Financial writer and precious metals expert Craig Hemke says high demand coupled with low supply will unlock the price of precious metals. Hemke says, “Look, the system is a total fraud. This pricing scheme was devised in 1974 as a way to diffuse supply. It was to make supply appear more readily available. . . . So, now it’s finally crumbling because people are finally figuring out it’s a scam. It’s a confidence game. You may think you own gold . . . but what you own is just a promise. . . . So, now they are being called on the carpet to try to supply gold. . . . When the day finally comes that this pricing scheme is shattered and 50 people show up to take possession of the same ounce of gold . . . that’s when we find out what the true price of gold is.”
What’s driving the demand for investors to get their hands on physical gold or silver? Look no further than Fed President Neel Kashkari who recently bragged on the TV show 60 Minutes about “an infinite amount of cash in the Federal Reserve. We will do whatever we need to do . . .” to basically save the banking system and the economy from the virus chaos gripping the nation. Hemke contends, “Since this QE to infinity program began Monday, March 23, the S&P is up something like 17%. . . . Fundamentally, there is terrible stuff, but that doesn’t mean the stock market is going to go down because of all of this cash being created, and it’s going into the stock market and everything else. So, when I tell you the stock market is up 17%, it should be no surprise, but gold is also up 14% and silver is up 25% in the last 14 days. That is going to continue. . . . Central banks will always print cash to stop a deflationary spiral. Instead, in an inflationary spiral, currencies will be devalued and gold and silver will go higher.”
Hemke points out the life cycle of any fiat money creation system always ends up going vertical on a chart. Hemke explains, “You’ve got to constantly keep creating money to service all your existing debts. That’s what this system is, and now we are getting to the exponential phase of it. Just like the Covid virus is now getting to the exponential phase. . . . . It’s the same thing with debt. It’s growing exponentially, so the cash needed to service that debt needs to grow exponentially.”
In closing, Hemke says, “Gold has already made new highs in all other currencies except the dollar, but that’s coming. . . . Gradually, over a period of months, gold is going to go to $2,500 per ounce, and that may be orderly, but there will be a time where it will be disorderly.”
Join Greg Hunter of USAWatchdog.com as he goes One-on-One with gold and silver expert Craig Hemke, creator of TFMetalsReport.com.
Greg is the producer and creator of USAWatchdog.com. The site’s slogan is “analyzing the news to give you a clear picture of what’s really going on.” The site will keep an eye on the government, your financial interests and cut through the media spin. USAWatchdog.com is neither Democrat nor Republican, Liberal or Conservative. Before creating and producing the site, Greg spent nearly 9 years as a network and investigative correspondent. He worked for ABC News and Good Morning America for nearly 6 years. Most recently, Greg worked for CNN for shows such as Paula Zahn Now, American Morning and various CNN business shows.