SILVER INVESTMENT: Switching From A Commodity To A High Quality Store Of Value
SRSrocco on 03/17/2016 11:54 -0400
The biggest trade of a lifetime will occur when the value of silver switches from a mere commodity to a high-quality store of value. Actually, it’s not really a trade of a lifetime, but rather a fundamental repricing of real assets verses supposed assets. According to the Investment Company Institute, the supposed value of the total U.S. Retirement Market was $23.5 trillion in the third quarter of 2015:
<img src=”https://srsroccoreport.com/wp-content/uploads/2016/03/Total-US-Retirement-Market-Q3-2015.png”>
As we can see, the value of the U.S. Retirement Market is down $1 trillion from its peak of $24.5 trillion in the previous two quarters. Could this be the peak of U.S. Retirement assets?? While the broader stock markets rebounded in the fourth quarter of 2015, they fell again during the first quarter of 2016.
If there are any investors who still believe the Fed and member banks aren’t propping up the markets, you need to get your head examined. We know many of the other Central Banks such as Japan and China have officially stated they were buying stocks, why wouldn’t the Fed and U.S. Govt?? Of course we are.
And it makes a lot of sense why they are doing it. The overwhelming majority of Americans that are invested in the markets are invested in the typical assets that comprise the U.S. Retirement Market. Only a tiny fraction of Americans are invested in physical precious metals. So, in order to keep “CALM” in the markets, the major indexes are not allowed to collapse…. well, for a while.
Look what happened to the Mainstream investor when the Dow Jones Index fell just 11% in the first two months of 2016… they moved into the Gold & Silver ETF’s and Funds in a major way. I discuss what is taking place in the Gold Market in detail in a new upcoming BULLET REPORT.
What on earth would happen to the Gold & Silver Markets if the Dow Jones Index was decimated by 30-50%?? I believe it would cause Mainstream investors to move into gold and silver in such a forceful way, that it would totally overwhelm the supply causing the prices to shoot up much higher. And the higher the price of gold and silver would go, the more Mainstream investors would pile in.
The Fed’s worst nightmare…..
Right now the values of the major stock indexes are extremely overvalued. However, the market isn’t allowed to find their true fundamental value, but it will. This will likely happen when gold and silver switch from a commodity pricing mechanism to a high-quality store of value. Let me explain this in silver’s case.
Silver Trades As A Mere Commodity Due To The Oil Price