Virtually every financial bubble ever eventually needed and reached a consistent mantra or narrative to help spur the mass of investors to follow suit and not feel contrarian crazy buying into it.
It is, for this reason, we often see first-time bullion buyers prefer to purchase their bullion as spot prices rise as opposed to when spot prices underlying bullion values fall.
With investing or in speculations, one would likely prefer to acquire their asset and cost basis at lower prices, and therefore falling prices should perhaps be attractive to contrarian or value investors.
Then there is the momentum investor outlook or perspective. That you want to buy and swim with the rising tides, as those middle gains in any bull market are perhaps the easiest to catch.
In the video below we have highly respected financial analyst and economist, David Rosenberg, giving a beginning 2020s narrative for why we are going to likely see the start of a potential gold bubble in the years to come.
And as a likely laggard to typically outperform gold, a silver bubble perhaps many multiples later, perhaps also moving to unprecedented in nominal US dollar term highs.
Of course, if the underlying fiat currency numerating all these narratives goes really wrong, you most likely will not want to be trading much bullion for fiat currency at all.
Really, the financial future is unknown, but it also interesting to hear it being discussed and flushed out right now, given many of the fundamental drivers currently.
Have a listen to Mr. Rosenberg make much sense as to how institutional and average investors will rationalize gold bullion buying (and as a result too, much silver bullion buying) at much higher valuations than they currently are at today.
GOLD BUBBLE 2020s? | SILVER BUBBLE 2020s? | Narrative Heading in...
Rather than get into the messy and complex details at to what a GOLD BUBBLE or SILVER BUBBLE might look like in terms of future valuations and or historic monetary values.
We simply want to leave you with many of the sound factual points Rosenberg illustrates in this interview.
Many of those same facts and arguments will be backlinked with similar insights we have documented here on this SD Bullion blog.
- Gold vs interest rates, as low as real interest rates have gotten, they are going to go even lower.
- Over 30% of the global investment-grade bond market is negative-interest-rate yielding. Over $16 trillion in negative interest rate yielding bonds trading with negative nominal yields (much worse in real terms).
- That is going to continue ^ over the next year or two (into the years 2020, 2021).
- Rosenberg rattles off a whole slew of EU nations either in and or moving into NIRP, meanwhile likely the ECB won't sell gold bullion into this next escalating gold price phase (like they did in collectively selling about 1 year's world supply of gold over the 2000-2011 gold price runup). If anything the EU like the east (Russia, China) will become larger net gold bullion buyers.
- He confirms, following the interviewee's scoffing at a $3,000 oz gold question, with simple logic. His quick compelling narratives for a future gold price bubble building.
- Like other asset classes (US stocks and global bond markets going to unprecedented levels). So too, Rosenberg believes, will future gold price history reveal unprecedented price levels to come.
- Central banks response to the coming global recession will likely spur gold prices further.
- The next QEs is basically government debt monetization which currently goes by the Modern Monetary Theory (MMT) moniker. Helicopter money is coming.
- This timing and scenario being when a gold bubble likely begins forming, a gold mania phase if you will. It is then you will want to begin a bit of selling gold, silver, and perhaps other precious metals positions. Taking some profits and moving that capital to work elsewhere.
- David Goldberg, oh wait no, the gold bubble is nowhere these fiat US dollar levels. Call us when we hit $3,000 oz gold. Without tongue in check, we meant David Rosenberg. He ends this interview with a bit on how silver will likely also benefit along with gold.
Silver, in order for it to move into a silver bubble in this coming phase. Silver prices are going to have to reach some really historic silver price levels to be considered a financial bubble.
The current near $20 oz price for silver is historically very low when considering real price inflation compound the last 40 years,
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