John Butler reports that the Great Depression is upon us and provides insight into the possibility of a silver/gold market crash.

by | Apr 29, 2023 | Rollover IRA




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The Great Depression is a phrase that conjures up memories of economic turmoil, widespread poverty, and financial ruin. While modern economies have evolved dramatically since then, the current global pandemic has caused many to worry that we might be headed for similar economic devastation. One voice that is sounding the alarm bell louder than most is John Butler, a respected economist and investor who believes that the current situation is very similar to the Great Depression and that precious metals such as silver and gold might crash as a result.

Butler is the author of the book “The Golden Revolution”, where he argues that gold has been an essential part of human history and that investors should embrace its potential as a safe haven for their portfolios. However, he is now warning that the current economic climate is fundamentally different from anything we have seen since the 1930s and that precious metals might not be the safe bet that many investors are hoping for.

According to Butler, the core of the problem is the massive debt accumulated by governments and corporations across the world. The global debt-to-GDP ratio is now at an all-time high, with many countries having adopted a policy of low-interest rates and easy credit to spur economic growth. This has led to a speculative bubble in stocks, bonds, and other assets, which could pop at any moment, triggering a massive wave of defaults and bankruptcies.

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Furthermore, the current pandemic has exposed the fragility of supply chains, leading to disruptions in trade and industry. This has fueled inflation, as central banks print money to prop up failing businesses and governments. While inflation might seem like a good thing for investment in precious metals, Butler warns that it could also lead to rising interest rates, making debt servicing more expensive and causing further defaults.

Butler also points out that the existing gold and silver markets are not set up to handle the kind of demand that might arise in a full-blown economic collapse. Most physical gold and silver in circulation is held in the form of coins or bars, which are difficult to trade and come with hefty premiums. The futures markets, where most gold and silver trading takes place, are also prone to manipulation and can be shut down by regulators in times of crisis.

In short, Butler believes that while precious metals might provide some protection in a recession, they are not a failsafe solution. Instead, investors should diversify across a range of asset classes and be prepared for difficult times ahead. This might include investing in real assets such as property or commodities like oil, which are not as subject to the vagaries of financial markets.

In conclusion, John Butler is warning investors that the Great Depression 2.0 might be here, and that the traditional safe haven of precious metals might not be as safe as we thought. While his views might be controversial, one thing is clear: the current economic situation is far from stable, and investors need to prepare themselves for a bumpy ride.

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