David Brady: The Economy is in Shambles, But Metals Are Still Heading Higher
Tom welcomes back David Brady to discuss future market movements based on Fed decisions and current geopolitics. David suggests that investors should invest in physical silver and gold as a hedge against inflation, stock market crashes, and cyber attacks. He believes that the pullback from recent highs will be shallow but may require a big event to drive it. David mentions that some people are suggesting $100 silver is a slam dunk and that high beta miners are going to go through the stratosphere. David emphasizes that investing in these assets can be expensive, so people should pick an amount they feel comfortable with and buy as much as possible.
This episode also highlights the current equity market trends and how gold and silver are performing. David explains that the recent increase in the price of gold and silver is not due to a specific event but rather a collective reaction to the loss of confidence in the economy. He suggests that the price of gold and silver may continue to rise, as more people seek safety in these assets during times of uncertainty.
The interview also touches on the potential impact of the 2020 US presidential election on the value of gold and silver. David believes that the current economic and political environment may lead to a stock market crash and a subsequent decline in the value of assets like gold and silver, which would benefit their investors. However, he also mentions other potential risks facing the economy, such as the banking system, wars, and the loss of confidence in government institutions.
David believes that investors have good reason to be bullish on the current precious metal market conditions and expects continued growth in the coming years. However, he also acknowledges the potential risks facing the economy and the political landscape, which could lead to a significant decline in the broader equity markets.
Time Stamp References:
0:00 – Introduction
0:53 – Gold Train All Aboard?
5:06 – Rate Cuts & Dollar
10:19 – Demand & Confidence
12:40 – COT Data & Metrics
19:22 – Stock Market Thoughts
24:12 – Silver Vs. Gold?
29:12 – Portfolio Positioning
34:48 – Valuations & Silver
39:42 – Confiscation & The East
43:00 – Housing & Employment
45:10 – Gloom, Doom, & Popcorn
50:28 – Wrap Up
Talking Points From This Episode
- The recent increase in gold and silver prices is likely driven by a collective reaction to economic uncertainty, not a specific event.
- Investing in physical silver and gold can provide a hedge against inflation, stock market crashes, and other black swan events.
- A pullback from recent highs may be shallow but requires a big event to drive it.
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David Brady has managed money for banks and businesses for 25 years. Mr. Brady is a CFA charter holder and holds a bachelor’s degree in Business Studies and Financial Markets from Dublin City University. He started as a foreign currency trader in USD/DEM and managed multi-billion dollar bond and foreign exchange portfolios for multinationals such as eBay and Salesforce.
He has always been interested in financial markets, winning investment competitions at the age of 15. Scoring the highest grade for his graduate thesis, “Is the ERM (Exchange Rate Mechanism) Fatally Flawed,” in 1993, and won foreign currency spot, forward, and bond trading competitions at 23. Suffice to say that financial markets have been his passion for much of his life.
David is a native of Dublin, Ireland. He moved to the United States in 1998 and now lives in Ontario, Canada, since 2015, with his wife and four kids.