The broad market is in a complacency bubble, with investors falsely believing in Fed protection despite insane valuations and lack of authentic growth.
AI spending is creating a void with no real GDP growth, relying on roundtrip financing and vendor financing while Mag 7 companies burn down balance sheets.
Gold and silver’s dramatic rise, along with mining, uranium, and copper sectors, could trigger a capital rotation from overvalued tech stocks to hard assets.
The gold and silver bug theory of fiat system collapse is unlikely, as governments will try to prevent it at all costs.
The US-China trade war is intensifying, with China tightening rare earth exports vital for US defense manufacturing.
China’s massive global trade relationships position it as the best fighter in the ongoing economic battle with the US.
The Russia-Ukraine conflict is a complex issue intertwined with the US-China trade war and decline of Western democracy.
Recent examples of democratic decline include candidate removals in Moldova and Romania, and the digital ID system in the UK.
The political profession attracts individuals with narcissistic personality disorder, potentially afflicted with psychopathy or sociopathy.
Political elites may continue to act with impunity to exert dominance, even at the risk of destroying humanity.
The silver shortage and gold leasing crisis at the Bank of England are key indicators of the impending collapse of the fiat currency system, signaling a breakdown in the relationship between paper and physical precious metals.
As the fiat system collapses, the gold-silver ratio will become highly volatile, with silver prices potentially rising to $100 or more, creating a psychological barrier for gold investors.
The collapse will follow a pattern similar to the German post-WWI inflation, with three phases: inflation, asset value support, and credit bubble collapse, leading to the largest credit bubble burst in history.
The silver squeeze is a short squeeze with no physical supply to meet demand, exacerbated by the withdrawal of China and other major suppliers and investor hoarding.
ETFs in the silver market are unstable and may fail if the silver squeeze persists, as they cannot cover the underlying asset, making it impossible to stand for delivery on Comex.
A disconnect between gold prices in dollars and commodities priced in gold since 2020 indicates the fiat system’s collapse, leading to a potential massive rally in commodities.
The Chinese yuan may become exchangeable for gold through facilities like the SGE’s vaults, creating a “Bretton Woods Mark 2” system with the yuan pegged to gold at a governmental level.
The collapse of the fiat currency system will trigger commodity price inflation, with base metals and raw materials priced in gold experiencing massive undervaluation and rapid price increases over the next 2-3 years.
The Fed’s reliance on short-term funding through T-bills to cover increasing deficits will be highly inflationary, undermining currency value and exacerbating economic problems.
The collapse of the credit bubble will be signaled by rising bond yields, with the 10-year Treasury potentially exceeding 10%, triggering a systemic event and widespread financial panic.
The implementation of digital ID systems, like in the UK, serves as a blueprint for an online financial repressive model, enabling governments to control and track financial transactions, similar to China’s system.
De-dollarization, central bank buying, and eroding faith in Western financial systems are driving a “bear market in trust” rather than a traditional gold bull market.
Central banks and non-Western investors losing trust in Western property rights are primarily driving gold price gains, while Western investors remain largely comfortable with their financial positions.
Central bank gold buying, particularly from Asia, has been outpacing mining supply in 2025, adding over 1,200 tons and potentially leading to a physical squeeze that could force prices to go parabolic.
The spot market for physical gold represents the “moment of truth” when confidence in the system falters, potentially causing a surge in gold prices as people rush to take immediate delivery and eliminate counterparty risk.
The Dutch government’s takeover of Chinese-owned chip maker Nexperia is a significant blow to confidence in Western property rights, following China’s proposed export controls on critical materials.
Freezing of Russian reserves and repossession of oligarchs’ assets in 2022 has led to a blistering pace of gold purchases by central banks, more than doubling gold prices since then.
The US economy is heavily leveraged to the stock market, with 10% of Americans accounting for 50% of spending, 60% of federal income taxes, and owning 90% of stocks, creating an unhealthy sensitivity to market fluctuations.
The bid for gold is strategic, driven by current economic and political climate, including asset freezes and government takeovers, reflecting a growing demand for security in an increasingly uncertain global financial landscape.
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