The economic, military and political power is shifting from the West to the East, which will lead to a time of turbulence, increasing the value of precious metals, especially silver.
Shift Of Power
The major theme that we’re seeing in the world today is a movement of power from West to East. The recent ouster of the Gandhi family from power in India and their replacement with “a real nationalist” is just one more sign of a significant power shift in the world. India’s new leader, Narendra Modi is “Dedicated to India” a record in business that suggests that he really can deliver, and if he can deliver, it’s going to mean sharply increased competition for resources throughout the world, including silver.
The News In The West Misses Major Events
The recent crisis between China and Vietnam, sparked by the Chinese positioning a billion dollar oil rig in waters in the South China Sea claimed by Vietnam. The story was largely ignored by the Western media. There are joint military maneuvers in the South China Sea between Russia and China….China is really saying, “We control this part of the world and we control it in conjunction with Russia.” The relationship is strengthening, since Russia provides energy and minerals China needs, while China provides Russia with technology and a market.
Russia And China Emerge As World Powers
The decline in US power in Asia and the rise of China and re-emergence of Russia has global implications. Germany, for example, has been hesitant to distance itself from Russia over the Ukraine crisis because, the last thing Germany wants is to cut off a bridge to China, and Russia is that bridge. Russia also provides Germany and Western Europe with “a lot of energy.” Russia is also a land bridge between China and Germany.
The West is not going to make it with this kind of policy. Fracking, for example, benefits the oil industry, while hurting the United States overall. I questioned the belief in the West that we have a lead in technology. When China needs the technology, they seem able to develop it.
Inflation Is Real
The days of 3% or 4% growth coming out of recessions…are gone. Wages aren’t going up. How are you going to maintain an economy in which the typical person is paying twice as much for gasoline compared to five or six years ago when the price of oil is less? The necessities of life are going up in price, while medium incomes are going down, a recipe for disaster.
Protect Yourself With Silver
For this coming time of transition in global power, you’ve got to protect yourself. You’ve got to own the things that are going to rise during the coming transition…gold at 1300 and silver under $20 “is a gift. You’ve got to have some of that gold and silver tucked away….I can’t find anything I like better than silver. It has a long history as a precious metal, paper currencies are being printed at unprecedented rates, and silver is one of the best electric and thermal conductors, as well as being a critical inductor in renewable, green, alternative kinds of energy. It would not surprise me to see silver a three digit metal in the next two or three years.
The information in the Market Commentaries was obtained from sources believed to be reliable, but we do not guarantee its accuracy. Neither the information nor any opinion expressed herein constitutes a solicitation of the purchase or sale of any futures or options contracts.
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