November 21, 2019
The Federal Reserve continues to pump liquidity into the markets, rapidly expanding their balance sheets and flooding the system with cheap money.
This comes in spite of the fact that they say the markets are currently "healthy" and that all is good for the time being.
Many may be lulled to sleep and put to ease by this double-speak. However, there are many others around the globe who are not viewing the current state of affairs through rose-colored glasses. These people are doing the smart thing, preparing for the inevitable crisis that is currently brewing beneath the surface.
Easy money and quantitative easing have kept the markets artificially inflated for the last few years, leading to a booming economy for those who have had the luxury of taking advantage of this scenario. Others have been left in the dust, languishing and never fully recovering from the 2008 crisis, which has only been papered over.
Adding to this problem is the fact that we are currently living in a period of great geopolitical unrest, even if most people in the West are largely unaware of the incredibly volatile position the world now finds itself in.
Trade wars are commonplace, as the old norms of trade continue to break down. President Trump has taken a sledgehammer to past traditions as he attempts to establish his "America First" policy, in hopes that it will place the United States in a much stronger position in the long run.
Whether or not you believe this to be working largely depends on which side of the political spectrum you find yourself. These sides seemingly grow further apart with each passing day, largely driven by the constant negative and incredibly biased coverage coming from the Mainstream Media.
While the West largely remains asleep at the wheel—happily plowing their hard-earned fiat savings into a ballooning stock market and ignoring the vital protection of precious metals in these precarious times—others around the world are waking up and taking appropriate measures.
Countries such as Russia and China have been steadily and consistently accumulating precious metals while exiting their U.S. dollar positions.
Collectively, both Russia and China combined have already bought a staggering 251 tonnes of gold in 2019 alone! With the former’s gold reserves now estimated to be at $109.5 billion, this makes them a true juggernaut in the precious metals arena.
Other countries, such as India, Poland, Hungary, Turkey, and many others have also been accumulating the king of metals, steadily adding to their gold reserves while exiting out of their USD reserve positions at the same time.
Now we can add one more name to that list. Serbia recently announced that they have been buying gold bullion, with their Central Bank being instructed to do so by their President, Aleksandar Vucic.
As reported by Russia Today:
"Central bank Governor Jorgovanka Tabakovic said the country paid about $434 million for the gold it bought last month, or $1,503 an ounce. Tabakovic said the acquisition is the latest in a series of moves to shore up financial stability by changing the structure of foreign debt and increasing the share of dinars and euros."
President Aleksandar Vucic gives his reasoning for entering into the precious metals space:
“I think we’ll continue doing that because of what we see in which direction the crisis in the world is moving.”
As indicated, he can see the incredible uncertainty that the world currently faces and is attempting to prepare his country financially as best as he can, adding 9 tonnes of gold reserves last month.
This expands Serbia’s gold reserves by almost 1/3rd in just one month, bringing their total reported reserves to 30 tonnes of gold bullion.
Eventually there will be a breaking point, in which the physical markets can no longer handle the demand from these countries wishing to expand their gold reserves and protect themselves.
At this point, the floodgates are going to be kicked open and the dam that has been artificially holding precious metals back will break, sending prices catapulting higher.
When this day will come is unknown, as the "powers that be" have already proven just how capable they are at keeping a lid on gold and silver prices. However, I have no doubt that the day will eventually come.
Until it does, enjoy the discounts and keep stacking, knowing that eventually you will be handsomely rewarded.