Politics

A Hyperinflationary Depression has always been the inevitable end to the biggest financial bubble in history. And this time it will be global. Hyperinflation will spread from country to country like Coronavirus.

With the ongoing financial meltdown, demand for precious metals has exploded while at the same time, supply has abruptly dried up. Prices will not stay long at current levels. Expect some great surprises in May-June.

With very little physical available and demand substantial, there is soon likely to be pressure on the paper market. Investors who have bought gold and silver futures will be concerned of the contracts being honoured and ask for delivery. What we are seeing now is probably the beginning of the end of the gold and silver paper market.

Before I talk about markets and gold further on in this article, I will mention some of the horrific effects that are now hitting the world due to Coronavirus. Just to summarise that my market views haven’t changed. Stocks will go down by at least 90% from here and gold will surge to levels that few can imagine.

In 15 days, the price of an ounce of gold in euros has risen from €1555 (first fixing on February 24 in London) to €1443 at the time of writing. With a low of €1437 per ounce, this represents a drop of 7.59%. And, since March 6, the price seems to have started to fall again. Should we be worried about this?

This is it! The party is over. The world is now facing the gravest economic and social downturn in Modern Times (18th century). We are now entering a period of global crisis that will change the world for a very long time to come.

The economy is being hit hard by the coronavirus pandemic, the risk of recession is looming, and now the central banks are rushing in like a white knight!

In the short and medium term, the value of stocks, bonds and currencies should undergo a violent readjustment due to the explosion of the debt bubble, hang on to your precious metals, which conversely will be very strongly revalued upwards.

Not content to have surpassed its all-time high from October 4, 2012 to the end of August, the euro-denominated ounce of gold has again made its mark.

In this insightful interview, Max Keiser and Egon von Greyerz talk about the 2010s as a decade of fantasy and decadence. The Dow/Gold ratio has now turned down and will crash 95% according to Egon. That takes the ratio back to a 1 to 1 level where it was in 1980 when the Dow was 850 and gold was $850 per ounce. So we will now see a crash in stocks and a surge in gold.