0:00?EUR< - Introduction0:35?EUR< - Debt Day of Reckoning1:54?EUR< - US Debt and Servicing5:42?EUR< - Petrified of Markets9:27?EUR< - Shorting Markets10:45?EUR< - Market fundamentals have changed.13:36?EUR< - Sentiment and opportunity17:00?EUR< - Gold Portfolio18:22?EUR< - Mergers & Acquisitions19:28?EUR< - Uranium Sector24:45?EUR< - Taking Profits25:40?EUR< - Institutional Money26:45?EUR< - Electrification & Copper31:16?EUR< - Complacency & Advice
Tom welcomes back Peter Grandich to discuss the lose monetary policy day of reckoning that must come. He says, "We just passed another couple trillion in money printing. This debt isn't something that will go away; someone will pay the price and pay dearly."
We're approaching 30 trillion in burdensome debt, but some estimates are over 100 trillion with unfunded liabilities like medicare. The US has the advantage of being the world's reserve currency. Sooner or later, we will default or likely choose to inflate our problems away.
The can is getting much harder to kick down the road. The Fed is now running the economy, and they are preventing normal declines in the market. Now that we are near-zero interest rates, there becomes a point where things become less effective.
Peter says, "I am truly petrified to see the complacency in the market and the ability to service debt. The bottom line is only about 10% of Americans could move forward during this past year since the others lost jobs or businesses. We're entering a dangerous time where most people aren't prepared."
It's not how much you make but how much you don't lose that separates you from winning and losing.
He feels comfortable getting long gold at this point and will look for opportunities to short the broader equity market. He discusses how few people today invest by looking at fundamentals and ownership in businesses. Half of all equity holdings are held by passive funds, and much of the remaining half is all run by algo strategies. Very few look at the market fundamentals, and instead, we are in a high-tech casino-type environment. One of these days, this will bite us in a very bad way.
He discusses the risks in gold mining equities and why failure is the norm in the industry. His focus lately has been on majors, and he may speculate in juniors when interest increases.
Peter has been buying uranium since 2019 and has taken some profits but believes the yellow metal will head higher. He's waiting for the spot price to move first and believes that we will see the price go higher as contracts expire.
He discusses the difficulty in building new copper mines and the vast capital expenditures required. Copper appears to be putting in a new floor and will likely move higher from here.
He cautions investors to not fall for the "It's different this time" and warns that when things are parabolic, take some profits.
Talking Points From This Episode- National debt and unfunded liabilities.- The great wealth divide, political and socialist risks.- Sentiment and gold markets.- Uranium and utility contracts.
Peter Grandich's work can be found at Peter Grandich and Company and Pete Speaks.