The gold Dow ratio must eventually revert to the mean, and that could mean a gold price of $15,000…
David discusses the coronavirus and some of the similarities to the Spanish flu pandemic of 1918. Markets have had a big rally in 2019 and thus are sensitive to bad news. Markets are now spooked and there is a lot of ramifications for both oil and transportation.
The silver to gold ratio is revealing just how undervalued silver is and how early we are in this bull market. Eventually, the gold dow ratio must revert to the mean which could mean $15000 gold.
Time Stamp References:
0:35 – Spanish flu and the coronavirus.
6:55 – Weakness in the transportation sector.
8:20 – Drop in oil, OPEC, and the shale sector.
11:30 – Countries that fund their budget with oil.
13:00 – Dollar and interest rates.
15:20 – Meltup, meltdown or a big crash?
17:20 – Repo markets, stress and hyperinflation.
20:00 – Deflationary busts and stagflation.
22:30 – Gold to silver ratio and the Dow to Gold.
25:50 – Outlook for silver and retail investors.
27:35 – Supply-demand picture for silver.
29:30 – Watch the oil and gas sector.