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Peter Krauth: Crush Inflation and Profit as the Dollar Dies

Tom welcomes silver aficionado Peter Krauth to the program. Peter is a Silver Investor, Analyst, and author of the book ‘The Great Silver Bull’.

Peter feels the Fed is largely trapped between inflation and being unable to raise rates by much. Inflation will continue to run and people will have to get used to it. We’re looking at prices doubling in just a few years. If they don’t want their retirement stolen they better look at inflation hedges.

He feels silver is very undervalued compared to almost any other metal. Silver remains the only metal that is still below its 1980 high and on an inflation-adjusted basis.

Silver is volatile but that’s not a good reason to not have exposure. Silver is utilized 55% by industry and three quarters come from the production of other metals as a by-product. If the price of silver rises it may not have much effect on the producer’s margins.

In 2020 when the pandemic started and there was a lot of interest in silver the ETFs brought in 330 million ounces. This was four times the previous year’s levels. ETF units tend to stick around and the number of ounces tends to remain in these funds.

Silver tends to outperform gold during a bull market and this may be caused by the perception of high gold prices. They feel like they get more with silver instead and it becomes a natural alternative.

He discusses the best macro factors for gold and why real rates are very telling of where precious metals will head. He also provides us with a chart that compares home prices with silver and why that could be an opportunity.

He discusses some warning signs that silver may be peaking at price. Also, a gold-silver ratio of 30 along with the Dow to silver ratio could be an important signal. If you look at these indicators together it should paint a pretty clear signal.

Peter believes that CBDC will exacerbate inflation problems because it will make printing and distributing money easier.

Physical gold and silver have no counterparty risk and no risk from a lack of internet or electricity. They are private and have all the ideal characteristics of what money should be.

Lastly, he provides some general advice on how investors may want to weigh their portfolio in silver and miners.

Time Stamp References:
0:00 – Introduction
0:34 – Inflationary Outlook
1:48 – Silver Opportunity
4:16 – Silver Pricing
6:26 – Quirky Supply
9:28 – Sticky Money
11:57 – Silver in a Bull Market
13:42 – Gold-Silver Ratio
15:40 – Macro Factors
17:34 – Housing Prices & Silver
19:12 – Silver Peak Indicators
22:05 – Future Demand & CBDC
26:53 – Canada & Cap. Controls
28:06 – Be Your Own Bank
30:27 – Pensions & Metal Holdings
32:36 – Silver Portfolio MAP
34:38 – Wrap Up

Talking Points From This Episode

  • Overview of the silver markets and their role with inflation.
  • Ratio charts and why silver remains undervalued.
  • Importance of having silver exposure and weighting your portfolio.

Guest Links:

Peter Krauth is the author of The Great Silver Bull and editor of the silver-focused investment newsletter Silver Stock Investor. Krauth has written about investing in silver for more than 20 years, using his extensive industry network to uncover outstanding opportunities. As a precious metals expert, he is a frequent contributor to financial websites such as Kitco and Forbes. He is a regular presenter and moderator at investment conferences, such as the Metals Investor Forum.

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