The Everything Except Gold And Silver Bubble?

Mike Maloney, founder of, recently completed a marathon 81 minute interview with Nicholas Merten of the DataDash YouTube channel. The conversation was far reaching, covering Mike’s entry into the world of precious metals, his alliance with Robert Kiyosaki, and how Mike thinks the next financial crisis may play out.

Gold And Silver Bubble
Image source: YouTube Video Screenshot

Mike Maloney: The Everything Except Gold And Silver Bubble

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I'd like to take a look at things through the lens of history. And so when I make a chart of things I like to look at it going back 50 or 100 years or even or if I can. And everything has been out of whack for this entire century by the way. You know you were talking about the everything bubble I like to call it the everything except gold and silver bubble. But it's also the Bernanke bubble and the Bernward we're in for the Bernanke bust you know in the year just leading up to 2000. Alan Greenspan was afraid of the Y2K bug. Actually he thought that that would shut down a bunch of computers and so they created a bunch of liquidity in the final three months or so of 1999. And you see the Nasdaq just go vertical at the same time that Greenspan is manipulating and he didn't know that that's what he. That that's where the currency the liquidity was going and then the Nasdaq crashed and he lowered interest rates way too low and held them there way too long to get the markets levitated again to try and get the stock markets back up and he accidentally created this giant real estate bubble that fell apart and devastated the world economy. And when it did and Ben Bernanke overreacted and we are going to suffer we're in the Bernanke bubble now. And people love bubbles. But this is going to come to an end. And when it does it's going to hurt because this was the greatest manipulation of the free market in history except for things like the USSR and Mao's China. Of course we didn't have a free market. Try to manipulate everything. One of the things that I have noticed is that whenever there's a manipulation it stores up energy somewhere and eventually the free market overwhelms that manipulation and they lose control of it. And that's what's going to happen sometime within the next two years. And so I've been getting ready for it and I'm I'm grateful for the breather. I'm grateful that the markets aren't crashing yet although they've been sorta scary lately a little choppy.

There's a lot more volatility than there was no volatility is definitely picked up and I think stocks generally. I think the other day just reached twenty five percent down for the month. It's been pretty much the bloodiest month for equities since up to it get this since October of 2008. So yeah it's definitely it's time to think kind of get on edge. I think people are realizing interest rates are rising. There's there's talks again of Europe is obviously got enough of quantitative easing and it's a question of here of whether or not Mario Draghi starts pushing up rates. But the one thing I want to preempt you Mike and I find this fascinating. I know you look at a lot of data from your videos and it's again you're mentioning P E ratios all the fair value I think it's very important to study these fundamentals and understand when enough are out of whack it's usually time to get concerned. There is one really interesting chart and I tweeted this a little while ago where it takes a comparison between commodities to the S&P 500. I think it's the S&P Commodities Index versus the S&P 500 and what they actually found is that with this simple ratio we usually see commodities and their peaks at an eight times valuation over that of equities and then it usually comes down to a bottom of around 1 to 1. And right now we're sitting at about a 1 to 1 ratio and it's the cheapest we've seen commodities to equities in 50 years since the 70s and you were mentioning that cycle that you were talking about earlier about again these these major cycles in commodities kind of the super cycles are macro cycles again I'd love to hear what you think about that I think more than anything as much as I'm interested in seeing hopefully crypto come become hedge and store of value in the long term. I think gold and silver are quite well positioned studying these trends I'm the same way I like to swing trade so I think it's very fascinating to see that we're that cheap compared to equities. Yeah it is the commodity you know commodities though.

In general they've been in a bear market though for 2000 years. Man gets better at building stuff and digging stuff up and punching holes in the ground and oil would just get better and better at it. Precious metals are not only commodity so I'm bullish on all commodities because I do think that we've hit a bottom and I look at interest rates and if you look at like the 30 year Treasury there's a cycle to it and the cycle is coming close to an end here and interest rates can't go down forever. There will come a time you know interest rates are determined by people's level of confidence and trust they'll loan somebody's currency a very low interest rates.