Precious metals expert and dealer Tom Cloud issued a new Buy alert for gold during his update this week. I have spoken to Tom on the phone recently, and this is one of the very few gold buy alerts he has made in his 41 year history as a precious metals dealer.
Tom discusses how the majority of the previous price moves in gold and silver normally occurs within a 12 month period. For example, the gold price increased from a low of $1,323 to a high of $1,923 between January and September 2011. That was a $600 move in nine months.
Tom also discusses a large a large silver order out of Asia-Singapore that was 28 cents higher for each 100 oz bar versus in the U.S. due to higher demand:
In the update, Tom describes how the Stock Market is overdue for a large market correction… I agree. Tom states that the Stock Market is now selling at 36 times earnings, when the average has been 15. Furthermore, Mike Pento stated on a recent interview with Greg Hunter at USAWatchDog.com, that the average value of the Stock Market divided by the GDP was 55% over the past 2-3 decades. However, the current Stock Market value is currently a lofty 135% of the GDP. So, we can plainly see that these highly inflated stock market values will not last for long.
The last time the stock market fell a mere 2,000 points, in the beginning of 2016, the price of gold and silver jumped 20-30%. So, the idea that the precious metals will sell off with the broader markets, wasn’t true the last time it happened.
In addition, Tom talks about a conference call he had with two money managers and how they were trying to get more of their clients to get into gold. Unfortunately, 98% of money managers have no gold exposure for their clients.
Lastly… Tom discusses a meeting he had in New York a few weeks ago about a new Gold-Silver backed crypto-currency. From this meeting, Tom believes that a lot of individuals will move their funds from risky banks to these Gold-Silver backed crypto-currencies over the next 18+ months.
This may not sound that far-fetched as there are now three Gold-Backed Crypto-currencies already:
Now, the Gold-Silver-backed BCX asset that Andrew Maquire has been talking about on King World News is not a crypto-currency, rather it is a digital asset. Gold and silver on the BCX will be traded as digital assets on the Billion Coin Exchange, not as a Gold-Silver backed crypto-currency.
Clif High mentioned on a recent interview that the value of gold will become meaningless in the future due to too much supply and the crypto-currency market taking over… I COMPLETELY DISAGREE. I will be posting an article on the details why I don’t see this happening. However, the major point that Clif High omits from his forecasts is ENERGY.
One more thing. I had to remove the details of Tom Clouds Lowest Cost Storage rates in the industry on our webpage because it caused too much of a stir in the industry. So, if you want to find out about Tom’s LOWEST COST PRECIOUS METALS STORAGE rates, you have to call his number on the page.
Lastly, if you haven’t checked out our new PRECIOUS METALS INVESTING section or our new LOWEST COST PRECIOUS METALS STORAGE page, I highly recommend you do.
If you are new to this site, you may want to check out our PRECIOUS METALS WEBINAR. There is a lot of good material discussed during that webinar… for free.
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It would be good to make a comment on energy and crypto…
Yes… you bring up an excellent point. Let me answer it this way.
While I believe a lot of funds will move into these crypto-currencies over the years, the ENERGY problem is still there. I have not forgotten about this whatsoever.
I don’t know if our energy problems will get really bad in 5, 10 or 15 years. However, 15 years seems to be the outer limit. So, by then, we could see serious disruptions in high technology. But, regional or localized technologies may be able to still use some crypto-currencies for certain aspects for a while longer.
Regardless.. the crypto-currencies do have a lifespan due to ENERGY CONSTRAINTS in the future.
The area of ‘mining’ being ENERGY intensive, the backroom engine of keeping cryptos functioning is an area to be considered. Procuring food vs upkeeping blockchains numbering in their tens of thousands+++ as corporations and govt’s utilise the tech…
The next “alert” . . you guys should stop alerting around or you loose every credibility. I want to read numbers and facts when I come here . . and not listen to salesmen who try to fix the goldprice by alerting around.
How very nice of you to come in here and make such supportive comments. I have looked over the past half dozen of your last comments and see a lot of negative criticism.
For example, you just stated that you like to come in here to read NUMBERS AND FACTS. Well, it takes a lot of time to do the research, chart making and writing to put out those NUMBERS and FACTS. And No, I am not a trading or investment strategist. I am an analyst that promotes owning physical Gold and Silver because of the ENERGY factors and Central Bank Intervention.
So, I find it quite NICE of you to leave a comment a while back criticizing that I have to depend on receiving $1 a month from subscribers to survive. Which means… you want me to provide you with ORIGINAL INFORMATION you really can’t find anywhere else on the internet for FREE.
If you truly believe my work is not worth anything, then why on earth do you continue to come in here and read it???
I used to be careful and try to be nice and speak politically, but I don’t give a RATS ASS anymore. If people enjoy the work I do… great. If they find value in it and would like to contribute… great. If all they can do is support at $1 a month… that is great as well.
But… for you to come in here and make fun of Tom Cloud who offers one of the best and most inexpensive Precious Metals sales and services in the industry because he made his third GOLD CALL in 41 years… says a lot about you.
Well said Steve, I share your sentiments.
While I kind of understand the frustration that many folks express with the movement or lack thereof in the physical silver and gold space, it seems to me that they are quite misguided in their criticism.
It wasn’t silver and gold that created these gargantuan bubbles in all of the other asset classes, nor was it silver and gold that allowed western governments to become so utterly corrupt and compromised….. they are just metallic elements after all.
The one that really gets me is the rush to blame analysts and commentators for unrealised expectations, because they couldn’t be bothered to learn or try to understand the reasons to save their labour in hard assets in the first place……. it kind of reminds me of the old “who $#it in my pants” routine, total lack of personal responsibility.
Keep up the great work Steve it’s very much appreciated by those of us that understand the need to protect ourselves.
Nope . . just nope . .
I am not frustrated. I am annoyed. I hate salesmen and beggars who really dont need it. Im not investing to gain profit. I dont care much for the prices since they are noted in worthless currencys. I cant even understand why people meassure Silver in Paper and take that seriously.
I buy silver to survive the comming war. So I am just interested in the backgrounds and seek informations all over the web to paint a timeframe and discover hidden plans.
There is a big movement of people who are deeply invested in Silver or Gold who try to fix the price by heavy marketing . . EVEN if they know the prices will tumble down the stairs!
That is irresponsible! Because what ever you say .. not every person has years to investigate the financialsystem to invest a view bucks . . so there IS a responsebility.
You can say . .”I think . . ” .. “I recommend . . ” . . but an ALERT ist A URGENT WARNING THAT NEEDS IMMEDIATE ACTION!
You can alert when a fire brakes out! But not if . . maybe . . perhaps . . goldprices are rising. That is just manipulative wishfull thinking.
There were thousands of buy alerts in the last years. Think about those many many people who fell for this extremly optimistic enthusiasm and lost a lot. Because the “alerters” never say: the prices may gain a bit or even more . . it’s always a PRICE EXPLOSION!!! PRICES TO THE MOON!! PRICES WE HAVE NEVER SEEN!!! ..
That is just unfair.
1. You wouldn’t react that way if you would feel secure about yourself and your constant metal-“alerts”.
Even Mr.Clouds seems very insecure with everything he says. Bodylanguage tells a lot.
2. If you guys are such experts you should have made a fortune by now! So it makes people wonder . . WHY you need an additional dollar every month. Because the smallest knowledge in advance is worth a lot if played intelligent.
Better sell a small ebook for 4.99$ instead of begging for a dollar. That seems much more serious. That is how PR is done.
3. HOW I PAY YOU:
I pay you with attention! Attention is rare in the vast space of internet and always a big accelerator for success and money!
I recommended your side to many other people! So keep that in mind if someone of those guys buy your reports or want to hire you!
3. You use your reply to even extend the advertisement: ” . . one of the best and most inexpensive Precious Metals sales and services in the industry . .” . . which makes your response . . well.
4. I still enjoy your content. And all I want is to issue my early “alert” on how you make yourself sound more and more like a covert salesmen and beggar. But that is what all the others do . . and that is the reason why I enjoyed this site.
Keep it scientific and extend your products. Even if you sell coffecups.
I would design a Silvercoin for you . . or an esthetic well designed fact sheed about the EROI to hang on the wall.
Schools, Universitis, preciousmetal salesmen and many others then have something physical to show around. This is the transition to reality.
You understand what I invision for you?
So, when we get these gold and silver backed crypto-currencies how long after that will we a sizable jump in the metals in dollar terms. I would also be interested in your guess on what kind of % increase we might see. I know there far from any way to answer these questions with any kind of accuracy, but any info from you on this would great. Thanks.
Problem is gauging things in dollar terms. The fiat dollars lost 95% of its value since 1914. The remaining 5% represents 100% of today’s 2017 value. If the dollar goes to zero, precious metal prices can conceivably go to infinity in dollar terms. Moreover, pricing things in dollars is all dependent on what you’re comparing the dollar to: euro, yen, gold, etc. The dollar might be weak in Sterling but strong in gold. So, with that in mind there’s too many factors to accurately price something “in dollars.”
In my opinion a better approach is to compare values between assets, say gold vs Dow, Silver vs Medium home price, oil vs gold, and charts like GDP vs Fed Balance Sheet.
By bypassing dollar denomination you get a better understanding of what’s actually happening regardless of any currency fluctuations.
My favorite mid-day lunch is a banana & cliff bar. What I do to gauge inflation around my home town is just simply watch the price. Cliff bars two years ago they were .99c, today they are 1.19 in dollar terms. Bananas have held steady at .55c in dollar terms. Asking what gold & % will be in Dollars is like asking what a Cliff Bar & banana will be in dollar terms.
But, say, compared to an oz of silver or copper, that’ll give you a better picture as to if they’re undervalued & best potential wealth preservation vehicle.
Maybe now is the best time to stock up on boxes of Apricot Cliffs. ?
Another gold backed crypto:
Gold and/or silver backed crypto’s, best of both worlds in 1 solution.
Total Minercrash.We go into the cellar.
Their eroei is going down, so should their stock prices. Better get the stuff that’s already mined with net energy surplus. And i’m not talking crypto’s here. Maybe a full and 100% backed by gold/silver crypto.
There is a constant stream of “BUY GOLD NOW” advice from companies & individuals who make a living from selling Gold & Silver. Its hardly independent advice.
According to them there is never a bad time to buy Gold no matter what is happening. Its the same sort advice you get from realtors who sell houses and always say NOW is the time to buy a house.
There’s a ton Gold sellers on the internet and I have never heard any of them say Don’t buy Gold. When Gold was over $1,800 and Silver almost $50 they were saying Buy Now. When Gold/Silver are going up, down or sideways they say BUY.
Yes but it’s always, according to the merchant for a particular product,the right time to buy a new mattress, car, clothes, shoes,etc. Some sellers or merchants in every industry have higher integrity than others, but they are all trying to sell whether you need/want it or not. Educate yourself as a buyer.
The only gold backed crypto currency I think would work would be one created by a sovereign nation. Such as China. If the government holds the gold backing the crypto, it can’t be confiscated.
Crypto creation uses a lot of electrical energy. Steve, have you run a comparison of crypto BTUs vs gold/silver mining for an equivalent dollar value? You ran gold vs silver a while back. Is this a wrongly asked question?
Clif High claims new sources of energy utilizing silver will be in the near future.I wonder about the ROI. ROI, ROI, ROI, I think I finally got it!
According their official holdings China has about 2%? of their reserves in gold. They want in my opinion the communist dream of a cashless world using sdrs.a world of slavery.
Steve: “Tom also discusses a large a large silver order out of Asia-Singapore that was 28 cents higher for each 100 oz bar versus in the U.S. due to higher demand…”
4:46 Tom: “…28Cents PER OUNCE(!!!!) more on a 100 ounce bars…”
I am no native english, but the difference in these two sentences is outside the USA 99times 28 Cents.
In SG PM prices are a little higher than at home. So 28 cents per 100 ounces would be nothing. But 28 C per ounce….
Here is the differnce between western and eastern gold/silver price.
I’m surprised to see a number of your anti-fiat readers putting their trust in cryptocurrencies. Granted, if one is nimble and not naive, one likely can still invest now and do well. However, there seems to be some misperceptions.
Let me use Bitcoin as an example. On the one hand, the blockchain technology that is used to transfer Bitcoins has value and some version of the technology will likely still be in use 100 years from now. However, when you buy Bitcoins, you are NOT buying that technology as will be elaborated on below. What you are buying is a Bitcoin which will be the item accounted for and circulated by that technology. So what is this Bitcoin that you have bought? It is some digital bits in a computer network. What is its INHERENT/INTRINSIC value? Answer: zero. Yes, this currently differs markedly from what faith (or greed) values it at in the marketplace – over $3000 at times.
Why is Bitcoin valued by faith and greed at over $3000 or well over 2 oz of gold? Answer: Because it’s inherently worthless. Let me explain. A recent article said that if one had invested $100 in Bitcoins early in its existence, then the purchased Bitcoins would be worth $72,000,000 (and since then Bitcoin has increased in price). Anyway, using the 100/72,000,000 ratio, suppose a Bitcoin was pegged to 1/360,000th of an oz of gold so that the inherent/intrinsic value of Bitcoin was set at 1/360,000th of an oz of gold. What are chances that people would pay the price of 2 oz of gold to get 1/360,000th of an oz of gold???? I think the chances are zero, because even though in this example Bitcoin would have MORE inherent/intrinsic value than it does in its actual implementation, it would be crystal clear to all that they would be paying more than 6 orders of magnitude greater than what it was worth. However, since it’s inherently worthless, its market value (i.e., its faith and greed value) may well increase by another order of magnitude.
One may think that Bitcoin must inherit some of the value of blockchain technology by its association with blockchain technology. But this is no more true than if blockchain technology was being used to transfer monopoly money – $100 of monopoly money would not be selling for $72,000,000 in monopoly money much less $72,000,000 in USD. [Blockchain technology can be used to account for, circulate and transfer anything including gold, silver, dollars, leaves, dirt, sugar, monopoly money, etc.] Also, when one buys Bitcoin, one is NOT buying any interest whatsoever in blockchain technology. You are not buying shares of a company that owns that technology. In fact, that technology is proliferating rapidly with new and better rival versions coming out of the woodwork.
So I think of Bitcoin as a fiat claim on a fiat currency – sort of fiat squared. One might say, “But but but, Bitcoin can’t be monitored by the government.” That’s true UNTIL the government wants to monitor it and passes the law that it will be government monitored or you get fined or your Bitcoin will be confiscated or you will go to jail.
Sorry, the market is about to open so I have to rush and buy some cryptocurrencies before we run out of people willing to buy at a higher price than me (:>)
How much is the is the inherent value of a piece op paper called dollar?
BTU’s released during combustion to heat a Hobbithole, or is it the cost of production(like pm’s) of a couple cents per note? Inherent value is a tough idea.
Run, Spot,run! Finally someone woke up to the fact KJU is a problem that must be dealt with. Never stop prepping.
Thanks for another awesome article and I can’t wait to read your rebuttal on Cliff High’s statement!
I jammed some dollars into crypto currency finally! My favorite is Etherum, I don’t want to miss the boat in case it gets to expensive and I give up on it! Now that I’m in, I’ll be patient for dips (I hope), if we don’t get any then oh well I missed the boat. I’m still putting away every month saving up for gold oz’s. I’m going to try to add an oz. of gold every three or four months. Silver, bahhh, I have a hard time not adding that as well.