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.
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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