The dollar will now suffer a massive crash after the world realizes that the US has just lost its geostrategic hegemony over the global economy through control of energy flows, because it now no longer has enough global oil market share to act as the guarantor of the Western system. Inflation will now become double-digit as the US will try to turbo-inflate away its debt. The US elite will use this window of time, in which the Fed will pump massive liquidity into the system to support US military operations on all fronts, to exit the stock market in the final squeeze and bet against their own economy and currency. In the process, US bond yields will experience a blowout to the upside and cause the debt bubble to burst. The gold price will shoot up faster than ever before in human history.
This gold bull market is far from over.
Gold's outperformance relative to the S&P has yet to reach historical peaks.
- 2011: ~2 to 1
- 1980: ~10 to 1
- 1930-42: ~6 to 1
Gold remains historically cheap relative to the S&P.
At the same time, this gold bull market is different from previous ones because central banks have turned into net buyers for the first time.
This dip is a wonderful opportunity to buy gold on the cheap.
For those gold/silver bugs who are losing their patience, here is your daily reminder to hold on tight while the gold/silver bull bucks.
We are waiting for the next leg. It's coming. Until then, it's just noise.
Leg 1: $2000 to $5600 gold, and $35 to $120 silver.
Leg 2: $4000 to $6500 gold, and $50 to $150 silver.
Best guess. 😉
@baldguymoney A rotation out of stocks and into metals/commodities is going on! Full allocation to stocks can/may create a painful & stressful retirement!
Silver still imploding versus money supply.
Don't let any precious metals guru tell you otherwise.
Patience required before we get the next great opportunity.