Should you purchase gold? [3 unique factors] - YouTube

gold is up silver is up inflation is  up government spending is up people  

are moving into gold and silver and the prospects  going forward look very good according to a report  

by Crescat hedge fund the report includes  insights into how precious metals have behaved  

in past market conditions and in their  opinion what we can expect going forward

of course nobody has guarantees but the report  identifies clear reasons to believe that gold  

and silver are poised to start climbing I'm going  to outline a few now first let's talk about broad  

fundamentals that provide the foundation for gold  and silver investments gold and silver do pull  

back now and then but the important factor  is to focus on where the market is heading  

there are three fundamentals for gold and silver  expansionary fiscal policy inflation and negative  

interest rates expansionary fiscal policy is all  about Joe Biden's desire for social transformation  

the current administration wants to spend more  money than we have ever seen before to achieve  

what they call utopia this could increase the  national debt beyond levels that any of us are  

comfortable with and quite frankly quite scary  inflation is the second fundamental I would like  

to discuss if you've watched my recent videos I  just pointed out how cpi hit 6.2 percent and the  

ppi hit 8.6 for October these are big numbers  and it hasn't let up since May so it feels like  

inflation is not transitory but a regular event  third is negative interest rates this is tricky  

because of the massive U.S. debt the Fed  is stuck in a conundrum if you raise rates  

just like in 2018 the economy slowed down  markets dove and the banks ran out of liquidity  

if you don't raise rates  how do you fight inflation  

I think we're going to see negative rates  for quite some time the conclusion is that  

there's going to be a need for a stabilizing  asset like gold and silver the fundamentals  

show that the price is ready to increase Crescat in their opinion believed that recent backslides  

indicate that gold and silver price are ready  to explode I want to focus on three points first  

gold and silver tend to struggle after hitting  new highs and then recover with a vengeance  

in the chart you can see that prices dropped in  1978 and in early 2008 and then both times climbed  

even higher in 2020 gold had a 15 correction and  we have every reason to believe it will soon soar  

upward again the second point has to do with gold  versus consumer inflation expectations this chart  

shows gold springing ahead of investors inflation  expectations in 2019 it was ahead of the curve  

now you can see at the end of this chart it's  behind the curve and the only place to go is up  

third point let's compare gold performance with  assets owned by the world's largest central banks  

gold usually moves in unison with this metric but  in 2012 gold started to diverge and drop below  

the central bank assets again if this pattern  is any indication the only place to go is up  

there are similar factors in the Crescat's report for silver and right now what we are  

seeing is gold and silver are both  on the rise as all the fundamentals  

are giving it the push that it needs in fact gold  and silver had five straight days of increasing  

and the numbers are looking very  good this is only a small sample  

of the factors supporting gold and silver at this  time you need to learn more request our free guide  

and find out why gold and silver could be the  asset that you should be adding to your portfolio