One Rule for Central Banks and One for Us
Debasement. Erosion. Destruction.
That’s pretty much how my day started.
The Sprott Natural Resource Symposium was beginning, and I had a date with my desk.
After a 4.30am alarm and not enough coffee, there was no mincing words.
The very first conversations happening were about the destruction of the US dollar.
Which was quickly followed up with a private chat that coffee in Canada could hit 20 bucks a cup.
And then I spoke with perhaps one of the world’s first gold newsletter writers…
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It’s not all doom and gloom
That’s a fairly doomy and gloomy way to start your Thursday, right?
Well, not really.
While the first few words were a little on the gloomy side, everyone who uttered them was quick to follow up with a solution.
In his opening comments, Rick Rule, host of the Sprott Natural Resources Symposium, began with talking about gold’s incredible bull run this year.
Quickly following it up with how the rules are different for central banks and the rest of us mere mortals. Rick told the eager crowd that the Federal Reserve Bank’s unfathomable money printing will only benefit gold, saying, ‘When the Fed prints they call it policy, if I do it, it’s called counterfeiting’.
A topic Andy Schectman — owner of Miles Franklin Precious Metals — was quick to agree with.
‘I’ve instructed my team to buy everything that isn’t tied down,’ he said to Rick in the first few minutes.
Saying that that after the supply crunch in March — where almost no one could get their hands on precious metals — Andy was keen to secure any and all precious metals for his clients.
Andy said he’s extended his lines of credit to buy as much gold and silver as possible. In his view:
‘I don’t think I’ll be holding onto it that long. I think others will come alone and take it right out my hands.’
The conference had been running for less than half an hour when I whisked into my first — and LIVE — interview within the conference.
I met with the owner of what is possibly the world longest running gold newsletter, ironically called ‘Gold Newsletter’.
The name, I discovered, came from the founder Jim Blanchard, who wanted to encourage physical ownership of the yellow metal after Richard Nixon took the US dollar off a gold standard.
It was the first of its kind. And Jim Blanchard is one of the very first people to also call for the US dollar price of gold to be worth ‘thousands’ per ounce.
Almost 50 years later, that newsletter now has Brien Lundin at the helm. And his multi-decade experience means he knows a thing or two about bull markets.
That wrapped up, and I entered a private chat with a Canadian-listed gold explorer…and one of the partners was part of the team that discovered the unbelievable Fosterville gold mine in Victoria.
And that was all before 10am…
Monetise your mistake while you can
This is not the sit back and relax event I expected.
Honestly, I thought the pace would be slower. It has been all systems go since it started a few hours ago.
Normally I’m pounding the hotel floors with my heavy footsteps.
This time around it’s my laptop and my phone getting a workout as I try to keep up with all the video conversations happening, as well as the messages flying in and out of my inbox.
After all those interviews wrapped up, there was the Happy Hour with Rick Rule. That was a live event with a couple of hundred people logged in. Surpsingly, it all worked.
As the only Aussie in the chat, Rick and I joked about how Aussie exploration juniors have been starved of capital, which is why Sprott Asset Management has been able to make deals with them on ‘very agreeable’ terms, says Rick.
Next, he joked to his American audience that Australia doesn’t appear to have drills that go beyond 300 metres here. Which is basically just pointing out how underexplored Australia is.
Moving onto what to do in ‘this’ market, attendees asked Rick for his outlook on gold stocks. Rick noted that some look a little overvalued, and perhaps unjustifiably so. Telling people listening that perhaps now would be a good time to look at your portfolio and ‘monetise your mistakes’.
In other words, if you’ve bought shares in a mining company that have gone on a stellar run — perhaps unjustifiably so — perhaps it’s time to cash in rather than hold on.
Don’t buy the narrative just because it’s a gold bull market. Rather look at quality companies with an incredible team driving a project.
And now I must leave you.
Coming up next, well, I’m on.
I’ve roped Bron Suchecki from ABC Bullion to be one of my guests during the conference.
We’re going to talk about the mayhem in March, where investors couldn’t get their hands on the metal…but most importantly how March killed the paper trade.
Check in tomorrow.
Until next time,
Editor, The Daily Reckoning Australia