In this precious metals update, Tom Cloud discusses the misinformation about the gold and silver market. Tom explains the difference between what is taking place in gold and silver versus the broader stock markets.
For example, Tom states that the stock market which is currently trading at 29 times earnings compared to the norm of 15 times earnings, means the market is seriously overvalued-over-leveraged. However, the gold price is still $650 from its high (-34%) set in 2011, while the silver price is $32 off its high (-65%).
Tom also discusses that when the U.S. Dollar index falls 1% (historically), gold goes up 11%. If the Dollar index falls 3-4% this year, then Tom believes the price of gold could go up 33-40%.
Furthermore, Tom believes that an investor who has $100,000 investing in the stock market, should have 10-30% invested in gold-silver ($10,000-$30,000). Jim Rickards only recommends investors to have a 10% of their assets in gold as insurance. Unfortunately, Jim Rickards does not factor into his financial forecasts, the declining energy industry and its impact on the value of most STOCKS, BONDS & REAL ESTATE.
IMPORTANT NOTE: I will be publishing an article on the gold price shortly. Many analysts believe the Fed and Central Banks can push the price of gold and silver anywhere they desire. This is COMPLETELY FALSE… and I have the data to show otherwise.
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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An admittedly artbitrary minimum allocation of PMs in your “portfolio” in these bizarre times should be :
If you have $100,000 in stocks and they are 100% or 2 times overvalued based on historic PE ratios, then you should double the “recommended” amount of the typical 10% in PMs, or now have a minimum of 20% or $20,000.
“Tom states that the stock market which is currently trading at 29 times earnings compared to the norm of 15 times earnings, means the market is seriously overvalued-over-leveraged.”
if it’s about markets and profits, sure. but what if it’s not? what if it’s about simple raw ownership of process and capability? what if they’re paying these completely unreal “prices” for exactly precisely the same reason you might pay completely unreal “prices” for gold?
Central banks buy up future profits (aka debt) as we speak. That means failure. In a fiat currency environment, ‘price’ means nothing. Its perception.
Funny thing is; central banks will buy 140% of gdp in due time. Because the debt cannot be paid back. A lie becomes truth when the truth becomes a lie.
Trend is bad.Next crash.silver 16.4$ next stop.Junior miner catastrophe.
As i said.We only can hope that trump make 2 Billion(german notation)new debts.
Silver and Gold-Price increase when the difference between interest rate and inflation is negative.That’s the real driver.
Measuring things in fiat currencies is like giving the key to your house to your mother in law.
Its all fun and games until she reaches the bedroom.
Amazon and Google exploding higher after their results with new all time highs.
The GAFA are now 2.5 trillion combined, when they will reach 10 trillion they will be able to absorb any serious opponents in these countries of clowns like china, or india.
RD,
Spoken like a typical ANGLO-SAXON…. LOL. Again… well done.
I see a lot of extremely STOOPID comments being made today. Must be something in the water.
steve
Anglo-saxon are leading. You assume that the BRICS will be able to impose something to the west. I do not believe so at this stage.
Military : they are too weak.
Leading techology : same thing.
Soft power : 0 compared with anglosaxon world.
I agree, Steve.