Don Durrett: This is an Epic Moment in US History
Tom welcomes back Don Durrett Author, Investor & Owner of GoldStockData.com to the show.
Don is taken aback by the strength of the dollar. He focuses on predicting markets out about six months. Currently, he is most concerned about a rebound in the economy because that would affect gold. He wants to see $2500+ for gold, but that may require serious weakness in the economy. Everything depends on the effectiveness of the Fed’s magic tricks.
We’re in a correction inside the longer term bull market. So, long as we remain in the channel, we could rally by the end of the year. 2023 should be a good year for gold as metals will strengthen once the dollar pulls back.
The dollar is going to remain strong until the Fed pauses. It’s just a matter of time until rates go down. He expects the Fed to pivot next year. September will be a critical month, and he expects another rate rise and a hike this month is all but certain. This will put further downward pressure on markets. Politically, they will be pressured to fight inflation.
Don discusses the countries joining the BRICS membership and how an alternate monetary system may evolve. Trump introduced tariffs against China, and Biden did not remove them. China is now moving towards Russia and India. A distinct split between west and east is developing.
For several reasons, Don believes the economy won’t collapse, instead we will muddle through. At some point next year, inflation should fall to around five percent and likely remain in that range for some time.
Gold miners have higher margins, those that are primarily into silver. The risks will build the longer we stay under $20 in silver. Most can probably last six months, although some are break even at $25. There are quite a few silver mines that are currently losing money.
Lastly, Don discusses three approaches for re-investing back into the miners. He gives some price targets from where a major breakout seems likely.
Time Stamp References:
0:00 – Introduction
0:46 – Dollar & Wall Street
4:44 – Gold Targets & Thoughts
9:08 – Fed Reversal?
15:57 – BRICS+ & China
19:39 – Russia & Ukraine
25:58 – Broken Politics
34:04 – Debt & Confidence
40:26 – Supply Inflation
45:35 – Miners & Margins
50:41 – Comex Transparency
55:00 – Investor Strategies
1:00:50 – Key Gold Driver
1:01:50 – Wrap
Talking Points From This Episode
- Dollar strength and the necessary catalysts for gold and miners.
- When the Fed will reverse and the need to control inflation.
- The miners and the risks of shutdowns should prices stay low for long.
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.