Retirement Lifestyle Advocates
As if on cue, silver prices staged a big rally last week, advancing more than 9% from the prior week’s close.
Is a New Gold Standard Imminent?
It seems that the realities of debt excesses are setting in. The 30-year US Government Bond saw yields creep back above 5% last week; mortgage rates followed suit.
The gold-to-silver ratio is now near an all-time high.
The Federal Reserve, despite the central bank’s current posture, will become the lender of last resort, further exacerbating the inflation-deflation cycle.
While massive debt will be an economic drag moving ahead, likely limiting consumer spending, this new investment will be “GDP fuel.”
While every currency in the world is presently a fiat currency, this is a relatively new development in the slowly evolving world of currencies.
Over the first six months of the fiscal year, Federal Government spending totaled $3.6 trillion, up from $3.3 trillion from the same period last year.
Gold rallied 6.61% to new all-time highs, and silver advanced nearly 9% on the week.
The Dow Jones Industrial Average declined 7.86% last week, while the Standard and Poor’s 500 fell more than 9% in what was a very difficult week for stocks.