This is a critical update from one of the best financial commentators I know, a good friend of ours, Mr. Tom Beck, who runs PortfolioWealthGlobal.com and we’re excited to share this one with you!
STACK OUNCES – All Yield Pairings Are Now Inverted
Oh, they’re tapping it down with everything they got, but gold and silver look incredibly strong here. I haven’t seen them this healthy in many years. The establishment and the banks are out of their league at this point – they’d better conserve their energy.
Silver is officially entering a bull market, holding above $17.21/ounce and the model portfolio is performing extremely well.
I want this bull market to change your destiny for good and put us all on another level, a higher one, financially.
Gold is up over 18% this year and up over 25% since I called the bottom on it in September 2018. The S&P 500 has been flat since September and is up only 10% in 2019.
One question that I get asked a lot is how governments can return to a gold standard, and my reply is that that’s THE LAST THING I want to see. In a gold standard, the price of gold is fixed, whereas now we get to capitalize on the stupidity and corruption of politicians.
On top of that, what good is a gold standard unless you have the right laws in place to enforce it? Richard Nixon should have been imprisoned for what he did, decoupling currencies from gold.
The best way to own gold is by having it under your name, not by storing it in the government’s vaults, where no one audits it for decades.
This is especially true now that the most important pair of yield durations has inverted, a phenomenon that has indicated ALL previous recessions, without any false signals. Take a look:
As you can see, the yield stays inverted for a few months and up to a year before it steepens, at which point the recession hits.
In other words, we have time, but the clock is counting backwards from here on.
Trump has delayed the September tariffs, and I have a pretty good idea why, but the damage is done. Investors are not buying the dip. In fact, stocks are WAY DOWN. The next phase is the September rate decision for the FED, along with the Treasury massive bond issuance.
After that, there’s nothing holding up the dollar. The demand for it is set to begin cooling down. Look, the fact of the matter is that both gold and silver are able to perform as well as they are, even with the dollar shortage we’re seeing, globally. It’s remarkable.
When swap premiums are negative, as they are now, the dollar is really strong. You can see that throughout the 2000s, the spread was positive, which, naturally, caused gold to go much higher. This strength, the one we’re seeing now, is coming at a time when the dollar rules the world. I think this is as strong as I’ve ever seen gold.
In the 2000s, the dollar was in a bear mode. In 2019, it is as strong as it’s been in 20 years, and STILL gold is above $1,500/ounce.
The Trump tariffs delay move is a clear signal, a gesture of open-mindedness. Trump knows that China is bleeding. In negotiations, there’s no need for the other guy to have a heart attack before he signs the dotted line. In fact, President Xi is probably respecting Trump more after this tactic.
U.S. growth is now officially slowing and I expect the dollar to weaken, to show genuine cracks. Silver is going to catch fire here and it will clinch the $18.00/ounce level in a matter of weeks.
The smart money is now bearish:
The best way to invest in silver is by going LONG mining stocks. Silver attracts speculative money – lots of it – into the mining world. You’re going to keep experiencing MASSIVE GAINS!
I’ve got some mind-boggling news coming up and I consider it the most serious publication I’ve ever released in my career.
Be on the lookout!
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