Today I want to talk about 4 trends we are going to see the next five or ten years and why I believe this will drive gold and silver prices to go up.
These specific trends happening in the economy, some have been going on for years, others are somewhat new.
(1) The first trend I believe we are going to see is an alternative payment method to the dollar rising. I believe this is really going to either be precious metals, bitcoin or some combination of the two. If things get ugly really fast, and demand surges for gold and silver, we could see this used. Bitcoin is another possibility and I think that this could come about if CBDCs are forced upon Americans. It’s said bipartisan support is needed, but I don’t believe Republicans, who many criticize CBDCs are going to be able to withstand the pressure. And by pressure, I mean the money from lobbyists and rich donors.
(2) The second trend is the continued rise of remote and hybrid work which will devastate the commercial real estate market. Together with higher interest rates, commercial properties are going to cause a massive spike in delinquencies and defaults as these properties have to be refinanced every few years. Now, there’s a lot to say here really. Will we start to see a repurposing of these buildings say converting them from office space to apartments or condos? I personally believe this will have to happen or something like it, but corporations have been pushing more people back to office and more often. Many say when the recession really hits, the companies will then have the power and we are going to see the majority of hybrid work and remote work disappear.
(3) The third trend we are going to see is a higher inflation target of 3-4%. I have another post on this, but essentially, I think the Fed is not going to be able to squeeze inflation down to 2%. This higher target is something that is going to make people poorer year after year as real wages will far further behind. We’ve seen this happening already, but the bottom line is that Fed is not going to keep raising rates once that political pressure heats up later in the year and there still appears to be a risk of a truly harmful recession.
(4) The fourth trend I see is offshoring more white-collar jobs and jobs being replaced by AI. We’ve seen offshoring beginning in the 90s really with blue collar jobs. But now many jobs are being on-shored and moved to Mexico. AI I think will hurt many Americans as it could replace many workers who have spent years acquiring a skillset. The safest jobs from AI are the trades.
Now coming back to offshoring, politicians and economists will point toward advantages of off shoring. They point out toward things like stock prices and low unemployment. But these measures don’t tell the whole picture, stock prices benefit corporate executives, but they are reducing costs and jobs. But it’s riskier for the average American if one of these overseas operations shuts down or if there is geopolitical tension, the consumer bears the risk. For example, take something like medicine, if a foreign company decides to halt American operations, many Americans might not be able to get their medicine. And this can be said of things like microchips too.
These new trends are here, and I’ll continue to explore these.
Thanks for your time!
