Best of the Week
Most Popular
1. The Trump Stock Market Trap May Be Triggered - Barry_M_Ferguson
2.Why are Central Banks Buying Gold and Dumping Dollars? - Richard_Mills
3.US China War - Thucydides Trap and gold - Richard_Mills
4.Gold Price Trend Forcast to End September 2019 - Nadeem_Walayat
5.Money Saving Kids Gardening Growing Giant Sunflowers Summer Fun - Anika_Walayat
6.US Dollar Breakdown Begins, Gold Price to Bolt Higher - Jim_Willie_CB
7.INTEL (INTC) Stock Investing to Profit From AI Machine Learning Boom - Nadeem_Walayat
8.Will Google AI Kill Us? Man vs Machine Intelligence - N_Walayat
9.US Prepares for Currency War with China - Richard_Mills
10.Gold Price Epochal Breakout Will Not Be Negated by a Correction - Clive Maund
Last 7 days
Stock Market Increasing Technical Weakness - 22nd July 19
What Could The Next Gold Rally Look Like? - 22nd July 19
Stock Markets Setting Up For A Volatility Explosion – Are You Ready? - 22nd July 19
Anatomy of an Impulse Move in Gold and Silver Precious Metals - 22nd July 19
What you Really need to Know about the Stock Market - 22nd July 19
Has Next UK Financial Crisis Just Started? Bank Accounts Being Frozen - 21st July 19
Silver to Continue Lagging Gold, Will Struggle to Overcome $17 - 21st July 19
What’s With all the Weird Weather?  - 21st July 19
Halifax Stopping Customers Withdrawing Funds Online - UK Brexit Banking Crisis Starting? - 21st July 19
US House Prices Trend Forecast 2019 to 2021 - 20th July 19
MICROSOFT Cortana, Azure AI Platform Machine Intelligence Stock Investing Video - 20th July 19
Africa Rising – Population Explosion, Geopolitical and Economic Consquences - 20th July 19
Gold Mining Stocks Q2’19 Results Analysis - 20th July 19
This Is Your Last Chance to Dump Netflix Stock - 19th July 19
Gold and US Stock Mid Term Election and Decade Cycles - 19th July 19
Precious Metals Big Picture, as Silver Gets on its Horse - 19th July 19
This Technology Everyone Laughed Off Is Quietly Changing the World - 19th July 19
Green Tech Stocks To Watch - 19th July 19
Double Top In Transportation and Metals Breakout Are Key Stock Market Topping Signals - 18th July 19
AI Machine Learning PC Custom Build Specs for £2,500 - Scan Computers 3SX - 18th July 19
The Best “Pick-and-Shovel” Play for the Online Grocery Boom - 18th July 19
Is the Stock Market Rally Floating on Thin Air? - 18th July 19
Biotech Stocks With Near Term Catalysts - 18th July 19
SPX Consolidating, GBP and CAD Could be in Focus - 18th July 19
UK House Building and Population Growth Analysis - 17th July 19
Financial Crisis Stocks Bear Market Is Scary Close - 17th July 19
Want to See What's Next for the US Economy? Try This. - 17th July 19
What to do if You Blow the Trading Account - 17th July 19
Bitcoin Is Far Too Risky for Most Investors - 17th July 19
Core Inflation Rises but Fed Is Going to Cut Rates. Will Gold Gain? - 17th July 19
Boost your Trading Results - FREE eBook - 17th July 19
This Needs To Happen Before Silver Really Takes Off - 17th July 19
NASDAQ Should Reach 8031 Before Topping - 17th July 19
US Housing Market Real Terms BUY / SELL Indicator - 16th July 19
Could Trump Really Win the 2020 US Presidential Election? - 16th July 19
Gold Stocks Forming Bullish Consolidation - 16th July 19
Will Fed Easing Turn Out Like 1995 or 2007? - 16th July 19
Red Rock Entertainment Investments: Around the world in a day with Supreme Jets - 16th July 19
Silver Has Already Gone from Weak to Strong Hands - 15th July 19
Top Equity Mutual Funds That Offer Best Returns - 15th July 19
Gold’s Breakout And The US Dollar - 15th July 19
Financial Markets, Iran, U.S. Global Hegemony - 15th July 19
U.S Bond Yields Point to a 40% Rise in SPX - 15th July 19
Corporate Earnings may Surprise the Stock Market – Watch Out! - 15th July 19
Stock Market Interest Rate Cut Prevails - 15th July 19
Dow Stock Market Trend Forecast Current State July 2019 Video - 15th July 19
Why Summer is the Best Time to be in the Entertainment Industry - 15th July 19
Mid-August Is A Critical Turning Point For US Stocks - 14th July 19
Fed’s Recessionary Indicators and Gold - 14th July 19
The Problem with Keynesian Economics - 14th July 19

Market Oracle FREE Newsletter

Top AI Stocks Investing to Profit from the Machine Intelligence Mega-trend

American Billionaire Warns To Get Out of the Stock Markets and Run To Gold

Stock-Markets / Stock Markets 2016 May 08, 2016 - 09:00 PM GMT

By: Jeff_Berwick

Stock-Markets

Billionaire trader, Stanley Druckenmiller, recently stated that the current situation in the global economy is similar to the situation on the eve of the crisis of 2008.

At the Ira Sohn Investment Conference in New York, he said, “The bull market is exhausting itself… The Fed has borrowed from future consumption more than ever before. It is the least data dependent Fed in history. This is the longest deviation from historical norms in terms of Fed dovishness than I have ever seen in my career.”


And Druckenmiller was quoted by CNBC, saying, “This kind of myopia causes reckless behavior.”

He warned that people should get out of the stock market and buy gold.

We agree with him, of course.  But, it got us to thinking about how many Americans, or other Westerners, own gold at this crucial time.

It’s impossible to know what your average Westerner personally owns in precious metals.  Certainly, the amount of Americans that hold stocks, either directly or through pension and mutual funds, is much higher.  Some estimates are that nearly half of Americans own stocks in one way or another.  But, estimates of the amount of Americans who own precious metals seem to range between 1-9%… and from my estimation, the number is likely much closer to 1% than it is to 9%.

If you were to ask average Americans, coming from an NFL game, or on their way to work, whether they owned precious metals, I think it’d be a rare person who says yes.

Most don’t even seem to recognize things like silver as having any value… or at least, in this part of California where Mark Dice offered people a 10 ounce silver bar (current value over $150) or a chocolate bar ($1) and had no takers on the silver.

The Wall Street Journal asked a number of investment “experts” if they think people should own gold as an investment.  Their responses included:

  • “I hate gold as an investment. It just sits there and glitters.”
  • “I personally have never held gold, nor advised any of my clients to hold it.”
  • “No, gold doesn’t belong in the portfolio of the average U.S. investor. “
  • “I recommend gold for wedding rings but not for investors’ portfolios.”

And I particularly liked this quote from one of the investment geniuses, meant as a reason not to own the yellow metal, “Gold is only worth what another party is willing to pay for it.”  Ya, like EVERYTHING else in the world.

But, what is staggering about their views on gold is how they don’t see it as a good investment despite how gold has performed for the last 16 years:

In terms of every major fiat currency in the world, it has been stellar.  If you could get those kind of returns in anything you should be knocking people out of your way to get to it!

Yet, your average American doesn’t seem to know much or care about it… and your average government-registered financial advisor talks about it like it is kryptonite. And this, at a time when people like Druckenmiller are saying we are on the verge of a 2008-like crisis event…

Note how gold fared in 2008/2009 during the last major crisis event that saw stock markets get cut in half in value.

Gold has just emerged from a 3 year pullback in its bull market (in terms of US dollars that is… it only had a 1 year pullback in other currencies – during 2013).  And gold stocks have begun to fly.  I haven’t looked at every sector in every market in the world, but if any other sector has risen more than 100% in the last 4 months, I haven’t heard about it.

And still, no one is talking about it.

This is fantastic news… because if an investment you own has skyrocketed and it is on the front page of every newspaper in the world and your taxi driver is buying it, then you know it is time to sell… but this is not the case for gold, silver and precious metals mining stocks.

It’s been a stealth boom.  And one that we think is just beginning.  A time will come when your taxi driver will be telling you about all the gold mining stocks he just bet his mortgaged house on… but that is still far off.

I even have a personal story that shows this exact situation.

In January I told my mom, who isn’t on the internet and doesn’t even know what I do, that she should buy gold and silver.  She told me, “Oh, I don’t know, that sounds risky.”

I managed to convince her to just put 5-10% of her net worth into gold, silver and some precious metals shares. I would have preferred she put closer to 50%, but she saw it as being too risky.

Her stock portfolio is now up 100% since then and her overall net worth increased by more than 20%.  Not bad!  But it is pretty telling that it was such a hard sell to the mother of the Dollar Vigilante!  You’d think my immediate family might listen to me… but then again, they thought I was crazy for quitting my job at a bank in 1994 to start an internet company… that went on to be worth $240 million.

Of course, we have thousands of other examples from our subscriber base of the same story of people who heeded our advice recently and have done spectacularly.  Here is just one of many subscriber’s comments from yesterday in our private subscriber’s only Facebook Group thanking TDV’s Senior Analyst, Ed Bugos:

Just through subscribing to the TDV newsletter, she made more in six weeks than her government registered financial advisor did for her in eight years!  It’s no surprise if her advisor was similar to the ones we listed above.  They are mostly clueless.

Wily traders like Druckenmiller, on the other hand, have made billions knowing what is really going on. Meanwhile, your average financial advisor probably took some government courses “educating” him on Keynesian economics and then went to work for a big corporation, like Goldman Sachs. Such firms sell you stocks and bonds in the companies that pay them for financings and distributing their stocks and bonds to the sheeple. Undisclosed conflicts of interest are everywhere.

Take control of your own financial future and subscribe to TDV (click here for more) to make sure you get the best information and analysis from people who have no other interest except to make sure their subscribers profit. If our insights don’t work, we go out of business… unlike Wall Street, which can lose most of their client’s life-savings and then get a bail-out of trillions of dollars from their friends to do it all over again… and they are.

Anarcho-Capitalist.  Libertarian.  Freedom fighter against mankind’s two biggest enemies, the State and the Central Banks.  Jeff Berwick is the founder of The Dollar Vigilante, CEO of TDV Media & Services and host of the popular video podcast, Anarchast.  Jeff is a prominent speaker at many of the world’s freedom, investment and gold conferences as well as regularly in the media.

© 2016 Copyright Jeff Berwick - All Rights Reserved Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

Jeff Berwick Archive

© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules