Silver as an investment

Proceed With Extreme Caution: “There Are So Many Black Swans Flying Around That One May Smash Into The Other… And We’re Off To The Races”

Financial analysts and even government economists are now warning of potential doomsday scenarios in financial markets.

The writing is on the wall and as Daniel Ameduri notes in a Future Money Trends interview with David Morgan of Silver-Investor.com and First Mining Gold Chairman Keith Neuemeyer, it seems like there are a thousand needles pointing at a bubble that’s ready to pop on a number of different levels. The key takeaway for investors who hold assets in stocks is that they should proceed with extreme caution because two key factors, according to David Morgan, signal serious problems ahead:

There are two main factors… one is the debt markets… bonds are starting to weaken… the 35-year bull market in bonds has turned to the downside… interest rates are key…

The stock market as well… I think the top is in… You’re going to see lower equity prices overall…

There are so many black swans flying around one may smash into the other one and all of a sudden we’re off to the races…

Full interview:

As David Morgan notes, gold (and silver) are “negatively correlated with the overal equity market,” suggesting that any major downside shift in stocks or bonds could lead to an equally powerful move in the opposite direction that benefits precious metals.

The key, as Keith Neumeyer highlights, will be the big money sitting on the sidelines:

The institutions are completely out of this market… they are still stubbornly on the sidelines watching this market break out… they tend to be late to the party… The big money is the generalists… the big pension funds… and that money is still on the sidelines… and this market is still being supported by retail investors and until the institutions come in we won’t see a huge change…

As we witnessed in early 2016 when stock markets saw their biggest New Year’s drop in history, gold and silver explode to the upside during times of panic selling and uncertainty.

The same will hold true the next time around and the large institutions Neumeyer speaks of will very quickly enter the sector, a move that will likely lead to exploding precious metals prices on both the physical assets, as well as the companies that pull them out of the ground.

For more market analysis and interviews like the one you just watched visit Future Money Trends.

Keith Neumeyer is the CEO of First Majestic Silver and Chairman of First Mining Gold

David Morgan is the Founder of Silver-Invester.com