There will be a wealth transfer from fiat-backed assets to precious metals…
Tom welcomes a new guest to Palisade, Precious Metals Analyst Jeff Clark.
Jeff cautions that investors should be skeptical of mining companies’ claims because they will always place their best foot forward.
Both Jeff and Mike believe there will be a wealth transfer from fiat-backed assets to precious metals. This will overshoot, and that will be the time to pull profits and purchase other discounted assets.
We could see triple-digit silver since it’s a small market and quite volatile. It doesn’t take a lot of cash inflows to impact the price. Silver today is valued at $68 billion in above-ground physical metal in coins and bars. Compared to the global markets, silver is just a drop in a swimming pool.
Jeff discusses the silver mining situation today and the increasingly severe lack of new growth in the industry. Investors should consider that it usually takes ten years to bring a new mine online.
He feels the risk of confiscation is lower today than in the past because gold and silver are no longer part of the monetary base, but it remains a possibility.
Time Stamp References:
0:40 – What led Jeff to metals.
4:25 – Real estate vs. gold/silver.
9:40 – Is triple digit silver coming?
12:00 – Understanding the size of the silver market.
17:00 – Mine supply for silver reamins in decline.
21:30 – Time to bring new mines online.
24:00 – Leverage via the miners.
27:30 – Volatility with silver.
31:00 – Risk of confiscation.
32:50 – Selling when the time comes.