From our friends at: Thundering-Heard
Gross: Stock and bond managers today must be alchemists: turn lead into gold. NOT likely. Too much lead (bubbled assets).
–Tweet from Bill Gross, Founder of PIMCO, which manages $1.8 trillion
“Do you own gold?” “Oh yeah. I do…There’s no sensible reason not to have some.”
–Ray Dalio to the Council on Foreign Relations
This is being written to put the precious metals market in a larger context for those people who still see the world proceeding much as it has proceeded in the past, a world without the large financial and supply chain disruptions that we foresee.
Strong multi-year upmoves in the price of any asset, aka a secular bull market in that asset, go through three stages:
- The speculative, early-proponent phase during which the mainstream investment community ignores or derides the potential of that asset.
- The mainstream phase, where the mainstream decides that exposure to that asset is a good idea for just about everyone.
- The mania phase, where just about everyone feels that they must own that asset and will tell you so when you meet them by chance in the supermarket. LINK...