The "everything bubble" could soon burst, according to his work in the gold and copper markets. Case in point, the gold-to-silver ratio suggests increased volatility in financial assets and positive events for PMs investors.
The precious metals expert drills down into the widening divide between the BIS and the US policies, weighing up the physical and paper gold markets. Are there enough ingredients for the bullish gold and silver rally to unfold?
In time something will replace the dollar, just as the dollar replaced the pound sterling. But it’s a slow process and until it plays out, the US will keep the “exorbitant privilege.” Which, as I noted, isn’t always a privilege.
I’ve always stressed throughout my sixteen year analytical career that one must study the pillars of psychology and politics to truly understand the investment world. Currently, we are witnessing just how much politics affects gold and silver..
If the Northern Hemisphere was destroyed in a nuclear war, the Federal Reserve, JPMorganChase, and HSBC would get some brokers to Sydney, Rio de Janeiro, and Johannesburg to sell gold futures massively and drive the price down by at least 5%.
