Operation Oblivion Is Up Next!

Many investors seem perplexed by the sudden increase in the value of precious metals, when in fact, the only thing that should be surprising about it is “what took so long?” The Fed has done a quite masterful job of manipulating the market, the economy, and the American psyche, but unfortunately for everyone – the party’s over. The ether shower that the Fed has poured out to America is running dry, while the current Administration is finally coming to the realization that smoke, mirrors, and fake money, like a shinny object, can only hold your attention for a limited period of time, especially while the real world around you is beating you into submission. The stock market’s swan dive in March was once again curtailed by the Federal Reserve’s printing press and continuing non-existent interest rates.

The coronavirus pandemic has derailed any assemblance of normal supply and demand pressures, which is having the direct effect of increasing prices on basic products and services that remain in demand, namely food, housing and medical care, just to name a few. This “essential” inflation has been effectively postponed to this point, but like I said, the party’s over. Meanwhile, with every traditional investment vehicle providing non-existent returns at best, the Fed and current Administration has seen fit to create a monster in the stock market, by herding investors into a burning building that’s doomed to burn to the ground, because the Fed is all out of water.

Silver hasn’t traded at $20 an ounce since 2010, a ride that started shortly after the 2008 collapse. The response is not at all uncommon. Gold’s rise too is nothing more than an indication that the Fed has lost control. The difference between 2010 and now is an ignored and untreated pandemic, which is sure to prevent an economic recovery rate similar to the one achieved during the last downturn. As a result, continuing unemployment, an eroding stock market, and potentially massive inflation are headed our way. Actually, an eroding stock market would be the best scenario. Unfortunately, I’m afraid the market is in for another swan dive, sudden, across many sectors and 40% to 70% this time, due to the inability of the Fed to prevent it. In 2008, the Fed’s balance sheet grew from $900 billion to $2.25 trillion in six months, which seemed apocalyptic, but on this most recent go-round it grew from $3.9 trillion to $7 trillion in just one quarter!

The stock market has also been etherized lately by far-flung promises of a COVID-19 vaccine, right around the corner. The only thing more absurd than that is believing the country’s kids are going back to school “like usual” (regardless of appropriate precautions) and as a result, the country’s economy is going to snap back to “normal.” There’s not enough ether on the planet to continue that charade. Parents aren’t comfortable sending their kids back to school with an out-of-control pandemic and federal inaction at this point has secured our dismal economic fate. Don’t wait for the music to stop. Protect your portfolio, assets and legacy with the time-tested safety and security of gold, silver, and other physical precious metals. Call the experts at American Bullion, now! Call (800) 653-GOLD (4653).

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