I believe that precious metals prices will trade higher how much
higher?
I don't know what I can tell you is this.
I feel sort of like, Warren Buffett felt in 1982 when the stock market
had really crashed.
And he said, depending on the audience that he was speaking to the
felt like an oversexed man in a cathouse, or a kid in a candy store.
I don't want anybody to make reference to what they think.
I am.
But the truth is that there are so many opportunities out there.
Now that are exciting to me.
You will remember two years ago, Jake that we began to explore.
Together the uranium thesis that is worked out extremely well for your
listeners.
And as you may know is worked out very well for Sprott to with us.
Taking over the what is?
Now this fraud, physical, uranium, trust week.
We posted a news release yesterday about our takeover of uranium.
Equities mutual fund.
Well, I think the easy money has been made in uranium.
I still believe the next two or three years will be good in the
Uranian business.
So I'll be looking to add to my positions on pullbacks.
I don't see any particular need to establish a position.
Now give it a night establish to position two or three years ago, but
that's still exciting.
I look at the uranium price today and I look at what the incentive
price to produce.
New uranium is particularly with incipient inflation.
And so I'm it.
Cited about the Iranians base, but I'm probably more excited about the
precious metals equities.
The fact that they haven't done well for the last year is attractive
to me, first of all, because the goods are on sale.
I'm less excited about a sector where the price has doubled that I am
about a sector that's Fallen by 10 or 15 percent particularly where I
think it's going to go up and I think precious metals are going to go
up.
I think it's instructive to go back.
The fundamentals in the first instance, precious metals do well, when
people cancer are concerned about the maintenance of their purchasing
power in more conventional instruments, why might they be concerned
about US dollar instruments.
Well quantitative easing.
Debasing the dollar when it's done by Jake.
Do see. It's called counterfeiting when it's done by Congress.
It's called policy.
It's still counterfeiting.
Debt and deficits Jake.
Particularly people.
Your age need to understand the debt and deficits really a transfer of
wealth.
From younger hard-working.
People like yourself who haven't established their positions to old
fat, people like me who voted themselves all kinds of benefits, but
forgot to pay for them irrespective of you.
A generational transfer of wealth.
They must bake you concerned about the efficacy of the purchasing
power of your currency because they have to print more currency to
satisfy their obligations to Old geezers like me, but the most
pernicious of course is negative, real interest rates described by
Franz pick a certificates of guaranteed confiscation.
Or by Jim Grant has returned free risk.
Think about this, the US 10-year treasury, they pay you 1 Point 5
percent.
In occurrences that they acknowledge is depreciating a 5.5 percent.
In other words, the US government absolutely promises to diminish,
your wealth by 4% a year compounded over 10 years.
Not very attractive.
So, for those reasons, I believe that precious metals prices will
trade higher how much higher, I don't know what I can tell you.
Is this over the course of my professional career precious.
Oodles and precious metal Securities have had about a one and a half
percent, to two percent market share among total savings and
investment assets.
And that is States right now.
The same number is less than one half of one percent.
If demand, for precious metals and precious metals equities, merely
return to me, if they ignored quantitative easing debt, and deficits
and negative real interest rates demand for them would triple.
And that's precisely what I think is going to happen.
On top of that, Jake the precious metals equities relative to the free
cash flow.
They're making at today's commodity prices.
Not the prices that I think the Commodities are going to go to at
today's commodity prices are cheap and as we've come to know from
these interviews, Jake, I love cheap.
So I'm attracted to the precious metals equities.
I'm attracted to the great big ones, generating free cash flow.
I'm attracted to
Somewhat smaller ones that are generating even more free cash flow
relative, their market cap because I think the big ones will take them
over and I love to participate and takeovers.
I'm interested in the development stage assets because the industry
doesn't have very many good development stage assets by Pipeline and
they'll be taken over to I'm interested in discoveries.
It seems that there's things of interest throughout the precious
metals equities landscape.
I'm particularly interested because of the poor price performance and
silver and silver equities.
You'll recall earlier this year.
They had the silver squeeze, which people suggest now has failed.
It hasn't failed.
It hasn't gotten started.
The real silver squeeze is not about a whole bunch of new young people
being attracted to the physical silver market so that they could break
the bank's.
The real silver squeeze.
Real silver squeeze is when demand for silver and demand for Gold
return to their four-decade, median, or mean when current demand Grows
by threefold or fourfold in a market where silver Supply can't
increase that much.
And the most leverage, a set of all Jake are the little silver stocks.
Even the big silver stocks, our mutual friend Doug.
Casey told me 20 years ago, and it's true today.
That the combined market capitalization of the legitimate silver
sector is so small that when the generalist money tries to crowded its
way into it.
It's like quote siphoning Hoover Dam through a garden hose.
It just doesn't work.
That's happened to me twice before in my career.
Jake.
And, well, the returns that I enjoyed weren't quite as glamorous as
the returns that I enjoyed in the Iranian sector.
The truth is that the silver sector is one where nobody has any
expectation for success.
When success is, in my point of view, almost inevitable always, always
check your premises.
In the first instance, investors of my age have been trained over the
last 40 years that everything's under control that.
No matter what sort of difficulty, we get ourselves into be it, the
tech wreck of 2000, the liquidity, squeeze of 2008, the more recent
covid, squeeze.
It doesn't matter that the FED has your back.
The problem with that thesis is that the the FED has already spent,
it's easy ammo, do they take the interest rate below?
Zero.
Do you have to go to the bank and give them a toaster, to open an
account?
When they used to give you toasters for opening an account?
My point is that what worked in the past?
Doesn't necessarily work in the future, but the expectation of the
future has been set by investors experience in the immediate past.
And in the immediate past things just got better and better and better.
And if any time things didn't get better than the FED came to your
rescue.
Into the extent of quote helicopter.
Money during stimulus.
We're in a labor shortage economy, the FED in their wisdom, paid
people, not to come to work.
The circumstance that you're talking about which is to say the cost of
living, great, great outpacing.
Average, people's ability to earn is something that is going to occur
to people over two or three years, which is to say that the Paradigm
that people use to.
Look at the circumstances.
They're experiencing is going to change before your very eyes.
We had 40 years to learn that inflation, wasn't the problem that
government was our friend.
All of those types of things.
They didn't happen to be true.
At least towards the end of that that era but people believe to be
true. The idea now that people will willingly by a 10-year treasury will
willingly accept a one-and-a-half percent return in a currency that's
depreciating by five and a half percent means that we live in an era
where narrative is more important to people than arithmetic, but the
truth is,
Jake over time arithmetic, always wins, you will recall and I think
this is very instructive Jake to you and your listeners.
The two years ago when you and I would talk about uranium on this
show, you our listeners experienced a collective yawn, except for the
more idealistic of them who set us hateful emails saying that we were
promoting her ocean and Nagasaki and Three Mile Island.
When the uranium price went from $18.
Sound of 50 dollars.
A pound.
In other words after the uranium price of almost tripled after the
easy money has been made, everybody cared.
We're going to be talking about silver today, and some of your
audience is going to say.
Oh shit, Same Old Song from Rick silver.
You've been talking about silver for 18 months.
And two years from now or three years from.
Now, when the price of silver is above $50 and the silver equities of
all tripled the same people who are snoring and yawning today are
going to be begging you for a list of silver stocks.
After they've tripled, that's the lesson.