Why Gold Is on the Brink of a Historic Surge

Episode #333 | October 30, 2023

Episode #333 | October 30, 2023

Why Gold Is on the Brink of a Historic Surge

In This Episode

On this week's Stansberry Investor Hour, Dan and Corey are joined by Rudi Fronk. He's the chairman, CEO, and co-founder of Seabridge Gold (SA). With a track record of outperforming gold and other gold equities, the company has earned its reputation as a compelling option for those looking to ride the golden wave.

Dan and Corey kick off the podcast by discussing the latest numbers for gross domestic product ("GDP") and the core personal consumption expenditures price index. GDP came in hotter than expected, and consumer spending was still relatively high in September. Both Dan and Corey note that just by looking at these numbers, you wouldn't say there's a recession afoot. But as Corey points out, even though these numbers may appear strong, everyday Americans are still feeling the pain...

If you ask most people on the street whether things are going great, I don't think they would [say they are]... I think they would say, "Inflation is still pretty strong and my pay is not going up."

Dan and Corey also explore what they think the Federal Reserve will do next and what will happen to the stock market. They highlight the troubles brewing in the S&P 500 Index and question the age-old investor advice of "buy the dip." As Dan shares...

I worry about that. I worry about people thinking every decline is a buying opportunity.

Next, Rudi joins the show to chat about Seabridge Gold, the outlook for the gold market, and risk within the industry. Rudi emphasizes that Seabridge is not a mining company, and it instead partners with major mining companies to co-develop assets while retaining around 40% to 49% interest in projects. As he comments...

It's all about optionality and leverage to a rising gold price. An ounce of gold in your pocket is worth more than an ounce of gold in the ground.

Rudi mentions that gold companies tend to do all their deals when the market has hit the top. That means they overpay. He also discusses how gold is priced...

It's not annual supply-and-demand fundamentals that determine the gold price. It's what is gold worth relative to other financial assets.

He believes the current challenges in the Treasury market as well as hedge funds using leverage to accumulate positions will ultimately drive gold prices to new heights. Rudi boldly predicts that gold will surpass its previous all-time high of approximately $2,063 an ounce by the end of this year. Moreover, he details why he foresees gold's price surging to multiples of its current value over the next few years.

Rudi concludes by explaining why it's so difficult for mining companies to turn a profit and why so many of them never get any dollars out of the ground. "I don't have a high respect for most of my industry," he says simply. If you're interested in investing in the gold industry or just want to know more about it, don't miss this week's show.