Dow over 11000 – is this a bubble or will it crash??

This is the question on the minds of many of my clients and students. There is no doubt that few thought that stock markets around the world would make such strong rallies. And these rallies are far from over. Vast amounts of money have been pumped into the system and I would expect the rallies to continue for several more months. The question is, when do you get out? There will be those who are experienced speculators and they will know when to take their money out. However, those who have been lured back into the stock markets due to low interest rates on savings worldwide, may find they are in for a huge shock. At some point, the markets will go down considerably, and those who have put their faith into a financial advisor, unit trust, mutual fund….may find that they are caught short and that they lose most of their capital. This is my greatest concern in the months to come. Those with experience and those who watch the markets avidly and research their results carefully, will probably do very well out of the extreme volatility to come. Those who rely on others for their information, who give over responsibility for their hard-earned savings to institutions would do well to consider having at least a portion of their wealth in physical gold and silver.

There is no currency that I can identify in monetary history that has been able to put up with the abuse the USD has had without a major currency crisis happening, a major devaluation. I expect this to happen within the next couple of years.

Just over a year ago, my target for gold was USD$2000 per ounce, now it is over $3000 per ounce. Even now, people are not waking up to the possibility of high inflation eroding their savings and assets.

Silver is more rare than gold and is so cheap at the moment – just $17.67 at the time of writing. Bearing in mind that silver went up to $50 an ounce in the 1980’s, surely it will go well above that in these turbulent times.

So please, if you have not already done so, get a small amount of gold and silver to protect yourself for the future upheavals in our global financial systems.