Ross discusses his early career and the lessons he learned while building his first company Equinox Resources. He says, "It's a great deal of fun to be able to build several companies."
Recently he realized that now was the time to build a new gold company at scale. To that end, he has founded Equinox Gold. We are still relatively early in this gold bull market, and there is a considerable distance to go.
He cautions that eventually, the broader markets will have to correct, as money printing can't continue forever.
The cartel is staring down its worst-case scenario: Pandemic cripples the economy, leading to a sea of red in the financial markets and damaging spillover onto Main Street, followed by a global wave of Gold Fever. Will the "markets" as we know them today even survive?
Gold Compressing Up As DOW Jumps and Palladium Goes Parabolic. This week we discuss the price movements of gold, silver, platinum, palladium, the US Dollar index, the Euro, and the DOW. Additionally we'll cover the supply and demand dynamics in the rhodium market currently.
Day in and day out, the global financial system continues to cannibalize itself. Clear evidence of this points to the massive “Artificial” liquidity and asset purchase policy instituted by the Federal Reserve. While financial analysts provided several theories why the Fed was forced to inject liquidity via the Repo Market and also purchase $60 billion a month in U.S. Treasuries, the real reason has to do with the falling quality of oil and its impact on the value of assets and collateral.
It’s really that simple. However, there is no mention of it (energy) by any of the leading financial or precious metals analysts. For example, in Alasdair Macleod’s recent Goldmoney.com article titled, How To Return To Sound Money, he states the following:
This article provides a template for an enduring sound money solution that will deliver economic progress while eliminating destructive credit cycles. It posits that a properly constructed gold and gold substitute monetary system, which also includes the removal of bank credit inflation as a means of providing investment capital, is the only way that lasting stability and prosperity can be achieved.
Alasdair Macleod, who I have a great deal of respect, doesn’t mention “Energy” once in his entire article suggesting that returning to sound money, through gold, is the only way for lasting stability and prosperity can be achieved. The majority of economic prosperity has come from the burning of oil, natural gas, and coal, not from gold or silver. The precious metals act as money, a store of value, or economic energy, but are not the ENERGY SOURCES themselves. While this is self-evident, it is very important to understand.
The overwhelming majority of analysts do not understand that ENERGY is the driver of the global economy, not finance. Here is a perfect example.
If you want to drive your brand new car to a restaurant, what is NECESSARY to have in that car? Correct… you need the fuel. That $35,000 car is worthless without the fuel. If you had no fuel and I walked up to your house and gave you a ticket for 20 gallons of gasoline, would that get you to the restaurant?? NO… it would not. A Ticket representing gasoline is not the gasoline. This is what people do not understand today.
The money in the bank is not the FUEL; it’s the ticket for the FUEL. Without the burning of billions of barrels of oil and natural gas equivalents, along with coal, the MONETARY SYSTEM would not work. The energy comes first, the money second. It’s always been that way.
Unfortunately, the amount and value of TICKETS in the system have continued to increase exponentially while the quality of the energy is declining. It’s not the quantity of energy that is important, but rather the QUALITY of energy. Because the quality (and soon the quantity) of energy is declining, the tremendous amount of outstanding TICKETS in the world will lose their value.
Which brings us to gold and silver… Fiat Money (Federal Reserve Note) is a mere TICKET for energy in the world, while gold and silver represent a BANK of stored economic energy. There is no stored energy in gold or silver, but they act as a BANK of energy equivalents.
Energy Equivalents Of Fiat Money vs. Precious Metals (based on $ 2.75-gallon gas)
$20 Federal Reserve Note: Intrinsic Paper value of note worth 13 cents (at most) = 1/20th of a gallon gas
1 oz Silver Coin: Worth approximately $18 = 6.5 gallons gasoline
1 oz Gold Coin: Worth approximately $1,550 = 564 gallons of gasoline
The energy equivalent values for the precious metals are considerably higher than the Federal Reserve Note… no shocker there, but this is only part of the equation. I am not going to get into the details in this article, but will be doing so in a new Youtube video update. If you have not yet subscribed to my SRSrocco Report Youtube Channel, please consider doing so at the link: SRSrocco Report Youtube Channel.
Getting back to the failure of financial and precious metals analysts to include ENERGY in their analysis, here is another article focusing on the “symptom” rather than the underlying factor, The Fed Won’t Avert The Next “Crisis”… They Will Cause It:
“Yes, we did indeed need the Federal Reserve to provide liquidity during the initial crisis. But after that, the Fed kept rates too low for too long, reinforcing the wealth and income disparities and creating new bubbles we will have to deal with in the not-too-distant future.
This wasn’t a ‘beautiful deleveraging’ as you call it. It was the ugly creation of bubbles and misallocation of capital. The Fed shouldn’t have blown these bubbles in the first place.”
The quote in that article was from John Mauldin. Mauldin is the typical financial analyst that seems to believe in the ENERGY TOOTH FAIRY. According to Mauldin and 99% of financial analysts, the majority of our problems stem from Central bank intervention, debt, corruption, or some form of socialism. Again, nowhere in the article linked above is the mention of ENERGY…. ZIP… NADDA… ZILCH.
I could go on and on.
One aspect not considered by the Mainstream or Alt-Media analysts is that the Fed and Central Banks are likely postponing the collapse of our global economy for as long as possible. No one seems to GET THIS. Sure, there are a few like Gail Tverberg. She gets it. But, most just point out the mere symptoms without looking at the underlying factor...
The US Federal Reserve is once again force-feeding liquidity into the system. At its fastest rate ever.
The result? Record high stock prices whose valuations defy all logic.
What’s wrong with that? Shouldn’t we just enjoy the party and be grateful for our rising 401ks?
What’s wrong is that the Fed’s actions are dooming us. Their poisonous cocktail of endless cheap money and rock-bottom interest rates is hastening a terminal breakdown of the economy, while deliberately enriching a tiny cadre of elites to the ruin of everyone else.
Though most remain blind to this, Fed policy (and the similar ones pursued by the other major world central banks) is directly responsible for, or a major contributor to, many of the biggest challenges society is facing.
Tens of millions of Boomers who can’t afford to retire. Tens of millions of Millennials who can’t afford to purchase a home. History’s largest wealth gap between the 1% and everyone else. Relentless increases in the cost of living while real wages remain stagnant. Depletion and degradation of our key natural resources by zombie companies run without profits. We can thank the Fed for all of these ills, plus many more.
All we’re offered in return is the fake reassurance that “everything is awesome” because stocks are higher today than they were yesterday. As if that really makes a difference when the top 1% owns 50% of all stocks and the top 10% owns over 90%.
And when today’s epicly distorted markets reach their breaking point — which may be imminent given the truly manic action recently — not only will the resulting damage be commensurately epic, but it will injure the 99% FAR more than the 1% who benefitted from it.
Mass layoffs. Bankruptcies. Destroyed retirement portfolios and pensions. State and city budget crises. Higher taxes. More fees. Cancelled social services. Hollowed-out communities.
The Fed’s deliberate policy of privatized gains for the elite and socialized losses for the masses ensures that Joe Sixpack is going to take it in the shorts while Reginald Caviar-Maybach will still receive his record bonus from Goldman Sachs.
Which is why the video below is essential viewing for anyone not currently CEO of a too-big-to-fail bank or too busy counting their $billions.
We brought together several of the best monetary and macroeconomic minds to explain exactly what is transpiring and what concerned individuals like you should be preparing for.
"Trade Deals" are government-managed trade. Government-managed trade is political, which means politically-connected industries benefit. Free Trade is the only "trade deal" that benefits everyone.
NO government interference with the economic lives and transactions of Americans. But instead of Free Trade, we have a crony system that many Americans despise -- the marriage of corporations and government, always working hand-in-hand.
US Crude production pushed higher, hitting a world record 13 million barrels per day for the first time. Neither Russia or the Saudis have ever produced 13 million barrels per day of oil. Unfortunately though, a lot of this oil production is uneconomic.
300th Anniversary of the South Sea Bubble! Is It Happening Again? Gaming stocks with corporate buyback of shares. Gaming earnings per share with corporate buyback of shares. PE at 34.5 - no worries?!
U.S. manufacturing closed out a tumultuous year with the weakest monthly performance since the end of the recession, with orders shrinking and factories continuing to dial back production.
The Institute for Supply Management’s purchasing managers’ index fell to 47.2 in December from 48.1, the fifth straight month of contraction and missing estimates for a rise in a Bloomberg survey of economists, according to a report Friday.
It was the worst reading since June 2009 and marked the eighth decline in the last nine months. Readings below 50 indicate activity is shrinking.
The deterioration was driven by the weakest gauges of new orders and production since April 2009.
The data show American factories remain plagued by pullbacks in business investment at home, softer demand throughout the world and, until recently, an escalating trade war between the U.S. and China.
Financial writer and book author John Rubino says, “We have entered a new stage which feels like one of the end stages of this process, when governments just give up and don’t even pretend to try and control their finances anymore.
Well, we are there. That’s when it will be clear to everybody that is the case, and then your gold goes through the roof.
The investment thesis ends with you loading up on precious metals and then riding the inflation and/or monetary reset that has to happen because of past mistakes.
The nightmare scenario is if we are already having a financial crisis and then we have a war with China and Russia, it’s unimaginable. I cannot factor that into a scenario for financial asset prices because it is too crazy.”
Great fundamentals are driving the investment thesis behind the platinum group metals (PGMs), which add diversification to a portfolio of gold and silver, this according to Ryan Giannotto, Director of Research, GraniteShares ETFs.
“That’s what I like about these, is adding different diversifiers to your diversification sleeve. Each of these is subject to their own micro and macroeconomic trends,” Giannotto told Kitco News. “We’ve seen this favoritism towards palladium.”
Money manager Michael Pento says, “I have 10% of my portfolio in gold, and I am going to increase that. I would think you need at least 10% in gold, physical gold, right now.
If you don’t have that, then you are doing yourself a great disservice. I include gold, silver and platinum in the precious metals basket, and that amount should be increasing.
We are going to have a massive reset, and all of this debt is going to have to be defaulted upon. It is going to be defaulted upon two ways: through inflation and through implicit restructuring. Knowing how they are going to default on this debt is going to make you solvent.
If you look at all the ingredients that surround your decision as to when you should increase your allocation to precious metals, all those ingredients are in place and getting more so.”
