The BRICS are Changing the Landscape for Gold Investors
Peter Grandich: The BRICS are Changing the Landscape for Gold Investors
Palisades Gold Radio: 7-20-2024
Tom welcomes returning guest Peter Grandich from Peter Grandich and Company for a discussion on current economic risks and market trends.
Grandich expresses concern over the markets' failure to acknowledge major issues. He argues that gold markets show some recognition of these issues, while the stock market remains complacent.
With experience through three financial crises, Grandich warns that this situation is more severe due to political division and lack of meaningful solutions from Congress or the Fed.
He criticizes the Fed's role in exacerbating debt through money creation during the pandemic.
Peter discusses societal shifts towards consuming beyond means and their impact on happiness, the stock market, and the economy.
He traces these trends to the influence of television and the internet, which have convinced people that they need more money for happiness. They note that some of the happiest people have little or no wealth while some wealthy individuals are unhappy.
He criticize politicians' approach to economics compared to household management, resulting in societal issues like increasing consumer debt and a culture of living beyond it's means.
Grandich discusses potential risks to the markets, including political instability leading up to the U.S. election and the impact on foreign investors divesting from American securities.
He emphasizes gold's importance as a store of value in the new economic structure and advocates for capital preservation due to perceived market overvaluation.
Grandich encourages individuals to build a "financial ark" through self-sufficiency, preparing for potential financial hardships, and diversifying portfolios with stocks, bonds, and gold. He also mentions the junior resource market as an area of potential undervaluation for companies searching for metals and base metals.
Time Stamp References:
0:00 – Introduction
0:31 - Markets & Uncertainty
2:12 - Fixing Things & Politics
5:40 - Exponential Debt Crises
8:30 - Mass Media & Marketing
10:57 - Historic Comparisons
13:55 - Fed Perception/Reality
16:58 - Dot Plots & Fed Cuts
19:26 - Political Turmoil Risk
23:59 - BRICS Alliance & Gold
28:20 - Building a Financial Ark
32:19 - Defining Bubbles
35:56 - Anti-Bubble Opportunities
38:52 - Thoughts on Uranium
41:27 - Base Metals & Miners
46:35 - Crash Scenarios & Gold
49:20 - Wrap Up