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Sam Lawrie: The Devastating Effects of Financial Black Swans

Sam Lawrie: The Devastating Effects of Financial Black Swans

Palisades Gold Radio:  9-6-2023

Tom welcomes Sam Lawrie from Adams Bullion to the show. Sam discusses his background in the finance industry and the potential risks associated with leveraged trades.

He describes leverage as like a Ferrari, it can be a lot of fun but you can also wrap it around a tree. He examines the consequences after the Swiss central bank broke the peg between the Swiss Franc and Euro, despite traders applying risk management techniques.

He reflects on the United States still acting as the centerpiece of the world's financial market, and the possible risks of a major sell-off in treasuries, resulting in a potential global financial crisis.

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He acknowledges that rules in the financial market can be changed at a moment's notice, another risk investors should be cautious of. The long-term Keynesian policies by central banks have resulted in rising inflation which may ultimately lead to a lack of confidence in a country's currency.

Commodity-producing countries may be in a better position when compared to consuming countries, however, both Australia and Canada have seen issues in their asset bubbles and in particular there housing markets.

He believes silver is lagging due to dollar strength and has the potential to outperform at some point.

Sam believes the Australian dollar is likely to remain weak, aiding in the value of gold in the currency.

Time Stamp References:

0:00 - Introduction

0:44 - Sam's Background

 6:18 - Black Swan Events

10:52 - Broker Failure Risk

13:12 - Forex Carry Trades

19:08 - Japan's Approach

22:00 - Treasury Markets

24:10 - Banks & Failures

29:04 - Rates & Rebalancing

31:39 - End of the Road

35:55 - Inflation Outlook

39:22 - Gold Vs. Silver

42:53 - Metals Undervalued

45:27 - Incentives & Thieves 4

8:08 - Bullion & Activisim 4

9:49 - Wrap Up

https://www.youtube.com/watch?v=9LcU2K8RQTI

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