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This is a major topic because, uh, you can't trust central bankers, and you can't trust democratically elected governments, who all, without exception, sooner or later print money. Also, central banks, uh , they usually have very little gold; They're hoarding it now , but I'm just saying, to find someone who will tell you, "Oh, I have 30%, or 20%, or 50% of my money in gold," is very unusual.
Very unusual. Managing personal finances in volatile times requires a clear understanding of systemic economic risks and currency depreciation. When fiat currencies consistently lose purchasing power, traditional wealth preservation strategies need to be reevaluated. Marc Faber, a renowned Swiss investor, author, and financial commentator, emphasizes that people should own precious metals because central banks and democratically elected governments inevitably print money to cover unfounded promises.
While paper assets and cryptocurrencies remain speculative or unproven in the long term, gold and silver have served as reliable stores of value since ancient times, and central banks are now hoarding gold. Yet average retail investors remain surprisingly hesitant to allocate even 20% of their portfolio to tangible assets.
Additionally, platinum is showing an unprecedented gap in value, trading near historic lows relative to gold. Given these serious market divergences, platinum prices could outperform gold prices over the next 1-2 years as investors seek out undervalued hard assets. If you found this analysis useful, don't forget .
I mean, my main theme for the last 200 years has been that investors should own precious metals. This is a major topic because, uh, you can't trust central bankers and you can't trust democratically elected governments, who all, without exception, sooner or later print money. Now there are exceptions, like Milley in Argentina, who maintain fiscal and monetary discipline for a while , but eventually democratically elected governments...
They will print money and have large budget deficits because in order to get elected they have to promise people things that they basically can't pay for. So they borrow money and then ask the central bank to print it. And in these conditions, people need to own precious metals because they cannot be printed.
Some young people will tell me, well, it's much better to own Bitcoin and cryptocurrencies. Uh, maybe, maybe. I doubt it, but maybe. Uh, but it's not a proven means of preserving value. As for gold and silver, I can say that since the times of Egypt or Babylon, it has been a proven way to store value.
There are several precious metals : gold, silver, platinum, to some extent palladium, and they move with different intensities. So gold is relatively expensive compared to, say, silver or platinum. By the way, gold is very expensive compared to oil, wheat, soybeans, corn, etc. Platinum was recently at a 122- year low relative to gold.
This is very unusual, as platinum is usually traded at the price of gold. Sometimes it is more expensive than gold, and sometimes it is traded at a discount. But the current discount is extremely large compared to the times when platinum was more expensive than gold. It was extremely cheap. So I wrote a few reports highlighting the opportunities for platinum that I believe still exist.
I mean, within a year or two, we could very well see the price of platinum higher than the price of gold. I wrote that people who missed the gold bull market because they said, “Oh, it’s not growing, it’s old-fashioned,” have a chance. These people have opportunities in the platinum market as it has not moved since 2015, while gold has risen strongly over the past few years.
But it always amazes me how reluctant people are to own gold. I remember the days in the 1970s when people speculated in gold and silver 24 hours a day, but after that, never again. And if you go to a party or a social event where people are talking about their investments, about Nvidia, Tesla, the "magic seven" stocks, etc., and then you ask them, "Do you own gold?" Then, perhaps, the wives will say, “Yes, we have gold, jewelry, or a few coins inherited from our grandparents .” But it's very rare for someone to say, "I have 20% of my assets in gold." This is extremely rare.
Also, central banks usually have very little gold. They're hoarding it now, but I'm just saying that finding someone who says, " I have 30%, 20%, or 50% of my money in gold," is extremely unusual. Very unusual, and the interest is not particularly high, because we can measure how much money is coming into ETFs.
And the most popular ETFs, for example, high- tech, of course, have a large capital inflow. But gold ETFs—no, on the contrary, they are being sold off. The asset value of gold ETFs has not increased, so we are not yet in the “bubble” stage. Geopolitical instability continues to change the dynamics of the global economy, creating flashpoints of tension and risks of conflict in the Middle East, Eastern Europe, and East Asia.
Since major military conflicts are unlikely to affect South America, placing physical assets there is a prudent strategic diversification in case of international upheavals. Meanwhile, rapid double-digit annual economic growth in Western countries is forever a thing of the past due to demographic decline and aging populations.
Emerging economies such as China and India will also eventually face headwinds, although sustained growth of 4-5% per year will continue to gradually raise per capita income. Under conditions of continuous monetary expansion by central banks, asset owners benefit from rising stock markets and high bond yields .
Meanwhile, ordinary households are facing serious difficulties as rising borrowing costs push housing affordability to historic lows . Now let's get back to the interview. In the geopolitical environment in which we find ourselves. The flashpoints for war will be somewhere in the Middle East, somewhere on the borders between Eastern Europe and Russia, and potentially in Asia between the US and its allies, Japan and South Korea, and China.
And so, as an asset owner, you may want to have some of it in Latin America, since the theater of war is unlikely to be there. Unlikely. But it could happen, although it's very unlikely. They believe that the US is eager for war, particularly neoconservatives. And then, I don't know, the Chinese are not belligerent.
They want to have more influence and need to be confident. China depends on raw materials coming from Brazil to China, from Australia to China, and oil from the Middle East to China. They want to be sure they have access to these resources, and this could lead to tensions with the US, which wants to control Asia.
China has no military bases around the world. The USA has it. This is just ridiculous. The US accuses China of belligerence, as well as Russia. But these countries do not have military bases around the world. And the US is in a phase of rapid growth , say, 7 to 12% per year. This is already in the past .
It won't come back because the population is no longer growing. It is actually shrinking. And every country that joins the capitalist system goes through a phase of tremendous growth until it reaches middle-income status, after which the growth rate slows. You want strong growth. You go to, say, the Middle East or India, these countries can grow very strongly for a while, but eventually they will still encounter obstacles.
All countries are slowing down, and you're lucky if you can grow at, say, 4-5% per year, but 4-5% per year is very strong growth in the long term. Do you understand? China can grow by 4-5% per year, and if the population does not increase, then per capita incomes increase. This is a very important point to consider.
In my opinion, the West will not grow much, and the standard of living of a typical household—I'm not talking about rich people, wealthy people, they feel quite good in conditions of monetary inflation, and we are in conditions of monetary inflation. So right now, the Western world is essentially suffering from a decline in the standard of living of ordinary people.
It is not growing, but rich people are getting richer. That's why the stock market is doing quite well, because printing money obviously benefits asset owners. Do you understand? I mean, I don't know what your financial situation is, but let's say mine—I'm an asset owner because I own real estate, stocks, etc., and in periods of monetary inflation, that's beneficial to me, particularly in the last few years, as you know, interest rates have gone up.
So when interest rates rose, I, as an asset owner, have deposits , bonds, etc. Then I get higher and higher interest rates on my money. Whereas poor people have debt, and they suffer a lot because the cost of borrowing to buy a house or anything else, like a car, is rising. And that's why, if you look at the housing market, we see a bull market in the United States against a backdrop of declining demand, because affordability is falling because the typical household has to borrow money to buy a home, and when interest rates went up, they came under pressure.
Housing affordability in the US is at an all-time low. Modern capital markets exhibit a striking paradox. Private investors are eagerly chasing overvalued technology stocks and speculative digital tokens, completely ignoring time-tested real assets. History shows that every fiat currency system eventually succumbs to excessive money printing as governments attempt to finance unfulfilled campaign promises by monetizing debt.
While average investors flock to high-tech exchange-traded funds, capital is actively fleeing gold ETFs, indicating that precious metals have not yet reached the speculative bubble phase. In particular, platinum offers an extraordinary cyclical opportunity after trading at a 122-year valuation discount to gold.
Platinum prices are predicted to outperform gold within a year or two , rewarding those who missed out on the previous rise in the precious metal's value . Furthermore, as GDP growth in the West finally slows due to demographic decline, capital owners who own real assets, physical real estate, and have strategic foreign investments in regions such as Latin America will remain insulated from systemic geopolitical frictions.
Building portfolios of undervalued precious metals remains the best strategy for preserving purchasing power in the long term. If you found this video update.
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