The dollar’s purchasing power has plummeted from $20.67 per ounce of gold in 1933 to $3,400 today, signaling the dollar’s decline rather than gold’s appreciation.
Base metals priced in gold have decreased by 77% since 1990, indicating they’re undervalued and expected to increase 3-4 times over time, excluding fiat currency debasement effects.
The UK sovereign gold price surge from £1 to £600 since 1935 demonstrates currency devaluation, not increased sovereign value.
Base metals are considered extremely undervalued long-term, presenting a buying opportunity that could drive the entire metals industry upward.
The expansion of the stablecoin market is driven by the Treasury’s funding needs and regulatory environment, not by banks offering new products.
Market activity in metals is expected to revive in September after the quiet summer months, with potential for significant movements.
The U.S. banning of CBDCs undermines the global CBDC concept, forcing entities like the ECB to reconsider their plans.
Foreigners are typically more sensitive to currency risks and quicker to recognize the difference between money and credit compared to domestic users.
The Genius Act promotes stablecoins backed by U.S. Treasury bills while banning CBDCs, potentially benefiting the dollar and other currencies.
Banning CBDCs in the U.S. challenges the worldwide CBDC implementation plans, particularly affecting the ECB’s intentions.
Japan’s bond market, dubbed the “world’s most dangerous market”, has a significant influence on global risk-free rates due to its unique nature and outlier policies.
The Japanese government bond (JGB) market’s illiquidity and erratic price swings can cause massive blowups of 50 basis points in a day or two, translating into other government bond markets.
Insufficient demand for JGBs drives up Japanese bond yields, reducing demand for US Treasury bonds and consequently increasing US Treasury yields.
The Bank of Japan (BOJ) owns 50% of outstanding government debt, with a higher concentration in long-duration bonds, contributing to the JGB market’s mispricing and potential for massive disruptions.
The BOJ faces a dilemma where they can’t effectively implement their own QE program to cap long-end yields without causing them to blast higher, potentially leading to severe consequences.
The loss of majority for Japan’s ruling Liberal Democratic Party (LDP) in recent elections has created uncertainty, with a potential new governing coalition facing challenges in coordinating and compromising on legislation.
Opposition parties are advocating for consumption tax cuts to address the high cost of living, which could cost around 20 trillion yen or one-fourth of total tax revenue for the last fiscal year.
Japan’s equity market has remained resilient despite massive spikes in JGB yields and potential BOJ policy rate hikes, due to ongoing transformational corporate shareholder governance reforms.
The implementation of new economic policies could potentially re-crush long-end JGB yields by another 25 basis points and push 30-year US Treasury yields below 5%.
If auto tariffs remain unchanged, Japanese corporations may resort to aggressive price-cutting, potentially leading to corporate deflation and halting the BOJ’s interest rate hike cycle.
The Japanese elections serve as a “canary in the coalmine” for policymakers globally, potentially accelerating the timeline for policy changes and coordinated actions in Western capitals.
The Japanese electorate’s rejection of government handouts provides a lesson for political establishments worldwide on the need to reinvent themselves to maintain power.
The silver-to-gold ratio is historically 40:1, indicating silver currently outperforms gold by over double, making it a more attractive investment option.
The gold-silver ratio is historically out of alignment at around 80:1, implying a reversion to 40:1 would cause the silver price to double from current levels, even if gold holds steady.
The platinum market is extremely small with slippage up to 6% due to limited liquidity, presenting a high-risk, high-reward investment opportunity.
The ratio of silver to platinum is currently favorable to platinum, suggesting platinum may have more asymmetry in its price movement compared to silver.
Central banks are buying gold as a safe-haven asset, with the US cutting off $300 billion from Russia leading to a wake-up call for other nations to buy gold instead of bonds.
The political demise of the worldwide system is causing a loss of trust in the monetary system, driving people to buy gold and silver as trusted assets.
The silver price is trading at a massive discount to reality, with market factors pointing to a potential doubling or even reaching $100.
The Lindy effect suggests that gold and silver, having been around for millennia, are likely to continue as timeless assets.
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