Monday, 12 September 2016
This chart is something to bear in mind while watching the almost daily slapping-around of the Precious Metals (Gold and Silver) on the COMEX, which is respectfully called the CRIMEX for very good reason.
- Think about both return ON investment and return OF investment in this period of ZIRP and NIRP.
Compare PM's to the S&P (stocks) and 10-yr Treasuries (Bonds). Notice a trend?
- Consider that 'stocks' are "overvalued" by at least 50% thanks to central bank hot money, and they will crash when that money dries up and runs out.
Bonds are IOU's from a government that is massively indebted to the point it cannot pay back the debt, and is insolvent. They are Wimpey-like "promises" to pay you back next Tuesday for a hamburger today.
PM's have NO 3rd-party contingent liability, and make excellent "insurance" against banking and governmental stupidity, chicanery, and malfeasance.
From Theo Spark at 09:49