Why Smart Money Is Moving to Precious Metals
I’ve been outperforming the market while helping over 100 busy professionals do the same. In this short update, I want to highlight an interesting dynamic and show you how you can profit from it.
The US Dollar lost 96% of its value from 1913 through 2020 and has lost a further 18% since then.
To put things in perspective, it took the Roman Empire ~200 years (from ~70 AD to ~270 AD) to debase its Silver Denarius money by ~95%, and the US managed to debase the dollar by 96% in just the 107 years from 1913 to 2020.
To fully understand the scale of this decrease in value, just look at the visual provided by the Visual Capitalist.
The dollar accounts for 96% of trade invoices in the Americas, 74% in Asia-Pacific, 23% in Europe, and 79% in the rest of the world, which shows that this dynamic will impact the whole world.
How do we position ourselves?
While this is a longer-term dynamic, the acceleration in inflation and slowing economic growth are already creating a favorable dynamic for precious metals in the shorter term.
Gold has been leading the move toward the upside, but these last few days, Platinum and Silver have been screaming higher. I continue to add on any retracements these positions will provide as this is a great place to allocate capital in this last quarter of the year.