Only This Can Save You as Global Sovereign Debt Bubble Bursts, System Collapses
📞 ACT NOW, BEFORE IT’S TOO LATE: Jeff Clark stresses that the economic system is on shaky ground, and gold is your best defense. As the global debt bubble looms, protect your future by investing in physical gold and silver. Learn how today: Schedule Strategy Call or call 866-706-9061
“You must own gold in this environment. And we’re going to own it until there is an honest, sound monetary system,” says Jeff Clark, editor of Paydirt Prospector. In an interview with Daniela Cambone, Clark emphasizes the importance of owning physical gold as a hedge against systemic risks until a stable monetary system is established. “We’re going to be overweight gold, meaning 20% of your portfolio in physical metal stored outside of your home until the monetary system is revamped.” While Jeff is bullish on gold and silver, he advises against going all-in on one asset class. A balanced portfolio is important to mitigate risks.
CHAPTERS:
00:00 Gold
3:35 Bullish for gold
4:45 Jeff’s interactions with gold
8:03 Bitcoin
9:00 Gold standard
10:05 Silver
12:08 S&P
13:44 Copper
15:14 Junior miners
21:50 Physical gold
22:53 How can investors better prepare?
TRANSCRIPT FROM VIDEO:
00:00
Gold prices are on fire, breaking through the $2,500 mark. For those of you waiting for a pullback on gold prices to buy or to start accumulating gold as part of your wealth preservation strategy, well, I’m here to tell you, you might not get that pullback. There’s no time better than now to start your game plan and strategies surrounding gold and silver investing. That’s why it’s critical that you make an appointment.
00:29
with us at ITM Trading. You can easily do so. There’s a link below in the video description where you can book a Calendly with one of my colleagues and they will do all the work for you. They’re going to talk you through and walk you through a wealth preservation strategy centered around owning physical gold and silver. Do not waste any more time. Gold’s just going to keep skyrocketing here. On that note, let’s get to today’s video.
01:05
With gold prices breaking through $2,500 an ounce, the metal keeps defying expectations. So where does this analyst see things headed and what does he see in store for the mining stocks? And of course, I’m going to ask him silver. Jeff Clark, the man, the myth, the legend, the man behind our paid dirt prospector. Yeah. Welcome back to the Daniela Cambone show. Oh, it’s great to be back with you, Daniela. Thanks for having me. Lots to talk about.
01:35
Yeah, so much to talk about. I mean, how have things been for you first and foremost? Oh, good. Yeah, I’m still, you know, in a personal note, so recovering from the back surgery, but that’s doing okay. I’m still able to travel and everything. But, you know, I really love what I do. So I wake up every morning and look at what companies I’m going to be writing about. So it’s a lot of fun for me. And, you know, more importantly, I think it’s not just fun, but we’re in the right place at the right time.
02:04
with the right metal, right? So I think it’s gonna be fun over the next few years for us. So let’s talk about that, right? Because look, it’s more fun to work in this gold environment with these prices, Jeff, but a lot of folks are, I get stopped, hey Daniela, I wanna get into gold, but they’re almost afraid here at these levels because they’re like, what’s gonna happen? Could we go higher? Is there gonna be a pullback? I mean, how do you see things?
02:32
That’s a great question. And the answer to that is there are always surges in the middle of a bull market, and there are always corrections after those surges. In fact, in the last bull market, Daniela, I documented all of those and there were something like 18 surges of over 21% in that last gold bull market from 2001 to 2011. And there were 20 corrections of 6% or greater.
03:02
So it’s the very proverbial two steps forward, one step back for the gold market, just like a lot of assets. But the point for now is we’re in a global market and therefore you wanna buy on dips and you may wanna take profits on certain companies if there’s a big run up or a surge. But this is very common. So a 6% correction would not be abnormal at all. Of course, we don’t know when that’s gonna take place.
03:30
But that’s the average of what we’ve seen in the past, at least.
03:36
How much does it matter because I know we’ve spoken about Powell and the Fed and we know Jackson Hole just wrapped. But we saw gold rallying in a rising rate environment. Now that rate cuts are on the table, is this a bullish sign? Oh, absolutely. At least based on history. And once he made those comments, gold did rise that day and silver. So yeah, we’re entering an easing phase.
04:04
Gold traditionally performs well during those easing phases, even if there’s a recession, even if there’s a stock market correction, even if there’s a stock market, a bear market in the broad stock market. So there’s a lot of reasons to be bullish and that’s just one of several many reasons that gold could really ignite here. So there’s just so many vulnerabilities surrounding us that…
04:33
You must own gold in this environment. And we’re going to own it until there is an honest, sound monetary system. That’s how long we’re going to hold it. Well, and then we don’t let it go then.
04:48
It depends on what the monetary system is at that time. You always want to have some gold in your portfolio. But what I’m saying is that if gold goes to five thousand dollars or ten thousand dollars and all of a sudden the system breaks down any more honest sound, monetary system is put in place. That’s asking a lot of politicians for sure. But if that takes place, perhaps you don’t need to own as much gold. That’s my point.
05:16
We’re going to be overweight gold, meaning 20% of your portfolio in physical metal until the monetary system is revamped.
05:27
How close are we to that reality for you, of that becoming a reality? When I started with Doug Casey’s firm way back in the day, that was a big topic then. We talked a lot about it. The impression I think we gave, which was incorrect, is that we were on the precipice of it. That has not happened. We’re still talking about it. We’re still talking about de-dollarization.
05:55
Big topic, it’s gonna happen, but it’s not happening as quick as people think. And so I’m not really worried about the timing of it. I just know that as a citizen of this country, meaning the US, and as an investor, I wanna own enough gold to get through whatever that transition period looks like. So we don’t know what it’s gonna look like, we don’t know what it’s gonna look like when we come out the other end.
06:23
but you have to own physical gold to get through that. That’s the point for now. How did you come to that realization, Jeff? I think I’ve known you, I don’t even know how many years now and I don’t think I’ve ever asked you this, but how did it dawn on you? Because we all have that moment. I mean, we weren’t taught gold, at least I wasn’t taught about gold in school. I don’t know about you, Jeff, but none of us were taught gold in school. So unless you went to a special school, I don’t know of. How did you come to that realization like, hey, yeah, gold’s the only thing that really makes sense here?
06:54
It’s based on fiat currency. It’s based on the devaluation of that fiat currency for the first time in world recorded history. All currencies in the world are fiat. We’ve never been in that position before. The Fed constantly dilutes our currency, the purchasing power, everybody knows this, of our dollars have decreased dramatically just in the last 50 years, let alone since we went off the gold standard. So
07:24
You know, I think it starts there and it’s going to end there as well. So it’s, you know, I was taught to own gold. In fact, my grandfather bought one of the very first gold eagles that was manufactured back in 1987 by the U.S. Mint. He passed it on to me. He’s in minor heaven now, but he passed it on to me. He’s one of the very first ones. And so there’s a lot of lessons there that I was taught about real money. So.
07:52
It comes down to owning real money that can’t be diluted and devalued and debased.
08:00
know, with the advent of Bitcoin, did you contemplate that as a solution? Oh, that’s a fair question. I don’t own any Bitcoin any longer. I did and made a little money, but not as much as some people. But I’m not quite ready to go full electronic yet. I do worry about government involvement into the Bitcoin sector, you know, trying to control it. If there’s some
08:29
you know, make Bitcoin a currency that you can go to the grocery store and buy with. I can see the government stepping in and putting a lot of restrictions on that. They may not ban it, let’s hope they don’t, because it is an earmark of freedom. That’s the basis of Bitcoin, in my opinion. But I do fear what the government could do, and therefore I don’t wanna be overweight Bitcoin just at this particular point in time.
08:57
Do you see a return to some sort of gold standard happening where the dollar is backed by gold?
09:05
That’s a possible solution. That’s a possible outcome. There’s one of several ways this could go We could go to some kind of commodity backed currency We could go to a gold backed currency like we’ve done before we could go to a gold silver one the US Not a lot of people recall is that was on a gold silver bimetallic standard way back in the day we could go to a Multilateral system we could go to
09:34
The yuan backing it There’s a number of ways this could play out a gold standard being one of them that would be a more honest system Because the idea that you can’t print and spend more than what the gold value is of the currency that you have So that would make politicians more honest We’ll see if that actually happens
10:00
Jeff, are you as bullish on silver? I bring this up because I posted, I reposted a story about Samsung developing a new solid state battery. Can’t tell you the number of impressions that tweet got, but there’s so much interest in that story, how this could be a game changer obviously for silver. What are your thoughts on, on, well, how much of a game changer that would be if it does come true and whether you’re bullish silver?
10:31
Oh, heck yeah, I’m bullish silver. But as far as that Samsung article, yes, if that actually develops and comes to fruition, the point there is that those batteries are gonna require more silver than the current batteries that are being made. I don’t remember the exact numbers, but it’s a significant amount more silver. When you combine that with the demand in solar, which…
10:57
You know, I remember some analysts predicting five years ago that solar was going to peak and drop off, and the exact opposite has happened. And there’s no let up in that we’re continuing to do that. And remember, those panels, solar panels don’t last forever. So they have to be replaced and recycled. And so that requires more silver to come into the system. And you have, you know, technologies developing now and a lot of those technologies, those scientists are realizing that
11:27
silver is the best metal for solar. And so they’re expanding their base and what they’re manufacturing. One example is the dual sided, you know, solar panel that’ll adjust depending on the sunlight of the day to capture more. So you need silver on both sides of those panels. So yeah, I’m very bullish on silver. And I think your audience knows silver.
11:56
historically has outperformed gold in bull markets. So if we’re in a bull market, we can expect silver to outperform gold, at least from a historical standpoint. What do you tell the folks, because in the gold and silver world, you know there’s some disgruntled people who are expecting much bigger performance from the metals, who say they listen to certain pundits, telling them not to get into the S&P, that the S&P was gonna crash, the crash is.
12:25
not happen, S&P making higher highs, and they were just waiting for commodities to take off. What do you tell those folks? I think you want to have some balance in your portfolio. You don’t want to be like me, all into gold and mining stocks. Having some balance is appropriate and probably advisable. There’s that.
12:54
I think the timing of this is that commodities, gold, and especially silver are still undervalued as a group relative to other asset classes, including the S&P, the NASDAQ, the Dow, foreign stock exchanges, all of that. So you have a big imbalance in that ratio. If you ratio those things out, gold and commodities are very, very low. There’s many people that have documented this.
13:23
It doesn’t mean it’s imminent, but it does imply that a big, dare I say, super cycle could be coming here in terms of commodities and gold and silver. Do you like the critical metals? I mean, it could be argued silver is one of them, but do you like copper? Do you like the copper story? Oh yeah. I like the copper story. I like the silver story, obviously. But copper has a…
13:51
supply demand imbalance that is really going to come to fruition. We’re going to see that crunch, if you will, the next year or two, depending on what happens. If we get a recession, it might take a little longer. But but that’s a real thing electrification of the world, green energy of the world, they all require more copper. So the demand is going up and yet the supply is weak. It’s not growing. Now there was a surplus reported last month.
14:19
um in copper inventories but uh when you look at the trajectory of where demand is going and where supply is going uh they’re going in opposite directions and so you know within you know the next year or two i think we’re going to see some type of crunch again the timing depends on uh a recession because believe it or not the copper price has never risen in a recession never since the 1960s and so the copper price
14:49
it probably is going to fall in a recession. But again, you know, on my end, I’m not necessarily betting on the copper price as much as I am on companies that can, you know, push a project forward and make a material difference. So on that note, because I’ve known, like I said, I’ve known you a long time, and I’ve always said, Jeff’s just one of the more balanced level headed, I mean, you’ve never put out crazy projections.
15:15
You’ve always really been really level-headed when it comes to covering the metals. And I don’t think I’ve ever seen you so bullish or excited for the space. I mean, I saw what you tweeted. The fuse is lit here. Yeah. Well, I definitely don’t like making predictions. I remember, Daniella, we interviewed in the aquarium in Toronto several years ago, and I said…
15:44
I pounded the table, look, the Fed is wrong about inflation. It’s gonna go much higher than what they think. And as a result, silver’s going to soar. Well, I got the inflation part right, but silver, as we all know, was pretty much dead. So it’s because there’s hundreds of factors and variables. There’s thousands or millions of investors. There’s billions of dollars at stake, even all with their own self-interest in mind, pushing the price around. So.
16:12
making an accurate prediction is really difficult to do. However, that said, I do believe the fuse is lit for the junior miners. We’ve all been waiting for that to happen. We saw the gold price really just, you know, steadily marching higher. And yet the juniors just didn’t go anywhere. Many mining stocks didn’t go anywhere because of that rise in the gold price. I believe that fuse has been lit now and it’s not based on a rising gold price. It’s not based on the Fed cutting rates.
16:42
It’s not based on, you know, likelihood of a recession or a stock market crash or monetary easing. It’s not based on any of that. It’s based on one thing internal to the industry, and that is earnings and cash flow from the producers because of the higher gold price. We actually charted this out and the six largest producers in North America saw their earnings grow by double digits and one new month was triple digits.
17:11
Anything at 5% or higher is considered statistically significant. And all of these were double digits or triple digits. When you get the free cash flow, it’s even better. And free cash flow is where many analysts think is a more honest gauge of corporate health because it’s easier to, you know, tweak and play with earnings, but less so with free cash flow. Free cash flow for those six went up double digits, triple digits.
17:41
And in the case of Newmont, it was up over 1,300% cash flow from Q2 of this year to Q2 of last year, and it was primarily because of the gold price. Think about it, inflation was rising in cost with all these miners, but that had pretty much plateaued, already been figured into cost. So this big jump in the gold price really went directly to the bottom line, and it’s really showing, and that has major implications for our industry.
18:11
on a positive? Oh, they’re all positive. I mean, first of all, for the companies themselves, it makes them healthier. They can buy back shares, they can pay dividends, they can pay down debt. Secondly, it implies that M&A is back on the table now. A lot of us wondered in the junior sector, why aren’t the minors, the big producers, buying these small juniors? They’re so cheap, they could get them so cheap.
18:39
Part of the reason is because they didn’t have the cash flow that they really wanted before they start go out buying things Now they can they have that cash flow, you know They’re paying down debt and therefore I do think this is going to ignite M&A and then of course the big reason is I think the fuse is lit is because historically we know that This all starts with money flows into the sector. It begins with the metals themselves
19:07
Gold is obviously seeing a lot of inflows. That’s where the price is up so much. So we have that. Next it flows into the producers, and now we have that because there’s a lot of green on the screen with them right now. They’re gonna attract a lot of capital simply because they’re so profitable. And watch the stock market. When the stock market gets weak, and a lot of Wall Street and Main Street are looking around to where to put money.
19:34
their mining stocks are staring them in the face because they’re so profitable. And then that cash will move into the developers and then it’ll move into the juniors, it’ll go down the ladder. We’ve seen this many times historically, through many cycles. And so in my opinion, the fuse is lit for juniors. It doesn’t tell us how soon it’s gonna happen, but the fuse has been lit and it’s gonna start inching closer to when.
20:01
big money flows into the juniors, demand really rockets, and we see a lot higher stock prices in the juniors. Let me ask you this, Jeff, because people might say, well, why take a risk with juniors that are traditionally a lot riskier and not just play it safer with the mid tiers or the barracks of the world? Obviously, yeah, if they do take off, the gains are huge, but what made you decide to focus on the juniors?
20:31
I think just being in the industry for as long as I have and seeing what can happen. My dad was a gold prospect, I think some people know. So I’m really personally more attracted to the juniors and exploration and discovery and things like that. So that’s me. But everyone should make their own risk assessment. What are you looking for? And if you just want exposure to the industry, well just buy GDX or GDXJ. The reason I don’t buy them is because…
21:00
the bad come with the good, right? You have companies in there that are, you know, pretty clearly not good investments. And so I’d rather pick my own stocks than make my own basket. Not gonna always be successful with that, no one will be. But that’s sort of my personal bias. I’m aware of the risks, I’m willing to take them. And as long as you spread that risk out and you have a basket, and don’t put all your money in one or two.
21:26
I think the odds of success, especially at this time right now, I think the next year or two, we’re going to be having a very different conversation, Daniela. Right. And again, it just gets back to the point of taking back power. You have way more control, or at least feel like you’re in control. And that’s the feedback I hear from gold investors, people who own physical gold, is they feel that they’re at least doing something to protect themselves up against…
21:55
the system. And the system’s going more outside of what we’ve been. Sorry. Yeah. The system’s going more online, more electronic, all of that, even Bitcoin’s that way, right? So gold is really the last bastion of having something physical you can hold in your hand that you can take with you wherever you go that will always hold its value. The price will fluctuate, but the value will always be there. And so
22:25
It’s quite understandable when someone understands what money is, that they would want to own a meaningful amount of physical gold.
22:36
I guess just to wrap here, Jeff, I mean, folks watching are, you know, the majority of the emails I get, people are really concerned, right? Obviously about their jobs, their security. Had so many retirees write to me saying they’ve had to come out of retirement, take part-time jobs because they’re not making it. I mean, they keep telling us inflation is going down, but we all know it’s not. Any of us who do our own grocery shopping, we all know it’s not. If you’re pumping your own gas, you know it’s not. And they want to know.
23:06
to folks like you who are experts, Jeff, and they wanna know what are they doing? What do you feel we can do as investors, even just outside of investing, outside of money, or how do you prepare for what we’re going up against here? I think the important thing would be you need to be debt-free. So try to pay off your debts as much as possible. And then if you can, try to have multiple streams of income, more than…
23:36
one stream of income. Have a side hustle on top of your job in case something happens. And then yes, you wanna own physical gold because if you’re not doing well now or you see people that aren’t doing well, imagine it getting worse if we do get into a stock market crash or the US dollar does blow up. It could get a lot worse. And so you wanna prepare for that. Hey, let’s hope it doesn’t happen and all the plans you put in place you don’t need. Great.
24:06
you know, no harm, no foul. But I think those three things would probably be my best advice, at least that’s what I’m personally doing.
24:17
Jeff Clark, it’s always great getting your thoughts. You could read more from Jeff at Paydirt Prospector. What’s the site, Jeff? Well, it’s at thegoldadvisor.com. Everything starts there. I think some of your viewers know we did purchase Gwen Preston’s resource maven list. So all of her subscribers are with us now. Peter Kraut of Silver Stock Investor, he came over as well. So.
24:44
We’re rocking and rolling. We’ve got a new website and lots of resources there for people, both free and paid. So, um, I’m ready for this thing to happen and I will tell you I’m preparing for it to happen. Wow. Yeah. You definitely are preparing and like, yeah, Peter, I saw joining your team. Um, great silver investor and friend of our show. I wish you continued success because you’re just really a great guy, Jeff. And, uh, you deserve it all.
25:13
I really mean that. Oh, thank you so much. I’ll send you that $20 later. So yeah, thank you. This is not sponsored, folks. Don’t listen to him. It comes from the heart. Read Jeff’s stuff. It’s really good. Like I said, he’s been writing since those days with Doug Casey. You’ve been out of a long time, Jeff. Yeah. When you and I met on the beach at Grand Cayman years ago, that was… Oh, yeah. I was like, I’m going to go to the beach. I’m going to go to the beach. I’m going to go to the beach
25:40
That sounds bad Jeff. We were at a conference. Oh, yeah. Yeah. Yeah We were at a gold show those are the good old days when they had gold shows and came in not so bad Right, not a bad gig Right, right. That was fun. Yeah. No, it was fun. Good times. Thank you. We’ll catch up with you We’ll catch up with you soon Jeff and thank you all for watching we’ll have more great content coming your way
26:09
Here on the Daniela Cambone show at ITM Trading. Don’t forget to sign up at ding Thanks for watching.
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