Christopher Aaron: Important Turning Point in the Metals

• Palisades Gold Radio
  Tom welcomes back to the show, Christopher Aaron. This is a re-release due to a mistake in the graphics. To subscribe to our newsletter and get notified of new shows, please visit http://palisadesradio.ca
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  Christopher explains why it’s important to understand what is going on with precious metals and inflation over the past eight months. Any time there has been news supportive of the economy we have seen the opposite reaction by markets. Reports of high inflation have resulted in metal sell-offs and the dollar moving higher. This is backward from what one might expect. The market seems to be pricing in future responses from the Fed. We’re coming to a turning point where the psychology of markets shifts. The problem today is not the CPI but the debasement of the currency. Most of the measures taken by central banks are magnifying inflation. Sentiment in the metals sector has been quite terrible for the last year. That may be shifting just in the last few days. He recommends looking for companies that have great exploration potential but be sure to not overpay. Look for companies that are just rounding off the bottom.
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  He gives us an overview of the GDX and how it’s influenced by investor psychology. GDX companies are heavily leveraged to the price of the metal and there are signs of capitulation. This appears to be a possible entry point for the market. Christopher examines the long-term gold to DOW ratio. Eventually, we will see a reversion to the one-to-one ratio. We are bumping up against a historical chart trend and it’s possible that gold will begin to outperform the general equities. Investors will want to watch this carefully. The decade-long rising trend for the dollar has broken but has not started a declining phase so far. The dollar is failing multiple attempts to rally. Eventually, it will break to the downside. This is likely the driving force behind numerous commodities that are heating up. Lastly, Chris highlights the need for real education in understanding fiat systems because there is an enormous wealth transfer to the rich. The wealthy are directly benefitting from inflation. Now is the time to prepare your lifeboat because there is trouble coming for the dollar. Time Stamp References:
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  0:00 – Introduction
  0:37 – Inflation & Metals
  5:18 – Analyzing Inflation
  8:56 – Metrics & Noise
  10:50 – Psychology & Sentiment
  16:00 – GDX Chart
  22:23 – Long-Term Charts
  23:40 – Dow Gold Ratio
  33:26 – US Dollar Chart
  41:42 – Elite Private Placements
  48:48 – Anti-Fiat Education
  56:49 – Wrap Up
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  Talking Points From This Episode
  – Metals market overview and inflation expectations.
  – Outlook for the dollar and commodities.
  – Investor psychology, sentiment, and capitulation.
  – Need for additional education in fiat money systems.

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