Tuesday, September 8, 2015

There are no SAFE ASSETS

I think that because of modern central banking and repeated monetary policy interventions there is no safe asset anymore.

When I grew up in the 1950's it was safe to put your money in the bank on deposit, the yields were low but it was safe. [But] nowadays you don’t know what will happen next in terms of purchasing power of money, but what we do know is it’s going down.

I would say if I had to turn anywhere where the opportunity for large capital gains exists and the downside risk in my opinion is limited, it would be the mining sector, specifically precious metals. Commodities may still go down for a while but I don’t think they will go down forever. I would rather focus on precious metals [such as] gold silver and platinum because they don’t depend on industrial demand as much.

*Sept 11, 2015 Update - Fixed Video playback