gold news

 hi this is mike maloney with adam taggart jeff clark is up looking at some silver mines so he's going to be off for the next couple of weeks with these recordings but adam how are you doing i'm doing great i'm a little intimidated though usually in these videos uh you know jeff's the the consummate host and i just have to sort of sit there and look pretty and hopefully not say something too dumb uh now i actually got to do some work to try to fill in jeff's shoes as host here but we got a

lot of stuff to talk about today mike so let's jump right in um and folks we got a lot here today this is going to be a great video we even have two excellent memes so today you get two memes of the day for the price of one um so mike the story for today is a video clip by uh cnbc's power lunch it's really surprisingly kind of refreshing to see mainstream media actually talk about silver and not just silver itself but trying to make a differentiation between actual physical silver and paper silver now

clearly these hosts of a money show don't seem like they've actually seen actual money before it's really funny to see that their reaction when the uh the woman leading the the segment there actually gives them a bar of silver but but what did you think about this i i agree that that was hilarious that this uh money show these people don't know what money is they see it for the first time and at the very end the guy says can i short that which he can uh so he he isn't treating it like money

they're sort of laughing about it at the same time but what this shows is some of the power that the wall street silver movement has had uh because that is one of the reasons that they're all talking about this they're talking and for the first time uh we're seeing things like them talking about the amount of paper claims that there are against silver versus the physical silver that's available so it's interesting that this information is now being disseminated disseminated through

the financial channels to the average guy it's it's it's uh very interesting and it just shows that this is sort of the beginning you're going to as you know if you were tuning in to the news in late 1979 or january of 1980 and even beyond after the peak in january of 1980 of gold and silver the news didn't they weren't talking about stocks they weren't talking about anything but gold and silver it was all the news all the time and so when we get to the top uh that will be what but this shows you know

maybe we're just entering like the second stage now where people are starting you know or the beginning of the third stage but we're still very early on in the profits that are to be made in precious metals and i just hope that the wall street silver community has the fortitude to stick with it and uh not um you know buy and sell their positions real quickly uh you just stick through this entire precious metals bull and if they want to do a squeeze that's the way to do it so they are having an

effect what's your take uh well let let's hope that uh that you're right mike and that we are beginning to sort of see the mainstreamization of precious metals um there's that famous quote i can't remember who said it and i'm going to botch it but it's something like uh first they ridicule you then they oppose you and then they accept what you've been saying all along is self-evident at the end right and maybe this is you know one of the early baby steps on our way to it becoming accepted and

eventually becoming self-evident so i i take that as really uh really encouraging um although i do i did find it a little strange that the the precious metal expert that they brought on um adrian ash who you know is a good expert in his own right but he made a comment that he said silver like gold you know we we don't throw it away there's a ton of it above ground which that's probably the only thing i would have taken exception to in that that segment there is that you know silver is

is a highly consumed commercial metal and in many ways um you know we use it in such small amounts that it's actually irretrievable so we're actually using up a lot of the above ground soda every year which is why we have to keep replenishing it and i see a nod in here mike yeah i absolutely agree with that all right well let's let's build off of that and go on to the next uh the tweet of the day which is another video segment from cnbc just from another uh channel there or another show there

uh fast money this time and uh boy some of the most i would say sort of positive forecasting that i've seen a mainstream channel do for silver they're talking about uh uh 30 plus dollar silver uh perhaps right by the end of august what did you take from that uh well again i just think it's amazing that it's getting mentioned on financial channels and this is actually a very bullish sign uh this uh short term predictions and stuff and how many uh options there are on you know how many contract futures

contracts or options this stuff in the short term i really don't care about i i look at the long term and its ultimate destiny because i believe there is an absolute destiny for gold and silver here and so i like to bet on the sure thing not try and calculate where it's going to be next month or next year but where it's going to be when it finally peaks against the stock market against real estate and against all of the other things that you can you know sell yourself and then buy with

the proceeds because that's what counts not where it is measured in dollars it's how much stuff that it buys you that way you're protected if you're thinking that way you're excluding inflation or deflation it doesn't matter which which direction we go how much more stuff are you going to be able to buy for each ounce of silver that you own and they sort of miss this fact but the very fact that here on cnbc there were two different shows that were talking about silver i think that this

is amazing i don't think this has happened since the 80s uh it probably hasn't and mike i'm a little bit younger than you so i wasn't really watching cnbc in the 80s i was probably watching more mtv at that point in time um so it's great to have your your perspective there but not only they talking about sober they're talking positively about silver you know when they usually talk about precious metals on these shows which is not very often it's usually you know with a derogatory

focus and to see uh you know some optimism and enthusiasm there really really again is refreshing and one stat there that really caught my attention um was right now there are 17 times more calls than puts on silver and mike you're right to remind people to look at the long term here that's the right way to do it but it shows that the market is getting excited in the short term about sober and one of the reasons they mentioned was because of inflation and it's worth be because the new data

just came out today it's worth us talking about this for just a second uh the latest cpi uh numbers came out and they're now uh the highest they've been since 2008 biggest surge since 2008 we printed at 5.4 which is pretty staggering given that we've gone through you know a decade plus of inflation down in the you know one and a half percent range um so uh mike i'd love to get your reaction to that but it uh well yeah let me get your reaction that and then a couple quick points i'll

bring in i think that uh this is very important to mention and this is all the result of government meddling in this system where we you know with the lockdowns that we've had which we shouldn't have had the evidence is there the lockdowns really don't do anything uh and you know they sacrificed the global economy uh which will ultimately end up doing a lot more harm to a lot more people than um you know there would have been probably slightly more uh covid cases and so on if the if people

were wearing masks and social distancing but not closing down the economy like they did in a lot of areas increasing unemployment and then redistributing wealth by printing currency to uh you know hand out as stimulus and all of the deficits the the consequences of their actions over the past uh year and a half are going to extend for decades we're going to be feeling this uh but um i also think that the fed may be right with this transitory stuff because i've been following lumber lately you know um i bought a

farm that was heavily hurricane damaged and i'm having to rebuild a lot of stuff right now and um the lumber futures have come down to where they were two years ago and they were up uh lumber had gone from like 700 up to 1700 650 up to 1700 and now it's back down to about 700. so the [Music] i took a look at a lot of the other commodities corn wheat uh copper uh and um it looks like you know oil doesn't look like that but it looks like a lot of these things could be following that trend

uh because of the shutdown in the economy uh the businesses that produced this stuff had to stop producing it and so you know uh shut down their plants they you know it takes a while for that the excess that they've got to get used up in the supply chain and then it was used up and then when they opened up the economy there's all this demand and there's no supply so now they've done their ramp up and with lumber the ramp up has already worked its way through the wholesale end of things so within

the next couple of months we should see the price of those of lumber coming down in retail um when it comes to food i have noticed that like all of the cuts of steak new yorks and ribeyes and porter houses and things like that uh here they're all you know at the supermarket that's uh close here uh you've got stuff that's was twelve dollars a pound and now it's uh 14.95 dollars you know it's everything has gone up 15 20 as far as uh the meats and i have noticed just my bill

to fill a shopping cart has gone up tremendously uh that will probably persist for a while even if the wholesale prices of all these things like corn and wheat and so on these the food and beef uh do come down because i'm sure there was a period where supermarkets we're operating at a loss they're gonna they're not gonna lower their prices until the competition starts lowering theirs so we'll see a lag here but i do think that inflation may come back down but that's a maybe a

big maybe yeah well yeah you and i have talked about this on previous videos mike and i do want to give us a little bit of a pat in the back where we have been cautioning people that a lot of the cost push inflation that's been occurring over the past two quarters was likely to be transitory and lumber's the best example of that right now um as of today it's now negative on the year in terms of prices so that massive spike that we saw um has largely played out as you said earlier the only other thing to what

you've said that i want to underscore here is i think what we're seeing right now really is like a preview of what's to come so right now everybody's looking at the high inflation numbers and as we're seeing in the mainstream media people are beginning to wake up that oh if you're worried about inflation maybe you actually want to own some precious metals as a way to protect your wealth right now as you've said i i i think that a lot of the the current spike will kind

of tail off over the the rest of this coming year as supply chains catch up and then competition's able to get prices even lower and you and i have talked about we still believe that there's a deflationary impulse to come but once that happens and the central planners respond we see a lot of inflation coming and so i think what we're seeing right now is a little bit of sort of like a priming of the pump where you know when that big inflationary event happens people are going to remember

this period here where they were you know their their attention was focused on the precious metals it's just going to be like a 10x or more uh when this happens in the future so i kind of look at this as almost like a little preview a little little test run um curious what do you think well i absolutely agree and these whip saws that were you know where it goes one direction and then changes and goes the other direction uh these are probably going to become more violent but they keep everybody off their toes

they just prepare for the last thing that they were worried about and then the opposite happens and they were unprepared for that so it's going to be a very difficult thing to navigate uh but i think you know a short-term severe deflation uh followed by then and that's exactly what i wrote in my book the threat of inflation followed by uh uh deflation followed by real inflation big inflation or even the potential of hyperinflation all right well well said all right well let's get on to the chart of the day but

right before we do uh just a reminder folks if you're enjoying this video please hit that like button and subscribe to this youtube channel uh you can do all that right below the video player here all right mike get into the chart of the day it's really the charts of the day we're going to talk about an article that was recently released by lance roberts who is an excellent uh market analyst and uh and chartist um and he's just got a whole parade of charts here basically about asset price bubbles

a really compelling empirical romp through a bunch of data that says hard to disagree that we're seeing asset price bubbles in a lot of places and the title of his article is bubbles last until they don't so um what are you taking from this article mike i think it's a great article and i love lance he is an excellent analyst and i uh refer to his website very often real investment advice dot com uh he's he's just produces a wealth of information but the first chart is at jeremy grantham's uh

chart of 40 years the history of 40 years of price bubbles in the market they're showing uh the gold the the precious metals bubble back in the 80s and the nikkei bubble in the uh the late 80s early 90s and thailand and then uh there's the tech bubble the u.s housing bubble chinese bubble and biotech and now we've got the almost everything bubble it's uh they called it the everything bubble in here but we're at a in a bubble that's really the greatest one in history and uh

it it can't go on forever uh that's a very interesting chart any comments on that from your side well i think on that chart specifically you know i just want to point out for folks that this latest bubble just dwarfs everything that's come before it right um you know we toss out this term everything bubble which i've used an awful lot as well but it's it's not just uh trying to coin a phrase i mean when you look at the scope and magnitude of the level of overvaluation right now

it's it's historically unprecedented so we truly are in unchartered waters okay the other thing i liked about the article and i'm just going to bang through a couple things here mike and feel free to stop me but you know lance gave empirical data that says look you know here's a lot of reasons why we can look at data and say we're in a bubble but he said look you know bubbles are psychological phenomena right it's basically a period of time where emotion trumps logic right and people

begin believing stories uh that maybe don't have a rational basis um you know in reality so um he kind of delves into the psychology of a bubble um and and you know largely it's the swing from from fear up to greed where everybody is just so greedy they're not paying attention to logic and you know he says okay well what what really defines a a mania an investing mania and he says you have to have the following five things you have to have high optimism easy credit um a rush of initial and secondary

offerings as companies are capitalizing on these crazy prices um you want to see the you have to see the riskiest stocks outperforming and you have to see stretched valuations and then he goes through and says yeah we're seeing every one of those exuberance check and uh hopefully our producer dan rubot can put up these charts as i'm talking about it um but he shows uh uh you know the fact that the market's never been this irrationally exuberant easy credit and leverage check yeah borrowing has exploded

um during the past uh 16 months here rush of initial or secondary offerings absolutely i mean not only we seeing a rush of new offerings but we're seeing um the the highest percentage of unprofitable companies going public than we've ever seen in the past so basically all the junk is rushing to sell right now to sell to the patsies right now uh investing in risky stocks check uh looking at this chart you'll see that top line at the at the very top uh the top five percent most shorted

stocks are the ones that are outperforming everything else right now that's similar to the fact that junk debt right now is trading lower than the rate of inflation which is just completely ridiculous and then last stretched valuations again one last chart here but showing that again we're at a period of uh valuation and overvaluation that we've never been at before in history so i think lance does a really good job of just saying look if we're trying to take emotion out of the picture and look at

this rationally our dashboard of warning lights is like blinking red everywhere oh it started blinking red several years ago and now uh you know it's lit up like a christmas tree uh the the i didn't think it could get this stretched but it is you know when you look at the overvaluations and then that's one of the charts is uh the how many you know it's google searches for uh options trading you know how to trade options and from this goes back to 2004 and from 2004 it rose from an

average on this chart of like nine and then it went up to 75 in just the past uh year and a half and so um it averages nine early in the century then up to about uh 12 and then about 15 was the average uh up to the end of 20 19 and then just suddenly 2020 2021 it's like off the charts by comparison so it's like uh five to uh seven times uh the number of people searching for that term and that's showing that we should be nearing the end of this bubble when that type of optimism and risk people taking on that level of risk

uh becomes so predominant yeah we're near the end so i think this is a brilliant article i think everybody should read it all right um so moving on here um going to talk about the latest viewer feedback that we received here mike um let me uh let me read this to you and then i'll let you react to it this is by thomas johnson who writes the people in government that are old enough to remember the 60s through 80s 1960s through 1980s don't care and we talked about this last week with with you me and jeff

mike they are so out of touch with actual reality that they don't see the issue almost all of them grew up with enough privilege to never understand firsthand how any inflation affects the 95 percent of the country that feel the pain seriously just look at all the policies bills etc they write read them it is painfully obvious that they have zero understanding of life outside of the walls of congress what say you mike i say that thomas johnson who wrote this is absolutely correct i want to thank him

for bringing that to everybody's attention because uh they do live in sort of an ivory tower up there in congress and all of these people did grow up with great privilege they grew up in mostly wealthy families there's a few people uh in congress in the senate that uh you know came from the middle class and so on but most of these people uh grew up uh you know with silver spoons in their mouths so uh i think he's absolutely right and it really hurts the rest of the country to have representation uh that is so far

detached from reality what do you think yeah i know i think it's the the tale of of two countries basically right um you know as we've said often in past videos my belief is is that we really do have a captured system where the people who have um been winning the game have reinvested their advantage to you know back politicians and get the laws and regulations et cetera continued to be rewritten to you know continue and improve their advantage and so um we basically to a certain extent have more almost like an oligarchy these

days than we do really a true representative democracy yes so okay so we're going to go to the memes of the day yep just before we do i just want to remind folks mike though to make sure they download your free book so go to goldsilver.com free book if you haven't read the book yet folks it is one of the absolute best maybe even the absolute best guide on why you want to be protecting your wealth with gold and silver and how to do it thanks so uh there's two memes here and everybody needs to stick around for

the second one but they both refer to cuba and what i want to say before this is that you know i went to the report on economic freedom and it measures uh the all of the different countries uh there's i believe uh there's close to 170 countries now that they're measuring every year and they measure all of the countries that produce reliable economic data well cuba isn't on the list because they don't produce reliable economic data something that you can actually but you put this stuff into a spreadsheet you

hit sort and the most free market economies that protect property rights and that have a lot of economic freedom where you can start a business easily run a business easily import export anything you want they go to the top and those people up in the top quartile uh live almost they live more than 15 years it's like 16 years longer than the people in the bottom quartile in some countries it's more than 20 years um but uh cuba doesn't even appear on the list because it but i went to the that

that's produced by the fraser institute up in canada which is a moderate think tank i went to the heritage foundation's uh report on economic freedom and they do include cuba which is right down there with south korea and venezuela at the bottom of the west and i don't usually use them because uh you know somebody that's more liberal will just dismiss that as a conservative think tank and not even look at the data but so here are the memes i hope you cubans know that bernie sanders is

disappointed in your ungrateful attitude towards free health care and literacy programs i think that's hilarious then the next one is cuba celebrates 60 years of rent control and this is these crumbling buildings it is so true this is the proof it's the reason there's the uprising risings in cuba right now it's the proof that top down government control of the economy does not work it's got to come from the ground up from people opening up their wallets and voting for what they want

in the free market with free enterprise i want to thank everybody for watching i want to thank you adam for moderating this it was great it was a pleasure mike thanks