TOM CLOUD PRECIOUS METALS UPDATE: U.S. Dollar Troubles Ahead & Are Banks Safe?

In the newest precious metals update, Tom Cloud discusses the platinum market, U.S. Dollar troubles, and is your money safe in banks.  Tom says that more individuals and companies are moving some of their cash out of banks and into physical metals than he as ever seen before.  Americans are becoming increasingly worried about their ability for the FDIC to insure their money at banks.

Tom Cloud discusses why the U.S. Dollar is in trouble, A dollar crash is virtually inevitable, Asia expert Stephen Roach warns:

Stephen Roach, one of the world’s leading authorities on Asia, is worried a changing global landscape paired with a massive U.S. budget deficit will spark a dollar crash.

“The U.S. economy has been afflicted with some significant macro imbalances for a long time, namely a very low domestic savings rate and a chronic current account deficit,” the former Morgan Stanley Asia chairman told CNBC’s “Trading Nation” on Monday. “The dollar is going to fall very, very sharply.”

His forecast calls for a 35% drop against other major currencies.

Tom told me during our phone chat that he believes the industry will suffer from even more substantial shortages of physical gold and silver bullion products when the next BIG WAVE of buying hits the market.  I totally agree.  Tom stated that during late March and in April, he saw more new clients purchasing physical gold and silver than he has seen in quite a while.

The biggest issue that concerns Tom and some of his clients is the safety of their FDIC insured money in banks.  Individuals and companies who hold a significant amount of funds in banks are becoming worried that the FDIC will not have the funds to protect customers when there is a RUN on the BANKS.  I believe this is coming in time.  Especially when the U.S. Dollar gets into trouble.


IMPORTANT NOTE:  There is a reason I sponsor Tom Cloud on my site because I believe he is one of the most honest and upfront precious metals dealers in the industry.  Not only does Tom offer some of the best rates to purchase gold and silver, but also whenever someone sells metals back to him, HE DOES NOT CHARGE A COMMISSION.  The overwhelming majority of precious metals dealers charge a commission to buy back gold and silver.

I challenge you to check for yourself.

Also, if you need to store metal at a secure facility, Tom offers some of the lowest storage rates in the industry.  TOM DOES NOT MAKE MONEY OFF HIS CLIENTS PRECIOUS METALS STORAGE.  The overwhelming majority of precious metals dealers add an additional percentage to store their clients gold and silver.

I challenge you to check for yourself.

Tom Cloud has been in the precious metals business for 46 years, since 1973.  He has a lot of experience in the precious metals industry and understands the gold and silver market better than most dealers in the industry.

If you are new to the precious metals market and had questions, Tom Cloud would be happy to answer any questions.

DISCLAIMER:  While Tom offers information about precious metals, you should not take this as investment advice.  You should contact a professional advisor and or do your due diligence before making investment decisions.  

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29 Comments on "TOM CLOUD PRECIOUS METALS UPDATE: U.S. Dollar Troubles Ahead & Are Banks Safe?"

  1. TruthisYourRight | June 29, 2020 at 9:05 am |

    Now is the time to obtain all the necessities of life. The international criminals media and controlled govts are winding up for the next big wave. Last years beeches are promoted as crowded, and falling corona death,(suddenly start to rise) rate is providing the excuse .
    With each successive wave comes the stripping away of our rights. This legal process is dependant on the peoples consent and the Head of States prerogative in the form of the coronation oath. Thus, the ‘bankers’,(illegal to name) legal system is preserved and they get to stay out of jail.

    Eventually the people will consent to the removal of all the necessities of life and have nowhere to go. Now, its time for their big Reset Promotion. As Abba Eban said, a wise man consents when all alternatives are removed. (A Eban, member of the Knesset, Israel’s Parliament,1959)

    • Strongly agree.

      “Now is the time to obtain all the necessities of life.”

      The question is the priority and how. Food, shelter, clothes and safety come to mind. PM comes later.

    • Yep. I think a big part of the solution is “I will not comply”. Do everything you can to reduce/eliminate your taxes and starve this evil system. I can’t go to the beach? No, I don’t think so. During the coronahoax I did everything as normal – to hell with them. Vaccine? Yeah…. try to force me. Vaccine passport? Don’t even try it. I will barter if necessary, and use gold and silver if I have to. Grow your own food at home, become self sufficient as much as possible – this protects you AND harms the evil system. More people should do it.

  2. Mehmet Çelenk | June 29, 2020 at 9:22 am |

    “Tom told me during our phone chat that he believes the industry will suffer from even more substantial shortages of physical gold and silver bullion products when the next BIG WAVE of buying hits the market. I totally agree.”

    Tom and Steve are right. A serious silver shortage is forthcoming, and there is another very important reason for that, in addition to the greatly elevated demand.

    They re-opened the mines with the very erroneous assumption that the COVID-19 contagion was about to end.

    But the menace had never left the scene, and started to make lots of mine workers sick again, killing some of them:

    A google search reveals substantial numbers of miner deaths due to COVID-19 reported worldwide since February (more than 700 in South Africa alone), and hey, we haven’t even got through the first wave! Second, even third waves are expected. And mine workers are highly skilled, hard to replace personnel, doing a dangerous job. Even if you got a million tons of easily mineable silver in your mine, and have infinite energy (no EROI problem), without mine workers, you get nothing.

    Read: mine re-closures ahead, probably lasting more than the previous ones.

    Elevated silver bullion demand, falling ore grades, energy cliff, COVID-19 trouble, my expectation of a monumental global bond/paper derivatives market collapse, presence of a silver-dependent industry gobbling up 50 tons of white metal every day to survive, possibility of Russia and China stockpiling silver, …

    The day when paper criminals will have absolutely no chance is not far away.

    • DisappearingCulture | June 29, 2020 at 10:49 am |

      Since miners are not old people, their underlying state of health or nutritional status must be poor, as healthy younger people rarely get significantly ill from this virus.

      • I suspect a lot of the miners, even though young, accumulate significant pulmonary disease from inhalation of dust from the mines. Having said that I am quite convinced that there is a huge agenda behind these data. If anything, they are so contradictory that they are essentially meaningless. I suspect that there may be a more contagious strain, i.e., the new G strain, but the morbidity and mortality numbers are all over the map.

        • DisappearingCulture | June 30, 2020 at 4:04 pm |

          For many it is far more of a thrombotic disease than a lung disease.

        • Mehmet Çelenk | June 30, 2020 at 4:05 pm |

          Strongly agree. It is a scientifically proven medical fact that, mine workers are more susceptible to pulmonary disorders including, of course, infections than general population. A miner may not die from his disease, but may well become so debilitated that he is deleted from the workforce.

          And mine workers are not easily replaceable work robots.

    • I don’t think most of the reported “Covid-19 deaths” were actually due to the Covid-19 virus.

    • I have been looking at the dollar to silver ratio, on the US debt clock for a few weeks. it started at 3665 per ounce and steadily climbed to 3753 last friday. monday it is 3632. something is not right.

  3. Peter Starr | June 29, 2020 at 10:11 pm |

    Of course banks are not safe. What a silly question. But then as soon as banks fail, other remnants of our industrial infrastructure will follow. What good is a stache of silver when your next meal is in question. Peak oil is a bitch mistress.

    • “What good is a stache [sic] of silver when your next meal is in question” Answer: an infinite amount of good. No matter how bad things are, there is always some food available. The problem is having real money to buy it.

      Thousands starved during the Great Depression. Not because there wasn’t any food to be had, but because people had little or no money to pay for it. Unwanted food was left to rot in the fields and unsold milk was poured in the ditch.

      In addition, if you have some silver and can pay for food, then the person you pay can buy the things they need, and so on. If everyone had a small “stache” of silver, then perhaps the whole nation would be able to buy many things it needed in a crisis.

      Silver is not just stored value, it is of course a medium of exchange. This could unfreeze the economy in a crisis, and get the wheels turning.

      This idea, that “You can’t “eat” silver” is false. It is a way of thinking conditioned in those who have grown up in the world of fiat money i.e. false money, and the world of unreality, falsehood and utter fantasy that accompanies it.

  4. Just a heads up to all you chart readers and believers in all of this “current data/info”.

    None of it matters. All a rehash of manipulated do-do.

    Anyone here read books? Try Gold Warriors. That will give you something to chew on.

  5. Brant Lee | June 30, 2020 at 9:47 am |

    I don’t know what all is possible to happen with banks and my money, But I don’t want to wait and find out later. Why in the world even leave much cash in the bank at current interest rates losing at least 2% yearly to inflation? We all need to rethink that which we’ve been conditioned to accept. And also, of course, how many faceless people behind the scenes in control do you want to trust?

    I didn’t think there was much downside risk in buying silver at the $15-$16 levels the last few years and there looks to be little risk in paying $20-$22 now. It’s just money you can afford to stash. I was underwater on gold since 2013 but it’s back now with interest paid. That’s the problem with precious metals like watching grass grow- however THAT money I invested into gold 2013 sitting in the bank would have lost me money.

    ON to the next phase (2020 and beyond) of REALLY losing money holding on to cash. Just buy some PM and shut up about it.

    • I bought quite a lot of PMs in 2008 and 2009. My average gold spot purchase price was ca. 900 and silver 13 USD.

      I have be waiting for a good entry point to buy a primary residence. 8.6% of mortgagees reportedly did not pay mortgage in June. 30 millions filed for unemployment insurance. Based on this, housing prices should drop now. However, they are not dropping. I am seriously in doubt if my logic makes any sense, or logic and common sense just have left us permanently. Any comment on buying a house now, or waiting some time (until major default waves come)?

      • All RE markets are local. Study the market you’re looking to buy in. With forebearance in effect on many mortgages, delinquences don’t mean much. The Fed is backstopping everything. Auto loans, student debt, mortgages … You would have thought delinquencies would bring prices down. 15-yr fixed at 2.625% is ridiculously low. If mortgage rates go higher, it will crimp affordability. With the Fed gaming all markets, its a tough call to make though

      • DisappearingCulture | June 30, 2020 at 12:30 pm |

        Yeah I have a few comments.

        *My cousin is a retired bankrupty attorney. He knows a lot about real estate valuations & finances. In addition to managing his own stock portfolio, he owns mining stocks & physical PM.

        *A patient of mine who lives in my neighborhood has been a high-achieving realtor since 1982.

        *Business owner next door is a small mortgage lender.

        I get information from people like this.
        1) The ultra-low interest rates are keeping moderate size house values up in more prosperous areas for now.
        2) You time to get a house in your desired area for a lower fiat valuation is coming.
        3) Related to #2 above, the recession is gaining traction, not healing.

        • Thank you very much for your valuable info. My gut feeling is that lower prices are coming. As Steve has said before, housing prices would go down, and PM prices up.

          • It depends where you go and how much money you have. The area where I live is BOOMING. Out of state buyers everywhere. Full price offers/bidding on properties that are way overvalued. It is a frenzy and I don’t see an end in sight currently. Most all are wealthy or retired who depend on someone else to supply their needs in one way or another. Not sure how it will shake out.

            My plan that was formulated before the last crash was to settle into a business plan that would take advantage of this inflow. It is working for now. The only way it will not continue is if these folks decide to quit spending.

            Then we’ll all be in trouble.

    • Having traveled through Three Gorges on the Yangtze from Wuhan to Chongqing in 1994 just before the dam was started, I confess I almost find a morbid curiosity about the recent flooding and the Google satellite pictures showing the dam is shifting under the water pressure build-up. The dam was not anchored to the bedrock (among other structural defects) just like the dollar was not anchored to gold after 1971. My point is that this is the best analogy I can find when the flood of fiat breaches the financial system. Until it happens, the flooding damage has been kept under reasonable control. But if it suddenly fails, the tsunami will wipe out everything downstream to Shanghai. It could be very sudden or not happen for years.
      So far the dam is holding. Maybe the rain will stop and the dam will hold for now though the wet season. But in the meantime, just like the FED is printing money to shore up the financial system, I suspect the engineers at the Three Gorges Dam are quietly and without notice, releasing water from the overflowing reservoir on to the hapless citizens downstream to alleviate the strain on the dam.

      • DisappearingCulture | June 30, 2020 at 4:11 pm |

        In some countries the catastrophic deaths of tens to hundreds of thousands doesn’t seem to mean as much as elsewhere.

  6. DisappearingCulture | July 1, 2020 at 6:14 am |

    Hey Steve,
    Strong enough spot price close on June to pique paper traders interest?

    Was reading what Clive Maund wrote recently. Not as clear as your explanation of technicals. Seemed to have a lot of “maybes” or “this could happen”. Perhaps just being thorough & a bit noncommittal.

  7. I am absolutely not a historian, and don’t pretend to know world history well. However, from my limited knowledge, Marxists and Communists are trying to take over the US, similar to what happened in and right before 1917 in Russia. I am thinking if the Marxists (funded and lead by Jewish) are actually using so-called racism and violence to achieve their ultimate dream of Communism.

    Politics could play a more important role in our investment decision.

    I am from a former Communist country and very worried about the future of this once beautiful and prosperous country. I am not clear how we should get prepared accordingly. PMs are only a small part of the preparation.

    If we, good guys, don’t rise up and defend liberty, the Marxists would win, and they would take both our PMs and our life.

    • DisappearingCulture | July 1, 2020 at 10:37 am |

      Those who live in big U.S. cities in the news lately, who have weak, spineless, or psychopathic leaders who are soft on crime AND talk about defunding/disempowering police…I’m sorry you have gone through this bullshit and been betrayed by these weak leaders.

      Despite the flaws of a police force in many countries (yeah work hard to get rid of the bad ones), there has never been a case where defunding or demoralizing the police resulted in anything but more crime.
      Get out when you can. The eroding tax base and less police training & patrols will result in your big city becoming a Hell hole.

      The U.S. is a large country. In the suburbs & country, they try that rioting/arson/looting crap in (for example) my peaceful neighborhood and they will be gunned down.
      It doesn’t matter what color their skin is; that’s largely a media orchestrated distraction.
      Unlike Russia in 1917, U.S. citizens own lots of guns, particularly in the suburbs & country. And many were trained in military service exactly how to use them. Lots of practice ranges around here too.
      I know police officers outside the city I am closest too. They fully support law abiding citizens owning small arsenals, not just a revolver or a shotgun.

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