Gold is breaking records, and experts believe we\u2019re 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\u2019s happening with the stock market, and why this cycle is just beginning. Discover what\u2019s fueling gold\u2019s rise, the implications of market concentration, and how to protect your wealth in these volatile times.<\/p>\n
<\/p>\n
CHAPTERS:<\/p>\n
00:00 – Gold\u2019s Record Highs and the Commodity Supercycle<\/p>\n
00:36 – Why Gold and Stocks Can\u2019t Both Be at All-Time Highs<\/p>\n
01:43 – Commodities vs. Equities: Patterns Over Time<\/p>\n
02:16 – Historic Commodity Peaks and Lows<\/p>\n
03:24 – Lessons from the Dot-Com Bubble and 2008 Crisis<\/p>\n
04:03 – Today\u2019s Market Conditions: Low Commodities, Overvalued Stocks<\/p>\n
05:14 – Market Concentration and the Risk of Overvaluation<\/p>\n
06:27 – Gold\u2019s Breakout and Why It\u2019s Just the Beginning<\/p>\n
08:02 – Global Events Fueling Gold\u2019s Climb<\/p>\n
09:44 – Protecting Wealth Through Gold and Silver Investments<\/p>\n
TRANSCRIPTION:<\/p>\n
00:00<\/b><\/p>\n
How high will gold go? History tells us that we\u2019re not even close to the top. And not only that, but gold\u2019s recent surge in price is just the beginning of what some are calling a commodity supercycle\u2014one that will last years, if not decades. Those who are not paying attention to the signs will be left behind, risking everything. Gold\u2014yes, gold\u2014is 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.<\/p>\n
00:36<\/b><\/p>\n
Even as prices continue to rally, today we\u2019ll look at proven patterns to answer what\u2019s 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.<\/p>\n
01:43<\/b><\/p>\n
Now, we\u2019re going to look at both, but tell me what you think: if you had to guess right now, which one is overvalued\u2014gold or the stock market? Tell me your guess in the comments below. Let\u2019s look at this chart that compares commodities to equities\u2014commodities being oil, grain, gold, anything that\u2019s tangible, versus equities, of course, being the stock market. So, if we look at this chart, I\u2019ve already added a couple of events here. Anytime we see these peaks, that\u2019s where we can assume the commodities\u2019 value was high compared to the stock market. Anytime we see these little dips, that\u2019s where commodities\u2019 value was low compared to the stock market.<\/p>\n
02:16<\/b><\/p>\n
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\u2019s because things were good; people were making a profit, leading us to the dot-com bubble.<\/p>\n
03:24<\/b><\/p>\n
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\u2019t 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\u2019s an era of easy money, with rates historically low, near zero\u2014right up until 2020.<\/p>\n
04:03<\/b><\/p>\n
Then rates go up, but even with rates going up, we don\u2019t 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\u2019m not saying people aren\u2019t making a profit in the stock market, but look at this\u2014where 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\u2019s coming next is that we can expect commodities to shoot right up.<\/p>\n
05:14<\/b><\/p>\n
Globally, if we look at the stock market in the U.S., the biggest 10 companies account for 18% of the global equity market\u2019s value. That\u2019s 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 \u201cMagnificent Seven\u201d stocks account for a third of all growth, meaning that if one or two of these companies go under, we\u2019re going to see a serious decline.<\/p>\n
06:27<\/b><\/p>\n
And that\u2019s not all. With expectations of increased market volatility, what can we expect to see from gold? Here\u2019s a chart of gold\u2019s spot price. Essentially, experts have been waiting for gold to break out of its trend line, and that\u2019s exactly what happened a couple of weeks ago following a 44-year wait. What\u2019s happened since then? Straight up. Gold is just getting started, given everything going on globally\u2014inflation concerns, geopolitical concerns, the war in the Middle East, and the BRICS block alliance chipping away at our purchasing power.<\/p>\n
08:02<\/b><\/p>\n
If you think these issues will continue, which they likely will, we have every reason to expect gold to continue to skyrocket. There\u2019s a global move toward commodities; central banks are buying gold in record amounts. Other countries are talking about commodity trade centers because it\u2019s clear that fiat currency\u2019s 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.<\/p>\n
09:44<\/b><\/p>\n
It\u2019s not too late to protect yourself against everything that\u2019s coming. If you\u2019re 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\u2019re subscribed for more. I\u2019m Taylor with ITM Trading, your trusted source for all things gold, silver, and lifelong wealth protection. Until next time.<\/p>\n","protected":false},"excerpt":{"rendered":"
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