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Thursday Conversation - Dave Kranzler

27

Our old pal Denver Dave stopped by today for this entertaining and informative discussion. If you're interested in the precious metals and mining shares, you should be sure to give a thorough listen to this free, public podcast.

Yes, this podcast clocks in at 37 minutes but I promise you that it won't seem that long as you listen so please try to make it all the way through. We primarily cover just two topics but there's A LOT of good stuff in between that you don't want to miss. Those two primary topics are:

  • Why are the shares lagging in relative performance versus the metals and what will cause this to change in the weeks and months ahead?
  • What are the causes of the REPO/Liquidity/QE crisis and will these lessen or worsen going forward?

Thanks again to Dave for the generous donation of his time today!

TF

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Mickeylakedweller2
Oct 18, 2019 - 12:15pm

Von Greyerz

Tks, Heard it last weekend. At some point you can spend 40 minutes on these podcasts and learn very little new. Not a criticism as much as its my being in metals since 2003.

I am at the point where I would rather listen to music to relax. Even my choices of where to go for info--This site is a daily must for me even if I do not make a post.

lakedweller2
Oct 18, 2019 - 12:04pm

&Libero

I bought in when my wife read about the first discovery at 2;00AM right after the announcement. Bought when market opened. Got up about $500 early and am down to less than $50 gain. I hold it because it was a sign of interest in miners from her. I am waiting to see if they come across something exciting as the story is unique. If not, it has been an interesting hold.

Liberolakedweller2
Oct 18, 2019 - 10:26am

@lakedweller re Royal Nickel

Eric Sprott didn't like the Higginsville acquisition at all and the dilution of stock. But given what's happened these past weeks with these coarse gold megafinds, (and the low price from its highs earlier in the year), I doubt if he would be a seller.

This is the only stock that I jumped on board after being touted by turdville. I'm still at a loss, but will continue to hold.

Here's a link to that Mattis talk:

https://www.yahoo.com/gma/former-defense-secretary-gen-james-mattis-roas...

lakedweller2
Oct 18, 2019 - 10:22am

@mickey

I think Von Greyerz on King World News.

Mickey
Oct 18, 2019 - 10:16am

where was Von Greyerz featured

he is consistent in his views, has a horse in the race, his business, but seems level headed and knowledgeable on inner workings.

AGXIIK
Oct 18, 2019 - 10:05am

REPO DEMANDS HUNDRED BILLION DAILY; PAPER GOLD $280 B.

Listening to Von Greyerz this AM, he noted that the daily ETF and ETP trading volume is $280 billion; 800 times annual production. We've also heard the paper to physical gold trade is 500 to 1.

Those numbers, 800 and 500, are close enough to say that the absolute fabrication of AU trades in as insulting to the physical market and demand as it is to our intelligence.

It seems to me that the paper traders are like huge hoards of ducks*, floating placidly on the surface of the pond. Below the surface it's a frantic flailing of feet. Spook the ducks and it's a gigantic flurry of wings as the fowl leave the pond. The ducks have yet to be spooked but it will happen. Some ducks have already taken wing. The rest are cannon fodder. Even Elmer Fudd will bag a few mallards.

Remember when paper trading was 100 to 1? Now it's 500 to 1. What will it take for that to move to 2000 to 1, if for no other reason than price suppression. It is certain that the trade will become unprofitable eventually.

Compare this to the reconstituted REPO POMO QE paradigm that started barely 2 months ago. Things are going sideways really fast.

It's moving quickly towards $1 trillion. Bank leverage ranges from 10 to 1 to 100 to 1 on certain trades. When someone calls for cash, that breaks the system. A daily dose of $1 trillion will not be enough. Not nearly enough; but CGP will say it'll be just fine, still claiming it's just a wafer thin injection of capital while Mr Creosote explodes, splattering goo in every direction.

Note that there are many hedge funds, private equity firms and leveraged speculator businesses seeing runs on their cash. Emblematic of this is the recent collapse of the $5 billion Woodford fund; first gated, then shuttered then shut down. The first out got their cash. The majority will likely never seen their money.

A S Korean fund filed bankruptcy the other day and others have lost their entire leveraged capital base overnight. A few in China got bailed out; a few were sacrificed for the public good.

The lock up of these funds, some possibly doing so during the process of asking for REPO funds to stave off collapse; this lockup is going to continue AND increase dramatically as people fear their money will not be available. The first horse out of the burning barn gets scorched the least.

Once a trillion in REPO is printed without a keening cry of "STOP!", it'll be apparent to the few who can hear the screaming that the end of digital money printing is nigh. But not before the dual paradigms of digital gold trading hits 5000 to 1 and bank DIGIFIAT leverage is 1,000 to 1.

The bank runs will be as epic as they are unpredictable. That's happened hundreds of time in the last 500 years.

But the gold run will be something never seen in human history. The nature of the cataclysmic failing banks and runs will be global and affect all currencies. Only those with gold to balance the currency calamity will have a small chance of survival. That was the recent sentiment voiced by the Dutch National Bank, sitting on 600 tons of the yellow metal.

The connection between bank runs and gold runs is pretty simple once these channels become clearer. Central banks, countries, TBTF banks and wealthy individuals are already running to gold, buying every ounce out there.

These people are different from us. They have a legacy knowledge from the last 2,500 years that speaks to the eventual failure of all currencies that also sees the ascendance of gold and silver to make the market work again.

They also have their own 'old boy' network that works better than the internet. They talk. And what they are saying is

'Buy gold. And when you think you have enough, buy some more.'

*golden Mongolian horde, golden chinese ducks and a famous saying in cricket. Duck!

lakedweller2
Oct 18, 2019 - 9:53am

@Libero

My impression of Sprott on RNC has been wishy washy. He put money in it, but he gives the impression that he is waiting for more consistency in distribution of the gold. They hit these massive lumps of gold, but not much continuity of volume.

Before the first hit they were mining some other type of metal and were trying to sell the mine. Price has walked down since initial excitement. But... they have had several follow-up “hits” but I think Sprott likes ounces and not necessarily super grades over short distances. One of his stocks had a hole with 100 meters of about 1 g/ton, and he liked that more....it appeared.

My impression of his past comments on RNC.

matt_
Oct 18, 2019 - 9:24am

A good news story

Sorry it isn't metals related, but it shows the younger generation isn't all bad. This is a high school senior with autism who has been singing the national anthem at the school's games. Watch what happens when she becomes too emotional to finish her final home game performance:

https://13wham.com/news/local/fairport-senior-becomes-emotional-singing-...

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Ned Bradenstreber
Oct 18, 2019 - 7:21am
Clarkii Stomias
Oct 18, 2019 - 1:04am

Junior Miner for Sprott - Nighthawk NHK.TO

Can't remember if this is one you've asked him about, but if not, could you please ask him about Nighthawk Gold Corp? It's sold off a ton in the last month and they have barely begun to report their summer drilling results.

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