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Inflation, the cost of living increases, is running at between 7% and 12% depending do they have children and where they live and and and but it's not 3% or 4%. Dr. Mark Faber, editor and publisher of the Gloom, Boom, and Doom report Sham is a typical stock market person. Actually, he has some money because inflation and money printing bailed him out for the last 70 years since he entered business.
As governments print more money and debt surges, gold and silver are back in the spotlight. Could precious metals be the ultimate shield against the next wave of currency erosion? Mark Faber reveals that the global monetary environment has fundamentally changed as governments have moved away from asset-backed monetary systems toward modern fiat currencies managed by central banks.
This system provides policymakers with greater flexibility to respond to economic crises, financial instability, and recessions, but it also creates concerns about the long-term purchasing power of money. Following the COVID-era shock, governments and central banks dramatically expanded the money supply while western economies continued to carry substantial debt burdens.
As interest costs rise, governments may face increasing pressure to maintain spending and support financial markets, potentially creating further incentives for monetary expansion. For investors, the key concern is what continued money creation could mean for the real value of cash and traditional savings.
This environment helps explain the renewed attention toward gold and silver, which have historically been viewed as stores of value because their supply cannot simply be increased by central bank policy. While precious metals can also experience significant price fluctuations, their scarcity and global acceptance make them relevant when investors seek diversification and protection against inflation, currency depreciation, and prolonged monetary uncertainty.
Do you think gold and silver are the best protection against rising debt and money printing? Share your thoughts, and don't forget to like, subscribe, and share for more market insights. Then suddenly there is a shortage precious metals think have precious metals they were all buying stocks or all buying food and so on and precious metals go up and but it's not all at the same time.
What has happened recently and this in my opinion is important. They printed a lot of money after COVID. I mean huge quantities and increased the quantity of money globally, not just in the US. And what happened to property prices? I mean commercial property prices. You can read it everywhere in the newspaper.
In America in some cities, they are properties that are sold for 20% or 10% of what they were worth in 2018. You know, those who print money and something doesn't go up and another but recently also residential prices are down. The problem is that the governments leak. The problem is that the governments in Western democracies have borrowed money in order to keep up the standards of living of people and of the government officials and so forth and so on.
Keep the corruption going. Therefore, the government debt as a percent of the economy is now very substantial. And this government debt carries interest rates, okay? If interest rates go up on the government debt, the interest payments it's all in the US it's already over $1 million a year. It's going to be the largest expenditures by far the government in future.
The deficit cannot go down. I say deficit so large, it will go up. It will actually force more money printing. While frankly, the government will never tell you this. The situation is actually hopeless. Hopeless. A private citizen with some wealth and so forth. My grandparents used to say you can put your money on a bank deposit.
No, that is no good because the money loses its value. You have to have a money that keeps its value. I would say precious metals will help you a little bit. Oh, precious metals will help you a little bit, but okay, put your money where your mouth is. Where are Where would you allocate that? I live in Asia.
I'm a believer in Asia. Of course, we have problems. Every country has problems. Every individual has problems. It's a challenge of life. Solve problems you have and so forth. In Asia usually and there is a problem, people have to tighten their belt and then they survive somehow so somewhere. The Western world, the people sit there and say, "Oh, the government must help.
Oh, the government must help." Who's giving the money to the government? The government goes and borrows because they nobody wants to pay tax. Then no nobody wants to pay tax. No tax is popular except one tax. You have a neighbor, the tax on your neighbor is very popular. That is the only tax in the world people love.
Your neighbor is taxed and you are the beneficiary of it. Tax people to clean up your garden, look after your garden. It's socialism. Yeah. Um we're capitalist on this channel. I So, I hope so. Yeah. Absolutely. you're not too government pro-government. No. Robert, you think we're headed for more money printing and if so and if so, how do you play that one then?
I think that more money printing is inevitable, inevitable. And the stock market will be down 10 20%. They'll print money because they the rich people don't like to see the stock holdings down 20%. The portfolio's down 20%. He's a typical stock market person. Actually, he has some money because inflation and money printing built him out the last 70 years since the end of that business.
From the 1987 crash to today's currency turmoil, Marc Faber warns that when markets turn volatile and money printing accelerates, investors may need to rethink where they store their wealth. Marc Faber reveals that financial markets can shift rapidly when speculation, monetary policy, and geopolitical uncertainty collide.
His lessons from previous market crashes highlight the importance of maintaining flexibility and understanding the risks behind concentrated investments. Faber recalls the 1987 crash when stocks plunged roughly 21% in a single day, showing how quickly investor confidence can disappear. He also points to his experience with speculative trading in gold and silver, where aggressive short-term positioning left many traders exposed to severe losses.
Against this backdrop, Faber believes investors should consider the role of precious metals as a form of protection against future monetary expansion. He argues that governments could eventually be forced to print more money, potentially weakening currencies and influencing asset prices. Recent currency movements add another layer of uncertainty.
The euro has edged lower against the US dollar as profit taking followed a 7-week high, while demand for the dollar increased amid uncertainty surrounding US-Iran negotiations over reopening the Strait of Hormuz. For investors, these developments reinforce the importance of diversification, monetary awareness, and careful risk management.
Let's get back to the interview. I as an investor and I'm not talking about, you know, billions of dollars, but I'm talking about an a person who has, say, $50 million or $10 million or $1 million. He may like to invest in a company because he knows the people and trust the people and so forth. Or maybe he has some special knowledge and I think that the ability of individuals to choose which asset class is the most attractive is very important.
The index fund they just buy, let us say, Okay, there are different index funds. There some that are not market cap weighted. They are just, I guess, adjusted. But in general, if you're in an index funds, you own at the present time, say, if you buy the S&P, 30% of the S&P will be the magnificent seven stocks and maybe a few others, but but it's very concentrated.
And but but the last 12 months, there 493 stocks that are not the magnificent seven. These stocks have performed better than the magnificent seven. So, I want to have that flexibility as an investor and I would never invest in a index fund. Mhm. But but say, if you tell me the stock market has become terribly oversold and it will bounce and then I say, "Okay, I trade." Instead of buying a single stock, I might buy an index as a trade, but not as a long-term investment.
Tested yet. I mean, I saw a massive selling wave in the crash in '87. I remember very well. And I mean, people don't talk about this, but the fact is simply the stock market went down 21% in one day. In one day. Can you imagine what would happen if the stock market went 21% after a 5% drop, Mr. President and Mr.
Walsh and Mr. Trump, they would step in and print money like crazy and buy up everything and support the market. Mhm. Because I'm not an all know person, you have to ask Mr. President Trump. He knows everything better than anybody else in the world. Many things can happen, but one thing I'm quite sure about is that a lot of people in a year's time will have lost a lot of money.
Lost a lot of money because I I used to run two American brokerage firms in Hong Kong. And I saw the speculators at the time we didn't have internet and we didn't even have fax machines. They came at night to gamble on gold and silver and copper and oil and anything, you know, that anything that moved they gambled in.
But they came in at night, we had a visitor's gallery at night so people could come and and they brought up their girls that they bought out of nightclubs and so on gambled there. Anyway, of all the speculators they called in from Indonesia, they called in from Brunei, from everywhere in Asia. So I had built a book of lots of kinds.
None of them made money of these day traders. Not one. And when the crash occurred in January 1980 when silver and gold collapsed from the peak, I've seen people cry. And same the '87 crash, they lost every everything. They had some savings, they lost the whole family wealth. Basically I have a website gloom boom doom.com and I have these newsletters, the Gloom, Boom, Doom and Gloom Report and the monthly report and both are okay.
I mean, I don't know. People have to judge whether they like it or not, but they're I think that if someone reads my report or read my report for 3 years, he knows more about economics than someone who goes through an MBA in America or another school. That I'm quite confident about. Whether my forecast about stocks and bonds and commodities is always correct, that I don't know, but the final word is if you look at the world, you have to sit and say say to yourself, I don't know.
I don't know whether they will really follow through and print money like crazy like they will have they will be forced to do. It's not a choice. They will be forced to do and what are the consequences? Well, that reason I own precious metals. Will precious metals go and make a new high right now? I don't know.
But if I look at Mr. Trump and his administration and some of the idiots that are surrounding him, then I think that gold should be at $100,000 already. The broader message is that today's financial environment demands a careful look at how wealth is protected when debt, monetary expansion, market concentration and geopolitical uncertainty are all rising at the same time.
Gold and silver remain important because their supply is limited and their value is not directly dependent on the decisions of a central bank or government. However, their history also shows that precious metals can experience sharp price swings, particularly when speculation becomes excessive or markets enter a period of stress.
That makes risk management and diversification essential rather than relying on any single asset. Meanwhile, currency movements and changing expectations around monetary policy can quickly reshape investor sentiment across global markets. As governments face growing debt burdens and pressure to support financial markets, questions surrounding inflation and purchasing power are likely to remain central.
For investors, the key challenge is balancing opportunity with protection while preparing for a financial landscape that could remain highly unpredictable. If another $1 trillion floods the financial system, where will you put your money? Gold, silver, or the dollar? Share your thoughts and don't forget to like, subscribe, and share for more market insights. Thanks for watching.
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