Inflation is still a problem, the nation’s debt and deficit are soaring, the country is polarized and global tensions are at the highest levels in decades. Given this environment, what should worried investors do? Buy gold, of course.
That’s the opinion of Charles Nenner, head of the market research firm that bears his name. The firm, started more than 20 years ago, sells its research to hedge funds, banks, brokerage firms and individual clients.
One way Nenner differs from other analysts is that he believes gold, stocks, interest rates, and even world-shaking events are cyclical. His analysis tells him that a huge war is looming, and that unpayable debt will continue to explode until America sinks into another Great Depression. But standing at the ready is gold, and a bull market in the yellow metal is about to begin.
To The Rescue?
Nenner believes the dollar’s buying power could be cut in half, and that’s why he expects a “super bull market” in gold and silver when the cycle bottoms out. And he thinks we’re getting very close to that.
As for the market, Nenner thinks the Dow is topping out and is recommending that clients cut their risk in stocks. Moreover, a second Great Depression could “play out again” in 2026 or 2027.
Nenner notes that he’s not the only one worried about what’s happening. The super-rich are also, and are building bunkers that could provide shelter in any catastrophe. And it’s not just natural disasters he’s concerned about; there’s also a danger that domestic terror and war could reach American soil. “Two billion will die in the next global war,” he says, “and the only way we get a body count that high is with nuclear weapons.”
As for the Presidential election in November, Nenner says there’s a good chance Trump will reclaim the Oval Office. However, the problems America is facing are of such a magnitude that any one person will be unable to fix them all. “If you know winter is coming you cannot stop it, but you can get a winter coat.” And in his view, Trump is that winter coat.
Banking On Gold
The World Gold Council (WGC) said central banks continue to buy gold at a near-record pace, this according to a report on Bloomberg. Last year, central banks purchased 1,037 tons, just below the record set in 2022. The WGC said that it expects central bank purchases to exceed that tonnage tons this year. And it’s not just the central banks of major countries. Kazakhstan just purchased six tons, Jordan three, and the Czech National Bank two (its eleventh consecutive month of buying).
The record high Dow has gotten a lot of attention, but there are other big stories. Gold, as noted above, is again in the spotlight and making new highs.
On Dec. 23, 2023, gold made a then all-time high of $2,135.39. The price has subsequently backed off, but since then has resumed its upward momentum. In early March it again made new highs as it approached $2,200. Some analysts warn that the combination of still high inflation, weakness in major fiat currencies, and an assortment of global conflicts will continue pushing gold to new highs.
All of this has not been lost on the central banks, which not only continue to hoard the yellow metal, but are steadily adding to their reserves. And analysts say that their purchases have been gaining steady momentum since 2021.
In early March, gold once again made news highs, presumably because of heightened global tensions, and soaring US debt and deficits. Traditionally, gold has been viewed as a safe haven during times of conflict, as well as during political and economic uncertainty. And with so much of this around now it’s no wonder gold bugs are optimistic about the future.
The Buck Stops…Where?
Anyone who takes a step back to digest the latest business headlines will become uptight if not worse. Just read a few of them:
*The U.S. national debt now exceeds $34.1 trillion, an amount larger than the economies of China, Germany, Japan, India, and the UK combined;
*US National debt is increasing by $1 trillion every 100 days;
*Moody’s, the ratings agency, lowered its outlook on the U.S. Government to “negative” from “stable,” citing deficits and political polarization;
*Republican Senator from Alabama Tommy Tuberville was very blunt in his assessment of America’s economic situation. “The U.S. Government doesn’t have any money,” he said. “We are dead broke.”
CPA Lena Petrova commented about the situation. “People don’t realize what’s coming,” she said. “They hear the US has $34.1 trillion in national debt and just brush it off because they think it has nothing to do with them. But it does, and it doesn’t just affect us. It also affects future generations here in the U.S., and precisely for this reason the quality of life will decline.”
Probably a lot of Americans are unaware of the degree of America’s economic woes and would be shocked if they knew the details. But soon enough they’ll learn about them, because the story is starting to bubble to the surface. In fact, it’s growing to a point where soon enough even the mainstream media will be unable to hide it.
And when details get out, people will begin asking some very tough questions. “I thought the U.S. was the richest country in the world?” “Who is responsible for wrecking this country’s great standing and strength?” “How could our leaders allow this to happen?” Then they’ll demand answers. And when they realize how difficult times the times ahead may be for them and their children, there’s no telling how they’ll react.
Maybe there’s an easy way out of this mess. For example, maybe the U.S. has been secretly purchasing gold over the years and now has a massive stockpile, large enough to reassure skeptical markets. But do you really think so?
Argentinian President Javier Milei is introducing a bill that would punish central banks for printing money to finance government deficits. The bill would imprison any official who ordered central banks to print money recklessly. Given the worsening global economic tensions, Milei’s ideas could easily spill over to other countries. And given rising tensions, his voice most likely will be neither the loudest nor the angriest.
Nenner’s scenario, once outside of the mainstream, is beginning to look more realistic, and a growing number of people are hinting at a future like that. If his ideas catch on with the public, all of us will live more simple, prudent, and affordable lifestyles. The good thing is that the medicine will probably be effective. The bad thing is that it won’t be fun. Ready or not, it looks like it’s coming.
Sources: bloomberg.com; financialsense.com; gold.org; jpmorgan.com; usawatchdog.com; zerohedge
Gerald Harris is a financial and feature writer. Gerald can be reached at This email address is being protected from spambots. You need JavaScript enabled to view it.
