Author: Peter E. Huber | Source: themarket.ch
**Publication Date: 29.10.2025
Executive Summary
Europe faces an inevitable system collapse due to structural problems in EU policy and advancing deindustrialization. While European markets may still reach short-term highs, Asian markets and precious metals offer significantly better long-term investment opportunities. The EU proves incapable of reform, despite concrete reform proposals from leading experts.
Core Theme & Context
The analysis focuses on Europe's structural economic crisis and its impact on capital markets. The author argues that political diversionary tactics are masking the EU's existential problems while blocking genuine reforms.
Key Facts & Figures
• 6,300 new EU directives were passed between 2019-2024 under Ursula von der Leyen • Germany: Loss of over 100,000 industrial jobs, simultaneously 100,000 new positions in public service • Mario Draghi's 383 reform ideas from his EU report have not been implemented after one year • US stocks dominate with over 70% of the MSCI World Stock Index • Gold-silver ratio stands at 85:1, historically well above the 5,000-year average • Silver consumption has exceeded new production for years
Stakeholders & Affected Parties
Main Affected: European industrial companies, particularly automotive sector (VW vs. Toyota comparison), steel sector, chemical industry
Beneficiaries: Asian markets (China, India, Vietnam, Indonesia), precious metals sector
Investors: Reallocation from Europe/USA to Asia and alternative assets recommended
Opportunities & Risks
Risks for Europe:
- Advancing deindustrialization through over-regulation
- Loss of international competitiveness
- Unsustainable stock market rally despite weak fundamentals
Opportunities in Asia:
- Strong consumer growth in populous countries
- Technological leadership in China, Taiwan, South Korea
- Underrepresentation in global indices offers catch-up potential
- Dedollarization and strengthening of regional currencies
Action Relevance
Portfolio Strategy: Significant underweighting of US stocks, focus on Asian markets
Precious Metals: Silver preferred over gold due to historically high price ratio and industrial demand
Time Frame: Long-term positioning (5-10 years) for structural market shifts
References
Primary Source:
Supplementary Sources:
- Mario Draghi EU Competition Report
- MSCI Index Composition
- Precious Metals Market Data - Various Sources
Verification Status: ⚠️ To be verified - Specific figures on EU directives and German jobs