Harry Dent Says Silver is the Greatest Bubble

By on August 29, 2011

Harry Dent and Rodney Johnson were interviewed by the St. Petersburg Times recently regarding their views of a deflationary crash.

Dent said gold would start going down next year and fall to $400 to $500 per ounce. He expects silver to follow a similar pattern but fall more in percentage terms.

Dent believes the stock market will retrace all the gains since 1994, when he says the equity bubble began. That would take the Dow down to between 3,000 and 5,600.

As far the economy is concerned Dent and Johnson made a couple of sober predictions:

  • Unemployment will peak between 13 and 15 percent.
  • Florida housing prices could fall another 30-35 percent.

Dent said he expected some year-end strength in the stock market to giving investors another chance to get out.

Source: St. Petersburg Times

Below is a video featuring Dent’s latest views:

One Comment

  1. Alex Plante

    September 12, 2011 at 9:14 pm

    I agree with your analysis concerning the DOW and US housing, but gold and silver are world markets. Physical gold and silver are the only forms of money without counter-party risk, which is why their prices are soaring at a time of low return on interest-bearing paper money, and reduced confidence in the solvency of the financial system.

    Furthermore, the stock of mined gold in the world is growing at 1,5% per year, but nominal gross world product has been growing at around 4% per year for the past decade. Although the industrialized countries will probably stagnate for at least the next 20 years, the former “Third World” and a few high-income resource-rich countries will continue to grow rapidly, off-setting the stagnation of the former “First World”. I believe that the rapid industrialization of the former “Third World” will keep all commodity prices high for at least a generation, regardless of demographics.

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