Massive Inflation in 2018. Buy Gold and Silver. // dollar devaluation collapse hyperinflation david moadel
welcome to looking at the markets with David Modell if you are looking for a
store of wealth a store of value a safe haven asset and you're thinking maybe
just keep your money in cash or hold on to bonds Treasuries that kind of thing I
cannot tell you what to buy or what to sell or what to do with your money but I
would urge you to reconsider I would consider precious metals gold silver
that kind of thing as a much better store of value than the dollar then US
bonds that kind of thing all right and it really comes down to well there a
number of reasons but one of the biggest ones it's the I word inflation and I'm
gonna break it down for you all right let me explain here's a fact one hundred
thousand dollars kept in cash since 1933 is now worth in an inflation adjusted
two thousand dollars that's right so imagine if you kept a hundred thousand
dollars in cash in 1933 with the ravages of inflation that would now be worth
$2,000 that's what its value would be now not
too good that same hundred thousand dollars kept
in gold all this time would now be worth almost five million dollars four point
nine million dollars so you know you you pick your choice which would you rather
have five million dollars of inflation adjusted value or two thousand dollars I
think the choice is obvious all right let me break down my thinking here if
the government and this is not an if this is something that's happening but
if the government continues to print money to pay its debts and we all know
that you know the US debt is in the trillions of course and what is the
government what is the US government doing
about it well one of the things that's doing is printing money printing it
faster and faster and so since the government continues to print money to
pay its debts that leads to rising inflation when they just keep printing
the money and devaluing it so I expect inflation just to continue another
reason inflation is going to continue is we've seen the price of oil going up
recently well the price of oil going up causes
the price of many other things to go up because think about how many products
that we buy depend on oil it depend on shipping and that kind of thing so that
leads to rising inflation once again when the price of so many things goes up
because the price of oil is going up that it devalues the dollar it devalues
you know it makes things more expensive that's rising inflation as well I expect
this to continue so what does rising inflation lead to well when you have
rising inflation the dollar goes down in value and precious metals go up in value
because when the dollar goes down in value and keep in mind the dollar lost
10% of its value in 2017 alone if you just look at a chart of the dollar
versus other world currencies it has gone down quite a bit in the past
several years so with rising inflation causes the
dollar to go down in value that tends to cause precious metals gold silver etc to
go up in value because people don't view the dollar as a safe-haven asset anymore
as a store of wealth a store of value so they move their capital out of dollars
and into precious metals also when the dollar goes the value of the dollar goes
down versus other world currencies then that means that the other world
currencies go up in value compared to the dollar and when other world
currencies go up in value what do they buy with that extra value a lot of times
they buy precious metals around the world
so again precious metals going up in value is a very likely result
the devaluation of the dollar rising inflation also causes central banks to
increase bond yields yeah you see those rate hikes so that they can keep up with
the inflation rate all right bond yields bond yields have
to keep up with an the rate of inflation otherwise they wouldn't have any real
value people wouldn't buy bonds if they didn't keep up with the rate of
inflation and so when the inflation rate goes up that tends to cause central
banks the Fed for example to increase the bond yields which causes bond values
bond prices to go down and in turn precious metals values tend to go up in
that in that environment alright and here's a great quote from Jim Rickards
it does the Fed no good to raise rates unless inflation is going up even faster
as we just discussed that that's exactly when gold does its job of preserving
wealth and I totally agree with that and let's look at a couple charts here all
right first this is from macro trends net and this is dollar versus the gold
over the years over time I'm gonna pull it up here so you can see
the years here ok going way back before 2000 and as you could see the dollar and
gold move inversely to each other they move opposite to each other generally
not every single day ok you might have a day or a week or a month when gold and
the US dollar move together but over time they tend to move in opposite
directions when one moves up the other tends to move down and so if you are
like me and you believe that the US government is going to keep printing
money and the dollar the value of the dollar is just therefore going to keep
going down precious metals again over time tend to move the opposite of the US
dollar so I think the conclusion is obvious from this the last thing we need
is to end up like Venezuela for example ok and this is from goldsilver.com
I want to give credit where credit is due this is the Venezuelan inflation
rate I'm not saying the US is going to end up like Venezuela tomorrow
necessarily or next week but we can see what happens when
inflation gets out of control it can get out of control very very quickly and
that's why you know there's a currency crisis not just worldwide but in places
like Venezuela and gradually it's happening in the United States so what
do you do do you keep your dollars just to have them suffer and have your the
value of your account and your retirement account and your future
suffer at the hands of inflation and at the hands of the central bank's and what
they're doing or do you protect yourself well I say protect yourself again I
cannot tell you what to buy what what to sell what to do I just want to give you
the facts so you can make decisions on your own all right so if you have any
questions if you'd like some help you know putting together a trading plan or
thinking about where to put your assets how to protect yourself you can contact
me at any time my name is David Modell and my email address is David Modell at
gmail.com if you like this video please give it a thumbs up on YouTube and leave
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so you can receive updates on my latest videos thanks a lot I appreciate it and
I'll talk to you again soon