Weak Action in Gold is a Gift | Jesse Felder

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SD Metals & Markets: Just how undervalued is gold? The phrase ‘second chance’ comes to mind. Here’s why…

This week for SD Metals & Markets we speak with Jesse Felder of TheFelderReport.com on the financial markets, FANGs, baby boomers still owning 2 of 5 US homes, and the precious metal markets.

As a long term value investor, Jesse has written and commented publicly over the past few years about what he believes is an undervalued gold market (e.g. 1234).

He sees this latest price pullback as an opportunity for those who missed out in the late 2015 Gold Price action (when gold bottomed around $1,050 oz USD) to get into gold bullion and proven gold mining equities.

Have a listen and a look at our discussion recorded at 11AM yesterday – July 19, 2018 eastern standard time.

 

Below is Jesse’s latest public blog post published yesterday,

just following our discussion on Metals & Markets for the week.

 

What The Buy-And-Hold Cult Doesn’t Want You To Know

Buy-and-hold, and all of its related strategies like BTFD, garnered a cult following a long time ago and it’s only gotten even more popular in recent years. (There may be no better evidence of this than the StockTwits merch store – which I love, btw). And after one of the longest and strongest equity bull markets in history this should not come as any surprise. Investors are always influenced by recency bias and prone to extrapolation.

 

What is surprising, however, is that, despite that fact that it’s long-term (20-year) performance still crushes that of the broad stock market, gold has become so maligned among investors of all stripes, including gold bugs themselves. Yes, the past few years have favored equities over precious metals and I guess that’s where the recency bias kicks in again. But the truth is it has paid far better to be gold bug over the past two decades than to be an equity bull.

 

Additional select commentary and charts by James Anderson at SDBullion.com

Gold vs S&P 500 in this Full Fiat Currency Era

Below is an even longer term view over the entire era of the post 1971 full fiat currency era we still live under. Of course there are times like recently when stocks outperform gold and vice versa.

The following Gold vs S&P 500 stock chart shows gold gaining in value vs equities when the BLUE LINE rises in the bottom half of the chart.

Of course as the BLUE LINE falls in the bottom half of the chart the opposite is happening as most of you well know.

 

Further commentary on this chart above and the following US house vs Bullion charts

can be found on SD Bullion’s original post of this Metals & Markets podcast with Jesse Felder.

 

US Housing Values are now Higher than the Pre-2008 Housing Bubble

Have a look for yourself what Fannie Mae just published on what 2 out of 5 homes being exited in < 10-20 years may mean for the residential real estate market here in the USA.

 

 

Ready to see what a dead cat bounce looks like?

Within the next decade or perhaps even less, we’re likely to see the following US housing vs bullion charts rollover hard back towards their 2011, and even towards their 1980 low levels.

US Housing vs Gold

US home vs gold values average SD Bullion SDBullion.com

US Housing vs Silver

US home vs silver values average SD Bullion SDBullion.com

 

FANGs

Netflix Debt vs Stock Price

Chart Source

Netflix CFO Insider Selling Lots of Shares

Data Source

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About the Interviewer

Journalist Elijah Johnson, Co-Host of SD Weekly Metals & Markets, vaulted onto the economic scene after launching his “Finance and Liberty” YouTube Channel, to which he’s been called “the 16 year-old smarter than Ben Bernanke”. As one of the youngest sound money advocates around, with a eye on the national debt, the US dollar, and the gold & silver markets, Elijah is on a mission to warn and educate his generation about the risks of the current financial system, and what people can do to protect themselves.

See Elijah’s interviews on the Silver Doctors YouTube Channel. Elijah’s Twitter is @finance_liberty.

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About the Interviewer

James Anderson has a BA in finance from Loyola University New Orleans. He has both worked and invested in the physical investment grade bullion markets prior to the 2008 global financial crisis. 

James’ twitter is @JamesHenryAnd and he has authored SD Bullion’s complementary 21st Century Gold Rush Book.

 

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