Deutsche Bank has problems and they are very fragile right now and many know it. EU banks are fragile also. Things do not look great. Most of the US risk right now is because we are tied to the EU a lot. This guy who wrote this is right about all of that.
However, he then is suggesting gold and mining stocks. Well, sorry that doesn't make any sense. Gold yea but mining stocks no. Again, mining companies have been poorly ran and they have huge debt burdens. They rely on banks heavily. If there is going to be a financial meltdown then anything that relies on banks is going to suffer greatly. That will absolutely include mining companies. Mining companies are not going to survive without banks.
2008 again, while Lehman Bros and Bear sterns and the financial system was melting down in Sep and Oct 2008 so were mining stocks, reason is that anything tied to or dependent on the banks is also in deep trouble. Mining stocks started to recover but only after the bailout went through for the banks in Oct 2008.
If there is too be a financial meltdown then it will also hit mining companies. It will hit everything. All sectors in the stock market will get smashed. Mining sector included. You can not hide from the stock market by still being in the stock market. Mining stocks are stocks and are part of the market. This guy with his experience and knowledge should know this.
Lastly, he says that wall st and the media have been bashing mining stocks lately. Lol, yea right, they have been pumping the mining sector like mad.
My conclusion is that this guy started off with very good information and is right about EU frailness but then tried to tie it to why we should all buy mining stocks. In my opinion it was a very bad attempt. He should have tied it to gold itself and only gold/silver. It went wrong when he tried to tie in mining stocks. If this guy buys mining stocks because he thinks there is going to be financial meltdowns then he is betting against himself. He should just stay with actual gold/silver. He could even short the market if he is so sure. Maybe even buy bear X 3 ETFs that short sectors, I don't know like TZA SPXS DRIP etc, hey I know another one DUST! No seriously he should have just stuck with tieing things to actual gold/silver and left the mining stocks out of it.
Knowledge + risk taking = prosperity
