Gold Is Still a Buy

SNAKE RIVER, WYOMING – Is gold still a “buy” at current prices?

I’m getting this question often. My thoughts, below…

Camping in the Wyoming Outback

First, greetings from the Wyoming outback…

My family and I are on an epic road trip and homeschooling trip around America.

We’ve just visited the red Canyonlands of Utah. Now, we’re heading to Yellowstone National Park. We’ll be there in a week.

In the meantime, we’re on the road… driving by day and sleeping by the side of the road by night. Today we’re in Wyoming, near the Idaho state line, camping next to the Snake River.

(The atmosphere is smoky here due to the wildfires in California.)

Here’s the Snake River…

And here’s our camp…

The U.S. Government Is Broke…
Even Though No One Admits It Yet

My core thesis is that the U.S. government is broke. It is $26 trillion in debt and it cannot roll over – or maintain – these debts anymore without the Federal Reserve’s money printer.

(In the past, it had help from other nations that were willing to recycle their savings back to the Treasury – the privilege of having the world’s reserve currency. But that came to an end in 2014.)

No one says the U.S. government is broke yet. But they will soon (in the next 10 years). Except they’ll call it a “sovereign debt crisis” or something official-sounding like that.

The Fed’s balance sheet is currently at $7 trillion. The expansion of the Fed’s balance sheet has slowed this summer, but it must soon start rising again… or else the Treasury’s borrowing will cause interest rates to rise, which neither the Fed nor the Treasury will tolerate.

So for now, we’re just waiting for the end game to play out.

Waiting for the End Game in Our
“Trade of the Generation”

As the U.S. government falls further into insolvency, it’ll be a headwind for global economic growth and stock market valuations… and a tailwind for money-printing and currency debasement.

The trade of the decade – or maybe “trade of the generation” would be a better term for it – is to sell stocks and buy gold.

Even though gold recently made a new all-time high, the U.S. dollar started slipping, and the Fed’s money-printing exploded this year, these trends are just beginning.

My guess is gold will be far north of $10,000 an ounce – and the Dow-to-Gold ratio below 5 – by the time the U.S. government completes its bankruptcy and debt restructuring.

So is gold still a “buy” with the gold price near $2,000 and the Dow-to-Gold ratio around 14?

Yes. Absolutely.

– Tom Dyson

P.S. I do not expect the Treasury to “hard” default. Instead, it’ll repay its debts in full but with a watered-down dollar. I’ve been calling this a “soft default.” What are the consequences for your portfolio… and the best steps to take today? I lay it all out in this special video briefing.

Like what you’re reading? Send your thoughts to [email protected].

In today’s mailbag: a question about homeschooling in America… curiosity about the Dyson kids’ writing and journaling practices… and Tom’s recommended gold coin dealers…

Reader question: As a native German, I live in Italy and follow your Postcards with great interest. While reading them, some questions arose for me: What about compulsory attendance for your kids? How will homeschooling affect later education like high school, college, or university? In Europe – as far as I know – kids are obliged to go to school.

How do your kids perceive this kind of life? What are their emotions about it? Always being on the road, much attached to their parents, friends that come into their life for just leaving them…

Anyhow – it is wonderful what you are doing together with Kate. I wish you all more fantastic moments, joy, and whatever makes your adventure pleasant. Happy “heart surfing,” love, light, and blessings to all of you.

Tom’s response: It’s illegal in Germany, but homeschooling has a long history in America. There are so many resources available to us now, especially with the internet. As for later education, we’re not sure. We take one day at a time and trust everything will work out okay. So far, so good.

As for the kids, they don’t seem to have strong opinions or feelings about our lifestyle. They just sort of take everything in stride as if they were living a normal life. I’ll make a video on this subject soon and let the kids answer your question in their own words.

Reader comment: What fun it was to see the photo of your boys looking at the “dinosaur bone beds” at the Dinosaur National Monument, where my husband and I stood in mid-July and marveled at all these bones from SO LONG AGO! You are certainly giving your family an INCREDIBLE experience of seeing the world!!

I wonder if they are journaling or if your Postcards will be a journal in itself. Continued safe and happy travels!

Tom’s response: The kids each have a journal. They write and draw pictures in them. We consider this part of their schoolwork and they do it every day.

Reader question: This question is for the boys: Dusty and Miles, I’m curious to know if you practice your writing skills. Do you by chance keep a journal of your daily impressions?

And this one is for Tom or Kate to answer: I’ve noticed in all the pictures that feature your car and camper, both vehicles appear so clean. Since a portion of your driving is on gravel roads, how often do you keep them looking so nice? Best regards to your beautiful family.

Tom’s response: The kids use their journals to practice their writing skills. They also write letters and postcards to their friends back in Florida.

As for our car, we don’t wash it and it’s extremely dusty. I’m not sure why it looks so clean.

Reader comment: Hello Tom and Kate, where would you recommend buying gold coins? Do you have a couple favorite dealers? I’ve been dealing with Monex, where you have to buy 10 coins at a time. But what an ordeal getting my bank, where the lobby remains closed due to COVID, to wire the money!

Tom’s response: I use Apmex. I’ve also used Gainesville Coins. And Asset Strategies International and David Hall Rare Coins.

Reader comment: As a Canadian, I am sorry to hear of violence to our neighbors from the south. Happy and safe travels to all of you.

After the Dysons visited the dinosaur bones in Wyoming, a reader chimed in with his thoughts on what really happened to the dinosaurs: the Bible story of Noah’s Ark. Another reader agrees…

Reader comment: Just a short note to support the other writer who encouraged you to study what happened with Noah’s flood, not the current, nonsensical evolutionary model that places us at millions and billions of years.

I have 25 books and 25 DVDs on this subject, and a Master of Divinity. But I won’t bore you with a long dissertation here, except to tell you science makes better sense with the Creation and Noahic model, which shows the catastrophic happenings following the flood that buried the dinosaurs you saw. It wasn’t just the flood – the fountains of the Earth sprung up, also creating huge landslides burying many creatures, large and small.

In Alaska and Arizona – and elsewhere – you will see wooly mammoths also buried there. I can take you to places where there are seashells on top of mountains – I even picked up a few. In many instances, what you find archeologically is at inverse order with the evolutionary model.

The Bible model is correct, and we are a young earth, not old, only 10,000-12,000 years max. Download on your Kindle from Amazon the book, A Flood of Evidence: 40 Reasons Noah and the Ark Still Matter by Ken Ham and Bodie Hodge, and read to your kids so they get a balanced view on this, please. It’s only $6.

Better yet, on your way back home someday, swing through northern Kentucky, 40 miles south of Columbus, Ohio, and go through the modern-day replica of the Ark. See also their museum, where you can purchase this and many other good, Bible-based books on this subject. We are going there ourselves this fall.

If Genesis is not accurate – with the account of the Noahic flood – then the story of Adam and Eve – also in Genesis, which tells us how sin came into the world – also isn’t accurate. And if they aren’t accurate, there is no need, then, of a savior from sin, either. That is just one reason why it matters.

Tom’s note: Thanks for writing in! As always, please keep writing us at [email protected] with your questions or comments. Your messages keep us going.