For five years, we have expected the stock market to undergo 20% to 30% declines each time to be followed with moves back up. That would have been the normal historical price action. Those types of market corrections down in price did a “judicious” job of preventing the severe overvaluations that we have seen occur. The stock market avoided the normal corrections due to several factors and was kept up and pushed to dangerous overpriced levels.

An article in Canada’s french La Press today announced that Canada had finished selling off its gold reserves. The last time a country sold their gold it was England at US$275 per ounce in 2002. It turned out to be a bottom (the worst time to sell) as it is now around US$1700 per ounce. Let’s see if history repeats itself. I have always been on the record to support assets with no counter party risks such as gold and silver. When the Canadian dollar drops in value, that store of value offered by gold and silver stocks and bullion will look that much more sensible. Canadian gold industry stocks may be offering an exceptional opportunity right now. Link: https://www.lapresse.ca/affaires/economie/canada/201603/03/01-4957040-le-canada-vend-ses-reserves-dor.php (French / En français)