As we committed to last week, this week’s video focuses on the precious metals and the exceptional performance gold is exhibiting right now after many years of disappointing returns.
Year-to-Date, it’s hard to find an asset class that has performed better than gold and gold mining stocks:
And the reasons for owning gold just keep getting stronger and stronger. As this week’s expert guest Jeff Clark, Senior Precious Metals Analyst at GoldSilver.com enumerates, all of these gold-friendly trends are solidly in play:
record money printing by the central banks
negative real interest rates
record sovereign deficit spending & debt issuance
rising geopolitical tensions
dangerously overvalued stock and bond markets
covid-19 pandemic continuing health & economic impacts
These are big structural problems that don't have easy answers. They are highly unlikely to lessen anytime soon, and most (if not all) are more likely to worsen. This is one of the most gold-positive moments in time Jeff has ever seen and he predicts substantially higher prices ahead over the coming few years.
We get deep into the details in the below video. After watching it, be sure to click on these links to download Jeff’s free mining stock guide or to learn more about purchasing and storing bullion via the Hard Assets Alliance:
Anyone interested in scheduling a free consultation and portfolio review with Mike and John can do so by clicking here.
And if you’re one of the many readers brand new to Peak Prosperity over the past few months, we strongly urge you get your financial situation in order in parallel with your ongoing physical coronavirus preparations.
We recommend you do so in partnership with a professional financial advisor who understands the macro risks to the market that we discuss on this website. If you’ve already got one, great.
But if not, consider talking to the team at New Harbor. We’ve set up this ‘free consultation’ relationship with them to help folks exactly like you.
i would like PP to answer the question “does gold go up in a big deflation” (or does it go down in a big deflation - meanwhile the commercials have just gone long the US dollar in the COT). because i reckon the risk is big deflation. “the appearance of money printing” from the fed is just a reaction to what the commercial banks are not doing, and that is creating new loans. follow jeff snider from alhambra closely and you will then get it. the eurodollar interest rate curves are indicating deflation ahead. Listening to jeff clarke though good , there is a vested interest there as he is in the gold industry. having said all that i still own gold.
,as a farmer, I will be loath to sell my vegetables, and animals for much other than gold and silver. good luck. my mares are settled.
you all are a hoot!
Gold value is constant. This is a hard concept for almost everyone that is connected to a currency that is dying has a hard time understanding this. It is a bit abstract, but the truth. If you have the time and can get a hold of the book “When Money Dies” by Adam Fergusson, it is a step by step walk through the years the Weimar Republic that went hyperinflation.
Currency is like anything else, the more you have of it, the less it is worth.
Deflation implies a deficit of currency (not enough to go around) or income so prices drop in a restructure bid to bring in consumers.
I believe we are seeing both at the same time. Main street is deflating because of income loss, but certain scarce products may be going up as supply is impacted. Wall Street is inflationary because the focus of Fed printing goes to them.
Kind of complicated, but not really.
Gold has a twist because it is manipulated to artificially prop up the currency. The real question is why is not the manipulation of gold being addressed? I have seen many good explanations of gold futures flooding the market to fake an oversupply.
The tribe needs to have a deeper dive into the reality of gold.
Excellent presentation; just downloaded it to MP3 and gulped it down. Comments:
Nice work “setting the stage” to allow for covering all the topics yet not missing anything important. Thought it was a too much detail to start, but the guests never fell behind.
Re: “PM market is small so expect wild price action”, well, nothing new here. It doesn’t seem to effect the price much. In the event of a worldwide currency crisis, that could change, though. Just expect the governments of the world to outlaw private ownership. I can’t see a win here for any investor who isn’t willing to break the law.
Re: “there are no silver mines but silver is mined as a by-product” this is a very interesting point, and a good reason silver may be a good speculative investment. If demand increases rapidly, price must soar. Not saying demand will increase, but if it does…
Re: “silver storage is hard”, this one kills me. The primary reason to own PM is for insurance against wars and revolutions, and it kills me a man can’t own much physical silver in a practical sense if he has any NW at all.
Re: the “store PM under your control”, amen. It’s good to see professional, normal folk start to talk this way.
Regarding the “keep 5 to 20% NW in PM within your control” I really agreed with this part. And again, it’s good to see professional, normal folk start to talk this way. I do think 20% is a bit much; 10% is enough, because if the unthinkable happens, that 10% will increase 10X at least. Cheapest insurance one can buy.
The biggest problem with PM is it has no yield. This is a killer. There are some gold-mining stocks that do pay dividends, but none IMO have good value. A good proxy? Oil stocks. Check out the correlation between the price of oil and price of gold, it’s uncanny. And many oil stocks currently have good value AND pay good dividends. XOM & SLB are both undervalued right now.
It’s great to see you working with financial advisors and gold sellers, so you can best monetize your excellent blog. Really enjoyed this podcast!
Gold value is constant. This is a hard concept for almost everyone that is connected to a currency that is dying has a hard time understanding this.
Gold has a lot of fluctuation in price over the generations. It is liquid (when legal or not taxed) but never a fully "safe" investment if you want your money back "on demand". There have been many scholarly books on the subject. And if anyone doubts the lack of constant value of gold depending on location and/or time, just remember the US outlawed gold ownership quite recently. Again, gold is just like everything else, in that nothing is constant over smaller time intervals, and can be outlawed and/or taxed into submission.
One thing rarely talked about as a PM is platinum. It may get "missed" by law if the government comes knocking...
Been a member here since close to the beginning and last crisis focused on physical metals. This time around I’m looking to take some profits. Allocated capital in the Sprott ETFs, GDXJ, and a minor silver miner/explorer that looked promising. My question is this…several weeks ago I decided to explore a minor gold miner/explorer for a buy and came to the conclusion that Skeena up in the BC golden triangle was going to be my bet. But alas, it’s not traded on the NYSE. When I tried to buy it with my TD Ameritrade account I was told OTCBB securities could only be traded with limit or stop limit orders. Missed an 80% run up while parked in GDXJ instead. Just wondering if there is an easy way to trade stocks not listed on the NYSE. I know nothing…just looking for a handout.
Hi MN. I had the same problem back in the day, trading penny mining stocks, many international, only to get stiff-armed. My solution: get a broker account at Vanguard. It’s easy but a real PIA even if worth it once it’s done. I did it so long ago I have forgotten all about it, but what drove me to it was to trade a single mining stock where my tiny $10k trade would actually swing the price.
Just a suggestion: if you are getting that deep into the weeds, why not start a Limited Partnership or LLC (as an investment club) with a wife or trusted other? It’s a serious layer of safety against lawsuits or bankrupcy, as the cost of trading is not higher nowadays, and taxes are just pass-through. I once knew a guy who had an LP, lost everything he owned in a lawsuit except his investment club holdings he had totally forgotten about.
