Don Durrett: Big Money About to Rush into Gold
Tom welcomes a new guest to the show Don Durrett. Don believes that gold is currently trapped on the chart and will fall before it recovers. Investors currently don’t have a good reason to exit the stock market and buy gold. If a correction occurs in stocks, it seems unlikely that gold will avoid taking a liquidity hit, but it will recover.
The US has been moving towards MMT policy since 2008, and we are slowly turning Japanese by copying their yield curve control. Last week the 10-Year moved sharply up and caused a small sell-off. Never before has the Fed tried to control interest rates at the five or ten-year level. The Fed’s balance sheet is ballooning, and the approach now is that “debt doesn’t matter.” The Fed is the defacto manipulator and controller of the economy and is going to try and print its way out. We are in a transition to a brave new era.
Don discusses how the Fed can lower interest rates, but they can’t control the real rates when you factor inflation. Gold can’t stay below $2000 for much longer because of major economic factors.
Don explains how Bitcoin could work as a reserve instrument for a country’s currency. He questions the belief that 2% inflation is necessary because that means a currency will devalue 50% in only 36 years.
Don says, “There isn’t enough silver to go around between manufacturers and investors once the economic system begins imploding.” Once above $30, you will see the retail crowd show up. The shortage in silver isn’t that severe yet, but once investor demand reaches 35% of annual production, you will have a shortage.
He says, “Silver won’t go over thirty until gold joins the party.”
Lastly, Don discusses the benefits of careful stock-picking compared with Royalty plays and what to look for in junior mining companies.
Time Stamp References:
0:00 – Intro
0:37 – Gold Heading Lower?
2:55 – Causative Factors
7:54 – Yield Curve Control
10:15 – Constitutional Upgrade
13:31 – Currency Backing
15:26 – Stackers Vs. Banksters
19:13 – Squeeze and Gold
23:11 – ETF Considerations
25:41 – Investing in Mining Video
29:54 – Royalty vs. Juniors
35:55 – Last Chance to Load-Up
38:19 – Jurisdictional Risks
43:35 – Politics, Economics, & Taxes
46:53 – Wrap Up
Talking Points From This Episode
- Gold is trapped; expect a correction.
- MMT, Debt, and Yield Curve Control.
- Real rates and the price of gold.
- The real silver squeeze and gold.
Blog Posts: https://seekingalpha.com/author/don-durrett#regular_articles
Don Durrett received an MBA from California State University Bakersfield in 1990. He has worked in IT-related positions for 20+ years. He has been a gold investor since 1991, with a focus on Junior Mining stocks since 2004.
Realizing the value of investing in gold and silver and noticing the lack of available material for first-time investors, Don set out to provide information. First, he wrote a book, How to Invest in Gold & Silver: A Complete Guide with a Focus on Mining Stocks. He followed up the book with a website (www.goldstockdata.com) to provide data, tools, and analysis for gold and silver stock investors. His gold and silver mining stock newsletter is widely regarded as one of the best.
He is a frequent guest on financial podcasts and a contributor to SeekingAlpha.com.