Gary Tanashian: Gold Miner Fundamentals Becoming Undeniable to Investors
Tom welcomes Gary Tanashian, founder and author of ‘Notes from the Rabbit Hole’, about the ingredients necessary to create a big bull market in mining stocks. Gary believes that high gold prices, lower input costs, and increasing momentum are key ingredients. He believes that the Fed will not be able to effectively inflate the system as they have in the past and that the first correction could be harsh if the everything bubble pops in 2023. He believes that gold will become more bullish as inflation peaks and that the momentum will come from non-gold bugs taking notice of the improving fundamentals and starting to invest in the sector.
Gary believes that the gold-silver ratio is a more fine-tuned indicator than the gold-copper ratio and that rising gold-silver ratio can indicate that liquidity is under threat in the broader markets. He also discussed the potential for a new inflationary source and de-dollarization, suggesting that investors look for sound gold mining operations in safer jurisdictions, and ETFs such as GDX and GDXJ. He believes that the sector as a whole will benefit regardless of what individual companies are doing and that precious metals should be separated from industrial metals.
Overall, Gary believes that the ingredients necessary to create a big bull market in mining stocks are in place and that investors should look for the market signals, tune out the noise, and focus on gold as the anchor of the complex. He believes that the Fed has had enough after decades of inflating the markets and that they may be smart enough to recognize that. Gold is seen as a safe haven asset and Gary believes that central banks will become more involved in gold markets, which could lead to higher gold prices.
He discusses the 2008 crisis and how he tried to buy the crisis at the time..
Talking Points From This Episode
- Investing in gold is a good way to protect against inflation and de-dollarization.
- The gold-silver ratio is a better indicator than the gold-copper ratio to determine if liquidity is at risk.
- Look for sound gold mining operations in safer jurisdictions, and consider ETFs such as GDX and GDXJ if individual miners are not an option.
Time Stamp References:
0:00 – Introduction
0:32 – Gary’s Background
2:00 – Fundamentals & Sentiment
5:46 – Miners & Todays Markets
10:18 – Gold & Three Factors
14:17 – Fed Indicators & Yields
20:30 – Deflationary Thesis
24:00 – Feds Playbook?
27:35 – Dedollarization
34:12 – Fiat Ponzis
36:42 – Gold Silver Ratio
40:28 – Gold & Oil Indicators
45:12 – Gold Interest Miners
46:30 – Management & Financials
48:13 – Mining ETFS & Royalties
51:30 – Other Metals
53:48 – Signals & Process
56:20 – Wrap Up
Gary Tanashian is the founder and author of the financial market report, ‘Notes From the Rabbit Hole’ (NFTRH), a service that provides technical analysis, sentiment/psychology, and various unique macro market ratio indicators to successfully navigate all market environments.
For over 21 years, Gary has operated a progressive medical device/equipment/component manufacturing company, giving him an understanding of and appreciation for global macro-economics as it relates to individual markets and sectors.
His website/newsletter service, biiwii.com, was created in 2004 to help communicate a message about deeply rooted problems with irreconcilable levels of debt and leverage within the inflated financial system, with his concerns confirmed and message justified with the 2007/2008 financial crisis.
NFTRH Premium was launched right into the teeth of one of these liquidations on September 28, 2008. Anyone can manage a calm market. Not everyone can manage a crash or be ready to deploy capital at a time of max fear. NFTRH has successfully done just that through two major liquidations, a few cyclical bear phases and a whole lot of inflationary bull since 2008.
Gary is a gold bug, favoring a more straightforward monetary system (i.e. one not run entirely on inflation by a central planning agency) that would level the playing field for a much wider segment of the population. He has evolved his analysis to be sure it is dealing with the reality of any given moment to bring success in all market environments.