Steve Penny: Dollar Destruction Targeting $15,000 Gold and $750 Silver
Tom welcomes Steve Penny, a full-time trader specializing in silver, gold, and uranium. Steve discusses how wealth becomes transferred during periods of crisis. He says, “Commodities have never been so cheap relative to paper assets.” He argues that today is a generational wealth transfer opportunity.
His macro thesis is that the national debt is mathematically impossible to repay. History has shown that politicians will always try to inflate away the debt.
He has found that simplicity outperforms complex systems every time, and he outlines the tools he finds most useful. Steve finds ratio comparisons helpful in determining sector strengths.
Lately, many complicated theories surround the US dollar, but he makes a more straightforward bearish argument for the dollar.
Steve discusses how gold historically can move in multiples over just a few years and how past price action makes a compelling case for multiples of today’s prices. He finds SIL.J to be very undervalued.
He says, “The macro case for uranium is just off the charts.” Currently, the all-in cost to mine uranium is well below current prices. In the long-term, uranium will be an excellent play, and we are at the beginning of a long-term move up. Today, the two largest producers are curtailing production in a time when demand is increasing.
Time Stamp References:
0:45 – Steve’s introduction.
1:20 – Educational books.
2:10 – The coming wealth transfer.
3:45 – Parallels with the great depression.
4:35 – His Macro thesis.
5:55 – Designing your own strategy.
7:45 – Physical shortages in the future?
8:50 – Simplicy vs. complexity in trading.
10:15 – Predicting pullbacks.
11:40 – US Dollar Chart and thoughts.
13:40 – Charts lead the news.
14:10 – History to predict price for gold.
16:30 – Ratio based exit strategies.
18:00 – Opinion on SIL.J
19:05 – Uranium fundamentals and timing.
20:35 – Thoughts on price and supply.
22:45 – Platinum to gold ratio.
Talking Points From This Episode
- Wealth transfer opportunity.
- Why national debt is impossible to repay.
- Simple vs. complex trading strategies.
- Gold’s historic price moves applied to today’s market.
- The case for uranium.
Crash Proof: How to Profit From the Coming Economic Collapse by Peter Schiff.
Bankruptcy of our Nation by Jerry Robinson
Technical Analysis of the Financial Markets: A Comprehensive Guide to Trading Methods and Applications by John J. Murphy
Steve Penny is a full-time trader and investor specializing in the silver, gold, and uranium markets. Mr. Penny shares his unique insights and chart-based trading setups on the popular Twitter feed, @SilverChartist. Mr. Penny served as an Air Force pilot for 15yrs and now flies for the airlines. He looks forward to launching a free e-Letter, “The Silver Chartist Report,” in September.