Gold’s Fear Index …

Editor’s Note: We’re giving Sean Brodrick’s "Mining for Money" column top billing today. That’s because on Monday, April 24, Sean is going to host an important (and FREE!) four-part workshop where he tells you how to play gold’s next move for maximum profit potential. Below, you’ll see why now is the time to make your move in metals and miners.

The upcoming elections in France are scaring the sacrebloo-ey right out of the French.

The stakes couldn’t be higher. One leading candidate vows to take France out of the euro and NATO. Another is the kind of leftist socialist who could turn France into the next Venezuela.

What’s a good Frenchman to do?!

Buy gold, of course.

A leading bullion seller, CoinInvest, sold more than 1,000 ounces of gold coins in France on Friday. That’s according to its CEO, Daniel Marburger, in an interview with Bloomberg.

Normally, CoinInvest will sell 200 to 300 ounces of gold coins on a good day.

So, are gold sales more than tripling a sign of rising French panic?

You bet your sweet derrière it is.

And it’s not just the French.

Yesterday, I showed you a chart of how holdings in the SPDR Gold Trust (NYSE: GLD) are climbing. I called that the Fear Index.

I also showed you a chart of rising Russian gold holdings, a day before the rest of the media caught on to that. Yeah, the Russians are scared, too.

Well, let me show you three charts that show just how scared the world is right now.

First, here’s a chart of the gold silver ratio. That is, the ratio of the spot gold price to the spot silver price. In recent history, this ratio ranged between 50 and 60.

Image credit: Bloomberg

You can see that it’s been elevated for quite some time. And in April, it spiked higher. Now, the gold/silver ratio is at its highest level since early January.

In other words, gold is getting more expensive than silver. Hmm, what could be driving that?

I’ll show you.

Yesterday, I showed you the holdings of the SPDR Gold Trust. Now, here is a chart showing the gold held by all the physical gold ETFs around the world.

Image credit: Bloomberg

You can see that around the world, investors started selling gold in November, after President Trump’s election victory. They started having second thoughts in January. Since then, investors have added nearly 3 million ounces to gold ETFs.

Now, what’s happened to silver at the same time?

Image credit: Bloomberg

You can see that investors never came back to buy silver through ETFs. This is despite the fact that silver outperformed gold and all other asset classes in the first quarter.

Indeed, the ETF selling of silver continues. That’s because gold has a stronger reputation as a store of safety. In other words, this is the fear trade in action.

Now this brings an interesting opportunity.

I’ve told you how rare primary silver miners are. How the world already hit peak silver production. And how silver supply could be pinched going forward.

Investors will wake up to this eventually. When that happens, we could see silver blast off.

There are some great ways to play the coming silver crunch. Little-known miners, developers and explorers that are poised to reap mountains of profits.

Will I be talking about these small companies with outsized potential in my new Red-Hot Resource Millionaire publication? You bet I will.

For now, keep your eye on the first round of the French election on Sunday. And like the French, keep your faith in gold.

All the best,
Sean Brodrick


We have Sean’s four-part Metals and Mining Workshop starting Monday, and the French elections Sunday. But before that, we have Earth Day. And my friend Jim Woods sent me an "uncommon" take on the holiday that I think some of our readers may find thought-provoking.

Take it away, Jim …

Forget Earth Day, Celebrate Human Achievement Hour

by: Jim Woods

"Uncle Jim, tomorrow’s Earth Day."

That’s what my 10-year-old niece told me this morning, as she heard it on the local TV news.

I asked her what she thought Earth Day was about. She gave me the answer that most people have about the occasion, saying it was a day we take to celebrate and honor our planet.

Well, on the surface, my niece is right. At least, that’s what the public perception of Earth Day is. Sort of an environmentalist celebration of the planet and all its bounty.

Unfortunately, the day also is a chance for environmentalists to make mainstream their hatred for humans under the guise of protecting Mother Earth.

OK, I know you might say my characterization "hatred for humans" is far too strong a term. For some Earth Day participants, I suspect you’re right.

Yet for the environmentalist extremist, hatred for humanity is their worldview. It’s also largely the worldview that ignited the first Earth Day in 1970, and the view of mankind that animates the movement today.

As evidence for my thesis, I cite to you what Earth Day activists tell us we should be doing on this holiest of days.

They want us to reduce our "footprint," i.e. our carbon footprint and the amount of resources we consume. That really means they want us to reduce our standard of living.

They want us to "eat less meat," which really means they don’t want us to eat what we want. They want to tell us what to eat.

They also want us to "stop using disposable plastic," plant more trees, and of course, donate money to their cause. That really means they want us to shun the convenience, sanitation and ease of modern civilization while also feeling guilty that we have somehow destroyed nature via the creation of buildings and cities.

Other common Earth Day directives tell us to shut off the lights, turn off our cell phones and computers, and even live a day "without using resources."

In short, these activists want us to sacrifice human well-being, including most of the luxuries that make our lives productive, healthy and convenient. All for the supposed preservation of the Platonic concept of Mother Earth.

To me, human achievement is worthier of celebration than the raw materials that existed long before humans.

That’s why tomorrow, I plan to celebrate what’s known as Human Achievement Hour.

Officially, this hour was over a month ago. And yes, there is an official celebration.

Human Achievement Hour was created by the Competitive Enterprise Institute, or CEI. It’s an annual celebration of human progress.

Here’s how CEI describes the purpose of the event:

During Human Achievement Hour, we pay tribute to human innovations that have allowed people around the globe to live better, fuller lives, and defend our basic human right to use energy to improve everyone’s quality of life.

"… defend our basic human right to use energy to improve everyone’s quality of life."

I like that.

I also like the recommended ways CEI suggests we celebrate Human Achievement Hour:

  Use your phone or computer to connect with friends and family

  Watch a movie or your favorite television show

  Drink a beer or cocktail

  Drive a car or take a ride-sharing service

  Take a hot shower

  Or, in true CEI fashion, celebrate reliable electricity that has saved lives, by bringing heat and air conditioning to people around the world, and keep your lights on for an hour

Today, and just about every day, I will do these things.

And, I will do them all without a hint of guilt.

After all, humans are integral parts of nature, too.

***

Thanks, Sean and Jim for giving us so much to think about today.

What do you think about gold being a better barometer of investor fear than the Volatility Index? How are you celebrating Earth Day, or Human Achievement Hour, or both? Do you think we’re doing enough to care for our environment, or that we could or should be doing more? Just leave me a comment on our website or send me an e-mail.

Good luck and happy investing,

Brad Hoppmann
Publisher
Uncommon Wisdom Daily

Your thoughts on “Gold’s Fear Index …”

  1. It’s all about physics. Physics can be harnessed, but not defied. Physics cares nothing about liberal or conservative views. It runs by the physical laws of the universe. You can harness physics, say, by jumping out of an airplane but your parachute better not have any holes in it. We have both poles melting, massive coral die offs, degradation and elimination of habitat for thousands of species–some of them critical to human survival on this planet, such as the honeybee. Instead of applying human intelligence, ingenuity and hard work to the critical problems facing our planet and all its inhabitants including us humans, you have pitted Human Achievement Hour against Earth Day. To ignore the implications of physics is to invite peril to yourself and the rest of Earth’s inhabitants.

  2. The commentary by Jim Woods is one of the most depressing and horrific things I have read in a long time. To be so dismissive of the environment that sustains and nourishes himself and all of us is almost beyond belief. I am not an extreme environmentalist; I am a practicing engineer and scientist. The negative effects of human behavior on the environment is proven beyond all reasonable doubt. The solution is not to “hate humanity”, nor is it to turn on all of our modern conveniences at once as a big “f*** you!” to the rest of humanity. The solution is to find common-sense, effective compromises between the two extremes. As investors and trained economists, I am amazed that you do not support — or at least entertain — the idea of attaching a cost to economic behavior that directly affects the environment, thus providing an incentive to produce and consume mindfully, and to offset environmental harm by corrective measures whenever possible (yes by planting trees, who could be against that!?). If Mr. Woods represents the level of intellectual thought and respect for human life at Uncommon Wisdom, then my opinion of your organization is severely diminished.

  3. You’re on target.The ones against achievements, should totally live like they did in the 1800’s. To show us how it’s done! Maybe than they could enjoy some of our modern ingenuity. Or move to a 3rd world country. Trying to take down your country, is like taking a gun and shooting yourself in the foot!

  4. I hardly see how recommending planting trees, reducing plastic use & meat consumption is some form of extremism, even if one could care less about the environment.

  5. Ohhhh boy! Can’t wait to see some of the responses to your comments on ‘earth day’! (Yes, I did not capitalize the “e” and the “d”- I will not give the whole movement enough credit to even do that.) I say- you go Brad! As for me, I think I will turn ALL the lights on, ALL my electronic equipment and drive all my cars as my own personal protest. I like the idea much better on the celebration of Human Achievement Day! Thanks for you comments.
    Kelley T

  6. DEAR BRAD , I HAVE GOOD PRESANTIMENT FOR THE GOLD;S INDEX.FOR THE CELEBREITE OF EARTH DAY HAVE MUCH POSITIONS. IN BALEARES IN PALMA DE MALLORCA WHERE I HAVE LIVING 7 YEARS OF MY LIFE OF THIS DAY MUCH PEOPLE IN GROUPES GO IN THE NATURE E MAKE CLEANING OF THE EARTH FROM PLASMASA AND BASURA. IN BULGARIA PEOPLE NOT ONLY CLEANING , BUT AND PLANT NEW TREES. I PERSONALY THINK MORNING MAKE ONE EXCURSION TO ONE NEER OF THE NORD SEA CITY -CUCSHAFEN. I LOVE MUCH THE NATURE AND SEAS AND OCEANS, WATERS…I WISH ONE GOOD DAY OF YOU AND YOUR TEAM WITH MUCH NICE EMOZIONS!BEST WISHES AND MUCH SMILES FROM ME TATYANA MIRCHEVA-DATA-22.04.2017-BREMEN-GERMANY

  7. hi brad,

    golly what a complex issue. the environment in its primitive state or the concrete jungle with its robotic lions? i take the middle road and live in an outer perth suburb in oz where there is lots of trees and electricity and use my cell phone with impunity. i also eats lots of food to stay alive. you can have the good old days of 100 years ago. i like my tele and my new car lol cheers, ron

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