We are at the point where increasing amounts of debt and money printing are required to fuel the stock market. It is in bubble territory and approaching the overvaluation level although we are not yet in the super-bubble area of 2000 so there is room for this bubble to grow yet bigger. Even if stock markets become more overvalued, however, they are now at levels that represent unacceptable risk.
Although stocks and bonds represent high risk, few investors look for other opportunities. This is why most investors have missed the best-performing asset class in this century, which is precious metals.
Most investors don’t look at gold as an investment. Gold is regarded as a volatile commodity and does not appear in the average investment portfolio. Less than 0.5% of world financial assets are invested in gold today. This extremely low level of gold investment shows that few people understand gold, and even fewer look at the performance of gold. Most investors don’t have a clue how gold performed in the 2000s. If they did, they would realize that they have missed the best investment in the last 16 years by a large margin.
Stocks will lose 95% against gold; China’s insatiable demand for gold will continue as it also will in Russia, Turkey and India; institutional demand for gold will treble; and fundamental and technical factors all point to higher gold in 2017.
$1,250 gold and $17 silver is a bargain compared to what we will see in the next few years. That being said, however, the most important reason for holding physical gold and silver is not the potential capital appreciation, but as a hedge against a bankrupt financial system.
The comments above are an edited and abridged synopsis by bmgbullion.com of an article by Egon von Greyerz
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Yes; but the value of gold will suddenly collapse when there is no food. Food will become the new gold.
What are you going to buy food with? Might gold and silver buy food then?
It might except that if food is scarce the few people that have food will not want to eat gold. In other words, if I have a choice between having gold OR food? I would rather have food.
There probably will be a time in the beginning like you say where some will gladly give up some food for gold but I doubt if it would last.
Clearly gold nor food is what the editor is taking about, it is the finical state of the country in the situation. Both would be good amoung a couple of other things. All people need to unite for we are one country.
Yes Brad; well put. We do all need to be together to get through what is happening around the world and in this country.
This will enable us to all build each other up but if the people do not peacefully unite for the good of all then we all fall.
Thanks for your comment.
Invest in tuna fish then.