- Gold and Silver Breakout Amidst Buying Surge
- Something BIG is Missing from the CPI Inflation Rate Calculation
- The Vast Riches of the Abitibi Greenstone Belt
Gold and silver prices rose to new highs on Monday after gold closed at an all-time high the previous Friday. As investors and the public wake up to the stickiness of inflation, protecting one’s purchasing power is moving to the forefront. Precious metals outperform when war, uncertainty, and inflation drive the macro narrative. Finally, one historic Canadian gold camp may be poised to reap the benefit of higher gold prices in these volatile economic times…
Rick Rule on the Broken CPI Inflation Rate
Rick Rule explains why the CPI inflation rate calculation is a flawed index.
The Bureau of Labor Statistics (BLS) calculates the CPI as a weighted average of prices in the economy. However, what is included in the basket has changed over the years. Policymakers and politicians removed food and energy, but still argue the basket of goods and services is representative of aggregate U.S. consumer spending.
Rule explains how tax, the largest expense of the typical American household, is not included in the calculation, making it silly…
Watch the entire podcast below:
Gold and Silver Thrive During Uncertain Times
Ray Dalio, one of the most respected investors in U.S. history, warns that the probability of a U.S. civil war is as high as 40%. Telling the Financial Times, “We are now on the brink.”
With the U.S. more divided than ever, and a Presidential election bearing down on the country, gold and silver are benefiting. Dalio also warned wealthy Americans to move some of their assets outside the country as unpredictable events collide, from soaring fiscal deficits to the national debt and other issues.
Business leaders such as Dr. Kirk Elliott, who founded one of North America’s largest silver bullion dealers, stand to benefit from the current economic environment. During Pinnacle Digest’s podcast last month, he explained the economic climate in which precious metals thrive and also when they perform poorly.
Watch the full podcast below:
Miners To Spend Billions Searching for Gold In 2024
All across the world, miners are rushing to make the next great gold discovery. If gold prices remain elevated and head to $3,000 per ounce, as Goldman Sachs has forecast, before year-end, tens of millions and ultimately hundreds of millions of capital will flow into gold miners’ coffers.
If we stand at the beginning of a supercycle, or even a prolonged bull market in precious metals, billions will be spent on global gold exploration. For all it lacks, Canada is home to some of the world’s richest gold mining regions. The Abitibi Greenstone Belt is the country’s most prolific gold mining region.
According to Visual Capitalist, despite roughly 200 million ounces of gold having already been produced in the Abitibi Greenstone Belt, its total gold content, including past production and current reserves/resources, exceeds 300 million ounces. While gold exists in most countries, few are as politically stable and friendly towards mining as the provinces of Quebec and Ontario.
Alex recently visited the world-famous gold camp and was in awe of the history, infrastructure, and mining activity still dominating the region.
Finally, if inflation remains sticky and governments continue to print trillions to prop up their economies, gold and silver prices could double or even triple from these already elevated levels. In this scenario, capital will flow into the miners at a rate not seen in over a decade.
