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There are many people who used to believe in the precious metals, particularly gold and silver. Due to several years of poor price action from the metals, many have lost hope and have tried their luck in other investments. Matt Badiali is one of the few investors who still sees value in both gold and silver. He feels both metals are undervalued and are going to be priced higher, rewarding patient investors. About Matt Badiali, he made his living as a geologist for over twenty years. Part of his geology education consisted of learning about the important factors that drove the supply and demand fundamentals of commodities. According to Matt both gold and silver may endure some more short-term pain, but in the long run, the fundamentals will ultimately play out, and investors who were patient enough to hold will be rewarded well.

The US dollar has appreciated very well this year, but this is usually not good for commodities. The dollar continuing to strengthen has been part of the reason that gold and silver have not done well. There are also numerous geological issues around the business world that are keeping investors worried. As long as the US dollar is perceived as a safe asset to hold, investors will continue to buy and hold dollars, which will continue to add to US dollar strength. Matt Badiali says that cryptocurrencies captured a lot of investment money that would have traditionally entered the precious metal’s market, which also was bad for gold and silver.

Matt Badiali feels that eventually, US dollar strength will not weigh so heavily on gold and silver. One trend he sees continuing over the coming years is that the US will keep adding to its enormous debt. This has always been very positive for gold and silver. Matt is forecasting inflation to pick up in a few years. Gold and silver will do extremely well in an inflationary environment. Mr. Badiali sees explosive gains in the precious metals industry and feels that it will be the underlying mining companies that deliver unbelievable returns. Mining shares will typically outperform the underlying commodity and allow investors to leverage a precious metals position.

 

Over the last decade, the United States has engaged in a program of expansionary monetary policy that has flooded the market with easy credit. This has led to historically high valuations across all asset classes as investors have chased increasingly small returns coupled to increasingly high levels of risk. It has also created serious risk of eventually destroying the value of the dollar.

Shervin Pishevar is one of the nation’s top authorities on finance. He has been one of the most prominent venture capitalists in Silicon Valley for more than a decade, having founded and overseen the growth of Investment company. His company has been behind the creation of some of the most recognized names in the world of tech, including Virgin Hyperloop, Airbnb and Uber.

But in a recent 21-hour tweet storm, Shervin Pishevar made clear that he is increasingly pessimistic on the long-term outlook for the U.S. economy. He says that the experimental quantitative easing programs that the Federal Reserve has been following are likely to end in inflationary disaster. Shervin Pishevar warns that the Fed will not come to the rescue of ordinary savers. He says that, instead, the nation’s central bank will destroy all savings and liquid wealth in order to prop up the stock market.

Shervin Pishevar believes that this process is already in motion. He says that the stock market is one major crash away from the central bank reneging on its promise to undergo so-called quantitative tightening, which involves the bank unwinding its more than $1 trillion in treasure securities, as well as raising interest rates. But Shervin Pishevar says that the first hint of a real market correction will see the central bank trying to outdo Japan in market interference, buying everything that the treasury can possibly print.

This, he says, is likely to lead to serious inflation. It will present a problem chiefly to ordinary Americans, who hold their savings in cash and cash equivalents. Pishevar says that the central bank won’t think twice about sending the working-class to the soup kitchens in order to continue to make the top tenth of a percent richer. He says that this dynamic could lead to a violent revolution.

https://www.cnbc.com/video/2017/09/21/hyperloop-is-not-just-a-fantasy-its-real-shervin-pishevar.html