Dirt Cheap: Gold & Silver Miners Are Amazing Values Right Now | Jeff Clark On Precious Metals

so many investments are trading at all time record high prices that it's extremely hard to find reasonably valued quality assets right now but there's one major exception gold and silver mining companies have never been so profitable and yet so undervalued in fact senior precious metals analyst jeff clark says they're not just cheap they're dirt cheap at today's prices where where are you going to go out and find value right now is it in the broad stock market well by any measure the broad stock market is overvalued is it real estate is it bitcoin is it whatever a lot of these things have had huge run-ups and uh the only value that's really left out there is gold and silver and especially the mining equities like you said they're they're undervalued no matter how you compare them to the broad stock markets to gold and silver themselves to to their own indices welcome to wealthon i'm adam taggart founder of wealththeon welcoming you back for another week of making sense of money and the markets so that you can make better informed decisions about building your wealth the precious metals had an excellent two-year run in 2019 and 2020 but they've spent much of 2021 so far in a downward drift which is puzzling giving how many tens of trillions of dollars have been injected into the global system by the world central banks since the pandemic hit last year the prices of nearly every other commodity have risen dramatically in response but why not the precious metals and even more interesting is that the precious metals mining industry remains one of the extremely few sectors not trading at all time bubble level highs despite being more profitable than ever in fact on a relative basis it's almost never been more undervalued to help us make sense of this i'm very grateful jeff clark is returning to the program jeff is the senior precious metals analyst at goldsilver.com he's an expert on precious metals mining stocks and he's also just returned from the stockpulse silver symposium which took place last week and i'm looking forward to what insights he found there and he very graciously recorded a free short recap of two mining stocks currently at the top of his deep value list so be sure to stick around at the end of the video to get the direction on how to get that jeff thanks so much for talking with us today i'm glad to be here adam and share what knowledge i have about the markets with your viewers good well i think a lot of our viewers have the same questions that i do so let's let's jump right in and let's start at a high level here which is um we're looking you know at the i mentioned the intro that the precious metal prices right now have sort of been stuck in the doldrums gold's been going back and forth between about 17 50 and ounce uh thousand seven hundred and fifty dollars an ounce up to nineteen hundred and fifty dollars an ounce uh silver has been sort of trading between twenty two dollars an ounce and twenty eight dollars an ounce this year and both gold and silver are trading at the very low ends of those ranges right now um so jeff why do you think in a year where almost every other commodity uh has seen tremendous price appreciation that we're really seeing this downward drift in the precious metals it's obviously a fair question because you're right commodities have been up tremendously over the past year year and a half whatever it's been and gold and silver in 2021 have been nothing but weak flat to down so it's a fair question i think there's a couple answers that uh one is um when you look at the commodity complex i don't include gold and silver in that now silver does have some a large industrial component a growing industrial component but for the most part i i do believe that the mainstream views gold and silver as monetary medals not commodities and so do i need to buy monetary metals right now i think that's what a lot of institutional investors are asking themselves and i think the answer to that is no they don't they don't think they need to buy them right now uh partly because the stock market is still going up uh so they're gonna they're gonna dance to that music as long as it keeps playing um also they believe the transitory issue right they still believe inflation is transitory so why do i need to buy monetary metals why do i need to buy gold and silver if inflation is only going to last for two or three months and so as long as those factors are still in play i don't see the institutional world which is where the the big capital would come in and push gold and silver demand and thus price is a lot higher i don't see them coming over until those things shift i think it's inevitable that they do and i do think tran inflation will not be transitory but until they feel compelled to come over until um you know they feel the need to buy a monetary medal for you know monetary or financial reasons they may not come back over into the gold and silver market so i think that's one explanation of what may be going on the second thing i want to point out real quick is i was at the silver symposium in my presentation i showed how what is happening now has actually happened before with gold and silver it happened in 2006 prices were completely flat went nowhere in the middle of what what ended up being a clear bull market and if someone had gotten discouraged and sold then they would have missed out on some very big gains but the real big comparison is from 1974 to 1976 if you look at the gold and silver prices then they fell by over 40 percent almost half over a two-year period of time and yet what was going on at that time adam we had high inflation inflation that's higher than even now high unemployment we were in a recession we had political concerns geopolitical concerns and probably one of the biggest catalysts at the time that golden most looked at was the fact that for the first time in over 40 years you could buy gold again as a us citizen so a lot of gold analysts assumed that well that demand is going to that pent-up demand now that it's legal is going to push gold up and silver will probably follow it right and yet what happened they did just the opposite not only were they not flat they actually fell and fell dramatically and over a two year period of time again they were surrounded by catalysts just like now and what i think was happening then and what i think is happening now is that the prices are simply coiling you know the spring is getting tighter and tighter and gold and silver now just like it was back in 1974 1975 and 1976 and we all know what happened you basically could add a zero to your silver investment back in if you bought back in 1974 over what happened over the next uh three and a half years um so i i think something similar is happening now um uh the spring on gold and silver are simply getting tighter because we're surrounded by simply too many catalysts that any one of which could ignite this market and so i just you know because i have that big picture view i've been using this opportunity to actually just continue to accumulate uh both gold and silver and the miners all right all right well great answer there yeah and like you said that that list you rattled off back in the mid 70s there of concerns rising inflation uh slowing economic growth uh geopolitical risk uh energy shocks i mean those are all pulled from today's headlines you know as you said we we have seen this movie before um all right and and you answered my second question which is you know did you see this as weakness in the metals or more of a consolidation of coiling and it seems very much like you you see the ladder all right i want to get onto the miners but right before i do just one last question on this i'm going to ask probably more just for my mental health than anything else but you talked about how investors particularly institutional investors are not buying the precious metals for their monetary uh reasons at this point but as i said in the intro you know the the us alone has issued more than 10 trillion dollars in stimulus both monetary and fiscal over the past 18 months or so the rest of the world has added several additional tens of trillions to that um i think the average precious metals investor says i'm buying it to protect against currency devaluation by excessive monetary printing like why are those big investors not seeing hey this is the the biggest increase we've ever had in global currency supply so therefore i should probably own some of these precious metals to protect against that why are they not doing that right now well i think uh you and i and many others probably most people watching um uh see it and understand it and see you know that at some point something you know some type of monetary crisis is probably going to happen because you can't there is no free lunch you can't be negligent to the extent that central bankers and politicians are today uh and not have any type of fallout or consequences we had the same thing again back in the 1970s and eventually reality caught up to you know uh what was going on at the time the circumstances so i think you know at some point um this is this is going to happen for us um in the immediate term uh uh treasury yields have been spiking uh and the u.s dollar has been rising you know inversely correlated to gold normally and silver and so that that does partly explain what's happening at least right now um but again it comes down to the fallout you know the real world effects of all those things that's going to drive the people that don't see what we see into this market uh in my view uh and and the demand will push prices higher um again i i wish it didn't have to be a crisis adam uh but how do we escape that at this point i i i'm always trying to think okay what you know what assumption do i have that could be wrong you know i'm expecting a crisis and that gold and silver respond to that well uh how do we how does that not happen and i haven't come up with a good answer yet which means i i think my assumption is correct that at some point we're going to have a monetary event mike maloney has spent a lot of time talking about this and that will definitely impact gold and silver just like it did back in the 1970s just like it did in 2006 2007 um you know again we've been here before so i i don't want people to get discouraged because we've seen this before it's happened before and i think the spring is just getting tighter and tighter and tighter uh well good answer and you know i interview a lot of other experts on this program and um sadly or not you know the vast vast majority of them think like you that the the crisis is sort of unavoidable at this stage and for those that haven't seen it highly recommend watching the video i just did last week with luke groman where he basically lays out very empirically why the the fed and most other central banks and world major economies are now in a trap where their only choice is to continue inflating ever more from here which of course leads to destruction of purchasing power of currency in the long run um jeff i do wonder too if it's not a factor in play here at least on the institutional side is um you know in the venture capital world uh you have lots and lots of stories about companies that were going out there pitching raising camp you know trying to raise capital and they keep getting turned down again and again and again but then once one vc firm is willing to invest in them all of a sudden everybody wants to you know it's sort of this darling at the dance kind of factor which is once somebody starts showing interest in you then everybody you know suddenly doesn't want to miss out right um and you know there's a there's an old saying in uh in uh you know advertising this is back in the old days um i used to work for yahoo and we'd be trying to convince you know advertisers to buy digital media and they would say well look i can always just buy an ad in the wall street journal or the new york times that's the safe thing for me to do nobody's ever gotten fired doing that why should i take a risk on this new you know whole internet thing right of course time has proven out um and i wonder if there's not a little bit of that here where you talked about you know these folks are used to investing in stocks the party in stocks is still going on the old chuck prince you get a dance while the music's still playing um nobody got fired yet for buying tesla right um and so i think that maybe what's going on is they're just going with what works until it doesn't anymore and of course you and i and many many of our previous guests in this program have enumerated all the different reasons why you know this party is is probably overextended and likely to to end pretty painfully when it does and who knows maybe relatively soon and maybe that will be the stimulus that will be the spark that gets people realizing okay you know what you know what was working isn't anymore where's true value where's true safety and maybe that's going to be what sparks all this well uh let me respond to that by telling you a quick story so i was at a conference pre-covered in fact it was the just the month before covet hit real bad in the u.s it was the last conference i was at until recently and one of the dinners i got to go uh out with a company with a bunch of hedge fund guys and while they see they were at a gold and silver conference they were a precious metals conference right um so they they get the idea of gold and silver and holding it they even acknowledge to me that the system is unsustainable it can't last forever but one of them actually quoted that line to me you know we have to you know dance while the music's playing meaning they have to go with apple and tesla and all these others that are rising and gold and silver are doing nothing um it's too bad at that by the way that they didn't because they would have had a nice big run if they'd bought back in january of of 2020.19. it was a big sell-off but then there was a huge rebound huge run um but anyway that was their mentality and adam the more of them i talked to um and this was multiple guys over several days and the more i realized that wow they all think the same thing they see the case for gold and silver but they have to be in the stock market because even a hedge fund they're filing quarterly returns quarterly reports right just like a company they have to show performance they have to show that they're doing well right and so they're going to go where the money can be made at that time you know but what really struck me was how scary the exit could be uh they're all in into the stock market they really are and that hasn't really changed all that much as evidenced by the stock market continuing to rise right uh they're all there it's it really is a movie theater every seat is taken and the exit door is one little door off to the side and they're all gonna try to get out that door at the same time that's that's what concerns me is that it won't be a normal correction in the stock market that it could be just another outright crash um and if it is a crash if it's a if it's just a waterfall sell-off gold and silver would be impacted in that because it becomes a liquidity event then and they you know sell whatever they can sell or the brokers do it for they automatically sell assets to cover you know losing ones which could be gold and silver so if it is a waterfall crash i'm a little concerned that gold and silver would fall as well but just like in uh was it october of 2008 or march of 2020 um those events are quick and abrupt for gold and silver typically and that would be uh perhaps uh you know last train out so uh we'll see but um i i i would rather see a correction than a crash but i fear the crash yeah i i got it well two things one um great story and as you're as you're telling it i'm going to put a little gif up that i tweet out from time to time which is basically showing a crowd of people trying to get through a small exit uh and then secondly you uh you you mentioned you addressed a common question people have which is hey if if the markets fall um will gold and silver you know fall along with the markets and i'll just sort of reiterate what i believe the consensus of the folks i've talked to including you it sounds like is hey in in an abrupt market sell-off gosh pretty much everything is going to go down and one big factor in that is is in the immediate part of a market sell-off people who have been very long the market and trading on margin which is essentially kind of a way to to to buy stocks without putting up the full money up front um you start getting what are called margin calls where your brokers are saying hey you're now dangerously under water in your position we need you to add more to it um in order to i just saw a question yeah i just sort of interrupted him i just saw a stat this morning about margin debt being at record highs uh in brokerage accounts yeah um i also saw a stat i think a week or two ago that retail investment in the stock market is at its highest level as well so uh you couple all that with you know institutional investment everyone crowded into that trade simply because it's going up uh yeah i i do hope it's just a correction uh but i will tell you if it's a crash and there's a liquidity event and gold and silver sell off i will be turning over your couch cushions to look for change to buy more gold and silver so okay well you're welcome to whatever you find there it may not be much but you're welcome to it um yeah i know and you're right about the the margin debt and consumer debt and um you know exp record margin debt or extreme margin debt is a classic hallmark of a late stage bull market cycle right that's when everybody has just sort of thrown caution to the wind and they're just borrowing as much as they can to to buy securities um so last point on this is when those margin calls are going on uh you know if if you don't have the additional money to pony up uh to meet the margin call which a lot of people don't um your broker will then just sell your position and so what that does is it creates this vicious cycle where selling drops in price you get more drops in price by all the for selling so things go down real quick so what happens there is anything that retains its value gets sold to meet those margin calls and that oftentimes is what causes the initial goal selloff in gold and silver as you've said we've seen that happen in the past it has been short-lived and many times that is sort of the last train out of the station for folks that want to get on the gold silver bandwagon generally before it tends to perform much better after that now some people say hey jeff should i just wait for that moment before buying any you know positions and precious metals um personally i think that it's too hard to time um and in mo like like most assets that you are investing in because you think they're going to get repriced um the action tends to happen much faster than you can react to in real time and so it's just better to be building your position beforehand to be positioned beforehand yeah i've been down that road before when i was a novice gold and silver investor and uh this was the question i was always asking myself and this is the dilemma that every investor who waits is gonna face okay do i buy now oh oh wait do i buy now oh do i buy now what about now do i win that's the question that's going to go through your mind all the time and so pardon me because i see gold and silver as money uh i think if you see them as money and not just an investment um that kind of answers part of the question for you uh just accumulate them on weakness just continue to buy weakness that's that's the strategy i've taken and on big selloffs i i tend to uh you know buy even more so that that's i'm accumulating for the big picture what i see taking place over the next two three four years however long it it plays out so um so that that's how i handle it um one more point i would i would make adam is that if gold and silver if there's not a crash in the stock markets and it's merely a correction consider the fact that gold and silver are already down they've already fallen they're down both down over 20 percent so if there's not a crash in the stock market it's merely a correction the value is clearly going to be seen in gold and silver and they may not correct anymore they already have they could they could turn and begin to rise again so that's another scenario that could play out we don't know exactly how it's going to play out right but if that scenario plays out you may not you may not get another buying opportunity you may have to buy when when they're rising and by the way you might have to pay a higher premium then as well because uh as demand goes up premiums predictably also rise yeah i'm glad you mentioned that i was just about to and by the way i do want to get to the mining questions because was here's the main reason why i put you on today but you're just given such great material beforehand here um but yes uh when demand increases in the precious metals market which it does do um you have two factors that come into play quite quickly you have the premiums that if you're if you're trying to buy the the bullion directly gold and silver itself the premium above spot price that you have to pay goes up when demand goes up um secondly supply can become an issue and we saw this last year when people were freaking out during the very brief market correction we had back in but sharp market correction we had back in in march and april last year uh inventory amongst the precious metals industry pretty much dried up um and you couldn't you couldn't actually buy any physical bullion and get it in your hands quickly you had to basically trust uh the provider that you were buying it from might be able to give it to you within weeks and some cases even months so it introduces a whole bunch of counterparty risk and anyways on those two points mike maloney who we've mentioned a couple times already he's you know famous for saying look if if really the big event hits where you know money really rushes into this space he said you know gold and silver might become unaffordable and unobtainium right where the price is just so high yeah they can't they can't afford it uh and or you just can't find any to buy so i know there's a lot more to talk about that but let's save that for additional videos um let's let's get to the miners because there were there were several charts i saw recently that i really wanted to walk through with an expert like you um i'll put them up here and they're from the um excellent annual in gold we trust report from incrementum the first chart here shows that gold miners haven't been this profitable in decades uh they are spitting off more free cash flow than ever now let's contrast this with this next chart which shows that these miners are trading near their 35-year lows when valued relative to the general stock market and if you're looking at the y-axis there folks note this as a log chart here meaning that it increases exponentially as you go up and down uh you as you go up the chart and exponentially decreases as you go down um and and uh so this is showing that uh you know relative certainly relative to its all-time high in this this chart i mean it's it's almost 10 times in fact it's looks like it's more than 10 times lower than that it's almost approaching maybe 20 times lower than its all-time high uh and they're not just the miners aren't just undervalued relative to stocks they're also undervalued relative to gold itself which this chart shows um so uh i guess jeff why are it seems like it's a great error for miners right gold while it's down 20 for the year um is is up dramatically from where it's been you know 10 years ago um the companies are extremely profitable um more profitable than they've been you know at least in the past 30 plus years um and uh you know yet they seem to be trading like nobody wants them oh what's going on here uh well like we said with gold and silver i don't think the institutional investor is coming into uh the sector yet so if they don't feel a need to buy gold and silver they probably don't feel a need to buy gold and silver mining equities and so even though there is a lot of green on the screen and i believe in that concept of green on the screen you know at some point when this does shift uh you know institutional advisors those traders sitting with you know in new york with seven screens in front of them they're gonna see over here a lot of green and earnings with miners and it's gonna catch fire um but again i don't i think it's kind of the concept of well uh how do i know if if gold and silver miners if the mining stocks are going to rise well you watch the gold and silver price to see if they're going to rise gold has ever been falling so it's it's not entirely surprising um that their uh falling as well so uh but again i think it comes down to a shift um and many people i've talked to in the industry have told me the same thing john hathaway at sprawl rick rule who used to be with sprott many individuals i don't want to try to name them all but they've all said basically the same thing you know when this thing shifts and they come into the sector we're going to see an explosion so we we do need to see the shift into gold and silver first and i do believe as history has shown the mining stocks will follow gosh all right i mean it just again it just boggles my mind i understand the logic of what you're saying but at the end of the day you know investors are motivated by you know prospects of return yeah in a company which include earnings which a lot of high priced stocks they don't have any earnings right um so here you have an industry that is is kicking off earnings the larger companies are paying nice dividends it has all of the kind of hallmarks for higher gold prices precious metals prices at some point in the future given what you said earlier from what we've seen from previous periods that are similar to now and they're cheap they're trading at really like reasonable um like like you know 19 80 you know p e ratio right where they're not in the market they're not cheap they're dirt cheap they really are um uh and again that's value right where are you going to go out and find value right now is it in the broad stock market well by any measure the broad stock market is overvalued is it real estate is it bitcoin is it whatever a lot of these things have had huge run-ups and uh uh the only value that's really left out there is gold and silver and especially the mining equities like you said they're they're undervalued no matter how you compare them to the broad stock markets to gold and silver themselves to to their own indices right they're they're undervalued so that that's the value but again i i come back to this idea that uh the people i i've talked to the hedge fund guys they're they're just not interested um i i don't see them getting interested until gold and silver shift and they begin to shift some of that capital back over to this market and if you're buying now and you're willing to wait until that shift takes place the returns on the miners could be could be tremendous so i i do think that's you know in the cards because this can't last forever so uh i i have been you know for what it's worth i have been personally buying gold and silver miners uh this summer and recently accumulating more on the on the dip so uh that's been my strategy but again it's because i believe in the big picture yeah well i'm really glad you interjected uh to emphasize the dirt cheapness of these stocks that's really i think the theme of this video and why i wanted to record it which is you know folks watching these videos are trying to figure out what to do with their investment capital and one of the challenges they have about you know potentially remaining along this market is if you look at the relative valuations of practically everything else you know you can make a really good argument that it is way overpriced and that's that's you know certainly from the high-flying you know fang stocks but to really almost every sector that's out there and certainly things like bitcoin and whatnot and a lot of the cryptos you know you can have a fundamental discussion about you know where that sector is going but when you talk about what's fair value today and you look at the price run-ups and bitcoin itself has just gone from you know high 30s to 50 in the span of a week or two here let me interject one more point if i could interrupt you again i'm sorry if i'm being rude there's something i want to point out and i pointed this out in my presentation at the silver symposium i was comparing the size of these markets to the wilshire 5000 uh because that's probably the broadest measure of stocks that's probably fair to say um and i started asking the question okay what if just some of this capital starts coming over into the gold and silver markets and just by way of comparison uh one percent of the market cap of the wilshire is 61 times bigger than the entire silver primary silver mining industry so it's not going to take now part of that is a reflection of just how overvalued the stock market is right but again the idea is that just a little bit of that capital uh could easily overwhelm the gold and silver equity market and i think that's probably what's going to happen so interject any time jeff because when you do you're adding a great element to the discussion um and and this is really going right to the the small door you know big audience small door factor we were just talking about earlier um i i was interviewing um sprott ceo um uh john champarella uh sorry champaglia uh the other day about uh but we had a little side conversation about uh the silver market and he basically said the exact same thing uh and really just sort of mystified that um it is as sort of ignored right now given its fundamentals and how we were talking about how literally you know a billionaire or a company with a big strong balance sheet could come in and basically take up all of the available supply of above ground silver itself um and so these are extremely small markets relative to this the huge ocean of just capital that's sloshing around and all of these other financial assets um and yeah to your point uh jeff uh you know when the world catches on to what a good deal they are some of that capital should flow in and a little make a big difference which is what you're saying but imagine if we get that sort of crash or severe correction where you know today's high flyers are getting hit hard and maybe getting margin calls and whatnot and people are asking themselves where is safe haven for my money and they start looking at the the relative evaluation of these companies the relative bargains the dirt cheapness of them um i mean we could just see staggering returns and we're going to talk about a couple of individual stock picks that you you had in a moment but um but just sort of broad brush industry sector um what do you think is the potential for the sector here is it adding a zero is it three times five times like um what's the potential here for if you think the world woke up and yeah some of that that capital sloshed in from this you know i mean we were just talking the wilshire 5000 you even talk about the the bond market right right which is even bigger and has even worse prospects right so like what do you think could happen if things play out the way that you think they should well you've mentioned a crash you know and that gold and silver and mining equities everything goes down in the crash right well in october probably right right that's one scenario right so if that does happen uh we can look at the past and see what's happened before in october 2008 everything crashed if you bought on halloween kind of ironic but if you bought on halloween of 2008 and you just bought a whole bunch of juniors or you just bought the index gdxj the junior miners index in a month it doubled and so the message here is going to be if we do see a crash and the values of gold silver and the miners do go down um i i i will be buying i i will load up i will find more cash somehow to average down on them or whatever because the bounce could be tremendous um we saw that back in the 70s we saw it in 2008 we saw it in 2020 um you know i my mining portfolio went up 4x in 2020 uh by august so uh you know i i i just want to say i want that message out there that if we do see a crash don't panic look at the opportunity that's there if you're someone who believes in the big picture but generally speaking you know given how undervalued gold and silver are um you know it would not be surprising to see silver double and uh excuse me gold to double and silver to triple and then the miners of course to do a multiple of that the producers to do something like you know two three four x and the juniors three four five x and and some of them will do much more than that so um that would be uh in line with history that would be uh an expectation that would be reasonable to assume based on historical patterns so there's no guarantees we don't know what the future is going to bring so you have to invest accordingly knowing that there are no guarantees that this happens but that would be common that would be in line with history because we've seen that kind of price action in both the metals and the miners before all right and and to your um invest accordingly um you know a common question we get here after videos like this is all right well if i'm interested in potentially investing in the mining companies how do i go about doing that um jeff has recorded a video that we've mentioned several times in this program in the past if you haven't watched it yet go watch it you can watch it for free it's an excellent presentation where he sort of describes his framework for investing in the mining companies and then he gives uh his uh you know i think was like your top 20 picks basically across the industry in terms of developers explorers producers both in gold and silver i think you throw some uranium miners in there too and jeff that was recorded a couple months ago but i think prices have only come down you know in aggregate for most of those companies i'm assuming you still like those companies you just think they're even better values at this point yes nothing's changed in that presentation i did review it real quick before we came on the air here um nothing's really changed the the thesis is still the same and the prices are better so if you're buying now you could actually get some better prices than i got so i still like all those companies nothing's really changed with them nothing's changed with them uh because those are fundamentally sound strong companies some of the explorers not every single one may be successful but if you're buying a batch if you take a lace potato chip approach and don't buy just one i think that's a very good selection of stocks it's my portfolio and it's the best ones that that i own i even highlighted believe some of the best buys right now um so i still own all those i still think they're great buys all right great so if you want to watch that video folks just go to wealtheon.com miners and uh you can watch it for free there um all right so jeff let's uh quickly get uh whatever valuable insights that you took away from the silver symposium last week um i did not get a chance to go i've actually been waiting for you to return so i'm super excited to hear what you have to say i don't think anyone there any speaker there really thinks the silver thesis is over uh no one thought that there were some uh a couple speakers that felt like the uh correlation coefficient between gold and silver in other words then how often they move together how frequently they move together they were seeing some breakdown in that relationship um you know in my view that's more of a long-term view even if there is a breakdown i'm not sure that you know there is uh but even if there is this is a long-term thing that would play out after the next cycle um meaning that silver may not follow gold uh but again there's going to be but even those speakers acknowledge there's probably going to be not just another spike in the silver price but probably a new all-time high and i think that is one of the main uh messages that i got from the conference is there there aren't a lot of scenarios out there with all the catalysts surrounding us that say silver's not going to make a new all-time high again there's no guarantee of that but everything that we are all looking at suggests that silver is uh going to make a new all-time high in the next run and i detail why and how high that could be in that video so so it could be fun so i encourage people to hold on all right great hey and a question that came up i forgot to ask earlier but it's germaine here you know we talked a lot about the recent inflation that's been going on uh how impactful is that to the precious metals mining industry in other words as energy costs go up and perhaps labor costs go up are those material factors that really eat into their profitability uh yeah their costs will go up if inflation is not transitory but they're seeing higher costs the obvious one being oil right they all use or most of them use oil to you know for their operations so they're seeing some higher costs but the industry average is still low um the interesting thing about that is is do prices move higher gold and silver prices move higher uh or do costs move higher and the answer is costs tend to be a slower moving rise while prices can be a spike in rise right so even with inflation you could see a scenario where margins are actually increasing even while inflationary costs are rising for the miners uh once silver gold and silver go in the next run so they can move a lot faster than inflationary costs so it's possible that the margins you referenced earlier to gold and silver could actually expand as we go forward so we'll see uh but could be an exciting time well yeah it just seems the further i dig into the questions with you the brighter the outlook looks for these battles um all right jeff well look um if folks want to learn more about you and your work um well i know you're very active on twitter so maybe we should talk about that but where's the best place for them to go and if it is twitter let them know what your handle is and what you do there well i you know write exclusive commentary for goldsilver.com you know i i love working with mike maloney he's such an authentic real person i really enjoy working with him um and so my commentary does exclusively show up there and then it gets distributed to other outlets so but all of our research including mike's videos and everything we do there is at goldsilver.com if you sign up for the newsletter you actually get the uh you know all of our research before we release it to the public uh yes i i am on twitter um it's sort of a love hate relationship but but i am active on twitter um and my agreement when i got on was i would share my personal picks so if anyone's interested i do disclose what i buy and sell primarily focused on buying um uh sometimes when i've announced i'm selling something it it tends to upset someone so i've kind of pulled back from that so it's mostly what i'm purchasing and why uh but if you're interested i i do disclose what i personally buy there it's at the gold advisor on twitter great and for folks watching um you know the well the recommendation that we've made many times on this channel because lots of people smarter and more experienced than us in the precious metal space make this which is if you're going to invest in individual mining companies and you can buy some of the industry etfs the gdxs the gdxjs et cetera if you want general exposure to to this sector you want to capture the beta of the sector as it's called but if you want to try to get the alpha which is the outperformance that an individual company can make above and beyond the sector itself um a lot of companies out there uh you know it's it's it takes a lot of time to really understand what makes one different from another and if you don't have much experience in the space it's really hard to determine uh the prospects of one versus another um and so the strong recommendation is to follow an expert who follows this industry and has done so for a long time they've got a demonstrated expertise that demonstrated track record they've got a brand to protect they have industry relationships these are guys that can talk to manage that do talk to management frequently have gone out and visited the actual minds themselves so there are several you know gold and silver newsletters mining newsletters that you can subscribe to jeff's twitter feed is kind of like a free newsletter um where you've got this expert here who is sharing his pics with you so anyways uh just keep in mind though that i do uh tend to speculate a lot i don't own a lot of producers for example uh so i do tend to speculate so my strategy may be different than someone and someone should really use twitter just as a as an idea forum you know an idea that they can then take and go conduct their own due diligence on uh but yeah what a great time to to be educating oneself uh on gold and silver and the miners especially right now adam because if we're right about what's ahead uh that education could really serve someone well uh over the next few years all right well very well said and as i mentioned at the beginning of the video we also have a bonus gift from jeff so he and i just sat down and uh he gave me a quick summary of uh two of the precious metals mining companies right now that have his particular interest right now as being really deep value opportunities in the space and if you want to watch that you can watch it for free right now simply by going to wealthyon.com jeff all right and with that um jeff thank you so much for your time it's always wonderful to have you here on the program i have a strong instinct that the precious metal space in general but the mining space in particular is going to give us a lot to talk about in the coming months so i hope i can invite you back on again and uh for folks watching um if you want to support this channel see great guests like jeff again in the future please just hit the like button and then click the red subscribe button below if you haven't already as well as that little bell icon right next to it small step on your behalf but really does make a big difference for us in getting this content out there into the world jeff again i can't thank you enough thank you so much for coming on uh it was great adam we'll do it again uh and who knows by then maybe gold and silver will be having happier days all right well from your lips to god's ears buddy thanks so much you

Channel: Wealthion

Views: 38,821

Rating: 4.939394 out of 5

Keywords: silver, gold, gold prices, silver prices, precious metals, gold price forecast, silver price forecast, gold price, silver price, jeff clark, precious metals mining stocks, precious metals mining, precious metals investing, precious metal stocks, platinum mining stocks, precious metal mining, mining stocks, investing in gold, investing in silver mining stocks, investing in gold mining stocks, wealthion, wealthion adam taggart, goldsilver, goldsilver.com mike maloney

Id: XEr7fcsXDPU

Length: 45min 54sec (2754 seconds)

Published: Wed Oct 06 2021