deviantinvestor.com / By David Smith / March 3, 2017
It can be difficult, even for dyed-in-the-wool perma-bulls to hold onto precious metals, let alone buy more. We see the Dow trading above 20,000 (placing this into perspective, is that since 2000, the Dow is up around 65% versus gold’s 300%), gold and silver currently languishing below multiple “resistance” points; suspended just above a couple of “support” lines. For long-suffering holders, it feels like the fabled Sword of Damocles dangling over their head, suspended by that proverbial single strand of hair.
If you fit the above description, the following chart should provide good cheer. You’ll notice that since 1925, a few years before the Great Depression, up until the current day, financial assets (paper) – bonds, large cap stocks, and derivatives – have never been more overvalued in relation to metals and minerals, than they are now.