Black Swans, Ordinary Swans and Metals
The comments below are an edited and abridged synopsis of an article by GE Christenson
Expect more of what happened in 2020 in 2021—massive debt, central bank printing and dollar devaluation, while consumer prices and inflation rise. Gold and silver have been insurance and protection for thousands of years; they will shine in 2021. Regression to the mean suggests lower prices for stocks and higher prices for commodities. Black swan events are, by definition, unpredictable. But ordinary white swans events are easy to see and predict.
Up for discussion: Consider ‘ordinary’ or ‘white’ swans; what about black swans; the white swan events are easy to predict; what can we do; black swan questions; and conclusions.
Those conclusions are:
Expect massive increases in debt, central bank printing, dollar devaluations and consumer price inflation. How much they increase depends upon our politicians, central bankers and their inflationary policies.
As 2021 begins, gold and silver are priced low when compared to the S&P 500 Index, the NASDAQ 100 Index, M3, national debt, and GDP. Gold and silver will shine until at least 2025—2026. Stocks could regress to their mean (lower).
Gold and silver are not the best answer for all situations, but they have protected people for thousands of years. They are important in today’s environment.