Peter Grandich: The Most Bullish Precious Metals Setup in my 38-Year Career
Tom welcomes returning guest Peter Grandich to the show. Peter is hearing directly from his clients that it’s difficult to get goods and prices are rising quickly. The Fed’s ability to deal with inflation seems limited. The lockdown created secondary effects on supply chains, and now things are becoming compounded with China and Russia. The Fed’s tools are largely useless at correcting this situation.
Peter is out of the markets since last fall as he felt markets were in the largest bubble ever. It’s hard for average investors to understand a real bear market. Real panic is coming, and selling could become an avalanche, and much of the money in the markets is passively managed.
Seniors could be amongst the hardest hit in this inflationary environment.
Gold will always act as a safe haven except when investors are trying to meet margin calls. Liquidity problems can result in short-lived sell-offs.
He believes both uranium and copper will do well in the coming years. He also breaks down some of the risks and rewards of junior mining and why management is key. Investors need to keep a close eye on jurisdiction of projects.
He is convinced that nuclear will become increasingly important in a world that demands energy. Uranium certainly will go up, but this may take some time.
Energy prices including gasoline will continue to be high. He notes that oil and gas equities are currently overpriced.
Miners are beaten down, and most people have limited short-term horizons. Mining is the sector where it would be difficult to lose money from here.
Peter notes that politics has become increasingly polarized, and Biden appears to have health issues. The political ramifications of who could replace the president may become an issue.
Talking Points From This Episode
- Causes of inflation and why the Fed can’t fix it.
- Utility of gold as a safe-haven asset.
- Outlook for uranium and copper.
- Miners are looking particularly good right now.
Time Stamp References:
0:00 – Introduction
0:38 – Fed’s Soft Landing?
3:25 – Equity Markets
6:44 – Targets & Losses
9:54 – Pensioners & Wages
12:05 – Cryptocurrencies
15:05 – PMs and Safe Assets
19:01 – Producers & Mining
22:45 – Miner Discipline
25:03 – Management Forte
26:15 – Uranium Outlook
31:57 – Oil & Gas
34:13 – Mining & Sentiment
35:50 – Concluding Thoughts
38:43 – Wrap Up
Peter Grandich entered Wall Street in the mid-1980s with neither formal education nor training. Within three years, he was appointed Head of Investment Strategy for a leading New York Stock Exchange member firm. He would hold positions as Chief Market Strategist, Portfolio Manager for four hedge funds, and a mutual fund that bore his name. His abilities have resulted in hundreds of media interviews, including Good Morning America, Fox News, CNBC, Wall Street Journal, Barron’s, Financial Post, Globe and Mail, US News & World Report, New York Times, Business Week, MarketWatch, Business News Network and dozens more. In addition, he has spoken at investment conferences worldwide, edited numerous investment newsletters, and was one of the more sought-after financial commentators.
Grandich has been a member of the National Association of Christian Financial Consultants, The New York Society of Security Analysts, The Society of Quantitative Analysts, and The Markets Technician Association. He is an active supporter of Athletes in Action, the Fellowship of Christian Athletes, Good News International Ministries, and Catholic Athletes For Christ. Through Athletes in Action, Grandich assisted with Bible study and chapel services for the New York Giants and New York Yankees from 2002 to 2016.
His autobiography, Confessions of a Wall Street Whiz Kid, was first published in 2011 and is now on its fourth printing.
Peter Grandich resides in New Jersey with his wife, Mary, and has one daughter, Tara. In 2015, he turned a three-decade dream into a reality by opening a storefront office in the “Norman Rockwell style” Jersey Shore town of Spring Lake. He then extended that vision by opening a satellite office in Millstone Township in 2019.