JP MorganMany analysts have been forecasting a huge deflation with falling gold and silver prices.  I don’t think this will happen.  Gold and silver may have different plans, especially if we see more problems coming out of the European banks.
Investors need to prepare themselves for the coming collapse of most paper assets and real estate values.  I don’t see the oil price recovering anytime soon, so this will put severe pressure on the U.S. oil industry.  Without rising energy production, ECONOMIC ACTIVITY GOES SOUTH… in a BIG WAY.
The idea that investors should only purchase 5-10% of their assets in gold or silver will become a HUGE MISTAKE going forward…

Hudson-Valley-MallFor nearly 25 years I was involved in the creative structuring and issuance of debt.
Real estate loans, municipal bonds, economic growth programs, deficit restructuring obligations, fiscal year adjustment bonds, tobacco recovery bonds, and revenue anticipation notes.  They all had one thing in common, DEBT.

U.S.-Gold-Imports-From-Switzerland-MontlySomething quite extraordinary took place which hasn’t happened for several decades.  While Switzerland has been a major source of U.S. gold exports for many years, the tables turned in May as the Swiss exported a record amount of gold to the United States.
How much gold?  A LOT…

economic dollar collapseThe system is being gutted from the inside out.
Unfortunately, the coming collapse of the U.S. economic and financial system will be orders of magnitude greater than what took place in 2008
Because we just had a subprime housing market in 2008,
whereas the ENTIRE U.S. economy today is SUBPRIME….  Subprime Auto, Housing, Bonds & Energy

gold barsAt some point there will be a Commercial Short Squeeze, which would result in a skyrocketing gold price as the bullion banks scramble to buy back their positions.  
If the situation in the European banks continues to disintegrate, the Commercials may be forced to either ADD more shorts or COVER and buy back their positions…

Silver-Chart-200MA-Trendline-NEWAt some point, an onslaught of traders moving into silver will totally overwhelm the bullion banks and we will finally see that Commercial Bank Short Squeeze from hell.
This will come as the silver price skyrockets, thus making it even harder for investors to acquire physical metal, triggering REAL silver shortages…

Gold-Silver-Percentage-Of-Global-Assets-2015What the hell happens when global investors try to invest 10% in gold or say just 1-2% in silver?
If investors decided to increase their gold and silver investments to equal the percentage in 1980, we would have the following: