Quote:
Originally Posted by enjoythemusic
What asset(s) tend to outperform the stock market?
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Realistically nothing other than properly managed investment properties.
From my observations, it seems as though the markets are designed to outperform asset prices to dissuade the population from hoarding resources as that would cause supply chain issues and increase the cost of production across the board.
While historically speaking precious/rare earth metals have been inversely proportionate, I think the recent concurrent market dips provide an excellent investment opportunity, and with the current forecast silver, lithium, copper and nickel could provide some historic returns if this bottleneck/bear market continues as long as projected. Although these are more of commodities than assets at this point
The ratios some of the metals are trading at are pretty wild, historically speaking silver has gone at a 40:1 ratio to gold(recorded human history), modern applications account for the highest demand ever and its value is 83.5:1 on gold.even at these prices and ratios, I also believe that gold is undervalued, with the only reason for the current deals being that Russia is clearing foreign stockpiles through Swiss refiners to keep their Government solvent, I believe paper traders are intentionally keeping it deflated for the time being.
my experience in acquiring it lately(since the first lockdown) has led me to pay the highest premiums and its been the scarcest physical supply at dealers since I started collecting as a kid.
Bullion charts pre 08 and today are following similar trends as well.
I never like to encourage bullion trading as timing the market that can be so easily manipulated is tough, especially considering some of the hits I've taken in the past. But "this time seems different"
I guess personally I like gold and silver just to admire, so even if they don't go through the roof, I'm just happy to have it. But with future applications.
A projected increase in energy costs; which in return raises extraction costs as well as the disproportionate amount of people looking to park some cash might create the perfect flurry to bust through multiple critical support levels finally.