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Robert Sinn: China has Changed the Global Gold Game

Tom welcomes a new guest to the show, Robert Sinn to share his background in precious metals, junior mining, and biotech investing. Robert discusses his introduction to gold during the 1990s debt crisis through his father’s experiences at coin shows and investments. The conversation later focuses on the Federal Reserve’s recent announcement of tapering quantitative tightening and its potential impact on market positioning, emphasizing fiscal dominance and potential softer data suggesting a possible negative non-farm payroll print.

Sinn further explores the Fed’s shift in inflation targeting, proposing that it might adopt a new, unannounced inflation target above 2%, around 3%. He explains that markets have accepted the Fed’s decision not to cut rates as frequently as anticipated, but anticipate at least one more rate cut this year. Parallels are drawn between the late 1970s and the current situation regarding government spending policies and inflation trends.

The discussion then shifts towards energy investments, with Sinn emphasizing uranium and natural gas as crucial areas due to their baseload power generation capabilities and affordability. He acknowledges the transition towards cleaner energy but argues that it will take considerable time for this shift to fully materialize. Sinn holds stocks in both oil companies and renewable energy sectors, adopting a long-term perspective.

Theys explore differences in debt structures between China and the U.S., their implications on markets, and strategies for investing in gold. The conversation shifts to Japan’s debt ownership versus the world owning U.S. debt. This leads to a discussion about China’s debt structure, which sees the government act as the backstop for all debt within their economy.

Robert then delves into the Fed’s influence on markets and its ability to impact financial conditions without changing interest rates. This interview concludes with an emphasis on gold investing, stressing the significance of global data, especially from China, when analyzing gold market trends. Various strategies are suggested for investors looking to stay in the gold market during volatile periods. Robert discusses the importance of maintaining a long-term perspective and focusing on the structural bull market trends.

Time Stamp References:
0:00 – Introduction
0:53 – Background & Metals
3:25 – Juniors & Biotech
5:29 – Fed Reactions
10:02 – Fed Inflation Targets
11:36 – Market Reactions
13:25 – 1970s Parallels
16:55 – Energy Investments
20:00 – Seasonality in Biotech
21:22 – War Headlines & Gold
23:12 – Gold A New Era?
26:49 – A Tectonic Shift
28:34 – China Vs. U.S. Debt
30:43 – Fed Rate Clown Show
34:18 – Trader Positioning
37:39 – Bull & Staying Invested
40:43 – Portfolio Structuring
46:00 – Rules For Juniors
49:50 – New Discoveries
53:30 – Lessons & Danger Signs
59:40 – Go Long Yoga Pants
1:00:41 – Wrap Up

Talking Points From This Episode

  • Roberts background in precious metals and his introduction to gold during the 1990s debt crisis.
  • The Fed’s potential shift in inflation targeting: new unannounced target above 2%, around 3%.
  • Energy investments: uranium, natural gas, baseload power, affordability, and long-term perspective.
  • Strategies for holding on during volatile bull markets.

Guest Links:

Robert Sinn is a 20+ year market veteran whose research and insights are followed by hedge fund managers, investment professionals and thousands of readers/viewers across the globe. His introduction to the stock market came in 2003 when his Father shared a research note on a company called Northern Dynasty Minerals (NDM). Shares proceeded to rise more than 1000% over the next nine months. Robert was hooked, and the Junior mining sector became an obsession.

Across his extensive career Robert has acted as a market participant, commentator and trader performing dozens of site visits, CEO interviews and generating a wealth of research spanning multiple market cycles.

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