In the latest edition of the Money Metals Midweek Memo, host Mike Maharrey provides an in-depth examination of the economic climate as the United States gears up for another crucial election season. He challenges the narrative often portrayed during election cycles—that this would be the most important election. Maharrey posits that regardless of the electoral outcome, predictable trends including the expansion of government, escalating national debt, and the ramifications of ongoing monetary policy would persist. He emphasizes the idea that sound money, particularly gold and silver, could serve as the most prudent means of safeguarding personal wealth against these broader economic trends.
Maharrey reflects on the historical patterns of federal government expansion that have characterized multiple administrations. He argues that both Republican and Democratic leaders have contributed to the growth of government and the national debt, echoing sentiments that every administration has, in some form, consistently increased spending. Even leaders like Trump, who campaigned on reducing government size, took steps that enhanced federal powers in areas like regulation. Maharrey cautions that those hoping for significant solutions from presidential leadership regarding debt and government size may be misguided. This perspective echoes a broader disillusionment with the political system and its inability to address fundamental economic challenges.
Drawing on insights from America’s Founding Fathers, including George Mason and Thomas Jefferson, Maharrey warns that centralization of power poses inherent dangers. He believes that the U.S. has strayed from its original constitutional principles, which emphasized state sovereignty and limited federal reach. This shift has, according to Maharrey, resulted in extensive overreach, ballooning taxation, and encroachments on individual liberties. He highlights Jefferson’s foresight about the hazards of centralized control, contending that today’s federal government stands as one of the largest in American history, a reality that jeopardizes the freedoms envisioned by the nation’s founders.
Transitioning to the key focus of his discussion, Maharrey asserts that gold and silver emerge as the true beneficiaries of the economic landscape in 2024. Presenting statistics reflecting their substantial price increases—42.4% for silver and 33.7% for gold as of late October—Maharrey signals a clear trend of both metals outpacing major stock indices and commodity markets. Gold, in particular, has reached notable heights with 39 all-time highs this year, mirroring investor confidence in their role as safe-haven assets amidst ongoing geopolitical strife and economic instability. The demand for gold has surged notably, driven by both individual and institutional investments, underscoring its perceived value in these turbulent times.
Maharrey also discusses silver, which while often overshadowed by gold, is garnering speculation due to its industrial demand and role in green energy initiatives. Even though silver remains below its historical highs, its current low price relative to gold, indicated by the gold-to-silver ratio, suggests significant growth potential. The technical indicators reveal a bullish trend for silver as it experiences increasing demand in various sectors, including its use in renewable technologies. With industrial demand projected to enter a supply deficit, Maharrey sees silver as a strong contender for future price increases, establishing a case for careful investment in both metals.
In closing, Maharrey advocates for a shift towards localized governance as a means of curbing federal overreach, emphasizing the importance of state and local action. Drawing from the Tenth Amendment Center’s mission, he promotes the notion that states hold the power to resist federal mandates that contradict their interests. His final thoughts encapsulate the core of his message: as the nation faces an array of economic challenges driven by rising debt and substantial government spending, investing in sound money emerges as a vital strategy for individuals aiming to secure their financial futures. Maharrey encourages listeners to consider precious metals as a hedge against imminent economic uncertainties while providing resources via Money Metals Exchange to facilitate such investments.
