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As we near the end of 2024, Rick Rule joins me on the show to talk about his takeaways from this year's gold and silver rallies. As well as how he now sees the precious metals bull market evolving in th years ahead.
Although perhaps even more importantly, Rick talks about what happened with the Sprott PSLV trust in the months after the silver squeeze in 2021 when they cleared out the physical inventory in multiple cities.
You'll also want to hear about how close he feels the silver market came to breaking back then, why it didn't ultimately happen, yet whether he expects it to occur in the future (you'll be glad to watch this just based on his answer to that alone).
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When an ounce of silver will buy me more widgets than it did...then, I know, silver is going up.Silver.is making new highs in Australian dollars.
Yowza. The market can play their game. Until it can't. Nothing changes the box of 90% silver coins in your closet. It is outside their games.When an ounce of silver will buy me more widgets than it did...then, I know, silver is going up.
Right now it will buy me more FRNs. Or more fiat in other flavors.
THOSE things buy FEWER widgets, and the difference is great enough that silver seems to be losing a little ground.
Of course that's because of a manipulated market; but this is how we measure whether our PMs are, at the moment, doing their job, protecting stored value.
Big investors & corporations are hoarding cash like NEVER before
This is unlike anything we've seen
A thread
2/ Money market funds currently offer yields of around 5%
Which is one of the highest levels in the last 20 years
A 5% return may not sound spectacular
But in today’s environment, it’s compelling
3/ Compare that 5% cash yield to the S&P 500’s earnings yield
Which is currently around 3%
And you can see that cash yield is 2% higher than the S&P 500’s earnings yield
The latter of which basically measures the ROI from holding stocks
4/ Historically, stocks outperformed cash
But today, cash offers better return
This rare setup flips the traditional investing script
With stocks yielding less than cash, investors like Buffett may see stocks as a weak long-term play
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Full show notes and transcript: https://www.monetary-metals.com/insights/podcasts/mark-valek-combining-bitcoin-and-gold/
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Chapters
00:00 - Teaser
01:50 - Mark Valek
02:24 - Background and Investing Journey
03:18 - Understanding the Austrian School of Economics
07:05 - Austrian School for Investors
08:25 - The Concept of a Sound Money Portfolio
09:12 - Combining Gold and Bitcoin
10:46 - Harnessing Bitcoin's Volatility
14:19 - Rebalancing and Writing Options
17:05 - Alternative Asset Perspectives Across Generations
22:37 - The Impact of ETFs on Gold and Bitcoin
29:56 - Liquidity and Volatility in Bitcoin and Gold
35:57 - Correlation and Diversification with Silver
44:40 - Inflation, Deflation, and Asset Allocation
51:54 - Revisiting the 60/40 Portfolio
53:58 - Mark's Unique Approach
55:00 - Future Podcast Questions
55:51 - Earn Interest on Gold