The market share of gold
and silver is another reason why I think they don't go higher
they go Much Higher. By the way, I'm long-term bull on the economy Tom, precious metals will do well.
The market share of gold
And silver is another reason why I think they don't go higher
they go much higher over the last four decades, precious metals and
precious metals related assets, have comprised between one and a half
and two percent of total savings and investment Assets in the US
market, which is to say their market share relative to other.
Financial instruments has been between one and a half and two percent
today.
They're at 1/2.
Of one percent.
It isn't to say that the market share of precious metals needs to
reclaim their old 1980.
Hi, all they need to do is revert to me.
And if they revert to me in which I believe they're going to do demand
will triple or quadruple in the largest savings and investment Market
in the world.
I see that happening.
I see in particular in the mid cap gold space, the high quality mid
cap. Gold space companies where their net present.
Lui defined Net, Present Value, as the current value, discounted value
of future cash flows from proven developable reserves and resources at
current prices.
I see Net Present values, relative to Enterprise Value, Enterprise
Value, being market, cap, and debt - cash at the most attractive
levels that I've seen seen them in 45 years in the business.
But I believe the gold prices are going higher, which means even at
current gold, prices relative to Historic Norms, they're cheap, but I
see the precious metals prices going higher.
So I would say I'm bullish across the commodity Spectrum.
The difference between me and many of your viewers, is that despite
the fact that I'm 68 crowding 69, very hard as I have less time on
Earth. I become more patient.
It's odd that younger people seem to have trauma holding an investment
over a long weekend, and an older person such as myself, understanding
the underlying arithmetic becomes very patient, but I'm very patient
and I'm very, very, very bullish.
It's difficult to me, too.
Figure out a situation that doesn't put us squarely at the end of a
first half of a precious metals bull market where typically you find a
malaise or a decline and the second half of a bull market.
I say that not so much because of charts.
I say it rather because precious metals traditionally have moving up
in price when people are concerned about the purchasing power of their
savings and conventional assets.
And when I
Look at currencies, either the US dollar or the Canuck Buck, but
really looking broader when I look at currencies around the world and
I look at bonds or savings products denominated in those currencies.
There's no way that your savings keep Pace with inflation.
The challenges are in order and I want your listeners to recognize
he's down.
The challengers in clear include quantitative easing, which is a very
fancy Trudeau or Biden phrase for counterfeiting.
That's all it is debt and deficits these debts at the federal level in
Canada.
And the United States will never be repaid.
They have to be rolled over the most predictions, of course is
negative, real interest rates if you're a u.s.
Saver in the
Arc instrument, the US 10-year treasury, the government pays, you one
and a half percent in a currency that's declining in value by six and
a half percent a year, the government guarantees that you'll lose 5% a
year in purchasing power.
So obviously people have reason to be concerned about the purchasing
power of their savings and conventional instruments.
And this means in my experience, almost certainly, but eventually it
doesn't have to happen next month or the month after.
But eventually this is a
In question, this is certainly a when question I think I've mentioned
on your show before Tom, but let me do it again.
I'm by the way, a long-term Bull on the economy.
Tom.
I continue to see a circumstance where individually were so tenacious
and so creative that we overcome our Collective stupidity.
Ours is still
A society where six or seven pimply-faced kids can take over a garage
in Sunnyvale, California and out pops, Google.
I'm not one of these who's forecasting, the end of humankind.
What I'm suggesting is a circumstance where we have to pay
individually for our Collective sins.
And until we are of a mind to do that.
You know, I think that precious metals will do very well.
Our societies have to have a Reckoning with Collective.
Your Society, your generation needs to look at my generation.
We need to look at the off-balance sheet, liabilities of the Canadian
government and the American government, Social Security, Medicare
Medicaid and its Canadian counterparts and understand the debt and
deficits is really a wealth transfer from Young productive people like
yourself to older somewhat less productive people like myself and this
needs to be dealt with
These transfer payments are unconscionably large and they will
absolutely positively result in lower living standards for younger
people until this begins to be addressed until the Consciousness
round. This is understood.
Unfortunately instruments that are regarded as anti collectivist
instruments, precious metals will do.
Well the thing that could really disrupt the commodity thesis would be
Worldwide recession or a worldwide depression.
An absolute collapse in conscious in confidence.
And that is one thing that I'm nervous about.
I'm not an economist.
So I'm not one to stand on a soapbox because I don't have one and say
that 2008 is nigh, but a circumstance where you had a simultaneous
loss of confidence that was expressed in a recession and expressed in
a seizing up of
Edit ironically conventional credit around the world.
Would certainly derail my thesis.
I am certainly one who believes that the excesses need to be wrought
out of the economy.
I believe it can happen as we saw.
In 1980, in the early part of the 1980s, you don't need to eliminate
or even reduce government spending.
You need to reduce it as a percentage of GNP GDP.
In other words, you need to reduce its growth.
If we allow individual initiative over time to rebound and increase
our wealth as a society.
We can grow our way out of our current circumstance.
The thing that
bothers me is that we're not doing it.
We're trying to consume our way out of its current circumstance and
you don't consume your way out of debt.
That's not the way it works.
So thank you for asking that question.
The big big big fly in the ointment would be a recession or a
depression and recessions are often the result of overly stimulative
fiscal environments.
Like the one that we've been in for a long time.
The fact is that I'm a consumer of currencies.
Spend Canadian dollars.
I spend Euros.
I spend US Dollars, and the idea that there's a whole bunch of smart
people out there, trying to define, or develop a new currency, which
would be of use to me, is hugely beneficial, you know, why should
governments have all the fun?
The currencies that I'm likely to adopt will be ones that have utility
that is based on a store of value.
But that doesn't mean the, some smart group of people somewhere,
couldn't develop a crypto that
As immediate utility to me, in some other fashion.
I think, if you eliminate the friction, that's present in precious,
metals, that precious metals, again, return to being money.
I actually believe that the time will come very shortly, five or six
years from.
Now, when you can use a fraction of a silver coin to buy a cup of
coffee and that you can move precious metals back into being
simultaneously, a store of value.
The medium of exchange.
And I think that crypto if you decrypt Define crypto is the blockchain
and the distributed Ledger will ultimately be the biggest allies.
The precious metals have because it will democratize their use.
They have always been a store of value, but they will be able to be
returned to being a medium of exchange as a consequence of distributed ledger.