Asset Allocation

The chart below looks at the Silver/S&P 500 ratio over the past 40-years, highlighting several long-term trends and it suggests that silver is on course to outperform the S&P 500 for years to come.

Gold mining stocks are much more volatile than gold bullion and have a variety of additional risks dependent on their company structure, jurisdiction of operations, and operational efficiency but they can be an alluring option for investors who are looking for exceptional returns in gold bull markets. Here's why.

We are being brainwashed – gaslighted – into ignoring current threats – into believing that these threats are not real.

The Dow:Gold ratio is a powerful tool in order to determine major turnarounds in the DJIA and/or gold so, if you are heavily into equities, this article should make you very nervous.

Most of the biggest gains in gold stocks relative to gold bullion have come in a short period of time at the early stages of gold bull markets.

The level of M2 - the total amount of money in circulation in the country - is not only helpful in deciphering the fair value for gold but also where the metal is headed by forecasting how the money stock will trend and...while gold doesn't move in lockstep with M2, it does follow M2 higher over time.

…Politicians try to juice up the economy during election years to improve their chances of re-election…but after the election is over and the next election is far away, they reverse the course and restrict the fiscal and monetary stimuli. Thus, major elections produce economic booms and busts, as politicians try to create an artificial boom before every election and take advantage …

The silver market is only 1/10th the size of the gold market so it’s prone to crisis-driven upside explosions as money floods into it during periods of high inflation and, today, the stage is set for an explosion in inflation. I expect it to kick off a crisis-driven mania into silver like what happened in 1980 and, adjusted for today’s prices, that means silver soaring above $160 a [troy] ounce.

it is evident that holding gold should be a priority for investors considering the looming economic uncertainty within the economy, as well as the historically superior performance of gold over the last 20 years.

Historically, junior mining stocks tend to fluctuate between extreme boom and bust cycles and, given that we just completed a major bust cycle, the setup for a major rally in gold stocks is right in front of us. Those with the courage to buy low, and the discipline to sell during a frenzy, could quite possibly realize 10-bagger or even 100-bagger returns that could be worth a million dollars or more. Hold on to your hat!