Here is a look at why gold and silver prices are nowhere near their final highs, plus an important reminder.
Print, Baby, Print!
April 20 (King World News) – Joroen Blokland: Since the start of this year, global money supply has been expanding at an annualized pace of 16%.
That is right, a whopping 16%!
KING WORLD NEWS NOTE: This Is Why Gold & Silver Are Nowhere Near Their Final Highs: Money Supply Has Been Expanding At A Staggering 16% Annualized Rate Since The Start Of 2026!
That is the true hurdle rate of inflation if your fiat money is sitting in the bank.
Inflation originally meant exactly that: the inflation of the money supply through creation or debasement, much like the Romans did when they diluted the silver content of their coins. Between the 17th and 19th centuries, money creation itself was the actual definition of inflation, not some arbitrary price index calculated by a government-related statistics office that we use today.
With geopolitical tensions and the AI investment boom dominating the headlines, the unprecedented accumulation of debt has largely fallen off the radar of investors.
Yet, one of the key results of debt accumulation, the continuous money creation to keep liquidity high and the global refinancing machines going, objectively reveals that the mechanics have not changed.
You can talk about the normalization of interest rates and monetary policy all you want, but the reality is simple: it is not happening.
Longer periods of positive GDP growth, rising corporate earnings, and even wars may distract investors for a while, but the era of fiscal dominance has not moved an inch…
Listen to the greatest Egon von Greyerz audio interview ever
by CLICKING HERE OR ON THE IMAGE BELOW.
An Important Reminder…
Otavio Costa: An important reminder…:
The oil-to-gold ratio remains near historically low levels, and the era of cheap energy is likely coming to an end.
KING WORLD NEWS NOTE: DAYS OF CHEAP OIL ARE OVER: Oil vs Gold Ratio Near Lowest Level In History As Oil Begins New Bull Market!
It’s hard to imagine countries not becoming far more aggressive in building strategic reserves after the recent supply shocks.
The reality is that it’s very difficult to get the deglobalization toothpaste back in the tube.
This dynamic creates a structural floor for energy prices that the market still underappreciates.
Crisis Ongoing
Peter Boockvar: Another few days of lost shipments thru the Strait but markets certainly hopeful for an imminent deal anyway with the modest pullback in the S&P futures and a full reopen without threat.
A lot of focus on tanker and shipping rates but air cargo rates have really spiked. According to the weekly figures from WorldACD Market Data, prices rose by another 3% in the week between April 6-12 and are now up 37% y/o/y and higher by 40% from the end of February. WorldACD said this, “The two-week ceasefire agreement this month between Washington and Teheran raised hopes of a lasting settlement of the conflict, although the truce remains fragile and the outlook for peace is uncertain.
Most observers have warned that inflation and elevated fuel costs are likely to persist for some time, even if the current ceasefire holds, and there are increasing concerns that jet fuel shortages and rising costs of jet fuel will lead to flight cancellations and further air cargo rate rises in the coming weeks unless there is a swift resolution to the current crisis. Meanwhile, bellyhold capacity through the Middle East will take time to fully recover, and container lines do not expect a return to pre-conflict flows any time soon, meaning air cargo pricing is likely to remain elevated for some time.”
CONTRARIAN INDICATOR: Extreme Bearishness In Oil Persists
Still no increase in the crude oil rig count in the US in response to higher prices and the oil price drop seen on Friday helps to explain why as drillers don’t want to commit right now to more drilling. The Baker Hughes crude oil rig count fell by 1 rig to 410. Not much of a change from the 407 rigs drilling at the end of February.
Countries To Begin Stockpiling Critical Commodities
Something I’ve been arguing is that even upon the cessation of the conflict and full reopening of the Strait is that there will be an underlying bid for a variety of commodities as countries stockpile inventories for future rainy days, among other reasons, so as not to repeat this current experience. On Friday, the FT reported:
“DR Congo to stockpile critical minerals.”
In the piece:
“The Democratic Republic of Congo will establish a strategic reserve of three minerals, including cobalt and coltan, in a move designed to give the Central African country more leverage over the market for some of the world’s most important metals.”
“The plan is the latest in a series of moves by African countries to gain greater control over their raw materials…The reserve, which will also include germanium and could be expanded to other minerals, builds on previous measures to bolster cobalt prices, including a temporary ban on exports last year followed by a quota system.”
Now, this will be used by African mineral producers to balance the market and “stabilize” prices as they say, sort of their own cartel but imagine the strategic reserves that the rest of the world is going to want to create so no one gets caught short of inventory of key things, like oil too.
https://www.ft.com/content/d0f19c7c-2f5c-4865-a326-e4765bbcec58?syn-25a6b1a6=1
A New Path For Troubled Crude Oil Producers
We’re also going to see in the years to come, as mentioned here, an attempt to build infrastructure and logistics that will bypass the Strait. Over the weekend I read a Bloomberg News article saying “IEA head pitches Iraq-Turkey pipeline to bypass Hormuz.” It said “IEA Executive Director Fatih Birol proposed building a new oil pipeline linking Iraq’s Basra oil fields and Turkey’s Mediterranean oil terminal in Ceyhan to shift the balance away from the Strait of Hormuz, according to Turkish newspaper Hurriyet.”
This is just one proposal but we’re going to see a lot of this, with projects to follow in the coming years and Iran will lose more and more leverage over the Strait.
Roadmap To A Jaw-Dropping $75,000 Gold Price
To listen to Jonathan Haycock discuss $75,000 in this powerful and timely audio interview CLICK HERE OR ON THE IMAGE BELOW.
JUST RELEASED!
To listen to Alasdair Macleod discuss the financial violence that is directly in front of us and how this will impact the gold and silver markets CLICK HERE OR ON THE IMAGE BELOW.
ALSO RELEASED!
Michael Oliver – Silver Price Will Skyrocket To $300-$500 By Summer CLICK HERE.
Haycock – Roadmap To A Jaw-Dropping $75,000 Gold Price CLICK HERE.
The Next 30-60 Days Will Be Hugely Violent In World Financial Markets CLICK HERE.
Gold & Silver Rallying As Open Interest Has Collapsed CLICK HERE.
Gold, Oil And A Worldwide Disaster In The Making CLICK HERE.
Gold Miners Are Leading The Market Once Again CLICK HERE.
Celente Predicts Iran War Global Economic Destruction Will Get Much Worse CLICK HERE.
Historic Short Squeeze, Inflation May Soar Above 10% As Precious Metals Surge But Gold Awaits Key Breakout CLICK HERE.
Michael Oliver – This Is The Key Breakout Level For Gold Mining Stocks CLICK HERE.
For Investors Hunting For The Final Bottom In Gold & Silver CLICK HERE.
Propaganda Aside, Consumer Confidence Just Collapsed To An All-Time Low CLICK HERE.
Oil Reverses Back Above $103 And Transportation Prices Have Skyrocketed CLICK HERE.
World Economic Breakdown Looms As Countries Run Out of Jet Fuel CLICK HERE.
China Continues Buying Large Amounts Of Gold CLICK HERE.
Despite 2-Week Ceasefire, Europe Faces Long-Term Energy Crisis CLICK HERE.
Iran War And The Big Threat To The US Dollar CLICK HERE.
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