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⚡GOLD Price!⚡ THIS Is SHOCKING (THE Truth)... Silver Price Too! · SILVER / GOLD / $UFD Meme Coin Investing & Global Economics

0:00
I don't want to be a doom and gloomer, but I know how to work
0:02
your calculator. Ronnie, Ronnie, I love you
0:04
buddy. I really do.
0:05
I think you do great, great work and you have a heart of gold.
0:08
You're doing this mostly because out of love, not because it
0:11
gives you a paycheck. We are at that point.
0:15
It is not doom and gloom. You are being realistic.
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Who's not being realistic is the Don't Worry, Be Happy crowd that
0:23
makes up much of the financial service industry who totally
0:26
disregards this, has no real understanding, and if they do,
0:30
they'll never speak about it because it would greatly impact
0:34
their livelihood right now. As we record this video on
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September 13th, 2024, gold is continuing to break out the new
0:46
highs. You might be wondering, will
0:48
that continue? Who better to talk to than Peter
0:51
Grandich? He has decades of experience in
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the financial services industry. He's followed gold and silver
0:58
for decades. He's appeared on every major
1:01
news network as a guest. He's also an esteemed author.
1:06
I have his book here, which I've never shown and a great friend
1:10
of Ron's basement. And we're going to talk about
1:13
the gold price and the silver price today.
1:15
Peter, welcome to Ron's Basement.
1:17
Now, you didn't choose me just because it's Friday the 13th,
1:20
did you? You know one of my daughter's
1:23
this morning. I have twin 12 year old
1:25
daughters. She's walking out the door to go
1:27
to get to the bus and she said, you know, it's Friday the 13th,
1:30
we might get slaughtered tonight.
1:32
I thought, wait, wait a minute. So, well, the good news is the
1:37
the Comex gold bears are getting slaughtered right now.
1:39
So that's that's a good part. Yeah, there's a lot going on,
1:43
Peter, in the gold market, new all time highs.
1:46
You know, before we came on, I mentioned to you that I read
1:49
this report that Bank of America said that gold is now the
1:53
preferred reserve asset in the world, second only to the US
1:58
dollar. It feels like to me, does it
2:01
feel like, am I off when I think that we're kind of reaching a a
2:05
showdown stage between the dollar and the gold and gold?
2:09
I think it's more of two people crossing in the night going in
2:13
opposite directions. First of all, shame on the
2:16
financial service industry in general for not recognizing an
2:20
investment that a has a couple thousand year track record.
2:23
Not like something recently it's only traded a a decade or so
2:27
then they're all caught up in at the moment cryptos.
2:30
It has outperformed both the stock and bond market not only
2:36
for the last three years. It has outperformed stocks since
2:40
the new Millennium started and it's outperformed bonds.
2:43
And let me tell you why this is critical over the last 50 years
2:46
based on performance. Now, when I first started in
2:50
this business as a stockbroker, before I even became a money
2:54
manager, the sales managers will always basically say something
2:57
like this. Hey, listen, it's OK to invest
3:00
in the stock market, but if you want safety, put people in
3:02
bonds. They won't lose their principal.
3:06
Well, guess what it has. There are people with
3:09
substantial losses in bonds and yet gold here as you and I
3:13
speak, hitting the $2600 mark gets this much recognition in
3:19
the financial service industry. Still today may be a sentence or
3:23
two somewheres and it's you know it.
3:27
A few years back, the Bank of International sentiments, Ron,
3:30
made gold a tier one investment with stocks.
3:33
Yet, how many people in the United States right now have any
3:38
worthiness of holdings of gold along with their stock
3:41
portfolio? That's why I think the market
3:43
and we're going to discuss a lot of the fundamental reasons why.
3:46
That's why I think the market still has a lot of ways to go
3:48
because most people still don't own it.
3:50
Yeah, yeah, yeah. I was, I was talking with Keith
3:53
Newmeyer yesterday and I brought up the point that, yeah, nobody
3:56
owns it. But think about this, Peter.
3:58
Everybody knows about it. It's weird.
4:01
It's like the seed is planted. And I mean, you can ask any
4:04
American what are the most, what's what you know, what's
4:07
valuable in the world. Even my kids and they would say
4:09
silver and gold, although they don't own it right so.
4:13
Hold on, hold on, Ron. You say that because they spend
4:17
time in that basement. How could they not know gold and
4:21
silver was important? Yeah.
4:24
Maybe I maybe I am a, maybe I am a bit skewed.
4:26
So, so, so when we look at this, this, this showdown potentially
4:31
that's developing between, between the dollar and precious
4:34
metals and, and some of the factors you, you, you mentioned,
4:38
right, Like just everything, all the macro factors happening in
4:42
the world that bonds and does it, does it feel like like if
4:46
you had to bet on who's going to win in the end, that gold and
4:50
silver would be a, a, a better bet?
4:53
Well, I've already made that bet and in in our planning group for
4:56
those who choose to listen, I pounded the table about it.
4:59
I have stated that we have entered the worst ever social,
5:04
political and economic era as Americans that it is so severe
5:08
due to a number of factors which you can talk about.
5:11
If not, it's, it's OK. And what is transpiring the
5:15
world that the the financial service industry perhaps
5:19
certainly in the modern era will turn out to be one of their
5:22
biggest blunders, if not their biggest.
5:24
And that is the unappreciation, not wanting to understand or
5:29
scoff at what is transpiring on the world stage in terms of the
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formation of these BRIC nations, countries getting together to
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alternatively lead the United States outside looking in both
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in terms of commerce and trade and how they exchange and what
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kind of monetary system they use and so forth.
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And I say to these young financial advisors, and there
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are even some in the very place where I still do my business
5:54
through, and I say then to them, explain to me how if more and
5:58
more countries who used to trade with the United States stop
6:03
trading with the United States and stop using its currency, how
6:07
does that end up beneficial to the United States?
6:10
And I get an old Jackie Gleason and they can't answer it because
6:15
that's what's transpiring. And the untold story in that,
6:19
Ron, that you're only getting some traction now is all these
6:24
countries that also repatriated their gold from the United
6:28
States back into their own central banks.
6:31
They're not doing this for a trade.
6:33
They're not doing this for speculating like you and I are
6:35
doing on some junior resource stock.
6:37
They're doing it because they see what's changing on the world
6:40
stage, that passing that I spoke about, that the dollar is going
6:44
this way and the gold is going that way.
6:47
If you're looking to buy gold, silver or platinum, do yourself
6:50
a favor and check out PMBEX, the online precious metals bullion
6:55
dealer and sponsor of Ron's Basement.
6:58
I was a happy customer before they offered to support the
7:01
channel. You'll find they have the best
7:04
prices, quality and service. I think PMBEX is best, and you
7:09
will too. And be sure to tell him that
7:11
you're from Ron's Basement. How could the world not be
7:15
losing confidence in the dollar? I read something this morning.
7:18
I want to get your, your comments on this, Peter.
7:20
I think yesterday the Treasury Department put out the August
7:24
numbers and the United States government ran a $380 billion
7:30
deficit in the month of August alone.
7:32
That was up from only only only 90 billion in August of last
7:39
year and we're now on track for 2024 to have real close to a $2
7:44
trillion budget deficit. I mean that's getting added on
7:49
top of, you know, the already expanding almost 35 trillion in
7:53
that increased interest expense. At some point does this, I mean,
7:58
I guess there's a two-part question.
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When the world looks at that, then we can presume that they
8:03
have smart people and economists that have calculators that work,
8:06
that they're going to lose confidence in the dollar.
8:09
And at some point, does this get manifested in just the dollar
8:14
going down in real value and inflation continuing to
8:18
skyrocket? Well, let me answer that
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two-part in A2 part answer the 1st, it's clear and evident the
8:24
amount of foreign buying of our debt continues to drop
8:28
considerably. And equally, some of the biggest
8:31
net sellers of our debt are the some of the biggest leaders in
8:36
the BRIC movement, Russia, China and some others.
8:40
The second thing that you're seeing is we are.
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It's hard for me, for somebody that's going in his 31st year to
8:50
think that we will ever speak in anything financial economic with
8:53
the word trillion in it. It didn't exist.
8:56
It wasn't in our vocabulary or our mental thinking that we
9:01
would talk about trillions. Now we're talking, we're talking
9:04
35 trillion, but that's not the real number.
9:07
I've been putting up a group that has calculated all the cost
9:11
of extra Medicare, Medicaid, Social Security, the numbers
9:16
close to $160 trillion. And who can imagine that you
9:22
could run $2 trillion in debt? And it's accelerating.
9:27
And here's where the problem is. This is very important, Ron, and
9:31
I've talked about it, and I'm not the only one.
9:33
The Congressional Budget Office, probably the last place in
9:37
Washington where there's a bit of bipartisanship left.
9:41
They have put out numbers and have upped it for almost every
9:45
three to six months. They are now forecasting a $54
9:49
trillion hard debt before the year 2034 with an important
9:54
asterisk. They have no recession of any
9:57
worthiness in that period. So if there is some significant
10:00
slowdowns, recession, that debt will increase more and the
10:04
period will come faster. But let's just use $50 trillion.
10:08
And please folks that are listening, both Ron's and my
10:10
followers pay attention to this part.
10:13
At $50 trillion, we will have to refinance it or part of it will
10:18
be at that point. Even if it's just 5%, that's not
10:21
a high interest rate. That's $2.5 trillion in an
10:25
interest expense that must be paid.
10:28
Well, a couple years ago, we had our best year ever as a
10:31
government. We took in five trillion, $300
10:34
billion. Let's say that even gets boosted
10:38
to six trillion by then, or even a little bit more.
10:41
We're still going to be looking at almost half of all our income
10:44
as a country to service the debt.
10:47
Here's news, Ron. You're not going to have the
10:49
military that you're used to. You're not going to have
10:51
government service as you used to.
10:53
And a lot of people that are expected to be paid on things
10:56
are not going to be paid or it's going to cost a lot more to be
10:58
paid. And that's a fact.
11:00
And you can beat around the Bush and you can talk about all this
11:04
stuff. But Ron, that period is in most
11:07
of us, God willing, lifespan. This isn't something now that's
11:11
20 or 30 years away, Ronnie, this is right in front of us.
11:14
Most of us are going to be living please God, or maybe not
11:18
please God when that period comes.
11:21
In that, in that 2.5 trillion in interest that you talked about,
11:26
but it's important to remember that interest expense also then
11:30
gets basically added on to the debt level, right?
11:33
I mean it becomes like a. Yeah, because they borrow.
11:36
They borrow. Yeah, they pay it.
11:38
Yeah, it becomes like a doom. I mean, that actually makes the
11:40
debt level bigger, which then makes the interest expense
11:43
bigger, which it just becomes. I mean, I don't want to be a
11:46
doom and gloomer, but I know how to work a.
11:48
Calculator Ronnie. Ronnie, I love you buddy, I
11:50
really do. I think you do great, great work
11:52
and you have a heart of gold. You're doing this mostly because
11:55
out of love, not because it gives you a paycheck.
11:58
We are at that point. It is not doom and gloom.
12:03
You are being realistic. Who's not being realistic is the
12:07
don't Worry, be happy crowd that makes up much of the financial
12:10
service industry who totally disregards this, has no real
12:14
understanding. And if they do, they'll never
12:17
speak about it because it would greatly impact their livelihood
12:20
right now. And in fact, let me tell you
12:22
this much, I talked recently to one of my friends, he was once
12:25
the second highest managed, the second biggest fund in America,
12:29
working lit has his own island in the Caribbean.
12:32
And I said to him and he and he's still, you know, he's a
12:35
mature man. He's a little bit older than me,
12:36
probably about 7071 now. And he says, Pete, you know
12:39
what, I know you're right. But we got to try to make as
12:42
much money before that happens. That's their philosophy, that
12:48
that's the trouble And, and, and, and it's coming.
12:51
And you know what? I don't want to be around and
12:53
say, see, I told you so. Because the lifestyle and what
12:57
most people are going to have to go through is going to be very
12:59
unpleasant. Yeah, the, the, the math behind
13:02
it doesn't work. And, and I and I appreciate the
13:05
point. You brought us something very, I
13:07
think pertinent to the whole situation, like that fifty
13:09
trillion estimate that the CBO the came out with that does not
13:14
factor in a recession. And, and I've heard some other
13:17
people mention the fact that like we have more debt than any
13:20
other time in history by any metric, any ratio, anything
13:24
else. And we, and, and, and we're
13:27
coming out of what they're telling us are good times.
13:30
What happens if we run into some bad times like you mentioned,
13:33
right? Like a recession or further
13:36
geopolitical turmoil when, you know, we have the, the, the
13:40
brick stuff going on. Like we're going into what could
13:43
be a difficult time on, on, on different levels with a horrible
13:49
financial situation. So I guess it really is like
13:51
it's in the headlights now, like we can see it.
13:55
But like you said, most people stick their fingers in their ear
13:58
and you know, and saying and say I don't want to pay attention.
14:01
Everything's fine, everything's good until it's not.
14:03
First Mining Gold is a development company advancing 2
14:07
of the largest gold projects in Canada.
14:10
Spring Poll in Ontario and Du Parque, located in Quebec, each
14:15
already has 5 million ounces of gold reserves, but exploration
14:20
initiatives are underway at both projects to find even more gold.
14:25
First Mining is well financed, has zero debt and owns an
14:29
interest in four additional Canadian gold development
14:33
projects. I've been speaking about the
14:35
bricks and again, not alone in it.
14:37
It's finally getting a little bit of traction in mainstream
14:40
media, and I think it's going to get a lot more after they
14:42
conclude their meetings this fall because we're going to
14:44
learn a lot more how fast they're growing and how it's
14:47
going to impact us. But I'm going to give you
14:49
another topic that almost no one's speaking about.
14:52
And I think in a couple years they're going to have to because
14:54
I've seen the signs already. I believe the European Union as
14:59
we know it is breaking down and whether or not it fully
15:03
collapses, but it will be minimally greatly weakened at a
15:07
time when Western civilization, which it makes a big part of
15:10
Europe is making part of that. We're seeing not only the
15:14
breakdown of it economically, but we're seeing in terms of
15:17
this great immigration, migration that is coming into
15:21
the Western civilization as population of the Western
15:25
salvation declines birth rates and not keeping up with debts,
15:29
etcetera, etcetera. And people are just just seeing
15:33
the beginning of those changes. Look at the type of stories now
15:36
you're in, you're in middle America, OK, Look at the stories
15:39
that we would have never imagined 5-10 years ago, reading
15:42
about people that are living in our country and, and are
15:45
capturing our pets to eat them, you know, and I mean, but, but
15:49
these are stories that come from that other part of the world.
15:52
That's a way of life and I'm not here to judge.
15:55
God created all humans equal, in my opinion at all.
15:59
We haven't begun to appreciate these enormous changes at a time
16:03
as you said it, when most people are still going around like
16:06
this. And I see and this if I may,
16:09
Ron, I see still 7-8 out of 10 families that come into our
16:14
financial planning group still live in at least one or two
16:18
lifestyles above where their finances support.
16:21
People say, well, what do you mean by that?
16:22
They spend more than they take in.
16:24
They don't have positive cash flow.
16:26
I the people say how they do it, they borrow, they keep
16:28
refinancing, they have car loans or, or, or leases sitting
16:32
outside. They are not fixing up their
16:35
home. They're using the money to
16:36
deliver a lifestyle better now. They're not putting money into
16:39
retirement funds, etcetera, etcetera.
16:42
And that a lot of them are doing it because they believe they've
16:45
been told you got to keep up with the Joneses.
16:48
You know what I always tell them, wave to the Joneses, told
16:51
try to keep up with them, live a separate life.
16:54
And this country is a prime example of not living within
16:59
your means. Yeah.
17:01
And you and if you think about like on the macro level, what's
17:05
going on with our government and then overall, like you said,
17:09
like we know credit card, the data that comes out about credit
17:11
card debt levels, people taking money out of their four O 1 KS,
17:16
people selling their precious metal, what the other people are
17:19
living beyond their means. If, if on a macro level, we hit
17:23
some really hard times on a household level, it could be
17:28
multiplied as you have people that are just living a a
17:32
financial life that that doesn't add up.
17:36
And we could indeed be in for some some challenging times in
17:40
this country. Not could be.
17:43
We are, like I said, on every level.
17:45
And you know what we don't talk a lot about?
17:47
We get caught up on the national debt, but look at a state like
17:51
California now. Budget deficit is unbelievable.
17:54
In fact, people trying to figure out how they're going to
17:57
finance. They're talking about passing
17:59
laws of clawing back on people and businesses that already
18:02
moved. Wow.
18:04
To, to escape to, to and so they don't have the printing press
18:08
that the United States has. Look at the cities now look at
18:11
the, the immigration part of it. New York City, $5 billion more
18:16
having to be spent. Remember just a couple years ago
18:19
they said, oh, we're a sanctuary city.
18:21
We're going to take everybody in and live 1 happily life.
18:24
Now they're trying to find ways of getting rid of those people.
18:27
You can't get rid of those people.
18:29
Those people are here in masses and they're human beings.
18:32
This, this thought that I hear in the far right and I'm I'm in
18:36
the right, but I'm never going to be in the far right.
18:39
Oh, just put them on a boat, ship them back.
18:41
That's long sailed that boat. That's not going to be a
18:44
solvable item. And that's why there are a lot
18:48
of issues that are transpiring. And we're not even talking about
18:51
the the politics of what's transpiring here now in the
18:54
United States. It's a, it's a very, very
18:57
difficult situation. And to go back to your original
18:59
theme and all, that's one of the reasons why something that
19:02
worked for a few thousand years, all sorts of different parts of
19:06
history has been sought out to be used as a protector and a
19:12
unifier to make sure that your purchasing power in order to
19:15
sustain yourself is good. And that's gold.
19:18
That's the bottom line to it. I've always told people, can I
19:21
please, Ron, let me tell you this part.
19:23
Every single person I've ever sat with that I can recall in
19:26
our planning group when it got to the investment point, when I
19:29
was still licensed and all that. And I can talk specifically
19:31
about investments. I tell them, listen, I want you
19:34
to buy some gold, but hope it doesn't go up.
19:37
And Ron, they all basically this did.
19:39
It's like a dog. They turn their head slightly
19:41
and go. But Mr. Greenwich, why would you
19:43
want me to buy something that you hope is not going to go up?
19:46
Because I'm looking at your portfolio here and it's
19:48
basically all financial assets. Trust me, if gold does go up,
19:52
these assets are likely to be going down and that's what it's
19:56
always been. It's a minimum protecting
19:59
insurance policy for me. I've used it for capital
20:02
appreciation and done well thankfully and now have moved to
20:05
the most riskiest. Part of that equation, the
20:09
junior resource stocks, but I think still, because most
20:13
Americans, and this concludes our friends in Canada who at one
20:16
time were much more affiliated with gold and ironically that
20:21
country sold all their gold years ago, we still got a long
20:25
way to go in this metals market. Yeah, yeah, I appreciate you.
20:28
You, you took the words out of my mouth.
20:30
I was going to ask you with everything that we're talking
20:32
about going on, how to precious metals fit into that on a big on
20:37
a big picture level, because you know, hey, that's what we are
20:41
all eventually what we're looking to do is protect
20:44
ourselves, protect our families. And like you said, for thousands
20:48
of years, gold, silver to a certain degree as well have done
20:52
a really good job of doing that. Can we shift gears for a second,
20:56
five more minutes to talk about the the the junior resource
20:59
sector? Ron, Ron of Ron's Basement, if
21:02
you want to stay the next hour, I will stay with you.
21:05
I really, I really listen. I put something out today on my
21:08
ex page. You might not even know it about
21:10
yourself. I really in this lattice stage
21:14
and twilight of my business life and my mortal life, I've really
21:18
grown to appreciate in certain people and you're one of them.
21:21
Even though we've never met, I feel like we have through this
21:24
Zoom. I am more than willing and I
21:27
think the work that you do and some others in the little way
21:30
that I can help on appearing. I hope someone that watches this
21:34
and hopefully more than one gets and understands truly and this
21:38
helps them make the right decision.
21:39
So I'm, I'm more than glad to say you're talking with you,
21:42
Ronnie. Well, that's thank you, Peter.
21:44
And you know, I, I, I hold you in the highest of regards as
21:47
well. What about as we talk about all
21:51
this that's going on, right? This the, the political
21:54
situation, the financial situation of the country,
21:57
geopolitics are we facing? Is there any possible way that,
22:04
that the US dollar doesn't go down in value?
22:08
I mean, when I think about precious metals and I think
22:10
about everything we talked about with deficits and just the, the
22:14
general environment of where we are, I don't see, and I know the
22:18
Federal Reserve right there, their stated objective is it
22:21
only loses 2% per year in value. But I just don't see an
22:25
environment where we have. And it's unfortunate, right?
22:28
Because I'm an American. I I love my country, all that
22:31
grace, but I don't see an environment where the dollar
22:34
doesn't do anything but at one rate or another continue to go
22:39
down down in value. So I may get in trouble for
22:44
saying this but I actually did this as a teenager 16/17/18.
22:49
I spent a lot of time those days when I legally got allowed to in
22:53
discos. And around two, 3:00 in the
22:57
morning, we look over the girls that seem to still be single in
23:02
the bar. And girls that might have not
23:05
been pretty or attractive at 10:00, suddenly at two 3:00 in
23:10
the morning, they weren't that bad looking.
23:12
OK, that's a terrible way to describe it.
23:14
And I'm sure they looked at girls looked at me in the same
23:17
way. What we have here is the United
23:20
States dollar is the least ugliest of the major currencies.
23:24
Yeah. OK.
23:25
So by default, and because it's still the world's reserve
23:29
currency, but I do believe once the bricks formally kick in and
23:33
formally form not only a new currency, that it will be used
23:38
among themselves or eventually compete as a world reserve
23:41
currency or whatever, then it will tank along with all Western
23:48
currencies that aren't partaking in that.
23:51
And so for for the time being, one of the reasons it won't come
23:55
down a lot is because the rest of the current currencies that
23:58
it competes against, the euro is worse off in a sense because
24:03
they're not unified where they can each print their own keep
24:06
currencies. And I think we've seen just the
24:09
crack in that now, especially out of Italy and all where
24:12
they're talking about maybe it's time that we focus read back
24:16
about ourselves. So to answer your question is I
24:19
think that the dollar is survivability, but it's not
24:22
going to prosper. Yeah, yeah.
24:25
And I appreciate you. I mean, everybody talks about
24:27
the bricks and the silver and gold community thing outside of
24:31
it. If, if I talk bricks with my
24:33
general neighbors, they're thinking about the bricks that
24:35
our houses are made out of. But it really is a, a huge, huge
24:40
deal. And as you were talking it, it
24:42
kind of dawned on me like this is really happening.
24:45
And how could it not be with the, with the contentious
24:50
relationship that we have right now with Russia?
24:53
And then on top of that, things aren't that good with China.
24:56
And, and you know, then you throw India into the mix, Saudi
24:59
Arabia, everything going on in the world like this really is a
25:03
big deal and really is happening and, and, and that it could have
25:08
serious massive consequences. I'm not saying we're going to
25:10
wake up one morning and the dollar is going to be, you know,
25:13
completely revalued, but I think it minimum it's going to have a
25:17
major impact on the buying power of the dollar as we go into
25:20
this. It would send the headlights I
25:22
guess you could say. Ronnie, think about as all these
25:25
key central banks have been physically aggressively
25:29
accumulating gold and asking back for the gold that the
25:32
United States held for them. The other parts of the community
25:37
with sellers, mutual funds, the exchange trader funds that held
25:42
it, we're actually liquidating into that.
25:45
They weren't buyers along with this.
25:47
Now it's true in Asia and particularly China retail buyers
25:50
have been very aggressive of the goal.
25:52
But here in the Western world and particularly in North
25:55
America, we've been net sellers still of, of, of the metals
25:59
market. And this is all occurring these,
26:02
I've said this for two years now.
26:04
These central banks are not doing this to speculator for a
26:08
trade. They've recognized what is
26:10
coming and they recognize that the US dollar and US paper and
26:14
the US as a, as a country is no longer fully dependable and AAA
26:21
and they recognize that they had to take actions.
26:24
And by the time the financial service community recognizes it
26:29
and it becomes part of their talk, it'll be too late for most
26:33
people. The the the the the bond door
26:36
will have already been opened and the animals will have
26:38
escaped. Yeah, yeah.
26:40
And I and I hear this talk about how well gold has done here over
26:44
the last 18 months, two years. And the things really are
26:47
different this time, right? Like a lot of the old
26:51
relationships that everyone pointed to have really been
26:55
thrown out the window like, oh, you know, like we had ETF
26:59
outflows over that period. And that it you, if you look at
27:02
a chart over a long periods of time that there was a strong
27:05
correlation between ETF flows into the gold and silver, I
27:09
guess ETF and the price of the metals.
27:11
But we saw ETF outflows, but at the same time, we saw the price
27:16
go up that, that we, we, you know, we really truly are in, in
27:21
a different period of time right now.
27:23
I think a lot of people attribute that to the central
27:25
banks. I also heard something that that
27:29
I guess I knew, but I hadn't really thought of as being so
27:33
important that, and you alluded to this, that when the central
27:37
banks buy gold, I think it was Ronnie Stouffer, the guy, he
27:40
said they're sticky buyers, meaning they're not buying it
27:44
for a trade. They're not buying it in in
27:47
August thinking, well, we'll sell it in January and make some
27:50
profit. They buy gold, they're sitting
27:52
on it, right? They're holding it.
27:56
So to answer also I know you said you want to talk about
27:59
juniors. Let me just take you a little
28:02
back here. So I had four processes it as as
28:05
2020 came to an end for me and I just share what I do and and
28:10
what I do it most people shouldn't do, but at least give
28:12
them they can hear the reasons why.
28:14
So I said I, I think physical gold will outperform the
28:18
performance of both the stock market and bonds.
28:21
And therefore, if you're interested in capital gains, not
28:24
any other reason but to make money on something own gold.
28:28
And of course, up until now that has outperformed stocks by a
28:32
factor of two or three depending on what index you measure.
28:36
And it blew away ownership of bonds because bonds lost money
28:39
in that time. And I said four things that I
28:42
thought was going to happen. First, go without perform.
28:46
Second, the major mining companies will finally turn up
28:51
because the free cash flow that they're going to make on the
28:54
dramatic increase in the price. And since they're not an
28:57
industry that has wild expenses that you can usually contain
29:01
them and the key things that were more expensive than them
29:03
have gone lower like oil prices etcetera.
29:06
They are going to become a cash free cash flow machine.
29:10
They have, if you thought their last quarter earnings were
29:13
phenomenal, think about now they're selling gold into the
29:16
market at 2500 and all at probably an all in cost of 12/13
29:21
or $1400. It, it's going to be tremendous
29:25
gains that would lead to #3 a marked increase of mergers and
29:30
acquisitions because what these majors are going to do with
29:33
these free cash flow, they have two decisions.
29:35
This is that. Let's have a board meeting.
29:37
You and I are running, we'll call it Ron and Pete's Gold
29:40
Company, right? So we're sitting together and we
29:43
go, OK, Ronnie, we could do two things.
29:45
We we produce 2 to 3 or 4 million ounces of gold a year.
29:49
We have 20 million reserves. If we don't find any, we're out
29:52
of business in six, 7-8 years. What can we do?
29:55
We need to go out and start exploring for it ourselves and
29:59
go through that entire process and course and maybe 10 to 15
30:02
years from now, finally open up a mine that produces it to
30:06
replace what we need. Game over.
30:08
And what we won't be able to get it fast enough.
30:11
Or we can go out and acquire projects that are already in
30:17
existence or even advanced that may be producing it within
30:20
months or a few years. They've started doing that now
30:24
we've seen the mark increase in. So I'm here to tell all your
30:28
junior resource holders 3 weeks ago, and I'm not telling them to
30:32
do it like I did it, but I put almost like just about half My
30:36
Portfolio into some key junior resource stocks, all the ones
30:40
that I think are going to be taking over and actually become
30:42
mines and producers and on the expectation that those majors
30:48
are now going to have to step down.
30:49
So what I expect, what I'm anticipating doesn't mean it's
30:53
going to happen, but I've made a huge bet on it happening is
30:58
we're going to see them come down to the junior resource
31:01
market now in the next 12 to 18 months and do minimally
31:05
strategic relations where they put a certain amount of money in
31:09
the company for a certain interest or help funded or
31:12
actually acquire them. And quite frankly, when gold hit
31:17
my target at 2536, I said to myself, and I've been said it
31:22
and I'll say it again, we'll see a 3000 print without ever seeing
31:26
an under 2000 print. Now after it goes to three,
31:30
we'll, we'll, we'll judge at that time.
31:32
So that was about a 20% gain from where we, we hit my target
31:35
at 2536. I truly felt that returns on
31:40
these select portfolio mine will be far greater than the 20% that
31:44
I can make in gold. So I took some physical gold and
31:47
sold it. Not because I think the world
31:49
has come better place whatever, but use that to be in the
31:53
juniors. I think the day for the most
31:55
suffering and we've all suffered the last two to three years have
31:59
been suffering unlike anything ever imagined in my 40 year
32:03
career. The dawn of these two
32:06
conferences, 1 completing today in Colorado and 1:00 next week
32:09
will coincide with a kickoff. And I've seen it already of that
32:14
interest and it's only going to get better as the weeks and
32:18
months go ahead and. It feels like because I I too
32:23
have a significant amount of my net worth invested in junior
32:26
resource stocks. We both know that the prices,
32:31
the value, I mean, some of these companies have gold, you know,
32:35
that they've drilled, they've, they've determined it's there,
32:39
have, have, have put out resources at like 10, fifteen,
32:42
$20 per oz in the ground. And these big miners, like you
32:46
said, right? Are they, if they're, if
32:49
they're, if they have this choice, do we go out and explore
32:52
and maybe find and, and probably spend 50 or $100 per oz to try
32:57
to build this up on our own or we can just acquire one of these
33:01
junior companies And we, we pretty much know what's there.
33:05
A lot of the money's already been spent.
33:07
I mean, right now they are an unbelievable value opportunity.
33:12
And I'm wondering, as you were talking, Peter, you know, it
33:14
dawned on me, like you said, this was probably the worst two
33:17
to three years that you've seen during your career.
33:21
You know, I'm just thinking about the laws of nature, like
33:23
if you have slammed something down really hard, maybe they
33:27
could bounce back fast. Because potentially what I see
33:30
is these big companies start to acquire some of these juniors
33:34
and the momentum really gets going.
33:36
And with just the, the, the tiny market cap, even if you
33:40
aggregate it all together that all these companies have that
33:43
it's not going to take a lot of money going into that sector to
33:47
make a huge difference potentially, right?
33:49
Nobody make any financial decisions based on anything
33:52
Peter or I are saying, but could make a big quick impact in that
33:56
sector. And, and final question, have
33:58
you seen that before during your career where that junior sector
34:01
can move very quickly? We know it can move quickly to
34:05
the downside, we've experienced that, but can it bounce back
34:08
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34:12
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34:15
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34:24
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34:28
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34:37
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34:45
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34:48
The answer is yes. And let's close with this
34:50
because this is important. There are still three key
34:54
negatives to the junior resource market that didn't exist 20 or
34:58
30 years ago. So let let's talk about them.
35:01
It's first in my book, and I've talked about this for a while
35:03
and it's been the absolute number one, is there used to be
35:09
hundreds, if not thousands of finance we would call
35:11
stockbrokers. Then then we became financial
35:13
advisors who built the book of business partly around owning
35:18
junior resource stocks or their entire business was both in
35:21
Canada and the US. And so at a gold show, and I
35:25
spoke at them all, there were hundreds of those guys and gals
35:29
in the audience. And so a junior resource company
35:32
would try to sell their wares for one or more of them because
35:37
even though it was one person, that one person with them
35:40
probably put it into dozens if not hundreds of their clientele
35:44
that follow them in their portfolio.
35:47
Those are dinosaurs. They're gone.
35:50
It's just no economic way to build a book of business buying
35:54
juniors because the Commission charges can only there may still
35:58
be a few that pay something close to full Commission, but
36:01
each day there's less and less. Now that same junior company has
36:05
to go find those buyers. If the same amount were out
36:08
there and about to tell you why, I don't think they are, but
36:11
they'd have to find them on a case by case basis versus one
36:14
person who opened the door to 50 or 500 people.
36:18
The second biggest thing and this coinciding with the first
36:21
one still remains a negative and that's crypto currencies.
36:27
Honey, I'm telling you at under 40 or under 30 age, if you found
36:31
people who speculated or be considered speculation, they've
36:35
gone into cryptocurrencies, not the junior resource market where
36:39
20 or 30 years ago they would have gone partly in to the
36:43
junior resource market and cryptocurrency still suck money
36:48
away. That would go into the junior
36:50
resource market And then the third negative and it's still
36:54
here and that is regulatory here in the US.
36:58
If you're a licensed financial advisor, most firms won't even
37:01
allow you to take an unsolicited order for a junior resource
37:05
stock, even if it has an OTC symbol.
37:09
So it's more challenging for a junior resource company now to
37:15
and remember, they're burning matches, going through money,
37:19
have to raise money because they're trying to find
37:20
something, develop it, and many of them end up not doing it no
37:23
matter how hard they try. These are huge challenges.
37:27
But here's the overriding factor to those three.
37:31
There is such an enormous need for metals and at the end of the
37:36
day, the people that mostly find the initial ones and and do the
37:40
hard grunt work are juniors. And as you said, the entire
37:45
market cap of all mining companies, not just expiration
37:50
and all isn't even half of Apple, right.
37:53
So even though we have those issues to overcome when the
37:58
money flows and I believe it's begun, I started to see it now
38:01
remember this. Let me close with this, Ronnie.
38:04
Volume always precedes price change and big changes in
38:09
market, whether at tops or bottoms.
38:12
There's a tremendous change in the volume now in the juniors.
38:15
Now some people getting upset they're still not going up and
38:17
all. But understand this, we were
38:20
going down in a no bid market for two years.
38:23
There just were no bids. Somebody sold, 20,000 went down,
38:27
another two people got upset because it went down.
38:29
They sold and that was a no bid market.
38:32
It's no longer a no bid market. That's the first sign to me that
38:36
the junior market is turning. Now we're starting to see some
38:40
of them make progress. And we just conclude today, in
38:43
fact, a huge show in Beaver Creek and everything that I'm
38:46
hearing coming out of there is that there is a mood change from
38:51
last year, a much improved mood change.
38:53
So I think in the coming weeks and months we will be vindicated
38:57
for those of us who have stuck with and like you and I, have
39:00
made very large bets on the junior resource.
39:03
Model and and suffered. Well, you know, suffering in
39:07
life in general, Ron, is a way of life.
39:10
You're right. In the junior market, it's
39:12
always appears over 40 years that the periods of suffering
39:15
are much, much longer than the periods of prosperity.
39:19
But I believe a period of prosperity for the juniors is in
39:22
front of us. And, and, and I have one more
39:24
thing I want to say based on what you just said.
39:26
So you, you mentioned volume is picking up and volume always
39:30
precedes price, right. So you probably have some people
39:33
who are just getting out and you know, we're maybe we're building
39:35
this space. If the next step in the process,
39:39
and I'm and I'm I'm thinking optimistically here would be
39:42
that the majors really do start to buy out some of these junior
39:47
companies. And so we start to see, let's
39:49
say to keep it simple, let's say it overall doubling within the
39:53
junior mining sector. I'm being wildly optimistic
39:56
here, but let's say that happens over the next eight to 10
39:59
months. And if we see.
40:01
A a doubling because because like you said, like the general
40:03
retail investor, the brokers aren't recommending the stocks
40:07
anymore. So what I thought was well, but
40:08
maybe the next big catalyst will be these big major companies
40:13
because they, as we talked about, they need these
40:15
resources. If they come in and the prices
40:18
start to go up and we get 60%, eighty percent, 150% return in
40:23
some of these junior stocks that that then might, you know,
40:26
snowball into the general or just a little tiny part of the
40:31
general investing speculator community starting to pay
40:34
attention and say, wow, these junior mining sucks that that we
40:37
could have a we. You know, I'm being I'm being
40:39
wildly optimistic, but you know, I think that that we that that
40:44
that a situation like that could possibly play out.
40:46
Hopefully it does. I don't believe you're being
40:48
wisely optimistic. I think you're being realistic.
40:50
And here's the example and we'll clearly finish on this note.
40:54
Goldfields recently made a major acquisition.
40:56
They paid a 70% premium, more than double than the usual 30 or
41:01
35% premium. They paid it in cash and they
41:05
literally said one of the main reasons they did that is because
41:09
they knew there were other majors competing with them.
41:13
That's the signal that the ball has rolled in, that the
41:15
boardrooms of the top 2020 fives recognize now that they have to
41:21
go. So if I have a company, I just
41:24
have to use it? Northern Superior has almost 4
41:26
million oz. It's being valued somewhere is
41:29
around $15.00 an ounce in the ground.
41:31
They could pay double the price for the stock.
41:33
Now we'd all be kind of happy, all right to double the price
41:36
and still only pay $30.00 for in ground.
41:39
And Peter, that O Cisco acquisition that was goldfields
41:43
in South African department, I've heard many Times Now that
41:47
that was valued at $200.00 an ounce, yes.
41:51
Yes, because it was well advanced and there was another
41:55
deal done recently, which was impressive because not only did
41:58
they pay over a billion dollars for it, but they're still going
42:01
to need to put another billion dollars into it to get it into
42:04
production. So the tide has turned from the
42:07
business end of it, whether or not the investment end is still
42:10
no momentum. But you made a case in point.
42:12
You're just going to need some of those examples.
42:15
And it's probably several months still to wait till everything
42:17
basically double s, you know, the good ones and all.
42:20
And then the public wakes up and it's probably going to tie in
42:23
with a turn down in the overall market.
42:25
And now their eyes are willing to look elsewhere.
42:28
And, and that's why I've been willing to take this chance in
42:31
this late part of my life to be so aggressive at this point in
42:35
time. At least that's what I'm telling
42:36
the wife. Peter, thank you so much.
42:40
I want to remind everyone this is Peter's book, Confessions of
42:43
a Former former Wall Street Whizkid.
42:46
I've read it twice. It's a great book.
42:49
If you want to learn more about Peter Grandich, people can go to
42:52
petergrandich.com. Is that correct?
42:55
Yeah, so at petergrandich.com you can actually read the book
42:58
online. You don't even have to order it
43:00
and and buy it. So Peter, grandich.com, there's
43:05
a link that says resources hit suggested readings, all our
43:08
booklets and all that I've written there.
43:10
I do do YouTube where like great interviews like this I place up
43:15
but where most of my commenting now is on my ex page I still
43:19
call it Twitter. It's.
43:22
The best and fastest and easiest way to communicate to people and
43:27
the we're in that type of society now.
43:29
We're instantaneously. Sometimes you have to make
43:31
decisions where periods before we could wait.
43:34
Now, unfortunately, we can't. Yeah, yeah.
43:37
OK. So for our viewer, you can
43:39
follow Peter on Twitter or if you want to call it X, you can
43:42
call it X. He he does put out videos on
43:45
YouTube on a very regular basis. And then there's a daily blog
43:49
post that you can sign up for that I get every day at
43:52
petergranich.com. Peter, as always, it's a big
43:56
pleasure to get to talk to you. You're a great friend of mine
43:59
and a great friend of our channel.
44:01
I know our viewers always enjoy our conversation, so thank you
44:06
and I'll be bugging you in six or seven weeks to get you back
44:10
on on the channel. Thank you.
44:12
And put my hand on the Bible. Let me just say, the pleasure
44:14
has been all mine, Ronnie. Thank you, Peter.