It has been and is ,a crazy world out there. We are witnessing history in the making. The FIAT money system is now entering the final stage before it implodes. And the outcome seems rather predictable.
I remember reading a well written piece on gold about 7 years ago (forgot where I found it), where the author stated, that we will see bubble after bubble (real estate, shares, bonds, etc) but in the end, the last bubble will definitely be „a golden one“ meaning an explosion in the precious metals sector, once people realize, that the FIAT currencies are no longer a store of value.
He correctly forecasted, that we will eventually see a deflationary crash and that the predictable answer from all the central banks and politicians worldwide would be to print money like there was no tomorrow.That article helped me to switch most of my portfolio into this sector and especially NST, which already has been a very good decision.
We have now entered this final phase, which is just beginning(you haven't seen nothing yet), and will most likely destroy the FIAT money system.The virus, is not the reason for the upheavals in the financial world, but just the trigger to break the debt overloaded and extremely leveraged financial markets.
We can now witness, that after politicians essentially brought the world economy to a screeching halt and thus endangering millions of people with economic disaster and unemployment that Central Banks and governments are now throwing everything and the kitchen sink at the expected consequences.This will inevitably lead to the total destruction of the underlying currencies. I dont have all the worldwide numbers, but just judging from what has been going on in Europe and the US in the last two weeks, it becomes clear, that after this amount of printed money hits the system, the world will never be the same again as before.Once the easy-trusting masses realize, that FIAT money will not be a store of value any longer because it can be printed into oblivion (which has already been announced by the FED), they will sooner or later realize that the only protection available is something which can not be produced out of thin air, like real assets and especially gold and silver.
Add to that, that the precious metals market is incredibly small compared to the general stock market, or the far bigger bond market, I am pretty sure we will see huge inflows into the gold sector over the coming months and years.Paper markets and the physical markets are already starting to drift apart, many gold and silver shops are out of stock and the premiums for the real metals are surging (especially in silver)
The next best thing, if you can’t get the metals directly will be the stuff in the ground, which are the gold and silver miners.NST is absolutely perfectly positioned to profit from such a move and the purchase of the Super-Pit now looks incredibly well timed in hindsight.
Companies which are able to increase their output in the short and medium term, will soon drown in cash flow and Northern Star can do exactly that. (They could even reopen Pauslons )
To add some icing to the cake, oil prices ( a major cost factor for the miners) are crashing and with an economy that is forced into a full stop, demand for the black liquid will definitely be subdued for some time to come.The likelihood, that we will soon see new ATHs in the global reserve currency, the USD is very high, we have already passed this treshold in basically every other currency in the last weeks.
Essentially what we will now witness is a combination of 1929.2 (worldwide deflation and depression) with a 1923.2 (heavy inflation/hyperinflation) on a worldwide basis.So, in order to survive financially what’s coming, there are no alternatives to real assets and judging from the past, historically, the best performing sector under such circumstances has been the precious metals mining industry. And especially the well managed companies with organic growth opportunities like NST.
Having myself being forced into temporary unemployment with my own business by the government in the last couple of days, I am thankful and glad, that my retirement money is invested here.
The storm is now upon us, stay save and healthy...
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