The Coming Market Crash Will Set Off The Biggest Gold Panic Buying in History
The comments above & below is an edited and abridged synopsis of an article by SRSRocco Report
Leverage in the economic system has become so extreme that investors have no idea of the disaster in store during the next stock market crash. The 2008 crash was merely a warm up for the continued disintegration of the global financial system.
While the US and global economies have continued as usual since the Fed and central banks stepped in and propped up the collapsing markets in 2008, this was a one-time deal that can’t be used again.
To indicate the amount of leverage in the markets, Roberts quotes a post by Michael Lebowitz of RealInvestmentAdvice.com. In it, he stated:
“The graph… highlights that valuations using this measure dwarf any prior valuation peak since at least the 1950s. At over 350% above the mean, stock investors are currently paying significantly more for a unit of economic growth than at any time in the last 70 years…”
“[S]tock valuations are at or near historical highs… investors…may be unaware that today’s valuations… defy comparison with any prior period since the Great Depression…investors are paying over 3 times the average and almost twice as much as the prior peak for a dollar of economic growth.”
This is much higher than in 1999, or even 1929. Lebowitz is suggesting that investors are paying over 3 times the average for a dollar of economic growth. The higher it goes, the bigger the correction and return back to normal levels.
When the markets correct, they will correct violently, or most likely crash at some point. Thus, the next market crash will cause the largest panic gold buying in history.
Up for discussion: Setting up the foundation for the coming gold panic buying market; global gold ETF demand—the nasty wildcard; total gold investment demand fluctuates due to fickle retail investors; and what record gold investment will look like when the markets finally crash.