty.
Their 400 + Ph. Ds and sycophant press core can't even cake on more lipstick for the Pig; nothing in their traditional bag of tricks can stop this new wave of inflation created as people have dropped the US dollar like a hot potato.
Sadly, these dollars will return home to roost and create record inflation as they come washing back to US shores.
The global financial landscape is undergoing significant shifts, with precious metals like gold and silver playing the pivotal role. Several factors are contributing to what we’re viewing as an inevitable "explosion" in gold and silver prices:
Geopolitical Tensions and De-Dollarization
NATO has been pushing east over the past 20 years, though it wasn't supposed to, based on an agreement between Reagan's Secretary of State James Baker and Mikhail Gorbachev.
US VIOLATION
The US (on the World’s stage with the rest of the World as a witness) agreed not to move "not an inch" toward Russia
NATO's eastward expansion over the past 3 to 5 decades, despite previous agreements, has strained relations with Russia. This geopolitical tension has accelerated efforts by some nations to reduce their reliance on the US dollar.
Evolution of the US Dollar
Since President Nixon decoupled the dollar from gold in 1971, the US currency has functioned as a fiat currency. This shift has led to concerns about the long-term stability and value of the dollar, especially given the growing US national debt.
BRICS and Alternative Trading Systems
Economist Sergey Glazyev has proposed a system for BRICS countries (Brazil, Russia, India, China, and South Africa) to trade outside of the US dollar. This system, which links the value of gold to oil, presents a significant challenge to the dollar's dominance in international trade.
Global Shift Towards Gold
Many countries have been reducing their holdings of US Treasury bonds and increasing their gold reserves. This trend reflects growing concerns about the US dollar's stability and a desire for more tangible assets. Gold's status as a Tier 1 asset has further fueled this shift.
Inflation and Dollar Devaluation
As countries move away from the US dollar, there's a potential for significant inflation as dollars flow back to the United States. This situation could create challenges for traditional Federal Reserve monetary policies.
Record Gold Prices and Silver Demand
Gold has reached record highs, surpassing $2,500 per ounce. Meanwhile, silver is experiencing soaring demand from various sectors:
Aerospace and Military: These industries require silver for advanced technologies.
AI Data Centers: The rapid growth of artificial intelligence is driving demand for silver in computing infrastructure.
Solar Energy: Silver is a crucial component in photovoltaic cells.
Solid-State Batteries: Samsung's silver solid-state batteries could potentially consume an entire year's worth of silver mining output.
Transportation Revolution
The potential widespread adoption of silver-based solid-state batteries in various vehicles (cars, trucks, vans, buses, ships, etc.) could dramatically increase silver demand. These batteries offer faster charging, longer range, and lighter weight - advantages that could drive rapid adoption across the transportation sector.
Energy and Technology Demands
The growth of AI data centers, which require significant energy resources, is further driving demand for silver through increased need for solar power solutions.
Market Implications
These factors combined are creating what some analysts see as a perfect storm for precious metals:
Supply Constraints: Increasing industrial and technological demand could strain silver supplies.
Currency Diversification: As nations seek alternatives to the US dollar, gold and silver become more attractive.
Safe Haven Appeal: Economic uncertainties typically boost the appeal of precious metals.
Technological Advancements: New applications in batteries and electronics are opening up fresh demand channels for silver.
Conclusion
While it's important to approach market predictions with caution, the confluence of geopolitical shifts, technological advancements, and changing economic paradigms suggests a potentially bullish outlook for gold and silver. These precious metals appear poised to play an increasingly significant role in the global financial and technological landscape, potentially leading to substantial price movements in the near future.