Finance expert Robert Kientz is warning that geopolitical tensions could rock the fragile American financial system and cause it to collapse – and the best way people can protect themselves is by pooling their assets into safe haven investments like gold and silver.
Safe havens are types of investments that are expected to retain or even increase in value during times of extreme market upset. Gold and silver have for decades been considered as strong stores of value due to being physical commodities whose worth is not impacted by financial decisions made by governments, such as decisions by the Federal Reserve that impact interest rates. (Related: Mike Adams Sermon 65 from the Church of Natural Abundance: GOLD is God's money, while fiat currencies are SHADOW MONEY.)
In an interview on "CapitalCosm," Kientz noted how, after a massive market crash, the financial system of the United States will go through a process of reconfiguration.
"Parts of that reconfiguration has already occurred, you've had all this stuff going on in the background," said Kientz." What will happen is capital will flow from bad areas to good areas… You'll see capital flow that way. You'll see capital destruction here, you'll see massive collapse of businesses, you'll see the debt will have a reconciliation, because the debt cannot be paid."
"Once the currency dies, they're still going to have debt. They're going to have to go through a series of either jubilees or restructurings," continued Kientz, who noted how the government will have to pay for its outstanding debt through a massive sell-off of public assets. "You're going to see local municipalities go bankrupt. You're going to see water systems for sale. You're going to see the electrical grid for sale. You're going to see government-owned assets and fire sales go to private entities."
"It's going to be ugly and nasty, and the people that protect themselves with gold and silver get out of debt. They will be better off," warned Kientz, who added that this process will still be difficult even for people who protect their wealth in safe haven investments.
"It's still going to be long lines at the grocery store, supply chain disruptions, loss of jobs," said Kientz.
Despite some setbacks, the prices of gold and silver have been steadily climbing for months now. Gold has rebounded from a short dip in prices following investors shying away from gold when the Bureau of Economic Analysis released its Personal Consumption Index Price Index report that showed gold values missing analyst expectations.
As of press time, the spot price for an ounce of gold is $2,624, a strong rally from a five-week low. Gold is expected to keep climbing and surge above the $2,650 per ounce level and head towards the resistance at $2,675 to $2,685.
Silver prices are similar, but have been more affected by traders focusing on a pullback from the U.S. dollar and falling yields from U.S. Treasury bond yields.
As of press time, the spot price for an ounce of silver is $29.53, and expected to rise up to the $30 per ounce level – a value that is psychologically important to the market and could see traders reinvest in silver and possibly make its price keep rising.
Heading into 2025, precious metals are projected to remain broadly stable, especially if geopolitical tensions remain elevated.
Gold prices are expected to remain elevated – about 80 percent above their average value from 2015 to 2019 – supported by strong demand for safe haven investments. Meanwhile, silver prices are projected to increase by seven percent in 2025 and another three percent in 2026, as growth in supply lags behind strengthening demand.
Watch Robert Kientz's full interview on "CapitalCosm" as he discusses the preparations being made for potential upheavals in the American financial world.
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