The Last Cheap Asset...
While everything else in the financial world (including stocks, bonds, and real estate) has soared, There is one asset you can still buy at 1990 prices. And it has created an incredible investment opportunity.
It's hard to believe, but it's true. Commodities are still trading at 1990 prices! These are natural resources like oil, copper, coal, aluminum, and are the building blocks of our economy and the world. And today you can own the rarest and most sought-after commodities of all - gold and silver - at a relative value the same as they were in 1990.
This is why Goldman Sachs released a report in May that said the "strategic case for owning commodities has rarely been stronger."
And according to Business Insider, "Commodities seem to be more undervalued than any time in the past 20 years."
Billionaire Jeffrey Gundlach, who founded his own mutual fund company, says there are massive gains to be made in commodities. According to Gundlach, "What I mean by massive is not a 30% gain, it is 100%, 200% or even 400%."
Dr. Sjuggerud, who probably has a better track record over the past 18 years than anyone on or off Wall Street, says it's...
“America’s next big bull market,” Gains of 500% or more are possible over the next few years."
"If you missed out on the big real estate, bond, and stock market gains in recent years... don't worry. This looming bull market in gold and silver gives you a second chance..."
"Thanks to extremely low starting price levels and a decade of easy money policies by the worlds central banks. We could see gains of 500% or even triple-digit returns of 1,000% or more, during the next few years." -True Wealth, June 2018.
Billionaires such as Warren Buffett, Paul Tudor Jones, Carl Icahn, George Soros, and Ray Dalio are establishing positions now. And one of the best investment strategies is following the 'smart money' who have a track record of beating the market... and then buy what they're buying.
Today, even some of the largest and most successful hedge fund managers are all buying the same investment at the same time. And it happens to be gold.
John Paulson; Made his investors 15 billion as the subprime housing crisis unfolded in 2008-2009.
Ray Dalio; Founder or the worlds largest hedge fund, Bridgewater and Associates. The fund has made 50 billion for its investors, more than any other hedge fund.
These investors haven't said why they're buying gold. But we know why they are buying... You only buy something for one reason. You think it will go up in value. They are all buying because they are expecting to see massive gains during the next few years.
The reason we follow the world's most successful investors is because we don't have to do all of the research ourselves. They spend tens of millions of dollars on research every year. We can profit just by following them.
Remember, they have hundreds of other investments they could make. Yet they choose to allocate a good portion of their portfolios to gold. It would be prudent to profit off their multi-million dollar research by buying gold as well.
Here are a few reasons why...
The average gold production cost is about $1,100 per ounce. This is major support and a 'bottom' for gold, Miners would begin reducing production if prices dropped below $1,100. The ensuing shortfall in supply would cause a spike in prices.
Example; In 2001 Palladium supplies were interrupted and prices soared more than 1,000% rising from $80 an ounce to over $1,000 in just 7 months.
The premium price above gold's production cost is only 15% today, the lowest since 2008. Gold normally has a 100% premium above cost. This means that gold is about half of its historic premium levels or trading at nearly a 50% discount.
Gold is Cheap and Stocks are Expensive!
The relationship between stocks and commodities reached a historic extreme last year. Take a look...
Commodities have only been this cheap relative to stocks two other times in the past 50 years. And in both cases, commodities dramatically outperformed stocks over the next several years.
"We've never seen a market start off such a low base. All of that means that the coming boom could be bigger than any we've ever seen before." - True Wealth, June 2018 *
Gold To Monetary Base Ratio
King World News: '"There is a massive chasm between the Fed’s balance sheet and today’s gold price."
Time and again throughout history, gold has been revalued to account for all excess currency in circulation. Today, to account for all the U.S. dollars printed by the Federal Reserve, gold would have to be revalued at more than $20,000 per ounce!
In fact, when gold begins its re-accounting of the USD monetary base, prices will have to increase by at least 5 times from current levels just to catch up with the new dollars printed since 2008.
Credit, Debt and Stock market Bubbles!
During the last 9 years the Federal Reserve has printed 4 trillion new dollar bills. And our Federal debt has ballooned from 8 trillion to 21 trillion dollars. Debt, deficits, and money creation continues to soar. Warren Buffet warned what would happen after we racked up all of these debts.
"Sooner or later the government, facing ever greater payments to service debt, will decide to embrace highly inflationary policies – that is, issue more dollars to dilute the value of each."
Stock Market Bubble.
The stock market is near all-time highs with deteriorating underlying fundamentals. During the last few years, corporate debt has skyrocketed. As a result, we have a complete disconnect between stock prices and economic reality. In fact, Warren Buffett’s favorite valuation tool, which compares the total value of the stock market to GDP, says the market has never been more overvalued, never gripped by greater bubbled-out mania than it is right now.
Warren Buffet is notorious for almost never selling. His famous quip is, 'Our favorite holding period is forever.' and he practices what he preaches. Buffet rarely sells anything. He buys and holds that investment indefinitely. The most successful stock investor in modern history, Warren Buffet is selling, not buying stocks. Consider this...
- He didn't buy anything in 2017.
- He is stockpiling a mountain of cash. (116 billion dollars)
- He is now selling an asset that he would typically hold forever because another company made an absurdly high offer for the business.
It's true no one rings a bell at the top (or bottom) of any market. But it seems pretty clear from Buffet's actions that it's time to protect your retirement assets that are in stocks.
ALERT! One of the best private financial data services has just issued this shocking report...
June 27, 2018. "Historians still look back on the crash of 1929 and ask themselves, 'Could it have been predicted? Could it have been avoided?'"
The answer is, “Yes.”
Because just a few months before, in June, a very strange signal appeared in the markets.
It had never been seen before.
But for anyone who had been looking, it would have told them that trouble was brewing.
Fast forward to the mortgage crisis in 2008.
The collapse of the subprime loan market sent shock waves through the economy.
In just a period of three weeks, more than $19.2 trillion worth of household wealth had simply been wiped away.
Americans lost their homes, their jobs, and their life savings.
And historians would once again look back and wonder, “Could we have seen it coming?”
The answer is, again, “Yes.”
Because, just a few short months before the housing bubble collapsed, a strange market signal spiked.
It was the same one that had spiked before the Great Depression.
And if you had been looking for it, you would have known what was about to happen.
But it doesn’t stop there.
Before every major financial crisis in American history, including the crash of 1987 and the dot-com bubble, this signal has appeared.
Every time it does, in just a few short months, the economy collapses.
And millions of Americans lose their life savings.
Unfortunately, this signal has just appeared again!
It's called the Shiller CAPE Index.
It was pioneered by Robert Shiller, a Nobel Laureate and professor of economics at Yale. But you don’t need an Ivy League degree to understand it.
Simply put, the higher The CAPE Ratio is, the more the market is overvalued.
A normal CAPE is around 16 and a great CAPE score could be as low as 4.
Which means that you pay $4 in stock for every $1 of earnings.
When the CAPE Ratio is high, it means that people are speculating on the markets, using credit and leverage to buy securities, and driving up the price past their realistic values.
Right now, the ratio is at 32.92 – nearly the highest it’s ever been in U.S. history!
Which means for every $32 you spend to buy a stock in the markets, the company is only earning about $1.
That’s incredibly overvalued, and the stock market is more expensive now than it was before the Great Depression.
More expensive than it was before the crash of 1987.
And more expensive than it was right before the mortgage crisis of 2008.
Right now, The CAPE Ratio is positively screaming that we are on the verge of a massive crash.
It's going to be much bigger than the dot-com bubble of 2000…
Much bigger than the mortgage crisis of 2008…
And if you don’t take steps to protect yourself and your family now, you could lose everything."
We could think of at least 25 more reasons why there's never been a better time to buy gold and sell stocks than right now. But you get the picture. Gold is inversely correlated to stocks and currencies, So when they inevitably reverse, precious metals are going to begin their next major ascent.
We encourage you to take action now and protect your retirement assets from the unpredictable stock market.
Follow the 'smart money' and start now by repositioning 25% of your investment assets out of the unstable stock & bond market into gold & silver. Then place stop loss orders on all equities. Don't leave your retirement savings unprotected during these volatile economic times.
We are here to help. We can show you exactly what steps you must take now to position your portfolio for maximum profits and protection. For over 30 years we have helped thousands of investors protect and grow their assets intangible investments.
Go to Retirement-Saver.com and open your account today. It's simple and could be one of the most profitable financial decisions you'll make.
Since 1982 Liberty Financial has helped thousands of Americans convert their rapidly depreciating paper dollars into honest money - gold and silver, at discount prices.
We have been a market leader intangible investments for more than 30 years and can show you how to:
- Place physical precious metals into an IRA and have full control to trade them within your IRA.
- Buy wholesale and get up to 30% more gold & silver with the same amount of money.
- Have your existing bullion & coins positioned for maximum returns.
- Protect your assets and profit during these ever-changing & unpredictable economic times.
Liberty Financial is a 'Golden Rule' company providing the best customer service, timely advice and low prices in the marketplace.
Visit us online at retirement-saver.com. Or call us at (800) 723-8349