While many investors still believe that gold and silver will crash along with the markets as they did in 2008, I think we may see quite the opposite. In this video update, I provide even more important information on why the gold and silver setup today is much different than it was in 2008.
Also, it’s important to understand that when I discuss this information, I am not concerned about what happens to the precious metals or the markets today, tomorrow, next week, or even next month. Rather, I am focused on the long-term trend change. This is precisely why I show these charts using a “monthly timeframe.”
Furthermore, I answered the question by many commenters in the previous video on the validity of a “200 Month Moving Average.” Yes, there is such a thing, and if you watch the video, you will find out why there is and why it’s important to use it as a guide for changes in long-term trends:
In the video, I explain why the gold and silver price is currently searching for a BOTTOM, while they were extremely OVERBOUGHT in 2008 (as well as in 2011, technically speaking). Please understand, I am not saying gold and silver can’t go lower, but the indicators don’t point to a massive selloff as they did in 2008 because both precious metals have been in a 7-year bear market, not a 7-year bull market as they were from 2001-2008.
One of the charts I explain in the video is the Dow Jones-Gold Ratio. This is just dividing the Dow Jones Index by the gold price. Currently, the Dow Jones Index can buy 21.3 oz of gold versus 6 oz of gold at the peak in 2011 and 2.5 oz of gold in 1981.
Lastly, I really believe we are going to see one heck of a GOLD & SILVER BREAKOUT after the markets correct and crash lower. Not only will we likely see a considerable increase in physical gold and silver investment demand, but we will also experience a tremendous run-up of the precious metals mining companies.
About the Author:
Independent researcher Steve St. Angelo started to invest in precious metals in 2002. In 2008, he began researching areas of the gold and silver market that the majority of the precious metal analyst community has left unexplored. These areas include how energy and the falling EROI – Energy Returned On Invested – stand to impact the mining industry, precious metals, paper assets, and the overall economy.