The world financial system is now under immense pressure. Although several factors have led to this point, the situation that appears to be developing in China and abroad seems to be speeding up the process. Yesterday, the markets got a little touch or woke up to global infection and the rapid rapid contraction of the just-in-time supply chain system.
Even if the Dow Jones Index lost 1,031 points on Monday and another 400+ points so far, this is only a minor matter if we consider what lies ahead in the coming weeks and months. With China accounting for 21% of global GDP and delivering a lot of goods, parts and consumables to the planet, a major contraction will affect the rest of the world in a short time.
The precious metals will do what they are designed to … protect wealth
At yesterday’s peak, gold was up $ 40 and silver was up $ 0.45. And all while the Dow Jones Index fell 1,000+ points. I believe that this is a preview of a much larger upward movement in precious metal prices.
Although gold and silver prices lost most of their gains at the close on Monday and today, this was probably due to the profit taking of the supposedly “astute” traders who made some profits. Over time, it will be a distant memory to realize profits in gold and silver trading as the world goes through a transition to owning and trading physical precious metals. Accordingly, physical possession and trading will replace the game of highly leveraged paper pushing.