When people recommend an investor buys physical gold or silver, they are betting on the following to happen..
A financial market crash from a sector bubble bursting resulting in a dramatic drop in the value of your fiat portfolio. The knuckle heads will go to their brokers and/or withdrawal their investments from their brokerage accounts to get out.
Any wise man worth his salt would tell you that’s a bad money strategy. Alas, as investors of silver flood the banks and ETF’s to request their physical silver promissory notes, the price of silver will astronomically rise, creating a short squeeze on silver – perhaps the biggest squeeze in world history.
In early 2018, JP Morgan released information that 11 of the 17 signals warranting a major market correction had occurred. Some big could be afoot in the financial markets because we have SO much debt in our economy (car loans, student loans, credit cards).
Further warning signs include the steady increase in agriculture prices which are growing faster than they were 26 years ago.
With all this debt, the value of currencies will decline. The question to then ask is: will the real value of the currency cover the cost of food?