Gold is setting records dating back over 5,000 years — against silver
As of 3/20/20
119 to 1
“Lower expected inflation would mean a) central banks cut their policy rates, and lower interest rates tend to boost the gold price, and b) lower expected inflation probably stems from lower expected economic activity, which might imply less industrial demand for silver – although I must admit I couldn’t find a clear link between industrial activity and the price of silver,” he writes.
Aakash Doshi, an analyst at Citi, also pointed to that connection with expected inflation.
“Even as the excessive collapse in inflation breakevens may be viewed as a headwind for gold upside, the yellow metal should outperform silver in a deflation and growth shock scenario,” he said.
DYI:
If you are precious metals buyer what we do know with such a lopsided gold
to silver ratio is this: overtime silver
will increase in price with greater percentage gains than gold in a bullish
market and conversely in a down market silver will lose far less than
gold. That is what we know.
So…If you already have gold now is the time to sell and purchase silver
for both enhanced upside potential and downside protection. That is what is needed to do for investors
who hold precious metals 100% of the time.
However if you work with the four primary asset categories; stocks, long
term bonds, precious metals and cash it is necessary to see how the metals
stack up against financial assets and in particularly stocks.
As of 3/20/20
13.50
The Dow to Gold Ratio is at a lower 13.50 to 1 stocks are no longer
insanely priced however valuation remains very pricey! Until stocks break below 10 they will then
become reasonably priced; and below 5 placing equities on the give-away-table.
Oil per Barrel Drops below $20!
I have pointed out the oil/gas/service sector as a buy with great
dividend yields at 4 1/2 % plus while waiting for a potential capital gain [see
disclaimer at bottom of post]. Our favorite as you might have guessed is
Vanguards Energy Fund Investor Shares (VGENX) is now cheap not on the
give-away-table but is a bargain. You
may have your favorite as well.
Till Next time
Disclaimer
This blog site is not a registered financial advisor, broker or securities dealer and The Dividend Yield Investor is not responsible for what you do with your money.
This site strives for the highest standards of accuracy; however ERRORS AND OMISSIONS ARE ACCEPTED!
The Dividend Yield Investor is a blog site for entertainment and educational purposes ONLY.
The Dividend Yield Investor shall not be held liable for any loss and/or damages from the information herein.
Use this site at your own risk.
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
DYI
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