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After hitting a low of USD $1760 during Sydney’s trading session on Friday, Gold recovered back above $1800 this week before US Bond yields spiked again send us back to USD $1,770. Silver continued to track sideways for now, just under $USD $28 per ounce. A very noticeable increase in demand for physical metals on Friday lead to Perth Mint being sold out on the majority of cast bars this week.

The pick up in physical demand coincided with the low in gold and metals recovered soon after. There is a lot of action in financial markets right now and we will cover some of the most ‘bubbly’ themes we can see right now. It seems that there is a chance that a number of assets are topping out simultaneously, which could mean we have a very volatile few weeks ahead for cryptocurrency and equity markets.

It is a scary thought to think of how many new investors are entering financial markets for the first time in 2021. What must seem normal today in the eyes of a first-time investor is actually not normal at all from a historical perspective. The time we are in right now is one of extreme greed, irrational exuberance, and a complete disregard to risk. The riskiest financial assets have been the most popular for investors the past few years, so have naturally had the best performance due to money flows. The stocks with no earnings but plenty of blue sky hopes and dreams have outperformed boring old tried and tested business models with consistent profits. Profit in 2021 has a negative effect on share price performance. It is better to have no earnings at all, that way the millions of uneducated investors can’t see a P/E ratio on their Robinhood Trading App and therefore have no way to value the stock accurately. $100 million? $1 billion? $100 Billion? if the P/E = 0 in either case then the market cap doesn’t matter, it’s all about momentum.

IS THE BUBBLE FINALLY BURSTING?

But what happens when momentum finally runs out of steam?

The market we are in today is completely dominated by animal spirits. Fundamentals are dead, no one cares about value investing anymore, it’s all about past performance driving newer more clueless investors into what has been winning versus what is undervalued. For those that have not come across the Ark Invest fund as yet, this is the pinnacle of a future focused fund that invests in ‘innovation’, or ‘disruption’ and the poster child of an irrational market. The fund invests in technology focused companies including Tesla, but also has very large positions in smaller or medium cap companies. Valuation is not part of their investment thesis, it’s more about finding ‘the next big thing’.

Due to having great performance during this latest bubble in equities, the fund has seen an absolutely huge number of inflows from retail investors worldwide in the past year and has swollen to $55 billion in funds under management, up form only $3 billion this time last year. In Korea they refer to the founder and CEO as ‘money tree’ due to the funds seemingly endless winning performance. Regardless of the company’s investment strategy, if you invest in small to mid-cap companies and you see over $50 Billion of inflows in under a year, then you are going to have cracking performance by default. However, if the type of investors that piled into the fund in 2020 are not long-term focused and are chasing quick gains, then you could expect equally as bad future performance should we see a mass exodus when the momentum ends.

Read Full Article Here

After hitting a low of USD $1760 during Sydney’s trading session on Friday, Gold recovered back above $1800 this week.

CLICK HERE TO READ FULL ARTICLE

John Feeney

Guardian Gold Sydney

If you have any feedback or questions about this report, you can contact John Feeney direct at johnf@guardianvaults.com.au or on Twitter @JohnFeeney10

To find out more feel free to call through and speak to one of our representatives or email your questions to sydney@guardianvaults.com.au

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Click to see our latest bullion deals on metal in stock at low premiums. 

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https://www.pewresearch.org/science

https://tradingeconomics.com/united-states/government-bond-yield

https://www.fxstreet.com/analysis/the-santa-rally-approaches-a-halftime-break-202011200038

https://www.intellinews.com/attack-of-the-debt-tsunami-global-debt-soars-to-a-new-all-time-high-196972/

https://fred.stlouisfed.org/series/M2https://stockcharts.com/h-sc/ui

https://www.businessinsider.com.au/warren-buffett-indicator-nears-record-high-signals-stocks-risky-overvalued-2020-11?r=US&IR=T

https://www.multpl.com/shiller-pehttps://www.tradingview.com/chart/?symbol=SP%3ASPX

Disclaimers: Guardian Gold, Registered Office, Scottish House, 100 William Street, Melbourne, Victoria, 3000. ACN 138618176 (“Guardian Vaults” & “Guardian Gold”) All rights reserved. Any reproduction, copying, or redistribution, in whole or in part, is prohibited without written permission from the publisher and/or the author. Information contained herein is believed to be reliable, but its accuracy cannot be guaranteed. It is not designed to meet your personal situation. Guardian Gold, its officers, agents, representatives and employees do not hold an Australian Financial Services License (AFSL), are not an authorised representative of an AFSL and otherwise are not qualified to provide you with advice of any kind in relation to financial products. If you require advice about a financial product, you should contact a properly licensed or authorised financial advisor. The information is indicative and general in nature only and is prepared for information purposes only and does not purport to contain all matters relevant to any particular investment. Subject to any terms implied by law and which cannot be excluded, Guardian Gold, shall not be liable for any errors, omissions, defects or misrepresentations (including by reasons of negligence, negligent misstatement or otherwise) or for any loss or damage (direct or indirect) suffered by persons who use or rely on such information. The opinions expressed herein are those of the publisher and/or the author and may not be representative of the opinions of Guardian Gold, its officers, agents, representatives and employees. Such information does not take into account the particular circumstances, investment objectives and needs for investment of any person, or purport to be comprehensive or constitute investment or financial product advice and should not be relied upon as such. Past performance is not indicative of future results. Due to various factors, including changing market conditions and/or laws the content may no longer be reflective of current opinions or positions. You should seek professional advice before you decide to invest or consider any action based on the information provided. If you do not agree with any of the above disclaimers, you should immediately cease viewing or making use of any of the information provided.

After hitting a low of USD $1760 during Sydney’s trading session on Friday, Gold recovered back above $1800 this week before US Bond yields spiked again send us back to USD $1,770. Silver continued to track sideways for now, just under $USD $28 per ounce. A very noticeable increase in demand for physical metals on Friday lead to Perth Mint being sold out on the majority of cast bars this week.

The pick up in physical demand coincided with the low in gold and metals recovered soon after. There is a lot of action in financial markets right now and we will cover some of the most ‘bubbly’ themes we can see right now. It seems that there is a chance that a number of assets are topping out simultaneously, which could mean we have a very volatile few weeks ahead for cryptocurrency and equity markets.

It is a scary thought to think of how many new investors are entering financial markets for the first time in 2021. What must seem normal today in the eyes of a first-time investor is actually not normal at all from a historical perspective. The time we are in right now is one of extreme greed, irrational exuberance, and a complete disregard to risk. The riskiest financial assets have been the most popular for investors the past few years, so have naturally had the best performance due to money flows. The stocks with no earnings but plenty of blue sky hopes and dreams have outperformed boring old tried and tested business models with consistent profits. Profit in 2021 has a negative effect on share price performance. It is better to have no earnings at all, that way the millions of uneducated investors can’t see a P/E ratio on their Robinhood Trading App and therefore have no way to value the stock accurately. $100 million? $1 billion? $100 Billion? if the P/E = 0 in either case then the market cap doesn’t matter, it’s all about momentum.

Disclaimers: Guardian Vaults Holdings Pty Ltd, Registered Office, Scottish House, 100 William Street, Melbourne, Victoria, 3000. ACN 138618176 (“Guardian Vaults”) All rights reserved. Any reproduction, copying, or redistribution, in whole or in part, is prohibited without written permission from the publisher and/or the author. Information contained herein is believed to be reliable, but its accuracy cannot be guaranteed. It is not designed to meet your personal situation. Guardian Vaults, its officers, agents, representatives and employees do not hold an Australian Financial Services License (AFSL), are not an authorised representative of an AFSL and otherwise are not qualified to provide you with advice of any kind in relation to financial products. If you require advice about a financial product, you should contact a properly licensed or authorised financial advisor. The information is indicative and general in nature only and is prepared for information purposes only and does not purport to contain all matters relevant to any particular investment. Subject to any terms implied by law and which cannot be excluded, Guardian Vaults, shall not be liable for any errors, omissions, defects or misrepresentations (including by reasons of negligence, negligent misstatement or otherwise) or for any loss or damage (direct or indirect) suffered by persons who use or rely on such information. The opinions expressed herein are those of the publisher and/or the author and may not be representative of the opinions of Guardian Vaults, its officers, agents, representatives and employees. Such information does not take into account the particular circumstances, investment objectives and needs for investment of any person, or purport to be comprehensive or constitute investment or financial product advice and should not be relied upon as such. Past performance is not indicative of future results. Due to various factors, including changing market conditions and/or laws the content may no longer be reflective of current opinions or positions. You should seek professional advice before you decide to invest or consider any action based on the information provided. If you do not agree with any of the above disclaimers, you should immediately cease viewing or making use of any of the information provided.