Most Popular
1. Banking Crisis is Stocks Bull Market Buying Opportunity - Nadeem_Walayat
2.The Crypto Signal for the Precious Metals Market - P_Radomski_CFA
3. One Possible Outcome to a New World Order - Raymond_Matison
4.Nvidia Blow Off Top - Flying High like the Phoenix too Close to the Sun - Nadeem_Walayat
5. Apple AAPL Stock Trend and Earnings Analysis - Nadeem_Walayat
6.AI, Stocks, and Gold Stocks – Connected After All - P_Radomski_CFA
7.Stock Market CHEAT SHEET - - Nadeem_Walayat
8.US Debt Ceiling Crisis Smoke and Mirrors Circus - Nadeem_Walayat
9.Silver Price May Explode - Avi_Gilburt
10.More US Banks Could Collapse -- A Lot More- EWI
Last 7 days
Bitcoin Crypto Bubble Mania! - 4th Mar 2024
US Interest Rates - When WIll the Fed Pivot - 1st Mar 2024
S&P Stock Market Real Earnings Yield - 29th Feb 2024
US Unemployment is a Fake Statistic - 29th Feb 2024
U.S. financial market’s “Weimar phase” impact to your fiat and digital assets - 29th Feb 2024
What a Breakdown in Silver Mining Stocks! What an Opportunity! - 29th Feb 2024
Why AI will Soon become SA - Synthetic Intelligence - The Machine Learning Megatrend - 29th Feb 2024
Keep Calm and Carry on Buying Quantum AI Tech Stocks - 19th Feb 24
How to Profit from the Global Warming ClImate Change Mega Death Trend - Part1 - 17th Feb 24
Why Rising Shipping Costs Won't Cause Inflation - 17th Feb 24
Intensive 6 Week Stock Market Elliott Wave Training Course - 17th Feb 24
INFLATION and the Stock Market Trend - 17th Feb 24
GameStop (GME): 88% Shellacking Yet No Lesson Learned - 17th Feb 24
Nick Millican Explains Real Estate Investment in a Changing World - 17th Feb 24
US Stock Market Addicted to Deficit Spending - 7th Feb 24
Stocks Bull Market Commands It All For Now - 7th Feb 24
Financial Markets Narrative Nonsense - 7th Feb 24
Gold Price Long-Term Outlook Could Not Look Better - 7th Feb 24
Stock Market QE4EVER - 7th Feb 24
Learn How to Accumulate and Distribute (Trim) Stock Positions to Maximise Profits - Investing 101 - 5th Feb 24
US Exponential Budget Deficit - 5th Feb 24
Gold Tipping Points That Investors Shouldn’t Miss - 5th Feb 24
Banking Crisis Quietly Brewing - 5th Feb 24
Stock Market Major Market lows by Calendar Month - 4th Feb 24
Gold Price’s Rally is Normal, but Is It Really Bullish? - 4th Feb 24
More Problems in US Regional Banking System: Where There's Fire There's Smoke - 4th Feb 24
New Hints of US Election Year Market Interventions & Turmoil - 4th Feb 24
Watch Consumer Spending to Know When the Fed Will Cut Interest Rates - 4th Feb 24
STOCK MARKET DISCOUNTING EVENTS BIG PICTURE - 31st Jan 24
Blue Skies Ahead As Stock Market Is Expected To Continue Much Higher - 31st Jan 24
What the Stock Market "Fear Index" VIX May Be Signaling - 31st Jan 24
Stock Market Trend Forecast Review - 31st Jan 24

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Take Advantage When Markets Succumb to Fear

Stock-Markets / Financial Markets 2022 May 10, 2022 - 03:12 PM GMT

By: MoneyMetals

Stock-Markets

Last Wednesday’s rate hike by the Federal Reserve failed to convince investors that the central bank can tame inflation without wrecking the economy.

Subsequent remarks by Jerome Powell insisting that the economy isn’t vulnerable to recession were also unconvincing – especially given the Fed chairman’s lousy forecasting track record (“transitory” inflation has proven to be more like intractable inflation).

The good news for gold holders is that the safe-haven metal is holding up better than conventional financial assets. Stocks are breaking down at the same time as purportedly “risk-free” Treasury bonds are collapsing in value at a rate never before seen.

Sentiment gauges are showing extreme pessimism among the public. Most say the country is headed in the wrong direction and give President Joe Biden terrible marks for his handling of the economy.



Meanwhile, the American Association of Individual Investors survey has shown multi-year lows in the past two weeks in the percentage of the public bullish on stocks.

Contrarians are eying buying opportunities.

As legendary investor Warren Buffett advised, “Be fearful when others are greedy and be greedy when others are fearful.”

With so many asset classes under duress – stocks, bonds, cryptos, metals – a snap-back “everything” rally could ensue at any time.

But bear markets often bring furious rallies that ultimately amount to nothing. Investors looking for long-term buying opportunities should therefore be careful to pick assets with solid fundamentals.

It’s hard to say that about bonds, which still sport negative real yields. It’s also hard to find great value in equities which have much further to fall if the economy does indeed slip into recession.

Good relative value and safe-haven wealth protection can be found in precious metals markets. Though they aren’t at the sort of oversold extremes seen, for example, during the COVID panic of 2020, they may be nearing the end of consolidation ranges.

The buying opportunity presented in spring 2020 was a once in a lifetime opportunity for assets like silver. Silver got historically oversold versus just about everything, including gold. The gold silver ratio spiked to as high as an unprecedented 130:1.

Near the absolute bottom of the market on March 17th, we wrote, “Never has silver been as cheap to acquire in real terms as it is today.”

That article suggested we had hit "peak fear" – out of which “a new uptrend in silver, and a corresponding narrowing of the gold:silver ratio, can be expected to extend for years.”

The very next day, March 18th, silver hit its absolute low point for the year at $11.75/oz.

Being greedy while others were fearful certainly paid off then.

That said, now may not be the time to go “all in” recklessly. It’s possible for an engineered selling rout in highly leveraged futures markets to slam metals prices one more time – especially if scared money flows out of equities and into U.S. dollars.

However, those who accumulate some bullion now and some later with an eye to average in while prices remain attractive stand to be rewarded when the trend turns bullish.

The easiest way to implement a discipled plan of regular bullion purchases is to sign up for Money Metals’ monthly Savings Plan. It’s also extremely cost-efficient: monthly plan participants enjoy even lower premiums on eligible products than those available to the general public.

Stefan Gleason is President of Money Metals Exchange, the national precious metals company named 2015 "Dealer of the Year" in the United States by an independent global ratings group. A graduate of the University of Florida, Gleason is a seasoned business leader, investor, political strategist, and grassroots activist. Gleason has frequently appeared on national television networks such as CNN, FoxNews, and CNBC, and his writings have appeared in hundreds of publications such as the Wall Street Journal, Detroit News, Washington Times, and National Review.

© 2022 Stefan Gleason - 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.


© 2005-2022 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