Maurice Jackson of Proven and Probable speaks with Bob Moriarty of 321gold about national debt, precious metals and resource stocks.
Bob, everyone is discussing the election, but you pointed out that there is a bigger elephant in the room that American needs to confront, which is our national debt.
Well, one thing is for certain, you always know where Bob Moriarty stands on any given topic. Speaking of topics, give us your thoughts on the election.
Bob Moriarty: If you want to understand democracy and why it’s such a terrible form of government, democracy is two wolves and a sheep arguing over what to have for lunch. Democracy is literally mob rule. And Antifa and BLM would like to run the United States, would like to kill anyone who doesn’t agree with them, and it’s going to get worse. And somebody’s funding these idiots.
Maurice Jackson: Bob, you shared a book with me earlier this year that touched on a lot of the vices that are confronting America. A lot of focus right now is on the election, but there is a much more serious, bigger problem facing our nation and that’s our national debt. Earlier this year you introduced me to a book entitled Common Sense 2.0. Tell us about the book, and why readers should consider reading this book today as America is spiraling out of control.
Bob Moriarty: That’s a good question. I’m glad you brought that up. It is not my opinion, it is the opinion of everybody who passed economics 101 with a D grade or higher. The world is bankrupt. Now, that has happened a thousand times throughout history and is nothing new to it. I mean, governments are a bunch of brain-dead idiots out to steal everything they can, and they eventually drain the treasury and the country goes bankrupt.
If you go back to St. Petersburg in 1917, or Paris in 1789, we’re seeing the precursors to a revolution/civil war. And people may not understand these, but those are all absolutely economic in nature.
And that’s a really good book, “Common Sense 2.0.” The guy talks about all the very real problems the United States has such as student debt. Students getting out of college with $32,000 apiece in student loans. They were in handcuffs. They’re in chains. They are slaves. When they should be just starting their career, they’re slaves. They’re debt slaves. And that’s just simply wrong. And the banks and the colleges have taken advantage of that, and college tuition has increased 700% when overall inflation only went up to 200%. The banks don’t care because they’re guaranteed they’re going to get the money paid back. After all, you cannot discharge the debt in bankruptcy. Now, Joe Biden has just said something in the last day or two about student loans and $50,000. Are you aware of what he said, Maurice?
Maurice Jackson: I think he was sharing debt forgiveness, is that correct?
Bob Moriarty: He called it debt forgiveness, but we’ve decided we’re going to stop lying to each other, so what is it he’s proposing? What is it in real terms?
Maurice Jackson: Well, basically, the debt gets deferred to taxpayers.
Bob Moriarty: What he’s going to do is he’s going to transfer the student loan debt from the student to taxpayers, so the students don’t have to pay it back anymore, their parents do. What a great idea. Damn, why did I not think about that? If I got all that debt, like half a million dollars in debt, because the United States is fighting all these stupid wars, why don’t I transfer it to my kids and my grandkids and my great-grandkids? Then I don’t want to pay for it. Damn, I think that’s just a wonderful idea.
Maurice Jackson: And you see the disguise, it’s in the title: “debt forgiveness.” It is a play on words when hear the word forgiveness, as the public this is a genuine person that understands we’re going through hard times. But then if you look further, as we’re asking everyone to do, look further into what it means. If I don’t have kids, I’m paying for someone else’s kids to go to college. Now look, if you want to go to college, great, but that’s your decision, not mine, why am I paying for it? And then once you do receive your degree, and I paid for it, what’s the benefit to me? What do I receive? Are you going to come back and pay me for what I put into your education?
Bob Moriarty: It’s worse than that, Maurice. You’re paying for the colleges to have way too many people working there at too high a salary, and you’re paying the money to the banks. It is a corrupt system. And it is a corrupt system because we have dishonest money. And you cannot have a legitimate economy, you cannot have an honest economy until you have honest money. It’s that simple.
That crazy thing is people think I’m a gold bug. Hell, I’m not a gold bug. You could do it with salt, you can do it with big round rocks, you can do it with shells, you can do it with beach, you can do with anything. It just has to be honest money, and we don’t have honest money. And we’ve got so much corruption.
This election, unfortunately, the rest of the world has looked at this and is just totally disgusted. Whatever credibility the United States built up over the last 200 years, it’s gone.
Maurice Jackson: And here’s some evidence to that. The Bank of International Settlements has passed Basel III, which you and I have discussed that in the past, which has now classified gold as a tier-one asset, wherein the past gold has been a tier-three asset. You have the new “Bretton Woods 2.0” being discussed. And what that’s saying is the central banks of the world, our allies are saying, “Hey, why are we using the U.S. currency to trade between one another to solve each other’s debts, problems, if I owe you and you owe me? The Americans are lazy, they’re not manufacturing, and they’re just printing away?” It makes complete sense. And so the Common Sense 2.0 is extremely timely.
The cost about $10 buck online. I benefit nothing financially from it. 10 bucks on Amazon, one of the best investments you can make, an investment in yourself, an investment in your family, an investment in your country. Speaking of that, one of the solutions, one of many solutions in that book is owning and having some physical precious metals. What precious metals are you buying right now?
Bob Moriarty: Silver.
Maurice Jackson: Why silver? Someone new to our conversation, we’ve discussed this many times, but one would assume, “Okay, Maurice, you just referenced Basel III and you said gold? Why is Bob saying silver?”
Bob Moriarty: Because it’s cheap.
Maurice Jackson: In that same category, what about platinum?
Bob Moriarty: Platinum’s cheap but it’s not as cheap as silver.
Maurice Jackson: If Bob Moriarty were to make his first purchase today in physical precious metals would you start with some gold or would you go strictly silver, platinum?
Bob Moriarty: I would begin with silver because you can buy silver rounds or you can buy Eagles or Maples without substantial premium. If readers have 25 bucks, you can own an ounce of silver. And obviously, that’s not true of gold. The smallest reasonable size of gold would be a tenth of an ounce. That’s almost $200. Okay. That’s not necessarily cheap. It’s not cheap, and it’s a lot of money. Hang on, let me kill that. I wish I knew how to do this.
I’ll tell you a funny story, you’ll get a big kick out of this. When I buy metals, I cheat.
Maurice Jackson: Give us the formula for cheating.
Bob Moriarty: Of all people you know, who would be more in touch with what people are buying and selling on a day to day basis? There is somebody that you know who absolutely would have their finger on what’s going on in the market. Who would that be?
Maurice Jackson: Well, I’m going to be a little biased, I would say maybe someone in my position.
Bob Moriarty: Exactly. Here’s what’s crazy, everybody else has got an opinion. Now opinions are absolutely worthless. You go into Starbucks and order a cup of coffee, and say, “Hey, how much does it cost?” “Five bucks and an opinion.” “How much is it without the opinion?” “Well, it’s five bucks.” Opinions are worthless. However, the guys who are in the trade know exactly what it’s happening. And I have close contact with someone who runs a precious metal storage place. And when I’ve got some excess money, I call him up and I say, “Hey, somebody is going to want to sell something soon. When they do, call me, and I’ll be a buyer.” And I think I’ve done this like half a dozen times in the last two or three years. And every single time it nails it to the day. And about 10 days to go, he calls out and said, “Somebody wants to sell some big silver bars. Are you a buyer?” And I said, “Yeah.”
I’m not smart enough to know when gold and silver top or bottom. However, the people who trade in those commodities can see, on a day-to-day basis, if people are buying or people are selling. So since I’m not smart enough, I guess, cheat.
Maurice Jackson: And if you wish to cheat along with Bob, you’re welcome to contact me I am licensed to buy and sell physical precious metals through Miles Franklin Precious Metals Investments where we offer physical gold, silver, platinum, palladium, rhodium delivered directly to your house. We do not sell you a sheet of paper with a claim. We deliver your order directly to you, along with precious metal IRAs, and offshore depository accounts. And you’re correct.
One of the things we pride ourselves on Proven and Probable is we don’t bring someone on to give us an opinion on what the gold or silver price is going to be at said date, we just use the ratios, a formula that you’ve taught me, and it makes sense. And that’s how you’re able to just simply say, “Silver and platinum is on sale.” You didn’t reference gold in particular, and you definitely didn’t reference palladium and rhodium. But anyone listening to our work, go back three, four years ago, Bob and myself, we were foot-stomping rhodium, and rhodium at that time it spiked. It went down to around $590 just briefly, didn’t it?
Bob Moriarty: It got cheap. I had talked to somebody and told him to buy rhodium at 1,200 bucks an ounce because it was cheap, and got a call, $700 or so, that said, “You stiffed me. You lied to me. You were dead wrong.” And I said, “No, you should be buying more.” Tell them what rhodium is now?
Maurice Jackson: $15,200, last time I checked.
Bob Moriarty: Rhodium went from under $600 to $15,200. Now, some people absolutely claim to be gurus. I’m not one of them. You need to look at the silver gurus and the gold gurus and ask yourself, have these guys ever said anything that you could make money from? And the funny thing is some guys have been around for 20 years; there isn’t any time the last 20 years you could have made money listening to them because they’re going to tell you what you want to hear. I’m not going to tell people what they want to hear. The fact that people get pissed at me means I’m probably correct.
Maurice Jackson: And the important thing is you didn’t give a number. I hear this all the time, I get phone calls, “Maurice, did you hear this interview on this other program?” “No, I didn’t, because I don’t follow my peers in the industry.” But they’ll tell me about the interview. And the person says, “Silver is going to be at 40 bucks at this certain date.” Well, okay, that doesn’t mean anything to me. And how many times has that person said that and that’s why we don’t bring them on this program, but you reference as well, there are other factors you have to look at. What is the ratio between silver and any other metals? And what is the currency doing? That is a big factor because you’re using the number $40, which is currency. So what’s going on with the currency at the said time?
More factors go into it than just being told that you’re manipulated, naked short sales, or the COMEX. There’s more to the story, and we like to be objective and provide just empirical evidence.
Bob Moriarty: Actually, there’s less to the story. If you keep it simple and understand that somebody’s saying gold is gone to $3,000 in a year, it’s a meaningless statement. They’re telling you what you want to hear. Discard the noise and listen to the signal. You should buy precious metals when they’re cheap. You should buy gold stocks when they’re cheap. I just provided an example of how you can buy low and sell high on stocks. Somebody would like to make a 1,000% return, all you got to do is sit on your hands until 200 companies are selling for less than the cash they’ve got on hand, and then throw money at any piece of crap stock out there. In a bull market, even the crap stocks go up. And in a bear market, even the best stocks go down. Don’t make it complicated. I’ll give you a number, Maurice. Would you like to live in a world if gold is selling at $50,000 ounce?
Maurice Jackson: Well, I would not.
Bob Moriarty: Exactly. All of these guys who are trying to pick numbers and trying to impress everybody with, “Oh God, I listen to this. My gurus said silver is going to $200 an ounce, holy cow, I got to own gold or silver.” You don’t want to live in a world with $50,000 gold, because what it means essentially, is the economy has stopped, we’ve had a total crash of the dollar, we’re in Zimbabwe terms.
Maurice Jackson: Well, speaking of gold, how about gold Stocks? And there are companies out there that you and I like, that may reward readers. Let’s introduce some them now. I like to call them the Dr. Quinton Hennigh companies. Let’s begin with , what can you share with us? (NVO:TSX.V; NSRPF:OTCQX)
Bob Moriarty: I have followed NOVO for literally 13 years now. And I said in the first article that I wrote about him in 2012, Novo was going to be somewhere between 10- and a 100-bagger, and so far it’s correct. It went from 25 cents to about nine bucks. So far it’s been up 3,500%. They’re going into production probably the first two weeks of February. They’re going to have great cash flow. They have a lot of irons in the fire. They got one of the greatest gold deposits in history. I am in the process of writing the book that’s going, to tell the truth, the whole truth, and nothing but the truth. Maybe not all of it, but I will publish that book on the day they pour the first doré bar.
Check our interview with Novo Resources published on Streetwise Reports: (CLICK HERE).
Bob Moriarty: There are eight alkaline gold deposits that I’m aware of in the world. They have anywhere from 5 to 20 million ounces. Lion One has 100% ownership of one of them in Fiji. They had extraordinarily good results. They’ve got kind of an interesting situation. They believed that what they needed to do was get into production as fast as possible, so they came up with a plan and they’re actually permitted to go with production.
But they were trying to do things cheaply, and they bought some used drills. You just can’t do that in the mining business. Walter Berukoff the CEO has done a great job of raising money. It’s got about $65 million in the treasury now. Quinton Hennigh is an advisor to them. They’re drilling deep, they’re coming up with extraordinary intercepts. Because it’s been no news because of the assay labs being dilatory, the stocks dropped from about four bucks to I think about a buck 60 right now. And it’s cheap.
Maurice Jackson: Let’s go to British Columbia and visit the Exodus Gold Project, and then down in Nevada with the Slumber and Sandy, and that’s with NV Gold Corp. (NVX:TSX.V; NVGLF:OTC) and Peter Ball.
Bob Moriarty: I have known Peter for a long time and he’s a very qualified guy. Quinton is again an advisor. I don’t know very much about their BHC Project, but I know they’re moving forward on that. And they’ve got some good projects in Nevada, and they’re fixing to drill the Slumber Project. They are in the home run country, and you could fail nine out of 10 times and still be a 10-bagger.
Check out our interview with NV GOLD published on Streetwise Reports (CLICK HERE).
Maurice Jackson: And the team that they have, just the investors, the intellectual capital they have on NV Gold, it’s remarkable. It’s second to none. All right. Let’s switch over to Greg Johnson in the Metallic Group of Companies. And let’s begin with an interview we recently released on Streetwise Reports (CLICK HERE). And that’s on out of Montana at the Stillwater West and Michael Rowley. (PGE:TSX.V; PGEZF:OTCQB; 5D32:FSE)
Bob Moriarty: That’s a really interesting situation because they have the mirror image of the Stillwater deposit. And that Stillwater mine is actually in production. It’s an extremely valuable asset. They don’t get much credit. Platinum is cheap, but palladium is like $2,100 bucks an ounce right now. And Stillwater is very palladium rich, so they should be getting a lot more credibility than they actually have. It would absolutely be worth listening to the interview.
One of the first companies that I wrote up was NovaGold, and NovaGold only had five employees at the time. And of course, Greg was one of them. I think Greg’s bright. He’s very bright. He’s running three companies, he’s got the platinum company, he’s got a copper company, he’s got a silver company, and they are all exceptionally well run in a great district. They are going to be beneficiaries of what I believe it’s going to be the biggest gold rush in history.
Maurice Jackson: Speaking of a 10-bagger, , which is the silver company, has done just that. But let’s go right back to Group 10 Metals there. So, palladium platinum results just got released, 11 grams per ton. Nickel at 0.7%. And they just completed their 2020 exploration program. They did some mapping, sampling, and the IP survey is going to be coming out 6 grams per ton on rhodium. That’s remarkable. The market is just ignoring these guys. (MMG:TSX.V; MMNGF:OTCMKTS)
Bob Moriarty: 6 grams per ton of rhodium, let me think about this. That is a fifth of an ounce, so that’s almost $3,000 a ton.
Maurice Jackson: Group Ten Metals is a growth stage exploration play. Every press release is just been remarkable. They’re doing a great job. Let’s switch now to the silver company we just referenced and that is Metallic Minerals. Take us there, please.
Bob Moriarty: Metallic Minerals is one of the richest silver districts in history the Keno Hill Silver District. They’re moving forward. And if you like silver, you absolutely have to like the very few true silver companies, and they’ve got it.
Bob Moriarty: It’s copper. I’m kind of mixed emotions about electric vehicles. There’s a lot we’re not being told. Wind power and solar power tend to be a 3% solution, so we pay a lot of attention to it, but it isn’t necessarily valid economically. When a wind turbine wears out, it’s incredibly destructive to the environment, because you can’t do anything with those wind things, they’re carbon. They create a big mess. I’m not a believer in alcohol from corn or wind power or, so far, solar power. They sound good, but they’re feel-good solutions. They’re 3% solution solutions. Of course, nobody wants to tell you that, because they want you to invest in it.
However, if you believe that electric vehicles are the future, then we’re going to have the biggest damn shortage of copper you ever saw. And anybody who’s in copper, it is going to have substantial demand now. Copper is about three bucks a pound, it’s been as high as four and a half bucks now in the last 10 years. You’re going to see some substantial increase in the value of copper if electric vehicles are what they’re told. And I could tell you, I believe it, but a lot of people do.
Maurice Jackson: The research we’ve conducted, the world is going to consume more copper in the next 25 years than all of recorded history combined. And then you take a look at the Granite Creek Copper, they’re in the rich Minto Copper district. They have oxide versus sulfide, that’s important to note to that story. Oxide versus sulfide. And they just made an acquisition with Copper North on the Carmack deposit. There’s some good stuff going on there on GXC!
Bob Moriarty: You said something important for readers to note. Oxide versus sulfide copper. Oxide is so much cheaper to process. If you have an oxide copper deposit you could throw pieces of iron scrap in a little pond, and put in some acid and the copper will plate the iron. Copper moves easily to iron. It has an affinity to iron so it’s very, very, very cheap and easy to permit and to actually process. If you’ve got sulfides, you’ve got a float this stuff, and the old process is a lot more complicated, it’s a lot more expensive. Oxide silver projects and they’re not the only one. Keith Barron’s got an oxide silver project in Ecuador and Peru. My preference is always is an oxide deposit.
Maurice Jackson: Check our exclusive interview recently with Granite Creek Copper published on Streetwise Reports: (CLICK HERE).
And again, some brownfield plays, all of the Metallic Group companies are brownfield plays in good mining jurisdictions, which is important to note because a lot of the copper companies are not.
All right, let’s go to Saskatchewan and visit Tim Termuende of where they just had a breaking news release on the Fisher Project where SSR just announced a 60% earning interest in a joint venture on the Fisher Project, and that also starts the clock one year from today on an additional 20% interest with $3 million in cash. And keep in mind here that Taiga retains a 2.5% net smelter returns royalty on the Fisher Gold Project, which is along the Trans-Hudson Corridor. It’s loaded with potential, in an area that just hasn’t had much attention due to the laws there in the past. . (TGC:CSE; TGGDF:OTCBB)
Bob Moriarty: It’s totally off subject, but it’s a good project. That deal, by the way, is an exceptional deal, because Taiga is getting $800,000 reimbursed, and will get another $3 million handed to them a year from now. Do you remember what the original name of SSR was?
Maurice Jackson: Oh, it slips my mind right now.
Bob Moriarty: Silver Standard Resources.
Maurice Jackson: That’s it.
Bob Moriarty: Silver Standard was one of the greatest stories of the early 21st century because they had invested in dozens of silver projects, they were picking up ounces of silver for two and three cents an ounce. In the bull market that ran from 2001 until 2008, companies were getting $1, $2, $3 an ounce. Silver Standard made out like a bandit. And some bozo came up and said, “We need a better name.” So SSR stands for Silver Standard Resources. They took one of the greatest names in mining and they turned it into. God, I hope they fired that guy.
Maurice Jackson: Check out our interview with Tiaga Gold on Streetwise Reports: (CLICK HERE).
Well, one more little caveat to the deal as well is that there will be no exploration costs here for Taiga, which’ is a spin-out of Eagle Plains, I know they’re a partner of 321 Gold and Tim Termuende there. But Taiga has implemented the concept of a project generator, brought in a joint venture partner, that joint venture partner is going to do all the drilling, at no cost to the shareholders. It’s a good business acumen.
Bob Moriarty: And the stock is especially cheap.
Maurice Jackson: All right, let’s go visit Judson Culter, at the Cabin Lake Gold Project. They just announced some drill results where they twinned a historical Cabin Lake Gold Project there. (ROVR:TSX.V; ROVMF:OTCQB)
Bob Moriarty: This is one of those interesting stories that you need to pay attention to very closely. They haven’t discovered anything, but what they have done is they have duplicated what they believe was there. Rover has gone from a historical resource into a real resource. They had 22 meters of about 8 grams of gold. Eight-gram gold is worth about $440. So, $440 times 22 meters is great. Rover Metals has a market cap of under $6 million.
To have those kinds of numbers, they duplicated what they believed was there. There were twin holes. This is not a new exploration. They’re not step-outs, they’re not in-fills, they’re twinning what they believe was there. But what they believe was there was accurate, and now they’re going to go into phase 2 program in early 2021. They’re going to start adding ounces. When you got a gold company worth six million bucks, that’s pretty damn cheap.
Maurice Jackson: Rover is under 10 cents right now. This is a company to definitely take a look at. And again, it’s Rover Metals, Judson Culter. And the symbol is ROVR.
Check out our interview with Rover Metals on Streetwise Reports: (CLICK HERE).
And onto our last company, how about Shawn Khunkhun and the work he is doing at Dolly Varden Silver Corp. (DV:TSX.V; DOLLF:OTCMKTS), what can you share with us?
Bob Moriarty: I love Dolly Varden. Dolly Varden, some company names are just great names. Dolly Varden was one of the greatest silver mines in Canadian history. Dolly Varden Silver is up in northern BC. They are surrounded by majors and mid-tier companies. I believe someone is going to have to do a deal with Dolly Varden, and I think it will be very favorable for Dolly Varden shareholders. Now, whether Dolly Varden takes somebody else’s project over, or somebody does a deal with Dolly Varden, I think they’re going to do very well.
Now, here’s how you can make a lot of money. I’ve said it 100 times, and you’re going to hear it 100 times more, buy things when they’re cheap, sell them when they’re expensive. In March, when everything crashed, Dolly Varden got down to 16 and a half cents. In August, when silver and gold topped, it got up to $1.17. So you had about 700% increase. If you weren’t smart enough to buy it when it was cheap, nothing changed about the company. Just because some market panics, doesn’t mean you have to panic. You could have made this up 100%. It has corrected. That is a healthy thing. It is not a sign of, “Oh my god, they’re dumping silver, it’s a conspiracy.” That’s bull. Stocks go up and stocks go down. Stock went from 16 and a half cents to $1.17, then it corrected. It’s 84 cents now, that’s a healthy thing. It is ready to move higher.
Maurice Jackson: In all fairness, we forgot to reference Granite Creek Copper. They were at three and a half cents and jumped up to 17 cents. So three and a half cents, I want to say it was May, and they’ve recently reached 17 and a half cents. These are the companies we’ve been sharing with you. Bob and I have shared the same names. It seems like the thesis and price don’t seem to match for somebody. They sell at the wrong time or they buy at the wrong time. Listen to the interviews and just listen to what the gentleman just shared. He said, “Buy low and you sell high.” It’s that simple. And we’re looking for some type of additional narrative to qualify why we sold at the wrong time or bought at the wrong time.
And I do want to share, I forgot to reference this as well, ladies and gentlemen, I’m going to be doing an interview exactly in about an hour with Taiga Gold and Tim Termuende, so look forward to that interview right after this interview. And last week, we just interviewed Rover Metals, and the week prior, NV Gold. So take a look at our website. All those interviews are there, and, Bob, I do appreciate the fact that you share them with your subscribers as well.
In closing, give us any last parting words. My favorite question always is, what keeps you up at night, and what did I forget to ask? So I’ll leave that to you, sir.
Bob Moriarty: One other thing that I do want to comment on. I think that if you buy ‘Nobody Knows Anything’ and or Basic Investing in Resource Stocks, depending on whether you’re in Canada or the UK or France or the United States, it’s like $25 bucks. If you cannot afford 25 bucks to buy both of those books, you have no business in resource stocks. They are good books. They give excellent advice. Don’t believe me, read the hundreds of reviews, including a lot of people who say they were the best books on investing they’ve ever read.
Maurice Jackson: It’s interesting you reference that. And I second that. I do not benefit financially from anyone purchasing these books, but I want to foot stomp, just as I referenced Common Sense 2.0, of which I have benefited financially and intellectually. My kids read both of the book you just referenced. My twins are 10, and we were discussing the word contrarian. It seems like for some reason it resonated with them. The mass psychology of how we were on the interstate last night and there was an accident.
They were referencing how everybody has to stop and stare, and how the crowd just emulates one another, why not just take the exit and go a different route? It seems like that just resonates with them, and when they talk about contrarian, they reference Nobody Knows Anything. That was just last night. And here you are referencing it. Don’t follow the crowd, go a different path.
Bob Moriarty: Well, there are things that we know, we just don’t know that we know. We’ve got to ask the right questions. You don’t have to know anything about resource stocks, but you can make money if you can learn to think for yourself and ignore everybody. Less, it’s your money. If I get really bad advice, and you follow it, it doesn’t hurt me, it hurts you. If I give good advice, I don’t expect a commission. You’re making decisions for your future. And if you think that there’s somebody you can go to and you can pay money and everything he tells you, it’s going to be correct, it ain’t going to happen. I’ve been looking for that guy for 70 years, and I can’t find him.
Maurice Jackson: Well, add on 45 years here. So, yeah, combined years, we haven’t found him. I trust that you’re one of the most reliable, trusted sources that I can find out there, so thank you for all your time and your expertise. And Bob, if somebody wants to find out more about your work, please share the website address.
Bob Moriarty: It’s 321 Gold and 321 Energy. We’re fairly quiet on 321 Energy right now because nobody cares about energy. But the central banks of the world have pretty much murdered fiat currencies, and that’s not a good thing. It’s a bad thing. But you can buy an insurance policy on government stupidity, even as you observe the stupidity. And that’s all gold, silver, platinum, and rhodium stock bar. They’re just a bet on government stupidity.
Maurice Jackson: Ladies and gentlemen, if you’re looking to purchase any gold or silver or platinum or palladium or rhodium, give me a call at 855-505-1900 or you may email [email protected]. And again, that is physical delivery to your house.
Bob Moriarty of 321 Gold and 321 Energy. Thank you for joining us today on Proven and Probable, wishing you the absolute best, sir.
Bob Moriarty: Very good. Thank you. It’s been fun.
1) Maurice Jackson: I, or members of my immediate household or family, own shares of the following companies mentioned in this article: , Novo Resources, Taiga Gold, Granite Creek Copper, Group Ten Metals, Metallic Group of Companies, Metallic Minerals, NV Gold, Rover Metals and Dolly Varden. I personally am, or members of my immediate household or family are, paid by the following companies mentioned in this article: None. My company has a financial relationship with the following companies mentioned in this article: , Novo Resources, Taiga Gold, Granite Creek Copper, Group Ten Metals, Metallic Group of Companies, Metallic Minerals, NV Gold, Rover Metals and Dolly Varden are sponsors of Proven and Probable. Proven and Probable disclosures are listed below.
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JPMorgan Turns Positive On Crypto, Sees “A Bullish Outlook For Bitcoin Into Year-End”
JPMorgan Turns Positive On Crypto, Sees "A Bullish Outlook For Bitcoin Into Year-End"
The launch of the first Bitcoin ETF, BITO, even if based…
JPMorgan Turns Positive On Crypto, Sees “A Bullish Outlook For Bitcoin Into Year-End”
The launch of the first Bitcoin ETF, BITO, even if based on futures, was the culmination of seven years of anticipation for bitcoin bulls and it certainly did not disappoint: the leaks and the actual news propelled the cryptocurrency to a new all time high above $66,000 (with some profit-taking to follow).
Yet despite the clear impact on the price of bitcoin, which has more than doubled from its July lows, not everyone is uniformly bullish on the impact of the first bitcoin ETF. As JPM’s Nick Panigirtzoglou writes in his latest widely-read Flows and Liquidity note, “the bulls are seeing this ETF as a new investment vehicle that would open the avenue for fresh capital to enter bitcoin markets” while the bears “are seeing the new ETF as only incremental addition to an already crowded space of bitcoin investment vehicles including GBTC in the US, ETFs listed in Canada since last February which have been already accessible to US investors, regulated (CME) and unregulated (offshore) futures, and plenty of direct investment options using digital wallets via Coinbase, Square, Paypal, Robinhood etc.”
For its part, JPM – not surprisingly – falls into the skeptics’ camp (we say not surprisingly because for much of 2021, the largest US bank has been publishing bearish note after note, as we have repeatedly detailed, urging clients to ignore the largest cryptocurrency and if anything, to take profits. In retrospect, this has been a catastrophic recommendation for anyone who followed it).
According to the JPMorgan quant, the launch of BITO by itself will not bring significantly more fresh capital into bitcoin due to “the multitude of investment choices bitcoin investors already have. If the launch of the Purpose Bitcoin ETF (BTCC) last February is a guide, as seen in Figure 1, the initial hype with BITO could fade after a week.”
Here, once again, JPM’s superficial “analytical” approach shines through and we are confident that Panigirtzoglou, who has been dead wrong about bitcoin for the past year, will once again be wrong in his take on BITO. Instead, for a much more nuanced – and accurate – view of the daily happenings in bitcoin ETF land we recommend Bloomberg’s inhouse ETF expert, Eric Balchunas who points to what is clearly an unprecedented, and rising demand for crypto ETF exposure (one can only imagine what will happen when Gensler greenlights an ETF based on the actual product not spread-draining and self-cannibalizing futures). Indeed, as Balchunas pointed out on Thursday, BITO – which is “maybe too popular for its own good”, has already “used up 2/3 of its total bitcoin futures position limits, only about 1,700 contracts ($600m) left bf it hits 5k total. Could hit in next day or two.”
$BITO has already used up 2/3 of its total bitcoin futures position limits, only about 1,700 contracts ($600m) left bf it hits 5k total. Could hit in next day or two. Great story on this from @kgreifeld https://t.co/xcVkw7Nbyl
— Eric Balchunas (@EricBalchunas) October 21, 2021
But what about the ramp in bitcoin prices in recent weeks? Surely the anticipation of the ETF launch was the main catalyst? Well, according to JPM the answer is again no, and instead the JPM strategist writes that “while we accept that bitcoin momentum has shifted steeply upwards since the end of September, we are not convinced the anticipation of BITO’s launch was the main reason.”
Instead, as the Greek quant explained before (see “JPMorgan: Institutions Are Rotating Out Of Gold Into Bitcoin As A Better Inflation Hedge“) he believes that rising inflation concerns among investors “has renewed interest in inflation hedges in general, including the use of bitcoin as such a hedge.”
As he further explains, “Bitcoin’s allure as an inflation hedge has been strengthened by the failure of gold to respond in recent weeks to heightened concerns over inflation, behaving more as a real rate proxy rather than inflation hedge.” This is actually correct, and as we have shown previously gold indeed correlates much more closely to real rates that nominals, although in recent months, even real rates suggest that gold prices should be notably higher, perhaps confirming ongoing precious metal price suppression of the kind we have previously documented to be emanating from the BIS.
In any case, JPM also updates a chart we showed previously, the shift away from gold ETFs into bitcoin funds, which was very intense uring most of Q4 2020 and the beginning of 2021, has gathered pace in recent weeks.
In turn, by putting upward pressure on bitcoin prices, JPM argues that this shift away from gold ETFs into bitcoin funds likely triggered mean reversion across bitcoin futures investors which had reached very oversold conditions by the end of September. This is shown in Figure 3 via the bank’s position proxy based on CME ethereum futures. Looking at Figure 3, JPMorgan now claims that “there had been a steep decline in our bitcoin futures position proxy” which pointed to oversold conditions towards the end of September triggering a bitcoin rebound. This rebound appears to have accelerated over the past days ahead of BITO’s launch with the blue line in Figure 1 fully recapturing all the previous months’ unwinding. In other words, the price ramp into the bitcoin ETF launch was just a coincidence. Yeah right, whatever.
Where JPM is however right, is in its assumption that a significant component of bitcoin futures positioning encompasses momentum traders such as CTAs and quantitative crypto funds. Previously, the bank had argued that the failure of bitcoin to break above the $60k threshold would see momentum signals turn mechanically more bearish and induce further position unwinds; it also claims this has likely been a significant factor in the correction last May in pushing CTAs and other momentum-based investors towards cutting positions. At the end of July, these momentum signals approached oversold territory at the end of July and have been rising since then in reversal to last May-July dynamics. The shor-tterm momentum signal has exceeded 1.5x stdevs, a z-score that we would typically characterize as overbought for other asset classes but still below the exuberant momentum levels of January 2021.
So with both With Figure 3 and Figure 4 pointing to exhaustion of short covering and more crowded bitcoin positioning in futures, Panigirtzoglou sees bitcoin relying more on other flows outside futures to sustain its upswing. To him, this elevates the importance of monitoring Figure 2, i.e. the importance for the current shift away from gold ETFs into bitcoin funds to continue for the current bitcoin upswing to be sustained.
In our opinion, the main problem for bitcoin over the previous two quarters had been the absence of significantly more fresh capital as shown in Figure 5 and Figure 6. Figure 5 shows our estimate of retail and institutional flows into bitcoin with an overall downshift in Q2 and Q3 of this year. Similarly, Figure 6 shows that the previous steepening in the pace of unique bitcoin wallet creation has largely normalized returning to pre-Q4 2020 norms, again implying an absence of significantly more fresh capital entering bitcoin.
And yet, despite this latest (erroneous) attempt to downplay the impact of the bitcoin ETF, which JPMorgan says “is unlikely to trigger a new phase of significantly more fresh capital entering bitcoin”, by now too many JPM clients are invested in the crypto asset as Jamie Dimon (whose opinions on bitcoin have been an absolute disaster for anyone who traded on them) recently admitted, and so while tactically staying bearish on the impact of BITO, not even JPM’s house crypto “expert” can objective stay bearish in general, and as he concludes, “istead, we believe the perception of bitcoin as a better inflation hedge than gold is the main reason for the current upswing, triggering a shift away from gold ETFs into bitcoin funds since September.”
So with Bitcoin now perceived as the best inflation hedge among non-traditional assets, Pnaigirtzoglou concludes that this gold to bitcoin flow shift “remains intact supporting a bullish outlook for bitcoin into year-end.”
Emerita Sees Continued Success In Spain
Emerita Resources Corp (TSXV:EMO) continues to report excellent results from the Infanta drill program at its Iberia Belt West Project
The post Emerita…
Corp ( ) continues to report excellent results from the Infanta drill program at its Iberia Belt West Project in Spain, which hosts three previously identified high-grade deposits: La Infanta, Romanera and El Cura. These are all open for expansion along strike and at depth.
On October 22, the company announced assays for the first step-out drill hole from the Infanta drill program and also the final in-fill drill holes. The significance of the in-fill program was to verify the historical drill results. They will now enable a proper 3D modelling of the deposit and will also provide additional data to be used for future metallurgical testing.
At Infanta, the step-out was conducted to expand the outer perimeter of the deposit, and the in-fill drilling was intended to confirm historical drill data within Infanta’s known mineralization zone. Step-out drill hole IN018 was drilled 40 metres to the west of the historical limits of the deposit and intersected 8.2 metres with a grade of 2.5% copper, 8.7% lead, 17.3% zinc, 223.5 g/t silver and 0.5 g/t gold. A second step-out hole was drilled 50 metres to the west of hole IN018 and intersected two zones of massive sulfide but assays have not been returned yet.
In-fill drill hole IN014 intersected 5.7 metres of 2.4% copper, 7.3 %lead, 13.4% zinc, 225 g/t silver and 0.6 g/t gold. The ongoing geophysical survey, which was suspended along with other exploration activities for the region’s hunting season, is expected to resume by the end of October.
Emerita plans to have five drill rigs operating by the end of 2021 and will include the Romanera deposit, El Cura, and other targets identified by previous geophysics work. The two drills currently on site will now focus on step-out drilling to increase the size of the deposit.
Emerita also recently provided investors with an update on the legal proceedings for the Aznalcóllar Project and the company is expecting a ruling by the Administrative Court of Andalucia in Emerita’s favour in the near future.
The Aznalcóllar Zinc Project is located in the prolific Iberian Pyrite Belt in the Andalusia region of southern Spain and is considered to be one of the world’s largest and most productive volcanogenic massive sulfide (VMS) structures. It has been mined for over a thousand years and has produced over 2000 million tons of ore.
Aznalcóllar is considered to be one of the world’s top undeveloped zinc deposits, and the project is essentially a world-class pre-production development asset. Here, the main deposit is referred to as Los Frailes, which contains a historical open pit mineral resource. Two other deposits exist on the property as well, which require further development. The Los Frailes mine operated during the 1990s until it closed due to a combination of tailings-related environmental failure and low metal prices.
After the Aznalcóllar site was rehabilitated, the government initiated a public tender process for the rights to the project and it was initially awarded to another major mining company, however Emerita believed that their bid was superior. It subsequently requested an investigation into the tender process for the property and filed a lawsuit in 2015.
In early 2021, the Spanish court concluded that the process was fraught with corruption, fraud and other malfeasance and rescinded the rights that were awarded and criminal charges were sought for the perpetrators and their enablers. In July 2021, a Spanish judge issued additional criminal indictments against the mining company and government officials who participated in undermining the public tender process for the project.
Under Spanish law, if a crime was committed during the tender process, the rights are then awarded to the next best qualified competing bid, which in this case was Emerita. Subsequently, Emerita has been waiting for the Administrative Court to conclude the process to formally award the rights to the Aznalcóllar Project to the company, which brings us to present day.
The company is planning to develop the deposit into an underground mining operation focused on mining the high-grade zones, which are estimated to contain 20 million tonnes at a grade of 6.65% zinc, 3.87% lead, 0.29% copper and 84 ppm silver. As a requirement of the project’s public tender process, Emerita submitted comprehensive. engineering, environmental and water management studies to the government, and now the company is expecting to be given the green light to proceed developing the Aznalcóllar project into an eventual producer.
Emerita is well financed, having completed a $20 million bought deal private placement in July 2021. Emerita has 182.42 million shares outstanding and due to the recent increase in the Company’s share price, a market capitalization now of $556.38 million. Even so, barring any unforeseen negative developments regarding the legal issues,Corp still appears to be potentially undervalued relative to the potential value of the world-class assets it is developing.
Shares ofCorp last traded at $3.05.
FULL DISCLOSURE:is a client of Canacom Group, the parent company of The Deep Dive. The author has been compensated to cover on The Deep Dive, with The Deep Dive having full editorial control. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security.
Von Greyerz: Shortages & Hyperinflation Lead To Total Misery
Von Greyerz: Shortages & Hyperinflation Lead To Total Misery
Authored by Egon von Greyerz via GoldSwitzerland.com,
At the end of major…
Von Greyerz: Shortages & Hyperinflation Lead To Total Misery
At the end of major economic cycles, shortages develop in all areas of the economy. And this is what the world is experiencing today on a global basis. There is a general lack of labour, whether it is restaurant staff, truck drivers or medical personnel.
There are also shortages of raw materials, lithium (electric car batteries), semi-conductors, food, a great deal of consumer products, cardboard boxes, energy and etc, etc. The list is endless.
Everything is of course blamed on Covid but most of these shortages are due to structural problems. We have today a global system which cannot cope with the tiniest imbalances in the supply chain.
Just one small component missing could change history as the nursery rhyme below explains:
For want of a nail, the shoe was lost.
For want of a shoe, the horse was lost.
For want of a horse, the rider was lost.
For want of a rider, the battle was lost.
For want of a battle, the kingdom was lost.
And all for the want of a horseshoe nail.
The world is not just vulnerable to shortages of goods and services.
Bombshells could appear from anywhere. Let’s just list a few like:
Dollar collapse (and other currencies)
Stock market crash
Debt defaults, bond collapse (e.g. Evergrande)
Liquidity crisis (if money printing stops or has no effect)
Inflation leading to hyperinflation
There is a high likelihood that not just one of the above will happen in the next few years but all of them.
Because this is how empires and economic bubbles end.
The Roman Empire needed 500,000 troops to control its vast empire.
Emperor Septimius Severus (200 AD) advised his sons to “Enrich the troops with gold but no one else”.
As costs and taxes soared, Rome resorted to the same trick that every single government resorts to when they overextend and money runs out – Currency Debasement.
So between 180 and 280 AD the Roman coin, the Denarius, went form 100% silver content to ZERO.
And in those days, the soldiers were shrewd and demanded payment in gold coins and not debased silver coins.
Although the US is not officially in military conflict with any country, there are still 173,000 US troops in 159 countries with 750 bases in 80 countries. The US spends 11% of the budget or $730 billion on military costs.
Since the start of the US involvement in Afghanistan, Pentagon has spent a total of $14 trillion, 35-50% of which going to defence contractors.
Throughout history, wars have mostly started out as profitable ventures, “stealing” natural resources (like gold or grains) and other goods–often due to shortages. But the Afghan war can hardly be regarded as economically successful and the US would have needed a more profitable venture than the Afghan war to balance its budget.
US HOPELESSLY BANKRUPT – NEEDS TO BORROW 46% OF BUDGET
The US annual Federal Spending is $7 trillion and the revenues are $3.8 trillion.
So the US spends $3.2 trillion more every year than it earns in tax revenues. Thus, in order to “balance” the budget, the declining US empire must borrow or print 46% of its total spending.
Not even the Roman Empire, with its military might, would have got away with borrowing or printing half of its expenditure.
TOTAL MISERY AS MR MICAWBER SAID:
As Mr Micawber in Charles Dickens’ David Copperfield said:
‘Annual income 20 pounds, annual expenditure 19 [pounds] 19 [shillings] and six [pence], result happiness. Annual income 20 pounds, annual expenditure 20 pounds ought and six, result misery.’
And when, like in the case of the US, you spend almost twice as much as you earn that is TOTAL MISERY.
Neither an individual, nor a country can spend 100% more than their earnings without serious consequences. I have written many articles about these consequences and how to survive the Everything Bubble
INFLATION IS HERE
The most obvious course of events is continuous shortages combined with prices of goods and services going up rapidly. I remember it well in the 1970s how for example oil prices trebled between 1974 and 1975 from $3 to $10 and by 1980 had gone up 10x to $40.
The same is happening now all over the world.
That puts Central banks between a Rock and a Hard place as inflation is coming from all parts of the economy and is NOT TRANSITORY!
Real inflation is today 13.5% as the chart below shows, based on how inflation was calculated in the 1980s
IMPLOSION OR EXPLOSION
The central bankers can either squash the chronic inflation by tapering and at the same time create a liquidity squeeze that will totally kill an economy in constant need of stimulus. Or they can continue to print unlimited amounts of worthless fiat money whether it is paper or digital dollars.
If central banks starve the economy of liquidity or flood it, the result will be disastrous. Whether the financial system dies from an implosion or an explosion is really irrelevant. Both will lead to total misery.
Their choice is obvious since they would never dare to starve an economy craving for poisonous potions of stimulus.
History tells us that central banks will do the only thing they know in these circumstances which is to push the inflation accelerator pedal to the bottom.
Based of the Austrian economics definition, we have had chronic inflation for years as increases in money supply is what creates inflation. Still, it has not been the normal consumer inflation but asset inflation which has benefitted a small elite greatly and starved the masses of an increase standard of living.
As the elite amassed incredible wealth, the masses just had more debts.
So what we are now seeing is the beginning of a chronic consumer inflation that most of the world hasn’t experienced for decades.
THE INEVITABLE CONSEQUENCES OF CURRENCY DESTRUCTION
This is the inevitable consequence of the destruction of money through unlimited printing until it reaches its the intrinsic value of Zero. Since the dollar has already lost 98% of its purchasing power since 1971, there is a mere 2% fall before it reaches zero. But we must remember that the fall will be 100% from the current level.
As the value of money is likely to be destroyed in the next 5-10 years, wealth preservation is critical. For individuals who want to protect themselves from total loss as fiat money dies, one or several gold coins are needed.
So back to the nursery rhyme:
For want of a
nail gold coin, the shoe was lost.
For want of a shoe, the horse was lost.
For want of a horse, the rider was lost.
For want of a rider, the battle was lost.
For want of a battle, the kingdom was lost.
And all for the want of a
horseshoe nail gold coin.
Gold is not the only solution to the coming problems in the world economy. Still, it will protect you from the coming economic crisis like it has done every time in history
And remember that if you don’t hold properly stored gold you don’t understand:
What happens when bubbles burst
You are living in a fake world with fake money and fake valuations
Your fake money will be revalued to its intrinsic value of ZERO
Assets that were bought with this fake money will lose over 90% of their value
Stocks will go down by over 90% in real terms
Bonds will go down by 90% to 100% as borrowers default
You lack regard for your stakeholders whether they are family or investors
You don’t understand history
You don’t understand risk
The 1980 gold price high of $850 would today be $21,900, adjusted for real inflation
So gold at $1,800 today is grossly undervalued and unloved and likely to soon reflect the true value of the dollar.
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