Time To Buy Precious Metals My Friends!

If you've got any money tied up in precious metals, you're probably getting a bit concerned at the moment. While gold and silver both saw massive gains in their values throughout the first half of the year 2016, the second half isn't off to the best start. Nonetheless, where others are feeling fear, I'm seeing tremendous opportunity. The truth is that there's a big disconnect between the global economy and the market at the moment. These types of disconnects never end well, unless you're talking about precious metals. Today, we'll talk about the big disconnect and why it creates a tremendous opportunity for those interested in precious metals.

Markets And Global Economic Conditions Are Supposed To Move In Tandem

This is a very important factor that we simply can't ignore. At the end of the day, when economic conditions are negative, consumers look for ways to save money. Less consumer spending leads to poor revenue and earnings in big corporations. As a result, when global economic conditions aren't doing well, we should see declines in the market.

Now, let's take a look at the global economy, shall we? When we do, a sea of concerns starts to emerge. Of course, we all know that China's economy has been struggling since the beginning of the year. In fact, economic concerns in China led to a massive correction earlier in the year, costing many investors quite a bit of money.

However, economic conditions in China aren't the only concern. We know that the UK voted to leave the EU, leaving both the UK and the European economies in shambles. On top of that Japan, Brazil, and many other nations around the world are struggling to find ways to stimulate economic improvements. At the end of the day, to say that economic conditions around the world are concerning would honestly be an understatement. When billionaire investors like Carl Icahn warn of the risks in the global economy and inflated market prices, it's time to listen!

The Market Isn't Reflecting The Global Economy

As mentioned above, when global economic conditions are concerning, we tend to see declines in the market. Well, that doesn't seem to be happening. In fact, there is a massive disconnect between the global economy and the stock market at the moment, and for me, that's incredibly concerning.

Take a look at the market. We have seen a full recovery from recent lows with many blue chip indices around the world breaking records. At the end of the day, the market is flourishing. Investors are excited about the gains they're realizing and they are pushing things up higher. All of this is being exacerbated by the already low and decreasing interest rates around the world.

What This Disconnect Means

When global economic conditions are concerning and markets are improving, we have a big problem. It doesn't take a Wall Street analyst to determine that things simply aren't going right at the moment. In fact, most people with knowledge of how financial markets work will use the word bubble to describe what's going on right now.

Because of low and decreasing interest rates, the appetite for risk among investors is large, and growing. Investors are pumping money into companies that, as economic conditions tell us, are likely to disappoint when it comes to both revenue and earnings. Nonetheless, signs of even lower interest rates to come are pumping massive amounts of air into this bubble. Pretty soon, it's going to pop.

When The Bubble Pops, Precious Metals Investors Will Become Rich

The bubble we're seeing in the market right now is a massive one. However, it can't last forever. Eventually, it is going to pop, and when it does, we are going to see massive declines in stocks around the world. Nonetheless, when this happens, gold and silver are going to skyrocket. Precious metals investors who had the foresight to get in early will reap incredible rewards as demand for the commodities climbs. The bottom line here my friends, is that it's time to start investing in precious metals if you haven't started already.

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