Will You Be A Victim Of The Broken Fiat Currency And Debt System Or A Gold And Silver Bull

Investors are being painted into a corner where they have to make a decision that will affect them for many years. They have to choose between being a victim of the broken fiat currency and debt system or position themselves in gold and silver, even better is to own the gold and silver stocks.

The reason that gold is at record highs against every fiat currency, including the world’s reserve currency, is the Death Spiral of Debt. Which is only getting worse due to the unsustainable cost of servicing the debt and the refusal of politicians to slash spending.

The debt crisis is in stealth mode and growing more troublesome by the day. The supply of debt can easily overwhelm buyers and drive US debt lower, and in other major economies, which is likely much closer than most think.

This is all happening while Trump is desperate to have the Fed cut rates because he wants to drive the debt much higher with his big spending bill. His plans are clear, as can be seen in his and Bessent’s desire to raise the debt ceiling by $4-5 trillion or eliminate it completely.

That in itself should get the bond vigilantes, especially foreigners, fearful. US debt is considered risk-free, when it has never been more risky than it is now.

Same for the Wall Street stocks, they are priced for perfection with record high valuations, at a time when Wall Street CEOs can’t give forward guidance due to economic uncertainty and are selling like never before. Wall Street stocks are also very risky.

If the US debt and Wall Street stocks have issues, the same can be said for the US dollar which is under pressure already. The US dollar action is a key indicator that foreigners are questioning their positions in US debt and Wall Street stocks as they have to buy US dollars to buy those assets.

All three are interlinked, and it looks to me like the US dollar is the canary in the coal mine that is signalling that US debt and Wall Street stocks are primed for corrections.

Trump and Bessent want a lower US dollar in order to help exports and the trade deficit, while also saying that they want the US dollar to remain as the world’s reserve currency. Those two goals are incongruent, but they are getting their wish for a lower US dollar which is very bullish for gold, silver and other metals priced in US dollars.

Whether or not Trump and Bessent want more exports and less imports, the reality of the US economy is that it relies much more on imports than exports. A lower US dollar makes exports more expensive for foreigners and imports more expensive for Americans.

Tariffs make the whole issue even more challenging for the trade equation. Trump backed down on his tariff tantrum by having a 90-day pause which is coming to an end in a couple weeks. Trump and his team boasted that countries were lining up to make trade agreements, but that was long on promises and short on actual deals.

While all of this is happening, stagflation is picking up steam, the genie is out of the bottle. Once it gets out of control, which is coming, it won’t be transitory because the Fed has no tools to fight it.

The economy is slowing and inflation is stubborn and a long way from the Fed’s target. Consumers and CEOs are calling for the economy to head toward a recession while inflation gains strength. When they are worried about those issues they become self-fulfilling prophecies as their sentiments affect their business and purchasing plans.

The combination of the Death Spiral of Debt, unsustainable cost of servicing the debt, spending and debt junkies in Washington and stagflation are extremely bullish for gold and silver.

There has never been a better time to be a gold and silver bull. Generalist investors (retail and institutions) are starting to figure out that they need to be gold and silver bulls. For the institutional investors, the ones exposed to gold are leaving their peers in the gold dust.

But, the best play for investors are in the gold miners who are making money hand over first and realize it won’t be long before the silver miners are doing the same. The second quarter of 2025 was the best quarter ever for the average price of gold so the gold miners will have fantastic free cash flow.

Going down the gold stock food chain to the mid-tier and junior gold miners is a wonderful group for investors to be positioning themselves into. They are less well known amongst the generalist investors and are trading at their historical lows.

The gold and silver industry needs more mine developers with high-quality projects, but there is only a small list of them. The same goes for the gold explorers with important discoveries.

While there are many reasons to be a gold and silver bull, the gold supply chain is broken. Majors, mid-tiers and junior miners are struggling to increase their production and replace what they mine.

The broken supply chain will stay that way for many years into the future primarily because the new mine developers with high-quality projects and explorers with important discoveries are in short supply.

At the exact same time that there has never been a better time to be a gold and silver bull, the gold and silver stocks are coiled springs.

I recently wrote a report about the need for the management of gold and silver stocks to leave the Fax Machine era and join the digital marketing era. You can find it here.

My hope is that they join the modern world and get out on the digital marketing airwaves to promote the bullish arguments for gold and silver, plus how important mining is to the world economy and what their companies are working on to unlock shareholder value. Those that do will see their coiled springs released and those that don’t will fly under the radar screen of generalist investors.

The bottomline is that investors have to decide if they want to be victims of the broken fiat currency and debt system, or be bulls on gold, silver and the stocks in those metals. Plus, companies in those metals either get in the digital marketing world to get their stories in front of generalist investors, or be left off their radar screens.

All the best,

Allan Barry Laboucan