Silver is at 39 despite nothing happening yet

If you just read news articles and put your blinders on, you would think the economy and job market are strong. If you take two seconds to examine the actual situation, things are not going well. Look at any of these job reports and you will see a clear pattern: we are creating government and healthcare jobs with little else. Both the unemployment and CPI calculations are designed to underreport. We are pretending that inflation is GDP growth. The housing market is still somehow defying gravity despite 6 months’ supply and record high prices.

All of that being said, perception is reality. Many people (especially boomers) have no idea how bad things really are and only see the stock market going up. Until the talking heads on television tell them that things are bad, they won’t believe it. People in the know are using this period to stack safe-haven assets before the mania.

Once the housing market inevitably rolls over, it will start a new fear cycle. That sentiment will bleed into the stock market, and the job market is already in the tank. The completely irrational greed that drove us to this cliff will push us over it. Gold and silver will definitely fall in the initial stages, which presents a buying opportunity. The Fed will have to cut rates and print to respond, which will fuel the precious metals market due to inflationary fears. Banks are allowed to have zero reserves, and we, the taxpayers, will bail them out again. I think we will be shocked at the new all-time high for silver, but I am dreading what things will look like when that happens.