This article was contributed by Lior Gantz of The Wealth Research Group.
WealthResearchGroup.com IS ON FIRE!
After issuing FOUR alerts, which resulted in +100% gains for his readers,
THE TRACK RECORD is amazing!
Over the weekend, they’ve sent us this CRITICAL UPDATE on what’s happening with gold and silver, at the moment:
Our END TARGET for gold in this particular bull market is between $3,200 and $3,900. As such, we still see between 60% and 95% upside for gold. Silver, on the other hand, is an altogether DIFFERENT BEAST.
Silver’s market size is so small, when it comes to bullion investment, that it wouldn’t take more than a FEW LARGE TRADERS to rock the boat and shake this industry, flipping it on its head.
Last Friday, APPL’s market cap grew by $170B in a single day. It is again the most valuable corporation out there. For reference, MCD is worth $145B, KO is worth $202B, PEP is worth $190B, T is worth $210B and CVX is worth $156B. Apple Inc. is worth more than double what all of these iconic businesses are worth, COMBINED.
Silver bullion ownership, if we add up all of the ounces owned by the public, would total around $70B. It’s A TINY MARKET!
In comparison, gold’s entire size is around $15T, more than 100-times larger.
Courtesy: U.S. Global Investors
There are more +65-year-olds ALIVE TODAY than at any other point in human history. The bonds market, which pension funds used in the 1980s and 1990s to generate +7% returns, IS GONE.
Today, governments are telling you, POINT BLANK, that they will not pay investors if they wish to lend the treasury department their money. In fact, they will either return to you exactly what you gave them, a term called ZIRP (Zero Interest Rate Policy), or they’ll CHARGE YOU for keeping your cash with them and pay back less than borrowed, the term for which is NIRP (Negative Interest Rate Policy).
Governments are not about to CHANGE THAT, no matter if Biden or Trump win the presidency.
It’s not only governments that are operating and functioning without FILING for BANKRUPTCY only because of ZIRP and NIRP; Corporate America is also alive and kicking, thanks to CHEAP BORROWING COSTS.
Now, for the first time in nearly three decades, since the 1980s, a quarter of the country is going to apply for a mortgage. The banks will begin to ORIGINATE MORTGAGES to millennials, who are reaching their 30s and are forming families. The CURRENCY MULTIPLIER effect of money velocity and fractional reserve banking will kick into higher gear.
Courtesy: U.S. Global Investors
Inflation-adjusted, this bull market, which started in December 2015, DIDN’T BEGIN with a massive low point, like the ones in 1971 – 1980 or 2000 – 2011 did. At $1,053/ounce, gold never totally went away.
We can clearly see that between 1980 and 2000, a full 20 years went by, whereas between 2011 and 2015, only a four-year timespan separates. Between 1980 and 2000, gold’s price fell over 75%, whereas between 2011 and 2015, it only crashed by 45%.
The point is that unlike the 1970s, where a 2,400% gain was possible and in the 2000s, when a 600% was realistic, we’re probably NOT GOING to enjoy those types of returns. From bottom to top, we forecast 300% – 400% and we’re 90% into it.
I own PHYSICAL GOLD, come rain or shine, bull market or not. It’s part of my asset allocation model and it has proven to be an ENORMOUS ADDITION to my life. My expectation is that gold will deliver – on a long-term basis, an annualized compounded return of 6% – and act as a BETTER HEDGE than fiat currencies to my cash.
In this environment, in a bull market, gold is not the WINNING HORSE. The better returns will be with silver and with the mining stocks.
The gold/silver ratio is heading towards 40:1 – 60:1, so with a gold price of $3,200 – $3,900, silver’s PRICE TARGET is between $53 and $97.
Courtesy: Zerohedge.com
This chart truly SAYS IT ALL!
The world is not yet positioned in gold or silver and certainly not in mining stocks.
I’ve personally allocated a RIDICULOUSLY-HIGH sum of money towards junior miners and will be deploying more into them, effective immediately.
Expect some DRAMATIC NEWS on new opportunities in August – this is ADULT-ONLY TIME!
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