Tom welcomes Don Durrett, author, investor, and founder of GoldStockData.com back to the show.

Don believes that everything is aligning for gold this year. While many markets reached all-time highs last year, Don feels that this is misplaced. He suggests that everyone is focusing on near-term profits related to rate cuts, but the Federal Reserve’s main priority is financial stability, particularly aimed at preventing a crisis or collapse, rather than inflation.

Don points out that rate hikes have had a negative impact on various sectors and industries. He describes the U.S. economy as a facade built on debt, low rates, and deficit spending. In 2023, there was significant fiscal stimulus, which delayed a recession, but Don argues that the government is taking credit for falsely inflated GDP growth numbers. This is why gold is approaching the $2000 level, as adding an additional trillion dollars of debt become increasingly routine.

Don also expresses his belief that interest rates will not drop significantly. Consequently, many companies are relying on low rates to stay afloat. Don follows a strategy of investing in junior miners but keeps his individual allocations relatively low due to the risk/reward ratio. While some miners can yield massive returns, others may fail. He advises investors to accumulate stocks and buy when there are market dips. However, he cautions against becoming too attached and overexposed to any particular stock.

Don reveals that despite being undervalued and possessing valuable resources, many junior miners are still neglected by investors. Additionally, he expresses concerns about the bond markets and how the U.S. is heavily dependent on foreign capital, which could lead to problems spilling over to the equity markets. He puts forth $3000 as a conservative projection for gold and suggests that silver could potentially reach $100.

Discussing the sentiment towards miners, Don explains that interest in the sector declined in 2013 and has not recovered since. He believes that when the economy is strong, people tend to ignore gold. He emphasizes the need for a shift in sentiment regarding bonds and the dollar to drive the price of gold upward.

Don concludes by discussing various inflation scenarios and potential for energy crises, particularly related to shale. Finally, he addresses the inevitability of a debt reset and expresses concerns about the political divide in the United States, suggesting that the country is slowly fracturing.

Time Stamp References:
0:00 – Introduction
0:38 – Macro Outlook & 2024
4:07 – Feds Third Mandate
17:14 – GDP Growth & Spending
26:34 – Coming Crash/Recession
37:20 – Markets, Metals, & Exiting
42:34 – Gold is the Fear Trade
49:37 – Inflation Waves & Scenarios
54:43 – Silver Retail Investors
57:03 – Managing Risks & Holding
59:26 – Dedollarization Trends
1:05:14 – Debt Crises & Resets
1:07:05 – Default Inevitable
1:08:10 – IRS Crypto Felony Law
1:10:26 – CBDC Resistance & Politics
1:15:47 – Big Problems Coming
1:18:29 – A Country Fracturing
1:26:14 – Wrap Up

Talking Points From This Episode

• Don believes that everything is aligning for gold this year as uncertainty only increases.
• Investors should be cautious and not become too attached to any particular stock in the mining sector.
• He expresses concerns about the bond markets and the dependence on foreign capital, which could spill over to the equity markets.

Guest Links:
Twitter: https://twitter.com/DonDurrett
Website: https://www.goldstockdata.com/
Free Trial: https://www.goldstockdata.com/freetrial
Substack: https://dondurrett.substack.com/
Amazon: https://www.amazon.com.mx/How-Invest-Gold-Silver-Complete/dp/1427650241
Blog Posts: https://seekingalpha.com/author/don-durrett#regular_articles
YouTube: https://www.youtube.com/user/Newager23

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.