Gold Is Thriving, but Silver Needs a Recession

Episode #322 | August 7, 2023

Episode #322 | August 7, 2023

Gold Is Thriving, but Silver Needs a Recession

In This Episode

On this week's Stansberry Investor Hour, Dan and Corey are joined by Patrick Yip. He's the director of business development at the American Precious Metals Exchange ("APMEX"), the largest online precious metals dealer in the world. Patrick also helped launch the Bullion Card, the first precious metals rewards credit card.

Dan and Corey kick off the podcast by discussing the latest news surrounding the U.S.'s credit downgrade. Dan voices his skepticism about the significance of this downgrade, suggesting that it's kind of a joke. Next, they cover the recent jobs report and the implications of unemployment levels reaching a historic low. Corey says that if unemployment stays low and salary growth keeps accelerating, the Federal Reserve will hold rates where they are and possibly even raise them. He comments...

If we continue down this path where inflation is higher... rates go higher... where does that end up? The higher stocks go in the meantime, I think the riskier things get.

Then, Patrick joins the conversation to talk about the silver and gold markets and their respective prices. He notes that there's almost a lack of interest in precious metals right now, which has led to them being undervalued. Gold is still doing relatively well despite this, but other precious metals may need more of a boost. Patrick believes that a recession would give them the chance to appreciate significantly in the coming years...

I think there's a point in time when the U.S. is going to go into a recession. When the Federal Reserve starts reducing interest rates again, I think you're going to see gold run... and then silver [will run] after gold to a greater extent.

With regard to the role of the U.S. dollar as a global reserve currency, Patrick raises concerns about the dollar being weaponized for political agendas. This would prompt investors to seek refuge in gold and silver. Patrick also delves into the nuances of choosing between coins, bars, and rounds in the precious metals market. And he offers practical advice for investors based on their individual preferences and investment goals.

Then, Dan asks Patrick about the idea of minting a trillion-dollar platinum coin as a way to avert the debt ceiling...

There's a legal loophole allowing the Treasury to mint platinum coins in any denomination the secretary chooses. Yes, it was intended to allow commemorative collectors' items. But that's not what the letter of the law says. And by minting a $1 trillion coin, then depositing it at the Fed, the Treasury could acquire enough cash to sidestep the debt ceiling while doing no economic harm at all.

To hear Patrick's opinion on whether this proposal would work and what would happen to the price of precious metals if the government were to mint such a coin, check out today's podcast.