We continue to see articles by so called “experts” trashing Gold and Silver as investments. Gold is everything from a “Pet Rock” to a “Dumb Investment” or “Barbarous Relic.”
Do these people even bother doing research? Or are they just stock shills?
First and foremost, you cannot compare Gold’s performance relative to stocks anywhere before 1967.
Why?
Because Gold was pegged to currencies up until that point. Any comparison of Gold’s performance relative to other asset classes prior to 1967 is completely misleading because Gold’s performance was limited by currency pegging.
However, once began to be de-pegged in 1967, the story changes.
As Bill King notes, Gold’s performance has absolutely DEMOLISHED that of stocks post 1967. The below chart normalizes both asset classes.
As you can see, even with Gold having lost nearly 40% of its value since 2011, and stocks soaring to all time highs over 2,100 on the S&P 500, the comparison isn’t even close.
This outperformance has continued recently despite the Fed juicing the market at every turn.
———————————————————————-
The Single Best Options Trading Service on the Planet
THE CRISIS TRADER has produced an astounding 366% return on invested capital thus far in 2016.
We have a success rate of 72% meaning we make money on more than seven out of 10 trades. And thanks to careful risk management we’ve seen triple digit returns on invested capital every year since inception.
Our next trade goes out this morning… you can get it and THREE others for just 99 cents.
To take out a $0.99, 30-day trial subscription to THE CRISIS TRADER...
———————————————————————–
Between the year 2000 and today, stocks have been in two of the biggest stock bubbles in history. Over this time period the Fed has done almost nothing but prop stocks up by printing money or maintaining interest rates far below where they should be.
And yet, Gold has once again CRUSHED stocks’ performance. Again, the comparison isn’t even close (and that includes Gold’s terrible performance from 2011 onwards).
Despite these two facts, you rarely if ever see pro-Gold articles appear in the media.
It’s odd… for an asset class that less than 1% of investors actually own, “reporters” and “analysts” sure spend an awful lot of trashing it. How come they don’t spend an equal amount of time trashing uranium or other under-owned asset? Why spend so much time focusing on an asset that so few people even own?
Probably because:
- Gold doesn’t generate any revenue for financial institutions (brokers, investment managers, etc.)
- Gold doesn’t benefit the banks, as you can store it if your own safe.
- Gold and its performance run counter to the view that you can generate wealth via money printing.
At the end of the day, buying Gold represents pulling your money from the financial system… which is the last thing the Fed wants anyone to do.
Meanwhile, as Central Banks turn up the printing presses again, Gold is once again beginning to show signs of life, turning upwards against all major currencies.
We believe the next leg up is about to begin for Gold. Those who remember form the last Gold bull market in the ‘70s, it was the second leg of Gold’s bull market that saw the most gains.
From 1970 to 1974, Gold rose 550%. It then took two-year breather before beginning its second, much larger leg up. During that second leg, it rose over 900% in value.
If Gold were to stage a similar move now, it would rise to over $10,000 per ounce.
On that note…
We’re currently preparing for a similar situation today.
Indeed, subscribers of my Private Wealth Advisory newsletter just closed out THREE more winners last week: gains of 10%, 12% and 15% produced in just a few weeks’ time.
This brings our winning trade streak to 80 straight winning trades.
Indeed, we haven’t closed a single loser since November 2014.
80 straight winners… and not one closed loser… in 18 months.
However, I cannot maintain this kind of track record with thousands of investors following our recommendations.
So we are going to be raising the price on a Private Wealth Advisory subscription from $199 to $249 at the end of the month.
However, you can try Private Wealth Advisory for 30 days today, for just 98 cents.
If you find that Private Wealth Advisory is not for you, just drop us a line and you won’t be charged another cent.
To take out a 30 day trial to Private Wealth Advisory for just 98 cents…
Best Regards
Graham Summers
Chief Market Strategist
Phoenix Capital Research
Our FREE e-letter: http://gainspainscapital.com/
Follow us on Twitter: http://twitter.com/GainsPainsCapit
