Huge News From The Fed & Trump! If You Own Gold & Silver, Watch Now - Martin Armstrong & Rafi Farber
Summary
Highlights
Both analysts conclude that the global monetary system is entering a transformative period marked by high volatility, financial stress, and declining trust in institutions. They advise investors to focus on physical assets like gold and silver to protect wealth during these uncertain times, with Farber suggesting that triple-digit silver prices are possible if the monetary system continues to weaken and investor demand grows.
Farber discusses the manipulation in the silver market, attributing it not to conscious spoofing, but to the existence of gold and silver futures themselves, which allow for selling more metal than physically exists. He explains how this creates a dangerous potential for a positive feedback loop, where rising prices increase demand, which could lead to the collapse of futures markets.
The discussion shifts to the broader issue of 'confidence' as a key driver for gold and silver, beyond just inflation. Rafi Farber emphasizes silver's potential to outperform gold, given its undervalued status and aggressive momentum when breaking resistance levels. However, he also warns about the market's volatility and the impact of COMEX margin changes.
Martin Armstrong asserts that gold's value is not primarily influenced by inflation, but rather by geopolitical events. He cites historical examples, such as gold's surge during Russia's invasion of Afghanistan in 1979, to support this claim. He also highlights the instability of global debt and the weakening confidence in sovereign debt markets, which are pushing investors towards precious metals.
Armstrong criticizes the sanctions imposed on Russia by the US and Europe, calling them 'brain dead' and 'stupid.' He argues that these actions have sent a negative signal to other nations and have led to an 'economic suicide' in Europe, particularly in Germany, due to climate change policies and the Nord Stream pipeline issues.
Gold's neutrality and global uniformity are highlighted as advantages. However, Armstrong cautions that governments are increasingly attempting to control gold, implementing measures like tracking its origin and destination, and even capital controls during wartime, similar to historical precedents.
The rise of Bitcoin is attributed to its use as a means for individuals to move money out of countries with capital controls, especially in China and Europe. Armstrong draws parallels between current government responses to crises and historical events, noting that governments consistently resort to price and wage controls during times of war.