Peter Grandich: Why Gold Crushed Stocks and Bonds Since 2021

Peter Grandich: Why Gold Crushed Stocks and Bonds Since 2021

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The market is ever-evolving, but one thing that has remained constant, especially over the past few years, is the power of gold. Peter Granwich, a seasoned market strategist with over 40 years of experience, shared valuable insights on how gold, silver, and the broader market are performing. With his unique perspective, Granwich highlights why gold remains a wise investment choice, especially in uncertain times.

 

A Strong Case for Gold

At the end of 2021, Granwich made an unconventional move. He advised his clients—one of whom actually followed the advice—to sell all general equities and bonds, and buy physical gold. The reason? He believed that gold would outperform both stocks and bonds in terms of capital appreciation over the next few years. As we approach the end of 2024, that prediction appears to be on track, with gold up 135% during this period, significantly outpacing the stock market, which has risen by only 35%.

Granwich’s advice wasn’t rooted in any doomsday scenarios, but simply the belief that gold would provide better returns. With bonds, once considered a haven, actually losing money in recent years, gold has solidified its position as a substantial investment.

 

Triple Witching and Market Volatility

As we head into the final stretch of the year, markets tend to experience more volatility, especially with the approach of “triple witching.” Triple witching refers to the simultaneous expiration of stock options, index options, and futures contracts, resulting in increased trading volumes and volatility. Granwich explains that during this period, many hedge fund managers and institutional investors wrap up their year’s work, leading to quieter markets in the weeks that follow. The holiday lull, often referred to as the “Santa Claus rally,” is a period when trading slows down, and the entire market’s dynamics can shift.

However, this quiet period shouldn’t be mistaken for stability. The absence of significant market players can lead to erratic movements, making it essential to stay cautious and prepared for potential shifts.

 

Navigating Bearish Times and Planning for Capital Preservation

Granwich has become increasingly cautious about the general equity market, particularly in light of the global economic, political, and social climate. He believes that we are entering one of the most bearish periods in modern history, where capital preservation should take precedence over capital appreciation.

For investors, the key is to recognize the growing risks associated with traditional assets and consider diversifying into alternative assets, such as gold and silver. With concerns about inflation, increasing national debt, and geopolitical tensions, many are seeking refuge in precious metals, which have a long history of maintaining their value during turbulent times.

 

The Changing Dynamics of Global Markets

Looking at the broader global landscape, Granwich sees significant challenges. The rise of the BRICS nations (Brazil, Russia, India, China, and South Africa) is altering the balance of power, and the US dollar, long considered the world’s reserve currency, is facing pressure. The shift in global trade dynamics, along with a growing distrust of the dollar, is making gold even more attractive.

Granwich also points out that the European Union is on the brink of collapse, particularly with economic struggles in key nations like Germany. This has led to questions about the future of the Euro and the EU as a whole. Meanwhile, countries such as China and Russia are actively exploring alternatives to the US dollar, further strengthening the case for gold as a stable and tangible asset.

 

Preparing for the Future

The future, according to Granwich, looks uncertain. With rising national debt, political fragmentation, and social divides, the landscape is shifting in ways that make traditional investments less appealing. He highlights a significant concern—the retirement crisis. Many Americans, particularly Baby Boomers, are facing a future where their retirement funds will be insufficient. This is compounded by the fact that many are living paycheck to paycheck, and even those with higher incomes are failing to save adequately.

As we navigate these turbulent times, Granwich suggests that gold, silver, and other precious metals will continue to serve as a haven for investors seeking to preserve their wealth. However, he also cautions that the market’s volatility may present challenges, especially for those unfamiliar with the associated risks.

 

The Role of Gold in Your Portfolio

If you’re considering adding gold to your portfolio, Granwich recommends a diversified approach. While physical gold remains a cornerstone, the major gold producers, ETFs, and junior mining companies also offer opportunities. Granwich’s personal holdings in companies like North Dile Copper and Gold, Rison Mining, and Group 11 Resources illustrate his commitment to the resource market, particularly those companies with significant gold and copper projects.

Gold and silver are expected to continue performing well in the short term. Still, Granwich also predicts that copper could become a key player in the market, especially with the increasing demand for electric vehicles and green technologies.

 

Final Thoughts

As we approach the end of the year and head into 2026, the market outlook remains uncertain. While some experts are hopeful, Granwich believes that we may see more challenges ahead. The most important thing for investors is to stay informed, exercise caution, and consider alternative investments, such as gold and silver, which have historically proven resilient in times of economic uncertainty.

Remember, while the future is unpredictable, being prepared with a well-balanced, diversified portfolio can help safeguard your wealth against potential downturns.

As we face the challenges of today’s market, staying informed and prepared is more important than ever. Precious metals, such as gold and silver, remain reliable assets for those seeking to protect their wealth during times of economic uncertainty. At Natural Resource Stocks, we provide daily updates, professional analysis, and valuable insights to help you make informed decisions. If you have any questions or need assistance, please contact us at andy@naturalresourcestocks.net. We are ready to help you. Don’t forget to check our daily updates for the latest news and professional analysis to stay ahead of market trends.

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