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Speaker 1: Hey, everyone, Welcome to another episode of the Market Disruptors Show. Today,

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Speaker 1: I am sitting down with Frank Holmes. He's an investing legend.

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Speaker 1: I'm super excited to sit down and talk with him.

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Speaker 1: He is the CEO of US Global Investors, a billion

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Speaker 1: dollar fund. UM really a lot of focus on precious metals.

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Speaker 1: He's won multiple awards. I think he can tell us

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Speaker 1: but a more and more awards, more gold awards than

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Speaker 1: anybody else. UM. He's regularly on on TV, CNBC, Fox, Kicko, News, etcetera. UM,

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Speaker 1: someone I've been following for a really long time. And

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Speaker 1: of course you know, I always love to try and

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Speaker 1: get as much as I can from people like Frank.

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Speaker 1: So I appreciate Frank for joining us today. Thank you

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Speaker 1: so much. With Mark. Yeah, so, Um, Like I said,

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Speaker 1: I've been following you. I I see you around. I

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Speaker 1: look at your predictions and what what your fund is

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Speaker 1: investing in. UM and I gave you a short intro.

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Speaker 1: But for those that don't know who you are, just

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Speaker 1: give us a little bit of background, UM about precious

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Speaker 1: metals and your fund and stuff. Well, Mark, I'm originally

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Speaker 1: a Canadian, so I've been living here a thirty years

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Speaker 1: so I'm a text. Can y'all come back a and

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Speaker 1: and so that experience in Canada is Toronto is something

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Speaker 1: like sixty percentable mining finance in the world and it's

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Speaker 1: a real strong hut. And that helped me coming down

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Speaker 1: to Texas mind control of US Globo and repositioning and

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Speaker 1: so it just wasn't a gold complex of no load funds.

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Speaker 1: That it was also in first to go into Eastern

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Speaker 1: Europe fund, first to go into a China region fund,

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Speaker 1: So trying to be a pioneer, but being first where

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Speaker 1: we see big macwill forces taking place. We created the

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Speaker 1: Eastern European Fund because we saw the EU being created

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Speaker 1: and the Europe being created, and we said this will

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Speaker 1: be an unleashing of all this intellectual capital and and

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Speaker 1: trillions of dollars and a one you know. And basically

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Speaker 1: that fund went from four four million dollars up to

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Speaker 1: over a bigg in dollars of assets. Wow, that's that's good. UM.

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Speaker 1: I mentioned briefly, so you said that you kind of

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Speaker 1: took it from just just a gold only fund and

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Speaker 1: you've kind of grown that, UM. But I did kind

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Speaker 1: of mention briefly that you've won a bunch of gold awards,

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Speaker 1: I know, like Mining Man of the Year, um, some

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Speaker 1: things like that. I mean you've really been involved in

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Speaker 1: the gold space though a lot. Well, I've been so blessed.

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Speaker 1: Uh growing up in Counada and Toronto particular, and having

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Speaker 1: mentors like Pier less And who created the GLD when

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Speaker 1: he was the OSSO Honorary Chairman of the World Gold Council,

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Speaker 1: uh seymour Shoe like the biggest platforms in Canada. Those

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Speaker 1: two guys put together and create a Franklin about the

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Speaker 1: largest gold royalty company in the world. I took that

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Speaker 1: company public and eating three was my first deal. So

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Speaker 1: being mentored by these thought leaders, I'm very blessed. And

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Speaker 1: and then knowing the whole from Junior Exploration up to

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Speaker 1: Senior Production and Barrick Nulance, all these stocks in Canada.

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Speaker 1: At one time we were the primary market makers where

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Speaker 1: you put up capital the old days on the four

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Speaker 1: of the stock to change for all the gold stocks.

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Speaker 1: So I have a long term relationship with this industry. Wow,

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Speaker 1: that is uh that, I mean those are those are

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Speaker 1: the giants. I mean Barrick is the company that that

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Speaker 1: Warren Buffett just invested into. Um, what what do you

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Speaker 1: have any opinions or any thoughts on that. I know

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Speaker 1: a lot of people were shocked he entered gold. I

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Speaker 1: made a video, well he didn't just buy gold about

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Speaker 1: a gold company. What do you think about him buying

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Speaker 1: into Barrick? Well, I think he's he was I guess

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Speaker 1: missing all the action, but I think the formal experience

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Speaker 1: he was going through was by his investment team saying

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Speaker 1: it's just unprecedented as money printing. And I've been talking

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Speaker 1: about the G twenty financial cartel. Uh, the finance ministers

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Speaker 1: and the central banks of the G twenty countries meet

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Speaker 1: on a regular basis, and they don't care what the

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Speaker 1: prime minister of president is. They have their own network

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Speaker 1: and fighting this invisible war called the coronavirus. They're all

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Speaker 1: collectively shoulder by shoulder printing money by the trillions, and

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Speaker 1: and and that is basically a key factor for all

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Speaker 1: commodities and particular goal as an asset class. He does

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Speaker 1: believe in buying production, So what does he buy? I

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Speaker 1: always thought, if you looked at this financial metrics, newmonts

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Speaker 1: more attractive than Barrick. However, Mark Bristol is a CEO

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Speaker 1: and I was a seat held of creating his company

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Speaker 1: ran Gold over twenty years ago. Mark Bristos a pH

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Speaker 1: T and Platinum. Mark Bristo is a guy's guy. He

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Speaker 1: likes to go hunting, he likes he used to go

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Speaker 1: to sell Texas at a regular basis. But he's a

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Speaker 1: very smart guy and he has a big time vision.

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Speaker 1: So I can see Buffet betting on the jockey in

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Speaker 1: addition to the horse, because he's really focused on FreeCast

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Speaker 1: blow yield and Newmont is now free cast blow yield. Uh,

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Speaker 1: and any of those companies that really focus on building

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Speaker 1: free coast where you know, are getting buyers outside of

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Speaker 1: the gold arena, like Warren Buffett and they're seeing the

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Speaker 1: general is coming to buy those stocks. Yeah. Now, for

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Speaker 1: everybody that's listening, Um, Frank is uh, he's already filled

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Speaker 1: you in on his background. I mean he's he's he's

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Speaker 1: he's the guy in this space. So I do want

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Speaker 1: to nail you down on kind of where you see

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Speaker 1: the gold price going. Um, and then I want to

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Speaker 1: drill down past like gold price and we'll get into

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Speaker 1: better ways to play gold, talk about gold mining stocks

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Speaker 1: and stuff like that. So for everybody listening, make sure

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Speaker 1: you stay tuned because we are going to get into

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Speaker 1: some of those uh specifics, but I want to just

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Speaker 1: spend a little bit of time on what you just

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Speaker 1: said and really the bigger picture, like the catalysts that

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Speaker 1: are pushing this forward. And so before we get into

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Speaker 1: those kind of specifics, we'll talk about your big thinking.

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Speaker 1: And I know I've seen some of your videos and

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Speaker 1: and your fund is kind of like this macro fund.

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Speaker 1: And I watched one of your talks where you're talking

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Speaker 1: about UH, these you know, a top down approach and

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Speaker 1: these like five major factors that that you look at

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Speaker 1: for this top down approach UM, and I know you

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Speaker 1: just mentioned the banking cartel's inflation being one of those.

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Speaker 1: Tell us how that that framework work works for you. Well,

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Speaker 1: in the laws of physics, you know forces and go

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Speaker 1: to M A and M is masked and how fast

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Speaker 1: is that mass accelerating is a force. So when we

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Speaker 1: look at GDPs or consumers, we can take China and

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Speaker 1: India effectually known as Chindia, and they're forty of the

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Speaker 1: world's population. That's of the model stapeed that's percent of

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Speaker 1: the consumers in the world. So that becomes a macro

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Speaker 1: consumption force. When we look at global trade, it's China

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Speaker 1: and America collectively, we're of all global trade. So when

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Speaker 1: we have a spat with China in America, then actually

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Speaker 1: it's going to impact. It's a global force. Now we're

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Speaker 1: seeing the poms of these countries turned up. We're seeing

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Speaker 1: the sword rattling of between China and America actually slowed

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Speaker 1: down compared to eighteen months ago. Uh. And I think

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Speaker 1: that this is another factor that is very positive for

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Speaker 1: the overall global commodity demand. China is fifty of commodity demand,

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Speaker 1: very important. If we look at China and India and

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Speaker 1: Southeast Asia or just actually started China and India alone,

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Speaker 1: they are fifty of all gold demand for love. So

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Speaker 1: when we are jewelry as a dimension of love, so

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Speaker 1: we would say that six of all gold demand is

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Speaker 1: love is fear, and that of fear is excessive money

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Speaker 1: pretty and negative real interest rates. So when you say love,

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Speaker 1: you're saying people are buying it because they love it,

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Speaker 1: meaning like jewelry, like I love gold, I love gold

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Speaker 1: jewlry and buying it and then the fear fear using

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Speaker 1: it as I kind of talked about like a hedge, right,

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Speaker 1: a chaos hedge. I'm I'm using it as insurance for

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Speaker 1: my portfolio currency a basement heads. You're right, absolutely, And that,

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Speaker 1: by the way, mark is what Ray Dalio talks about.

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Speaker 1: And he has the largest hits fund in the world

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Speaker 1: over a hundred sixty billion dollars and he always has

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Speaker 1: a position in gold. And I've basically co troy of

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Speaker 1: position people to recognize that the temper cent goal. The

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Speaker 1: rule is make sure you always have temper cent and

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Speaker 1: gold and you rebalance once a year or once a quarter. Uh.

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Speaker 1: And I think that this is an important thesis. When

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Speaker 1: I try to talk to watch the CNBC, most of

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Speaker 1: the time they're negative on goal. But in the past

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Speaker 1: twenty years, did you know that goal has been up

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Speaker 1: eighty percent of the time. Wow, I didn't know that.

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Speaker 1: So and if we looked at some of my favorite

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Speaker 1: royalty companies like Franco Nevada in the past ten years,

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Speaker 1: it's more than double Berkshire Hathaway. If I look at

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Speaker 1: Goal since the year two thousand, it's outperformed the SUP

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Speaker 1: by three times three because a huge number of difference.

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Speaker 1: So having a position in gold is actually wise and rational. Yeah,

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Speaker 1: I talked about recently, and I think I got it

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Speaker 1: from Rick Rule, but he was just talking about how

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Speaker 1: um the allocation to gold. You know, maybe historically it

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Speaker 1: was like one and a half two percent, but it's

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Speaker 1: really come down to like less than half a percent um.

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Speaker 1: But then we saw that the Ohio pension fund a

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Speaker 1: couple weeks ago, so they're gonna put five percent in um.

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Speaker 1: And imagine if everyone just put one percent. Do you

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Speaker 1: see something similar like that, like if it's really the

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Speaker 1: allocations have come down, but you think they'll come back up.

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Speaker 1: I do think they'll come back up. And it happens

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Speaker 1: as long as a secular boat market, which started in

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Speaker 1: January of two thousand and nineteen, that is the fifty

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Speaker 1: day average price over the two day moving average. Uh.

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Speaker 1: It can fall up and below the fifty day as

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Speaker 1: long as that fifty trends about the twinter it's a

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Speaker 1: secular boat market. Uh. And the first to do this

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Speaker 1: was the state of Texas. Texas built their own vault

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Speaker 1: and they moved all their gold out of New York City. Uh,

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Speaker 1: Doctor Texas. So I think you're going to see other

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Speaker 1: pensions look at that because most of the pensions have

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Speaker 1: a big bond portfolio and allow them use to buy

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Speaker 1: chips as a boxy, but actually buying gold and trading

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Speaker 1: around gold is a better proxy I think than overall

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Speaker 1: just buying bonds. It seems like, um, so, it seems like,

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Speaker 1: you know, as the inflation continues to go up and

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Speaker 1: then the rate of return on bonds goes down, especially

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Speaker 1: like treasuries and whatnot, I mean, maybe we're almost into well,

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Speaker 1: we're definitely into a real negative return, right, um, so

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Speaker 1: it almost makes sense to just hold gold, Like why

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Speaker 1: pay why lose money holding treasuries when I can just

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Speaker 1: hold gold. I mean, is that a big driver for funds?

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Speaker 1: I think so, I think you're gonna see that grow.

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Speaker 1: Uh and and you're and what's also witness thing is

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Speaker 1: in the past three years is a big increase on

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Speaker 1: new central banks buying gold. I thought it was interesting

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Speaker 1: eighteen months ago Colombia, the country of Columbia about gold,

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Speaker 1: and then they recently had to sell because they needed

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Speaker 1: to cap to deal with the slow down the economy

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Speaker 1: the coronavirus. But actually, if you love your country, you

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Speaker 1: should have gold because it's the way when a crisis

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Speaker 1: happens to get to be able to live off yeah,

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Speaker 1: so you talked about the love and then and the fear.

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Speaker 1: It seems to me it's really not the love that's

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Speaker 1: probably driving the market. It's probably more the fear. You

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Speaker 1: talked about the G twenty banking cartel. I mean their

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Speaker 1: policies are forcing everybody into other assets out of currencies.

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Speaker 1: Do you see that being the driver? Well, what's important market?

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Speaker 1: When you has mentioned to that of the time goal

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Speaker 1: has been options to your two thou since the year

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Speaker 1: two thousand. But why is that? Because the love tree

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Speaker 1: each year is taking more gold out as their GDP

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Speaker 1: per capital of China India's rising, they buy more gold

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Speaker 1: about thirty years ago China and they were only ten

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Speaker 1: percent of the global goal demand. Now they're so and

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Speaker 1: it's highly correlated GDP per capita. So what it means

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Speaker 1: is that when markets golds fall, it's going to have

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Speaker 1: a higher low to it, and then along comes the

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Speaker 1: money printing and the fear and so you high or high? Right? Yeah,

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Speaker 1: that makes sense. And I've had a lot of people

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Speaker 1: because I talked about gold quite a bit on my

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Speaker 1: channel and I've I've had some comments that say, well,

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Speaker 1: golds back to it's all time high it's too expensive now.

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Speaker 1: But I'm like, well, but the cycle is just starting

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Speaker 1: and we're at it right. Uh so, I guess is

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Speaker 1: that what you're seeing? So even though it did beat

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Speaker 1: its new all time high, um, it's at the beginning

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Speaker 1: of a cycle and not the end of a cycle

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Speaker 1: like it was in two thousand eleven. It is you

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Speaker 1: know that right on my on our website u sponge

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Speaker 1: dot com, I have a whole set of articles called

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Speaker 1: managing expectations and one buffet had a great line you said,

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Speaker 1: if you want to have a long lasting marriage, you

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Speaker 1: have more expectations. So everything is on the upside, right,

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Speaker 1: Uh and so I always gotta chuckle is sort of

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Speaker 1: a sage advice. But managing expectations and understand the volatility.

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Speaker 1: So the DNA of gold's volatility billion, it's the same

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Speaker 1: as the S and P five overn over one day

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Speaker 1: or ten days or sixty days, it's the same. But

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Speaker 1: most people talk negatively about gold as it's more volatile.

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Speaker 1: It's not the gold stocks are more volatile, right, yeah, yeah, yeah,

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Speaker 1: for sure. Now I've seen a couple of your calls.

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Speaker 1: It looks like you've been calling for a four thousand

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Speaker 1: dollar gold price. Um, is that still what you're seeing?

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Speaker 1: And is that because of this G twenty, these banking

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Speaker 1: cartels and the massive money printing along with India as

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Speaker 1: you've already described. I mean, is that kind of what

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Speaker 1: you're seeing the four thousand dollar price? Look up limit? Well,

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Speaker 1: you just taking a look at what happened in two

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Speaker 1: thousand and eight nine where the Federal Reserves Bank basically

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Speaker 1: strapped on a big three triggon dollars uh, and then

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Speaker 1: three years later we see go hitting nineteen hundred. It

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Speaker 1: was trained between seven eight hundred, it goes the nineteen hundred.

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Speaker 1: If we look at the amount of money printing today

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Speaker 1: and what we've seen the EU in Japan, one would

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Speaker 1: can easily forecast goal to go to four thousand. It

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Speaker 1: would not be the parts if you, by the way,

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Speaker 1: to use that CPI number that was used in nineteen

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Speaker 1: eighty goals over seven thousand. So I think that being

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Speaker 1: four thousand and over the next three years is not

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Speaker 1: you know, hysteria or or bs. Yeah, and I've actually

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Speaker 1: said I've actually said higher, and I'm definitely not a

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Speaker 1: legend like you are. But um, you know, you look

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Speaker 1: at you know, in two thousand eight. You know, gold

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Speaker 1: dropped along with stocks, talking down about six eighty, and

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Speaker 1: then it rallied over nineteen hundred based off of that stimulus.

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Speaker 1: It was the reaction that FED did that drove it

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Speaker 1: back up. And I've said that if we got the

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Speaker 1: same size move um from six eight to two thousand

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Speaker 1: this time, it would push gold about five thousand. But

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Speaker 1: as you just made the case, as I've made the case,

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Speaker 1: the stimulus of the government did this time is way

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Speaker 1: bigger than last time. So we're talking about just the

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Speaker 1: same size move but if it's two or three times bigger,

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Speaker 1: then it could easily overshoot that. Yes, and I said

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Speaker 1: in ten years that could be ten thousand. I think

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Speaker 1: it's very fair and reasonable. Yeah. Now, I do want

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Speaker 1: to just jump back into what you said about the

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Speaker 1: cp I. So for those that aren't really familiar with

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Speaker 1: that is that's the consumer price index and so um

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Speaker 1: you probably know if you've been watching this channel, the

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Speaker 1: FED is always trying to push inflation. They want two percent,

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Speaker 1: two percent, two percent. Um. We won't dig into y,

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Speaker 1: but um they're stating that they can't get the inflation,

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Speaker 1: and they look at something called the CPI Consumer Price

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Speaker 1: Index to look for that inflation. They're not seeing it.

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Speaker 1: But I know, Frank, you did a video recently and

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Speaker 1: you talked about how that CPI is wrong and then

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Speaker 1: the numbers wrong. You want to tell us about that

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Speaker 1: real quickly. Well, if you use the algorithm or the

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Speaker 1: model that they used in Night two, say inflation was

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Speaker 1: running at eighteen uh and go hit a fifteen solver

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Speaker 1: fifty dollars and els and Paul Walker came in and

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Speaker 1: took interest rates to stop it. If you looked at

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Speaker 1: that model and you used it today, it would suggested

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Speaker 1: inflations eight to nine percent. So I am and I

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Speaker 1: look at housing prices just came out the data points

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Speaker 1: they're up ten percent year over year. So what is

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Speaker 1: I telling you that there is not inflation? Uh? And

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Speaker 1: I look at my uh, legal bills, I look at

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Speaker 1: property taxes. Uh, they're not going up at one point

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Speaker 1: three or two percent? No. Yeah, I mean, and I

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Speaker 1: think everybody knows that. I mean, the the fence talent

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Speaker 1: US has no inflation. But education is way up, healthcare

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Speaker 1: is is through the roof. Where I live, I think

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Speaker 1: homes are like thirty up in a year. Um. And

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Speaker 1: so we're seeing that even even meat stakes is up,

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Speaker 1: milk is up. I mean, everything's up. So people know that,

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Speaker 1: and so they just keep changing this goal post. Um,

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Speaker 1: which I guess if we understand the game, maybe that's

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Speaker 1: our edge a little bit. Absolutely, and we can get

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Speaker 1: a cheap mortgage and buy a great property. This is

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Speaker 1: the time to do it. I'm a big believer if

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Speaker 1: you the income at the bank's allowing you to do it,

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Speaker 1: the ratio or whatever. But uh, it's cheap money, and

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Speaker 1: it's and you're boring money below the I believe is

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Speaker 1: the real CPI number. Yeah. Now what about um? You

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Speaker 1: talked about China Chindia as you called it, but but

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Speaker 1: specifically with China. You talked about the trade wars and whatnot.

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Speaker 1: And you also mentioned that we saw the central banks

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Speaker 1: buying a massive amount of gold. Um. I think most

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Speaker 1: people that have been following gold no that China has

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Speaker 1: been accumulating massive amounts of gold. Um. You know, they

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Speaker 1: allow a lot of mining, they don't allow to leave

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Speaker 1: the country, etcetera. UM. I think I heard you talking

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Speaker 1: about somewhere at some point, maybe even China trying to

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Speaker 1: back its currency with gold. Have you have you talked

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Speaker 1: about that or thought about that, Well, that was a

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Speaker 1: big push by the Saudis for oil that there would

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Speaker 1: be some type of a cloud or otherwise they're gonna

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Speaker 1: take US dollars. Uh. And I just think that was

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Speaker 1: a lot of positioning. Um. But there's no doubt there

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Speaker 1: is a move by Russia and China to basically derail

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Speaker 1: that the global currency US dollar, and all those transactions

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Speaker 1: have to go through New York City. Uh. And therefore

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Speaker 1: it makes it much more powerful on catching that bad characters.

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Speaker 1: I think that they want to have something else for trade,

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Speaker 1: but it'll take a while before they can really derail

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Speaker 1: the US dollar. Yeah, yeah, that's what I think too.

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Speaker 1: I mean, the dollars is too strong right now. So um,

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Speaker 1: I mean you are strong, you know against the euro

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Speaker 1: short term, which I think is a farce. But what

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Speaker 1: we have and what people have to really respect in

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Speaker 1: American love is we have common law. And common law

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Speaker 1: means that we have private property rights. And in most

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Speaker 1: of these other civil law countries, you don't have the

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Speaker 1: ability to have a debate in court in a fight

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Speaker 1: to protect your private property. It could be your blog,

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Speaker 1: it could be your song, it could be your music,

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Speaker 1: it could be your land, but this is so important

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Speaker 1: that you do not have other countries. So this common

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Speaker 1: law pisas along with a sort of the rule of law,

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Speaker 1: is the strongest military in the world. And those two

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Speaker 1: factors are really important to have a strong currency. Wow, Frank,

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Speaker 1: that is such an important piece that I would just

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Speaker 1: I hope everybody just grasped that, and I would I

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Speaker 1: would encourage everyone to dig into that a little bit, because, um,

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Speaker 1: that is what makes this country or or has made

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Speaker 1: this country so great, and get to it is because

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Speaker 1: of private property. It's private property rights are the underpinnions

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Speaker 1: of freedom, and uh, when you look at other countries,

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Speaker 1: they just don't have that. And uh, man, we could

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Speaker 1: really dig into that, but we're not going to. But

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Speaker 1: I would encourage everyone to maybe to go do a

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Speaker 1: little bit of research into that because it's super important,

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Speaker 1: especially right now because um, there's a changing tide to

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Speaker 1: happening in this country and uh, a lot of people

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Speaker 1: on the left aren't really happy with private property anymore. So, UM,

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Speaker 1: it's important to understand that. And we'll leave it at that. Um,

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Speaker 1: unless you have anything else to add. No, that's true,

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Speaker 1: and so it's a long discussion, but I do think

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Speaker 1: it's really important to love. What makes America great is

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Speaker 1: rule of law. And you know, for me, it was

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Speaker 1: fascinating last year going to the Senate in Congress uh

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Speaker 1: and being there and what do you see when the

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Speaker 1: President is speaking and looking up which we don't see

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Speaker 1: is a painting of Moses in the tank commandments for

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Speaker 1: rule of law, the concept uh. And it's just so

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Speaker 1: important to recognize that's what allows a culture a uniqueness

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Speaker 1: to develop, as it makes this country nothing else can

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Speaker 1: compete with it. Yeah, I mean, because we need, we

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Speaker 1: need a level playing field, which unfortunately we're starting to

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Speaker 1: see the rule of law not being met. But again

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Speaker 1: we'll table that for now. But back to the gold So,

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Speaker 1: I mean I was saying that we could see based

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Speaker 1: off of the stimulus and what happened in two thousand

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Speaker 1: eight nine, we could see it back to five thousand.

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Speaker 1: You're saying four thousand. So of course, you know, buying

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Speaker 1: goal of two thousand and doubling your money is not

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Speaker 1: not a bad not a bad thing, especially when um

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Speaker 1: other assets could be falling down. But as you mentioned,

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Speaker 1: the gold stocks are much more volatile. UM. I talked

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Speaker 1: about gold stocks a lot um so volatile meaning we

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Speaker 1: have way more upside, there's also more downside. Um, how

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Speaker 1: do you look at gold stocks uh, for your for

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Speaker 1: your fund and for your investments. Well, one of the

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Speaker 1: things I became frustrated with frustrated with with the g

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Speaker 1: d X j UH and basically money goes into that

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Speaker 1: by just billion dollars, and it goes into best stocks

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Speaker 1: of good stocks. And so I created my own et

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Speaker 1: F called gold Gold. And basically the best business model

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Speaker 1: in this gold space are royalty companies. The three big

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Speaker 1: amigos are Franco, Nevada Wheat and Pressures, and Royal Gold.

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Speaker 1: There are thirty of this. The other are names. I

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Speaker 1: basically focus on metrics that if these ceo screw it up,

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Speaker 1: they're out. And I'm looking for protection of my revenue

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Speaker 1: per share growth, the last quarter report, quarters, the cash flow,

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Speaker 1: last quarter reports, UH, free cash flow, high cast blow

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Speaker 1: returns on investor capital. Because all my back studies and

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Speaker 1: researchers show where you have CEOs that focus on those metrics,

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Speaker 1: those stocks outperform everybody else. And so I really focus

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Speaker 1: on that level and I can show that with math

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Speaker 1: that those companies that have the greatest revenue for shared

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Speaker 1: growth over the past five years, and cast Row along

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Speaker 1: with it have been the best winners like Kirk to Lake. Yeah, yeah,

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Speaker 1: I love what you just said there, because as I

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Speaker 1: talk about gold stocks, I talk about for myself. I mean,

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Speaker 1: I don't have the the experience and that you for sure.

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Speaker 1: But what I do is I try to look at

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Speaker 1: the team because I figured, like, good teams don't go

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Speaker 1: to bad projects, um and so if I start with

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Speaker 1: a good team, then I can dig into the other stuff.

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Speaker 1: And what you're saying is the best teams are the

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Speaker 1: ones that focus on those numbers correct and uh and

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Speaker 1: you just have to be able to have discipline. So

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Speaker 1: there's a hundred global gold producers around the world. There's

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Speaker 1: about seven me five of them in North America, from

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00:23:02,440 --> 00:23:06,040
Speaker 1: little microcaps up and UH, and we just focus on

430
00:23:06,320 --> 00:23:09,480
Speaker 1: those that this basket of tightness. And if you just

431
00:23:09,600 --> 00:23:12,399
Speaker 1: bought the ten stocks with the highest revenue for shared

432
00:23:12,440 --> 00:23:15,440
Speaker 1: growth year over year each quarter, kicked out the ones

433
00:23:15,520 --> 00:23:19,440
Speaker 1: when they fell below, you beat every index. So but

434
00:23:19,560 --> 00:23:22,080
Speaker 1: once you start getting over twenty five names, then you

435
00:23:22,200 --> 00:23:24,200
Speaker 1: end up becoming an index. So you have to stay

436
00:23:24,320 --> 00:23:27,840
Speaker 1: focused on what you're picking. And there's a few stocks

437
00:23:27,920 --> 00:23:31,520
Speaker 1: that like one of the great turnarounds from three years ago.

438
00:23:32,119 --> 00:23:35,119
Speaker 1: It was a company called Grand Columbia and uh and

439
00:23:35,240 --> 00:23:38,000
Speaker 1: they were sort of gotten got the religion that they

440
00:23:38,080 --> 00:23:42,000
Speaker 1: have to focus on profit, margin, revenue for growth and

441
00:23:42,200 --> 00:23:45,240
Speaker 1: cast bow. And this is a company that owed forty

442
00:23:45,359 --> 00:23:48,680
Speaker 1: five million dollars in short term obligations and then took

443
00:23:48,760 --> 00:23:50,840
Speaker 1: it to a d fifty million dollars in the bank.

444
00:23:51,600 --> 00:23:55,320
Speaker 1: So well, gold went up. They became very structured and discipline,

445
00:23:55,600 --> 00:23:58,399
Speaker 1: they piled the cash up in their balance sheet. Uh

446
00:23:58,680 --> 00:24:00,560
Speaker 1: and and this is to me is one of those

447
00:24:00,600 --> 00:24:03,199
Speaker 1: a great stock stories. And the stock went up at

448
00:24:03,240 --> 00:24:06,880
Speaker 1: one time seven ball during this run for us. Uh

449
00:24:07,240 --> 00:24:09,520
Speaker 1: and and so now I look at any of those

450
00:24:09,560 --> 00:24:14,000
Speaker 1: new companies come along that they have to have that discipline. Yeah. Yeah,

451
00:24:14,080 --> 00:24:16,840
Speaker 1: you definitely have to have a discipline. And uh. One

452
00:24:16,880 --> 00:24:19,600
Speaker 1: thing I actually Grand Columbia had just recently come onto

453
00:24:19,640 --> 00:24:21,919
Speaker 1: my radar. I just talked about it. Um. One thing

454
00:24:22,000 --> 00:24:24,879
Speaker 1: that I saw was how they um they had it

455
00:24:24,960 --> 00:24:27,240
Speaker 1: looked like they had an asset that wasn't really being

456
00:24:27,320 --> 00:24:30,000
Speaker 1: valued and they were able to spin it off, which

457
00:24:30,040 --> 00:24:32,560
Speaker 1: then gave it a lot more value, which then also

458
00:24:32,640 --> 00:24:35,600
Speaker 1: brought the company. Is is that kind of what happened. Yeah,

459
00:24:36,200 --> 00:24:37,800
Speaker 1: I think if you can look at the math that

460
00:24:38,600 --> 00:24:41,440
Speaker 1: five percent of the production came from the Remacle Mountain

461
00:24:42,119 --> 00:24:45,960
Speaker 1: and uh and it's a huge deposit. Uh and it

462
00:24:46,040 --> 00:24:48,320
Speaker 1: needed over a hundred and fifty million dollars of funding.

463
00:24:49,160 --> 00:24:51,600
Speaker 1: And so what their thought process that appears was what

464
00:24:51,720 --> 00:24:54,480
Speaker 1: South Africa used to do to de risk the big

465
00:24:54,600 --> 00:24:58,080
Speaker 1: mother ship which is Grand Columbia high grade operation that

466
00:24:58,240 --> 00:25:02,120
Speaker 1: went from ninety thousand to to and fifty of gold production.

467
00:25:02,440 --> 00:25:04,840
Speaker 1: This is a cash flow machine now throwing out two

468
00:25:04,960 --> 00:25:08,680
Speaker 1: or fifty million dollars of cash flow. Uh And and

469
00:25:08,800 --> 00:25:11,080
Speaker 1: so do they turn around and put all their capital

470
00:25:11,119 --> 00:25:13,119
Speaker 1: into this one your project? Or do they spin it

471
00:25:13,200 --> 00:25:16,120
Speaker 1: out so we had no value? They spun it out.

472
00:25:16,560 --> 00:25:18,919
Speaker 1: Wheat and Presses comes along, gives the good house keep

473
00:25:18,960 --> 00:25:21,760
Speaker 1: being sealed. They buy into the equity issue and they

474
00:25:21,840 --> 00:25:24,800
Speaker 1: give a gold note and they bought and give him

475
00:25:24,840 --> 00:25:28,280
Speaker 1: a scream. So I like when whenever the major Franklin

476
00:25:28,320 --> 00:25:31,120
Speaker 1: about us and wheat and give a good house keeping seal.

477
00:25:31,400 --> 00:25:34,200
Speaker 1: I like those juniors because our math says they used

478
00:25:34,240 --> 00:25:40,160
Speaker 1: the outperformed on other success analysis like like sports game

479
00:25:40,200 --> 00:25:43,800
Speaker 1: film analysis. So I think the Caledus is an interesting

480
00:25:43,920 --> 00:25:46,359
Speaker 1: spin out. Now it's all of a sudden worth towing

481
00:25:46,440 --> 00:25:49,200
Speaker 1: fifty million dollars. It was nothing on the balance sheet.

482
00:25:49,480 --> 00:25:51,800
Speaker 1: And we've seen other companies do something different in the

483
00:25:51,920 --> 00:25:54,720
Speaker 1: royalty business, Like I have eight billion dollars in my

484
00:25:54,800 --> 00:25:58,080
Speaker 1: balance sheet of royalties going nowhere. I spin them out

485
00:25:58,119 --> 00:26:00,520
Speaker 1: into a new royalty company, and all of a sudden,

486
00:26:00,520 --> 00:26:02,680
Speaker 1: I've got fifty billion dollars in my balance sheet of

487
00:26:02,760 --> 00:26:05,800
Speaker 1: owning that new public wealthy company. Uh, you've seeing your

488
00:26:05,840 --> 00:26:08,720
Speaker 1: monitor it almost go and do it. So I think

489
00:26:09,359 --> 00:26:14,240
Speaker 1: deep risking the flagship of frank Columbia with this is

490
00:26:14,280 --> 00:26:17,840
Speaker 1: a brilliant idea. Yeah, so back to kind of what

491
00:26:17,920 --> 00:26:20,840
Speaker 1: I was saying, where good teams, Uh, you know I

492
00:26:20,880 --> 00:26:23,080
Speaker 1: follow good teams because they can repeat success, right, they

493
00:26:23,119 --> 00:26:25,360
Speaker 1: have the formula. So as you're saying, when you see

494
00:26:25,359 --> 00:26:28,200
Speaker 1: a Franco or like in this case Wheat and Precious Metals,

495
00:26:28,440 --> 00:26:30,719
Speaker 1: when they come in UM and kind of give them

496
00:26:30,800 --> 00:26:33,639
Speaker 1: that seal like put their money behind it UM. And

497
00:26:33,720 --> 00:26:36,680
Speaker 1: that's just added encouragement, Like, Hey, I'm onto something. But

498
00:26:36,760 --> 00:26:38,440
Speaker 1: now that I see them jumping on board, like I

499
00:26:38,520 --> 00:26:40,280
Speaker 1: feel even better about it. I guess that's what you're

500
00:26:40,440 --> 00:26:43,400
Speaker 1: what you're saying, yes, you know what's build discipline because

501
00:26:43,440 --> 00:26:45,320
Speaker 1: they don't need to give me a check and saying hey,

502
00:26:45,400 --> 00:26:48,119
Speaker 1: go build the mind. It's almost like the money comes

503
00:26:48,160 --> 00:26:51,520
Speaker 1: to you as you prove that you're buying caterpillars, you're

504
00:26:51,560 --> 00:26:55,879
Speaker 1: buying equipment. It's very it's it has great processes like

505
00:26:55,960 --> 00:26:59,399
Speaker 1: a financial institution has to have. Yeah, so their mechanism

506
00:26:59,520 --> 00:27:02,520
Speaker 1: of funding and and the ongoing process of releasing the

507
00:27:02,600 --> 00:27:06,240
Speaker 1: money we know and and so to investors, that money

508
00:27:06,359 --> 00:27:09,600
Speaker 1: is going to go right into building that mind. And

509
00:27:09,720 --> 00:27:11,560
Speaker 1: so you're going to have this college. Are going to

510
00:27:11,640 --> 00:27:13,960
Speaker 1: go from twenty four thousand to a hundred and sixty

511
00:27:14,000 --> 00:27:17,520
Speaker 1: thou ounce go producer over the next five years. There's

512
00:27:17,760 --> 00:27:20,520
Speaker 1: very that's not gonna happen in Barrick. Merrick's not going

513
00:27:20,560 --> 00:27:23,240
Speaker 1: to go from five million to thirty million ounce go

514
00:27:23,400 --> 00:27:26,400
Speaker 1: producer organically. They're gonna have to turn around and acquire

515
00:27:26,680 --> 00:27:31,119
Speaker 1: other people. So I think that both those companies can

516
00:27:31,200 --> 00:27:34,520
Speaker 1: go through a rerating. Yeah, that's an important point. Um

517
00:27:34,840 --> 00:27:37,080
Speaker 1: And in my recent goal video, I talked about like

518
00:27:37,160 --> 00:27:39,639
Speaker 1: the kind of different layers of the gold mining industry,

519
00:27:39,720 --> 00:27:42,840
Speaker 1: from the large producers and the smaller producers, the explorers,

520
00:27:42,880 --> 00:27:45,879
Speaker 1: et cetera. And obviously, UM, as you work your way

521
00:27:45,960 --> 00:27:49,119
Speaker 1: down the greater risk and reward that are there. So

522
00:27:49,240 --> 00:27:51,080
Speaker 1: when you go into the barracks or the new months,

523
00:27:51,160 --> 00:27:53,919
Speaker 1: you're just not gonna see that growth. But they're also safer.

524
00:27:54,240 --> 00:27:57,400
Speaker 1: When you go in these smaller ones. Um, they're riskier,

525
00:27:57,640 --> 00:28:00,560
Speaker 1: but they have massive upside. So you just do like

526
00:28:00,640 --> 00:28:03,960
Speaker 1: a risk adjusted kind of position size. Yes we do,

527
00:28:04,160 --> 00:28:06,000
Speaker 1: and you know it. For us, we were a big

528
00:28:06,080 --> 00:28:09,720
Speaker 1: position in the Grand Columbia Gold notes, their list in Toronto.

529
00:28:10,200 --> 00:28:14,280
Speaker 1: They've been being redeemed now throughout this past couple of years.

530
00:28:14,359 --> 00:28:17,000
Speaker 1: But this is a beautiful piece of paper because it

531
00:28:17,119 --> 00:28:19,200
Speaker 1: was paying me eight and a quarter. I got paid

532
00:28:19,280 --> 00:28:22,040
Speaker 1: on a monthly basis in the quarter annualized, but anything

533
00:28:22,080 --> 00:28:24,800
Speaker 1: over twell fifty, I got a bonus payment. So gold

534
00:28:24,880 --> 00:28:28,280
Speaker 1: runs to two thousand, my end up making ray to

535
00:28:28,359 --> 00:28:32,200
Speaker 1: return on my money. So so my cast run holding

536
00:28:32,240 --> 00:28:35,560
Speaker 1: cash and a fun I've got this this gold asset,

537
00:28:35,880 --> 00:28:39,480
Speaker 1: always paying the n eb Harley most but I'm always

538
00:28:39,520 --> 00:28:43,200
Speaker 1: getting this big payout. Beautiful called us turned around and

539
00:28:43,280 --> 00:28:46,320
Speaker 1: did a similar race. They raised close to a hundred

540
00:28:46,320 --> 00:28:49,480
Speaker 1: million dollars on another gold note they yield slightly lower

541
00:28:49,640 --> 00:28:52,480
Speaker 1: seven and a quarter, and the price tag of getting

542
00:28:52,560 --> 00:28:55,720
Speaker 1: higher output is a higher level. But still when I

543
00:28:55,880 --> 00:28:59,280
Speaker 1: look at the opportunity of gold voters goes to four thousand,

544
00:28:59,600 --> 00:29:03,920
Speaker 1: I'll make a compound way to return on that note. Wow,

545
00:29:04,160 --> 00:29:05,920
Speaker 1: I need to get in some of those notes. And

546
00:29:06,080 --> 00:29:09,200
Speaker 1: that sounds like what's the money go to? Money fund

547
00:29:09,280 --> 00:29:12,400
Speaker 1: gonna pay you? You know two points here, I gotta

548
00:29:12,440 --> 00:29:14,920
Speaker 1: make seven or quarter with something that gold and they're

549
00:29:15,040 --> 00:29:19,160
Speaker 1: and they're redeeming you nice. Yeah, I like that. I'm

550
00:29:19,160 --> 00:29:20,760
Speaker 1: gonna have to have to look in to get into

551
00:29:20,840 --> 00:29:27,320
Speaker 1: that level now, um um okay. So then you talked

552
00:29:27,320 --> 00:29:30,680
Speaker 1: about the royalty companies. The wheaten is came in and

553
00:29:30,760 --> 00:29:33,800
Speaker 1: did the royalty on it. So they're like guaranteeing funding

554
00:29:33,880 --> 00:29:36,120
Speaker 1: as they stream it. Is that how that works? Yes,

555
00:29:36,520 --> 00:29:39,200
Speaker 1: that's what they do, Mark, And you know it's also interesting,

556
00:29:39,720 --> 00:29:42,560
Speaker 1: um their efficiency. So I've always said, why did buffet

557
00:29:42,680 --> 00:29:48,480
Speaker 1: by uh Brek you didn't buy Franko Nevada Because Franco

558
00:29:48,560 --> 00:29:51,960
Speaker 1: Nevada has the royalties on new modern barracks operations in Nevada.

559
00:29:53,880 --> 00:29:57,000
Speaker 1: And you know that the revenue per employee at the

560
00:29:57,080 --> 00:30:00,600
Speaker 1: Nevada at New Mode or Barracks operations around six hundred

561
00:30:00,640 --> 00:30:04,200
Speaker 1: thousand dollars of revue per employee at Franklin about it's

562
00:30:04,240 --> 00:30:07,600
Speaker 1: twenty four million, the highest revue per employee on the

563
00:30:07,640 --> 00:30:10,440
Speaker 1: New York Stock Exchange. It's called it's bigger than Goldman

564
00:30:10,480 --> 00:30:15,080
Speaker 1: Socks and a million. It's a very efficient ratio. Uh So,

565
00:30:15,440 --> 00:30:18,440
Speaker 1: I think that when you have the intellectual capital that

566
00:30:18,520 --> 00:30:23,240
Speaker 1: they have small employees, all of scientists, rocket scientists and

567
00:30:23,280 --> 00:30:27,320
Speaker 1: geology and metallurgy, et cetera, they go kick the tires

568
00:30:27,360 --> 00:30:30,760
Speaker 1: of these operations. They go through all the all the

569
00:30:30,840 --> 00:30:34,480
Speaker 1: feasibility studies, They ask you consilion questions before they start

570
00:30:34,560 --> 00:30:38,400
Speaker 1: releasing this money. So now this company is totally fund

571
00:30:38,480 --> 00:30:41,240
Speaker 1: and to take their production up. And I think each

572
00:30:41,320 --> 00:30:44,320
Speaker 1: quarter will be positive for the growth in Grand and

573
00:30:44,400 --> 00:30:48,479
Speaker 1: Grand Columbia and also particular now say called this. Yeah, Now,

574
00:30:48,560 --> 00:30:51,200
Speaker 1: when you talk about as you just did, you mentioned there,

575
00:30:51,320 --> 00:30:54,040
Speaker 1: you know, one of the best companies more big revenue

576
00:30:54,040 --> 00:30:55,479
Speaker 1: on the New York Stock Exchange. So when you talk

577
00:30:55,480 --> 00:30:58,400
Speaker 1: about the Francos, the Barracks, they're on those exchanges. But

578
00:30:58,480 --> 00:31:01,120
Speaker 1: when you dig into the Grand Colombia's and the Call This,

579
00:31:01,440 --> 00:31:03,360
Speaker 1: those are just like penny stocks, right, those are just

580
00:31:03,480 --> 00:31:06,000
Speaker 1: over the counter, and you know in over time they'll

581
00:31:06,040 --> 00:31:08,960
Speaker 1: eventually get listed there. You know, Rand Gold think was

582
00:31:09,720 --> 00:31:13,160
Speaker 1: basically an rt O in the barrack and Rand Gold

583
00:31:13,240 --> 00:31:16,280
Speaker 1: is one of the best explorers of developers and producers

584
00:31:16,320 --> 00:31:20,560
Speaker 1: in West Africa. And and Mark Bristol, Dr Mark Bristol

585
00:31:20,640 --> 00:31:24,960
Speaker 1: did a phenomenal job, so you see that in his migration.

586
00:31:25,000 --> 00:31:27,080
Speaker 1: Then he went on NASDAC and then he gets listened

587
00:31:27,120 --> 00:31:30,400
Speaker 1: to New York, so there's a migration. So I would

588
00:31:30,400 --> 00:31:33,240
Speaker 1: think that Grand Columbia by this time next year we

589
00:31:33,360 --> 00:31:36,480
Speaker 1: listened on the NASTAC or New York Stock Exchange. And

590
00:31:36,960 --> 00:31:38,640
Speaker 1: you know if they do that, they will get a

591
00:31:38,800 --> 00:31:42,920
Speaker 1: much higher rating, much more quickly. Because clearly the US

592
00:31:43,360 --> 00:31:45,880
Speaker 1: is still where you have the rule of law, you

593
00:31:46,000 --> 00:31:49,000
Speaker 1: have the biggest capital market structure, uh, and you have

594
00:31:49,240 --> 00:31:53,000
Speaker 1: these pockets like millennials coming in at an unprecedent rate.

595
00:31:53,320 --> 00:31:55,280
Speaker 1: I saw the last time in the nineties and the

596
00:31:55,360 --> 00:31:58,320
Speaker 1: mutual fund world that now they're coming into the ETF

597
00:31:58,440 --> 00:32:02,160
Speaker 1: world and individual style US. Yeah. Now, And I think

598
00:32:02,280 --> 00:32:05,600
Speaker 1: it's also just kind of just shows how small this

599
00:32:05,720 --> 00:32:08,040
Speaker 1: space is. I talked about it on my video. Did

600
00:32:08,080 --> 00:32:10,960
Speaker 1: about Warren Buffet buying in where you know he he

601
00:32:11,080 --> 00:32:13,400
Speaker 1: bought like a like he barely took any of his

602
00:32:13,520 --> 00:32:16,080
Speaker 1: funds and he took a big chunk out of Barrack in.

603
00:32:16,680 --> 00:32:19,080
Speaker 1: This space is just tiny for these types of players,

604
00:32:19,120 --> 00:32:21,280
Speaker 1: and so I think, I mean, it is tiny, right,

605
00:32:21,320 --> 00:32:22,560
Speaker 1: And that's why a lot of these are still just

606
00:32:22,640 --> 00:32:25,480
Speaker 1: kind of penny stocks. Yeah, I think. But his gold

607
00:32:25,640 --> 00:32:29,640
Speaker 1: Rises and and free Castle that more man's beens focused

608
00:32:29,680 --> 00:32:32,960
Speaker 1: on this free Castle. It means higher dividends, the the

609
00:32:33,320 --> 00:32:36,240
Speaker 1: the non or the generalist fund manager is going to

610
00:32:36,320 --> 00:32:38,680
Speaker 1: start buying these names. I'll give you a classic mark

611
00:32:39,280 --> 00:32:43,360
Speaker 1: IBD which only follows growth stocks. Uh, it's happened all

612
00:32:43,400 --> 00:32:45,680
Speaker 1: over again in two thousand and two that started happening.

613
00:32:45,920 --> 00:32:49,479
Speaker 1: It's happened just this year and the past quarter. All

614
00:32:49,520 --> 00:32:51,880
Speaker 1: of a sudden, Franko Nevada shows up in the IBD

615
00:32:52,280 --> 00:32:54,880
Speaker 1: Best fifty Stocks, Kirk and Lake is showing up in

616
00:32:54,960 --> 00:32:58,040
Speaker 1: the best fifty stocks. So we're seeing that they have

617
00:32:58,200 --> 00:33:03,240
Speaker 1: growth metrics like you're seeing a MG are you or

618
00:33:03,320 --> 00:33:07,440
Speaker 1: a m D or in video is showing up there.

619
00:33:07,720 --> 00:33:10,720
Speaker 1: So you're this is a game changer. And as long

620
00:33:10,760 --> 00:33:14,960
Speaker 1: as these companies demonstrating high cosh what returns on the capital,

621
00:33:15,520 --> 00:33:17,959
Speaker 1: They're going to grow and their market cops are going

622
00:33:18,040 --> 00:33:21,480
Speaker 1: to rise, and as investors are always looking for the early,

623
00:33:21,880 --> 00:33:26,080
Speaker 1: early entries, the undervalued assets. So that's our opportunity there. Um,

624
00:33:27,360 --> 00:33:32,640
Speaker 1: I'm curious about where these minds are actually located. One

625
00:33:32,720 --> 00:33:35,640
Speaker 1: big narrative that seems I get asked this question p

626
00:33:35,920 --> 00:33:38,720
Speaker 1: twenty times on every goal video I do, is uh

627
00:33:39,040 --> 00:33:43,360
Speaker 1: this big narrative about danger danger danger minds that are

628
00:33:43,480 --> 00:33:48,120
Speaker 1: not in US swap line countries. I'm sure you've heard that. Uh,

629
00:33:49,240 --> 00:33:52,160
Speaker 1: is there any is Is there any uh any truth

630
00:33:52,200 --> 00:33:54,360
Speaker 1: to that? Do you worry about that? Is that something like? Okay,

631
00:33:54,400 --> 00:33:56,120
Speaker 1: that's a risk? But I kind of know what that is.

632
00:33:56,960 --> 00:33:58,960
Speaker 1: You know, it's a great question because I used to

633
00:33:59,040 --> 00:34:02,400
Speaker 1: populate of an ounce of gold around the world in

634
00:34:02,520 --> 00:34:05,440
Speaker 1: different countries in the public market, and you could see

635
00:34:05,880 --> 00:34:09,520
Speaker 1: that an ounce of gold in Kazakhstan was really cheap

636
00:34:09,600 --> 00:34:13,120
Speaker 1: for a reason, no rule of law. Uh, the assets

637
00:34:13,120 --> 00:34:15,719
Speaker 1: started to go to production like the government, which find

638
00:34:15,719 --> 00:34:18,160
Speaker 1: a way to stud your asset. It's ongoing, but the

639
00:34:18,280 --> 00:34:21,480
Speaker 1: market was pretty pretty good at figuring out what an

640
00:34:21,560 --> 00:34:24,279
Speaker 1: ounce of gold of the ground is worth in different jurisdictions.

641
00:34:24,719 --> 00:34:27,880
Speaker 1: But if you ask the former CEO of Rio tinso

642
00:34:28,560 --> 00:34:31,239
Speaker 1: um is on the board of Franklo Nevada. If you

643
00:34:31,400 --> 00:34:36,200
Speaker 1: ask the former CEO is America both Americans for Anglo gold,

644
00:34:36,760 --> 00:34:39,279
Speaker 1: they're gonna tell you that some of the biggest disasters

645
00:34:39,360 --> 00:34:43,200
Speaker 1: were in the US with e p A. So UH.

646
00:34:43,400 --> 00:34:46,360
Speaker 1: You know, the environmental movement can be a big factor

647
00:34:46,480 --> 00:34:49,919
Speaker 1: of risk. But what happens so often in these other

648
00:34:50,040 --> 00:34:54,160
Speaker 1: countries is that it's better price that an ounce of

649
00:34:54,239 --> 00:34:59,160
Speaker 1: gold in different countries. So if you have UH, socialists

650
00:34:59,239 --> 00:35:03,279
Speaker 1: or or office came in and basically destroyed Venezuela and

651
00:35:03,400 --> 00:35:07,120
Speaker 1: immediately the announce of goals started falling quickly. Any public

652
00:35:07,200 --> 00:35:09,839
Speaker 1: company that announced of going to Venezuela. It came cheap

653
00:35:09,920 --> 00:35:14,319
Speaker 1: for a reason. But Colombia, you know, Columbia is more

654
00:35:14,440 --> 00:35:17,560
Speaker 1: socialists and in a lot of the political political push

655
00:35:17,880 --> 00:35:20,640
Speaker 1: that they have in the media, et cetera. But it's

656
00:35:20,680 --> 00:35:24,719
Speaker 1: been a very strong nation and sort of protecting UH

657
00:35:25,080 --> 00:35:28,279
Speaker 1: companies and trying to attract capital. There is a free

658
00:35:28,320 --> 00:35:30,880
Speaker 1: trade agreement with Canada, there's a free trading agreement with

659
00:35:30,920 --> 00:35:34,160
Speaker 1: the US. UH. So I think that it's a lot

660
00:35:34,320 --> 00:35:39,920
Speaker 1: less riskier than a country like Venezuela. I love that answer,

661
00:35:40,200 --> 00:35:41,600
Speaker 1: and so it goes back to kind of what we

662
00:35:41,680 --> 00:35:44,400
Speaker 1: talked about already. These smaller producers are more risky, and

663
00:35:44,440 --> 00:35:47,200
Speaker 1: so you want to manage your risk with your position sizes. Um,

664
00:35:47,280 --> 00:35:49,759
Speaker 1: there are risks there, and but it's cheaper, so you're

665
00:35:49,800 --> 00:35:52,560
Speaker 1: you're managing it that way. But also there's risks even

666
00:35:52,560 --> 00:35:55,360
Speaker 1: in the US, and so there's always risk. Look at

667
00:35:55,400 --> 00:35:59,040
Speaker 1: Grand Columbia trades at three times cost. Both the industry

668
00:35:59,160 --> 00:36:02,040
Speaker 1: of the seventy five North American South American producers we

669
00:36:02,239 --> 00:36:06,920
Speaker 1: follow trade at thirteen times. Wow. Okay, it shouldn't trade.

670
00:36:07,360 --> 00:36:09,319
Speaker 1: It's going to get a rerating. It's just a matter

671
00:36:09,400 --> 00:36:12,480
Speaker 1: of time. And that rerating can take an easy word.

672
00:36:12,560 --> 00:36:14,560
Speaker 1: It can get a double rating and the stock and

673
00:36:14,640 --> 00:36:18,840
Speaker 1: double and still be economically more attractive than many other companies.

674
00:36:19,120 --> 00:36:21,400
Speaker 1: And they just had a different policy. So they're one

675
00:36:21,400 --> 00:36:25,000
Speaker 1: of those classic emergent gold producer that has free cost

676
00:36:25,040 --> 00:36:28,279
Speaker 1: blow and they just started paying a dividend. M wow.

677
00:36:29,440 --> 00:36:31,239
Speaker 1: Getting again, as I just said, if I get on

678
00:36:31,320 --> 00:36:32,880
Speaker 1: those notes, or if you can get a dividend on

679
00:36:33,080 --> 00:36:35,000
Speaker 1: on a gold stock, I mean that's a that's an

680
00:36:35,000 --> 00:36:38,600
Speaker 1: amazing thing to do. So, um, yeah, I know I

681
00:36:38,719 --> 00:36:42,440
Speaker 1: know your fund specifically as has institutional size investments in

682
00:36:42,520 --> 00:36:45,600
Speaker 1: those companies Grand Columbia and called this so definitely worth

683
00:36:45,680 --> 00:36:49,080
Speaker 1: somebody checking out. Um, I want to switch gears just

684
00:36:49,160 --> 00:36:51,719
Speaker 1: a little bit. Uh. Something I ask everybody that I

685
00:36:51,800 --> 00:36:55,640
Speaker 1: sit down with, because I'm a huge believer in new

686
00:36:55,680 --> 00:36:57,680
Speaker 1: technology and I know you've talked about technology and some

687
00:36:57,760 --> 00:37:00,640
Speaker 1: of your other posts, um, and I is want to ask,

688
00:37:00,760 --> 00:37:04,760
Speaker 1: especially gold people, what they think about bitcoin. Now. Typically

689
00:37:04,880 --> 00:37:08,040
Speaker 1: I'm just gonna tell everybody before you answer. Typically, uh,

690
00:37:09,080 --> 00:37:11,000
Speaker 1: most gold people have asked this question to you don't

691
00:37:11,080 --> 00:37:14,239
Speaker 1: have that big of an answer, but you do. You're

692
00:37:14,520 --> 00:37:18,160
Speaker 1: heavily involved in bitcoin, so tell us about that. My

693
00:37:18,320 --> 00:37:20,840
Speaker 1: journey was I was trying to create an ETS and

694
00:37:20,920 --> 00:37:23,520
Speaker 1: I quickly learned a thousand dollars in our legal bills

695
00:37:23,880 --> 00:37:27,520
Speaker 1: that just wasn't gonna happen. The SEC in the US

696
00:37:27,960 --> 00:37:32,360
Speaker 1: OSC in Canada they are so fearful of anti anti

697
00:37:32,400 --> 00:37:35,600
Speaker 1: money lonering laws that some hacker gets bitcoin and shows

698
00:37:35,640 --> 00:37:37,840
Speaker 1: up in an ETP of New York Stock Exchange or Toronto.

699
00:37:38,239 --> 00:37:40,279
Speaker 1: So it was a cold of stock. You're driving down.

700
00:37:40,320 --> 00:37:42,680
Speaker 1: It's a dead end. So with that I had all

701
00:37:42,719 --> 00:37:45,000
Speaker 1: this knowledge and friends of mine in Vancouver said, you know,

702
00:37:45,040 --> 00:37:48,160
Speaker 1: there's a speculative idea of mining these coins. I said,

703
00:37:48,200 --> 00:37:52,279
Speaker 1: well mining version coins. Wow, when you validate the transaction

704
00:37:52,360 --> 00:37:55,919
Speaker 1: in cyberspace, you basically get paid in a brand new coin.

705
00:37:56,400 --> 00:37:59,959
Speaker 1: It has nothing, it's clean and spot us, it's actual

706
00:38:00,120 --> 00:38:03,080
Speaker 1: worth more and therefore you have no a mL problems.

707
00:38:03,440 --> 00:38:05,719
Speaker 1: So I took my capital and said, okay, let's launch

708
00:38:05,840 --> 00:38:10,160
Speaker 1: the first industrial scale cryptal mining company. And all of

709
00:38:10,239 --> 00:38:13,200
Speaker 1: a sudden, a billion dollars came into Canada and all

710
00:38:13,280 --> 00:38:15,840
Speaker 1: these other minings started coming in. But Hive at the

711
00:38:15,880 --> 00:38:19,120
Speaker 1: first mover advantage and High is the most liquid name.

712
00:38:19,680 --> 00:38:23,799
Speaker 1: Uh and and we're also the biggest in etherium. Ethereum

713
00:38:23,880 --> 00:38:26,360
Speaker 1: is going to be the backbone. Bitcoin to me is

714
00:38:26,360 --> 00:38:30,759
Speaker 1: going to become like any warhol Art over time, where

715
00:38:30,880 --> 00:38:35,839
Speaker 1: I whereas Etherium is a smart contract and any new

716
00:38:35,960 --> 00:38:38,560
Speaker 1: I c O s are all based on that algorithm

717
00:38:38,920 --> 00:38:41,279
Speaker 1: or what they call d F I did he said

718
00:38:41,280 --> 00:38:44,960
Speaker 1: to lie financing, They're all based on that back that backbone.

719
00:38:45,040 --> 00:38:48,200
Speaker 1: So I remain very bois the constructive and High has

720
00:38:48,280 --> 00:38:52,680
Speaker 1: become a proxy for that investor that wants to own

721
00:38:52,719 --> 00:38:55,279
Speaker 1: a crypto, but they're afraid to go and buy an

722
00:38:55,320 --> 00:38:57,759
Speaker 1: exchange and hear that their cow was packed. So they

723
00:38:57,880 --> 00:39:01,640
Speaker 1: bought high institutions like Fideli start off and helped the

724
00:39:01,640 --> 00:39:04,160
Speaker 1: sel with a hundred million dollars of building help these

725
00:39:04,200 --> 00:39:07,800
Speaker 1: facilities we mind only with cheap re energy were in

726
00:39:07,920 --> 00:39:11,919
Speaker 1: Sweden or in Iceland, and we're in Quebec, Canada. Yeah,

727
00:39:12,080 --> 00:39:14,759
Speaker 1: I was. Was hive U one of the first, if

728
00:39:14,800 --> 00:39:19,799
Speaker 1: not the first, like publicly listed like blockchain crypto company. Yes,

729
00:39:20,040 --> 00:39:23,120
Speaker 1: and it went from a thirty million dollars seed round

730
00:39:23,400 --> 00:39:26,520
Speaker 1: to a big in dollars in market gap. You know,

731
00:39:26,840 --> 00:39:28,560
Speaker 1: um I I love this and I just want to

732
00:39:28,640 --> 00:39:31,720
Speaker 1: hit this point home because um I talked about bitcoin

733
00:39:31,760 --> 00:39:34,239
Speaker 1: a lot and I talked about gold a lot. In

734
00:39:34,320 --> 00:39:36,879
Speaker 1: my opinion, golden bitcoin are both fighting the same war,

735
00:39:37,880 --> 00:39:41,440
Speaker 1: hard sound money against inflation against runaway printing. Right, So

736
00:39:41,760 --> 00:39:43,960
Speaker 1: I believe golden bitcoin are both fighting in the same war,

737
00:39:44,239 --> 00:39:46,040
Speaker 1: and I talk about both. But like, no matter which

738
00:39:46,080 --> 00:39:49,000
Speaker 1: what I'm talking about, I get people that comment that say,

739
00:39:49,719 --> 00:39:51,560
Speaker 1: I would never only buy gold, I would never have

740
00:39:51,600 --> 00:39:53,799
Speaker 1: a bitcoin or only by bitcoin, I would never buy gold.

741
00:39:54,160 --> 00:39:56,840
Speaker 1: But I'm like, as an investor. Why our job is

742
00:39:56,920 --> 00:39:59,160
Speaker 1: not to pick the one right, like we invest in

743
00:39:59,200 --> 00:40:03,200
Speaker 1: the multiple things. And obviously you see the same. Yeah,

744
00:40:03,360 --> 00:40:06,359
Speaker 1: I see it as an alternative asset class and uh.

745
00:40:06,800 --> 00:40:09,000
Speaker 1: And I think that if you have a virgin bitcoin

746
00:40:09,600 --> 00:40:12,279
Speaker 1: and it has a sixty four digit character, it's going

747
00:40:12,320 --> 00:40:15,200
Speaker 1: to become art. It's gonna go up like an Andy

748
00:40:15,280 --> 00:40:20,520
Speaker 1: Warhol painting. Uh the multiple sets he had of mau

749
00:40:21,480 --> 00:40:24,520
Speaker 1: and I think five six different colors, a thousands of

750
00:40:24,560 --> 00:40:26,920
Speaker 1: a thousand princely but a thousand dollars and they went

751
00:40:26,960 --> 00:40:30,480
Speaker 1: to a quarter million each. Uh. And so with that,

752
00:40:30,600 --> 00:40:33,280
Speaker 1: I think that that's what's going to happen with the bitcoin.

753
00:40:33,600 --> 00:40:36,640
Speaker 1: Whereas I think the theory UM and that protocol and

754
00:40:36,719 --> 00:40:39,640
Speaker 1: so the other ones are gonna become more important as

755
00:40:39,880 --> 00:40:43,160
Speaker 1: as the cryptal space involves. But we're seeing today in

756
00:40:43,280 --> 00:40:47,320
Speaker 1: Switzerland better laws for the cryptal respecting it. You're seeing

757
00:40:47,719 --> 00:40:50,080
Speaker 1: um Europe is talking about the hit of the I

758
00:40:50,280 --> 00:40:53,160
Speaker 1: m f of coming up with the digital money. Uh.

759
00:40:53,560 --> 00:40:56,480
Speaker 1: And I thought it was very funny. The cryptal surged

760
00:40:56,600 --> 00:41:01,040
Speaker 1: to eighteen nineteen thousand for bitcoin, and then crush came

761
00:41:01,160 --> 00:41:03,640
Speaker 1: just with the futures market was able to suppress it

762
00:41:04,080 --> 00:41:08,360
Speaker 1: and JP Morgan not Bitcoin every day every week until

763
00:41:08,520 --> 00:41:12,319
Speaker 1: February of two thousand and nineteen, just when Gold's Golden

764
00:41:12,360 --> 00:41:15,759
Speaker 1: cross took place. JP Morgan came up with our own

765
00:41:15,880 --> 00:41:19,239
Speaker 1: digital stable coin and then they stopped the trash talk.

766
00:41:19,600 --> 00:41:23,680
Speaker 1: And then you start seeing a new evolution taking place

767
00:41:24,000 --> 00:41:29,440
Speaker 1: in the crypto ecosystem. So, UM, I didn't plan this question,

768
00:41:29,560 --> 00:41:33,239
Speaker 1: but you've been you've been forthcoming and said you see

769
00:41:33,400 --> 00:41:36,280
Speaker 1: gold getting into four thousand, do you have any ideas?

770
00:41:36,360 --> 00:41:38,319
Speaker 1: Do you do you think bitcoin gets to fifty tho

771
00:41:38,560 --> 00:41:41,239
Speaker 1: at some point? You know it's it has to do

772
00:41:41,320 --> 00:41:44,960
Speaker 1: with metcast law and that's the important law that that

773
00:41:45,239 --> 00:41:48,920
Speaker 1: that they used to when when anything goes virable. Uh,

774
00:41:49,200 --> 00:41:52,399
Speaker 1: it can happen as long as there's an exponential growth

775
00:41:52,480 --> 00:41:55,560
Speaker 1: of people looking and talking about it. Um, and I

776
00:41:55,640 --> 00:41:58,239
Speaker 1: think will Happers, will the Robert Hoods be able to

777
00:41:58,280 --> 00:42:00,800
Speaker 1: give you fractions like we are a fraction share you

778
00:42:00,800 --> 00:42:03,759
Speaker 1: can get one shore of Amazon or Tesla. Are they

779
00:42:03,840 --> 00:42:07,640
Speaker 1: gonna give you those fractals? Uh? Then that would basically

780
00:42:07,719 --> 00:42:10,960
Speaker 1: allow that to take place. But you know, if Berkshire

781
00:42:11,040 --> 00:42:13,360
Speaker 1: hath to wake and go to a quartermaking and share,

782
00:42:13,480 --> 00:42:18,120
Speaker 1: then uh, White CAMPI coin go to fifty thousand. Uh yeah,

783
00:42:18,360 --> 00:42:20,080
Speaker 1: I see, I see. I mean I I did a

784
00:42:20,160 --> 00:42:21,759
Speaker 1: video on how it gets to a hundred thousand easily.

785
00:42:21,800 --> 00:42:23,799
Speaker 1: And you just figure, I mean, if if I'm buying

786
00:42:23,880 --> 00:42:25,839
Speaker 1: it as for the same reason as gold getting money

787
00:42:25,840 --> 00:42:27,880
Speaker 1: out of the banking system and goals worth ten trillion,

788
00:42:28,600 --> 00:42:31,680
Speaker 1: or there's thirty to forty trillion and offshore bank accounts,

789
00:42:31,719 --> 00:42:32,920
Speaker 1: which is the same thing. Get it out of the

790
00:42:32,960 --> 00:42:36,520
Speaker 1: banking system thirty to forty trillion. There's ten trillion over there,

791
00:42:36,640 --> 00:42:40,360
Speaker 1: like it couldn't get a few percent of that. They

792
00:42:40,360 --> 00:42:43,480
Speaker 1: can't get there pretty quickly. But I think what's important

793
00:42:43,520 --> 00:42:47,239
Speaker 1: for your listeners is the ecosystem. Uh, when you can

794
00:42:47,320 --> 00:42:49,920
Speaker 1: talk to crypto kids, you know, they talked about this

795
00:42:50,040 --> 00:42:56,719
Speaker 1: ecosystem and how bitcoin then gave etherorium Ethereum has thirty thousand. Uh.

796
00:42:57,200 --> 00:43:00,400
Speaker 1: Kids around the world are part of that equals system.

797
00:43:01,000 --> 00:43:02,920
Speaker 1: And and and give me a classic is there was

798
00:43:03,000 --> 00:43:06,080
Speaker 1: they discovered where someone was packed and they came in

799
00:43:06,120 --> 00:43:09,359
Speaker 1: and stole some of the coins. Uh. These kids came

800
00:43:09,400 --> 00:43:11,200
Speaker 1: in and took the rest of the coins and then

801
00:43:11,239 --> 00:43:13,799
Speaker 1: put them in a safety deposit box and told people

802
00:43:13,840 --> 00:43:16,320
Speaker 1: how to come and validate to get them. They do

803
00:43:16,480 --> 00:43:19,239
Speaker 1: it free. Uh. They are talking to one of the

804
00:43:19,320 --> 00:43:23,360
Speaker 1: original Etherium quotas. Uh. He was into the green movement

805
00:43:23,680 --> 00:43:25,760
Speaker 1: and then all of a sudden, from there as a quota,

806
00:43:26,040 --> 00:43:29,120
Speaker 1: he left going to Green. They went over to cryptal World.

807
00:43:29,320 --> 00:43:33,160
Speaker 1: But there's thirty thousand working free basically around the world,

808
00:43:34,760 --> 00:43:38,839
Speaker 1: validated the transactions, validating the software. Uh. Then there's other

809
00:43:39,040 --> 00:43:42,200
Speaker 1: entities that are getting paid for developers, et cetera. So

810
00:43:42,440 --> 00:43:46,440
Speaker 1: you don't see that for junior mining three thousand. Uh.

811
00:43:47,239 --> 00:43:49,840
Speaker 1: So I think it's we have to really for me

812
00:43:50,080 --> 00:43:54,160
Speaker 1: is respect that the emotional and intellectual capital that's behind

813
00:43:54,239 --> 00:43:57,919
Speaker 1: this industry, that it will evolve and these coins will

814
00:43:58,280 --> 00:44:02,560
Speaker 1: like Etherian bitcoin trade higher. Yeah. Awesome, Well, that is

815
00:44:02,640 --> 00:44:05,040
Speaker 1: so much information that you share with us. I really

816
00:44:05,080 --> 00:44:08,040
Speaker 1: appreciate that. I love I love your perspective that you

817
00:44:08,160 --> 00:44:10,640
Speaker 1: can see gold and bitcoin at the same time. Like

818
00:44:10,719 --> 00:44:16,040
Speaker 1: I said, most people can't so appreciate that. Um. But yeah,

819
00:44:16,040 --> 00:44:17,320
Speaker 1: I think we'll go ahead and wrap it up with that.

820
00:44:17,400 --> 00:44:19,880
Speaker 1: I know, you know, we need to keep it short here. Um,

821
00:44:20,040 --> 00:44:22,080
Speaker 1: but I I really appreciate the time that you've given

822
00:44:22,160 --> 00:44:24,920
Speaker 1: us so much, and uh, I just love to learn

823
00:44:24,920 --> 00:44:28,040
Speaker 1: as much as I can. Success leaves clues I tell everybody,

824
00:44:28,080 --> 00:44:30,880
Speaker 1: and so I'm trying to just SI Mark very frank

825
00:44:30,920 --> 00:44:33,359
Speaker 1: kind and it was great. You have wonderful questions to ask,

826
00:44:33,800 --> 00:44:38,400
Speaker 1: so you keep me on my tolls going all right,

827
00:44:38,480 --> 00:44:42,480
Speaker 1: Frank uh now, um I real quickly, Um, you do

828
00:44:42,680 --> 00:44:44,840
Speaker 1: write a newsletter, and I think you said to you

829
00:44:44,880 --> 00:44:47,960
Speaker 1: there's like fifty six people on that newsletter. Where would

830
00:44:47,960 --> 00:44:49,600
Speaker 1: people go find you if they want to keep up

831
00:44:49,600 --> 00:44:52,560
Speaker 1: with that? Go to us funds dot com and look

832
00:44:52,640 --> 00:44:56,560
Speaker 1: up Frank Talk okay, Frank Talk US Funds okay. And

833
00:44:56,600 --> 00:44:59,200
Speaker 1: so for anybody listening, UM, I'm gonna go ahead and

834
00:44:59,239 --> 00:45:00,719
Speaker 1: link to it in the show notes so you can

835
00:45:00,800 --> 00:45:02,919
Speaker 1: find that as well. And with that we'll go ahead

836
00:45:02,920 --> 00:45:04,600
Speaker 1: and wrap it up. Thanks so much, Frank, I appreciate

837
00:45:04,640 --> 00:45:06,799
Speaker 1: your time. We're happy investment my friend,