- Bad news is good news is back…
- “Empirical” evidence disproving Wall Street…
- Robert Kiyosaki’s new warning reveals the shocking truth about the economy they don’t want you to know. Don’t be left behind. Click here to get his urgent action plan now!
Dear Reader,
Mr. Mark Hulbert of Market Watch:
- Investors are exuberant not just in the stock market, but in the gold and bond markets as well. That has hardly ever happened before, and it doesn’t bode well for any of these asset classes.
Why is such cross-asset exuberance so rare?
- The preconditions for a rally in one asset class often lead to weakness in one or more of the others. For example, what causes the bond market to rally (usually lower inflation and interest rates) is not generally conducive to a strong gold market.
- Similarly, the preconditions for a strong equity rally (an economy firing on all cylinders, for example) often contribute to higher inflation and interest rates, which, in turn, usually lead to a weak bond market…
- Market timers in each category currently are more bullish than they’ve been on at least 80% of days since 2000. This has happened before on just 0.3% of trading days.
Thus… the “everything bubble.”
Look to the Fed
The Federal Reserve’s monetary deliriums of recent years have blown combustible fluid into every asset going — stocks, bonds, gold, cryptocurrencies, housing.
This “everything bubble” requires additional fluids, additional kerosene, to remain aloft.
Absent a continual pumping in, gravity works its wicked will.
The thing will fall back down to solid earth, where it will come to inevitable and terrible grief.
Thus the everything bubble — I hazard — must end in an everything burst.
When? I have no answer of course. Nor, for the matter of that, does anyone else.
I cannot even state with certainty that the everything bubble will rupture.
I merely consult history. And history suggests, powerfully, that it will.
And I hazard it is preferable to exit one year earlier than one minute too late.
Into which safe harbor will sea-tossed investors seek refuge?
Where Can Investors Seek Refuge?
Many consider gold the safe harbor of choice. Yet when gold itself is the subject of exuberance… and therefore vulnerable to rupture?
Perhaps in this particular instance gold offers no safe haven — in the short run at least.
I am fond of gold not because it may offer profitable return.
I am fond of gold because I believe it is the money of freedom.
Ambitious governments loathe gold.
That is because gold cannot be printed or fanned into existence at a keystroke.
Yet gold is no longer money. It is instead an investable asset.
As such, it can be subject to the same exuberance that envelops other asset classes.
Yet could one precious metal withstand a general bursting of the everything bubble?
Perhaps the answer is yes.
It may be gold’s neglected monetary sibling — silver.
The Case for Silver
Gold has shown silver its dust in recent times.
The gold-silver ratio, so-called, averaged 47:1 during the 20th century.
That is, 47 ounces of silver fetched one lone gold ounce.
The same ratio has ranged between 50:1 and 70.1 during the 21st century/
What is the present gold-silver ratio?
The answer is 88:1.
Thus silver is severely undervalued relative to gold.
Meantime, silver supply is diminished, while silver demand is not.
Market observer Arthur Frentzel, in Seeking Alpha:
- There has been a [silver] supply deficit since 2021…After decades-long underinvestment in silver, it could take decades to scale up silver production to meet demand as the uses for silver increase…
- While gold has been the most revered precious metal for thousands of years, silver is the most functional, especially in electronics. According to the World Silver Survey… industrial use of silver grew from 512 million ounces in 2020 to 681 million ounces in 2024 — a 33% increase…
- Demand for silver is increasing rapidly in electronics, fueled by growing electrification in everything from electric vehicles to electronics used in the AI buildout underway.
Silver May Be Declared a “Critical Mineral”
And do not neglect silver demand from the defense industry:
- An often-overlooked use of silver is in the defense industry, which uses an unknown quantity of silver in advanced military hardware. Accordingly, the U.S. Department of Interior recently added silver to its 2025 Draft of Critical Minerals.
- While the final version of the “Draft” has not yet received approval, it appears highly likely that silver will be included. As a “critical mineral,” the U.S. would begin stockpiling silver inventory, adding significant demand.
Thus I present the overlooked case for silver.
I offer no official advice however. I merely tack the preceding to the community bulletin board.
You are free to stop and take it aboard… or to push along, uninterested.
My counsel comes of course free of charge.
Yet as I concede freely:
You get what you pay for.
Regards,
Brian Maher
for Freedom Financial News
