Gold lifts off to another record as the US dollar is worth less; What about silver?

(Pixabay photo)

Reuters reported the following:

August 21, 2024

Gold hit a record high of $2,531.60 on Tuesday …

The dollar slipping to its lowest this year … https://www.reuters.com/markets/commodities/gold-holds-below-record-high-investors-await-clarity-fed-cuts-2024-08-21/

Gold hit a record on Friday August 16, 2024 and broke that record yesterday, August 20, 2024.

Sputnik News posted the following:

Why is Gold on a Bullish Roll?

August 21, 2024
Gold tends to be seen as a safe haven during economic and geopolitical turbulence, as is currently witnessed by the increasingly bullish trend displayed by the yellow metal.

Gold has been trading at $2,516 per ounce after setting a new record on August 16, when it eclipsed $2,500 for the first time in history. Since last year, the price of the precious metal has soared by almost 30%. …

How West’s mainstream media got it all wrong about gold

The Western mainstream media’s hype about gold losing its status as a safe haven appears to have fallen flat. A cascade of ‘doomsday’ MSM headlines two years ago had pushed the narrative that ‘stronger dollars’ were eating… pic.twitter.com/bVjM69m0Ud

— Sputnik (@SputnikInt) August 19, 2024

Let’s take a closer look at what is driving this bullish trend.

Fed’s Monetary Policy

Gold soars on the prospect of further interest rate cuts by central banks, led by the US Federal Reserve. As a rule, the precious metal’s price goes up when interest rates go down, since lower rates diminish the likely yields, or returns, from bonds and shares.

Investors are waiting for Federal Reserve Chair Jerome Powell’s speech on August 23 at the Jackson Hole Symposium for hints on further rate cuts. …

Economic uncertainty boosts demand for gold. After the release of the weak US jobs report in July, gold prices soared over fears of an upcoming recession. …

Dollar Decline

In anticipation of rate cuts, the US dollar fell by 2.2% against the combined strength of rival currencies, while the yield on the benchmark 10-year US Treasury note sank too, making bullion more attractive.

Central banks have been buying up gold, with net purchasing in H1 amounting to 483 tons. At the same time, their holdings of dollar-denominated assets reached a historic low amid US weaponization of the greenback. Dollar and US Treasury-denominated foreign reserves hit 58.9% in 2024, down from about 70% two decades ago, per a Nikkei-cited report.

China has led the bullion buy-up, with the People’s Bank of China bolstering gold purchases by 30% last year. Gold reserves in China increased to 2,264.32 tons in the second quarter of 2024. India has also stacked up its gold-denominated assets, currently worth $57.6 billion.

Russia’s gold reserves reached an all time high of 2,335.85 tons in the second quarter of 2024, according to the World Gold Council.

As part of the de-dollarization trend embraced by BRICS countries, many other states have been motivated to follow their example to dodge the risks of storing central bank assets in foreign countries.

I have long warned that US sanctions and other policies would hurt its dollar (e.g. watch, from 2018, US Sanctions and Tariffs leading to New World Order?).

The hype from the Democratic National Convention this week has not convinced investors that the US will strengthen its economy to the point that its dollar is more trustworthy.

Of course, gold did not just rise in the past week. Notice something that ZeroHedge posted earlier this year:

‘We Have Liftoff!’ – Spot Gold Takes Out Record High

March 5, 2024

Extending their run of the last few days, spot gold prices just exceeded their all-time highs, topping $2140 for the first time in history…

What is gold pricing in about future Fed action? Real rates dramatically negative? As Luke Gromen noted on X:

“When gold rises in your currency DESPITE positive real rates, the gold market is saying ‘Your government will have a debt spiral if real rates remain positive’.“

As Egon von Greyerz details in his latest note, “we have liftoff”, expect more to come…

All Empires die without fail, so do all Fiat currencies. But gold has been shining for 5000 years …

Luke Gromen in his Tree Rings report puts forward two options for the world economy which can be summarised as follows:

1. Dedollarisation continues, the Petrodollar dies and gold gradually replaces the dollar as a global commodity trading currency especially in the commodity rich BRICS countries. This would allow commodity prices to stay low as gold rises and drives a virtuous circle of global trade.

If the above option sounds too good to be true especially bearing in mind the bankrupt status of the global financial system, Luke puts forward a much less pleasant outcome.

And in my view, Luke’s alternative outcome is sadly more likely, namely:

2. “China, the US Treasury market, and the global economy implode spectacularly, sending the world into a new Great Depression, political instability, and possibly WW3…in which case, gold probably rises spectacularly all the same, as bonds and then equities scramble for one of the only assets with no counterparty risk – gold. (BTC is another.)”

Yes, Bitcoin couldgo to $1 million as I have often said but it could also go to Zero if it is banned. Too binary for me and not a good wealth preservation risk in any case.

As Gromen says, there is a virtuous case and there is a vicious case for the world economy.

But above both cases shines GOLD!

So why hold the worthless paper money or bubble assets when you can protect yourself with Gold! …

And although the CBO forecasts a debt increase of $21 trillion by 2034 to a total of $55 trillion, they expect inflation to stay around 2%!

As I have stated in many articles, the US Federal debt has doubled every 8 years on average since Reagan became President in 1981! https://www.zerohedge.com/commodities/we-have-liftoff-spot-gold-takes-out-record-high

The record price of gold should not come as a surprise to regular readers of this COGwriter Church of God News page.

For example, our free online book, Lost Tribes and Prophecies: What will happen to Australia, the British Isles, Canada, Europe, New Zealand and the United States of America? warned about this:

Many have complained about the U.S.A. “weaponizing” its dollar through sanctions, bank restrictions, and other means.[i] By doing so, the U.S.A. has inadvertently been building up a coalition to push aside the dollar—and this will happen when the timing is considered to be better. European leaders have been working for years to establish a new reserve currency for the world, partially with the intent to remove the U.S. dollar from its position as the world’s primary reserve currency. The fact that Europe would develop its own currency, as well as for that purpose, was predicted by Church of God writers no later than 1971[ii] –which is over two decades before the euro was officially agreed to.

Those in Iran and some of the Arab lands, along with nations such as Brazil, China, and India have discussed plans for the removal of the dominance of the U.S.A. in global trade as well. The former (again current) President of Brazil, Luiz Inácio Lula da Silva, even claimed that eliminating the U.S. dollar’s reserve currency status was one of the reasons that the BRICS alliance (Brazil, Russia, India, China, and South Africa) was formed in the first place. [iii] Others have noted that bypassing the USA dollar is still an object of BRICS—and officially BRICS nations “are currently working on setting up a new global reserve currency,”[iv] which may have gold-backing.[v] The expansion of BRICS (which is in progress[vi]) may ultimately even hurt Australian trade as well as “severely weaken primacy of the US Dollar as an international currency.”[vii]

The Bible clearly warns against cheapening the money supply and encourages having money hold its value (Proverbs 25:4 Isaiah 1:25, Ezekiel 22:18-22). Debt is also warned against (Habakkuk 2:6-8). Yet policies enacted under the Obama, Trump, and Biden Administrations, following certain other administrations, have ignored these warnings.

Destruction is coming.

However, the relationship between debt accumulation and prophesied destruction remains unapparent to many. Because there is a time lag, many ignore that there will be real consequences (cf. Ecclesiastes 8:11; Habakkuk 2:3,6-8). Yet, massive increases of debt are utterly dangerous. …

Gold will set records in U.S. dollar terms.

[i] Jayakumar V. The weaponization of finance threatens the future of the dollar standard. The Hill, March 1, 2022

[ii] Hogberg G. Rising World Colossus. Plain Truth magazine, May 1971

[iii] Escobar P. BRICS was created as a tool of attack: Lula. Asia Times, August 28, 2019

[iv] BRICS developing new global reserve currency – Putin. RT, June 22, 2022

[v] Helms K. Economists Discuss Russia, China Potentially Developing Gold-Backed Currency. BRICS Information Portal, November 11, 2022

[vi] US Responds to Massive BRICS Expansion Effort As Nations Push to Launch Global Currency, Ditch Dollar. Daily Hodl, May 5, 2023

[vii] Hunter M. BRICS Is Becoming The Big Kid On The Block: Implications For Australia – Analysis. Eurasia Review, November 1, 2022

Also, in my 2021 book, Biden-Harris: Prophecies and Destruction, I had the following prediction on pp. 171-172:

Since many are now questioning the role of the U.S. dollar as the world’s reserve currency, more are looking into other currencies as well as gold. Gold will set records in U.S. dollar terms.

And yes, gold has hit record prices in US dollar terms.

When gold goes up in US dollar terms, it also means that the US dollar is worth less.

That said, experience teaches us that gold can also go down in value, so investors should always be cautious.

Yet, we who truly believe the Bible know that gold and silver will have value after the USA dollar has collapsed because of prophecies in Daniel 11:39-43, Zechariah 14:14, and Revelation 17:4 and 18:12,16:

40 “At the time of the end…43 He shall have power over the treasures of gold and silver (Daniel 11:40,43)

14… And the wealth of all the surrounding nations
Shall be gathered together:
Gold, silver, and apparel in great abundance. (Zechariah 14:14)

12 … merchandise of gold and silver, precious stones and pearls … 16 … ‘Alas, alas, that great city that was clothed in fine linen, purple, and scarlet, and adorned with gold and precious stones and pearls! (Revelation 18:12, 16)

4 The woman was arrayed in purple and scarlet, and adorned with gold and precious stones and pearls (Revelation 17:4)

There are no similar statements backing up the future value of paper items, like the US dollar or the British pound (scripture, indirectly, teaches their elimination, for details see Anglo – America in Prophecy & the Lost Tribes of Israel). Daniel 11:24 shows that the leader mentioned in Daniel 11:40-43 will somehow also be accumulating wealth prior to this time, and that may involve gold accumulation (cf. Daniel 11:38). Perhaps to back up a European-supported currency, he also may end up with personal and/or national gold reserves and/or wealth from the Vatican. The Vatican has a vast amount of wealth and is prophesied to be improperly involved with the kings of the earth in the end times per Revelation 17.

Lat me add that gold and silver will, for a time, be considered less than worthless as the prophet Ezekiel warned:

19 They will throw their silver into the streets,
And their gold will be like refuse;
Their silver and their gold will not be able to deliver them
In the day of the wrath of the Lord;
They will not satisfy their souls,
Nor fill their stomachs,
Because it became their stumbling block of iniquity. (Ezekiel 7:19)

Now the above does not happen until well AFTER the Great Tribulation begins and the USA (and its dollar) are gone. But it is also a warning to not put trust in gold or silver.

And we should have even less trust in the value of the USA dollar.

The Bible shows that the Babylonian, European Beast power will control a lot of gold.

Related to that, the Continuing Church of God (CCOG) put out the following video on our Bible News Prophecy YouTube channel:

17:48

Beast Prophecies and European Gold

Gold is so valuable it is called a precious metal. What nation has the most of it? Is there an area of nations with more? Will gold last longer than the USA dollar? Are there properties about the Beast and/or the Antichrist in the Bible that show that the European Babylonian Beast power will amass gold during the time of the Great Tribulation? Are there Eastern Orthodox prophecies that look forward to this? Are there biblical and Roman Catholic prophecies that warn against this? Are European central banks already accumulating gold? Did Swiss America state that some central banks are leaning towards a gold standard? Might the coming King of the North accumulate gold to use to help shore up his currency after the demise of the US dollar? Dr. Thiel addresses these issues and more.

Here is a link to the sermonette video: Beast Prophecies and European Gold.

What about silver?

Silver has long been used as money.

It should be noted that the Bible does show that silver (along with gold) will have value into at least the first few couple of years of the Great Tribulation. Here are some end time prophecies from scripture that help show that:

40 “At the time of the end…43 He shall have power over the treasures of gold and silver (Daniel 11:40,43)

14… And the wealth of all the surrounding nations
Shall be gathered together: Gold, silver, and apparel in great abundance. (Zechariah 14:14)

12 … merchandise of gold and silver, precious stones and pearls … (Revelation 18:12)

Yet, throughout history, governments have often debased the value of their silver currency by making it dross.

This is something that the Bible warns against:

4 Take away the dross from silver (Proverbs 25:4a).

In the USA, its “silver” became “dross” in 1965. And while it has not hit records prices in US dollar terms (nor did any of my books state that it would–though the two mentioned in this post pointed to silver being of vulue), it too has gone up in value. Forbes posted the following:

August 21, 2024

The price of silver today, as of 8:19 am ET, was $30 per ounce. That’s up 0.50% from yesterday’s silver price of $29. https://www.forbes.com/advisor/investing/silver-price/

On August 21, 2023, silver was $22.75 (https://www.bullion-rates.com/silver/USD/2023-8-history.htm). So, it is up over 31% in the past year. But, yes, it too, can go down in value.

One day, silver will have value and the US dollar will not.

Interestingly the USA, not being satisfied with simply making its silver dross, has taken so many steps to make its currency dross through debt, “quantitative easing”, massive deficits, and politically-motivated spending that it pays no attentions to God’s warnings about cheapening the money supply.

We have the following silver-related video:

15:10

Silver, Science, and Scripture

What is silver? What is it used for? How long has it been used? Will it have use in the future? There was an archaeological discovery that concluded that silver was used as a form of payment 3,700 years ago in the Levant (roughly the area of Israel, Lebanon, and Syria)–that was 500 years earlier than many thought it had been used there. Was silver shown to be used even a couple of centuries earlier than that by Abraham in the Bible? What is dross? Did ancient Rome have dross coins? Did the USA switch to dross coins instead of silver in 1965? Does the Bible teach against the use of dross? Does the Bible prophesy that silver will have value into the Great Tribulation? Are there Greco-Roman Catholic prophecies pointing to Great Monarch amassing precious metals and the Antichrist using wealth as bait? Will there be a time when people toss their silver into the street? Are there any radioactive risks with silver? Will gold and silver have value in the millennium? What does the word of God teach is more valuable than gold or silver? What should you invest in? Steve Dupuie and Dr. Thiel address these issues.