Over the last several weeks U.S. stock markets have seen a whirlwind of action. As the holidays approached and stocks began to buckle, headlines blared warnings of a Christmas Crash. In the first few weeks of December and up through Christmas Eve, stocks dropped 4,000 points on the Dow Jones, a move that sent financial shock waves across the world. As everyone from institutions to retail investors braced for the worst on Christmas Day, America’s Plunge Protection Team sprung into action. By the 26th, stocks had recovered a full 1000 points in under 24 hours and the Santa Claus Rally was born. A Christmas Miracle to be sure – one that was fueled by massive injections of cash in a last ditch effort to save the system before it broke through major market support levels.
The mainstream media would have us believe that all is now well, but for those who lived through the 2000 tech bubble crash, it seems all too familiar. Just like 2000, we’re now seeing what can only be described as obscene valuations for tech-related companies and broader stocks in general.
And just like the bursting of the bubble in 2000, so too will we see similar events unfold now. According to Keith Neumeyer, the CEO of the world’s largest primary silver producer First Majestic Silver and Chairman of First Mining Gold, we’re at the early stages of another crash that stands to wipe out potentially trillions of dollars in wealth.
I look at this time frame that we’re currently in very similar to 1999 through 2001. I think it’s more than similar. I think it’s almost identical.
… They’re trying to hold it up as much as they can… This is going to be an ugly January and an ugly February…
Going back to the top of the NASDAQ in March of 2000… we have all-time highs… exactly the same as we did in 2000… and it’s now crashing… and where’s the money going to go?
It’s going to go exactly where it went back in 2002 when gold bottomed out at $250 per ounce and silver bottomed out at $5.
Over the next decade silver went up 10 times and gold went up 8 times… and the mining stocks went up 5, 10, 20 times in some cases.
That’s the kind of environment we’re at the beginning of.
Full Interview Via SGT Report:
It’s no secret that stock prices, especially for Silicon Valley tech darlings, are significantly overvalued. But investors want to believe that the party will never end. Many have been led to believe that the government and their private sector partners have the tools to ensure bubbles don’t happen and that prices won’t crash.
But if December showed us anything, it’s that there is something very, very wrong with stock markets. It is not normal for stocks to swing 1,000 points in a single day. We are, indeed, in very dangerous territory.
And as Keith Neumeyer notes in his interview, with interest rates rising, these two pillars that have held up the facade of a healthy economy are starting to crumble.
The crash in stocks and rising rates bode well for gold and silver, but it’s the third pillar that could really send the entire financial and economic systems into a tailspin.
We’ve got dropping stocks and increasing interest rates…
If we have the third pillar fall – which would be the U.S. dollar dropping – gold would explode.
We’ve known since the bailouts of 2008 and 2009 that the can has been kicked down the road and that the day of reckoning would come.
It appears it may soon be upon us and just as before, millions of investors, retirees and pensioners are going to take the brunt of it.
As the bubble collapses, one need only look at history to see where capital flows during times of crisis and panic. As Keith Neumeyer suggests, it’s going to move into gold and silver just as it has always done.