Hi,
Let’s be blunt about it and not beat around the bush – Europe is in serious trouble. This is an issue for everyone around the world due to the global markets being heavily entangled with one another because of the rapid expansion of the derivatives market. Energy prices in the Eurozone are skyrocketing and citizens are struggling to foot the bill due to an equally rapid decline of their national currency’s purchasing power.
Silver and gold are primed to take centre stage and reclaim it’s rightful place as real money… Why is that? Because the response to major energy producers in Europe warning they are about to go belly up was exactly what we had expected; more money printing. As interest rates rise the collateral these big companies owe for betting into the future rises as well putting them in a crunch due to much of the money existing today being digitally tied up in other derivative trades. The liquid cash to pay off these debts just isn’t there. As different European governments have announced another major bailout potentially in the TRILLIONS of euro – the euro is set to face unprecedented devaluation heightening the urgency to hold real assets like silver and gold. As mentioned before, crises like these have a tendency to cause a contagion that spreads to markets across the world. Just remember, the 2008 Great Recession that crushed western nations manifested in Japan the year before as major players dumped risk-on assets and rushed to risk-off assets like precious metals and other commodities that held real tangible value.
This time around, the canary in the coalmine may be a country within a country, the smallest country in the world in fact, Vatican City. What many people do not know is that Vatican City is its own country in the heart of Rome, Italy. Recently, the Pope did something Vatican City leadership has not done since the establishment of the Institute for the Works of Religion (IOR or Vatican Bank) in 1942, Pope Francis ordered the Holy See and all connected entities to move all financial assets back to the Vatican Bank by September 30th, 2022.
So, is it just mere coincidence that during an impending financial collapse Pope Francis has made this decree? The claim is that housing all the assets in one centralized location would give the IOR better control over these assets limiting corruption. However, the Vatican Bank has been riddled with scandals since its inception and has been largely used as an offshore bank during wartimes due to it falling under no government rule. Adding to the suspicion of timing – over the last year the bank has seen its income drop over 50% having seen over $44 million in profits in 2020 slip to $19 million in 2021. To many, it appears Vatican City is hunkering down and preparing to weather the storm.
Adding to the financial stress the European markets are facing, the long reigning Queen of England has passed. While this is undoubtedly a time of mourning for many, there are still major financial implications when the head of The Monarch passes. If Queen Elizabeth II were to have passed in London, Operation London Bridge would have been enacted, however, due to the Queen passing in Scotland it is Operation Unicorn that is being used. Both are simply the elaborate plans laid out ahead of time so when the Queen passed, governments could continue to operate. That said, either plan is said to cost the UK government up to $7 billion and cause up to 3 bank holidays with many businesses shutting down.
How this ties into bullion is also something to note. The effects could be immediately felt as right when the news of the Queen’s passing had broke, The Royal Mint’s website had crashed due to a waiting cue that got as high as 11 thousand people. Local dealers around the world also felt the squeeze, as the rush was on to get any bullion with the Queen’s portrait. Going forward, sovereign mints have announced there may be delivery delays as they work to make decisions surrounding King Charles portrait being added onto new coins.
Demand for physical wealth in the form of silver and gold has already been high as citizens of the world realize the glaring differences between paper currencies and tangible assets. The Queen’s passing has only amplified both sides. Demand has further catapulted and supply has tightened. If you want to get your hands on silver and gold 1oz Maple Leaf Coins with the Queen’s portrait during her final year of reign, while simultaneously preserving your wealth – follow the links below. If you are planning to extend your physical wealth then come to buy bullion products at Au Bullion.
