Give the Gift of Sound Money

Well, it's the holiday season again, and I'm not sure where the year 2024 went. Regardless, it's time to celebrate with family and friends. However, this year it's more important than ever that you don't simply provide gift cards and the latest computer games for your family. Instead, treat your loved ones to "the gift that keeps on giving the whole year, Clark."

No, we're not talking about The Jelly of The Month Club. Instead, let's talk about sound money, the value of holding assets out of the fiat reserve world, and why physical metal will serve as your protection against the inevitable monetary regime change.

Understanding Sound Money and Its Importance

If you're a precious metal investor, you already know what a unicorn you are. Very few people in the world understand the principles of sound money, and probably very few in your family do too. So let's start that education this holiday season!

If it were me, I'd begin with the math. At TF Metals Report, we call it "The End of The Great Keynesian Experiment." John Maynard Keynes is "credited" with the creation of the current, debt-based monetary system, and it has been dominant for over 80 years. The problem is the math. At some point, the amount of new fiat cash creation that's needed to simply service the existing debt becomes unsustainable. Debt soars exponentially, inflation accelerates, and paper money is devalued. Though the latest U.S. election results have spurred some optimism that the debt-backed U.S. dollar might begin to slow its devaluation, the math suggests otherwise.

The Looming Debt Crisis and Fiscal Reality

To wit, in a supposedly prosperous fiscal year 2024, the U.S. government still managed to run a fiscal deficit of over $1.8 TRILLION. Additional debt has been added nearly every day since fiscal year 2025 began on Oct. 1, and as such, the total U.S. debt now exceeds $36 TRILLION for the first time.

The situation is so dire that the monthly U.S. deficits now regularly exceed the supposedly frightening annual deficits seen back in the 1980s. Again, the new fiscal year for the U.S. government began on Oct. 1. Below is the net deficit for just the first month of the new fiscal year—$257 BILLION!

Look closely at that chart above. Do you see the "Net Interest" expense on the right side? Notice that it was $80 BILLION—for just one month! Multiply that by twelve and you get an annual interest expense of nearly $1 TRILLION. As the total debt continues to grow, and as interest rates remain high or move higher, that total debt service cost will soar to $1.5 TRILLION and beyond. Sometime soon, debt service will become the largest expense of the U.S. government, surpassing entitlement spending on services such as Social Security and Medicare. This is The End of The Great Keynesian Experiment.

The Case for Gold and Silver in a Fragile Economy

So how do you protect yourself from this monetary madness? By taking some of your fiat dollars (or loonies or pounds or euros) and converting them into physical gold and silver. What's the easiest way to make the wisdom of this clear to family and friends? Show them the chart below.

The last time the U.S. managed an actual budget SURPLUS was fiscal year 2001. Below is the U.S. dollar price of gold over the 23 years since. On Oct. 1, 2001, the gold price was $292. As I type this on Nov. 25, 2024, the gold price is $2610. That's an increase of more than 9X. Looked at another way, that's a 9X loss in dollar purchasing power over the last 23 years.

Gold - Monthly Nearest Candlestick Chart

Make Precious Metals Your Go-To Holiday Gift

So let's do it. This holiday season, let's not buy gift cards or iAnything for the kids and grandkids. Instead, let's buy some physical precious metal and give the gift of sound money, critical thinking, and education. Sprott Money makes this very easy, and you don't have to wait for "Cyber Monday" to enjoy the savings. Here's a link to their Holiday Catalog. Look it over. Find the perfect gift, and the nice folks at Sprott Money will ship it to you well in advance of Santa coming down the chimney.

Lastly, it's the holiday season, but the year isn't over yet, so please be sure to keep an eye on this space for more analysis and commentary through December.

Start investing in gold and silver today to secure your financial future!