Gold’s STEALTH Institutional Rally…What Happens When the Public Arrives? Maloney & Rule

Gold’s STEALTH Institutional Rally…What Happens When the Public Arrives? Maloney & Rule

the increase that you’ve seen in the
gold price hasn’t come from retail
buying the buying has taken place by
central banks and I think that’s the the
key reason why the gold stocks haven’t
moved central banks don’t buy gold
stocks they buy
gold if you begin to Overlay retail
buying on the Central Bank buying that
you’ve seen uh over the last two years
then I think you see an explosive move
in the gold price and I think at that
point in time it probably carries
through to the stocks too the second
comment that I have for you is that the
generalist investor still can’t spell
gold they don’t
[Music]
care hi welcome to this video I’ve got
Rick rule with me once again Rick how
are you doing Mike uh things are going
very well the better of course for being
able to visit with you thank you yeah
you’re prepping for a conference you’re
in Carl’s bed right now Carl yes we have
a uh our quarterly boot camp tomorrow
boot camps are eight or eight and a half
hour long uh online sessions covering
one or another Topic in natural resource
investing very very thoroughly which is
like to say eight hours on one topic
tomorrow is exploration and Prospect
generation the prospect generation uh
companies are a subset set of
exploration companies that are
statistically uh pretty obviously the
most likely to make you money of any
subset of exploration
speculation uh so I I welcome uh any of
your subscribers who would like to
attend the boot camp although this is on
fairly short notice but anybody who
wants to review the material uh will’ll
have the recordings up for a year at the
rle classroom uh for people who are
serious serious uh mining speculators
these boot camps are absolutely
invaluable an eight or eight and a half
hour long deep dive on a subject this
one will feature as the keynote speak
speaker Dr Steve
Enders uh Dean at the Colorado School of
Mines dean of exploration former
worldwide head of exploration for new
for numont largest gold mining company
in the world before that head of
worldwide exploration for Phelps Dodge
largest copper Mining Company in the
world that keynote speech by itself will
be worth the cost of admission and of
course anybody who pays for any rule
investment media educational product
that doesn’t think that he or she got
their money’s worth has a goldplated
money back guarantee if you pay me the
tuition and you didn’t think I deliver
just email me I’ll give you the money
back yeah you’ll give them the currency
back I I don’t call it money because it
doesn’t store value the if it’s measured
in any Fiat unit fiat currency unit
anyway uh so with gold soaring I would
imagine that the uh gold and silver
soaring interest should be explosive in
this area is it or is it because you
know most people like I haven’t been
asked much about uh gold or silver I
haven’t been asked to speak on it I
haven’t had a phone call or an interview
or anything during this whole break out
Ronnie stet the same thing uh everybody
that I talk to that’s in this sector
this is like the uh the stealth rally
it’s it’s invisible to most people I
think it’s it’s
bizarre I have three comments to that
Mike uh the first is that the increase
that you’ve seen in the gold price
hasn’t come from retail
buying uh in fact if you look
statistically at the precious metals
ETFs what you’ve seen is retail selling
uh in Europe and the United States the
buying has taken place by central banks
and I think that’s the the key reason
why the gold stocks haven’t moved
central banks don’t buy gold stocks they
buy
gold if you begin to Overlay retail
buying on the Central Bank buying that
you’ve seen uh over the last two years
then I think you see an explosive move
in the gold price and I think at that
point in time it probably carries
through to the stocks too the second
comment that I have for you is that the
generalist investor still can’t spell
gold they don’t care they think that in
uh an inflationary period that they do
better uh with technology companies that
have high operating margins that the
best cure the best uh you know uh guard
against inflation is a hugely profitable
business
there’s some truth to that you know
Buffett did extraordinarily well through
the decade of the 70s uh by focusing on
companies that had pricing power uh and
I don’t discourage people from looking
at that but I also do think that people
need to pay much more attention to uh
inflation protection that is easy to
understand the difference between
gold and say
Nvidia uh is that it’s pretty easy to
pron and understand gold and Nvidia I
just hope I got right the third comment
I would have uh however is that interest
in Gold among young people uh and
non-traditional people is increasing
very rapidly at my own site rule
investment media I’m getting an average
of 40 new subscribers a day and they
aren’t the
old old bald fat white uh God guns and
gold crowd uh the new audience is at
least 35% female and more than 50%
non-north American so I think it’s
important that the gold industry and the
gold mining industry begin to address
new
audiences uh I think that’s very
important what you’ll find is that
interest among people under the age of
40 in gold and silver is explosively
high measured by my own database
yeah but still as a percentage of uh
Global investment uh it’s still way way
down I was just looking at a chart from
CI Costa that showed it at
1% where back in the uh in the 20s in
the in the 80s and uh uh there was
another bar in there I can’t remember
when it was from but it was up at about
30% was the average uh when you include
the miners Miners and precious metals
yeah um I I got very different numbers
than Tavi’s and they’re worse uh my
numbers are from JP Morgan Chase uhuh
and JP Morgan Chase suggests that the
market share of precious metals and
precious metals investments in the US
market where JP Morgan Chase can track
it is estimated to be below one half of
1% which is to say suggest that less of
less than one half of 1% of all savings
and investment assets
uh in the United States are combined are
pardon me comprised of precious metals
and precious metals related Investments
what’s interesting about their
statistics is that they theorize that
the four deade mean market share was
2% so if you merely revert to
mean demand for precious metals
increases fourfold in the largest
savings and investment Market in the
world to put that in context the US
market controls between 22 and
23% of savings and investment assets on
the globe including foreign investments
in the United States if you had
reversion to mean you would see a
quadrupling in demand in a market that
comprises between 22 and 23% of the
total market for savings and investment
assets on the planet that’s precisely
what I think is going to happen which is
one of the reasons why I’m so bullish
about gold and silver
yeah well when you couple that with you
know it’s priced in dollars uh and uh as
the dollar price Rises what’s going to
happen with the second largest economy
and the third largest e you know what’s
going to happen in China and Europe and
Japan and Australia and New Zealand and
everywhere else on the planet you know
as they you know measured in all
currencies uh gold was setting record
highs long ago it wasn’t just like like
a recent phenomenon uh when you measure
it in the dollar that’s where it was
lagging and with the explosion that is
happening right now and uh you know the
dollar has been rising though too
recently so uh that causes it in other
currencies to not be quite as
spectacular but it’s been spectacular
Rises all across the planet and after a
while uh people are going to really
start taking notice they aren’t yet it
it’s just it is totally bizarre and I
think you’re right it’s it’s the Central
Bank buying it’s a lot of Asian buying
uh and uh I just what I see isn’t just
four times more you know the uh current
demand to get back to the uh mean but
it’s it’s there’s always an overshoot
and with gold if there is fear if
there’s a currency crisis the overshoot
can be quite
dramatic I I agree with everything that
you said what I would like to do in
terms of my discussion uh about the gold
market is uh keep expectations rational
uh keep expectations real remember that
prices are set on the margin they aren’t
set through the whole value chain uh a a
four times change in
demand uh given that not all of the gold
that’s held is held available for sale
could have dramatic increases in price
JP Morgan Chase also estimates and they
say it’s an estimate because they didn’t
have accurate records then that in 1980
and
1981 that they believe the market share
for precious metals and precious metals
related Assets in the US market was
above five and quote perhaps
substantially above
5% so if rather than merely returning to
mean in the US market if demand for
precious metals or rather pardon me if
precious metals market share uh took out
the old nominal highs uh then you have a
truly goofy number the truth is however
that too many gold positive channels uh
try to appeal to people’s emotions uh
they try to give them really wild
clickbait headlines and I don’t want to
do that uh I want my audience to be
prepared for simple arithmetic and the
simple arithmetic is dramatic enough yes
it is uh you know I like uh doing ratios
and uh Dow gold ratio for instance uh
you know gold can go up X number of
times or the stock market can come down
by X perc or a combination of the two
which is what it’s going to be either
way uh the
1980 uh ratio will probably be
revisiting somewhere near that range in
my opinion but with all of the
underlying fundamentals that we’ve got
going on right now with the economy and
with with the precious metals I think it
could exceed the 1980 ratios which means
that gold will buy you many times more
shares of stock or uh you know many
times more real estate than it does
currently uh that’s the the D
uh the everybody wants to know the price
because everybody thinks in dollars
right and it’s really the wrong way to
look at things what you want to look at
is value not price how much stuff can
you get per
ounce right it’s interesting that you
say that Mike I have some of my money
managed by a multif family office uh I
wanted to get that money out of my own
hands uh because I don’t invest in the
broad econom with the exception of a
fairly large shareholding in Berkshire
Hathaway uh and what I asked this family
office to do is prepare an alternative
Ledger for
me uh looking at the portfolio in Gold
terms in other words don’t denominated
in dollars just for fun uh denominated
in gold and uh interestingly the
portfolio manager called me up the other
day and said as a thought exercise I’m
going to begin to I’m going to introduce
this to the other clients
of this multif family office so uh
through that one little exercise uh I’ve
managed to introduce the concept of
measurement in Gold to uh well an excess
of 12 billion doll which was fun wow a
Gorilla Marketing
exercise so with all of the geopolitical
conflict that we’ve got going on hi I
just wanted to take a moment and thank
you for subscribing and Men that if
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now back to the video so with all of the
geopolitical conflicts that we have
going on you know we’ve got the Middle
East we’ve got the Ukraine uh we’re
close closer to the nuclear war than
we’ve ever been since the 60s I mean how
do you see this playing into you know we
were talking about the gold
price can be hugely affected by how much
currency is created to fund
War so in my experience the immediate
impact uh of a very a variety of
fears could impact the precious metals
price um looking at history the most
most important variable is the one that
you track which is to say the fear that
Savers and investors have about the
maintenance of their purchasing power in
Fiat currencies in the very near term I
think what happens I think I’ve observed
this over 50 years being involved with
investors is that as investors begin to
feel the fear associated with the
deterioration of their purchasing power
they use any psychological excuse to
express that fear and so war or the
threat of War becomes the excuse to
exercise a strategy that they were
already considering as a consequence of
financial fears now the second part of
your statement is very
profound the uh want of societies around
the world to exercise their political
will given the unwillingness of their
own citizens to pay for it means that
they have to borrow or they have to
print to wage these wars printing new
specious currency
units without doing anything to increase
the underlying value of the
economy uh always always undermines the
value of the existing currency units if
you have let’s say a trillion currency
units call it what you want let’s call
the mics just for
fun and Mike decides that he’s going to
print uh 200 million or pardon 200
billion more mics to keep the trillion
already inexistence company without
doing anything to increase Mike’s net
worth uh or uh his income or the utility
he generates what he’s done is basically
devalued the existing stock by the
amount that he’s added and there’s no
particular difference between a mic and
a dollar you know they’re both specious
currency unit
the difference I guess is that the you
know the the dollar has an army and a
Navy behind it and Mike is somewhat more
peaceful but that’s that’s the only
difference right and you know um yes the
Army and the Navy uh lets basically them
uh just hand out these uh digits printed
on paper but if you go around with a pad
of Post-its and uh and make out IUS all
over the place and put various uh uh you
know numbers on them and hand them out I
think the Secret Service will show up at
your door won’t they when you isn’t it
the Secret Service that investigates
counterfeiting and uh uh but you’re in
trouble any way you look at it
absolutely and I I I challenge any of
your
um uh
listeners to explain to me how
quantitative easing isn’t
counterfeiting other than who does it
that brings up another uh topic about
scarcity and value you know Pablo
Picasso used to on occasion go to a
restaurant look at the bill get a piece
of paper and draw a Picasso a currency
so let’s say that the meal was 50
Franks uh he would draw a 50 Picasso
Frank thing on a piece of paper and give
that to the restaurant owner in lie of
50
Franks and the understanding that I have
is that those uh counterfeit
picassos are worth uh an average of a
thousand
times what the face value of that was so
in some senses depending on the provence
of the issue or you’re better
off with the counterfeit then you would
be with the
real uh I guess you know that uh is
because it’s mited in Supply it’s a real
corre also correct he was a better
engraver you
know
yeah okay so you have another event uh
coming up as well in the future uh tell
us about that real quick boy you’re
giving me a lot of excuses for
commercials today thank you very much
Mike um the uh rule natural resources
investment
Symposium uh takes place July 7th
through 11th in boa ratton we’ve been
doing this conference for almost 30
years Mike I’m embarrassed to say I’ve
been doing it for so long I forget how
long I’ve been doing it wow and I
believe that it is the best natural
resources uh investment conference on
the planet four days you can attend
online in Boer pardon me in person in
Boer Raton or online from the comfort of
your own home why should you do this
well first of all great big picture
thinkers
uh Jim Rickards Daniela D Martina Booth
Nomi Prince Bill Bonner uh Grant
Williams someday hopefully by the way
Mike Maloney but that’s a different
story people who talk to you about the
world the way it really is not the way
that CNBC or ABC or congress wants you
to believe it is beyond
that uh great natural resources analysts
people who’ve been making money in the
sector through good market and bad for
30 years beyond that my favorite feature
uh the Living Legends The Living Legends
are a group of people who have built
multibillion doll mining companies from
scratch telling you what they did right
what they did wrong and how the lessons
they learn makes them better investors
and can make you a better investor too
and then of course there’s my exhibitors
uh at every other investment conference
on the planet exhibitors are advertisers
the qualification to exhibit is a check
that cashes at my conference uh if the
exhibitors the public company exhibitors
aren’t owned in accounts owned and
managed by me they can’t come no
guarantee that every stock I buy goes up
but there’s an absolute guarantee
they’ve been
vetted because I’ve written a
check uh the upshot of all that uh is
that at that conference whether you
attend live or in person two great
features you have access to the
recordings for a year because you’re
going to need them we’re going to give
you more information in 50 hours over
four days than you can ab absorb in 50
hours in four days but also if for any
reason
whatsoever whether you attend in person
or online if you don’t think the
information that we give you is worth
the tuition that we charged you
simply email me and you get a
goldplated 100%
refund excellent sorry I had my mic
muted uh it just started pouring here
and the background noise went way up so
I think we’re going to sign off here I
want to thank you so much for this
interview it was very
enlightened well Mike I want to thank
you for having me back on your show and
I want to thank you too for all of the
work that you’ve done uh on behalf of
investors and folks like me for all the
years that you’ve been doing it we’ve
known each other for a very long time
and from my point of view at least it’s
been both a pleasure and an honor to be
on your show I think we met about 20
years ago I I’ve really enjoyed every
minute that we’ve spent together I want
to thank you so much and uh we’ll sign
off now so thanks Rick thank you Mike

Rick’s Bootcamp link: https://events.ringcentral.com/events/rick-rule-2024-spring-bootcamp?utm_source=aff&utm_campaign=33
Rule Investment Symposium link: https://opptravel.zohobackstage.com/TheRuleSymposiumonNaturalResourceInvesting2024#/?affl=MikeMalony Join us in this thoughtful discussion with investment expert Rick Rule, who sheds light on the understated yet steady increase in gold prices driven by central bank purchases. What might unfold as individual investors begin to engage more with gold? 🌍✨
🔍 Key Takeaways:
The significant role central banks play in the current stability of gold prices.
The potential effects of increased retail interest on the prices and stocks of gold.
Insights into why broader investment circles may overlook gold despite its potential during inflation.
The changing demographic profile of gold investors, pointing towards a more diverse and younger audience.
Future expectations for gold investment demand and its implications for the market.
💬 Rick Rule provides a serene yet profound overview of the gold market, combining years of expertise with the latest market data. This video is perfect for investors seeking to understand the nuanced dynamics of the gold market without the hype.
📚 Extra Features:
Preview of an upcoming intensive boot camp on natural resource investing.
Details on how to access these educational opportunities to enhance your understanding of the market.
👉 Don’t forget to subscribe for more insightful discussions and hit the like button if you find our content helpful. Share your views in the comments about where you see gold heading next!
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