Just an hour ago I was quoted $21.86 to buy one ounce Silver Eagle coins – a near $8 premium! People are scrambling to buy what gold and silver is available as central banks unleash trillions in new currency to stave off a depression.
Max Keiser and Stacy Herbert are back to discuss the end of the debt-based monetary system as we know it. From the suppression of gold to what happens next, Max’s insights always provide a unique take on our current situation.
“This is a moment of self-reflection for the global economy” – Max Keiser
Max explains that the crisis we are in today is due to the financialization of the economy and enjoying 300-400 years worth of consumption today. The two hosts agree the current system is at the end of the road.
“We are seeing the end of a financial system, a debt-based system, a fiat-based system.”
“It was never going to be great. It was never going to be easy. But, you had that insurance, of your gold position, for this sort of situation.”
Keiser goes on to warn,
“There are two parts to the financialization of the world and the increase in debt to many hundreds of trillions of dollars around the world, many hundreds of times GDP around the world, and that is the suppression of gold.”
When Will Gold and Silver Be Allowed to Rise?
“Gold and silver have not been allowed to express their market price. There has been no true price discovery. Because you can’t have a financialization going on, rampant, with hundreds of trillions of dollars worth of worthless debt and paper money, without suppressing the price of gold.”
“Now we are at the point where the fiat money is starting to finally hit the buffers. So, gold is allowed to be valued in the true price discovery as the Comex and LBMA collapse…”
Max believes gold will soon gap up to $2,500 and, ultimately, $5,000 per ounce.
Max and Stacey talk about why today’s situation is unique compared with 2008. As gold miners and refiners shut down, they believe a supply crisis is adding fuel to gold and silver prices.
Finally, Keiser refers to gold, stating that,
“When you need it most, it won’t be there.”
“It’s better to be a year or two early than a day too late.”
Silver Eagle Premiums Reveal State of Panic
In a live chat with a silver bullion dealer earlier today, I discovered they are now charging premiums of up to nearly $8 per ounce on Silver Eagles! This is up from $4 premiums a week ago.
Silver is trading at enormous premiums as supply vanishes amidst panic buyers across North America and Europe. Imagine being quoted $21.86 for a silver eagle when the metal itself is trading just below $14 an ounce! Welcome to the COVID-19 crisis. Gold is trading at $170 per ounce premiums.
Those who waited to buy gold and specifically silver are finding out these metals are a finite resource, highly coveted in times such as these. Unlike fiat currency, people are unwilling to sell or trade their gold and silver. Especially now, as governments race to print trillions in new paper.