Rick Rule: Silver Set To Shoot The Moon - Expect Much A Higher Price Ahead

set the table for us Rick, why does

silver

have all your attention right now? The honest answer is greed, welcome to Richyon I'm Rich Founder Adam Taggart, thank you for joining us for part two of our interview with natural resources investor Rick Rule. If you haven't already seen part one of this discussion with Rick where he explains why he

expect

s natural resources in general and precious metals in particular to be some of the market's best performers over the next two years, head over to our channel on YouTube. com richian and watch it there first, it sets the context for the investment topics we discuss in this video.

Okay, let's start watching part two of our interview with Rick. The

rule

set us up Rick, why does

silver

have all your attention right now? The honest answer to that is greed. When I look back over the last 50 years, I have been an investor for almost 50. I have been a big beneficiary of silver because of the volatility and cyclicality of silver and the fact that most people who speculate with silver not understanding the nature of that market and understanding a little when most people don't understand

much

is a great competitive advantage silver is described as the poor man's gold, that is, due to its lower unit cost it is accessible to more people it's kind of democratized gold and what that means is that after the primary trend has been established up in a precious metals bull market set up by the way gold momentum, the second half of a bull market precious metals is usually dominated by silver. it has more upside volatility eh, why is that like that?

I'm not exactly sure I spent 50 years trying to figure it out. I'm just sure that's not exactly why it's safe, but let's look at some reasons and look at some of the things we plan to cover in silver investor boot camp. First, go to supply and demand, and they are both very difficult to understand with regards to silver. Much of the silver that has been mined is still Supply We Take. We take it out of a hole in the ground called a mine, we put it in a hole in the ground called a vault, so you don't look at supply the same way you would with oil or copper, which is used for the other thing.

The supply that's really interesting is about 18 percent of primary silver. The supply comes from silver mines, the rest comes from recycling, and as a consequence of the byproduct of base metal mines, to have an idea of ​​what the silver supply will be like in five years, you need to have an opinion on what it will be. the

price

of copper, for example, or what the

price

of gold will be, so it's very difficult to understand the supply side, but one of the strangest things about the supply side is that a lot of the supply is hidden a lot of people who save their wealth in silver, particularly in India, Pakistan, Bangladesh and Sri Lanka, do not want the government to know about their savings, the consequence of this is that we really do not know how

much

silver is on the ground.

If I may digress, I go back to the days when Buffett announced that he was long silver. You may remember that the price of silver went up a lot and then crashed and of course all the conspiracy theorists said it was the international Jewish conspiracy. and you know the United Nations and construction burgers and all that, what really happened we think is that the price of silver went up in US dollar terms, the rupee fell by half in US dollar terms and there was a bad harvest which meant the price of silver quadrupled in rupee terms at the same time the Indian peasantry needed cash, yes silver played its role and silver left India to the world market collapsing the price of silver .

This is perversely one of the reasons I like silver, because there are so many people trying to understand it, they don't know much about the fundamentals, it's hard to understand the supply, it's hard to understand the demand, what's not hard to understand is the favor even. people who like silver are disappointed by the lack of momentum silver has exhibited over the last three or four years to be a speculator, to buy low and sell high you have to buy assets that are out of favor and when I look back at history, when I look at where the price of silver could go and where silver stock prices could go.

I have to say that there is absolutely no premium built into the silver market, meaning I get both the narrative and the story for free. People are excited in the last two weeks because the price of silver is up to two dollars two dollars if you look back at the history of the price of silver going back to 1970. You will see that two dollars is irrelevant, the price of silver Silver can make or lose two dollars in a week simply by breathing in and out. When I entered the market the price of silver was 20 dollars and in that market it peaked at 50. dollars okay fifty dollars let's fast forward to the next silver market which I enjoyed with Quarter Main and BD and everything my kind of countrymen, the price of silver had fallen to I think it was four dollars and it went from four dollars to fifty dollars, it's not that dramatic. bull market like the first one, but it's pretty good for me, thanks.

If you look at a long-term chart of the price of silver, what you see is that it rewards you infrequently and it rewards you from bases where it has been despised, but when it rewards you, it rewards you extravagantly and at 70, well, almost, at 70 years old I look forward to another bull and silver market. I think negative real interest rates will cause us to have a roaring gold market. I think the momentum will be set by the gold market and I think the logical conclusion to that, based on history, is that towards the middle and end of that bull market silver will outperform gold, but the most dramatic response, for Of course, you will be on the right of the silver stocks. the silver stock population, including the pretenders, even the guys who have silver, are a component in the name of a stock certificate but, inconveniently, do not have silver. um, the market cap, the combined market cap of all the silver companies in the world is at is verifiable even compared to the gold market, which is like approximate infinities.

I don't even know the number. I can find out and get back to you, but my friend Doug Casey points out when the generalist investor is attracted to the silver narrative. four times in my lifetime the amount of money flowing into silver equities cannot be contained by market caps going crazy I will give you some historical examples just to drive your listeners crazy my first bull market in the bull market the 1970s Spokane's little Penny Dreadful called Coeur d'Alene Mines went from 10 cents to sixty-five dollars, not a typo, sadly, I was too young and dumb to own it next time, however, two coming especially mine because I was involved in The silver standard went from 72 cents to 45 dollars.

Panamericano from 50 cents to just over forty dollars. The response you're getting from a smartly managed but relatively unknown silver company in a silver bull market is absolutely amazing. Now this is not something. That someone wants to put his son's college tuition fund into this is for the part of his portfolio where he is looking for truly external risks and truly enormous rewards. I think that due to the entry point at the moment, the risks are at least in a historical context minimized and the time one needs to wait to be rewarded is probably also short, but no one should listen to this if they are afraid of volatility and the target The silver investor boot camp is to arm people with enough knowledge so that they can outperform other investors in this sector of the market, that's really what it's all about, that's what we're trying to do with the uranium investor boot camp.

As you may remember, we started the boot camp with a presentation on the fundamentals of the uranium market which alone was worth the tuition, but then we moved from there to people who had 30 years of experience in the uranium market. We talked about how to build a uranium company with people who had built uranium companies. Let's do the same. What's in Silver because the lessons of Ross Beauties and Bob Quarterman, as well as Randy Smallwoods, who built multi-billion dollar silver companies, are instructive for people to understand when they think about how to invest in silver companies today, these Living Legends, eh, they will say it. you know how the lessons that construction companies learned impact your actions as individual investors today and believe me, you need to learn from them, we are going to talk about physical silver and the representatives of physical silver, there are many ways to own silver and not No All methods are suitable for all people.

We want to teach our attendees how to build a portfolio that is more or less optimal for them. Many people don't know how to do it and don't understand that a portfolio should serve them, not serve them. a marketplace and we hope to help you and finally, Adam and I know you have some questions, but like all educational products I have offered in 30 years, silver boot camp tuition comes with a full money back guarantee if you don't If you think you are worth your money, send me an email and I will give you your money back.

We sold 3,200 tickets to Uranium Training Camp and I think we had 30 refund requests, so we did a pretty good job. delivering value to 99.9 percent of the people who attended the event and we are very confident that we can do very well with the silver training camp with the silver training camp. I'm going to guess that that point one percent were people who bought two by mistake. tickets and then I realized later, oh, we actually had three people. I needed to say this because I'm bragging that we had three people ask for their money back because they thought the content was too advanced and they couldn't use it. they got more than what they needed and you know, that's a pretty good criticism from my point of view.

I was going to say that that's exactly a high quality problem to have. Okay, look Rick. I think we have enough people here. It's because you know, especially anyone who's been to uranium boot camp, they already know the type of experience that you offer, which is incredibly robust, so for people who are eager to hear more details about this, when is it? February 11, okay, and what day of the week is our weekend or a weekday. I don't know the answer to that, to be honest, I don't have weekends. I'll look for it and when I put the I.

I'll put the date on the screen, I'll put the day of the week next to it and how long the event lasts. It's an average eight and a half hour event, but I understand that it's a web event, so the people who uh attend will be able to access the event for six months uh, I've already repeated the uranium boot camp four times and you would think that I knew the material pretty well from presenting it, but the truth is that I get something new from other speakers every time. time I hear it, so it's important to keep in mind that it will be an approximately eight and a half hour live event, but the tuition covers six months of access to be able to play it and that's where I was going with this, which is if people can. they don't attend that exact day or they can't attend the entire event because they have right life obligations, they don't need to worry, they will have the replay videos there that they can watch as much as they want. for the next six months right, okay, look, so folks, if you're interested in learning more about this event, and certainly if you're interested in registering for it, Rick's firm had sent me a pretty long URL , so just implement a redirect, just go to richyon.com Silver bootcamp uh and you will be sent to Rick's site and you can learn all about it and the big button there to sign up.

I can't wait to see myself, Rick. um, super excited about this space um uh, I just want to let people know also that, uh, yummy, we have our conference twice a year, the next one will be in mid-March um and uh, they kindly agreed to be speakers there, um, so Thank you, I just want to let people know that we will have you there and we will be able to leverage your experience for that event as well. Basically, we're going to make a call, you know what kind of call I'm calling. Rick's picks, but where you see some of the most interesting companies across the hard asset spectrum and obviously if there's also a key Silver Summit Insider, maybe I can get it out of you too, but folks there's definitely no substitute . for going to the summit itself and you know drinking from the fountain of wisdom of the incredible experts that are there and you know that you know Rick, you've learned from this video and probably many of his others, it's one ofthe smartest guys. on the planet in space, but you have mentors that you talk to, you have people that are domain experts, because you know all kinds of parts of the silver sector and, as you just mentioned, you know that all these guys are going to be there . in one place, so don't forget to visit richion.com's Silver Boot Camp when I finish this video, um, Rick, it's always a pleasure to have you around as we start to fade away.

I want to highlight a point here so you can make a comment if you want, which is um, this is a highly volatile space as you talked about, right? um, and there are ways to invest in this space and there are ways to speculate in it, as you've said, um and even if it's just to determine, do you know how many ounces of precious metals I should have? You know the answer to that question really needs to be factored into your overall financial situation and for many people, especially those who are relatively new to this space, I think working with a professional financial advisor who understands the benefits of these financial companies these sectors.

To be honest, most financial advisors out there try to discourage people from investing in precious metals for two years. One of the reasons is that if you're investing in the metals themselves, these advisors don't make money on it, so they don't want you to spend your capital there, they want to hold it themselves and then a lot of these guys don't do that. I don't want to do the hard work that it takes to really understand the good opportunities in this space, you know how to separate the wheat from the chaff and they just know that they guide their clients away from it, so you'll want to work with a professional financial advisor who really understand the whole thesis that Rick has been laying out here and then be able to ask him key questions like, for example, how much exposure should I have to physical metals, what does my investment portfolio look like in these companies, okay?

What is my speculative portion? If you have a good one that does that great job, stick with them, if not, consider talking to one of the financial advisors featured on Wealthy every week with me here, you can schedule a free meeting. consult with them just listen to what they have to say it's totally free there is no obligation to work with them it's just a public service they offer to try to help us help as many investors as possible make the most informed decision possible about their equity allocations, if you want to schedule one of those free consultations, just go to richyon.com and fill out the short form there.

Sorry for that long exposition, Rick, but I know this is something near and dear to you, which don't you want people to just jump into space? You know, firing weapons without having enough structure and protections in place, absolutely true. Your knowledge is your first line of defense, so the equipment you choose is your second line of defense. additional defense to that, Adam, any of your listeners who are interested in my opinions on your natural resources portfolio, by the way, I'm not a manager, can go to my website

rule

investmentmedia.com and participate in your natural resources talks.

I will personally rank them from one to ten. uh I do know you and I will comment on individual topics if I think my comments have any value also Adam if I can when I'm retired I'm starting a new bank uh if any of your listeners are interested in a real bank that is that is, one that has money, one that will pay high deposit interest rates with simple deposit products, one that will offer savings products in many currencies, not just the US dollar, and, in particular, one that will provide loans against gold and physical silver. accounts uh uh just on the rural investment media site in questions and comments the right bank so I'll sort through your portfolio and if you care about my bank I'll tell you about my bank in the meantime Adam I can't wait to talk to the people from your conference and I can't wait to help your listeners in our silver investor boot camp, well, it's my great pleasure, Rick, um, when you edit this, I'll post the links to your website there so people You can take advantage of these kind offers. that they just mentioned there, but most importantly, folks, if you found this discussion about silver interesting, every time I hear Rick talk about this, I'm literally writing, you know, okay, sign up now, go to richyon.com Silver bootcamp and sign up for it Rick, it's always a pleasure to have you on the Total Joy show, thank you so much guys, if you've enjoyed Rick on this show I'd like to see him return.

Do us a favor and support this channel by hitting the like button. on the red subscribe button below as well as the little bell icon Rick, thank you so much mate, always a pleasure Adam, hope to see you somewhere at some point, now is the time that the show we bring on to the principal partners of the new Harbor Financial. from wealth-backed financial advisory firms to react to what Rick has told us and talk about what the markets are doing since last week. I'm joined, as usual, by senior partners John Lodra and Mike Preston. Hey guys, Mike, why not?

Shall we not start with you? So, Rick's big rule, right? I guess a lot of what he said is very much aligned with the strategy of his guys in New Harbor from what they say on this channel every week. I'm sure you guys love the deep dive into precious metals because it's been kind of a cornerstone of your portfolio for quite a while, but don't let me put words into your microphone, what were some of your key takeaways from the interview, yeah, big picture, just to start. Let's start with how Rick started the conversation with him, who completely agreed with what I think he said when he asked his first question.

Do you know what he thinks about the global economic outlook? He says what we need is a synchronized recession or restorative correction. I'm not sure of your exact wording but you're basically saying we need a contraction, we need some kind of pullback in the markets, you're absolutely right, we've had 40 years of tailwind and interest rates and then of course we had globalization and offshoring of jobs and all kinds of things that allowed us to maintain a lifestyle here, at least in the United States, that has been really nice. It seems we are reaching the end of that road because we now need a permanently overvalued market.

We know that this market has been overvalued for most of the last 20 years compared to long-term averages and the only time we get close to longer-term equilibrium, you know, market clearing rates or a yield

expect

ed to be more normal. We will be near the bottom of the financial crisis in March 2009 and perhaps for a while in 2002 after the tech bubble burst, so we know we are currently at levels where we can expect negative returns in the next 10 years. We really know when that's going to happen, or even if it's going to happen. In fact, we may have a crisis tomorrow.

We may go sideways over the next 10 years, but we can say with confidence that we are likely to have negative expected returns in total over the next 10 years. next decade, so it's almost like why play the game and now, at the same time, we have Treasuries yielding 4.5 percent, even a little bit more if you extend it to six months, so Rick says that We need restorative correction and you know, he says. that he prefers to be a contrarian than a victim. I really resonated with that statement because I think we've been contrarians. I don't think we are always contrary.

We don't always want to be contrary. I'd like to just go back to picking good stocks the old fashioned way and picking the strongest sectors and that sort of thing, but the extreme level or the level of extremity that we've been experiencing for most of these last 10 to 15 years has required You have to understand that central banks have printed so much money that sometimes it is difficult to know what is real, so looking at things with the degree of skepticism that I believe is useful to realize the background of what we are. Having hugely overvalued markets here that have to stay there or everything will fall apart is not a healthy thing, so, you know, Rick talks a lot about that healthy skepticism towards the status quo that that's probably changing, we think that's very likely to change. soon and we.

We are very defensive, that being said, we have a lot of ideas, we recently put some new things in the pipeline that we can talk about today and lastly, I'll close with this. Rick is a firm believer in real assets, particularly gold. and silver, so are we, those things are outside of money Printing and you know, uh uh Central bankers are kind of magic, so to speak, at least we hope they're long term, so we're big believers in that and it's represented in our portfolio, right? Well, you know, Rick, obviously, um, yeah, the big focus of this discussion was precious metals, um, a big fan of both gold and silver, but he really seems to be saying, hey, Silver's moment has arrived.

He basically he said you know there's a lot of reasons why he. he's in it right now, but his greed is number one where you know this is a guy who's been involved in natural resources investing his entire career uh kind of a legend because of his uh his long term success in this and I know I've followed Rick often enough to the point that you know I've seen him lean heavily toward a particular product. Uranium comes to mind a few years ago and, you know, sometimes a little earlier, but overall it's been very correct to see. where the record is going and now he says hey, the next big opportunity is sober and obviously he and I talked about his Silver Summit, but I want to dig a little deeper into precious metals with you, but first, really, John.

I'm just going to give you a chance at a high or specific level of what some of your key takeaways were from the conversation. Yeah, thanks Adam and just so you know, picking up where Mike left off, one of the things Rick said. I think he really ties into our expectation for the prospective market here is to expect more volatility. You know, we can really zoom out and look at the last 40 years and see a tremendous tailwind for financial assets, both stocks and bonds, in particular. in the form of ever-falling interest rates, just open a chart of 10-year Treasury bond yields in the US over the last 40 years since the high inflation of the early 1980s and you'll see what I mean, it's a tremendous Tailwind for both stocks and bonds and let's add to that the tremendous liquidity and manipulation.

I'll even say that central banks to use a word Rick talked to coerced markets. This was not a conversation about free markets, it was a coercion of markets by central planners. Considering that the tailwind has largely run its course, we believe that they will certainly try to take political measures to put band-aids on things, but the degree of tailwind that those factors have provided. We think it's largely behind us and the next few years are probably going to be very eventful, very volatile. Mike talked about a reasonable expectation of the overall stock market from current valuations to go nowhere, probably even slightly negative in real terms, maybe slightly positive. on a nominal basis, but the reality is, you know, reliable metrics suggest that broad, passive investing in, say, the S P 500 to pick in the US stock market will likely underperform over the next decade . next decade and that will change, all that is needed is a repricing of the markets, certainly perhaps triggered by a global recession like the one Rick mentioned and Mike mentioned, our quick conclusion is that we are in a phase where That the early burst of a large bubble that began last year is arguably an opening to at least moderate some of the extreme overvaluations in the markets, but we are still at a level where valuations have only seen in unreliable metrics anyway in that single The year manufactured earnings and forward-looking estimates and things like that, but it's more solid, you know, year, um, 10 years, kind of valuations that rival only twice in history with the peak of the 10 bubbles and the peak just before 1929.

Therefore, a passive basket is We will probably be very disappointed, but we think this fits our style quite a bit. We believe there is increasing dislocation in the broader market, so there will likely be opportunities to selectively invest in certain areas that are tremendous values. Some of the very deep value stocks, for example, are probably starting to look compelling in terms of market weakness and entry points, but in sectors like the ones we talk about here we're big fans of real assets and underinvestmentThe structural thing that Rick talked about is there's probably going to be a big tailwind, so things like natural resources from all over the place, all kinds of energy, metals and industrial materials, we certainly think they're precious metals and also added volatility, and Rick said you know, give volatility to your friend, we think that's very wise advice and You know some of our Hallmark strategies, including using covered calls, call writing and things like that, they're just one way to help Try to monetize that volatility simply because when, for example, you sell call options, the premium you take.

All things being equal, he tends to be richer. When volatility increases, it's not a free throw, but you know it's a careful selection of sectors and areas to be in, but adding some hedges and volatility extraction tools like options. That's a general conclusion, you know, I'm sure we'll get a lot more into the micro points on that, okay, great, yeah, and just to add to your list of some of the things that Rick mentioned that the subjects are likely to premiums put a tailwind, obviously, this is the supply under investment that will create future shortages, probably the big driver, but you know, the rich population keeps growing, right? the world's population is still growing, people need things, especially people who are trying to get out of poverty, of which there are still billions on this planet, and you said you know fortunately we're seeing, gentrification is probably the wrong word. , but you know that We're seeing the progression of more and more people from the lower levels of poverty to, you know,

higher

levels, at least, rungs of the ladder of prosperity, which is a good thing for humanity.

Rick, you know, I love how he says that he's really optimistic about humanity. um but that's um you know all those people are We'll be placing an exponentially greater demand on the physical world as they climb those rungs of prosperity, on top of that we have the most bipolar world that we're entering or maybe I should say a world forked, uh, where do you see it? like the trend of globalization is now on pause or actually going into reverse and we will become a more deglobalized system, largely in part because of the kind of hand grenade that the Russian invasion of Ukraine created.

All over the world, where people are being forced to choose a side, large trading lines have already been redesigned, but there will be increasing competition from different trading blocs for these commodities, where in the old days I know that even relatively recently the West was able to get everything it wanted and everything would be priced in dollars. Now it looks like there's going to be more competition from these blocks and there might even be more competition so these blocks things are well valued, so we've had a couple of guests on this show saying that's going to be inflationary pressure, uh , rising commodity prices in the future, um and then we have, you know, general inflation itself, right?

We're seeing disinflation right now as the CPI is starting to come down, but there are a lot of people who have been in this channel recently who just think we're not going to go back to a kind of you know. With CPI averaging below two percent for the next decade, they think that because of many of the factors we just mentioned here, inflation will simply be

higher

in the future and you know that will probably be reflected in commodity prices as well. raw materials, so anyway. Lots, lots of kinds of tailwinds, uh, for this sector in general, um, uh, what's interesting is that, you know, Rick was saying that you know we need this cleansing fire, um, of a recession, um, to revalue many of the excesses that are currently in the markets still in the values ​​of the assets um and that could cause the prices of many of these commodities and the companies that extract and refine them, etc., to go down in the short term um , what you know in Rick's words, there is something that could create, almost certainly, could create great values ​​and, in certain cases, for certain commodities, perhaps like generationally low values ​​that we will not see again, since many of These tailwinds we talked about really start to blow as we go. going into future years here, so I see you nodding as I say all this um, but I guess you guys know that you take all of those forces into your portfolio allocation there.

I know you have precious metals as we said, I know you guys also have some exposure to other commodity producers or commodity players, energy, some other different sectors that you cover, and you're also looking at some of the emerging markets, well, yeah, You have some exposure to emerging markets in your portfolio specifically because they tend to be more resourceful economies, so I'll take a breath, but John, you've been nodding a lot while I was saying all this, yeah, that's right, Adam, uh, we're totally I agree that there is a dramatic change globally among the demographics of large countries and we do not need to look much beyond our own walls to see that many emerging countries are seeing a widening of prosperity towards the less prosperous classes.

It's not with ease or perfection, there are a lot of hiccups in places like China and things like that as they make that macro shift, but yeah, I think the analogy that Rick used is that people like us you know when we have money to spend is probably more in the services category than things because most of us are lucky to have some shelter to live in that is adequate and maybe even comfortable, but many parts of the world are going to use the analogy of replacing a thatched roof. roof with metal roof, um, this is a real thing that will drive demand for material type things, um, and that's why we like it when we talk generally about the US stock market and we talk about how overvalued it still is remains, it is a quite different picture.

If you look at international stocks, especially in emerging markets, they are not risk-free now and especially if we see a concerted, coordinated global slowdown, as if it were a possibility that we have talked about and that Rick talked about, but the valuations of those emerging markets are much more attractive than the US market, so we have exposure to both emerging market equities and some of the emerging market sovereign debt, all denominated in local currencies, so without It is doubtless a game in assessing the dislocations between those markets and the US markets. but also a broader picture of thematic trends like that, that growth trajectory of uh, broadening prosperity, um, you know, these things can benefit if the dollar we think the dollar is probably a little bit overdone on the downside lately. and there's probably a good chance of some strengthening in the dollar and that can be triggered perhaps by some, you know, shock waves going through the monetary circles, but in the bigger picture, we have exposure to those spaces, so The bottom line is that there are places to be opportunistically. deploy capital even if we still advocate a very conservative stance by holding a fairly large amount of assets in very liquid short-term treasury bills, things like that that are finally paying some attractive yield that can at least tide us over until better opportunities arise more broad okay, well said, um, okay, Mike, I'll talk to you about this point that Rick had raised, which is, um, assuming for a moment that inflation is more entrenched in the future, in other words, let's just be at a higher baseline over the next decade, so let's make that assumption for a second, you know, we now have bonds paying the best they have in a long time, but the yields are still negative. right, real returns are still negative, so Rick was talking about if you're a bond portfolio manager, right, you're just mathematically looking at this future of negative real returns, right, and that's not attractive, especially when you have all these Know the payout, especially if you're operating as a pension fund or something like that, you have these actuarial responsibilities that you have to meet and therefore whether we continue to have or whether we now have a higher baseline for inflation in the future um, you. knowing if that negative real return situation continues, bond portfolio managers or large portfolio managers that have a substantial percentage of bonds have to figure out what to do with that right, you know, you know, Rick is basically saying um, you know, gold is starting to look at our precious metals, it's starting to look a lot more attractive in that world, uh, for those guys, because okay, at least I can, you know, invest some of my capital in something that I'm into I'm sure he won't go. be losing purchasing power the way I see mathematically in my bond projections that I'm going to be losing real purchasing power so I'm curious to know what the reaction is from your guys and is it something that you guys are expecting, kind of secular tailwind for precious metals in the future, they may be capturing more and more capital from traditional portfolios and in a last statistic on that, Rick had mentioned that currently the precious metals allocation in the average portfolio is half of one percent and that's below the 40-year average of two percent, so you're basically saying that you see reasons why more capital should go into the precious metals you like, even if we go back to the 40-year average .

That's a quadrupling of capital coming back into the precious metals market, so is this a force of nature that you guys expect precious metals to hold onto over the next decade? Yes, we believe so. I mean, the technical aspects seem very good. gold and silver, you know, the fundamentals are good. I wasn't aware of those exact percentages, but I thought it was fascinating that investment allocation is around half of one percent right now across the board and the long-term averages are more like two percent, I think. He said what's a huge opportunity and who's to say what's going to spark a moment of realization in the investing public, when they're going to wake up and say they know that central banks really don't know.

What they are doing is not a plan B, they will just keep printing money until something breaks, which will probably sadly break and give us that generational buying opportunity that Rick talked about. I hope so. I think it is going to be painful and many people are going to be harmed, but my main hope is that the type of corruption, if I can use that word, of Central Banking, is known and there is a moment of justice for everything I believe. It would be a good thing and yes, maybe we will have some good buying opportunities then, but that is not the main goal.

I think the main goal for me anyway or my main wish would be to bring some justice and some freedom back to the markets and part. That's what gold is, gold and silver are real money, they will always be real money. I'm not 100% sure about Bitcoin, that's another debate, maybe it is too, but I do know that silver and gold have been around for thousands of years and the technical aspects of these things are starting to look a lot better. I will if I don't know if I can, but I can say I can share a graphic or send you one later.

Adam, gold is slowly going up. it was going for two thousand dollars an ounce and it's like a stealth move, big fella, do it here, do it here, upload it in real time, okay, yeah, I'll go

ahead

and do that, just give me a second, I've got it up here. It's so here's basically a monthly chart of gold, it's at 1940 an ounce, uh, I think you can probably see it now, yeah, and look, this is a monthly chart that we've talked about many times, this big cup and we run this upward trend. triangle that looks great and then boom seven months of disappointment, but look at the last three months, it's up almost 400 dollars here, I mean, it's one, two, three big moves very soon, if we move forward, we're approaching 2000, basically We are kissing the old. highs and we may see a brief covering rally take us there now, if that happens gold is projected around 2500.

The silver chart looks a little different but it is also bullish so You know, my point about gold is that, in my opinion, this has been a movement that hasn't been talked about much and gold and that's good, it doesn't seem to be overly hyped and yet it's been stealthy, it's about above the vertex of this triangle and again if we go. to the year 2000 should accelerate if we look at what the miners are doing here, they are actually underperforming gold, if we look at it we know where the gold was before, or where the miners were, where the gold was before, we should really be between 35 and 40. range in GDX and will probably get there soon atime it starts to dawn on you, but I can go

ahead

and stop sharing this now, so we are bullish long term long term and gold and silver are bullish more freely and and balance is coming to the markets and uh , there will be very few places to go that you can trust.

I think especially if we have some kind of big drop in the markets. I don't know what will make that happen. The markets have returned to a critical level. junctures uh or at a critical juncture in the s p somewhat below between the 50 and 200 day moving average and we are recording this on a Wednesday, January 25 the market was very weak this morning it is trying to bounce intraday here we We will see what happens, but we need to see the market bottom out, have a little bit of that moment of realization that we talked about before.

I think we're going to see an elevator go down towards 3200 or so and I think that will be just the first step if that happens and some other who knows what else could happen in the world maybe in conjunction with that, there are all kinds of surprises that can happen in a type of financial system as artificial as the one we have. IMO I could see gold taking off at the same time even with the sp falling so okay, good answer. I appreciate you sharing the chart because in many ways it shows the spiral of what has been happening with the price of gold over a long period of time. of time and maybe as you said technically, we are potentially close to a breaking point.

I like that the technicals are lining up well, but I really like that point from Rick about the dilemma the bond market is in because the bond market is huge. right, it's insanely huge, even if just one percent of the bond market switched to precious metals, I mean, they would just

shoot

the

moon

, because the precious metals markets are much smaller compared to the bond market , um, and only for people who don't do it. I know the precious metals market very well, gold is by far the larger of the two, you know, gold is a trillion dollar, multi trillion dollar market, silver is in the billions and as Rick said, it's a little hard to get a real idea. of exactly how much silver is out there, but most of the data that I've pulled for kind of the love grounds available on the surface, the silver is like, you know, it's in the tens of billions, um, it's not a lot , uh, and so on, um.

It is a very, very small door to capital, always serious. Capital sometime decides it wants to get in there, but what I like about the whole Bond thing is that it's just a math problem looking for a solution, so we don't need fiat currencies to melt for gold to show up in the Moon, we don't need you to know that there is a global war, I hope we have it, we don't have either of those things. those two things, but what I'm saying is that a lot of people who have gold expect to do very well when a massive crisis hits and I'm not saying that won't be the case, but I'm just saying that there are other big secular reasons like which Rick laid out with the bonds that also provide a good argument for why precious metals could do so well, so there are many different scenarios that could paint a very prosperous future for precious metals, okay, so, I had it right after After interviewing Rick the other day, I interviewed John Hathaway, and that interview will be released first on Mike Maloney's Gold and Silver YouTube channel, and probably after a couple of Days a week or so.

I'll try to watch the replay on this channel. And I won't go into too much detail. I'll let people watch the interview for themselves, but one of the things John was talking about. Did you know how gigantic the paper gold market is relative to the actual physical gold market and you went into the reasons for how that evolved and basically said that the paper detail has shaken the physical price for too long in this market and he can see a number of developments that could not necessarily eliminate that, but dramatically weaken the strength of the paper market over the physical market and he said that if the market really discounted the price of the physical, the availability of the physical, he said that The appreciation that that would create in gold and sobriety would be, you know, mind-blowing. uh he didn't really want to pick a number, but you know we're definitely talking about sort of multiples of current prices, um, so, you know. that could be super fascinating too.

I mean, again, I'll let people watch that video. My underlying point here is that there are many different potential scenarios that again point to higher or potentially substantially higher valuations for prices. metals now that it's been said that it's a difficult road, John, earlier you were talking about how Rick was saying that you know volatility is going to be a bigger factor in the future, we talked about how you know there could be a recession this year, the strength of the dollar in May. The truth is that there may be things in the short term that drive these prices down, that creates buying potential, which is great if you have dry capital and are able to deploy it, but I'm sure a lot of people watching are. .

Okay, maybe you know I want to get exposure to space. I don't have a lot of extra dry capital. You know, once I make those investments, then how do I invest in this space without worrying about losing too much in a drawdown? And if you can give us 30 seconds on how you protect yourself against downdrafts in the precious metals positions you take, yeah, happy for Adam and everything Mike and I and our team at New Harbor do is with our clients in mind. Yes, we can talk all we want about this or that forecast on this, but it all comes down to our clients and their financial assets and the important purpose they serve in their lives and most of our clients are very concerned about the volatility they want. . stability in your portfolio, so one of the best ways to not expose yourself to undue risk in things like precious metals, as bullish and constructive as we are, there is such a thing as too much of a good thing, so position sizing is really important, that's the first important thing is don't have too many financial assets in one basket and precious metals are a basket so we will manage the position size but we also use hedging tools, you know, we can use things.

In fact, we like options for our larger accounts that can accommodate options, we have half of our precious metals mining position hedged with what is called the collar position, where we have put a line in the sand below which mining stocks could fall and our clients would be no worse off, uh, and you know we've sold call options to pay for that insurance, which is ineffective, but you know we use tools to try to get exposure to the space, but smooth the trip and us. I couldn't agree more with Rick's sentiment that for most people who have the most exposure to the majors and have the beta, that's exactly how we see it, we think the broad sectors are attractive enough so that you don't need them. go speculate in small volatile unproven companies uh more generally okay um okay, very well said look while we wrap things up here um I would be remiss if I didn't point that out again, you know, Rick is super optimistic about sobriety. um he says right now there's no premium included in the price of sobriety right now as he looks at it, um, so, you know, and then he also talks about, you know, thinking that both gold and sobriety will be some of the best. artists in 2023, he said, maybe it will extend a little bit until 2024, I can't pick these things exactly, but with a 12+ month perspective, he thinks these things are really ready to go, not that you guys have done it . to look through exactly the same lens as Rick, but are you guys, uh, you know, looking to increase your exposure to precious metals or maybe particularly sober, given Rick's enthusiasm?

Do you have any immediate plans to do so? I'll go with you, Mike. with this question about the minors, I don't think we have any immediate plans to increase our allocation, we have about a 10th position in the model, but I guess I would also add that we want people to really have bullion too, so one of the first things What we do is talk to them about bullion, even before they come to invest with us. We ask them if they have physical precious metals. We think they should have between five and ten percent of their assets investable. physical precious metals, often you know we'll talk to them and they don't and one way or another we'll help them get it or they'll get it on their own, so from the top it's starting with 10 physical precious metals, then we'll put 10 minor metals on what's left, which is about 20 percent of their investable assets in precious metals or minors, so going up from there would be a very aggressive move and we just don't think it's necessary based on where we think gold is going and silver so I don't think so like John said we protect the downside because we have a sp drop we could literally see the miners go down with them uh we hope not but it's happened in the past it could happen again and we have options to put a floor there to allow us to overcome that, but simply put, no, I really don't think we're going to increase the allocation that I hope the allocation increases through market appreciation.

Yeah, I'll just add a little more. You know we can and, frankly, over the last few months we have effectively increased exposure by increasing the risk reward equation and the hedges that we use. Therefore, we could hedge less strongly or give more room for that position to be executed so effectively that that expands the exposure the more we hedge, so it is financially equivalent to decreasing the exposure, so we will do that. expand or restrict those Hedges uh dynamically as we see fit cool, sounds like you're giving the precious metals part of the portfolio a longer leash to run on, right, yeah, you're not here, okay, one last thing, Adam , I should point out sorry, I forgot to mention that we just added a commodities position as well, you know, we bought an ETF that has a fairly equal weighting in the commodities space, unlike other ETFs that have a very high weighting in oil, this has a more equal weighting, it is a small position. initial position, but lately we like technicals and commodities and the relative strength of commodities against other assets in the market is starting to increase, so we simply put an initial position of three percent of this ETF that contains raw materials now.

I'm sure the exact percentage of metal could be around 20 25, so in fact it also added about another percentage to our metal allocation. Okay, great and Mike, I'm going to get skewered if I don't ask you for this to share. the thicker the ETF, uh, I'll do all the copy, adding not personal financial advice, people shouldn't run out and just buy this because Mike mentions it, um, but what is that ETF? I will have to do it. put a big disclaimer that this is not investment advice and this should only be used as a proxy, you know, to follow commodity movements in the market, but we ended up putting um uh GCC golf Charlie Charlie. which is, uh, in ETF, that's more, you know, equal weighted and um, we just like the composition more, okay, great, you have uh and just to add to that, you have precious metals exposure, but again, like you said Mike, it's equally and relatively equal in a broad degree of commodities, including industrial metals, agricultural products, things like that, so it's a broad-based commodity play that has some exposure to oil and, truly, it's something we're not offering as advice here because there are taxes. considerations and distribution uh profiles and dividends and things like that that an investor has to be very aware of and we've certainly done our homework on that and we encourage people to do it very well and you're making my case.

Do this program every week, this is one of the reasons you want to work with a professional financial advisor who can help you make sure it is appropriate for your needs, goals and personal situation, but also takes into account your entire financial picture . In terms of whether this is the right kind of instrument to have there, all right, look, let's end it here. I just want to provide a couple of free resources so people can stay with me for a minute longer. um, I think it was Mike who was pointing out that, you know, not only do you have exposure to some of the publicly traded companies in your portfolio, but you also own one bullion as part of your total portfolio of precious metals exposure. .

We get a lot of questions from people all the time, which is fine, how much should I buy, where should I buy it, howShould I keep it and what are my options? We have a free guide that explains all that for you. Go to richion.com how to buy and you can download it there. You know all the purchasing options and the pros and cons of each, but also the storage options because you know beyond a certain number of ounces that you don't want. store this stuff yourself due to a lower risk of theft or you know, lost risk or whatever, so get that free guide.

I just want to remind everyone, you know Rick's level of enthusiasm, so much so that he's offering that silver boot camp. Coming up, I think it's February 11th, um, just go to richion.com Silver boot camp, uh, and that will send you to Rick's site with all the details of the event, uh, and instructions on how to register if you decide that do you want to do it. It's, I'll check in just so people know full transparency, and then lastly, I'll get back to the main message of this channel, many, many reasons that Rick mentioned, you know, uncertainty, volatility, but tremendous opportunity.

In this, uh, in the hard asset space, John and Mike did a great job of substantiating that and explaining why, for most people who are trying to figure out, they know which companies to invest in and then how to build a portfolio that can survive the kind of volatility. that we think might be in the future, it's usually very difficult for the average person to figure out how to do it right, so we recommend that people work in partnership with a professional financial advisor who takes into consideration all of these issues that you talked about Rick and then you come up with a portfolio strategy to optimize them, if you have a good one that is already doing it for you, great, definitely stick with them, but if you don't or you want a second opinion from someone who does, feel free. to speak with one of the financial advisors that Richion endorses, maybe even John and Mike and their team there in New Harbor, to schedule one of those free consultations, just go to richyon.com and fill out the short form there again, it doesn't cost .

There's no commitment to working with those guys, it's just a free public service that these advisors offer to help people make more informed decisions today, before all the activity that might happen actually happens. Okay and that being said, guys, you did like Rick ruling. On this show the great Rick Rule would like to see you again and other great guests of your caliber, please support this channel by hitting the like button and then clicking the red subscribe button below as well as the little bell icon right next to John and Mike, guys, thank you very much for joining me for another week.

Great job today, whatever the markets do between now and next week, we'll have you back next week to deconstruct it for everyone and hopefully make us all a lot smarter. Otherwise, thank you so much for watching John and Mike. See you next week. Thanks again Adam and we appreciate it as always. All your viewers, see you next week. Thanks Adam. Until next week if you would like to schedule a consultation with one of New Harbor Financial's financial advisors simply go to richyon.com. These consultations are completely free and there are no conditions. The good people at New Harbor will simply answer any questions.

If you have questions about your investment goals or your portfolio and will give you the best advice based on their latest market outlook, they are willing to do that because they care about protecting people's wealth and because Richyon has connected them with so many thoughtful investors like you. Over the last decade we started doing this because so many people have come to us frustrated looking for a solution because they feel misaligned or completely ridiculed by the standard financial advisors who have been managing their money - you know, the kind who just shove all their money around The market scoffs at the idea of ​​owning gold and when you raise concerns about sky-high market valuations, they tell you not to worry, the market will always take care of you for many of the reasons discussed in today's article. video We believe this is one of the most challenging and treacherous times for investing in history.

We firmly believe that today's investors are best served by working in partnership with a conscientious professional financial advisor who understands the risks involved. Now we don't know which professional advisor to choose. work with them as long as they are good, if you are already working with one who is fantastic stick with them but if you don't or are having trouble finding one you respect or trust consider talking to John and Mike and the team from New Harbor now For those who want to ask, yes, there is a business relationship between Richyon and New Harbor that we have established to make sure everything is handled in accordance with SEC regulations.

All the details regarding this are clearly provided on the Richyon.com website. It is important to note that New Harbor can work with US citizen green card holders and those with existing assets in the US, but for regulatory reasons cannot accept non-US clients. If you would like information and guidance on how to protect your wealth during this unprecedented time in the markets, visit wealth.com to schedule your free consultation with the good people of New Harbor. Thanks for watching the foreigner.