Francis Hunt: The World is Turning to Gold as Debt Resets
Tom welcomes Francis Hunt, Founder of “The Market Sniper” back to the show.
Francis, discuss how demand for physical metal appears to be increasing significantly in the United Kingdom. A lot of interest is coming from those in the financial industry. Some of those customers have expressed concerns about their employer’s stability. Self-directed pensions in the U.K. are also seeing a move away from equities and into custodial backed physical metals.
George Soros recently wrote an open letter to the latest U.K. Prime Minister suggesting the idea of perpetual bonds. These are open-ended bonds that never get repaid. This is like having a mortgage that never ends, where all you do is service the debt forever. Soros’s solution is just more debt on top of debt with more flexible terms.
He explains the concept of hyperstagflation and how it applies during economic extremes. We’re in the reverse Goldilocks economy. Francis believes growth is going to capped while inflation persists. This is the worst combination for the retail market, but is great for billionaires who can borrow large sums from banks. This is an inherent bias in the financial system.
He believes we need a truer price index for physical metals where the true cost to the average purchaser is reflected.
Maintaining rates at current levels will lead to a harsh reality and probably a vicious depression. What do you do when everyone is out of work and getting stimulus checks? At that point, we’re basically in communism with a Draconian techno control system.
Silver is starting to show its strength relative to gold. Platinum is at historic levels relative to palladium, and Russia is a major producer.
Lastly, Francis explains how cryptos are high-beta trades and why stablecoins might become important for transactions.
Time Stamp References:
0:00 – Introduction
0:50 – U.K. Physical Demand
10:05 – Perpetual Bonds & Inflation
16:20 – Deflation & Contraction
22:08 – Physical Premiums & Spreads
29:16 – Energy, Oil, & Miners
32:00 – Interest Rates & Lag
37:10 – Gold Ratio Charts
46:00 – Gold Downside?
50:00 – Gold Futures Charts
59:53 – Cryptos & Alt. Fiat
1:07:30 – Central Bank Actions
1:11:40 – Wrap Up
Talking Points From This Episode
- Physical demand in the U.K. showing strength from financial professionals.
- New and improved debt in the form of perpetual bonds.
- Outlook for growth and why inflation is likely to persist.
- Silver is showing strength and platinum looks excellent compared with palladium.
Francis is a trader, first and foremost. Unlike most educators in the trading space, Francis walks the walk and talks the talk, with 30 years of experience trading his personal capital on various markets and instruments. Through this passion for trading and his relentless study of markets and economic theory, he uses the Hunt Volatility Funnel trading methodology, a systemized approach, to answer the critical question: What is the next most profitable trade?
He believes the actual price of an asset is the most accurate reflection of all the factors that influence it. Practical technical analysis, the study of price action over time, is needed to formulate profitable trade ideas. Indeed, with all the market manipulation and high-frequency trading operations currently in play, technical analysis is all that can be relied upon when it comes to formulating future price trends. A trained eye can often spot such manipulative practices, as is the case with HVF traders. Therefore, the HVF methodology is based purely on technical analysis.
Francis is passionate about sharing his knowledge and understanding of markets by utilizing his HVF trading methodology. With entertaining anecdotes and the careful guidance of his students, he has already trained a large community of hundreds of traders and helped them transform from complete newbies to seasoned trading professionals.
He genuinely loves sharing his knowledge and strategies with others who are committed to finding freedom through trading. Plus, teaching strengthens his trading abilities while helping to build a vibrant community of successful traders.