You can throw out all of the old rules, because they simply don’t apply anymore. The dominance of western financial institutions is faltering, and cracks in the system are starting to show up all over the place. They can’t keep the price of silver from exploding, they can’t stop the price of gold from relentlessly marching upward, they can’t stop the extremely alarming decline of the U.S. dollar, and they can’t stop debt levels from soaring into the stratosphere. The stability that the global financial system has known since the end of World War II is dissipating right in front of our eyes, and that should chill you to the core.
It was expected that the price of gold would smash through the $5,000 barrier on Monday, and that is precisely what occurred.
In fact, at one point it was trading above $5,100 an ounce…
Gold climbed to a fresh all-time high, crossing $5,100 an ounce on Monday and extending its record-breaking run as investors seek the safety of the yellow metal amid rising geopolitical tensions and global fiscal risks.
Spot gold prices gained 2.4%, trading at $5,102 an ounce, before slightly paring gains to last trade at $5,086. Meanwhile, U.S. gold futures for February rose 2.1%, reaching $5,087 an ounce.
This was never supposed to happen.
Just like they had always done, those that pull the strings were supposed to be able to stop the price of gold before it ever got even close to $5,000.
But now it has become apparent that they simply lack the ability to be able to do that.
Of course the price of silver has been going up far faster than the price of gold, and on Monday it exploded higher…
Silver also rallied Monday, with spot prices jumping 4.9% to $107.9 per ounce, also benefiting from industrial demand.
Analysts at Union Bancaire Privée said Friday that prices have rallied on the back of sustained demand from both institutional and retail buyers.
Over the past year, western financial institutions have lost all control over the price of silver.
Those that are still holding short positions are in for a world of hurt.
Global demand for physical silver has soared, and now that there is nothing holding it back there is no telling how high it could go.
One of my readers recently alerted me to something that I wrote about the price of silver a number of years ago…
I have always said that I believe that the price of silver will eventually go over $100 an ounce.
When that happens, those that got in today will be exceedingly happy with their returns.
When I wrote those words, the price of silver was $15.81 an ounce.
If you had invested in silver at that time, your investment would be worth 6 times more today.
At this moment, the price of silver has risen to over $108 dollars an ounce.
Those that have been waiting for a “financial reset” can stop, because one is literally happening right in front of our eyes.
There are some analysts that are convinced that silver is now extremely overbought and that there is no way that this rally can continue for much longer…
Heraeus analysts noted that the gray metal’s move above $100 per ounce last week was largely driven by strength in the gold market as geopolitical tensions surrounding Greenland drove safe-haven flows.
“From a technical perspective, this rally now looks very extended,” they wrote. “The daily relative strength index (RSI) remains above 70, signalling overbought conditions, although currently there is a divergence as the RSI was much higher at the lower price peak in late December. Speculative net long futures exposure has continued to build through January, increasing from 146 moz to 160 moz week-on-week. That said, positioning remains well below the extremes seen in 2025, when speculative net length peaked close to 300 moz, suggesting that there is still potential for further investor engagement.”
I am sure that we will see some volatility up and down in the short-term, but ultimately what is driving the price of silver is a historic imbalance between the demand for physical silver and the amount of physical silver which is actually available…
Persistent supply deficits in silver over several consecutive years, combined with rapidly rising industrial demand from sectors such as solar energy, electric vehicles, electronics and defense, have created a physical shortage in the last 5 years that paper markets can no longer mask.
At the same time, the volume of outstanding paper contracts in London and New York now vastly exceeds the amount of physical silver available for delivery.
In our high tech society, silver has become an absolutely essential global commodity.
There is nothing that western financial institutions can do to change that.
Meanwhile, the U.S. dollar continues to plummet.
The latest leg down is being driven by speculation that the Federal Reserve is “considering coordinated action” to support the Japanese yen…
The U.S. dollar has been in relative free fall since late Friday after it emerged that the New York Federal Reserve had conducted a rare “rate check” with currency traders on the dollar/Japanese yen exchange rate.
The purpose of the move implies that the U.S. Federal Reserve may be considering coordinated action with the Bank of Japan to support the latter’s currency.
As a result, traders began selling the dollar, which is now down more than 2.26% over the past five days against a standard basket of international currencies—an unusually steep decline given the gargantuan scale of the dollar in the global economy. Over the last day alone it lost 0.46%. The yen is up more than 3% against the dollar over the same time period.
Japan is teetering on the brink of financial collapse.
Europe is in big trouble too.
And last year was the worst year for the U.S. dollar in a very long time.
Personally, I don’t see how things are going to get any better for the U.S. dollar any time soon. The rest of the world is steadily losing faith in our currency, we are more than 38 trillion dollars in debt, and economic conditions are rapidly deteriorating. In fact, we just learned that New York City experienced a net loss of almost 5,000 businesses last year alone…
New York City lost nearly 5,000 businesses early last year as employers closed their doors or left for other low-tax states, according to a new report.
The analysis comes as newly elected Mayor Zohran Mamdani pushes to hike business taxes to foot the bill for his agenda.
The report, released Thursday by the Economic Development Corporation, showed more than 3,500 new businesses opened their doors in New York City during the second quarter of the fiscal year but that was offset by a loss of about 8,400 employers. That’s the weakest quarter for business formation since the height of the COVID-19 pandemic, the report’s authors said.
Needless to say, this isn’t just happening in the United States.
Economic conditions are heading in the wrong direction all over the globe, and at a time like this it makes perfect sense for investors to flock to gold and silver.
Those that were wise enough to invest when the price of silver was under 20 dollars an ounce are loving life right now.
But we also need to understand that the system that we all depend upon is coming apart at the seams all around us, and that means that there is going to be an enormous amount of chaos in the days ahead.
Michael’s new book entitled “10 Prophetic Events That Are Coming Next” is available in paperback and for the Kindle on Amazon.com, and you can subscribe to his Substack newsletter at michaeltsnyder.substack.com.
About the Author: Michael Snyder’s new book entitled “10 Prophetic Events That Are Coming Next” is available in paperback and for the Kindle on Amazon.com. He has also written nine other books that are available on Amazon.com including “Chaos”, “End Times”, “7 Year Apocalypse”, “Lost Prophecies Of The Future Of America”, “The Beginning Of The End”, and “Living A Life That Really Matters”. When you purchase any of Michael’s books you help to support the work that he is doing. You can also get his articles by email as soon as he publishes them by subscribing to his Substack newsletter. Michael has published thousands of articles on The Economic Collapse Blog, End Of The American Dream and The Most Important News, and he always freely and happily allows others to republish those articles on their own websites. These are such troubled times, and people need hope. John 3:16 tells us about the hope that God has given us through Jesus Christ: “For God so loved the world, that he gave his only begotten Son, that whosoever believeth in him should not perish, but have everlasting life.” If you have not already done so, we strongly urge you to invite Jesus Christ to be your Lord and Savior today.