Central banks are diversifying away from the US dollar by buying gold, with the dollar still comprising 60% of their reserves, signaling a shift towards stable assets.
Chinese consumers are purchasing gold due to concerns about currency devaluation amid tariff conflicts, moving away from real estate, bank deposits, and crypto.
China and Japan, previously major buyers of US treasuries, have become net sellers, reducing their exposure as interest rates rise.
The Fed’s data dependency is problematic, relying on lagging indicators instead of real-time data like CEO conference calls and supply chain timelines.
The Fed may be forced to cut rates by 2026 due to corporate debt maturities and a potential funding crisis impacting banks more than Main Street.
CPI and PCE inflation indicators have been trending up since June 2024, remaining above pre-COVID levels and the Fed’s 2% target.
Gold’s stability over the last 5 years, unlike volatile assets such as Bitcoin, stocks, and bonds, makes it attractive for portfolio stability.
North American investors have significantly lower gold allocations, with a Bank of America study showing 78% having less than 1% in gold.
Gold miners are experiencing record high margins and cash flows due to rising gold prices, slower cost increases, and falling oil prices.
Gold miners’ price-to-net asset value ratios are at the lowest decile in their 40-year history, with Barrick and Agnico Eagle trading at record low multiples.
The gold sector has the most rapid cash flow growth in the S&P over the last year, despite low valuations and outflows from gold ETFs like GDX.
The last phase of equity bull markets coincides with rising bond yields, followed by a pause and a second yield rise that kills the equity market, mirroring the 1929 stock market crash pattern.
The US economy is effectively in recession, with private sector GDP contracting 4-5% over the past 2-3 years when accounting for the 7% budget deficit.
30-year US Treasury bond yields have reached a 20-year high of 5%, with similar trends in the UK, EU, and Japan, signaling a debt trap and potential crisis.
Gold is emerging as the primary beneficiary as capital rotates out of equities and bonds, with its price increasing over the past 2-3 years.
China’s long-term gold accumulation strategy since 1983 aims to guarantee the yuan’s value and potentially transition to a gold standard.
Russia’s gold reserves of approximately 12,000 tons, combined with annual production of 20,000-25,000 tons, position it as a potential candidate for a gold standard.
Central banks issuing fiat currencies, including the Fed, Bank of Japan, ECB, and Bank of France, are technically bankrupt due to massive losses on their balance sheets.
The inverse relationship between 10-year US Treasury yields and the S&P 500 has reached record levels, indicating overvalued equities and a potential market downturn.
China’s silver exports of approximately 250 million ounces in 2023 match the silver institute’s supply-demand shortfall, suggesting price suppression and market control.
The People’s Bank of China’s gold purchases involve selling dollars and buying gold, avoiding other devaluing currencies like the euro, sterling, and yen.
Blackrock Silver’s Tonopa West project boasts a 100 million ounce silver equivalent resource with a 570 g/ton silver equivalent grade, 55% higher than the next closest pure competitor.
The project aims for 8.6 million ounces/year production at cash costs under $12/oz and all-in sustaining costs under $12/oz, potentially making it one of the world’s lowest-cost mines.
Private land patented claims enable quick progress on upgrading ounces, expanding resources, and going underground by 2027, bypassing federal permitting.
Tonopa West, known as the “queen of silver camps”, historically produced 400 million silver equivalent ounces from 7.5 million tons in just 30 years of commercial production.
The project employs a “paint-by-numbers” approach with two sets of rings of veins tracked over kilometers, using purple to represent vein extensions identified for future drilling.
Cut through the clutter and mainstream media noise. Get free, concise dispatches on vital news, videos and opinions. Delivered to Your email inbox daily. You’ll never miss a critical story, guaranteed.