{"id":22828,"date":"2020-12-06T10:27:00","date_gmt":"2020-12-06T15:27:00","guid":{"rendered":"https:\/\/capital10x.com\/old\/?p=22828"},"modified":"2020-12-06T23:02:33","modified_gmt":"2020-12-07T04:02:33","slug":"silver-100-trillion-market-uzbekistan-gold","status":"publish","type":"post","link":"https:\/\/capital10x.com\/old\/silver-100-trillion-market-uzbekistan-gold\/","title":{"rendered":"Markets & Metals Navigator: Silver Pops, $100 Trillion of Stocks & Uzbekistan goes Gold"},"content":{"rendered":"

Silver Comes Back to Life & Bitcoin Keeps Flirting with $20K<\/h2>\n

Silver was one of the best performing asset classes last week rising 7%, much needed as it has been a spotty stretch for the metal these last couple months.<\/p>\n

As we highlighted in last week’s Navigator<\/a>, we believe the disconnect between gold\/silver & US real yields is too large for the market to continue to ignore, the divergence will correct (ie. gold & silver prices will move higher).<\/p>\n

Weekly Silver Performance<\/h4>\n

\"\"<\/p>\n

Bitcoin keeps flirting with the $20K level, the digital currency was up 8% for the week. We believe Bitcoin is currently in a short term consolidation given the parabolic run that its had over the last 2 months.<\/p>\n

\"\"<\/p>\n

Global Stock Market Clears the $100 Trillion<\/h2>\n

The global stock market has mashed through the $100 trillion market, this would be 115% of global GDP.\u00a0 Ben Hunt from Epsilon Theory said it best, this is the best definition of “financialization” – when all stocks in the world are worth more than all the goods and services provided.<\/p>\n

\"\"<\/p>\n

Uzbekistan Joins Team Gold – Introduces a Parallel Currency<\/h2>\n

ZeroHedge<\/a> reported the Central Bank of Uzbekistan has issued sealed gold bars with QR-codes in an effort to stimulate gold to be used as a store of value and promote its circulation.\u00a0 The country has 57% of it’s international reserves in gold.<\/p>\n

\"\"<\/p>\n

Money Supply Growth & Inflation<\/h2>\n

Deutsche Bank published an excellent chart looking back 100 years at consumer price inflation and money supply growth (M2) – the two lines have always fit atop each other historically.<\/p>\n

2020 is clearly the big abbreviation in the chart with the big spike in money supply and inflation remaining subdued (for now); we believe investors should bet with history on this one.<\/p>\n

Gold, silver and copper are the hedges against inflation.<\/p>\n

\"\"<\/p>\n

Call Option Volume Goes Parabolic<\/h2>\n

One of the best indicators for exuberance in the stock market is the volume of equity call options traded, the volume has literally exploded higher in 2020 relative to anytime in history.<\/p>\n

This certainly provides an explanation for the euphorbia we’re seeing in certain sectors of the market, particularly electric vehicles (ie. Tesla).<\/p>\n

US Equity Call Option Volume<\/h4>\n

\"\"<\/p>\n

Snowflake Cracks $100B with a Bubbly Valuation<\/h2>\n

One of the most hyped IPO’s of 2020, Snowflake (NASD:SNOW), has just passed the $100 billion threshold market.\u00a0 It’s trading on a 2020 price-to-sales ratio of 189x, a 55% increase from IPO P\/S sales valuation of 122x.<\/p>\n

Snowflake Market Capitalization ($B)<\/h4>\n

\"\"<\/p>\n

In comparison, Microsoft’s valuation in the 2000 dotcom bubble peaked at 30x forward price-to-sales.\u00a0 There’s no question tech is frothy.<\/p>\n

Microsoft – Forward Price-to-Sales (2000-2020)<\/h4>\n

\"\"<\/p>\n

Green Metals – Commodity Charts Ready for Liftoff<\/h2>\n