Monday 12 September 2016
Overvalued. Promises. Insurance......................from Rico
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.
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PMs only make excellent insurance against banking and governmental stupidity, chicanery, and malfeasance if you are holding the REAL PMs and not just paper "certificates" for those physical items. And if those REAL PMs you own are in a bank vault somewhere, don't count on them being yours when the time comes to need them...
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