This week we shared an interview with Jeff Currie, director of Commodities at Goldman Sachs. He is certainly talking his book when saying the trend for the foreseeable future is owning commodities. We happen to agree with him regardless. His supporting evidence includes:

• A decade of under investment in mining and fossil based energy development.
• Environmental, social, Government (ESG) and media pressure to restrict development of mining and drilling (holding back supply).
• Government legislated demand for mined and drilled physical products.
• It takes years and sometimes decades to bring on new supplies of physical assets.
• This bottleneck of restricted supply and legislated demand, creates a bottle neck that will not soon be resolved.

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Dr. Copper is acting like she wants to rally…… maybe it will rally or maybe not, but it is a good signal that copper did not go to a new low from its July bottom.

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Vizsla is just above a strong support line at $1.00. Vizsla has discovered enough silver that at a market cap of $252 million, Vizsla could arguably be worth more dead than alive. No, they are not in any trouble. They will raise money in the next year, but they are healthy. Capex to build a processing mill and building Continue reading →

One-year price chart:

Gatos Silver (GATO)* $2.33 is a producing and continued development of the Cerro Los Gatos Mine and the Los Gatos District. These projects are located in one of the world’s premier silver mining regions, the Mexico Silver Belt. Continue reading →

• British pound falls to all-time low against dollar after taxes slashed

Washington Post, September 26, 2022

• US Treasury Says It Understands Japan’s Yen-Intervention Move

Bloomberg September 22, 2022.

• “Super-Strong US Dollar Is De-Stabilizing All Other Fiat Currencies – When Will It End? | Gordon Long” YouTube 48 minute video. Wealthion Sept 27, 2022, release date.

Currency problems and Global financial system problems will create a “cause and effect” reaction to the Federal Reserve’s raising interest rates (cause) and then pausing (effect) its hiking of interest rates. Rapid increases (3/4% multiple times in a row) are very traumatic for countries who hold dollar denominated debt or treasuries. Dollar and interest rates up/US Treasuries down. Cost to repay US Dollar denominated Continue reading →

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It has been said the Fed will raise interest rates until something breaks. We might be close to that point. It seems there is some panic in the market. Perhaps a sick feeling in the stomach.

Over-view: it isn’t that interest rates are so high – it more likely that interest rates have risen so fast. This happened in 1987 Black Monday sell-off. In 1987, it was the fast increase in interest rates that spooked the market. Similar situation now. Interest rates have risen so fast that there has been no time for higher rate’s impact, to have its effect on the economy. So fast that we could see a hard stop in economic activity. So fast, it is crashing the economy well before the stats show up in “data dependent” economic reporting that the Fed says they follow. The Fed’s actions, we are told, are based on data dependent decisions, trailing indicators. Continue reading →

• Rick Rule – thoughts on the Art of Speculating and on Gold. Video – 8:16 minutes
• Peter Zeihan – No Hope for China to Survive as it now is. Video – 10 minutes
• Don Durrett – Price targets on SilverCrest and Discovery Silver
• Vizsla Silver: A Gem Below the Radar
• StoneCo – negative comment by Motley Fool – Positive comment by Morgan Stanley.

Rick Rule – Thoughts on the Art of Speculating and on Gold. Video – 8:16 minutes

In this short Video Rule presents his case for gold but, more importantly for our teaching moment, Rule discusses how as a speculator, he uses the news flow buy low and sell higher. As a speculator he is not defining timelines. In general, it is safe to assume five years is his working timeline. For this period, he expects a three to ten times return on his investment. Continue reading →