Thursday , 5 August 2021

Buy & Hold Commodity Assets (Particularly Gold & Silver) Starting Today: BIG Profits are Coming – Here’s Why (+2K Views)

Savers will not stand idly by and watch their savings get wiped out by taxes and inflation….[which] is good news for investors who buy and hold commodity assets today – and it’s also a stark reminder to not be fooled by the short-term head fakes that might make it look like the commodity bull is over. Stay the course – the biggest profits are yet to come. [Here’s why.] Words: 405

So says Kevin McElroy (www.wyattresearch.com) in edited excerpts from his original article* entitled Why the Next Few Years Will Be Incredible for Commodity Investors.

Lorimer Wilson, editor of www.munKNEE.com (Your Key to Making Money!), may have edited the article below to some degree for length and clarity – see Editor’s Note at the bottom of the page for details. This paragraph must be included in any article re-posting to avoid copyright infringement.

McElroy goes on to say, in part:

…With the fiscal cliff looming, and a variety of other “uncertainties” plaguing the market, people seem to want to save in the safest way possible. So much so that in the past four years since the start of the financial crisis (which, you might recall, centered around banks) deposits have nearly doubled from $3 trillion to nearly $5.5 trillion!

These savings deposits, though they’re not one single entity, are the most liquid and largest pile of dollars in existence which begs the question:

“What will happen to this giant pile of money when one of the following inevitable scenarios plays out?

  1. Taxes are raised on savings deposit interest.
  2. Inflation rises.”

Now ask yourself:

“What asset class typically outperforms savings deposits during inflation and high taxation?”

The answer is commodities. All of this money will someday come crashing into the commodity space. It will be joined by money fleeing the Treasury market (when rates rise and Treasuries crash) as well as money fleeing stocks (when taxes rise on corporations, capital gains and dividends).

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The masses will realize that the only sane place to store their savings is in an asset class that the government can’t inflate away – and that indeed benefits from their efforts to inflate the currency to pay down debt – is commodities. They’ll also be inclined to buy portable stores of wealth (like gold and silver) which are harder to track and tax.

Conclusion

Savers will not stand idly by and watch their savings get wiped out by taxes and inflation….[which] is good news for investors who buy and hold commodity assets today – and it’s also a stark reminder to not be fooled by the short-term head fakes that might make it look like the commodity bull is over.

Stay the course – the biggest profits are yet to come….

*http://www.wyattresearch.com/article/why-the-next-few-years-will-be-incredible-for-commodity-investors/29013

Editor’s Note: The above post may have been edited ([ ]), abridged (…), and reformatted (including the title, some sub-titles and bold/italics emphases) for the sake of clarity and brevity to ensure a fast and easy read. The article’s views and conclusions are unaltered and no personal comments have been included to maintain the integrity of the original article.

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One comment

  1. I expect the Government to start a new sales tax for all PM transactions which would be happily approved by all those without any PM to buy or sell, much like the taxing of cigarettes, which non smokers all endorse because it does not affect them!