Submitted by QTR's Fringe Finance
Friend of Fringe Finance Lawrence Lepard released his most recent investor letter on Friday.
For years, I have been posting Larry’s take on the economy and gold and silver - and featured him on my podcast - because I believe he sees the state of the economy and finance in general accurately. I think his letter today - as gold and silver continue to break out and the economy gets closer to a breaking point - is a more important read now, than ever.
Larry was kind enough to allow me to share his thoughts heading into Q4 2024. The letter has been edited ever-so-slightly for formatting, grammar and visuals.
This is Part 2 of this letter with Larry’s take on gold and silver.
WHAT IS DRIVING GOLD HIGHER?
As the chart below shows, gold broke out from a three-year ceiling of roughly $2,070 per ounce, earlier this year in March. Once it pierced that level, it rapidly advanced to $2,650 per ounce where it stands today. This is a 28% advance in roughly six months. Impressive.
We believe there are a number of factors behind gold’s record high price.
Fiscal Dominance described [in part 1 yesterday] is becoming more well understood. We were a lonely voice over the past few years (arguably decades) saying that monetary debasement was nearly assured given the way our financial system is structured. From what we read in the press, our non-consensus view is becoming mainstream. The U.S. fiscal problems have not abated post COVID and post stimulus, and we now see that it takes continued deficits to keep the economy growing and the stock market from collapsing. Gold is very sensitive to potential monetary debasement, and it smells the coming debasement/monetary inflation.
