Don Durrett: Silver Miners Are the Buy of the Century
Tom welcomes back Don Durrett Author, Investor & Owner of GoldStockData.com to the show.
He expected a breakout for gold at the end of 2020 but the stock markets took off and it was clear we were in for a decline. He expects a correction in the markets in the next few months which should be the trigger to send gold higher. Historically it’s rare for markets to move up for an entire year without a correction.
The only thing that matters today is the Fed’s ability to create liquidity. There is a lot of uncertainty and tension in the system and few reasons to be bullish.
There is also uncertainty around Covid which will linger into 2022. Most investors aren’t paying close attention to the weak economic numbers. Most investors are in a wait and see what happens mode.
Don discusses Jeremy Grantham’s excellent track record in predicting markets and why investors should pay close attention to his calls.
The Fed keeps stating that inflation is transitory but most prices are soaring. Inflation is a negative factor for the economy. Therefore, it seems like time to be defensive. We could be in for a severe recession where it’s difficult to find most jobs.
Corporate tax rates are going higher but they haven’t raised it on those earning below one million. Biden is going after business which has not happened since the 1930s. These policies will hurt the economy over the next couple of years.
Don discusses his “buy of the century” which is the silver miners. With silver miners, the potential rewards could be even greater than gold particularly once it moves past $35 as there will be little resistance remaining.
Lastly, Don discusses his approach for finding opportunities in the miners.
Time Stamp References:
0:00 – Intro
0:37 – Gold in 2021
7:13 – Crash Factors
12:32 – Reality Disconnect
18:49 – Corporate Taxes
25:13 – Buy of the Century
38:41 – Finding Junior Plays
46:50 – Geography & Risk
50:07 – Opportunity Lists
1:00:55 – Wrap Up
Talking Points From This Episode
- Market correction will drive next leg up for gold.
- Market risks and continued money printing.
- Finding the best juniors and the potential for silver.
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.