David Skarica: The Greatest Scenario For Gold Stocks

Tom welcomes back David Skarica, Publisher and Founder of Stock Chart Of The Day. David Skarica the current rate-cutting cycle by the Federal Reserve, suggesting that political pressure might be the main driving force behind these cuts. He compared the current situation to previous cycles, noting that in 2008, the market was in a crash, while in 2019 and 1995, stocks were rallying before the rate cuts. Skarica also highlighted that the bubbles in 2008 indicated that previous rate cut cycles did not immediately work, but this time, the economy has held up relatively well. He expressed the belief that this rate cut cycle will be different and that predictions of a significant market downturn may not necessarily come true.

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Skarica mentions that the Federal Reserve is looking to cut short-term interest rates in a controlled manner to avoid shocking the market. The expected cuts in March, May, and June are predicted to be less severe than those in 2008 or 2020, as the economy is not showing signs of requiring substantial intervention. Skarica emphasized that the Federal Reserve is taking a more strategic approach to interest rate adjustments to prevent abrupt changes that could disrupt the market.

The conversation then shifts to the performance of gold stocks during rate cut cycles. Skarica cited examples from 2005-2008 and 2018-2020, where gold stocks outperformed the market in the first 12-24 months of a rate cut cycle. However, as the bull market matures, investors tend to shift to more aggressive investments, leading to a slowing trend. Skarica theorized that a similar cycle may be observed again due to high levels of debt. He suggested that combining a bull market with rising gold prices and low oil prices could create an ideal scenario for gold stocks.

Skarica also touched on the importance of a long-term investment horizon, citing examples from the past. He pointed out the success of investors like Jim Dines and John Templeton, who made substantial profits by having a long-term perspective and buying stocks when they were undervalued. He encouraged investors to remain open-minded and look for opportunities while also being aware of potential risks.

In terms of specific recommendations, Skarica suggested investing in gold and, more specifically, gold stocks, which he believes are currently undervalued despite the high price of gold. He acknowledged the risks associated with these stocks but stated that the potential for rewards is significant.

Timestamp References:
0:00 – Introduction
0:51 – Pivots & Rate Cut Cycles
4:22 – Fed Cut Probabilities
6:34 – Pivots & Politics
10:32 – Treasury Yield Index
11:43 – HUI – Gold Bug Index
16:16 – Gold Long Term Chart
21:23 – Great Investor Trades
22:10 – Lessons & Patience
25:03 – Gold Space Sentiment
27:55 – Coming Debt Crisis
29:23 – Wrap Up

Talking Points From This Epsiode
– David Skarica believes the current rate-cutting cycle by the Federal Reserve is driven by political pressure and may differ from previous cycles.
– Gold stocks tend to outperform the market in the early stages of rate cuts, but the trend slows as the bull market matures.
– Skarica recommends looking for undervalued gold stocks and emphasizes the importance of a long-term investment approach.

Guest Links:
YouTube: https://youtube.com/@scotday
Twitter: https://twitter.com/DavidSkarica
Patreon: https://www.patreon.com/stockchartoftheday

David Skarica is the Founder and Editor of Stock Chart Of The Day. Skarica entered the financial markets at a very young age and became the youngest person on record to pass the Canadian Securities Course at the age of eighteen.

David is a regular speaker at trade and investment conferences in Canada and is a guest on the Business News Network (BNN), Canada’s flagship business broadcasting network. His work has appeared in publications such as the Bull and Bear Financial Report, Barron’s, Investor’s Digest of Canada, and Canadian MoneySaver. David’s recent book, Collapse, is available on Amazon.

@scotday #Fed #Gold #Pivots #RateCuts #XAU #Politics #Energy #Oil #Inflation #StockChartOfTheDay #JimDines #JohnTempleton #Argentina #Venezuela #GoldStocks #PreciousMetalJuniors

We live in a fantasy world now reality has been destroyed this is the time that you really need to pay attention the probabilities are overwhelmingly on Gold’s side that is the best environment to see gold increase its value welcome to Palisades Gold radio I’m your host Tom bodick joining me

Today is David skarika publisher and founder of stockchart of the day and formerly addicted to profits.net David thanks for joining me again hey it’s great to be here yeah we had a long conversation beforehand so no small talk just Marcus well sometimes the small talk is is more interesting but obviously the

Market stuff is more important and trying to get a perspective of where we’re really at I think is obviously very important I thought we could start by talking about what type of rate cutting cycle you would like to see from the fed you know considering the seemingly doish pivot in Powell speeech

Everybody thinks of this as a time of possible Panic moment in a way but you recently looked at the type of cutting cycles that would’ be more favorable for certain sectors I think first thing we have to look at and I saw an interview with the famed hedge fund manager Kyle

Bass recently and I don’t agree with everything that Kyle says but like this I kind of agree with I do think that a lot of this is political we are entering election year you go back 76 1970 88 92 2004 2008 you of course 2008 there

Was a crash but usually the FED is in a loosening cycle during the election year that becomes part of it of course with this polarized politics that we have with Trump against the never trumpers and the Republicans and to the Democrats kind of gonna like nudge the FED we all

Know the FED is somewhat political they can say they’re not but we all know that that hey you guys got to start cutting rates and that will probably mean the stock market goes up property prices do well you know people are feeling feeling better in election year so I think there

Is that aspect of it I think there’s also the aspect of okay we’re not going to get into the debate today is if the inflation numbers are rigged or too low and real inflation is higher but the deflation number they give out has gone

Down to about 3% it was up to over 8% and fed funds rate is about five and a quarter it’s like they’re 2% above inflation so they can probably feel comfortable cutting it back to 4% or so I look at these factors and look at the

Way the market is trading we’re going to talk about this I’m going to concentrate on gold stocks but I I did a recent stock chart of the day where I talked about past cut cycles and if you go look at like 1995 when they cut rates similar

Today because they raised rates a lot in 94 and then 2019 after they raised rates a few times in 2018 again that was political pressure fed Trump was really pressuring the FED back in 2019 those kind of rates cut Cycles the early 90s was the same way the market was doing

Fine it was rallying into the rate cut cycle whereas in like 2001 and 2008 like the last big busts in the market you go look at then you had housing blowing up you had Banks blowing up in 2001 you had the entire Enon went bankrupt you had the entire Tech sector imploding so

Those were giving you warning signs that this rate those rate kite Cycles weren’t going to work right away because these bubbles were kind of blowing up we’re not really seeing that we’ve seen a huge rally in Home Building stocks SE the economy hold up relatively well all Cycles are different everyone now thinks

This is going to be a big bust because if you look at our last three bare markets our last couple of our bare markets like 2020 2008 2000 to 2002 there was a big these were a big bare Market 30 40 50% but if you go look at

The 70s some of the bare markets in the 70s and late 60s were pretty tame like 1966 which looks like what 2021 was most similar to or 2022 sorry was like 20 25% last about N9 10 months the FED began to cut there was about a two to three year

Rally in markets that’s kind of what I’m looking at Happening Here we don’t want to just concentrate on the stock market with the S&P is back near its highs The Magnificent Seven stocks as they call them you know the apples microsofts Etc they’ve zoomed higher and you know I

Know a lot of Palisade listeners are golden resource people so I’m gonna I’ll share the screen now first of all I’m going to show you the the kind of type of rate Cuts we’re looking at I don’t think we’re going to see unless the economy Falls completely apart and again

We’re not seeing really the warning signs there of that we’re not going to see these steep rate Cuts like we saw in 2008 or 2020 when they just go to zero and they print trillions of dollars I think we’ll never see Zero interest rates Again by the way we had a secular

Low in your 40 year low for the interest R cycle and interest R Cycles tend to be 30 to 40 years in 2020 2021 and we’re now headed higher and but no cycle goes straight up we’ve gone basically from zero to 5% on the short-term interest

Rates on the fed funds it wouldn’t be surprised to me if we take back 30 to 50% of that so we get down to 3 to 4% roughly on the next cycle before we head higher again so this is the March chances an interest rate cut and you can

See we’re actually over 80% chance of a cut now you may say 71 but the the the that 11% is a half a half a point so it looks like almost surely in March they’re going to be into the cut um it looks like again you got another 80%

Chance so it looks like of another cut happening in May and then another over 80% chance of another cut in June and so right now we’re at 525 to 550 let’s just go to December of next year you can see there’s about an 80% chance that we’ll

Be at 375 to three to 400 basically puts us at 150 basis point of cuts I’m not actually as aggressive of that I think it’s gonna be more like a 100 that’s what the FED funds Futures are telling you so it definitely looks like we’re

Going to start cutting RS and by the way I’ve been telling this people this for six months and said look at other than a little quarter point here and quarter point there they are basically done raising rates and next year they’re going to be cutting and by the way in

2021 and 2022 I was much more hawkish than most people when a lot of people thought oh they’re never going to go above like two or three% like they did in 2018 I was like no I think they’re going to go much higher four or five percent because inflation is so high and

They’re way behind the curve and they have to do that and actually they even raised more than I thought said they went to almost 550 so what we’re looking at here is we’re going to look at gold stocks and their performances in riky ra cycle if I could just play Devil’s

Advocate before we move on to the gold stuff here thinking about how political this is and how really the coming election is not a surprise is it not kind of weird that Powell kind of did this in a way an aggressive at least verbally pivot couldn’t they have just

Kind of said you know we’re probably done and just done that over time rather than going from seemingly hawkish to seemingly doish in a twoe span I think the issue that the FED has and I think the reason that rate cut and rate hike Cycles are so much slower than they used

To be they don’t to shock the market anymore okay if there’s a crisis like 2008 20120 they’ll come in and they’ll cut rates to zero and they’ll print trillions of dollars because it’s a crisis look how slowly they raised rates in 2003 to 2005 and then and even when

They cut in 20202 even though we had this big dotc bus there wasn’t really a crisis you the economy had a mild recession after 911 so they really like to kind of slowly make their moves and then kind of obviously you have to make a turn and then when they make that turn

They want to give the market they just don’t want to come in say okay you know we’re cutting interest rates 50 basis points overnight where people still think they’re hawkish because then they think that’s going to cause dislocations in the market imagine you did that people still thought they were hawkish

And then in March all of a sudden they cut out of nowhere you think this rally has been big you know the G could be up a, points in or 2,000 points in a day and I really don’t think they want those kind of extreme moves now it doesn’t

Really matter it’s Catch 22 because all of this doish policy when they cut rates to zero and they print trillions of dollars that has caused these extreme moves these booms of 2000 2000s real estate market or 2010’s everything bull market as people call it or you know

2020 2021 kind of bubble that happened because of zero rate so they are kind of causing that anyhow and that’s why remember how slow they were to raise by the way they did the same thing in 2022 when they began to raise rates kind of just like when inflation finally took

Off when Russia invaded um Ukraine all of a sudden all the FED speakers got Mega hawkish almost overnight but again they didn’t raise rates I just said at the time I remember time I was like you know what they should raise rates two or 300 basis points overnight I know that’s

A shock but inflation’s 8% they have rates at zero at the time but they did the same thing they all pivoted their talk and then they slowly raas rates and I expect that again unless there’s a crisis where they’re like okay we’re going to cut interest rates by 100 basis

Points I think the problem now is they’re just going to slowly do these rate Cuts again it’s similar to that 1995 cycle which I’m going to show here or the 20012 2002 cycle where as long as there’s not a shock in the economy that’s what gonna ha that’s gonna happen

So that’s my opinion for it I think that they think that that’s that kind of speak and switching to speak isn’t really aggressive it’s the action that’s more aggressive right yeah just trying to understand it from that perspective of seemingly switching on a dime versus doing it over

Time again because the election isn’t like it’s all of a sudden popped up well I think maybe too top of the election factors like that the election combined with inflation has fallen more than they probably thought quicker than they thought and also these oil prices kind

Of having another whack down to 70 that also gives them some leeway you when oil went back to 90 I thought maybe we were going to head back over 100 especially with them basically depleting the their strategic Reserve but of course that didn’t happen fell right back to 90 we

Have issues with over Supply in oil right now so that or back in the 70s sorry from the 90s so I think that also gave them more leeway and we’ve seen food price inflation also starting to flatten out and that was another big problem so I think all those factors

Combined with probably like some political nudging like hey we don’t want orange man reelected you got to cut rates you know I think that that all like um played a part any yeah so let’s just get into the technical side so this is the three-month treasury which

Basically tracks the FED funds right so this is a 95 96 you can see it went from 580 to about 500 that’s like basically three three quarters of you know 75 basis points cuts and what we can see is gold stocks where the X there’s no hoi

Back then back by the way there’s no ETFs obviously went from about a 100 during this period to 155 it went up 55% or so and there is a time frame I’m going explain that in a second so you see the gold stocks went up 50% 55% the

S&P went at 40 so that was a huge move in the S&P and Gold stock still outperformed I’ll talk about this later but there is a time frame but the it’s I’m looking at the first 12 to 18 months when they cut rates the opportunity cost of holding gold goes up because there’s

Decreasing interest on your you know interest bearing Investments and because usually you know more conservative sectors like utilities precious metal stocks they tend to go up quicker and early in the rate cut cycle they tend to outperform this is really we’re focusing on the first 12 to 24 months of the rate

Cut cycle so that’s 94 95 so even in an epic bull market in 95 gold stocks outperformed so this is 2001 2002 this is like the greatest scenario for gold stocks basically in this you can see the Hui went from 40 to 145 and it actually

By 2023 had gone to 250 and they started cutting rates in January 2001 and you see the hii went up it’s at the bottom here 230% and stocks went down 30% because we were in the dotom bust so that’s the greatest scenario of all for a gold investor where stock market’s

Going down but gold stocks are going higher so it tracks even more Capital because people are like oh wow these stocks are going up 50% a year and the markets going down 10 or 20% a year I don’t want to be in the S&P I want to be

In in gold and precious metals ities now granted this was coming up from a secular low gold being 250 everything being extremely depressed etc etc but again it shows us in the first kind of year or two of the rate cut cycle which kept going into 2023 by the way gold

Stocks really outperformed the market and then the last instance I’m going to show you and look at go look up the video that I did on my web or on stock chart of the day on YouTube and on my website I go into more of these Cycles

In detail not just the ones I’m showing here but this is 2 2018 to to 2020 so again they they began to cut rates in 2019 and then it was obvious by the fourth quarter when the stock market was falling in 2018 the rate hikes were

Coming to an end and then of course they cut rates to zero this this decline here is really just a few month thing because of a covid and everything being shut down and kind of everything crashing together but again we can see that the S&P went up 35% during this rate cut

Cycle in 2019 to 2020 and the Hui went up almost 100% it was at 125% at its highs so again early in the rate cut cycle and people get into precious metals here’s what happens usually though is if as the bull market matures and we saw this in the

2010s and we saw this in 2021 gold stocks kind of leveled off and and the stock market was in this huge bubble what happens is I think people get more aggressive with their with their Capital they’re like gold is like a conservative investment and kind of a hedge and

They’re like no I want to be in crypto and Dooms and and technology and you know AI or whatever it may be the flavor of the day and economy’s doing really well and everything’s booming and money’s loose I think that’s my theory why it’s usually this first TW 12 to

24mth period now in the 2000s gold kept going H right you know higher right until like just before the 2008 crash so that was a bit of anomaly but for the most part you got that 12 to 24 month window I think we might enter a period

Like the 2000s again because debt is so high and when they finish this rate cut cycle at the end of 2024 or into 2025 I think we’re gonna have the SEC second round of inflation now this could be for another video because I don’t want to talk about too many things here but

Inflation Cycles you usually have two or three spikes in the 70s it happened in the early 70s and then it happened in 74 and then again an 80 there were three spikes in the 40s it was the same way there were three spikes probably going to see the second second and third Spike

Sometime in the mid 2020s and then sometime in the late 2020s to early 2030s so that we’re going to see that I think this will be the end of this kind of low inflation I think we’ll bottom out between two and three percent and then begin to move higher because of the

Loose monetary policy that’s coming now in question of how quick they were cut that you talked about we talked about off air and and earlier I don’t know like except the market saying 150 basis points which is pretty aggressive to me with out a big shock in the economy but

Probably 100 basis points I would say at the least you can see in 95 when the economy was strong they only cut 75 basis points I don’t think we’re in that kind of that 90s boom because I think there’s too much debt out there and prices of everything from housing to

Carton of eggs is too high but we didn’t really have inflation in the 90s like that so I do think though 100 basis points and like I said the basic math is they raised about 525 yeah if they take back 50% gets you around 275 to 300 so that’s yeah I think that

That would be ultimately though like over a year and a half but I think 300 to 400 on the FED funds rate or three to four percent is basically good and if that happens and if you get that combined let’s look at gold bugs and sometimes the mentality a lot of people

Think I’m a gold bug and somewhat I am like long term but gold equities Juniors they do well in periods of prosperity and liquidity with the gold price and the stock Mark Rising together 9596 was still the best Junior market I’ve ever seen I started doing this then I was

Only 18 19 years old that was Brix that was Diamond Fields all these huge I’ve never seen Junior stocks do that since then you know stocks that went up a thousand times in value and then the 2000 I showed you 2000 to 2002 but the best market for the Junior market I’ll

Put this chart up a little bit was actually going and you can see the rally continued all the way into 2008 was one of the best years I ever had was in 2006 and that’s when the FED stopped raising interest rates and gold and juniors rocked and then 2009 2011 was

Very good I showed the 2018 to 2020 period 2020 was a great year for juniors and small cap Gold stock so again if we kind of do see this continuation of the bull market there’s no big shocks and and a rally in Gold I think we’re setting the stage especially with gold

Stocks being so depressed by the way this is another reason I think could have like a 2000 to 2008 type period other than consolidations that last year is because gold juniors are never been this depressed going back to say that 2000 period a friend of mine he’s a

Stock broker 70 years old same age as my father he’s been doing this for nearly 50 years since his early 20s and he was like this past year he was like I’ve never seen a market this bad in com combination of the price action and liquidity so I would just say if you’re

A gold bug and you’re always hoping for the stock market to crash I think that this kind of scenario scario If the Fed Cuts rates Market continues to move higher combined with gold rallying I think that’s the best case scenario for us and actually the last thing I’ll say

Is that this recent pullback in oil prices to the low 70s is also positive because we’ve had gold rally the last few months from 1,800 to over 2,000 one reason gold stocks did so well in 2020 was that when oil collaps that’s a huge input cost diesel fuel cost gasoline

Fuel cost for operating drilling you know Etc and if we kind of like see oil you know hover around here and not Rally a great deal I think that’s a good thing because that input cost kind of stays lower while the underlying asset that you’re selling gold and silver rallies

Yeah it seems like these different environments where there’s liquidity and it’s not people aren’t running for the hills by being shocked by any of these big downfall moments in the stock market seems like a much better environment for gold but if you just go to youtube.com

Just so you know that last Scott day we’ll put the link before you’ll get all these kind of videos right yeah you’ll see I’m a travel Vlog nut from my main YouTube page but anyhow um yeah I agree with you all those kind of different scenarios that you’re talking about

These shocks that you see in the market okay 2020 came out of the blue of course the warning signs were there because everyone around the world was closing down their economies because of covid and the US was kind of the last to do so

So us has the most kind of Liber and Laz kind of culture of all the Western countries you go look at 2007 you know all these Banks were blowing up all these bailouts were happening 200 2001 like Enron which was one of the biggest companies in the world at the time was

The biggest bankruptcy in the world at the time in 2001 kind of went you know bankrupt at the time so I I think that um you know that that that sort of thing is is is not happening right now you know we’re seeing there is a rise in bankruptcies because of higher interest

Rates we’re seeing some people struggle to make their mortgage payments especially on the variable rate mortgage because of cost of how but I think that essentially we’re not seeing anything like systematic right now and I think that’s a sign that this is kind of a normal again 2019 it

Happened and we’re kind of used to these emergency rate cut Cycles 2008 2001 after 9911 2020 after covid and it looks like actually for only the second time in that 25 year period you know 1998 the cut rates because of ltcm Crisis right only like the last 25 years this is

Probably out of like whatever the I guess that’s one two three four right cut Cycles this is the fifth one and this is going to be you know only like only the second one where or actually this will the sixth one this will be only the second one that they’re only

Doing it out of basically you know basically they just want to inflation’s come down probably getting some political pressure but they’re just doing it because they have leway now to cut rates remember part of the reason they kept raising rates they were probably just hoping well probably two

Reasons they probably if something broke okay we’re if we’re high up here we have lot of leeway to cut rates and then if something didn’t break they’re like well yeah then we can just slowly cut them so any this is the page like I said and

You’ll see I have a I started really this back in June and any you can go on here look at past these charts I talk about these kind of cycles and the things we’re talking about here and actually I’m starting a new series I’m actually going to do the video right

After we stop this interview here it’s classic Traders and what they do in terms of Trades great trades they’ve had so I’ve done one on Jim dyes I don’t know if you remember who he was he was a newsletter writer he protected that the internet boom back in the 90s I did one

On John Templeton when he bought stocks in the late 30s that boom during the war any know every week or two I do a trade by a great investor and tell you how they came to the conclusion this trade how they did it so it’s a cool thing and

And instead of just talking about a great Investor’s career I’m kind of looking delving in detail into one successful trade that they had and how they came a conclusion to do it and it’s interesting because you know some of these guys are technical people some of these people are fundamental people some

Of them are contrarians some of them momentum Traders so it’s just some of them hedge fund managers some of them newsletters writer writers as you’re talking about that you’re bringing up the idea that Jim dyes had this really long or maybe should have had this really long investment Horizon of of 15

To 20 years so you know do you see good lessons for being able to hold an investment for that long yeah oh yeah for sure I talk about Amazon right and he was a huge Bull on Amazon and yeah here’s the chart right here of Amazon

You can see in the video Amazon went from like 50 cents or so from when he recommended it to $150 in about 25 year period so that’s you know 300 times in your money and one thing I was critical though is dyes had something called The Four Horsemen of

The internet it was exactly what you’re talking about he said just hold these stocks basically forever for 20 years the internet’s the next big thing they’re going to make tons of money these are the four leaders and they were AOL Yahoo cmgi and Amazon now cmgi went

Bankrupt but Yahoo and AOL even though they kind of didn’t become leaders anymore even after the bus over a 15year period to when both companies got taken private AOL was taken over Yahoo just took themselves private because Yahoo had a large holding in Alibaba so basically they were just becoming a

Holding company for Alibaba so make no sense for the stock to trade anymore so they just private you’re still up dozens and dozens of time and then I talked about Amazon but dyes he sold most of them he got stop losses I think the problem with writing a newsletter is and

I I talked about this in the video is and this is kind of why I’ve gone to the stock chart of the day I know it might sound a little ironic because I’m saying it’s stock chart of the day but my own kind of investment philosophy in the

Patreon version of stockchart of the day is like look these are companies I like we’re waiting for maximum pessimism we’re waiting for assets to get cheap and when assets get cheap we’re going to buy these stocks when when things are are cheap and on sale and then you got

To wait whatever three months six months a year or even two years for them to move and then maybe hold them for years as you were saying and the problem with d is he didn’t want say some stock like Amazon you know it went from 50 cents to

They’ve done a split sense to$ Five Doll it was like 100 at the time and then back to 50 cents people are like well you held up and down and and I don’t want to subscribe to your newsletter so you kind of just get it off your list

But if dy’s said followed his original advice just own this forever one cmgi went under but the other three of the four did fantastically over a 15E period and Amazon would have been enough just you know you put $100,000 in at 50 cents do the math on 300 to one right or even

10,000 on 300 to one right it’s like that’s the kind of thing you have to do and it took me a long time to learn that like I didn’t really learned that i’ say the last five years because especially when you’re I started so young when

You’re in your 20s and 30s you want to make this money in 12 months 24 months all of that sort of thing David it would be interesting to kind of get your thoughts on the challenge let’s say of especially when you’ve been looking at gold for so long understanding the

Challenge of trying to stay out of the Doom and Gloom that seems to really inundate the gold space especially and especially as you’re writing a newsletter or you have been writing a newsletter for such a long time how do you kind of stay out of that lane

And try and figure out what’s actually happening versus what the the hearsay is of the time I think it took me a long time too one thing I’m actually in this same video and if anyone wants to write me addicted to profits at hotmail.com that’s no problem because I’ll send you

The exact link to this certain video I talk about how I got involved so basically I read I read this book called bankruptcy 1995 by Harry figgy it was basically about how you know the government was going to go bankr and this was written in 1993 and he was

Totally right on with everything said that the debts actually gone up faster than he thought but of course he Mis calculated because who would have thought that the debt would go from 3 to 30 and interest rates you know to zero like that you know that doesn’t make

Sense right you would think people would want more return on a higher risk asset which is debt becomes as you accumulate more of it so then I got I read Jim Davidson Doug Casey and all kinds of Doom and Gloom stuff so I was kind of

Into that I was a gold bull so I was always poo pooing like new technologies I did trade the internet stocks because I like dyes at the time but you know when when when like 3D printing or or crypto I was always like kind of a

Critic and I think you just have to accept the fact okay you want to be in these sectors with high growth and then have booms you know there’s going to be bubbles in them obviously the question is can you get up the right time if you

Get out a little early I think that’s fine as well so I think you just have to be open and have a positive stance and go look at look at the way we live now I live in Lu Bahamas this isolated island and I have basically high-speed internet

Here I can talk to you you’re and Calgary and 40 years ago if I was going to move to a Luther Bahamas I would basically have to already be rich or I just have to build a house here and maybe come when I vacation because there

Was no technology to do that so what I’m trying to say is the spiral of technology is is upwards and even with all these debt problems and issues we have there’s G to be still be exponential growth going forward in humankind in in technology and that sort

Of thing so you have to be open-minded to that and really izing look for kind of like where the next boom is kind of going to be but I think at the same time this is where being a gold bug comes in is you also have to be aware of the

Adherent risk and this is why the people that are just Bulls get wiped out in all these busts because and I think a lot of crypto people are like this because you know we’ve had two massive busts in crypto okay Bitcoin has held up well but tons of these coins have basically gone

To zero or lost like 99% and I think you have to look the risks are yeah there’s too much debt in the world and at some point it’s going to cause a massive Sovereign type crisis and then there’s going to be drastic measures to sell it

To solve it like you go look what’s going on in Argentina right now this may sound extreme but I think to a certain extent all countries in the west are going to become Argentina where because of this mismanagement and massive debt and a longer term period of higher

Inflation people are some point are going to get sick of it and then look for drastic measures to solve it and you have to be aware that even though I thought this was going to be H happen for decades at some point that will kind of happen so I think that’s where the

Gold you know bug or being a gold bull does play a part right because gold will do very very well when you’re in the endgame kind of spiral of that like you know look what gold has done for anyone in Argentina you know in Argentinian pacal terms forget it’s done great in

Dollars in the last 25 years when it’s gone from 250 to 2000 but you know in peso terms Argentina’s had numerous they defaulted in 2001 they had hyperinflation mostly for the last 10 years and it’s done fabulous same thing anyone living in Venezuela so I think

You have to like be cognizant of the risks but also be open to the opportunities that’s a great way to put it David I think maybe a great spot to kind of wrap up on if if you don’t have anything else that you’d like to leave

Our listeners with no all all all I would ask is like like I said right now go to the stock chart of the day the best thing is I do have sponsor companies that help me run it I do have a small patreon it’s only 70 sorry $7 a

Month but any the best part of stock J of the day just try it out don’t I’m not asking for subscribe just try it out like I said do I do three to five of these videos a week the best part of it like I said is the price it’s free see

The videos and see you know what I have to say about markets and you know what I’ll also do on it I just don’t talk mic macro them themes you know if a big name stock has a big move I’ll make that the chart of the day you know Apple has has

Its earnings I’ll talk about that and the sponsor companies uh when they have news actually Nevada King is one of my sponsors and they recently just put out an interview and you know they’ve had news recently I’m G talk about so you also get some information on some of

These Juniors that I follow and own yeah that that’s basically it like I said it’s very simple it’s YouTube at Scott day I just made it short to make it easier for people to join and that’s it yeah this this is a great conversation I am really trying get away from just

Talking about gold and gold stocks But the irony right now is because starting this rate cut cycle I do think we’re going to be in a great 12 months for gold and gold stocks well I appreciate that you have that perspective that you know not only being solely focused on

The gold stocks you’ve looked at these other areas and identified at this time of course time will tell but at this time it does look like this will be a favorable opportunity for the Gold stock no I think they will be and and like I said they’re they’re really cheap too

That’s another thing to take into hand because there’s been so much price destruction in them I would say like you know the seniors are pretty good value but the Juniors especially are about as cheap of I’ve ever seen them and right now we have this guess we keep saying

We’re gonna end I do like to end on this note with the juniors in particular we got gold over 2000 it looks like it’s going to break out and the Juniors because they’ve suffered so badly at the end of the year here they’re seeing all this tax loss Stelling so they’re even

More depressed like a lot of them are trading you know where they were when gold was 1400 so I think it’s a great opportunity in them of course that’s risk Capital that’s risky money but I think if for your small amount of risk Capital the gold and precious metal

Juniors are probably the best value in the market right now especially in the resource markets absolutely David of course stock charts of the day as you said and David Scara on Twitter as well Dave thanks so much for your time today man yeah thanks this podcast is for General

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