A Generational Opportunity In Commodities?

A Generational Opportunity In Commodities? by jessefelder for The Felder Report

I have been bearish on the dollar for the past couple of years. The main reason for this was the deteriorating fiscal situation here in the U.S. There is a good correlation between the federal deficit and the dollar over the long run. Lately, the fiscal situation has been deteriorating even more rapidly and, as a result, the dollar could easily decline 30-40% as it did during the last major bear market from 2002 to 2011.

You may recall that that bear market for the dollar was also a great time to own precious metals and commodities. The former has already had a terrific run which will likely continue for the next several years. The latter, however, has failed to keep pace – and that’s an understatement. In fact, while gold recently hit a new record high the CRB Index recently fell back to a level it first reached in 1973!

If the dollar is to decline again in a major way as a result of the rapid debt accumulation met with money printing for the explicit purpose of stoking inflation, commodities could prove be the best way to play it. Better yet, considering just how cheap and out of favor commodities-focused equities have now become, they could present investors with a generational opportunity today.

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Rory Hall, The Daily Coin and Gospel News Network. Beginning in 1987 Rory has written over 1,400 articles and produced more than 500 videos on topics ranging from the precious metals market, economic and monetary policies, preparedness as well as geopolitical events. His articles have been published by Zerohedge, SHTFPlan, Sprott Money, GoldSilver, Gold Seek, SGTReport, and a great many more. Rory was a producer and daily contributor at SGTReport between 2012 and 2014. He has interviewed experts such as Dr. Paul Craig Roberts, Dr. Marc Faber, Eric Sprott, Dr. Warren Coates and Peter Schiff, to name but a few. Don't forget to visit The Daily Coin and Gospel News Network to enjoy some of the best economic, precious metals, geopolitical and preparedness news from around the world.