Goldseek Nugget - Aaron Brickman: Inflationary Market Crash Upwards (Part 3 of 3)

This is part three of a three-part show. Watch Part One and Part Two.

With gold topping a new all-time Record of $2,449, Aaron Brickman, a gold bull, joins me for a market wrap-up via the dynamic charting video feature.

"We've got at least another 10 to 15 years of upside on rates. And we haven't discussed what is taking place with our deficits, our debt, and our money printing. And now we're blowing a trillion dollars every 90 days. The writing is definitely on the wall. I am not trying to engage in hyperbole, but this financial system is in deep trouble this year."

- Industrial silver usage ensures increasing demand for the precious metal.
- US Cruise missiles include 500 ounces of silver, which vaporizes.
- Crude Oil analysis.
- Review of the Case-Shiller Index.
- Is the current reaction in the S&P 500 a buying opportunity?

Brickman cautions:

"When it comes to trading, it really doesn't matter what you and I want.  Hope is not a strategy and usually, whatever I hope for the market does not accommodate. Hope is not a strategy. I don't want to see a [Dow 10000] and I don't want to see silver at $150 bucks. Nobody wants either one of those and I mean this very seriously, our world in no way, looks like today.

You and I won't be taking out profits and going down to the Ferrari dealership. That is not what the United States is going to look like if we get true price discovery in the metals, and it's not what the world is going to look like if we get true price discovery in the equity market either. So to me, we have all been spoiled. While we all want true price discovery in the markets, we have all grown up in a world that has not allowed that for a couple of decades and I don't think we have a clue what the mean reversion is going to actually do to society.

...So I caution people to get giddy and excited about it, but I understand that because I get excited about it, too, because we are trying to trade this, we are trying to make money, but I also tell people it really from a moral standpoint, it really doesn't matter what you want. The markets aren't going to listen to you, but you need to make the best investment decisions, not for the world that you want, but for the world that the chart might be telegraphing."

He continues:

"I won't say the word hyper because that that's a technical term, meaning you and I wouldn't know what the definition of that is, but could we get a massive inflationary swirl and go 50, 60, 70, 80,000 on the Dow [Jones]? You bet we could. It's not what you think it is. At that point, interest rates would be going vertical. Gold and silver would be off the chart. Like, you could get into a massive inflationary storm where literally every asset class just goes bonkers to the upside. That's not the same as what the average investors are anticipating. 

So that's the caution. The caution is: Could we have a a crash upwards? As in really the dollar loses value and the only place to hide is equities? Yeah, it could. Historically – let me say this – if you get into a hyperinflationary period, that's exactly what happens to the markets.

Because gold and silver you can't obtain, they've already instituted currency controls in your country and the only place to hide is the equity market.

It happened in Zimbabwe, it happened in Venezuela, it happened in Germany."

- With BLS inflation rates under control and BLS unemployment inching higher, will the Fed cut?
- Given that few investors like Jim Simons, Claude Shannon and Nassim Taleb manage investment accounts, what is the ideal investment portfolio?

Aaron Brickman's Twitter