Hi, I'm Montana Yorke, your Cambridge House host.
And I'm joined today by the one and only Peter Grandich
Peter, thank you for being here.
It's truly a pleasure and let me just say
that you've been doing a great job so far and I know will only get better.
Thank you so much for that.
Peter, as someone with 40 plus years on Wall Street,
what is catching your eye on today's current and frankly crazy market?
Well, I would have to take a step back Montana
It's really what caught my eye.
Last year, I made a dramatic change for someone that's been kicking the can
in this place for almost 40 years.
I felt that after Labor Day here in the US
that I needed to get into the biggest cash position I would ever have in my career,
because
I felt that there would be a social, political and economic period
that will rival any other period in the US.
And I can only speak about the US markets.
I also knew, and I wasn't the only one that we were in the midst of the biggest
financial bubble at the same time, and that if and when it would burst.
Those issues that I found socially, politically and economically
could make even the downside worse than normal.
So I took it upon myself
to have the biggest cash position I ever had before year's end.
However, and I don't like using that word because that's not a good word
when you're giving out advice, but some people tend to use a lot.
But the bottom line is I became so enthralled with the gold
and silver market in mining shares and felt that given where they were at
and what I was thinking I was seeing for the future,
they were so compelling that I ended up plowing most of that cash back
just into that sector.
And to be fair, it also would include copper.
So it was gold, silver things really
copper and actual mining shares.
And so realistically,
I would say now
I would be enthralled if these results happened the year after
I did that, not just a few months, but here we are
right and I know you don't like
to talk or comment in your personal portfolio,
but where is a good home for a junior investors cash?
We touched on gold, silver and coppers.
I'm just wondering if you recommend my listeners do the same.
Sure.
So as I was telling you
before we start at Cambridge, House has a special place in my heart.
I it really was a key part of my career.
I remember the early days with Joe Martin.
His son, Jay, has taken it to another level.
So I will break something that I don't normally do.
I will share a couple of stocks with you and kind of talk about that, but it's in
no way to plug them or thinking that this interview is going to drive them up.
I will tell people that they always need to seek their own
special investment advice because what may be good for me
may not be good for someone else that's listening to that.
Having said that, I'll I'll tell you my two largest holdings
because they both fit the criteria that we just spoke about.
The largest holding is a company called Arizona Metals.
It trades both up there in the Canadian stage
under the symbol AMC and down here in the U.S.
as AMC yes, it is a copper gold
zinc project in Arizona.
The current deposit, which is already and is continuing
to be drilled in my estimate in some others,
is already worth more than the current share price.
And they're about to embark on drilling two nearby structures
that are so identical from everything other than drilling them.
They look exactly like other than the fact that they look much bigger.
So what's happening with copper, with the tremendous increase
we can expect over the coming years, should demand the copper
the shortage we had even before this scenario
and the fact that it's in a place where I don't think we have any political
or social concerns to be worried about, they're a prime takeover target.
And if they get fortunate enough to find even just similar kind of results
in those structures, I have stated publicly that I think it could be
a take out in the next 12 to 24 months in the billions of dollars.
So obviously, well, I'm speaking my portfolio, so obviously
I'm going to be optimistic, but I think it is something of of worthiness.
It's, it's something that even if they go to those areas
and there's not as much as one would hope that what they've already identified
supports the current price or I shouldn't say a 50 or 75% loss,
which is all too common in the junior resource market.
I could spend the next hours every time I have lost that much money in a junior.
But in this particular case I think we're safe on our principal
and we have a still a very significant upside.
And then the other second biggest hole is is probably
if I had to write a textbook after 40 years
of making and losing millions not once but twice in just
this company, American Pacific Mining has
it completed the first half of the book in the way you're supposed to.
They've done a tremendous job of developing a series of projects
one in the state of Montana, which are
which which your name was interesting to speak to.
It's a it's a project where their partner is putting the bill, Rio
Tinto, through a subsidiary called Kennecott.
It is also developing two projects in
in Nevada, one of which right now is the home run potential,
the one that we're eager to wait to see because it was I never saw a better
non drilled project in my life and that's what excited me so much.
But they completed the first half and the first half and Junior Resources sizzle.
You get to write all the great stories you find right.
You get the right people in.
But at the end of the day, nine out of ten juniors
fail to go the whole way and because they don't find the stake.
And now it's time for the company to start demonstrating that these projects
have steak. And I'm optimistic. But again,
people have
to recognize that speculation and gambling is the same thing.
Wall Street created the word speculators, so they don't have to say gambling
when you're speculating slash gambling, you got to be prepared to lose part
or all your capital.
And that's one company that I would say you have to keep that in mind as well.
Great.
And then while we are touching on your portfolio,
I know you mentioned that you're a big fan of physical bullion at the moment.
How much would you say is in stocks and bullion?
So when I and I uniquely bought physical bullion,
which is not something I normally did whenever I was bullish on gold,
and all I played mining shares before or something
like a gld because I was looking for the capital appreciation.
But I actually bought physical bullion in the fall because I was concerned
about all the things that I told you about socially, politically and economically.
But I was buying gold just a few months ago at 1750.
And as we speak it's, it's in the 2000 area
so obviously it's not as attractive as it once was, but I still believe in
where I thought originally it can go to and that's the high 2000.
So it's still worthy.
It's too early to look at the general equity markets
and it's not too late to own the physical bullion as the gold and silver
some of the base metals because of what's happening here as we both speak
they might have gotten ahead of themselves then we could see a corrective phase
but I still think that whole market still has a way to go
and individuals don't like what I'm about to say.
But I'll conclude with this.
I always feel you have to take gold before you take silver.
Now, retail people like silver, there's always an argument,
but it more or less tags along with gold and on occasion will lead gold.
And I don't think it'll be any different this time.
So when you really see silver eventually take off and actually be leading,
gold will probably be close to more mature in this move than we currently are.
Great. Thank you.
And then we I just wanted to circle back here.
Are you deploying capital into the market currently or would you say
that your capital is deployed oh it's deployed?
The fact that you're might deploy it anymore?
I'd have to get a divorce attorney because I really you know,
I like I said, I, I used to figure in my, in my post
on my blog of a truck backing up, but I literally did.
But, but I have the blessing now that I did it in the market.
The market, those, those things are up 20, 40, 50% from where I did.
So I have some room for error if they fall back.
But most of my capital is employed
and this is a very difficult time to be first starting anything
the general equity market is not yet seen or any worthy correction.
We want to start to build a portfolio there.
I don't know how anybody buys bonds
if inflation's eight or 10% and the bond is on the 2%.
So you could buy stocks
and you could
happen to choose the ones that did well,
even if there's a bear market in the overall market.
But if there's a bear market in bonds, you're going to lose money.
So I actually think it's more riskier right now.
Bonds in general, equities.
And we probably moved a little too far to really first thought
of a metals portfolio.
But in the junior market, there's still a lot of things that are closer
to their 52 week low than their 52 week highs.
So I probably would say that would be an area one could still look at.
Great.
And then talking about areas that people could look at.
Where could my listeners find you if they wanted to hear more?
Peter?
Well, I am one foot out the door,
but for now anyway and I hopefully not one foot in the grave.
I just thought about that.
That might have not been the best way to describe that,
but at my age, you got to be careful I still have a blog.
It's Petergrandich.com
There's a blog there I don't post on Twitter anymore.
It became came a place where a lot of people
took their anger out in places that I don't feel that, you know,
you want to go out using people but Petergrandich.com right now
and selective interview still like here at Cambridge house and again I
if I hope Joe and Jay hear this and actually wish you
well it's a phenomenal place I'm so happy what Cambridge house has been built into
and I hope they have many many more years of success and
I hope you come probably one of the most best advisors
because I certainly say you're much better looking than Jay and Joe
definitely a different haircut.
Thank you so much, Peter.
We'll talk to you soon. All the best.