Another Precious Metal

VERUMSTANDARD.COM

A Partner of Liquid Holdings and The 10

45 Rockefeller Plaza 69 th Floor , New York, NY 10111, United States

Call 646.953.3332

73 Market St, Venice, CA 90291

Call 310.307.2538

Design Offices Berlin Humboldthafen

Alexanderufer 3-7, 10117 Berlin, Germany

1 Pesmazoglou Street, Athens 10559, Greece. 

 Another Precious Metal

Platinum became so cheap that it has major industrial applications, which make it even more scarce. But it works just as well as a store of value in a collapsing paper money system

“That’s too risky!”

I was at a youth cricket match the other day, talking to one of the other dads, who has a job in finance. When he found out I’m an investment strategist, he wanted to know what I recommend.

“100% precious metals, energy, shipping and cash. We don’t hold any bonds or stock market indexes,” I told him, bracing for the reaction.

“What!? Are you crazy!? That can’t be your advice! That’s insane.”

“Well, okay, it’s not to everyone’s taste…” I said. I tried to change the subject...

Greetings from London!

The paper currency system is failing. The managers of some absolutely gigantic pools of savings — probably in Asia — are beginning to lose trust and confidence in it. Gold is the best and most obvious store of value outside the paper currency system and it’s getting bid.

Today, the Financial Times reports that central banks accelerated their gold purchases in 2024. Gold has now overtaken the Euro as the world’s second most important reserve asset for central banks. Here’s the full article. It’s not behind a paywall.

When the paper money system actually fails — and savers start rushing for the exit in fear — gold is going to soar. I’ve been waiting for this moment since I first started reading Richard Russell, Chris Weber and Bill Bonner’s newsletters in 2002. I started accumulating gold when it was $300 an ounce.

Everything the gold bugs said would happen is happening. The key to this next stage is patience.

We’ve been in this trade for over twenty years. This could play out positively for us for twenty more years...or two...or ten. There's no telling the size and pace of the moves. But the Primary Trend is our friend. To make it as easy as possible for us psychologically, I’ve always recommended physical gold, which is much easier to keep hold of.

We are not selling under any circumstances…until the Dow/Gold ratio goes below 5. If we were to sell now, we wouldn’t be able to get back into the trade ever again. We’d have lost our position. I’ve made the mistake of selling early before and learned the lesson. This time, I’m holding on to the very end of the bull market.

Now the gold trade is evolving. Capital is starting to flow into silver, platinum and mining stocks because we’re entering the more advanced stages of the bull market. This is the pattern. And it’s also exactly as the gold bugs said would happen. I like to think we’re in the sixth or seventh inning of gold’s bull market and we’re now moving into the parabolic stage.

I screwed up the gold mining trade. We hit stop losses on the four gold mining stocks we owned last year, just as they were about to take off. Now I have a scar. Once you lose your position in a bull market, it’s hard to get it back.

But we own a pile of silver and platinum. We’ve held silver since we launched this newsletter. But we added platinum on February 6, 2024. Platinum is far scarcer than gold. (There is 30x more gold in the Earth’s crust than platinum.) In the early 70s, platinum was five times the price of gold and as recently as 2009, platinum was double the price of gold. Now gold is three times the price of platinum.

Platinum became so cheap that it has major industrial applications, which make it even more scarce. But it works just as well as a store of value in a collapsing paper money system.

Here’s the chart of platinum. It’s up 38% this year, ahead of gold (up 27%) and silver (up 25%). I bought physical platinum from a few different places including Costco (using a credit card that offered 2% cash back) and from Van Simmons, my regular ...