Don Durrett on Palisades Gold Radio
Tom welcomes a new guest to the show Don Durrett. Don believes that gold is currently trapped on the chart and will fall before it recovers. Investors currently don’t have a good reason to exit the stock market and buy gold. If a correction occurs in stocks, it seems unlikely that gold will avoid taking a liquidity hit, but it will recover.
The US has been moving towards MMT policy since 2008, and we are slowly turning Japanese by copying their yield curve control. Last week the 10-Year moved sharply up and caused a small sell-off. Never before has the Fed tried to control interest rates at the five or ten-year level. The Fed’s balance sheet is ballooning, and the approach now is that “debt doesn’t matter.” The Fed is the defacto manipulator and controller of the economy and is going to try and print its way out. We are in a transition to a brave new era.
Don discusses how the Fed can lower interest rates, but they can’t control the real rates when you factor inflation. Gold can’t stay below $2000 for much longer because of major economic factors.
Don explains how Bitcoin could work as a reserve instrument for a country’s currency. He questions the belief that 2% inflation is necessary because that means a currency will devalue 50% in only 36 years.
Don says, “There isn’t enough silver to go around between manufacturers and investors once the economic system begins imploding.” Once above $30, you will see the retail crowd show up. The shortage in silver isn’t that severe yet, but once investor demand reaches 35% of annual production, you will have a shortage.
He says, “Silver won’t go over thirty until gold joins the party.”
Lastly, Don discusses the benefits of careful stock-picking compared with Royalty plays and what to look for in junior mining companies.
FULL SHOW NOTES AND LINKS HERE