As always happens in a crisis period, the fiat currencies that have, until now, appeared to be sound, will sink dramatically and gold will once again rise to its intrinsic worth.
While the US and Europe have seen many riot situations and we can therefore study how they play out, a series of self-perpetuating riots has not taken place before.
Supply chain disruptions and the apparent desire for world governments to embark on endless spending sprees are keeping inflation concerns front and center for most investors.
History says the next upsurge in gold and silver is coming. The research clearly shows it is a when question, not if.
Given the massive erosion in our monetary and fiscal state, we must consider the possibility that price inflation might not just be coming, but could kick in suddenly and rise rapidly.
The Dow and S&P have crashed. Real estate has frozen up. The bond market is a bloodbath. But gold and silver prices are soaring. Welcome to the wealth transfer.
As we move into the second half of 2020, gold is increasingly likely to serve as an effective and necessary hedge, particularly in light of the Fed’s dovish stance, ongoing geopolitical conflicts, and the risks associated with the recession, stock market volatility, and US election.
COVID-19 continues to be the major headwind affecting all markets. Volatility remains extreme as news headlines regarding “flattening the curve” and potential treatments in the works for mitigating the effects of the virus shift markets up, only to be sent lower again when officials and medical professionals take to the airwaves and walk back previous comments.
In 1906, Alfred Henry Lewis stated, “There are only nine meals between mankind and anarchy.”
Since then, his observation has been echoed by people as disparate as Robert Heinlein and Leon Trotsky.
Here we have an image from 2008. It records a Zimbabwean, making a visual comment on the fact that, in a matter of months, his country experienced government–driven hyperinflation that left him broke.