The Investment Secret of the 2000s… And it has But Started
Stocks are the only asset class on the horizon for most investors. However, we are at the point when increasing amounts of debt and money printing are required to fuel the stock market. It is in bubble territory and approaching the overvaluation level. However, we are not yet in the super-bubble area of 2000, and there is room for this bubble to grow yet bigger.
But even if stock markets become more overvalued, they are now at levels that represent unacceptable risk.
Although stocks and bonds represent high risk, few investors look for other opportunities. This is why most investors have missed the best-performing asset class in this century, which is p
recious metals. Most investors don’t look at gold as an investment. Gold is regarded as a volatile commodity and does not appear in the average investment portfolio. Less than 0.5% of world financial assets are invested in gold today. This extremely low level of gold investment shows that few people understand gold, and even fewer look at the performance of gold. Most investors don’t have a clue how gold performed in the 2000s. If they did, they would realize that they have missed the best investment in the last 16 years by a large margin.
Von Greyerz discusses how stocks will lose 95% against gold; the insatiable Silk Road demand for gold; gold demand in China, Russia, Turkey and India; how institutional demand for gold will treble; and fundamental and technical factors pointing to higher gold in 2017.
For investors who hold physical gold and silver, 2017 should be an interesting year. For the ones who don’t, $1,200 gold and $17 is a bargain compared to what we will see in the next few years. But the most important reason for holding physical gold and silver is not the potential capital appreciation, but as a hedge against a bankrupt financial system.