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moneymetals

Why Gold & Silver Won’t Crash Along With The Stock Markets


When it comes to what happens during the next major market correction-crash, we can count on that “this time will be different” for the gold and silver prices. While many precious metals investors believe that gold and silver will crash along with the broader markets, the charts and data suggest the opposite.

In my newest video, Why Gold & Silver Won’t Crash Along With The Stock Markets, I provide charts and updated information on the break-even analysis of the primary gold and silver mining industry. According to my research, the gold market price has not fallen below the production cost of the top gold miners in the past two decades.

Some analysts, such as Harry Dent, believe the gold price will fall to $700 this year. Dent reconfirmed his forecast in the following article, Why We Are Heading Toward $700 Gold In 2018:

Investors are fleeing to gold in a desperate attempt to weather the recent market volatility… but is this long time “safe-haven” actually poised to collapse wiping out trillions of dollars of wealth in the process?

While many economists will argue that gold is not in a bubble… and insist it will soar to $2,000, $5,000 and even $10,000, my research has said otherwise. I’ve never been more certain of anything in over 30 years of economic forecasting.

Market volatility, worries over the Europe Central Bank, negative interest rates, and China are among a laundry list of events that are driving panicked masses to buy the yellow metal. But this is only inflating the gold bubble that is poised to pop at any moment.

Mr. Dent states the due to the current market volatility, worries over Central banks, negative interest rates, and fears about China’s massive credit bubble are driving investors into gold. BUT, according to Dent, this gold bubble is about to POP.

I find Dent’s analysis that gold is in a bubble quite interesting because if something were in a bubble, then it would have to be at least 50-100% overvalued. If we look at the data on gold and silver, they are no were near BUBBLE TERRITORY.

Shame on you Harry for putting out bogus analysis.

Unfortunately, Harry Dent has no clue about Energy, the Falling EROI or the cost of production when he applies his forecasts. Dent, like most in his industry, produce superficial, incomplete and faulty analysis because they are forecasting in a vacuum. Now, when I state that they are forecasting in a vacuum, that means they are providing analysis by excluding the most crucial variable… ENERGY.

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