A Golden Opportunity in 2018 Awaits as Distrust in Our Fiat Based System Accelerates

Sprott Money's picture

A Golden Opportunity in 2018 Awaits as Distrust in Our Fiat Based System Accelerates

Written by Nathan McDonald, Sprott Money News

A Golden Opportunity in 2018 Awaits as Distrust in Our Fiat Based System Accelerates - Nathan McDonald

Americans prepare to sit down, feast and give thanks this weekend for what they have, who they have and the good blessing that they have enjoyed over the past year.

This comes amidst a time period when their email boxes are being flooded with Black Friday specials for trinkets, bobbles and cosmetic goods that will provide a temporary reprieve from the more realistic situation that the vast majority are experiencing: growing debt levels and increased uncertainty.

The fact is, the stock market continues to tick higher, though not to the benefit of the mass majority of individuals who have simply not been able to partake in the "recovery" after the decimation they experienced via the 2008 crisis - a crisis that I contend has simply been papered over and one that will eventually once again rear its ugly head.

At the same time as new record highs in the stock market, we see that debt levels are also at all time highs, breaking new records and reaffirming my previously mentioned belief that the rot within our system continues to persist, silently behind the scenes. It appears that as a mass, we have learned nothing.

I am not trying to be pessimistic, but the fact is, people are rushing out to buy goods this weekend that they don't need, can't afford and ultimately that won't make them any happier.

The only saving grace is the fact that a growing trend continues to manifest. This trend is one that cannot be ignored at this point and one that has central Banksters privately meeting and discussing what they are going to do about it.

This is the flood of fiat money that continues to flow out of the economy and into what people perceive is a more viable, safe place to park their funds. This can be witnessed via the monumental amount of money that continues to move into bitcoin and other alternative cryptocurrencies. This is a trend that has amazed many as the charts continue to go parabolic.

Perhaps these people are misguided, perhaps they are wrong and bitcoin will crash overnight; perhaps they are correct and we are going through a once in a lifetime change. Who knows - I certainty don't.

What I do know however is that bitcoin is not alone in this trend. Art, collectibles, and other items that people perceive to have value continue to tick higher, setting new records as they reach new heights. The fact is, people can feel it in their bones - they know something is wrong with the system and they are attempting to park their money in items that cannot be simply printed out of thin air.

Yet, gold and silver continue to stagnate, floundering as money continues to be diverted away from this sector and into cryptocurrencies or whatever the latest, hottest trend is.

Still, I strongly believe that this is not going to last. I have followed the cryptocurrency community long before it was considered mainstream or trendy. The unknown truth is that there is a strong affinity for precious metals within that class of investors. They constantly compare bitcoin to gold and Litecoin to silver. They respect precious metals, dispute whether they believe it is better or worse than their cherished asset.

Any hiccup, any crash, any disturbance within the crypto space that causes this trend to reverse is going to cause a massive amount of funds to move back into the precious metals space, as people take a portion of their phenomenal gains and park it in an asset class that they believe to be a safe space, i.e. gold and silver.

Yet, cryptos do not need to crash for this to happen (although I
believe it would cause greater results) - not at all. People are finicky creatures and even though bitcoin is incredibly divisible, therefore making the current price irrelevant, this is simply not how people think.

Many will begin to believe that they have "missed the boat" or that the price is "simply too high now". This is exactly why stocks split when the nominal price becomes too high.

This leads to a golden scenario. I believe that the potential for gold and silver to sharply increase throughout 2018 is incredibly high. I believe that this will be remembered as a turning point within the precious metals markets and thus one of the greatest opportunities of our modern times.

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Gold N Glocks's picture

Have you hired back Marc Faber yet Sprott?

Silver Savior's picture

Meanwhile the real gold continues to move East and in the hands of the new superpowers. This is happening for a reason. This is huge!

Silver Savior's picture

I am not worried about crypto itself I am worried about it's future liquidity. Please say something good about it to put me at ease even if it's a half-truth. 

JibjeResearch's picture

You are retarded

Bawhah ahah ahahahahha

 

Paul Morphy's picture

Who is going to buy the bonds which the central banks say that they intend to sell, to shrink their balance sheets?

I'm reminded of the story about a bloke who is contacted by an investment manager advising him to buy a particular stock/share. "This share is going to increase". So the bloke invested $100 dollars. And the share/stock value increases. A couple of weeks later the same investment manager calls the bloke and tells him that his $100 investment is worth $1,000. So he invests another $500, and the share price increases in value some more. The share prices keeps going up and the bloke keeps investing.  After a few weeks, the bloke decides to redeem his investment and he call the investment manager telling him to sell his shares. The investment manager tells him that he can't sell the shares. "Why not?" asks the bloke. "Because you are the only investor in those shares" says the investment manager.

This is where we are today as regards the financial/equity markets. Central banks are the only investors left in this shell game.

 

Yellow_Snow's picture

Sprott Money, You are finally getting it...

HYPERINFLATION is upon us

HRClinton's picture

Sprott. A fucking gold-flogging billionaire...

Looking to preserve his PM empire, and keep his clients (useful fools) from running for the Exit.

Yeah, no angle, no agenda there, right?

Albertarocks's picture

Eric Sprott is the most trustworthy operator out there.  He has $1billion worth of silver in his trust and gets it audited by independent auditors every freaking month.

You might think it's trendy to bash somebody who has made it big time, especially in the PMs sector, but if you're going to try to score points shitting on someone who is a high profile success story why don't you choose somebody who's really a shyster?  I mean it makes you look kind of dumb for bashing one of the greatest and most trusted of all time.

JibjeResearch's picture

1. Stay cryptocurrencies because it's the future.

2. Make sure that total capital of the crypto is above 1 Billion.

3. Buy the lastest generation coins (currently 3rd gen coin is the lastest)

4. Stay away from high price coins.

5. If you buy metals (gold/silver... ) these store of value are genertion Zero relatives to cryptos.  Moving forward, they will have low volitility.  People will continue to move away...

Best Wishes... everyone on ZH deserves to be millionaire...

HRClinton's picture

True. But if I were a libertarian hating Global-lust Zionist, I'd torture them by steering them toward unproductive and unprofitable ventures.

E.g. Cash, PM billion (lazy, and with friction losses at every transaction), and land in the middle of Nowhere. 

Easy to do -- given how fearful, paranoid, disorganized and loner these people are. Sow FUD, and they all run for PM shelter. How predictable. 

JibjeResearch's picture

Hate consumes itself...

I feel you are beyond fully capable... :)

Best Wishes..

USA USA's picture

Seriously, Good Luck with that!

Bemused Observer's picture

Crypto has been a distraction. Any other time, that money would be piling into PM's. Crypto is actually functioning as a stand-in for gold and silver. This is why we aren't seeing the problems that are causing the shift out of fiat. They aren't 'on our radar' because people don't recognize that what they are really looking at here is what would normally be a big move into gold. Psychologically, a move into crypto doesn't set off alarms the way a move into gold would.

But the meaning is the same. Fiat currency, at least the fiat of the developed world, is at the end of it's useful life. Those with any significant wealth in fiat will have to find another place to park it, somewhere it will hold on to SOME of its value. At the moment, they are buying art, real estate, stocks, and instead of gold, they are buying crypto.

Basically, it's a question of what asset you believe has the best chance of surviving, in your custody, with value you can utilize in whatever system emerges from the chaos. Art survives, but custody can be a problem during troubled times, and value may be a problem, as art is an asset that tends to be worth more as a system matures, and is harder to sell to people just starting over. Real estate can be too easily confiscated, and you thrown off your land, and values are not predictable in uncertain times. Stocks? Forget it, they die with the currency, and have zero value after that.

Then there is gold, the traditional go-to asset when trouble is brewing. It has such a long history that there is a definite psychological component to the sudden buying of gold, and the Fed and PTB KNOW this. This is why they work so hard to keep it down, while at the same time they and their mouthpieces insisit it is nothing more than a 'worthless relic'. It is why they are now allowing crypto. They believe, probably correctly, that if they mask the 'gold-run' by encouraging a 'crypto-run', that it won't set off the same alarms that gold would.

Now, I'm not going to argue what you should do about it, it's up to you. Buy gold, crypto, tulip bulbs, whatever. But THE MESSAGE IS THE SAME!...Get out of fiat!

conraddobler's picture

I would argue that what is going on might mimic this but ultimately is not even the point.

Fiat as a concept is here to stay forever because it's simply easier to steal money from people using that than any other means but it will move into the digital realm.

That's why we have crytpo's to steer the move out of cash into digital fiat.

No you can't theoretically make more bitcoin but you can train people to use that, then ban it, then move them into something you control.

You can't pay your taxes with it you have to convert it to whatever currency you owe your taxes in and that is the only lever they need to forever control you.

They say what is money, we don't, we haevn't had that power in a hundred years or more for a reason.

They aren't giving that one back, ever.

SurlysonofaBitch's picture

'Gold, bitchez', like Indian Nation, will return.

Anarchyteez's picture

2018 will be a good year for PM’s.

NSRPF $$$ geo theory to be proven soon? Or disproven?

messystateofaffairs's picture

Suppose BTC crashes, suppose it hits a million and keeps going. Who can know? Buy some, buy some gold and silver, don't buy fiat (except to spend soon) but most importantly don't worry, be happy.

HRClinton's picture

For the 100th time...

Eq. [1]  PM + CC = Mortal Enemy of (((fiat)))

Eq. [2]  PM + CC + Barter = Parallel Economy 

Got clarity?  Or are some of you so retarded, that all you know is PM* v. Fiat.

   * PM has been manipulated by fiat for years. 

Dragon HAwk's picture

Nobody ever talks about when the central banks are overthrown and the Gold gets thrown out to the regular people..  we need some positive Vibes here folks enough of the doom and gloom.

HRClinton's picture

The issue is not Positivism v. Negativity.

The issue is Facts, Truth, Opportunities and Dangers. Etc. 

Endgame Napoleon's picture

There is not enough gold in the Earth for progressives to create an unfair Goldfare system to reward womb productivity.

BobEore's picture

I believe that Nathan believes

///"that the potential for gold and silver to sharply increase throughout 2018 is incredibly high.

I trust he does "believe that this will be remembered as a turning point within the precious metals markets and thus one of the greatest opportunities of our modern times"///

There are, you see... no limits to the power of belief to fuel the fantasies of fanbouys of all types... it is a necessary part of taking in the vibe on sites like this one - to deal with the psychosis in multiple formats daily... such as http://www.zerohedge.com/news/2017-11-24/rt-michael-flynn-case-mueller-g...

a place where - most improbably of all - the furry folk actually BELIEVE ... that by religiously punching the vote meter kindly provided by their lab guardians ... they can and WILL ward off all facts and realities that might otherwise contaminate their sacred safe space in a multiverse full of danger!

and for getting close to a decade now... guys like Nathan have continually advocated for us to drop all guard, all sense of caution, self-preservation... any residual sense of reality even...

and join them in BELIEVING...

that the moonshot is just around the corner, from the coiled spring and the beach ball which has been held under water for so long, that it has deflated itself.

I believe. He believes. We believe... that someday..../...../your fave fantasy goes in the space provided!

Hell ya!

ZeroLounger's picture

Dude, seriously.....the Molle destroyed your brain. Ya might wanna keep your yap shut.

BobEore's picture

Err...

you appear to be confused... as that would seem to be YOUR wish... not mine.

Unfortunately for you... not likely to be comin true. But by all means - do share your glue sniffin experiences with us meanswhile genius!

SunRise's picture

Thanks!  Now I know what you believe.

Pearson365's picture

And yet 1980 highs never happened, right?  It's different this time, right?

DownWithYogaPants's picture

Gold seller says buy gold !!!

Alert the press!!!

BobEore's picture

Ahhhhh!

A budding goldbygg with newly hatched rhetorical skills dying to be used...

or abused... in service to the cause!

Err... 1980 highs you say? Never happened? Oh my...
what happens when you load a straw man into a baset of logical fallacies, and then tip the whole thing over by tiptoeing thru tulips of the

Dutch Mania kind?

Halfbacked geopolitical reflections lacking the grounding in facts and figures which used to be part of the general populations' everyday awareness.

P>S> the 'highs' of late 79 early 1980 were a direct result of the panic buying of gold on the Swiss and other markets by an Iranian "Revolutionary" gubberment which had just become aware that the USA had "frozen"... aka "stolen" all of it's gold reserves, which the Shah had stored in the care of...

the usual suspects.

Thanks for the lead in to my favorite topic chumpster!

https://storify.com/SuaveBel/gold-for-oil-oil-for-blood-part-nine

See ya at the afterparty... it's 1980... all over agin!

Pearson365's picture

Ok.  I'll just try to forget that my father bought gold at $50 and then sold it at $800 and then bought 10 houses.

BobEore's picture

Why forget about it? It's a great story!

You seem to be stuck on the past...

much more interesting would be for you to tell us of your plans - and strategies - to duplicate the ol mans' success...

in the present moment.

Pearson365's picture

There's no present moment.  It's a future of relative asset values.  It's very unpredictable.  Meanwhile wealth preservation.

BobEore's picture

While it's impossible to KNOW for sure what that jumble of jargon is supposed to really MEAN...

it's "relatively" safe to say ... that it's an attempted rationale for why ...

it's best for goldhuggers to stay locked on the glories of past victories... and tune out the sound of the

"present moment"... when an army of would-be "winners" went into the sunset as roadkill along a highway to hell which was supposed to be the route of their 'victory parade.'

Back up the truck(s)and remove all those decaying limbs and disparate body parts!

"There is no present moment"....
ahhh
the sound of one hand flapping... how suitably enigmatic an epitaph..

Pearson365's picture

Crypto junkies say buy cryptos.  Alert the press

HRClinton's picture

Capital Flight to safety. What to pick, what to pick?

   Centrally manipulated PM?

   Vs.

   Freemarket Decentralized Crypto Currency (CC)?

Gee, I guess the people of the world have decided.

Got clarity?  Or just stubbornness and bitterness? 

Endgame Napoleon's picture

You’ll have to pay the MSM to deliver the message. They charge extra for interrupting their sex gossip segments.