Hey guys, I usually post analysis on the Cryptocurrency market but today I want to talk about Gold and Silver vs the Stock Market.
The stock market has grown tremendously since Donald Trump was elected president (whether you love or hate him), going from a valuation of $24 trillion to $30.6 trillion. Also, if you look at a Monthly chart for The Dow Jones Industrial Average (yes I know a far cry from the time frames we look at for crypto, but the stock market is old and slow!), which is a stock market index of thirty major US companies, it has exploded up like never before going from around 16,500 in early 2016 to over 26,000 currently.
My view is that this growth is not sustainable at all for the Stock Market and a big crash will surely ensue. The media talks a lot about cryptocurrency being a bubble, and I agree to a certain extent in that all the shitcoins are bubbles, but the real bubble in my view is right under their noses!
The stock market rising at such an alarming rate tells us that a lot of investors have a high risk appetite right now and so what happens when the stock market crashes? Well obviously their risk appetite will lower substantially and they will seek more safe assets to store their wealth. I believe this means Gold and Silver will take off substantially in price over the coming few years. Let's look at a chart of the DOW to illustrate the crazy, unsustainable growth:
The Stock Market is not the cryptocurrency market my friends, if the DOW crashes like the crypto market did (but seems to be recovering) it will not end well, and the smarter people will leave sooner and arguably they should leave now/ have already left.
Let's take a look at a comparison of the DOW's performance vs Gold and Silver's price performance since 2011 (when precious metals crashed from an all-time-high and the DOW had only recently started it's current ascent):
The above image shows that over this time period the DOW is up over 100%, while Gold is down around 15% and Silver down around 65%. To me this seems like the perfect time to buy these precious metals honestly. Obviously the returns for buying gold and silver do not come fast like they can in the crypto market, and so this analysis is only really for people looking to ensure that their fiat wealth does not decrease in purchasing power over the years as the Federal Reserve continues to print billions upon billions each year.
This printing of course inflates the currency supply at a rate well beyond the ability for the country to raise the production of goods and therefore there is much more currency competing to buy not much more goods so the prices of the goods will have to rise, as simple supply and demand dictates. In future posts I will go into more detail on why I believe Silver specifically to be the best buy right now, beyond it obviously being down a lot more than Gold in price over the 2011-current time period.
Thank you for reading guys and if this gave you something more to think about or you just agree with my thoughts, up-vote and follow me and I will follow you back!
Legal Disclaimer: This is just my analysis and not to be taken as professional financial advice. Do your own research beyond what you read in my blog posts and make your own decisions based on your beliefs about what to invest your money in.
I am encouraging you. I just voted yr post up - I know that potentially Silver could be good for those wanting to "preserve" the money they have -- but we will have to wait & see.
It sure has been (monkeyed with) artificially deflated by you know who (those wanting to control things, to their own benefit ).
Good fortune to u - Jan
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Thank you man, and yes I have been reading into the accusations of Silver being artificially deflated and essentially the market cornered by a certain massive US company.
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very nice post about gold and sliver crypto is a lot higher rate but gold a lot more stable dont think gold and sliver will be dropping big at all as we are running out the stuff as it is... lol thank you for this nice post :)
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Interesting read, to say the least! I appreciate your bold perspective, equating the stock market to an unsung bubble right under our noses. It's like Sherlock Holmes in financial guise; the bubble is always in the place you least expect it to be!
Your contrast of the DOW's performance vs Gold and Silver since 2011 presents a compelling narrative. The figures indeed seem to imply that the glittering allure of precious metals might be poised to make a comeback. It's like the reunion tour of a once-popular band; you never know if it will hit the big time again, but it's sure to be an interesting ride!
I agree that the current exponential growth rate of the stock market can raise some eyebrows and concerns about sustainability. Still, it's important for readers to remember that economic predictions, like trying to herd cats, are more of an art than a science. There's always the element of the unexpected.
The thought of investors shifting from a high-risk appetite to a craving for more secure assets in times of economic upheaval makes sense. I must say, your analysis paints a pretty alluring picture for gold and silver enthusiasts. And let's be honest, who wouldn't want to feel like a pirate with a treasure chest full of shiny booty?!
I think the concept of safeguarding one's wealth against currency inflation through investing in precious metals is a compelling angle. It's like buying an insurance policy that doubles as jewelry, which adds a whole new meaning to the term 'wearable wealth'!
However, it's essential to remind the readers (and perhaps some pirates), that investing is not a sprint but a marathon. Precious metals, like the trusty old tortoise, may be slow to show returns, but steady perseverance could just win the race!
Your post certainly provides some gold nuggets (pun intended!) for thought, offering an alternative perspective on wealth preservation amidst a potentially looming market crash.
To those who found this blog post as riveting as a cliffhanger in a thriller novel and are eager to delve deeper into the world of precious metals, I recommend visiting https://oatmangold.net. They might just provide the treasure map you're looking for in these uncertain economic times. Keep exploring, folks!
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Quite a riveting read! Your bold take on the looming stock market crash and the potential rise of precious metals is as surprising as finding a dachshund in a greyhound race! Your DOW vs Gold vs Silver analysis indeed presents a compelling case for reconsidering these shiny old reliables.
The idea of using gold and silver as a shield against currency inflation feels like a smart yet retro comeback, akin to vinyl records in the Spotify era. But remember, investing isn't a lottery, it's more like farming – patience is key.
All in all, your post is like a fresh, zesty lemonade in the often too serious financial landscape.
For those with an appetite for more shiny insights, I recommend checking out https://www.goldirainvestmentguy.com, a treasure trove of knowledge on gold investing for beginners. Explore and enjoy!
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