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There is no correlation you can show me where gold consistently rises with inflation. It simply doesn't exist. Gold enthusiasts complain that, since a bank has gold reserves, what do they do with them? They lend it out to make money. Oh , that eliminates the price. Eventually, you'll see gold go up.
In my opinion, prices should fluctuate freely without government intervention. Prices should fall when there is an oversupply and rise when markets are undersupplied, when there is a shortage. And as prices rise, new mines and so on are opened. And as prices fall, the mines close. And that's a free market.
Gaining true financial clarity requires moving away from conventional narratives and dissecting the real forces of the market. Many investors accept without question that precious metals reflect inflation, but historical cycles reveal a much more complex reality. Martin Armstrong, a renowned economic forecaster, and Marc Faber, a veteran global investor, emphasize that geopolitical friction and human productivity drive long-term wealth much more than official price indices.
From a structural point of view, when central banks lend gold to earn returns, the short-term price is suppressed, but fundamental market forces ultimately prevail. In our assessment, these artificial interventions create accumulated tension in commodity prices. Predictions based on economic cycles indicate an imminent boom in raw materials towards the peak of the cycle.
After a brief technical correction, tangible assets are expected to rise aggressively, significantly boosting gold prices in the long term as fiat monetary systems face unprecedented pressure . Investors who recognize these underlying macro dynamics early will be the biggest winners as physical assets regain their fundamental monetary rol can tell you, from my observations of dealing with governments everywhere .
What really made the United States the reserve currency, besides World War I and World War II and all the money that came here, was the fact that the United States had more freedom and was a consumption-based economy. Without regulations of that kind. Germany was able to rise from the ashes by selling its cars to the Americans.
Toyota was able to grow, you know, by selling its cars here, lifting up Japan. Neither of them had any gold reserves or anything like that . OK? The wealth of a nation is actually the productivity of its people. Alright? It's that simple. Look, Russia is the richest country in the world from the perspective of natural resources.
Most people don't know this, but Russia had the largest gold reserves in the world in 1917. When the revolution was happening , we don't know who, but someone hid all the gold reserves to prevent the communists from getting them. They have never been found. There are rumors that they were buried in some forest, others said: "Well, maybe they were thrown to the bottom of a deep lake." You know, a lot of people have been looking for them.
It's like a kind of quest in the style of the Knights Templar, I suppose. To this day, Russia is the richest country in the world from the perspective of natural resources. Why isn't it the financial capital? Well, because of regulation, the communists, and so on. So there's more to it than just gold reserves or something like that.
It's about people's productivity, and that's what Adam Smith was really talking about. Gold is rising not because of inflation. Gold reached 875 in 1980, right? It went down for 19 years while US debt went up for 19 years, right? It's not inflation. That's been a story for people who don't really understand what's going on .
Gold basically bottomed out at $100 in 1976. It went from $100 to $400 by December 1979. Okay? And that was mainly because the dollar was falling. OK? Then it went from 400 in December 1979 to 875 by January 21. Because? That was when Russia invaded Afghanistan. Correct. It's more geopolitical than anything else .
There is no correlation that can show me where gold consistently rises with inflation. There simply isn't one. And gold enthusiasts complain that if a bank has gold reserves, what do they do with them? They lend it out to make money. Oh, that eliminates the price. Gold does not pay interest and it costs money to store it.
So, he's had, you know, banks lending his gold to make money from it. You know, it's just part of the game. The price isn't depressing or anything like that . It's just that, eventually, you'll see gold rise. We had warned that there would be a boom in raw materials towards the peak of the cycle, then it would recede a bit, and then it would happen again .
And it is in raw materials where inflation actually has an impact; it is the cost of production and not a question of value for value. Part of the reason gold fell for 19 years is that, when it rose to 875, there was a wave of gold mine openings. So, suddenly, the supply increased dramatically and everyone was selling gold.
And as it went down, they ended up having to cover themselves. I mean , I know I was called to many of the board meetings of the major gold mining companies, things like that . It has been a fascinating career. I even had one, you know, asking about gold. I said, "Well, everyone is waiting to see what OPEC says today." "Oh, is that important?" Yes.
I said, you know, "Everyone 's waiting to see what they say today." It puts me on hold, it dials me, it puts me on speakerphone at the OPEC meeting. She ca n't believe how connected everything really is. He really can't. I 've seen it, you know, in every way imaginable. I mean, it's been a fascinating journey.
So, what I'm saying is n't a personal opinion; it comes from my actual personal experience. The dynamics of global capital are quietly shifting from the dominance of Western equities towards emerging markets and tangible reserves. Although major stock market indices may appear strong in nominal terms due to continuous liquidity injections, their real valuation against hard assets is rapidly eroding.
Official inflation figures routinely underestimate the true decline in purchasing power, obscuring the accumulated costs of essential goods such as health, energy, and housing. In our opinion, relying purely on paper assets managed by Central Banks creates a false sense of security that blinds market participants to systemic vulnerabilities.
As fiat currencies collapse around the world under aggressive debt monetization, physical commodities such as gold, silver, and platinum offer a safe haven without burdens, based strictly on free market supply and demand . Financial assets will continue their downward trend against hard money as centralized price setting finally fails.
Now, let's get back to the interview. Last year, for the first time in, say, about 15 years since 2010, Europe and emerging economies significantly outperformed the US. Significantly, with some exceptions, say, Indonesia and Thailand, which did not rise. But in others, like Brazil, the stock market gain and currency gain added up to almost 50%.
So this is a big change: other markets and other assets are performing better than the US market. And the big change was also the superior performance of gold , silver, and platinum against, say, the S&P and the Dow Jones and so on . And I think they can print money. Yes. And in nominal terms, the Dow and the S&P might rise a little, but adjusted for inflation and especially the price of gold, I think these financial assets will continue to decline.
The market produces a suitable price, and that is the price of gold. Uh, now some people will say that gold is in a bubble. Yes, it has risen a lot, but I could answer no, that the prices of gold, silver and platinum are stable. What has happened is that the purchasing power of paper money worldwide...I mean, not just in the US.
but also in Europe and Japan, where the purchasing power of paper money has plummeted. In other words, while when you were young you could buy this basket of goods for $10, now for $10 you can only buy this basket. Uh, in other words, uh, prices have gone up a lot or the value of money has gone down a lot.
And I think if we look at gold, we could say that yes, it is overbought. But then I look at the purchasing power of money and it has dropped a lot. In other words, if someone tells me that the inflation rate is 2%, it's a complete joke. Go to the doctor, go to a restaurant, pay your insurance premiums and your home electricity bill, etc., everything has gone up well over 2% in Switzerland.
They claim they have no inflation. And in every survey on the price level of cities around the world, Swiss cities are always among the 10 most expensive. How is it possible that they are the most expensive cities in the world if there is no inflation? where the prices should be . Because in a free market, prices fluctuate.
And in a planned economy under the communist or socialist system, you have price fixing. That's what Trump wants to do with credit card interest rates. He...he understands. I would have voted for Mr. Trump because I believe the alternatives would be even worse. But it's not clear to me that he's a capitalist.
In many ways, it is a central planner. So, is he a fascist or a socialist? I don't know that . But he is an interventionist. And in a perfect world, he would rule the United States and the entire world like a king or an emperor. That is his dream. The subject, although he would have voted for him, is mentally disturbed.
In my opinion, prices should fluctuate freely without government intervention. And prices should go down when there is an oversupply, and they should go up when the market has little supply, when there is a shortage. And as prices rise, new mines and so on are opened. And as prices fall, the mines close.
And that's a free market. And that's okay, other people have different opinions. But in my opinion, free markets are very important. And they are the foundation of our capitalist system. And they are the basis of the incredible growth that the world has experienced since the essential adoption of the capitalist system, let's say around 1800, okay ?
Before that, there was very little growth in the world, economic growth, and the world population in 1800 was not significantly larger. It had increased since the time of Jesus Christ, but not drastically. But then, between 1800 and today, it has increased eight times, more than eight times. In my opinion, you will be grateful at some point in your life for having had, say, 20, 30% or more in gold and silver, because paper money will lose value.
And if the last 5,000 years are any guide, governments, before they fall, before they implode and collapse, and before everything is ruined, before that happens, will print money. I would have some gold and silver. Now, it depends, you know, some people have more and some people have less, but it's something I would strongly advise you to have.
I would not strongly advise you to own all seven agricultural stocks in the United States, the magnificent seven. And I say the same, but I would strongly urge you to have some gold, silver, and platinum. Over the past two centuries, real wealth creation has been driven by free capitalist markets and human productivity, rather than government control or centralized management.
However, whenever government agencies impose central planning, interest rate caps, or price interventions, they inevitably disrupt the natural balance between supply, demand, and production. 5,000 years of monetary history demonstrate a consistent pattern. Regimes in peril invariably resort to uncontrolled monetary expansion just before structural collapse.
In the current environment, heavy exposure to overextended technology stocks , bets on semiconductors, and speculative growth assets leaves portfolios deeply vulnerable to a sudden price correction event. From our perspective, relying on inflated stock market valuations during a period of increasing geopolitical and sovereign debt risk is an uncalculated gamble.
Fiat currencies are expected to experience severe devaluations as central banks attempt to print their way out of escalating debt crises. Maintaining between 20 and 30% or more of a portfolio in physical gold, silver, and platinum will be essential for long-term capital preservation. Investors who take proactive steps today to secure tangible assets will ultimately be grateful they protected their wealth against the impending currency devalua.
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