Today's Market Speculation

The speculation in today’s market is incredible. Millennials seem to be the driving force behind these bubbles. They stampede from one hot-stock to the next, looking to get rich. Currently, they have their sights on Gamestop (GME). The stock was up 92% today and 685% in January. 

GME- The momentum traders have turned to Gamestop. Prices are going parabolic. In January, GME is up 685% – this too is a bubble. 

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I remember something similar in the 2000s. Money would flow aggressively into one sector or stock; momentum traders would follow, looking to get rich. Eventually, that bubble would burst, and they would rush to the next trade.

Currently, there is not one precious metal or mining-related stock on Robinhood’s popular 100. That will change at some point, but we have to remain focused and patient in the meantime.

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What could cause millennials to notice precious metals? Great question! I see a few possibilities.

  • A breakout to new highs in gold could get the attention of momentum traders. They seem to buy things that are moving higher and are overpriced. If it’s a good value (like gold now), they stay away. 
  • 2) Millennials love cryptocurrencies and bitcoin. Economist Nouriel Roubini believes bitcoin has no fundamental value and prices are manipulated. I tend to agree. If a massive bitcoin scam is uncovered, as he suspects, we could see a mad rush into precious metals.
  • 3) Some consider the December 2020 cyberattack on SolarWinds the digital Pearl Harbor. It was by far the largest cyberattack on record – the true damage is unknown. A large-scale cyberattack on coinbase or other crypto platforms could terrify bitcoin investors.

One of the above events, a sharp market pullback or a black swan, could spark the next major rally in precious metals. When will that occur? I don’t know, but I believe is only a matter of time. 

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