Sentiment in gold & silver is terrible right now, but to the contrarian investor, now may be exactly the time for a stake in gold & silver. Here’s why…
Jason Burack of Wall St for Main St interviewed first time guest, CEO & Co-Founder of http://GlobalProTraders.com , CFA holder, former FX trader, former money manager (bonds, equities, commodities), and former Multinational Executive / Treasurer, David Brady.
During this 40+ minute interview David lays out his thesis (based on his mosaic research of fundamentals, technicals, sentiment, Elliott Wave, macro analysis, etc) of why he thinks they the stock market will crash towards the end of 2018 or in early 2019.
David gives an excellent 15 minute or so summary of the global macro picture and why he thinks that the US Dollar is strengthening and, in the short term, will probably continue to rally against other currencies.
However, David is only short term bullish on the US Dollar. Long term, he thinks the US Dollar along with many other fiat currencies are going to be devalued perhaps in a coordinated way by central banks to deal with a global debt problem that continues to get worse.
David thinks that in the short term gold and silver could go lower based on a number of factors, but as stocks and currencies (especially the US Dollar) fall gold and silver will rally very strongly.
Jason suggests that if gold and silver continue lower for a few more quarters and oil prices stay at these levels or rise, then the margins for primary gold and silver miners will get worse and potentially collapse to a point where miners will have to make some very tough decisions about selling their companies, shutting down mines, etc
A few days ago David wrote an article about how he believes gold has not bottomed yet but how it will bottom in a few months as the US vs China trade war de- escalates.
Next, David discusses his thesis from his August 2nd article about why China is doing open market operations for the gold price in RMB terms.
To wrap up the interview, David lays out how economic and political leaders in the US have a dilemma coming in the near future about protecting 1)the US stock market, 2)the US bond market and 3)the US Dollar. According to Luke Gromen, the US can only protect 2 of those 3 and the US Dollar will probably be sacrificed with a controlled devaluation.
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