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As of today in uh euro terms the market is down from the high around 15%. And in gold of course much more. But as you say if you print money domestically the market may not go down. It may stay at this level or even go up. But if you print too much money what will happen is the dollar weakens against foreign currencies.
But it's not sure because they can also print money. But for sure it will weaken against precious metals. Gold and silver have served as trusted stores of value for millennia, offering unparalleled security during periods of economic and political instability. Unlike paper-based financial assets that are vulnerable to inflation, central bank policies, and systemic risk, these metals are grounded in physical scarcity and universal recognition.
Throughout history, from ancient civilizations to modern economies, societies have turned to precious metals to preserve wealth when currencies have collapsed, governments have defaulted, or financial systems have failed. This enduring trust in precious metals becomes even more relevant in light of the shifting financial landscape of recent decades.
What was once considered safe, such as bank deposits or government bonds, no longer guarantees the preservation of real wealth. As Dr. Mark Faber, publisher of the Gloom, Boom and Doom report, points out, "When I grew up in the 1950s, what was safe was to have a bank deposit that is no longer safe." This sentiment reflects a fundamental transformation in how financial security is perceived.
Inflation, negative real interest rates, and eroding currency value have altered the risk profile of traditional savings vehicles. Precious metals, on the other hand, have demonstrated resilience across economic cycles. Since the end of the gold standard in the early 1970s, the price of gold has risen from $35 an ounce to over $3,000 today, marking an increase of more than 8,500%.
This sustained appreciation underscores the role of gold not just as a crisis hedge, but as a long-term asset that holds its value, while fiat currencies lose theirs. Relying exclusively on conventional financial assets has proven inadequate in protecting households from long-term economic pressures.
In many developed economies, wage growth has stagnated while the cost of living has continued to increase, resulting in a gradual erosion of living standards. Dr. Faber draws attention to this trend, observing that the standard of living of the typical household has been going down for the last 20 years.
This decline stands in stark contrast to economies that have adopted market oriented reforms and achieved improved financial outcomes. The growing disparity highlights the need for more adaptive and resilient strategies. In this shifting landscape, precious metals offer a critical layer of protection, preserving wealth where fiat currencies continue to lose purchasing power and traditional assets fall short.
Now, we present the clips from Mark's interview. Before we continue, please subscribe to our channel and activate the bell icon to receive timely updates. Thank you and enjoy the video. I would tell someone young that the price of gold has of course gone up already a lot. When I started to work in 1970, uh you could buy an ounce of gold with $35 and now it's somewhere over $3,000.
But I would also tell him the best way to look at it is that when you contemplate and you read and listen to central bankers and to government officials, you have to be d brain damaged to trust these people. Seriously. Yeah. And these are not trustworthy people. They are there essentially to look after themselves that they keep the job and that they can make some money out of it eventually.
In this situation, aside from making money in life, you know, you and I, we are working and we make money and so uh we want to preserve wealths. So a young person, I would tell him, look, do the same as I did. I bought every month in my life some gold. Uh I tell the bank buy this quantity of ounces of gold every month and just keep them aside because it will keep its value.
Now I do not dispute the fact that gold has gone up a lot recently in the last say 12 months or so and that it could come down somewhat if it actually as a buyer of stocks and bonds and anything you want to buy when things come down actually you understand if we start today and say every month we're going to buy 1 ounce of gold say we are happy if the price would come down because then we can buy the ounce of gold at a lower price.
Right now I look at precious metals in terms of physical precious metals which you hold somewhere in a safe deposit box at home or under your bed or you dig a hole in the garden or whatever and you put it there. and also in terms of mineral shares of mining companies. And I would build my portfolio of gold and precious metals mostly in physical form.
But occasionally like say at the turn of the year uh gold shares became very cheap relative to the price of gold and relative to the price of the S&P 500. Now we also have three major precious metals. Gold, silver, platinum. Platinum and I wrote about this for the last 6 months developed a special situation because as of 3 months ago, it was at the 122 years low against gold.
Wow. In other words, with one ounce of gold, you bought more platinum than ever before in the last 122 years. And what happens with the price of gold? The price of gold moves say like this. And the price of platinum goes above the price of gold occasionally and is then at a discount to the price of gold.
And now this discount is very wide. say the price of gold was as of two months ago three more than three times the price of platinum right and my view is that within 12 months or 18 months we will see platinum selling at a premium to gold you know platinum goes it's in in sort of a rocket uh mode going up vertically I think that is an opportunity.
I would call this actually a life opportunity. You buy something, it has a big upside potential and limited risk. That would say today you buy around $1,400, but it could drop to say back to around a,000, right? But at the same time, my view would be it's been there before. It could go to twice the price of gold.
I'm not I'm not projecting that, but I think it will go back to the price of gold. Wow. Wow. That's and that's a huge opportunity. $3,000. December of last year, the Trump top. And I argued maybe the market in the US will not go down in dollar terms but it can go down in terms of gold and silver and platinum and it can go down against foreign currencies.
As of today in uh euro terms the market is down from the high around 15%. And in gold of course much more. But as you say, if you print money domestically, the market may not go down. It may stay at this level or even go up. But if you print too much money, what will happen is the dollar weakens against foreign currencies.
But it's not sure because they can also print money. But for sure, it will weaken against uh precious metals. Amid ongoing debate over recent US fiscal legislation, economic analysts remain skeptical about its long-term benefits. While some political leaders have touted the bill as a stimulus for growth, critics argue it will significantly increase the national deficit without addressing core structural issues.
The bond market's muted response following the bill's passage, particularly the lack of downward movement in interest rates, suggests that investors do not view it as fiscally sound. Observers note that both current and former administrations have relied heavily on deficit spending and monetary expansion, a trend attributed to populist approaches that avoid politically unpopular measures such as tax increases.
Instead, inflation is being increasingly used as a tool to manage public finances, placing an invisible burden on households and eroding their purchasing power over time. Mark Faber has raised strong concerns about the direction of US economic leadership. While acknowledging occasional benefits such as deregulation, Faber criticizes the repeated intervention in monetary, fiscal, and geopolitical matters, arguing that no single individual can effectively act as an economist, central banker, and global strategist simultaneously.
He warns that over centralization and overconfidence in leadership capabilities could destabilize economic policy and weaken institutional integrity. Despite these issues, Faber concedes that some voters may still support current leadership due to the absence of credible alternatives, a reflection of broader dissatisfaction with the state of political and economic governance in the United States.
I don't see any positive in that bill. I think it will increase the deficit of the United States. And if you look at the reaction of the bond market when the bill was passed, the market didn't perceive it as say positive for interest rates to go down. You understand? Bessent and Trump both of them are money printers.
They want to print money. They they want to deficit financing because they are populist. So they don't want to tell the people look you have to pay higher taxes for these services and that those services. No, they prefer inflation, right? And so my view is uh the bill is actually a disaster like like everything Trump touches that the best for him would be to play golf and stay on the golf course and let the economy work on its own.
The only good thing that he does occasionally is to diminish the regulation in America. But otherwise his interventions are very poor. And it's impossible for a man of his intellect or for anyone in the world to be a politician domestically and an economist and a central banker and at the same time have a feel for geopolitics how to organize the world and I don't think the any country should organize the world because sooner or later you would have an evil leader that would organize it very badly.
So my view is that he has a view of the world that he would be the best federal board reserve board chairman. He would be the best treasury secretary. He would be the best uh ruler of America. Decide what people can do and how they should do it and so forth. and that he would be the best to organize an international order in the world.
You can't be the best at everything and uh he grossly overestimates his abilities. Grossly. I would have voted for him because the alternatives are simply not there. The alternative is a complete disaster. It means less and less growth, less and less economic growth and more and more uh government dominated economy which is inefficient and uh it's difficult to explain but if the trend continues the trend over the last 100 years where governments spent uh say 10% of GDP in 1900 to now in Europe around 50% of GDP.
In the US, I suppose with local governments, it's also close to 50%. If this trend continues and we go to 100% government, what you end up with is a disastrous economy like we had under communism and socialism in Eastern Europe, in Russia, in China, in Vietnam until these countries opened up and became uh market economies based on the capitalistic system.
When I grew up in the 1950s, what was safe was to have a bank deposit, you know, three months deposit or 6 months or a call deposit and so forth. That is no longer safe because it appears to me that the rate of cost of living increases, commonly called inflation. But we we have to be very careful with the word inflation because if your house goes up in value, the journalists and the media and the politicians will call it the bull market in home prices because um favorable fundamentals, right?
But an increase in the price of houses is an increase in essentially assets and is a symptom of inflation as well. Just as when you go to grocery shop and prices for your groceries are going up, this is also a symptom of inflation. And when stocks go up, it's also a symptom of inflation. So the we have to be careful with the usage of inflation.
But I can say that at the present time uh the rate of cost of living increases yours and everybody who lives in New York and Los Angeles and San Francisco is in general higher then the salary increases. So the standards of living in America that I can say also of Europe in good conscience the standard of living of the typical household of the typical family has been going down for the last 20 years there's no question about this right at least I can say that in Asia and in other in other emerging economies if I look at say Russia if I look at Hungary Czech Republic before the decl the fall of the Berlin wall before they turned capitalist market economy.
Since then the standards of living of all these countries that went from communism, socialism into the market economy and capitalism in all cases the standards of living have gone up in all cases. Right? There's not one case where it's went down. So the point I want to make to young people is first of all don't let the government do more things.
You have to take responsibility of your life and you have to work and so forth and uh then you will achieve freedom and you will achieve a higher level of of prosperity. But in order to store your wealth, you cannot own just cash. That is a mistake. You have to own some shares and some real estate. And if you want something very liquid, then I would own some precious metals.
Growing concerns over rising fiscal deficits, ongoing inflationary pressures, and waning confidence in traditional financial systems are driving renewed interest in precious metals as reliable stores of value. As the US government continues to increase its debt levels and adopt expansive monetary policies, investors are increasingly turning to gold and silver to protect their wealth from currency devaluation and market volatility.
Given these dynamics, many market observers are speculating that gold could soon reach the $4,000 mark, while silver has the potential to climb to $50 per ounce. These price levels, once considered lofty, are now viewed as achievable if inflation persists and government deficits continue to grow unchecked.
The combination of a limited supply, increased demand, and the metal's historical role as safe havens suggests a strong upside for precious metals in the near future. Investors seeking to safeguard purchasing power may find gold and silver to be essential components of a diversified portfolio as economic uncertainties deepen.
How do you anticipate gold and silver prices will perform shortly considering current market dynamics? Share your thoughts in the comment section below. If you find this video informative, please support and turn on notifications to stay informed about our latest videos. See you in the next video. Thanks for watching.
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