David Garofalo: Gold Has What Bitcoin Does Not

• Palisades Gold Radio
  Tom welcomes a new guest David Garofalo CEO and President of Gold Royalty Corp., to the show. To subscribe to our newsletter and get notified of new shows, please visit http://palisadesradio.ca
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  David discusses how mine reserves have declined for the past decade, and little capital expenditure has occurred. The industry has been focused on deleveraging and on delivering returns to investors while improving their balance sheets. Now the industry needs to reinvest in new mine development. Mines have done almost too good a job of cutting costs but the majors will need to acquire mid-tier junior to gain resources. We’re going to see rapid cost inflation in the industry. We’re in a sustained period of lower interest rates. Even if rates rise, it is unlikely to change the bullish outlook for gold especially given the amount of money being printed. The reality today is that sovereign debt has no yield, so in contrast, gold looks very good. It’s important to understand that gold has been recognized as money for millennia and all the ingredients are in place to see gold rise much higher from here. He believes silver has even greater potential and will likely outperform gold. David outlines the copper potential within Gold Royalty’s portfolio of gold properties. These properties are going to become extremely attractive.
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  Copper demand is predicted to see unprecedented growth as electrification and urbanization continue globally. There is inherent optionality with gold, but there are few mid-tier producers with copper juniors. Copper assets tend to be more scarce and much more capital intensive to develop. A new generation is looking for ways to protect capital, and they see bitcoin as a preserver of capital. He argues that gold is finite, unlike the ability of tech developers to create numerous new cryptocurrencies. Money is almost free right now and chasing a limited number of tangible assets. He believes royalty companies are an excellent way to gain exposure to the gold space. Time Stamp References
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  0:00​ – Introduction
  0:33​ – Resource Development
  3:32​ – Takeovers/M&A
  5:28​ – Scale & Diversification
  6:17​ – Past Lessons
  7:34​ – Juniors Raising Capital
  8:30​ – Royalty & Juniors
  11:43​ – Gold Minings Portfolio
  15:12​ – Sustainable Business
  16:12​ – Majors & Acquisitions
  16:54​ – Gold Fundamentals
  18:25​ – Gold, Price, and Yield
  20:07​ – Silver Opportunity
  20:44​ – Copper Plays
  23:35​ – Bitcoin Vs. Gold
  26:04​ – Gold Outlook
  27:05​ – Royalty Opportunity
  28:11​ – Wrap Up
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  Talking Points From This Episode
  – Mining Sector Balance Sheets
  – Depleting resource bases of large companies.
  – Gold and silvers expected performance
  – Gold Royalty’s properties and plans.

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