In recent newsletters we highlighted how all the world’s major fiat currencies are dying and that gold has continued to move higher in each of them proving without a shadow of a doubt that the remaining purchasing power of these currencies is in fact withering away; and at an ever-increasing pace at that.  Since we last touched on this topic a few weeks ago, the only thing that has changed is it is becoming more and more obvious through March that all of the interest rate hikes that took place over the past couple years by various Central Banks are beginning to run their course and inflation is once again taking a death grip on what the world deems its’ most important currencies.  This, of course, is an incredibly strong case to own gold, silver, and other tangible goods that humans need on a daily basis.  For this newsletter, we are going to attempt to paint a vivid picture in your mind at how daunting the road ahead is for those with full faith in paper fiat currency and no faith in precious metals.  We will present you with various charts outlining why March 2024 will be remembered long into the future as the month that everything changed and gold took center stage.

 

Starting off with something that is of the utmost importance for all human survival, we are going to look at food; specifically agricultural commodities.  When looking back at the first wave of inflation caused by MASSIVE currency printing through stimulus checks, it was energy and food that drove most of the high CPI (Consumer Price Index = Inflation) readings due to how vital both food and energy are to our everyday life.  What is important to understand is that because of this, inflation tracks very closely the increase in agricultural commodities, albeit, historically inflation has lagged about 3-months behind.  Take a look below at what agricultural commodities have done to start the year:

 

The above chart speaks for itself.  It is clear inflation tracks food prices and based on the recent surge of over 21% to start 2024, many financial experts are predicting the second wave of inflation is on route.

 

Looking deeper at what may lie ahead, we turn our attention to how central banks have been preparing themselves.  Historically, central bank asset values follow the S&P 500 very closely.  The reason being is that rapid currency creation/devaluation benefits not only the assets central banks have prioritized holding the last 50+ years since coming off the gold standard, but an increased currency supply also has allowed the western stock market to be inflated along with them — hence the historic correlation.  Although, something seems to have changed:

 

All of a sudden there has been a massive divergence in the value of Central Bank assets and the value of the S&P 500, but why?  The reason is because since increasing interest rates rapidly, debt held by institutions is beginning to drown them due to the massive spike in interest payments on that debt.  This has caused central banks to take on unprecedented unrealized losses, which still heavily impacts their balance sheet even prior to selling these assets and confirming losses.  Further to that, as we have seen over the past 2 years, Central Banks have been switching away from equities like stocks, and focusing heavily on the accumulation of gold.  Again, gold being the only asset in history with precedent to be revalued overnight, and with the United States national debt hitting a record $34 trillion USD just 3 months after hitting $33 trillion USD, there may be an urgent need for another revaluation of gold to cover debts.  The charts below highlight the massive purchases of gold by central banks as well as the jaw-dropping spike in imports of Gold by China exported from Switzerland:

 

Central Banks net buyers of gold 21/25 months.

China’s imports of gold from Switzerland surged nearly 300% in January of 2024.

Our next set of charts will bring validity to our original statement at the start of this newsletter about major currencies dying at an increased rate, as well as March of 2024 being looked back as the moment the second wave of inflation began, and it was gold that shot off the warning flares.  You will see a chart of every major fiat currency relative to gold, and one thing to note is that gold is at a record high in ALL of these currencies taking a MAJOR leg up in March which can be clearly seen on each chart.

 

1. United States Dollar

Jump in March of 2024 in USD to record high | Yearly increase of 12.94% USD/oz

2. Japanese Yen

Jump in March of 2024 in JPY to record high | Yearly increase of 28.06% JPY/oz

3. Euro

Jump in March of 2024 in EUR to record high | Yearly increase of 13.05% EUR/oz

4. British Pound Sterling

Jump in March of 2024 in GBP to record high | Yearly increase of 9.86% GBP/oz

5. Australian Dollar

Jump in March of 2024 in AUD to record high | Yearly increase of 15.23% AUD/oz

6. Canadian Dollar

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