Latest / Financial Survival Network / Gold and Silver Markets Surge Forward - David Erfle #6173

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Gold and Silver Markets Surge Forward - David Erfle #6173 · Financial Survival Network

0:00
Speaker 1: We're starting to see mainstream interests come into the sector,
0:03
Speaker 1: and a third consecutive blowout quarter is going to get
0:07
Speaker 1: these fund managers really interested in this sector, especially if
0:10
Speaker 1: the stock market starts to.
0:11
Speaker 2: Roll over in earnest.
0:12
Speaker 1: It's starting to roll over here today, and you know,
0:16
Speaker 1: investors are going to look for something to rotate their
0:20
Speaker 1: incredibly huge AI gains into something that is undervalued. And
0:27
Speaker 1: I don't think there's very many sectors out there more
0:30
Speaker 1: undervalue than gold stocks. To pipe the gold price being
0:34
Speaker 1: up thirty four percent this year and trading at all
0:38
Speaker 1: time highs over twenty seven hundred dollars an hours.
0:40
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1:08
Speaker 2: And welcome.
1:09
Speaker 4: You are watching and listening to the Financial Survival Network.
1:12
Speaker 4: I'm your host, Carrie lutz Well gold broke twenty seven
1:16
Speaker 4: hundred the other day silver silver was up there thirty
1:21
Speaker 4: five dollars silver just a hair's breath away. Well, let's
1:25
Speaker 4: find out exactly what's going on, because we talked about
1:27
Speaker 4: this a couple of months back with David Earfley Junior
1:32
Speaker 4: Minor Junkie dot com and if you've got a question
1:35
Speaker 4: with David myself, email kl at Karrie Lutz dot com.
1:38
Speaker 4: David as always welcome back. So the market's kind of
1:43
Speaker 4: got new life in it since silver started taking off.
1:47
Speaker 1: Yeah, thanks, Kerry. Always great to be on the program
1:50
Speaker 1: with you.
1:51
Speaker 2: Yeah.
1:51
Speaker 1: I mean we've been we've been expecting this to happen,
1:54
Speaker 1: but it's always the timing, right, we just didn't know when.
1:56
Speaker 1: And sure enough, it was the silver price that triggered everything.
2:02
Speaker 1: And thirty two point fifty was really strong resistance in
2:06
Speaker 1: silver for quite a while, and a couple of weeks
2:09
Speaker 1: ago the gold price had an eighty dollars correction and
2:14
Speaker 1: finally start and we saw some selling in the miners,
2:18
Speaker 1: more selling in the miners than you would expect. But
2:21
Speaker 1: at the time, excuse me, the miners were consolidating in
2:27
Speaker 1: a bullish flag and a four week bullish flag from
2:30
Speaker 1: a huge move in early September. In early September, we
2:34
Speaker 1: saw GDX and GDXJ go up double digits in one week,
2:38
Speaker 1: so that move had to consolidate, and it was consolidating
2:41
Speaker 1: there for four weeks, and that during that eighty dollars
2:44
Speaker 1: correction in the gold price, the miners broke down out
2:48
Speaker 1: of that flag intra week and ke came down to
2:53
Speaker 1: test their fifty day moving averages. Well, they moved right
2:57
Speaker 1: back up into that bull flag and it was it
3:00
Speaker 1: was pretty much a bear trap. And at the same time,
3:04
Speaker 1: the SIL and sil J made a fifty two week
3:08
Speaker 1: high made fifty two week highs that week, while GDX
3:12
Speaker 1: and GDXJ did not, And this was taking place while
3:15
Speaker 1: silver was still showing relative weakness to gold. So that
3:18
Speaker 1: was a little tell that silver was about to break
3:22
Speaker 1: out because the miners were signaling that silver was finally
3:26
Speaker 1: about to break that thirty two to fifty dollars ceiling,
3:30
Speaker 1: and it certainly did the following week we had and
3:35
Speaker 1: matter of fact, yesterday silver closed at thirty five dollars,
3:38
Speaker 1: which was the next resistance level. It went up there
3:41
Speaker 1: really quickly. That's what happens when silver moves in both directions,
3:44
Speaker 1: it moves really quickly. So and also we've had now
3:49
Speaker 1: we've had a breakout above that resistance, above that multi
3:52
Speaker 1: year resistance. When the miners were flagging, they were flagging
3:56
Speaker 1: below multi year resistance and forty in the GDX and
4:00
Speaker 1: forty nine and the GDXJ, and they broke out simultaneously
4:04
Speaker 1: with the silver price. See when you've seen basically you
4:10
Speaker 1: saw that gold move. When gold broke out about twenty
4:13
Speaker 1: one hundred ran to twenty five hundred, it did not
4:16
Speaker 1: take gold stocks and the miners with it. Gold stocks
4:19
Speaker 1: and the miners continue to lag. I think the reason
4:22
Speaker 1: for that is that the major reason for the gold
4:28
Speaker 1: price breaking out was central banks buying gold, and central
4:32
Speaker 1: banks don't buy gold stocks and they don't buy silver,
4:36
Speaker 1: so those were lagging. So we needed we needed basically
4:41
Speaker 1: the miners to break out of those strong resistance levels
4:44
Speaker 1: at the same time as silver was breaking out of
4:47
Speaker 1: the strong resistance.
4:48
Speaker 2: And that's indeed what's.
4:50
Speaker 1: Happened, and it's also brought in a lot of mainstream
4:54
Speaker 1: activity into into the gold price. You've seen now you're
4:59
Speaker 1: seeing West investors buying gold ETFs, even though that China
5:05
Speaker 1: has stopped buying for the past five months. You see,
5:08
Speaker 1: when the gold price got too high, China stop buying.
5:11
Speaker 1: They were buying when it was cheap, and now the
5:14
Speaker 1: Western investors are pretty much taking up that slack for
5:17
Speaker 1: the past five months.
5:18
Speaker 4: So I guess the question everyone's asking is, now that
5:22
Speaker 4: we've had these breakouts, will it will gold and silver
5:27
Speaker 4: again seek to frustrate the majority of investors like they
5:32
Speaker 4: always do.
5:33
Speaker 2: Well.
5:34
Speaker 1: I don't see that happening. I see weakness continuing to
5:38
Speaker 1: be bought now that these strong resistance levels are trying
5:41
Speaker 1: to become floors, especially now that you're finally seeing some
5:46
Speaker 1: mainstream retail investment coming into the sector. That was the
5:49
Speaker 1: big thing that was lacking in this sector was that
5:53
Speaker 1: the main was basically retail who left this sector about
5:57
Speaker 1: twelve years ago. When gold breakdown broke down below fifteen
6:01
Speaker 1: hundred back in twenty thirteen, that pretty much took the
6:05
Speaker 1: generalists out of the sector, and especially out of the
6:08
Speaker 1: mining sector, and even more especially out of the junior sector.
6:12
Speaker 1: The juniors have been wallowing around at really depressed levels
6:18
Speaker 1: despite the gold price rising to nearly twenty eight hundred
6:23
Speaker 1: dollars now. But recently we've seen that change. We've seen
6:28
Speaker 1: since the GDX, GDX and GDXJ broke out above those
6:33
Speaker 1: strong resistance levels. Last week, we're seeing we're seeing a
6:36
Speaker 1: lot of juniors do the same, and we're seeing lagging
6:40
Speaker 1: juniors starting to break out of a strong accumulative bases
6:44
Speaker 1: at much lower levels. So the juniors still have a
6:47
Speaker 1: lot of catching up, even though the miners still have
6:50
Speaker 1: a lot of catching up to the gold price. I mean,
6:52
Speaker 1: the GDX still has about twenty five percent to get
6:56
Speaker 1: higher to go to reach its twenty eleven peak when
7:00
Speaker 1: gold was still well below two thousand dollars an ounce,
7:04
Speaker 1: But the GDXJ has has about sixty five percent more
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Speaker 1: to gain since it broke down from its from its
7:14
Speaker 1: high at one thirty seven back in twenty eleven. It's
7:17
Speaker 1: still it's still right around fifty four to fifty five
7:20
Speaker 1: dollars here, So it's got plenty of catching up to do.
7:23
Speaker 1: And then if you take a look at the smaller
7:25
Speaker 1: juniors that are that are still that are still well
7:28
Speaker 1: below that are still basically training at well below where
7:32
Speaker 1: they should considering where the gold price is, that's where
7:35
Speaker 1: the real opportunity lies.
7:37
Speaker 4: Remember we talked about Neumont last time and the stellar earnings,
7:42
Speaker 4: and you know, like it still took the market like
7:46
Speaker 4: two more weeks after we talked about it, even though
7:49
Speaker 4: earnings were coming up, and we all knew it to
7:52
Speaker 4: break out, and now Neumont. When we talked, I think
7:56
Speaker 4: Newmont was forty one or forty two. It's now fifty
7:59
Speaker 4: eight and it went even higher than that.
8:02
Speaker 1: Yes, And speaking of Newmont later today after the close
8:07
Speaker 1: today here on October twenty third, Newmont's going to kick
8:11
Speaker 1: off Q three earning seasons with their financial results, and
8:15
Speaker 1: they're expected to really blow it out of the park
8:19
Speaker 1: because basically the gold price, the gold price in Q
8:23
Speaker 1: three average twenty four to seventy seven an ounce, which
8:27
Speaker 1: is one hundred and forty dollars dollars higher than where
8:30
Speaker 1: it and then it averaged in Q two and we
8:34
Speaker 1: had blowout quarters in Q one and Q two in
8:37
Speaker 1: Newmont and several and most other major mining companies.
8:41
Speaker 2: So I expect that.
8:44
Speaker 1: Once Newmont comes out with their results today, that'll set
8:49
Speaker 1: the tone for the rest for the rest of the
8:52
Speaker 1: sector going into the end of the year. And I
8:54
Speaker 1: wouldn't be surprised to see Newmont beat expectations and this so,
9:00
Speaker 1: like I said, this will be the third quarter of
9:03
Speaker 1: minors eating expectations. So I don't see general as fund
9:09
Speaker 1: managers being able to ignore this sector too much longer.
9:13
Speaker 1: And like I said, we're starting to see mainstream interests
9:16
Speaker 1: come into the sector, and a third consecutive blowout quarter
9:20
Speaker 1: is going to get these fund managers really interested in
9:23
Speaker 1: this sector, especially if the if the stock market starts
9:25
Speaker 1: to roll over in earnest, it's starting to roll over
9:28
Speaker 1: here today, and you know, investors are going to look
9:31
Speaker 1: for something to rotate their incredibly huge AI gains into
9:38
Speaker 1: something that is undervalued. And there's I don't think there's
9:42
Speaker 1: there's very many sectors out there more undervalued than gold stocks.
9:46
Speaker 1: Despike the gold price being up thirty four percent this
9:50
Speaker 1: year and trading at all time highs over twenty seven
9:54
Speaker 1: hundred dollars an hours.
9:55
Speaker 4: And you know Newmont broke the cup with a handle
9:59
Speaker 4: pattern back back earlier a few months earlier, right, we
10:04
Speaker 4: were watching.
10:05
Speaker 2: That cup with the handle.
10:07
Speaker 1: Well, well yeah, I mean, but if you take a
10:10
Speaker 1: look at the silver price now, that's got an even
10:13
Speaker 1: more attractive cup and handle patterns. Matter of fact, the
10:17
Speaker 1: handle has got its own cup and handle pattern from
10:22
Speaker 1: a from a multi year, a multi decade cup in silver.
10:27
Speaker 1: I mean, I don't even know if you could consider
10:29
Speaker 1: it a cup and handle sets it's since it's been
10:31
Speaker 1: that long. But the silver price is incredibly bullish, especially
10:36
Speaker 1: when you consider the fact that the gold price is
10:39
Speaker 1: now finally reached it's it's it's inflation adjusted high set
10:45
Speaker 1: back in nineteen in January of nineteen eighty, when we
10:49
Speaker 1: had in gold price have that huge spike ending to
10:53
Speaker 1: the bull market in January nineteen eighty when it got
10:56
Speaker 1: to eight hundred and fifty dollars an ounce. Well, the
10:58
Speaker 1: gold price had yet to reach that level in inflation
11:03
Speaker 1: in government inflation adjusted terms until just recently. But if
11:08
Speaker 1: you take a look at silver, the silver price needs
11:12
Speaker 1: to get to one hundred and fifty dollars to reach
11:15
Speaker 1: its inflation adjusted price that the hut Brothers took it
11:19
Speaker 1: to back in nineteen eight.
11:21
Speaker 2: Yeah.
11:21
Speaker 4: Well, Eric Sprot's saying three hundred dollars silver, right.
11:26
Speaker 1: Yeah. Well, you know, I don't know about these grandiose
11:30
Speaker 1: calls about goal. I saw a number today and goal
11:33
Speaker 1: of one hundred and fifty thousand dollars. Now you always
11:35
Speaker 1: see these crazy calls when you see the gold market
11:39
Speaker 1: really start to take off. I like to be more pragmatic,
11:43
Speaker 1: and I'll be very happy if the gold price hits
11:46
Speaker 1: my target of three thousand dollars by Q one of
11:49
Speaker 1: next year.
11:50
Speaker 2: Very likely, very likely.
11:52
Speaker 4: So what effect of any do you think the electionists having.
11:58
Speaker 4: You know, everybody talks about the election, not from a
12:01
Speaker 4: political standpoint of course, but just just in terms of
12:04
Speaker 4: markets and is Trump good for inflation?
12:10
Speaker 1: Well, it's Gold's got so many tailwinds. You know, you've
12:14
Speaker 1: got the debt situation, You've got the geopolitical situation. You've
12:18
Speaker 1: got this contentious US election that's drawing even closer where
12:23
Speaker 1: you know, it's shaping up to where neither side is
12:25
Speaker 1: going to accept the result, and that would would create
12:29
Speaker 1: even more chaos in the marketplace. You know, you've got
12:34
Speaker 1: on the Democrat side, they're saying that Trump is basically
12:37
Speaker 1: a felon and if he wins, he shouldn't be president president.
12:41
Speaker 1: And then on the Republican side, you've you've got the
12:45
Speaker 1: publicans saying that Kamala is not even a legitimate candidate
12:48
Speaker 1: because she didn't go through the process. So I wouldn't
12:51
Speaker 1: be surprised if the result when we do get one
12:54
Speaker 1: on November sixth or seventh or whatever, it's going to
12:57
Speaker 1: be that will probably be that will probably that will
13:00
Speaker 1: probably go and have to be decided in the Supreme Court.
13:04
Speaker 1: So there's no doubt that the gold price is sensing
13:08
Speaker 1: all this chaos going on, and it just continues to rise,
13:12
Speaker 1: and each each time we have dips, their body even quicker.
13:16
Speaker 1: I mean, we had that that eighty dollars correction lasted
13:19
Speaker 1: within a week and it was bought right away and
13:23
Speaker 1: then went right back up over twenty seven hundred and
13:26
Speaker 1: created I think it's thirty ninth or fortieth daily all
13:29
Speaker 1: time high since March. So yeah, it's it's really interesting
13:35
Speaker 1: the way it's unfolding here, and it's kind of scary
13:37
Speaker 1: at the same time.
13:40
Speaker 4: Yeah, a little bit. It'll be interesting to see how
13:44
Speaker 4: they get out of this mess if they want to. Yeah,
13:48
Speaker 4: it's a mess.
13:49
Speaker 1: It's a very it's a very dangerous situation. I mean, sure,
13:54
Speaker 1: as gold investors, you like to see the gold price rising,
13:57
Speaker 1: but for the reasons why it's right, you're not really
14:01
Speaker 1: happy about.
14:03
Speaker 4: Well, then you've got the collapse of China taking place
14:06
Speaker 4: as well, which you know.
14:09
Speaker 1: Right, the stimulus there that they that they tried to
14:13
Speaker 1: save their market. Yeah, I mean that's that's also keeping
14:16
Speaker 1: the gold price higher. And then we had Canada come
14:18
Speaker 1: out today and lower another fifty basis points, so you know,
14:22
Speaker 1: lower real interest rates. Uh, these geopolitical chaos, you know,
14:28
Speaker 1: the debt situation which is untenable. I mean, neither of
14:31
Speaker 1: these presidential candidates even brings it up because there's no
14:34
Speaker 1: answer for it.
14:35
Speaker 2: Yeah, ain't that the truth? Uh?
14:38
Speaker 4: Yeah, so to be avoided at all possible costs.
14:42
Speaker 1: Right, gold looks just that, the gold chart looks just
14:45
Speaker 1: looks just like a giant middle finger everything that's going
14:49
Speaker 1: on right now.
14:50
Speaker 4: Yes, it does, Yes, it does. All right, So what
14:54
Speaker 4: do you think we can look forward to? You said
14:56
Speaker 4: three thousand dollars gold by Q one of the twenty five.
15:02
Speaker 1: Yeah, and you could see silver hit forty dollars. I mean,
15:04
Speaker 1: it's already hit thirty five. And we're seeing a nice,
15:07
Speaker 1: little healthy correction today because it went from thirty two
15:10
Speaker 1: fifty to thirty five dollars in just a few sessions.
15:14
Speaker 1: But yeah, I mean, and at the same time you're
15:17
Speaker 1: seeing silver come down and probably test the breakout at
15:21
Speaker 1: thirty two fifty thirty three. You're also seeing a lot
15:25
Speaker 1: of these gold stocks and silver stocks that are breaking
15:28
Speaker 1: out of their huge consolidation patterns from a multi year resistance.
15:35
Speaker 1: They're coming back to test their resistance. So that's giving
15:38
Speaker 1: you know, speculators an opportunity to get into these stocks
15:42
Speaker 1: that have already broken out.
15:43
Speaker 4: All right, So the stocks are gonna be active, and
15:47
Speaker 4: the M and A is also picking up. We've seen
15:50
Speaker 4: a few major acquisitions take place since we last spoke.
15:55
Speaker 1: Yes, I mean, you know, these mining assets controlled by
15:58
Speaker 1: juniors that provide new gold sources and let and and
16:02
Speaker 1: leverage to to these company portfolios that need need growth
16:07
Speaker 1: that they're they're becoming increasing increasingly attractive to the to
16:11
Speaker 1: these to these majors and mid tiers because you know,
16:16
Speaker 1: with with all with with with the with the rising
16:19
Speaker 1: cash flow that they're creating now with you know, with
16:22
Speaker 1: margins now, I mean, these margins are going to in
16:25
Speaker 1: Q three are going to be upwards of one thousand
16:27
Speaker 1: dollars an ounce. So they've already they've already concentrated on
16:31
Speaker 1: the health of their ballot sheets. They've got healthy ballot sheets.
16:34
Speaker 1: They've got a lot of cash, they're paying dividends, they're
16:37
Speaker 1: doing share buybacks. The next thing they got to do
16:40
Speaker 1: is replace those ounces and there, and they've started to
16:42
Speaker 1: do that now and m and as really started to
16:44
Speaker 1: pick up.
16:45
Speaker 4: Yeah, and we saw with Newmont in particular, took like
16:50
Speaker 4: a lot of write offs. They knew this was going
16:53
Speaker 4: to happen, so they clean they cleared the decks, they
16:56
Speaker 4: wrote off everything. They're selling all sorts of what what
17:01
Speaker 4: what they call.
17:03
Speaker 1: A lower tier ass tier two assets.
17:06
Speaker 4: Yeah, which any mining company out there would give their
17:09
Speaker 4: I exactly what are what are they thinking here?
17:13
Speaker 1: Because well, they're concentrating on higher margin ounces and bigger
17:17
Speaker 1: deposits with blue sky potential. They're that they want the
17:20
Speaker 1: best of the best, and but where is it doesn't exist?
17:23
Speaker 1: The best of the best. It does, and they've got
17:27
Speaker 1: and they're holding onto the to the to the minds
17:30
Speaker 1: that that that they feel meet their tier one criteria
17:33
Speaker 1: that that produce upwards of you know, three hundred over
17:36
Speaker 1: three hundred thousand ounces a year. They have ten fifteen
17:41
Speaker 1: to twenty year reserves. So this is this is the
17:45
Speaker 1: sweet spot. And you know, there's there's not a lot
17:48
Speaker 1: of those assets around and now that now that the
17:52
Speaker 1: gold price has really taken off a lot of these
17:56
Speaker 1: numbers that that that these analysts are are are basing
18:00
Speaker 1: these numbers on, you know, their fantasy. I mean, there's
18:05
Speaker 1: no way that I really don't see the gold price
18:07
Speaker 1: going back below two thousand dollars an ounce. Yet a
18:09
Speaker 1: lot of these economic studies are still done two at
18:12
Speaker 1: sub two thousand dollars an ounce. So the market is
18:16
Speaker 1: starting to price in the fact that, hey, the floor
18:20
Speaker 1: should probably be twenty five hundred dollars an ounce. So
18:23
Speaker 1: if you use twenty five hundred dollars an ounce as
18:25
Speaker 1: a floor, just about every major deposit out there that
18:29
Speaker 1: has that hasn't that has a late that has a
18:32
Speaker 1: late stage economic study, makes good money at twenty five
18:36
Speaker 1: hundred dollars an ounce for you. Yeah, the market hasn't
18:40
Speaker 1: really caught onto the the you know, the smart money's
18:43
Speaker 1: caught onto this because we've seen a lot of these
18:46
Speaker 1: juniors really take off with the GDX and gend XJ,
18:50
Speaker 1: the late stage juniors with these high margins that are
18:53
Speaker 1: high margin, especially if they're if they're at the finance stage,
18:56
Speaker 1: close to the finance stage, they're shovel ready or close
18:59
Speaker 1: to being shell already out there, they've really taken off.
19:04
Speaker 2: But there's a few of them right there.
19:06
Speaker 1: Right, there's there's very there's very few of those projects
19:10
Speaker 1: out there. So so what's going to happen is after
19:15
Speaker 1: these these these juniors have already brought up so much,
19:18
Speaker 1: they're going to start, you know, rotating those profits into
19:21
Speaker 1: the lower tier juniors that that that's still you know
19:25
Speaker 1: that they still reach that criteria, but maybe they're not
19:28
Speaker 1: at the finance stage or and they still need some
19:33
Speaker 1: more de risking, or also they also need more permit
19:37
Speaker 1: de risking. That's the thing, because some of these projects
19:40
Speaker 1: are still two, three, four years away from being shovel ready.
19:44
Speaker 4: And then the lesser jurisdictions right less secure exactly exactly.
19:51
Speaker 1: No jurisdiction is completely one hundred percent safe, but there
19:55
Speaker 1: are top tier jurisdictions and lower tier jurisdictions, and the
19:58
Speaker 1: ones in top tier jurisdictions, you know, you say you've
20:01
Speaker 1: got you know you you've got this multi million ounced
20:05
Speaker 1: deposit that you're de risking in Canada just a top
20:09
Speaker 1: to your jurisdiction. And you've got the access to capital
20:14
Speaker 1: you know you've got, you've got the you've got the
20:16
Speaker 1: really tight share structure. You've done a great job raising
20:18
Speaker 1: money at the right times. But you look at the
20:20
Speaker 1: permitting and it's going to be another two three years
20:23
Speaker 1: before it gets permitted, because it takes a long time
20:25
Speaker 1: to get a mine permitted in Canada. Yes, and then
20:28
Speaker 1: maybe you go over to West Africa to a company
20:31
Speaker 1: like Cote de Wis, which is a lower risk jurisdiction
20:37
Speaker 1: and a higher risk area of the world. If you
20:40
Speaker 1: need to permit over there, you just ask for one
20:42
Speaker 1: and they give it to you.
20:44
Speaker 2: Yeah. Yeah, so exactly.
20:46
Speaker 1: And THEA and and Kote de Wa Absolutely they're you know,
20:51
Speaker 1: and because basically they they take a chunk of them,
20:54
Speaker 1: they take a chunk of the asset, they take ten,
20:57
Speaker 1: you know, fifty ten percent of the asset, and they
21:01
Speaker 1: give you the permit as soon as you need it.
21:03
Speaker 2: Okay, got a question for you.
21:05
Speaker 4: They were a sponsor of my show years back, and
21:09
Speaker 4: they were direct they were directly impacted by the last election.
21:14
Speaker 4: Assume that the former president forty five gets elected. I'm
21:19
Speaker 4: talking about Trilogy, because they had the permit to build
21:23
Speaker 4: the road and the moment Your Way Ambler hambled the
21:28
Speaker 4: big huge contention bane of contention over there, and it's
21:31
Speaker 4: hit a lot of Alaskan companies. Yeah, I mean because
21:35
Speaker 4: You're already starting to see these stocks move because it
21:38
Speaker 4: because it looks increasingly likely that Trump's going to win
21:42
Speaker 4: the election. So anything that's going to benefit from Trump
21:45
Speaker 4: winning the election, as far as permitting is concerned, these
21:48
Speaker 4: companies stocks are already getting a bit higher. And you
21:52
Speaker 4: know that this time, because he knows how the system works,
21:56
Speaker 4: he's going to be vicious in getting rid of all obstacles,
22:00
Speaker 4: like for instance, I mean, this is totally off topic,
22:03
Speaker 4: and I'm not This isn't my vote of support for him.
22:06
Speaker 4: This is just a fact of his last administration. It
22:10
Speaker 4: was taking ten years to get a highway project cleared
22:14
Speaker 4: through the Department of Transportation in Washington.
22:18
Speaker 2: And what did he do.
22:19
Speaker 4: He said, if there's no significant federal environmental action, something
22:25
Speaker 4: like fifty page or one hundred pages will do. But
22:29
Speaker 4: if there's federal action, one hundred and fifty and you're
22:33
Speaker 4: getting one person who is in charge of your application
22:37
Speaker 4: throughout the lifespan of it, at this speeded things up dramatically.
22:41
Speaker 4: Not to mention the policy of before you can pass
22:45
Speaker 4: one new regulation, you got to get rid of two,
22:48
Speaker 4: and that actually turned into twenty. So assume that he
22:52
Speaker 4: hits the ground running. This could be a golden period
22:56
Speaker 4: for mining here.
22:59
Speaker 1: Yes, I mean it's you know, it's it's no secret
23:04
Speaker 1: that we need more.
23:06
Speaker 2: Metals for this, you know, for this, for this.
23:08
Speaker 1: Green movement and this pipe, mean pipe exactly. So you know,
23:16
Speaker 1: they've got to fast track these permitting timelines. And in
23:20
Speaker 1: Canada and the US they call them top tier jurisdictions,
23:23
Speaker 1: but then you know which, which I agree they are
23:26
Speaker 1: because because of the governments and less confiscation on the
23:31
Speaker 1: back end. But that frunt end exactly. But the red
23:34
Speaker 1: tape you have to go through and the timelines you
23:37
Speaker 1: have to deal with to get these permits is too long,
23:40
Speaker 1: and they're already starting to address.
23:42
Speaker 2: It in BC. Imagine, yeah, exactly.
23:47
Speaker 4: Imagine if copper projects get green lighted like Trilogies, which
23:52
Speaker 4: is one of the best on tape waiting permit.
23:56
Speaker 1: They've got everything stet up and is waiting for that permit,
23:59
Speaker 1: and we.
24:00
Speaker 4: Don't even know how much they really have there because
24:02
Speaker 4: there's multiple deposits that they haven't even gone into because
24:05
Speaker 4: the market won't price it, so why bother with it?
24:08
Speaker 4: But there's multiple projects, potential projects a district district right
24:13
Speaker 4: there that's probably the richest copper untapped copper deposit in
24:18
Speaker 4: the world or one of the top three. So and
24:22
Speaker 4: then just imagine that they unleash lithium production, which there's
24:27
Speaker 4: no real reason to do it, but there's no reason
24:30
Speaker 4: not to not there's no reason to inhibit any of
24:33
Speaker 4: these productions, any of these minerals so called crucial ones,
24:38
Speaker 4: because the state of the art of mining is not
24:43
Speaker 4: like it was one hundred years ago or even thirty
24:47
Speaker 4: years ago. You know, we're in a different realm, so environmentally,
24:51
Speaker 4: it's just the objections aren't real. And imagine they unleash
24:57
Speaker 4: it and lithium goes down to a fraction and what
25:01
Speaker 4: it is now, which is a fraction of what it
25:03
Speaker 4: was a couple of years ago, and all these other
25:06
Speaker 4: metals that we need, you know, we could see we
25:09
Speaker 4: could see a major impact here.
25:12
Speaker 2: Absolutely. Yeah.
25:13
Speaker 1: I mean especially in silver, because silver has been at
25:17
Speaker 1: a deficit now for four years and you know, it's
25:22
Speaker 1: just neat, it's it's it's it's required in so many things.
25:25
Speaker 1: It's it's so it's required in so many more things
25:27
Speaker 1: now than it was twenty years ago. But it's now
25:29
Speaker 1: more of an industrial metal that it is a precious metal.
25:32
Speaker 1: It's required in my safe, in my and might as well.
25:38
Speaker 2: I've always held on, you know, I had to. I
25:41
Speaker 2: had to sell.
25:42
Speaker 4: Little gold over the years, divorces, taxes, weddings and all
25:48
Speaker 4: that good shift. And you know, if that's the first
25:51
Speaker 4: time I ever cursed in the show in fourteen years,
25:54
Speaker 4: and it's just the devoce here divorce is so. But
25:59
Speaker 4: I never sold an ounce of silver and even added
26:01
Speaker 4: to it in all tame here. Yet the junk silver
26:04
Speaker 4: that I bought it less than five bucks an ounce
26:06
Speaker 4: back in two thousand and three, two thousand and four,
26:09
Speaker 4: whatever it was, I still got it all.
26:10
Speaker 2: I'm not touching it.
26:12
Speaker 4: And I was a big buyer after the financial collapse
26:17
Speaker 4: when it was seven to nine dollars announce and ten
26:21
Speaker 4: and I bought up until the load twenties, which I
26:24
Speaker 4: never regretted, but not much. In the load twenties, almost
26:28
Speaker 4: all of it, and the junk silver, I think I
26:31
Speaker 4: was paying eight nine thousand dollars a bag. What's what's
26:34
Speaker 4: a bag of junk?
26:35
Speaker 2: Now? Oh? I don't know.
26:37
Speaker 1: I don't even follow it anymore, but I know that.
26:39
Speaker 1: But when I bought it it was twenty was junk
26:42
Speaker 1: was trading at a discount dicund to the Yeah, same
26:46
Speaker 1: same here exactly. Nope, can't. You can't get discount to
26:50
Speaker 1: spot at all anymore. There's the premium to spot on everything.
26:53
Speaker 2: Now. You know what I bought, I did.
26:55
Speaker 4: It was just an exercise for community members to show
26:58
Speaker 4: that you could be done. I bought war Nichols, maybe
27:02
Speaker 4: a couple thousand bucks worth, but they're thirty five percent
27:05
Speaker 4: silver and they were trading it like a twelve percent
27:08
Speaker 4: discount to melt.
27:10
Speaker 2: Value when I bought them. David Hi, Right, it's right.
27:14
Speaker 1: Yeah, it's say collecting juniors that are trading it less
27:16
Speaker 1: than catching the bank.
27:17
Speaker 4: Yeah, I mean, like, what are they thinking here is
27:20
Speaker 4: this isn't rational here? These are these markets are not
27:24
Speaker 4: behaving rational. And hopefully I'll be alive when they start
27:28
Speaker 4: trading rationally. And I think we're getting to that point.
27:31
Speaker 4: And I still got a little life left in me. Yeah, absolutely, yes,
27:35
Speaker 4: little a little bit, a couple more years hopefully, if
27:39
Speaker 4: God willing. But but you know, we're not stop clocks here, right,
27:45
Speaker 4: We're not right twice a day, whether we do anything
27:49
Speaker 4: or not. This is the result of analysis and understanding
27:53
Speaker 4: markets that we stood our position.
27:56
Speaker 2: Oh absolutely. Yeah.
27:57
Speaker 1: For over twenty years, I've stood my position on this
28:01
Speaker 1: and it's been it's been a long, crazy roller coaster ride.
28:05
Speaker 1: But I wouldn't do anything different. I love doing it
28:09
Speaker 1: and I love it educating people on the not only
28:15
Speaker 1: the value of gold and silver, but basically I'm teaching
28:19
Speaker 1: them how to manage their risk while trying to make
28:22
Speaker 1: money in this very risky and volatile sector.
28:26
Speaker 4: Volatile sector, but when it moves, it moves like like
28:30
Speaker 4: no one's business. And just a couple of pointers out
28:33
Speaker 4: there for you people. If you're buying stuff from people
28:36
Speaker 4: you don't know, you got to the first thing you
28:39
Speaker 4: have to do with every coin you.
28:41
Speaker 2: Buy is weigh it all right. If it's off by
28:45
Speaker 2: a bit.
28:46
Speaker 4: You know, drop it, do the sound test, and if
28:50
Speaker 4: you can find somebody with the X ray gun, x
28:53
Speaker 4: ray it, because that is fool proof.
28:56
Speaker 2: You can't.
28:56
Speaker 1: Yeah, tungsten weighs the same amount, right, right, Because I've
29:00
Speaker 1: heard of a silver coming out of fakes rounds coming
29:04
Speaker 1: out of China, like Northwest Territorial which was the operation,
29:08
Speaker 1: but they weighed exactly the same.
29:10
Speaker 2: But the measurements are off. You're not in a position.
29:13
Speaker 4: When you're looking to buy metal that you're going to
29:15
Speaker 4: be measure it with a caliper and all that. You
29:18
Speaker 4: just not but you certainly can weigh it. Weigh a
29:21
Speaker 4: bunch of them at once, drop them and listen to
29:25
Speaker 4: the music. The musical sound of silver, it's unmistakable. And
29:31
Speaker 4: get a scanner. Other people have scanners. Scanners work almost
29:35
Speaker 4: as good as the X rays. But that's just a
29:38
Speaker 4: piece of advice because no matter how much you trust
29:41
Speaker 4: who you're buying it from, generally they're going to be good,
29:45
Speaker 4: but sometimes they get beat.
29:47
Speaker 1: So you have to be vigilant for this. And the
29:51
Speaker 1: generalist investor finally starts to come into this sector more
29:55
Speaker 1: and more. The scams are going to increase even more
29:58
Speaker 1: and more. And the fakes, David, are better than ever.
30:01
Speaker 1: I mean, I could be faked. I mean, and you can't.
30:06
Speaker 1: If you just go to some guy in the market,
30:08
Speaker 1: you can't trust them when they say, oh, this isn't real.
30:11
Speaker 1: You have to go to a real person, a real
30:14
Speaker 1: coin shop or bullioned dealer, and don't get screwed on
30:19
Speaker 1: this because you know, like I know, if I buy
30:22
Speaker 1: from Andy Sckman, I never have to worry. But I
30:25
Speaker 1: still check and and I weigh it. You know, I
30:29
Speaker 1: definitely weigh it. If the weight's off, then you've got
30:31
Speaker 1: to go further. If the wait's spot on, generally you're
30:34
Speaker 1: going to be good.
30:35
Speaker 4: So that's just a warning to you people out there
30:37
Speaker 4: who have woken up to the wisdom of our ways
30:41
Speaker 4: and now know that this thing is real and what
30:44
Speaker 4: we've been telling you me for fourteen years, you for longer, David,
30:51
Speaker 4: is true.
30:53
Speaker 1: Yeah, it's it's it's really starting to happen, and it's
30:59
Speaker 1: it's you know, this sector is so freaking tiny. It
31:02
Speaker 1: doesn't take a lot of generalist interest to really started
31:05
Speaker 1: moving and then buying begets buying, just like selling has
31:09
Speaker 1: begotten selling over the past few years.
31:11
Speaker 2: When the gold.
31:12
Speaker 1: Price has risen so much.
31:14
Speaker 4: If Eric Sprought went into the silver market tomorrow and
31:17
Speaker 4: bought up two hundred and fifty million dollars of silver
31:22
Speaker 4: on the COMEX, that would make a dent, and then
31:26
Speaker 4: he could he could do he could pull a Warren
31:28
Speaker 4: Buffett move and something like that. But he doesn't need to.
31:32
Speaker 4: But you know, I think he's going to be as
31:35
Speaker 4: rich as Elon Musk wrote an article about it when
31:38
Speaker 4: the market really breaks out I.
31:40
Speaker 1: Wouldn't be surprised. I wouldn't put it past him. Yeah,
31:42
Speaker 1: he will be as rich as Elon Musk. But that's
31:45
Speaker 1: for another day. David, tell us where do we find you?
31:49
Speaker 1: How do we subscribe? How do we connect with you?
31:51
Speaker 2: Yeah?
31:52
Speaker 1: My website is Junior Minor Junkie with a y dot
31:55
Speaker 1: com and you could also find me on kit go.
31:58
Speaker 1: Each week, I have a weekly column that's posted every Friday.
32:02
Speaker 4: All right, excellent, and I will read it every Friday.
32:05
Speaker 4: You can subscribe it. It'll come to your mailbox. Just
32:07
Speaker 4: go over to David's site and the link is in
32:11
Speaker 4: the show notes to this interview. Questions for David and
32:13
Speaker 4: myself shoot an email to me kl at Carrie Lutz
32:17
Speaker 4: dot com. David, we'll talk to you in six weeks
32:20
Speaker 4: or so. Let's see what's happening. Okay, buddy, looking forward
32:22
Speaker 4: to it. Always great to see you.
32:24
Speaker 3: Thanks for listening to Carrie Letz's Financial Survival Network, your
32:28
Speaker 3: solution to today's trying times. For the latest, go to
32:32
Speaker 3: Financial Survivalnetwork dot com. Financial Survival Network
32:37
Speaker 1: Now more than ever