Trent Norris: New Gold Cycle is Here
Tom welcomes a new guest Trent Norris from Sterling Capital, to the show. Trent discusses what led him to become interested in silver and realize that silver is a fantastic asymmetric opportunity.
He believes the mining sector is in an excellent buying opportunity at that we are near the start of the cycle, which usually lasts a decade.
Today’s markets appear similar to 2006, just before the housing market collapse. It’s just a matter of waiting patiently to take advantage of the situation as there will be additional buying opportunities. You want some cash to take advantage of these pullbacks, and patience will pay off.
Trent named the company Sterling Capital because of its focus on the silver sector. He likes the upside potential and dual-use nature of silver. Next, Trent explains his approach to picking stocks and why it’s essential to have a plan of action. Finally, he provides a couple of examples of companies in his portfolio and why Mexico is an acceptable jurisdiction as a silver investor.
He provides an analogy for finding the best equities at the best time and when to look for the exit. You want to be early, right, sit tight, and plan out when to make your exit.
Trent’s exit strategy is based on past market performance, and he expects to sell late in this decade. However, he’s careful to stay in a trade unless it goes parabolic, in which case he may sell some of his position.
His price targets for the metals are based on the Dow/Gold ratio and use the average gain over those past cycles. Trent expects a 15x move on gold and a 24x move on silver based on the bottom of the ratio. At that time, silver was around $14 and gold $1200. Right now, these prices seem extreme, but that is what we have seen historically.
Trent believes the silver price is manipulated, and it’s hard to understand why silver is so low. He believes silver is an excellent opportunity. Wait for the value opportunities, and then the key is patience. The sector is not an “if” question; it’s a “when” question.
Time Stamp References:
0:00 – Introduction
1:00 – Background & Silver
5:16 – Buying Opportunity
6:27 – Patience Will Pay
9:24 – Sterlings Silver Focus
13:00 – Equity Picks & Watchlist
14:33 – Weighting Jurisdictions
15:32 – Determining Entry Points
17:10 – Night Club Analogy
19:58 – The Exit Strategy
21:26 – Dow/Gold Ratio – Targets
24:17 – GDX and GDX.J
25:06 – Silver Today & 1980
27:17 – Risk Management
30:24 – Inflation Reaction
31:23 – Wrap Up
Talking Point From This Episode
- Why silver is the asymmetric bet.
- Picking equities and timing exits.
- Targets for the metals and managing risk.
Trent Norris is the fund manager for Sterling Capital, LLC. The fund focuses primarily on silver and gold equities. Trent is also a business entrepreneur, having sold his previous company in 2019. Trent holds a b.s. Degree from San Jose State University in Business Administration.