Heading Rapidly Toward Hyperinflation

On my July 7 radio show, Alasdair Macleod noted that something changed on March 23, 2020. At that point in time, virtually everything started to rise in value. And it seems Alasdair is right because virtually all commodities and financial assets are rising together. This week was a case in point, as you can see from the table above on your left, with silver, which is both an industrial metal and also a monetary metal taking the prize with a 4.26% gain. I went back and checked my weekly Inflation/Deflation Watch and sure enough! It bottomed on March 20 at 131.67. It closed this week at 157.18 or 19.4% since March 20.

Alasdair believes this is an ominous turn toward a central banking system that is now ready to bring out the biggest monetary bazooka since the Weimar Republic. The implication of this, at least according to Alasdair’s view, is that we are likely heading rapidly toward hyperinflation, a repudiation of the dollar as the world’s reserve currency by the end of this year! Alasdair believes that will lead to a return to honest monetary metal as a medium of exchange, and his full expectation is that silver will be the go-to monetary metal with the gold-to-silver ratio benefiting silver so that the ratio could fall to 20:1. With gold closing this week at $1,802.10 and silver at $19.09, the current ratio is 09.4:1. If Alasdair is right that means that our silver stocks should be on an absolute tear. And yet, if Alasdair is right, there is no reason to be joyful because a hyperinflation will bring about enormous destruction and civil disorder. The point is, no matter what our Creator allows to take place in a rapid movement toward Marxism by the Democrat party and Black Lives Matter, it seems better to own gold and silver and those companies that produce Nature’s money than to be totally defenseless against the pernicious poverty impact of hyperinflation. 

Certainly, this environment has been great for most of the companies covered in my newsletter. Despite starting the year with a 10% allocation to the S&P short (NYSE-SH), which is down by 9.58% on the year, our Model Portfolio is up over 27% so far this year, compared to the S&P 500, which is down by 1.42% before factoring dividend payments. And the rise since a devastating decline is great for my personal portfolio, which is up 29.37% so far this year.

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