The Historical Stock Bubble And Undervalued Gold And Silver

When the hedge fund algos inevitably turn the other way and unload stocks, a meaningful amount of the capital that leaves the stock market will likely rush into gold and silver.  The record hedge fund net short position on the Comex will add fuel to the move in gold/silver.

James Anderson of Silver Doctors/SD Bullion invited me to discuss the largest stock bubble in U.S. history and why gold is extremely undervalued relative to the U.S. dollar.  (Note:  at the 20:44 mark I reference China’s foreign reserves to be $1.2 trillion. This is the dollar amount of China’s reserves; China’s total foreign reserve is $3 trillion).


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6 thoughts on “The Historical Stock Bubble And Undervalued Gold And Silver

  1. Hello Dave.

    Thanks for all your efforts to educate us. The system will run until the weakest link breaks. There are many weak links like highly leveraged nations, zombie companies …. The most easy to observe is the US consumer. Today’s Personal Income and Outlay’s showed marginal wage rises and massive deficit spending of consumers. This will be reflected in increased credit card defaults. Some banks have already a loss rate of 5 per cent. Ten is the limit when banks will pull the plug (at the latest). Once consumers have lost their credit card, the game is over. The bubbles will pop and the economy be in recession. Gold should do well in either a deflation or inflation since in both cases credit is destroyed.

      1. Much appreciated. You are one of a tiny group of people who have the understanding, the humanity and the courage to address the horrendous market manipulations that expropriate almost everybody on this planet.

  2. I agree that the stock market is now propped up for the benefit of pensions. Other than giving them high portfolio values, which helps them paint a rosy actuarial picture, I don’t see how that helps their cash flow – unless they’re borrowing to help fund distributions. The SP500 dividend yield is 1.90%, treasuries are probably averaging 2.5%, or thereabout, and high yield around 4.6% – and that is risky business. With that low an income yield, distributions can soon overwhelm income and contributions. I guess they can continue using contributions to fund distributions, but after next downturn, it might be game over.

  3. It was very interesting interview as usual with a lot of sense.
    There is still time to prepare so we should enjoy whatever is left because future is going to be very different. I feel we getting closer to the breaking point , watching Venezuela and Turkey – weak points at this time.

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