Gold is breaking records, and experts believe we’re entering a long-term commodity supercycle. In this video, we examine patterns from the past to understand why gold and other commodities are undervalued, what’s happening with the stock market, and why this cycle is just beginning. Discover what’s fueling gold’s rise, the implications of market concentration, and how to protect your wealth in these volatile times.

CHAPTERS:

00:00 – Gold’s Record Highs and the Commodity Supercycle

00:36 – Why Gold and Stocks Can’t Both Be at All-Time Highs

01:43 – Commodities vs. Equities: Patterns Over Time

02:16 – Historic Commodity Peaks and Lows

03:24 – Lessons from the Dot-Com Bubble and 2008 Crisis

04:03 – Today’s Market Conditions: Low Commodities, Overvalued Stocks

05:14 – Market Concentration and the Risk of Overvaluation

06:27 – Gold’s Breakout and Why It’s Just the Beginning

08:02 – Global Events Fueling Gold’s Climb

09:44 – Protecting Wealth Through Gold and Silver Investments

TRANSCRIPTION:

00:00

How high will gold go? History tells us that we’re not even close to the top. And not only that, but gold’s recent surge in price is just the beginning of what some are calling a commodity supercycle—one that will last years, if not decades. Those who are not paying attention to the signs will be left behind, risking everything. Gold—yes, gold—is hitting new highs. Investors, buyers, and sellers are all taking notice. We expect central bank buying to continue, and physical demand, we think, will remain resilient.

00:36

Even as prices continue to rally, today we’ll look at proven patterns to answer what’s going on with gold and the stock market, why this time is so different, and most importantly, what is coming next so that you can protect yourself now. During periods of easy money, stocks and riskier assets tend to perform well because investors have extra cash, they feel confident, and things are trending up. During periods of economic uncertainty, during downturns, people are risk-averse, which means they flock to safe-haven assets like gold to protect their wealth. History tells us that both of these cannot be true at once, yet the stock market continues to reach record highs while gold also continues to reach all-time highs. So, what is going on? It means that one of them is undervalued and one of them is overvalued, inflated, and going to crash.

01:43

Now, we’re going to look at both, but tell me what you think: if you had to guess right now, which one is overvalued—gold or the stock market? Tell me your guess in the comments below. Let’s look at this chart that compares commodities to equities—commodities being oil, grain, gold, anything that’s tangible, versus equities, of course, being the stock market. So, if we look at this chart, I’ve already added a couple of events here. Anytime we see these peaks, that’s where we can assume the commodities’ value was high compared to the stock market. Anytime we see these little dips, that’s where commodities’ value was low compared to the stock market.

02:16

Starting on the far left, it makes sense that in the early 1970s, we had this rise in commodities. Inflation was increasing; there was the oil crisis. People were concerned, so they were moving toward safe-haven assets like gold to protect their wealth, moving away from the stock market. Then we kind of have this period with some up and down, a spike here leading into the Gulf War, which again makes sense. And then, what happens after 1990? We start to see things trend down. Why would that be? Well, it’s because things were good; people were making a profit, leading us to the dot-com bubble.

03:24

We see here commodities compared to the stock market were at an all-time low. Why? Because people had a high appetite for risk. They saw all the profit to be made and rushed to put all their savings into the stock market. Now, of course, that didn’t turn out well for a lot of people, which led to a rise in this chart up until the great financial crisis, where once again people lost everything in the stock market and flocked to safe-haven assets like gold. Now, why is it that around this time we start to see this really go down? It’s an era of easy money, with rates historically low, near zero—right up until 2020.

04:03

Then rates go up, but even with rates going up, we don’t see a big rise. If we look right here at where we are today, things are still low. What does that tell us? It tells us that commodities are undervalued compared to the stock market, which is clearly overvalued. Now, I’m not saying people aren’t making a profit in the stock market, but look at this—where we are today is lower than where we were during the dot-com bubble. This means that commodities are severely undervalued, which, if we look at history, means what’s coming next is that we can expect commodities to shoot right up.

05:14

Globally, if we look at the stock market in the U.S., the biggest 10 companies account for 18% of the global equity market’s value. That’s a concentration problem. And when was the last time we saw this happen? The mid-1970s. What was happening during the mid-1970s? Rapid inflation, people flocking to safe-haven assets, and people losing their savings. This concentration is not sustainable. In the S&P 500, the “Magnificent Seven” stocks account for a third of all growth, meaning that if one or two of these companies go under, we’re going to see a serious decline.

06:27

And that’s not all. With expectations of increased market volatility, what can we expect to see from gold? Here’s a chart of gold’s spot price. Essentially, experts have been waiting for gold to break out of its trend line, and that’s exactly what happened a couple of weeks ago following a 44-year wait. What’s happened since then? Straight up. Gold is just getting started, given everything going on globally—inflation concerns, geopolitical concerns, the war in the Middle East, and the BRICS block alliance chipping away at our purchasing power.

08:02

If you think these issues will continue, which they likely will, we have every reason to expect gold to continue to skyrocket. There’s a global move toward commodities; central banks are buying gold in record amounts. Other countries are talking about commodity trade centers because it’s clear that fiat currency’s days are numbered. The system we live in is broken. You want to be protected somewhere undervalued with room to go up, not somewhere overvalued, like the stock market, facing increased volatility, putting your savings and future at risk.

09:44

It’s not too late to protect yourself against everything that’s coming. If you’re concerned or if this opened your eyes, talk to a member of our team. They have years of experience helping people like you protect their wealth. Call us or click the link below to set up a time. As always, I appreciate you being here. Education is key. If anyone could benefit from this, share the video and make sure you’re subscribed for more. I’m Taylor with ITM Trading, your trusted source for all things gold, silver, and lifelong wealth protection. Until next time.