A Smart Take On Today's Market

I just hung up from a very long talk with an 81-year-old shareholder, named Don.

(The joys of being on voluntary, post-PDAC, COVID-19 isolation for 14 days.)

Investor Relations people all over know the feeling. Global markets are tanking, your entire screen is red, and suddenly your phone is buzzing with someone who owns a lot of stock.

He starts by asking ...if I’m okay.

Days like today, lead to thoughts of, “he’s about to make me not okay.”

But he says, “Listen to me Sean. The best part of being really fricking old is, you’ve seen it all before. Don’t fret, this will pass. As a matter of fact, I think it’s going to be great for gold stocks.

He went on to explain "that things, particularly in the US, have been so strong for so long that something was bound to knock them back and this virus is it.

“With the Federal debt about to top $3 Trillion, we’re about to find ourselves in a position where no one will be able to lend us money because they’ll all have their own problems. The only thing left will be to print money and this will send people running to gold shares. Same as the dot.com crisis. After that stuff, ...no one will do that again...They won’t run to anything but gold, ...that’s what they’ve done in the past, that’s what they’re going to do again.”

Gold does really well when interest rates are negative and when you subtract from inflation, no one will want to hold money, but they will all want to hold Gold.”

He said his friend, Eric Coffin suggests that when you look at the last sixty years...when the real yields are low, gold does really well.

“What’s ironic, is when inflation gets higher, the market itself will cause interest rates to go up...which will, in turn, cause them to print even more money.

Everything that happens, like this stupid virus, causes the government to do more of what put them into the problem in the first place. And THAT will be good for gold, ...and even though the politicians will never admit that they were wrong about what they were doing and saying, it's that lie that has contributed mightily to where we are.”

He went on to say Warren Buffet says, “the daily price is just noise. All I need is for the markets to be open one day a year because everything else is noise.”

“Don’t worry about your gold stocks today, because people are just overreacting to today’s volatility.”

Then he laughed and said, “look at all this crazy weed thing. A bunch of people who never grew a thing...are suddenly in the agriculture business...no different than wheat or anything else....people raised all this money and now they’re going bankrupt and any idiot could have predicted this...they must have been smoking the stuff.....Not me, I’m sticking with the golds....you guys just get drilling, ...drill the @$!@% out of it and I’m with you.”