No one believes the cry of 'the wolf is coming.' I usually let Peter Schiff's words go in one ear and out the other. He constantly attacks Bitcoin as a scam and nitpicks high-performing tech stocks, pouring out pessimistic rhetoric as soon as he opens his mouth, and the market often views him as a 'broken clock.' But what must be acknowledged must be acknowledged. This time, Schiff is right. The current market conditions are developing according to his predictions.
Gold and silver prices are skyrocketing. This cannot simply be attributed to speculative forces at play. It's a chilling warning sent to the core of our economic system and a silent scream from the market.
Let us think rationally. Investors are globally dumping what is considered the safest U.S. Treasury bonds as if they were throwing away broken shoes. Abandoning the regularly paying bonds and fleeing to the interest-free "non-yielding assets" like gold is a strange phenomenon occurring. This is a paradox that capitalist logic cannot explain. It is a terrifying signal that investors have chosen asset preservation over yield.
Schiff's diagnosis is clear. The rise in gold prices is not the issue. The essence lies in the fact that gold is rising amid the "explosive growth of U.S. national debt." The U.S. government is printing astronomical amounts of bonds to repay debt, but the market is unable to absorb them. No, more accurately, it has lost the will to do so. This means that market participants have declared a "withdrawal of trust" in the core system of the dollar and Treasury bonds.
The market's perspective is sharp. The cold calculations have already been established: "To repay the snowballing debt, ultimately only currency devaluation is possible." The bill for the liquidity feast we have indulged in for more than a decade is starting to arrive.
So, what should we do? The answer is clear: we must abandon inertia to survive.
First, we must redefine "safe assets." The equation "U.S. Treasury bonds = risk-free" has been broken. The surge in gold and silver proves that capital is flowing massively into "hard assets" with no issuer risk. If we only blindly trust investments based on paper currency, we will suffer losses.
Second, we should pay attention to the "feet" of capital rather than the "mouths" of experts. Now is not the time to be swayed by the noise about whether Bitcoin is alive or dead. Huge capital has stopped the yield game and is hiding in the bomb shelters of "value preservation." Going against this massive flow of funds is reckless.
Third, we must be prepared for the harsh sifting of the sands. The era where borrowing money to invest would inevitably lead to increases is over. Stocks lacking substantial themes will fall like leaves in autumn; only assets verified for scarcity and credibility will survive.
Precious metals are usually silent, but they scream the truth in times of crisis. Right now, that scream rings out like an alarm. If we ignore the message due to hating the messenger, we will be helpless in the face of the impending monstrous waves. It is time to rally our spirits.
