Lior Gantz: Failed Short Squeeze, For Now
Tom welcomes Lior Gantz back to the show. Lior is the founder and editor of Wealth Research Group.
Lior explains the 1980 Hunt Brothers short squeeze and how they managed to corner the silver market by buying up a third of the global supply. The government’s solution was to prevent long contracts and forced the Hunt Brothers to sell.
Recently, there has been a lot of physical purchasing, which has increased the physical price, but the paper markets have been mostly unaffected. The silver market today is priced incorrectly, and in the next two or three years, it’s likely to become one of the best-performing commodities.
Gold and silver are beginning to get attention from younger generations, and this will be key. A lot of money has been entering the bond markets, and Lior expects that some of it will move into equities. The dollar will continue to decline, and that US savers will increasingly lose purchasing power. This, coupled with infrastructure deficit spending, and more stimulus, will be bullish for precious metals.
Mining development and exploration have been slow due to a lack of capital, and when prices rise, it will still take several years for production to increase.
He argues that the probability of hyperinflation is quite low. The US dollar will continue to operate until other global forces delegitimize its status. The dollar is still used in about sixty percent of all global transactions, so it will continue to be dominant.
We may see significant investment interest and big moves in silver equities when a clear breakout occurs in the Silver/Gold ratio. He provides some key price targets for silver and believes we will take out the all-time high for gold this year.
Almost all commodities are in annual production deficits due to under investment during the past decade in commodities. There is an arms race for these commodities in the world, and this is what will lead them higher.
Time Stamp References:
0:00 – Intro
0:50 – Silver Squeezes
7:29 – Short Motivations
9:45 – More Silver Buyers
14:40 – Global Trends for Silver
21:00 – Gold To Silver Ratio
24:26 – Price Targets
30:53 – Oil Price & Silver
33:30 – Elon Musk & Globalism
35:25 – Wrap Up
Talking Points From This Episode
- Historical silver squeezes.
- Physical silver and millennial interest.
- Dollar dominance and purchasing power.
- Mine development and lack of capital.
Lior has been called a thrill-seeking entrepreneur by his team. He built and runs numerous successful businesses and has traveled to over 30 countries in the past decade to pursue thrills and opportunities, gaining valuable knowledge and experience.
With Wealth Research Group, Lior allows readers access into the world of the few who beat the markets consistently for decades, thus leveling the playing field of the investment industry. With immense passion and full-force devotion to the readers, Lior’s purpose is to publish content that will have life-long value and allow readers to approach investing with methodic precision and a well-thought-out game plan.
Lior has been actively investing in the markets since the age of 16 and is now bringing the same proven strategies he has implemented himself. He is an advocate of meticulous risk management, balanced asset allocation, and proper position sizing.
His research is relentless and delivers a unique perspective to investors. As a deep-value investor, Lior loves researching businesses that are off the radar and utterly unknown to most financial publications.