Gold Is Starting to Reveal Falsely Stated Wealth. (Uncut) 03-12-2025

Gold Is Starting to Reveal Falsely Stated Wealth.

It’s been totally neglected and mainly because we’ve had the biggest credit bubble in the history, recorded history at least since 1980 to 2020 when interest rates went from 15% to almost zero in the 10-year yield and it was really easy just to finance everything and this is shifting now and it’s going to be a huge historic shift and if you don’t have some kind of exposure to gold, silver or hard assets, I think you’re going to lose out. Wednesday, March 12th, 2025, Monaco 64, Home of Alternative Economics and Contrarian Views. Well, today we’re going to look at how gold is starting to reveal falsely stated wealth.

Yes, we’ve got some interesting charts to look at comparing gold versus the S&P, looking at the dollar versus the dollar index and even gold versus the dollar index. We’re going to touch upon the dollar as well. Before I do though, I’d like to thank you again.

The number of subscribers is rising very fast. I think we’re going to be at 130,000 by the end of the week. It’s never been, of course, my objective to keep track of subscribers.

All I try to do here is create good content and of course, I do it every day so some are going to be better than others. But it’s interesting though to keep track of these numbers sometimes. I think it goes to show that I’m on the right track, hopefully.

The other thing I like to say and I’m going to touch upon some news from the European Union. It’s very important, not just those of you who are in the EU but anywhere around the world, that you try to protect your savings as much as possible. Take, in my opinion, as much savings out of the financial system as possible because the way things are going, they’re going to come after you.

We saw this. Some people have found out that the European Commission, for example, the president of the European Commission, the unelected president of Von der Leyen or Von der Leier, right, as they call her, she said yesterday, we will turn private savings into much-needed investment. That’s to do with the CBDC that the ECB plans to bring, I think, by October.

These are dangerous times. And that’s why you need something outside the financial system. It could be gold and silver for liquidity, physical gold and silver.

And you know that I’ve been telling you about this for many years. If you haven’t gotten a hold of gold and silver yet, make sure you think about it. And if you do want to get a hold of gold and silver, there are some very good reputable affiliates below in the description.

In North America, Miles Franklin. In the UK, Gold Investments. They will ship anywhere in the EU as well, Gold Investments.

So if you want to find out more, all the details are below in the description. Of all my videos, actually. So back to gold and why, in my opinion, it’s starting to reveal falsely stated wealth.

And I have to give credit to the late Jim Sinclair, the late Mr. Gold from the 70s, who tried to warn us about all this. I started following him pretty much right after I started buying gold in 2002. He had a great blog, JS Mindset.

And he also wrote a book around 2010-11 after the great financial crisis. It’s this one here, A Pocketbook of Gold, a survival manual for monetary mayhem. And we are in the monetary mayhem right now.

I’m convinced of that. And it’s only going to get worse in the next few years. So I’m going to skip here.

Go to page. Well, by the way, this book is really tough to get. And it’s not cheap.

I think if you find one. I was lucky that I followed his blog when he came out with the book 15 years ago or so. I bought it.

So page 70. We’re going to go through this. And then we’re going to go through some charts that are telling me that things are starting to get very interesting, especially if you hold some gold and silver.

And we’re going to look at the fundamentals and what President Trump is doing, in my opinion, that is going to accelerate this process. Gold is a revealer of falsely stated wealth. When wealth is overstated and expectations for future wealth are unrealistic, fiat currencies depreciate.

That depreciation is borne by the citizenry who are forced to lower their living standards to compensate for both personal economic management, as well as the mismanagement of the affairs of state. And this, my friends, has not only been happening since the Biden administration, you can go back to 1933, but as well, but it’s been happening in space since 1971. So it’s the whole political machinery that has done this both sides of the aisle.

So anyway, financial and military overextension has a social corollary in over-promised Social Security, Medicare, overstated real estate equities affluence. As expense runs out of control, guarantees to the citizenry also explode as politicians seek to retain the privilege of office. But the promises of wealth are false.

The belief that ownership of real estate is a ticket to fortunes is hollowed out for what it is, a myth. I would add other things to that, like Bitcoin, cryptocurrencies, tech stocks, and many other forms of speculation. Wealth that was taken for granted suddenly appears ephemeral.

The amount of currency which once bought certain things no longer does, but wages have not risen along with prices. Well, that’s unless you are a CEO or a top director in the corporate world, or if you’re a politician and give yourself big pay rises, right? And really great pensions. Instead of wealth, citizens get saddled with a big chunk of government debt, i.e. debt created by mismanagement and corruption, I would add.

That result is everyone pays more for food, fuel, and other necessities. Government passes on the mismanagement of economic affairs to its citizens by devaluation, and that’s what we’re going to get. But most people don’t understand that the devaluation will come against gold and silver.

You can’t devalue against other fiat currencies. It’s a race to the bottom. As the imprisoned money manager Martin Armstrong has artfully stated, and this is Martin Armstrong speaking here, the decline in the value of a currency is in reality a free market tax taking away wealth that is overstated.

So currency can also be an indirect tax to compensate for the poor management of the states. The corresponding rise in gold, especially when it is a global phenomenon, all currencies actually going down versus gold, or gold going up versus them, as it is now. Well, it’s been happening since 2000 really, the beginning of the century, is in effect a devaluation of all the world’s currencies and a restatement of wealth on a global scale.

As is both presently and historically evident, the attempt to restate wealth to a lower level becomes a competitive event in its own right as nations fight to devalue their currencies against each other to reduce the burden of indebtedness. It should be recalled that when FDR lowered the value of the dollar vis-a-vis gold in 1933, America was the ninth nation to do so in a three-year period. Falsely stated and assumed wealth, largely created out of the assumption of debts that cannot be borne, must eventually reset at a lower level.

Populations bear the restatement of wealth through the expansion of monetary aggregates, causing a devaluing of the national currency that denominates their wealth. This happens to all currency holders, regardless if they personally assume any debt. Gold rises because gold is a monetary proxy inversely related to a nation’s currency.

The burden of indebtedness is reduced along with the standard of living. Commodity prices increase. Debt deflation has become currency inflation.

Falsely created wealth or falsely stated wealth. And it has been happening, of course. I would say since the beginning of this century, gold has outperformed stocks and bonds, even though you don’t hear that said in the mainstream financial press.

So I’ve heard what President Trump has been saying lately, and I know what he’s doing is really all topsy-turvy. And I see a lot of people are blaming what the stock market is doing for the trade wars and tariffs. But I think this was going to happen no matter what.

Why did Warren Buffett load up on a third of a trillion dollars in cash? Well, because he knows what’s coming. These moments of falsely stated wealth don’t last forever. So I even noted that Trump said that the economy and the markets have been artificially inflated by all the money printing, all the deficits funding.

And it sounds very familiar with what Jim Sinclair said there about how everything becomes falsely stated. Do I think President Trump has read that? I doubt it, but who knows? So we’re going to look at some charts that are showing me that this could be just kicking off. And it’s not going to happen this week, next week, next month or.

Yeah, well, it is. It is happening, but it’s not going to culminate. It’s going to be a slow process.

It’s going to take, in my opinion, at least two years, maybe three or four years. But for me, that’s not a very long, long time in markets and investments. I know people want results these days instantly, but you need to grow up, wake up and be patient.

So, yeah, this is the chart I wanted to show you. And I’ve been looking at these ratios between gold, silver and the indices. And I saw I have to say I saw a story on King World News about this, that the price of gold versus S&P is breaking out.

And I had looked at it. So I looked at it again. And yes, it’s a massive breakout here.

This is what the momentum traders call a turtle signal. What’s a turtle signal? Well, it’s a trading system that Richard Dennis, who was well, he’s still around, I think, but he was a trader, commodities trader in the 80s. And he put an advert in the Wall Street Journal trying to recruit anyone to trade his system.

And it’s to do with breakouts, usually a 22 day breakout or 55 day breakout. But in the case of gold versus the S&P, the breakout. Yeah, it’s massive and it’s the highest level in four years.

So this is very significant, this breakout here. And as I said, we’re going to have ups and downs the next few years. But the general trend is for gold to outperform the S&P.

And I think I spoke about that in my last live stream on Sunday. I’m going to put it up here in the cards with Rafi and Clive. And I talked about how gold could go up multiple times, I think, versus the Nasdaq or it could have been the S&P.

So and you can look at the Dow Gold Ratio as well. That’s starting to break down. I think we are at a five, almost five year low.

And that we had consolidated for quite a few years, the last few years between like 15 and 20. And now we’ve broken down. And just like the chart of the gold versus S&P, it’s breaking down because we’re showing it the other way.

And I think a lot of money is going to start flowing into commodities as well, the non-monetary commodities. And why is this happening? Well, it’s a rebalancing of the scales. The scales got to favor too much financialization, paper assets, speculation.

It didn’t favor real things like commodities that we need to live, commodities that we need to use as inputs in all our high tech gadgets and everything that we use to move around, everything that we use to have shelter. It’s been totally it’s been totally neglected. And mainly because we’ve had the biggest credit bubble in the history, recorded history at least since 1980 to 2020, when interest rates went from 15% to almost zero in the 10 year yield.

And it was really easy just to finance everything. And this is shifting now and it’s going to be a huge historic shift. And if you don’t have some kind of exposure to gold, silver or hard assets, I think you’re going to lose out.

I want to talk a little bit now about the dollar because yes, the dollar has dropped quite a bit. As you can see by this quarterly chart, we got up to 114 a couple of years ago. And yeah, up until recently, we got up to almost 110.

And now it’s coming back down to 103. There’s a lot of talk about the dollar collapse. I think the dollar and for that matter, all fiat currencies are going to keep collapsing.

But that’s versus gold and silver. But this chart of the dollar is the dollar index, which is basically the dollar versus the major European and Japanese currencies. So it’s mostly the dollar versus Western currencies.

And this dollar index started as an index in 1973 at 100. And at the time, gold was around 85. And now we’re almost at 3000.

So guess what was the right place to be? Well, gold, it doesn’t matter if you think in euros, yen, Aussie dollars or any other of these Western currencies. So what I’m trying to say here, yeah, the dollar is not looking great. But I don’t think the dollar is going to collapse versus the Western currencies in the way that all these currencies are collapsing versus gold.

As you can see, we are actually in an upward trend in the dollar since the low in 08 at around 70. And actually gold has gone from 1000 in 08. That was the high in 08 to where we’re now.

So I actually think the dollar and gold are going to keep going up together. Of course, gold is going to go up much faster than the dollar goes up against the fiat currencies. I could see the dollar going below 100 here, maybe into the mid 90s.

But don’t don’t get distracted by that and hold on to euros and Swiss francs and British pound and Japanese yen thinking that it’s going to help you. No, jump to gold and silver in my opinion. So that’s what I wanted to show you there.

So it’s 20 to 8 a.m. London time. We’ve got spot gold at 29 19. It’s up four bucks.

The high has been 21. That was the high yesterday. Thereabouts.

I think the key resistance here is going to be 30. If you look at the short term charts, 29 30. And I noticed yesterday that we almost had an outside day up, you know, bullish outside day only by I mean, the low was 28 80.

The previous day was exact same low, but we made a new high. So I think it looks pretty good right now. Short term silver is testing that key lid that the banksters have put on it right now.

We’re trading around thirty three dollars. The high. Well, it’s been around thirty three or two and the low is sixty nine.

I think they’re having problems as well with the silver supply in the LBMA that’s starting to shrink massively. But the bank banksters will fight all the way to try to keep their falsely stated wealth from being revealed. But I think eventually they’ll lose.

What about the stock markets? They’re fairly volatile yesterday. At one point, the Nasdaq rallied on the day, the Nasdaq 100 and the Nasdaq composite. But at the end of the day, they all turn south and finish slightly lower.

The Dow led the way lower, though it finished over 1 percent. Right now, the Dow is up a third of a percent or up one hundred fifty eight points. The Nasdaq 100 is up two thirds of a percent at nineteen thousand four eighty and the S&P is up half a percent at fifty five ninety five.

Currencies are pretty steady here this morning, not much to report on those crude oil. WTI is up two thirds of a percent at sixty six forty. High grade copper is doing quite well.

We’re approaching that five dollar level slowly, but I think we’re going to get there soon. It’s up one percent at four eighty three. And today we’ve got the CPI data and most people call that the inflation data.

And if you’ve been following me for a long time, you know that it’s one of my pet hates because CPI is not inflation. CPI is a measure of prices. Inflation for the purists, for those who understand what’s going on, in my opinion, is the increase in the supply of money and credit out of thin air.

And that’s what we need to keep an eye on. These inflation data that we see are all tinkered with to keep you in the game, tinkered with by government and Wall Street to keep you from protecting your savings. But it’s coming out today.

That should have an impact on the bond market. The 10 year yield is trading around four twenty eight. And I noticed yesterday that someone said, because there’s been a lot of talk that Trump wants to bring down the stock market so that bond yields go down and the cost of financing goes down for Uncle Sam.

But someone noted that the 10 year yield hasn’t gone anywhere while the S&P, for example, is going about down about seven percent. So I’m not sure if that strategy is going to work. I’m not even sure that it is President Trump’s strategy.

It’s people assuming it. So with that, I’m going to wish you all a very good day. Take care.

Bye.