Christopher Aaron: Crypto Money is Rotating into Gold and Miners
Tom welcomes a new guest to the show Christopher Aaron, Senior Editor for Gold Eagle. Chris discusses his intelligence background and why that experience led him to study central banking, the Federal Reserve System, and find work in the gold sector. After another short deployment to Afghanistan in 2009, all the pieces came together for him.
He argues that crypto is taking some of the speculative bid away from the metals. He expects this to change soon. When the next correction happens, you will see many junior mining companies outperform.
He discusses the chart for Wheaton Precious Metals and why it’s again signaling a potential bullish breakout in the markets. He looks for these somewhat contrarian signals as these are good leading indicators for the overall gold and silver market.
He follows the dollar and nominal rates very closely. He notes that the dollar has recently failed in its multi-decade rising channel. This is a long-term shift, but it’s time to be planning your overall exit strategy from the dollar. Diversify into alternatives that won’t be debased. Recently, the Euro has begun breaking out despite plenty of bad news in Europe.
Commodity indexes are showing a breakout across the commodity complex. We remain much closer to multi-decade lows than any top. We can still have significant corrections, but the long-term pattern appears much higher. This is a life-changing investment setup, and overall we’re at a low-risk entry point for commodities.
The gold miners are currently at their lowest valuations compared to the rest of the equity market. These are one or two-decade-long cycles. The ratio of miners to gold is also just beginning to move out. Today, they remain near all-time lows.
Lastly, “It’s very important today to think for yourself and examine things with an analytical mind.”
Time Stamp References:
0:00 – Introduction
0:36 – His Background
7:02 – Understanding the world.
10:14 – Anti-Fiat Assets
13:53 – Wheaton PMs
20:00 – Rates, Gold & The Dollar
26:15 – Euro Breakout
27:44 – Commodity Index Charts
32:07 – XAU to S&P 500
37:50 – XAU To Gold Ratio
44:10 – Concluding Thoughts
48:00 – Wrap Up
Talking Points From This Episode
- His background and gaining a global perspective.
- Rotation coming from crypto to precious metals.
- Comparing commodities and miners to broader equities.
Christopher Aaron is Senior Editor for the precious metals investment portal Gold Eagle.
A former counter-terrorism officer for the CIA and Department of Defense, Christopher has always had an independent analytical outlook. He volunteered to serve two tours to Iraq and Afghanistan from 2006 – 2009, conducting pattern analysis and mapping for the US Intelligence Community in Washington, DC. Drawing upon his investigative background, he turned attention to the financial markets in the early 2000s.
Mapping shares similarities with technical analysis of the financial markets because both involve the observation and interpretation of patterns found in human nature. Through his work, Christopher shares with clients how these patterns are cyclical and embedded. Recognizing these patterns can be used to profit.
Christopher Aaron holds a degree in history and business, with advanced Department of Defense training in intelligence analysis.