Mainstream 'Investment Conundrum' Shows Just How Much Gold & Silver Are Despised
For the next 12 months, through 2018, it seems there is just 'nothing' to invest in. Just ignore the elephant in the room...
In what may be priming the BloombergTerminal to force the HFTs to re-write the algos to a bearish slant, it seems that everything 'investable' moving from here on out is going to be pure red ink for the next 12 months.
Notice that gold and silver don't even make the 'developed asset class' cut, but some how debt based fiat currency does the Fed is hell-bent on devaluing by 2% per year does:
Goldman Sachs projects losses over the next 12 months across U.S. stocks, rate and credit markets and all commodities except oil, suggesting investors will take a breather after this year's rally that has spurred fears over 'bubblicious' valuations against the backdrop of still-modest growth.
Seriously. They just went there. Stocks will be falling, and yields around the world will rise along with interest rates in the United States, but oil will also rise on a rising EUR/USD, and somehow gold is going to fall?
See for yourself:
This is not to say the mainstream isn't all about 'diversity'. Actually they love saying the word 'diversification':
A well-diversified portfolio will boost weighted returns, with equities set to outperform, according to Robeco. The global recovery still has legs but there's now a greater prospect of a mild recession against the backdrop of quantitative tightening, according to the Dutch asset manager.
But by 'well-diversified", they just mean having a broker managed account consisting of US bonds, equities, junk high-yield bonds, and perhaps cash, in a mutual fund of course.
Think about what they are saying for a moment, and then think about how what they are saying relates to gold and silver:
Silver doesn't existOil, a huge cost for mining operations, is going up in priceThe cost of currency (interest rates) is going upThe stock market is going downYet somehow the hedge against inflation and uncertainty is going down with it?
And silver just doesn't even exist?
They think about a few more things ignored on this 'front page Bloomberg' market analysis:
Gold production is fallingSilver production is fallingGold and silver prices have been in a brutal bear market for 6 yearsThe stock market has been rising for 9 years without a correctionGovernments around the world are printing like there is no tomorrowThe Fed has a huge balance sheet and wants to "unwind" it by $10B a month (which would take 10 years to unwind only $1.2T assuming no recessions)The EU is a basket case (See UK, Spain, Italy, Greece, Germany, and Catalonia)The war drums against North Korea and Iran are beating louder and louder by the dayHalf of the U.S. was just destroyed by Mother Nature, not to mention the Mexican and Caribbean destructionChina, Russia, Turkey and India are stacking gold like there is no tomorrow.The United States government has not accomplished one positive thing all year.Mass shootings, mass murders, terrorism, and [email protected]!$eFlags are striking citizens with increasing frequency.Yet somehow, the gold price is going lower through 2018.
And silver doesn't even exist.
If we could offer our own diversification plan, modeled after the "US debt and equities markets only strategy", it could go like this:
Have a mix of goldHave a mix of silverSpread it out in safe, secure placesThrow in some platinum, palladium and copper for good measureDollar-cost averageBuy on these dipsStack accordingly...