Weekly Stacker Prepper Journal – 24 November 2024 Update
Geo-Politics
Escalating Tensions in Ukraine and Russia
The conflict in Ukraine intensified this week as President Biden reversed his decision on restricting the use of U.S.-made long-range missiles. Ukraine quickly deployed these weapons, prompting Russia to raise its nuclear alert level.
There’s growing concern that Russian President Putin may take drastic measures before Donald Trump assumes office in an effort to limit U.S. backlash.
Sweden and Finland Advise Citizens to Prepare for War
Sweden and Finland have officially advised their citizens to "prepare for war," as reported by Barrons.com. Sweden's Civil Contingencies Agency (MSB) has distributed the booklet "If Crisis or War Comes", guiding citizens on how to prepare for emergencies such as war, natural disasters, and cyber-attacks. This advisory comes amid heightened rhetoric due to Sweden and Finland's alignment with the U.S. against Russia, placing them in close range of Russian missile strikes.
Walmart Warns of High Inflation Amid Tariff Concerns
Walmart has warned that consumers will face higher inflation due to President Trump’s proposed tariff increases on China. Tariffs are fees that importers pay based on the value of imported goods. While these tariffs are expected to raise prices, they also stimulate U.S. job growth, thus boosting the domestic economy.
However, there’s speculation that inflation may not reach the anticipated levels, as China might ease some of its policies to avoid worsening the situation.
Stock Market Watch
The Stock Market's Pre-Recession Climb
Despite record highs in gold, crypto, and residential real estate, concerns about a recession persist. Indicators are pointing toward an inevitable market crash, and historical trends predict it with certainty.
This pre-recession behavior is often referred to as a “Melt UP” — a temporary rise in prices before the inevitable “Melt DOWN” crash.
Additionally, the M2 money supply has been expanding rapidly. More cash in circulation drives up prices, which in turn restricts the economy, prompting the government to increase the money supply — essentially taking on more debt. This cycle can only reset with a market correction, often leading to a stock market crash.
Metals Market Watch
Short-Lived Post-Election Price Drop for Metals
Many of my sources suggest that the recent drop in metal prices following the election will be short-lived. This sets the stage for potential price increases in 2025.
Although opinions vary online about the future of metals, with some predicting significant price hikes and others forecasting a decline, it’s wise to remain conservative while staying optimistic.
The value fluctuations in metals are largely driven by the falling dollar and ongoing global conflicts, including the war in Ukraine. Metals prices could be even higher if it weren’t for the existence of crypto options, which I do not personally invest in. Most cryptocurrencies are not backed by anything tangible, though older cryptocurrencies like Tether Gold (XAUt) and Paxos (PAXG) are backed by gold.
Silver continues to be undervalued compared to gold, especially with high industrial demand. One reliable source predicts silver could reach $37.50 per ounce by the end of 2025. With an 80:1 ratio (the average for 2024), gold could close the year at $3,000 per ounce.
Other News
Spirit Airlines Files for Bankruptcy
Spirit Airlines has filed for bankruptcy due to the heavy debt incurred during the COVID-19 pandemic. A failed merger with JetBlue, blocked by a judge for potentially creating a low-cost monopoly, also contributed to its financial troubles. Spirit has faced further challenges, including major computer system failures and even being targeted in a shooting incident in Haiti.
Chase Bank Locks Accounts
Reports of Chase Bank locking accounts are increasing, with some customers waiting over a year to access their funds. One notable case involved Bryant Grange, which was unable to access over $11,000 locked in a U.S. Bank account. This trend is expected to continue, so it’s wise to limit the amount of money you hold in bank accounts.
The Usual Metrics
Layoff Tracker and Economic Indicators
According to the National Layoff Tracker, 50% of the top 10 companies with the largest layoffs are based in Washington State. Boeing has also announced major upcoming layoffs that haven’t yet appeared on the tracker. The economic situation in Washington is worsening, and it’s likely to become one of the worst in the nation.
Many job seekers in the state have been unable to find work for weeks or even months. Companies are becoming increasingly cautious with their spending.
Although a potential Trump victory could mitigate some recession fears, the U.S. is already in the early stages of an economic downturn. A stock market correction is still expected, possibly exacerbated by global wars, which tend to trigger economic growth through increased government spending.
What Would I Do About All This?
(This is not financial advice, just what we’ve decided to do in our household.)
Investment Strategy: Gold, Silver, or Crypto?
I watched a video by Robert Kiyosaki where he addressed the question of whether to invest in gold, silver, or crypto. Given the global economy, commercial real estate markets, household debt, and available investment funds, Kiyosaki’s approach focuses on the Australian economy. Australia’s markets tend to run about three months ahead of the U.S., providing investors with a valuable preview of what’s to come.
Kiyosaki pointed out that nearly all cryptocurrencies are not backed by anything, making them just as risky as fiat currency, capable of collapsing due to inflation or hyperinflation. However, there are opportunities for short-term trading profits in crypto, though there’s a significant risk of total loss.
His conclusion was simple: gold and silver are solid investments, with silver currently being undervalued. A well-balanced portfolio should include 60% silver and 40% gold, according to Kiyosaki.
This aligns perfectly with my personal strategy. Additionally, there are rumors that gold ownership may become illegal again. That’s why I focus on foreign coins made of precious metals. Unlike American coins, which could be confiscated by the government because they’re considered currency, foreign coins are more likely to be spared.
I avoid numismatic coins (those with collector value) because, in times of crisis, their value often reverts to their “spot” price.
Stay informed, stack smart, and protect your wealth.
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