James Anderson: Bullion will be Impossible to Find in a Crisis
Tom welcomes back James Anderson from SD Bullion to the show. James discusses gold demand since 2020 and how interest in metals is steadily increasing. In the years to come, this interest will continue as uncertainty in the markets grows.
The structure of the financial system today is vastly different than in the past. Now there are layers of obscurity hiding the unstable system. Eventually, these problems will be too big to hide.
People underestimate the psychological effects of inflation and how it will affect the middle class. The inflation numbers reported by the government are easy to debunk. Ultimately higher prices will be reflected in the precious metals.
James discusses traveling through Turkey recently and seeing Istanbul’s impressive ancient architecture. There is considerable bullion demand in Turkey particularly due to ongoing issues with their currency. The people there are suffering and barely able to stay above water.
If you buy bullion you want to have a long-term perspective. When you understand the fiat system you will realize the benefits of having a position in metals.
Premiums are still somewhat elevated and James believes we may not see a return to pre-pandemic levels.
It’s unlikely the United States would go after an individual’s gold directly. However, they may create some additional fees or taxes on the metals in the future. Having some of your bullion offshore may be a good idea so long as you are cautious of where you keep it.
The equity markets may now be considered national security interests. Therefore they will likely do everything they can to maintain the system. With everyone invested the consequences of a large pullback could be very serious.
Lastly, he discusses the uses for platinum, its price, and the overall supply-demand fundamentals.
Time Stamp References:
0:00 – Introduction
0:39 – Gold Demand
2:13 – Germany Demand
3:36 – Monetary Velocity
5:10 – Inflation & Trust
6:51 – Palantir’s Gold Holdings
8:16 – A Bigger Perspective
12:17 – Preserving Wealth
14:46 – Premiums
17:06 – Offshore Storage
20:32 – Physical Vs. Spot (Exeter’s Pyramid chart)
22:13 – Gold Vs. Currencies
26:20 – Equity Crash Risks
29:43 – Platinum
31:45 – Wrap Up
Talking Points From This Episode
- Steady growth in investor interest in precious metals.
- Structural problems in the global economy and inflation consequences.
- Holding gold overseas and confiscation risks.
James Book: https://sdbullion.com/21st-century-gold-rush-book
Bloomberg Article/Chart: https://tinyurl.com/4ks9ufhv
A bullion buyer years before the 2008 Global Financial Crisis, James Anderson is a grounded precious metals researcher, content creator, and physical investment grade bullion professional. He has authored several Gold & Silver Guides and been featured on the History Channel, Zero Hedge, Gold-Eagle, Silver Seek, Value Walk, and many more.
Given that repressed commodity values are now near 100-year low-level valuations versus large US stocks, investors and savers should buy and maintain a prudent physical bullion position. Continued stimulus and unfunded promises will only debase the dollar further.