Clearly You Don't Want to Own Stocks and Bonds?

The US stock market, still at historically high bubble valuation levels, is off to its worst start since 1939.

We also continue to see the worst bond market performance start a year throughout this fiat currency era of over five decades running.

Billionaire financial market trader Paul Tudor Jones went on CNBC to hammer home some of the worst financial asset classes when inflation cannot be bottled up nor quickly tamped down.

Silver and gold in fiat Federal Reserve notes had another down week in trading price action.

Silver prices and gold prices have been downward over the last 20 days running.

The gold-silver ratio closes this week at 84.

For those looking to acquire physical bullion, this appears to be an excellent time to add to positions, given these spot price selloffs of late.

Of course, there could be some further downside, but on a long-term price chart, the next major snapback and price runs should reward those who bet on the bullish fundamental factors building (why own silver now, not later).

Meanwhile, the fiat US dollar has shown strength over the last two months versus other competing fiat currencies. Essential to keep the larger macro picture in mind when valuing gold versus different significant global fiat currency values.

For instance, this week, we saw a sharp devaluation trend perhaps only just beginning in the fiat Chinese yuan. A significant economy is suffering from pandemic lockdowns in major city centers and a real estate bubble coming undone. If the fiat yuan continues to devalue at such a historic place, look for financial volatility to continue showing up in western financial markets.

Yuan depreciation tends to signal risk-off sentiment globally: you might recall previous cycles during the first Covid wave in 2020, a deleveraging drive in 2019, the trade war in 2018, and the chaotic devaluation in 2015 coincided with declines in global stock markets.

The recent selloff in the spot gold price denominated in fiat US dollars is also not being shared by other major fiat currencies around the world at the same time.

For example, in China, the gold price has remained stout in the face of their fiat currency sharply devaluing of late.

Similar can be said for the world's second-largest fiat currency devaluing versus gold in euro terms.

And in fiat British pounds, and as well in fiat Japanese yen devaluing against the gold of late.

While this recent trend of the fiat US dollar strength has allowed US bullion buyers to acquire more ounces for their national fiat currency unit, the long-term trend remains intact.

Our customer base continues to heavily swap out unsecured promissory notes for the hardest monies known to humankind (gold bullion and silver bullion).

If you enjoy our bullion-related content, subscribe to our SD Bullion Market Updates.

And as always, to you out there, take great care of yourselves and those you love.

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James Anderson
James Anderson
Senior Market Analyst & Content

A bullion buyer years before the 2008 Global Financial Crisis, James Anderson is a grounded precious metals researcher, content creator, and physical investment grade bullion professional. He has authored several Gold & Silver Guides and has been featured on the History Channel, Zero Hedge, Gold-Eagle, Silver Seek, Value Walk and many more. You can pick up Jame's most recent, comprehensive 200+ Page book here at SD Bullion.

Given that repressed commodity values are now near 100-year low level valuations versus large US stocks, James remains convinced investors and savers should buy and maintain a prudent physical bullion position now, before more unfunded promises debase away in the coming decades...