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I think the circumstances today are far better for gold, silver, and platinum than they were in the 70s. And I would have voted for Mr. Trump. There's no question about this. I would never have advised anyone to vote for Miss Kamala Harris and the Democrats in the present state. But I have to say that Mr.
Trump is a present sent by God to the world and to the world that owns gold, silver, and platin because you can be sure that under him there will be massive spending deficits and huge money printing. There's no question about Mark Faber, also known as Dr. Doom is a renowned Swiss investor and economic forecaster who believes current conditions are more favorable for gold, silver, and platinum than in the 1970s.
He described Trump as a present scent by God for precious metal investors, expecting his return would bring massive deficits and money printing, which typically boost gold, silver, and platinum. In the 1973 to74 bare market, while most assets declined, gold was an exception. The price of gold had already been adjusted upward in 1971 when President Nixon closed the gold window in August, leading to a sustained uptrend.
Gold is not an interesting asset, and holders only earn a return if its market price rises. Thus, speculators tend to buy only if they expect gold prices to increase more than anticipated returns on other investments. The late7s were marked by intense speculation in the silver market. This speculation culminated in the Hunt brothers attempted market manipulation.
They attempted to corner a significant portion of the world's supply, driving prices to record highs. In January 1980, an ounce of silver reached a peak of $50 compared to around $11 a few months earlier. This attempted manipulation ultimately failed, leading to a significant market crisis. After their arrest, the price of silver plummeted to $11 an ounce in just 2 months.
Before we dive into this video, make sure to like and share it. update. In the 7374 bare market, the price of gold had been adjusted upwards in 1971 when the when Nixon in August 71 closed the gold window. And so the gold price was in an uptrend and in during the bare market of 7374, everything went down except gold shares and mining companies.
But in general, you know, like in 2000, the tech bubble burst and it brought down everything. But there's a case where the market broke down and other markets went up. That is Japan in ' 89. The Japanese market was a colossal bubble. It made up for more than 50% of stock market capitalization in the world.
In other words, you take all the stock markets in the world, including the US, the European markets, and Japan, and Japan was 50% of this whole thing. I think the circumstances today are far better for gold, silver, and platinum than they were in the 70s. And I would have voted for Mr. Trump. There's no question about this.
I would never have advised anyone to vote for Miss Kamala Harris and the Democrats in the present state. But I have to say that Mr. Trump is a present sent by God to the world and to the world that owns gold, silver, and platin because you can be sure that under him there will be massive spending deficits and huge money print.
There's no question about this. He has no other choice. Basically, in the last 10 years, platinum is up say I don't know 10% or so. But uh the price of gold is up much more. So in gold terms of platinum is very cheap and platinum as well as silver. They trade against gold and sometimes the price of platinum is higher than the price of gold and sometimes it is lower as it is now.
Now, my sense is that the platinum price could easily be manipulated by some governments or some hedge funds or by you and me. You understand? We could tell the world, you're crazy to buy gold. You should buy platinum because the supply of platinum is much smaller than the supply of gold. And if in 1970 they could squeeze the silver market.
The silver market is actually large market in my view South Africa and Russia and you and me we could squeeze the platinum market. And I think and this is a view and everybody has different views about everything but my view is that there was about a month ago a very important breakout point for platinum and that platinum has huge momentum on the upside and that within 18 months the price of platinum will be higher than the gold price.
So let's say platinum is below $1,400. Gold price is $3,300 whatever and therefore I think that platinum could go to3 to $4,000 easily. Faber was unsurprised by Trump's trade war, arguing that the US had the most to lose. He noted that China would be less affected as exports to the US make up a small portion of its economy with stronger trade ties to emerging markets than to the US and Europe combined.
This perspective aligns with broader economic concerns as the Trump 2.0 trade war has already begun to harm the US economy as evident in a 0.3% contraction in the first quarter, rising inflation, and declining housing demand. Bond markets have also been destabilized by Trump's tariffs, fiscal plans, and criticism of the Federal Reserve, which have sent global yields into turmoil.
Faber further criticized fund managers for their herd mentality, arguing that they follow trends rather than independent analysis, buying stocks like Nvidia simply because others are doing so regardless of economic fundamentals. Even if they view tariffs as harmful, they continue investing in rising markets.
This reaction reflects a broader issue. While many people instinctively support free trade, they struggle to articulate why tariffs are damaging. Tariffs raise costs for American consumers and reduce output, profits, wages, and employment among foreign exporters, creating ripple effects that ultimately hurt the US economy more than protect it.
Let's go back to the interview. Commodity price increases are very favorable for emerging economies because most of the resources in the world are in emerging economies. That's why I'm sort of actually I'm not surprised because Mr. Trump, he knows nothing about economics. He knows nothing about anything.
But he's a good promoter that I leave him. But with his economic knowledge, I'm not surprised that he initiated a trade war because actually the one country that has a lot to lose in a trade war is the US. the other countries is not they're not going to suffer all that badly and especially China uh the exports to the US are relatively small as a percent of the economy and as a percent of total exports they export much more into emerging economies than say to Europe and the US combined they obviously think the tariffs are bad and so forth but they buy stocks because the stocks move up you understand The fund managers is not a very enlightened group of people to put it mildly.
They do what other people do. The fund manager of course he looks at what a company does and what the results should be and so and so on. But if the he watches what other fund managers do. If other fund managers buy Nvidia then he's going to buy Nvidia. So the fund managers buy whatever moves up and the cons you know we have a lot of automatic trading and so forth uh with artificial intelligence also they buy whatever moves and sell whatever moves down.
So that creates a lot of volatility in the markets. This is a question that relates to economic development. How do you define uh success in economics and failure and how do you define the society's success and failure and so forth? I mean, we could go back to the 16th, 17th century and look at America and the native population of America and America today with all the progress and all the wars that happened in between the Civil War and the independence wars and so forth.
And then we could say, well, has society and the economy become better? Yes, for sure the economy is better, is much larger and so forth. But you go to an Indian chieftain, a native chieftain and you ask him, is your life and the life of your tribe better or worse than it was 300 years ago? I think he might have a different view than you and I.
And I have to say, you know, nowadays society has moved into a money game. Everything centers around money. I mean, I grew up. Mark Faber views gold and silver as crucial hedges in an era marked by economic imbalance and geopolitical tension. He argues that the value of these metals is amplified when short-term speculation rather than sound fundamentals drives traditional markets.
Gold and silver, unlike paper assets, retain intrinsic worth and are less vulnerable to policy shifts or central bank interventions. As inflation pressures mount and government credibility weakens, particularly in developed economies, these metals serve as a store of value amid declining trust in fiat currencies and rising debt burdens.
Faber also points out that gold and silver tend to benefit from shifts in investor sentiment during financial disruptions. While most commodities are closely tied to industrial cycles, gold and silver play a dual role as both financial assets and inflation hedges. Their historical performance in times of fiscal stress demonstrates their resilience and strategic importance.
As emerging markets gain influence and global power structures shift, Faber believes the relevance of gold and silver will only increase, offering stability in an otherwise uncertain economic landscape. What are your thoughts on Mark Faber's views about gold and silver in today's economic landscape?
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