Massive Gold Buying From The East
Eric, the buying from the East is continuing at record levels. In the first three months of 2015, China and India have bought 640 tons of gold in total. If you extrapolate that figure over the course of a year, it would total more than 2,500 tons. The purchases of gold by just these two countries is equivalent to the entire annual production of gold. I feel very confident that this very strong physical demand will lead to the real price of gold going to significantly higher levels in 2015 and in coming years.
So, Eric, we have bubbles everywhere. The Russell 2000 is at a historic P/E of 90, and Chinese tech stocks are at a P/E of 220. The Nasdaq in the year 2000 was at a P/E of 150. Subsequently the Nasdaq fell by 80 percent.
But Also Opportunities
But at the same time that we witness the most historic wealth destruction over the next few years, there are also the most incredible opportunities to make the returns of a lifetime. These will primarily be in the precious metals sector. Many gold and silver stocks will go up by at least 10-times and some a great deal more than that. The price of physical silver will also go up by 10-times or more. But the most important wealth preservation asset will of course be physical gold stored outside of the banking system.