Blog : This is HUGE! Perfect 'Economic Storm' Has Begun

by Peter Leeds on June 28th, 2016

This is big!  This affects you.  

So, please take 55 seconds to read this.  It will matter to you.

And it signals the greatest opportunity we've seen in our lifetimes, for those who take action.

This is about the philosophy and outlook of investors from every corner of the world, and what it means.  

Typically gold prices trade inversely to the dollar. This means that when the dollar goes up, gold prices go down, and vice versa.

An interesting thing is happened recently which implies that this historical relationship has been broken. The activity of gold, and the strength of the dollar, have decoupled from their historical "reverse relationship."

This implies that there is an increasing lack of confidence in the American dollar among investors worldwide. Typically investors turned to gold as a hedge against chaos and economic shocks, as well as a store of value.

When the American dollar increases in value, gold typically decreases in price because it takes fewer dollars to purchase the same amount of gold.  Inversely, when the dollar decreases in value, it takes more dollars to buy the same amount of gold, so it appears as if gold has increased in price when the dollar weakens.

However, what's happening now is that gold prices are increasing even when the dollar is increasing in value in comparison to other currencies. This represents a complete shift in relationship between the dollar and the precious metal.

What it implies is that there is greater gold demand and buying activity the world over, which is shedding the historical inverse relationship. We believe that this is the beginning of the uptrend in gold prices, and also silver and platinum prices as well, which we've been expecting.  (Hence why we are suggesting subscribers position themselves in many of the penny stocks we profile).

Our outlook for gold prices is over $1800 per ounce, which is a significant increase from the current level of $1300. We also anticipate that many of the gold mining companies will have outsized gains in terms of percentage increases compared to how well gold does. We explain this in our recent video which can see here.

You can also see the ratio of Gold to Platinum, and Gold to Silver in these videos.

The thing about a loss of confidence in the currency is that typically, and historically, this does not tend to get better. Rather, it simply gets worse over time.

As people continue to turn to precious metals such as gold, silver, and platinum, and do this irrelevant to the trading activity of the American dollar, it implies the initiation of a strong, bullish uptrend in the metals. Investors who get involved now may feel pretty smart about it several months down the road, and certainly will feel pretty good if they have a longer time horizon.

The American dollar has lost over 95% of its purchasing power since the year 1900, and we expect that watering down of the currency to continue. The majority of the withering dollar is based on printing new money, and at no point in history have we seen such aggressive and unbridled production of new dollars entered into circulation. In fact, any historical comparisons are not even close to how much new money is being shoved down the throats of the entire world in the last few years.

At the same time a great deal of inflation, which has been exported to developing countries through our trade agreements, is starting to come back to our shores. We've been expecting a spike in inflation for a long time now, and we're starting to see the beginnings of that manifest here in America.

For example, when Walmart gets thousands of products from China, they are able to sell those on their shelves at very low prices. From the perspective of an American, you would not see any inflation because the product which should cost a lot more is actually being sold to you at very low prices. 

That inflation has not shown up here yet, but it actually did appear in China.  Costs of the resources to produce the product and ship it were absorbed by the Asian nation.

This is just one example, but we have exported inflation to Mexico, South America, and various Asian countries for a very long time. When that inflation does come back, as we believe it has started to now, it will result in costs of products on the shelves here increasing.

Here is where you can do about it: 

The turning of the tide is just beginning now. Investors who prepare properly are going to land on their feet, and be greatly enriched. Those who do not take action soon may miss out on one of the most significant investment periods of our lifetimes.

There are some specific stocks which are going to profit in spite of macro economic forces, and because of those macro economic forces. These are the types of stocks which we are discussing for subscribers to the Peter Leeds Stock Picks alerts, and we would love to share these with you.

There are tremendous and significant investment opportunities setting up right now, in this once in a lifetime "perfect storm" of global economic tides. You can see all about stocks which are going to do really well from this rising environment by subscribing to Peter Leeds through this link.  This only costs about 55 cents a day, but our alerts are designed to help you make a lot more than that!!