Transcription
Most investors are not aware that they're standing on the edge of a precipice. Most investors believe that as for the last, let's say, 50 years at least, all the bubble assets will continue to grow to heaven. Whether they're stocks or bonds, property, or other paper assets. But sadly, this time they will lose everything. We're coming to the end of a monetary era, and we're coming to the end of a bubble asset era. This will mean that all of these bubble assets, paper assets, will go down in real terms by 50, 70, 90 percent, or even some by 100% like bonds, cuz a a lot of bonds will become worthless, including sovereign bonds.
This is nothing new. It's happened time and time again in history, because when it comes to the end of a monetary era, so much money has been printed, so such big deficits have been accumulated, and the only solution is sadly a collapse of the monetary system, which of course has happened without fail in every single monetary era. We are now looking at the end of this currency era, an era where most currencies have gone down by 97 to 99% in the last 50, 70 years, or even since the creation of the Fed in 1913.
So, let's look at the fate of the currencies. Or Voltaire said in 1729, "Paper money eventually returns to its intrinsic value zero." And this graph shows it clearly. It shows all of the major currencies from around 1910 to today, all these currencies have lost, as you can see, 97 to 99%, and we're waiting for the final 1 to 3% now.
Let's look at the currencies one by one quickly. We take the mark, of course, it collapsed already in the Weimar Republic when it lost all of its value. We'll look at the details of that in a little while. And of course, mark was followed by the yen, the pound, the dollar, the euro, and since 1970, all these currencies have crashed by over 90 95%. As I've been saying that when the 1% left to go to zero, it's going to happen, and that's going to happen in the next few years. It's absolutely certain. Because history doesn't fail. History does rhyme. History does repeat itself, and history will prove that even this time, paper money will die, and this monetary era will finish.
So, anyone who believes that it's going to be different this time, and anyone who has money to protect or investments to protect, will lose most of their money or if not all of their money, especially if it's in paper assets, and that will happen over the next few years.
Let's just look at what happens at the end of a monetary era. This is the example, an extreme example, admittedly, but it is not uncommon in the 1920s. Germany had major war reparations after the First World War. Debts that they could never, of course, repay. The solution was for Germany was to print money, and of course, that destroyed the currency totally, and we see here the example of the German mark going in gold terms, and gold, remember, measures real money, money that is always maintaining its purchasing power. So, the mark price of gold went from 100 in 1919 to over 100 trillion in 2023. Yes, I repeat, 100 trillion. Of course, it was not real money anymore. It was just totally worthless, and nobody really was interested in getting paid in in worthless pieces of paper.
Now, I've explained many times why this admittedly extreme example repeats itself throughout history. And it's for the simple reason that it's really combination of of math and science and it's called exponential growth. So, I show here a stadium which is filled with water. First one drop and then after a minute two drops and then it doubles four, eight, etc. And then the question is how long does it take for the stadium to fill? Some people will say, "Well, it depends on the size of the stadium." Well, it doesn't really because even if the stadium is double the size, it might take another second to fill it. So, the stadium actually fills in 50 minutes, but it's in the final 5 minutes approximately that it goes from 7% full to 100% full. So, this is exactly the same as happens to money when money reaches the exponential stages of money printing. So, this is why you could see, as I've shown before, this previous slide, the mark valued in gold went from 100 to 100 trillion and the biggest move happened at the very end of 2023.
This is what we likely to see in this period when the current monetary era is finishing. We're probably not going to see that level of hyperinflation, but we could see the level of inflation as I saw, for example, in the early 1970s when I was in the UK when we had about 15-17% inflation for up to 7 years, 7 years of inflation at that level. And that is most likely going to happen in the US, in the UK, in Germany, in France, in Japan, and many other countries. And that will totally kill their currencies.
So, let's look Look the other side of the currencies collapse of the currencies going to zero. Remember, they're already down, most of them, by 99%. So, it's not far to go. But, the final bit, as we saw in Germany, is going to be massive. And a lot of people will lose most of their money, as I said before, because they're not going to protect themselves. They're going to continue to invest in bubble assets.
Now, look at just what happened to gold since the money printing accelerated in the 1970s when Nixon had closed the gold window in 1971. At that time, gold was fixed at $35 an ounce, and Nixon basically decided that we can't afford to keep the dollar pegged to gold. Instead, we want to be able to issue unlimited credit, which they started. And the whole world started at the same time. And this is why, as I said, the currency has gone down by 99% since 1971. Now, you can see the the corresponding rise in gold during this era. Gold is actually up 130 times in US dollars since 1971. And, of course, Nixon lied when he said that the dollar will be worth as much in the future as it is today. Well, that was clearly nonsense, because the dollar lost 99% of its value since then. Politicians always lie all the time to save their skin, to buy votes, and sadly, people fall for it, because nobody realized that you they should protect themselves from what Nixon decided to do to end the monetary era at that time.
Now, we look at gold then from 1970 to 1980, when it went up from $35 to $850. And a long correction, 20 years. And then another big move, and we moved into gold at that time, at the beginning of 2000, when all the central banks, as you can see here on the graph, the central banks were selling gold at the very bottom. The UK did, the Switzerland did, Canada sold all of its gold, Norway sold all of its gold. So, very few countries had any significant amount of gold left. And now, as I said, gold has gone up 130 times since 1971, but that's just the beginning.
Why does gold go up? Well, just you can look at the graph of money supply. Here, for example, is the US money supply M2. That's also growing exponentially since 1972. But, you know, let's turn the chart around again and ask, "Is gold really going up?" No, it isn't. You know, it is the value of paper money that is going down. Gold is just constant purchasing power.
So, how far will gold go in this final move of the currencies down to zero? Well, that is the wrong question to ask. People always ask, "What's the gold price going to be at the end of this year, next year? How high will gold go?" It's an irrelevant question, of course. As I said, gold doesn't go up. It's the value of your paper money that is going down. So, there's no use measuring gold or measuring your bubble assets, stocks, or bonds in dollars or in euros or in yen because you're measuring it in a unit that is going down in value every day.
I showed this in another video with the price of a cow, which for 5,000 years has actually cost between half an ounce and 1 oz of gold. That is just amazing. If you think about it, the price of a cow has cost between half an ounce and 1 oz of gold. That is in real money cost very very very similar amount of money for 5,000 years. Of course, normal money, I don't know what the cow cost 5,000 years ago, but I can be quite certain it's gone up millions of times the price of a cow since then.
So, please please don't think about where gold is going to go. First of all, nobody owns gold today. We have been preaching to people for, well, 25 years at least, that you are going to lose all your money if you don't protect it now in the form of physical gold and physical silver. Silver has massive potential also. And if you stick to your paper assets, you are not going to have any wealth of any significance left in the coming years.
So, don't think about how much money you can make or not make if you don't believe in gold in the next few years. Just think about how much money you are going to lose if you don't hold gold and if you don't hold silver. That is the only question you should ask yourself. How much do I stand to lose? If you want my view, and you've heard it already, you are going to lose 90 to 95% of all your wealth if you stick to paper assets or the bubble assets. And that could take 5 years, it could take 10 years, but it's going to start soon as you can see in the graph I showed about the gold price having gone up 130 times since 1971 and having accelerated strongly in the 2000s.
Remember, we bought gold for ourselves and for our investors in 2002 at $300 and gold is now $4,500 and the price, of course, measured in dollar terms, which as I said, is totally meaningless, is going to continue to accelerate. And again, don't look at it that way. Look at it what you are about to lose in your paper wealth if you continue to hold the paper assets that you made so much money out.
Now, when you have a chance, and this gold is still only $4,500, very, very cheap. And silver at $75 is massively cheap also. And you shouldn't buy with one hand, you should buy silver and gold with both hands. And obviously, you got to buy physical, you got to store it outside the banking system. We help clients with that around the world in many countries. And you have to have it in a safe jurisdiction. And of course, have access to your gold, be able to inspect your gold, and have it insured also.
Remember, this is such an important choice for everyone to make. And it's going to be so sad that most people will take the wrong road and actually take the road to perdition. But please, please, please, listen to my advice. And I promise you, you are not going to be sorry at the end of this because you are going to protect your fortune, not for yourself, but also for your family and your future generations if you now convert your paper assets to real assets, and especially gold and silver. Thank you very much.