The final week of the year begins with silver continuing an impressive month of gains, surpassing 83 dollars for the first time. This represents a historic milestone for the precious metal, which is recording its highest relative value against gold since February 2013. At the same time, platinum and gold are also trending upward, while U.S. Treasury futures are declining, a sign of heightened concern in the markets. Analyst and financial author John Rubino has been warning of an impending monetary crisis for some time, reiterating his assessments in an interview with Greg Hunter on the USAWatchdog.com platform.
A historic record
On Friday, silver recorded a historic price record, the same day gold also reached new highs. According to Rubino, this combination has never been observed before and is a clear sign that the long-anticipated monetary crisis has now begun. "Currencies are being converted en masse into real money in anticipation of the collapse of existing fiat currencies," he states. "This is something entirely different and on a much larger scale because the magnitudes have become overinflated after 70 years of a credit supercycle. What we have seen so far is just the beginning." He notes that both gold and silver have recorded impressive climbs at a time when the global economy still appears to be functioning normally on the surface. "Precious metals are beginning to skyrocket in anticipation of a 'non-normal' event," he underlines.
What history shows
According to Rubino, for now, the story is more about gold than silver, as gold is the haven markets return to when national currencies collapse. Silver, however, has a more complex role, as it is simultaneously an industrial metal. "New industries are using increasing amounts of silver, and there simply isn't enough quantity to meet this demand," he notes. Rubino estimates that the silver rally will be accompanied by intense market volatility. "This is almost certain," he emphasizes. "Silver will likely see sharp fluctuations in the coming days. All available silver is being absorbed, and when it runs out, markets may begin offering only cash instead of physical metal for futures contracts." Such a development, according to him, would essentially mean the end of "paper" markets for precious metals. "We will simply stop trusting them. Why would anyone want a futures contract in a market that defaults on its obligations? This is a very serious scenario that could manifest in the coming weeks."
Possible scenarios
"When you see prices moving this way, many bad things become possible," he warns. As he explains, many investors who had bet on silver's decline found themselves with massive losses on Friday. "Some major player has suffered serious damage. As Warren Buffett used to say, 'you find out who was swimming naked when the tide goes out.' For silver, the tide has gone out." Rubino predicts that silver will "re-evaluate" its price to at least 200 dollars per ounce in the not-so-distant future, while gold could move toward 10,000 dollars per ounce.
At the same time, he points to a new trend: large technology companies bypassing metal markets and turning directly to the acquisition of silver mining companies. "Big Tech players will enter the market to secure silver for years to come. Yes, some are already beginning to buy silver mines," he says. "We might see Tesla acquiring First Majestic or a similar company to ensure its supply. Google, Meta, or Microsoft can pay exorbitant amounts for raw materials if they need them. This is about stockpiling and, in some cases, panic buying." "All roads at this moment lead to higher prices for precious metals," he concludes. "The only way this won't happen is a global nuclear war that wipes out civilization. Excluding that, everything points toward weaker currencies and more expensive precious metals."
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