Think about this: Two years ago silver was ~$20- and gold was $1,885- an ounce. Both PM's more than doubled in price. Why?
Part of the issue is that BRIC's countries are buying all available. From CHATGPS AI,
BRICS countries have been the largest buyers of gold worldwide, with significant purchases in recent years; for instance, China alone added 225 metric tons in 2023. In contrast, non-BRICS countries generally have lower gold acquisition rates, but specific figures for their purchases are not detailed in the available information.
There is speculation that once gold hits $4,000 USD, the US Treasury will back the USD with US Cryptocurrency which will be backed by - drum roll please - GOLD!
The US Treasury holds approximately 261.5 million troy ounces of gold. This includes gold bullion stored at various locations, primarily Fort Knox, West Point, and Denver.
Let's do the math. 261,500,000 troy ounces x $3,900 a troy ounce = $1,019,850,000,000. In September 2023 the value was $491,620,000,000. Think about the value in 1935 ($9.2B) vs. today. Now think about our debt today, $37T. What happens when your net worth exceeds your debt 36 times? Interesting huh?
With all that information, do you think that cryptocurrency in our future?
As outlined in an earlier post, US cryptocurrency is a double edged sword. Many +'s with many -'s.
Bottom-line, the USD is trash at this point. The only way to get back on track is to reduce our national debt to GDP ratio of 122%. Just to get below 100%, the national debt needs to drop south of ~$30T. To be reduced to 50%, which is a good percentage for a healthy economy, the debt needs to be south of ~15T.
Now what happens if we increase GDP and at the same time reduce debt? You got it, our debt to GDP ration drops faster.
We see that is in fact what Trump is doing. Increase investment in businesses in the USA along with reducing debt ala budgeting and yes, shutdowns - reducing the size of government.
Okay, let be clean up this post grammatically and post. at a better location here at
UP. ✌
