Buy Into An Asset Bubble Before It Becomes A Bubble

Let’s face it, the trillions of fiat currency printed by Central Banks globally, which has been compounded by an even greater amount of debt issuance derived from the printed currency, has fomented multiple assets bubbles of historic proportions. Bitcoin is a bubble. The FANG stocks plus Tesla, among dozens of other daytrader and hedge fund momentum darlings, are bubbles. Novo Resources, for now, is a bubble.

Rather than buying into today’s bubble valuations, real money can be made anticipating the next asset bubble sector. Please note that I consider cryptocurrencies to be de facto fiat currency because they share many similar attributes with electronically produced Central Bank currency. When the fiat currency experiment fails, which it will (please see Voltaire, et al), the next bubble will form from the race out of fiat money into real money – gold and silver. The bubble will not be gold and silver. The bubble will be the derivatives of gold and silver:  mining stocks.

William Powers, of MiningStockEducation.com, invited me onto to his program to discuss the precious metals market and investing in junior mining stocks. Junior mining stocks are extraordinarily undervalued and will likely be the next great asset bubble – Bill and I discuss why and several other topics:

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6 thoughts on “Buy Into An Asset Bubble Before It Becomes A Bubble

  1. I truly pity people who think in terms of either/or for PMs/cryptocurrency. They have different use-case propositions. Any true libertarian (someone who professes to understand markets) should welcome currency competition.

  2. There is nowhere to run.
    There will be time when gold will go up and that time is coming and prices of some mining companies will skyrocket , with present price of gold( thanks to Masters of Universe) , price of many gold stocks is right at the bottom. They helped themselves and now they buying and we should too.

  3. Smells a bit like Bre-X to me, with all the resource potential hype. Of course, as you said, the multi-billion ounce claim is utter nonsense. Didn’t know Felderhof personally, but I knew his brother, who was a smart, nice fellow. That scandal certainly tainted his prospects for awhile.

    As an aside, it looks like the cartel racket is running out of fuel.

    1. Given who’s involved, I doubt there’s any “Bre-X” aspect to Novo. But the market cap is at least 10x higher than it should be given what’s known about the property. Novo is benefiting from the general stock/asset bubble. I tried to short it in my fund but the custodian was unable to borrow shares.

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