bm Here’s the problem with that. When you talk about the price of gold, you have to determine exactly what it is you’re talking about. Now, if you go back to the gold and silver market back in 2008, when the stock market was crashing, it took gold with it. And that’s perfectly rational because everybody was getting margin calls and they were selling off everything that they could possibly sell off and gold happened to be one of them.
I don’t look at that as a problem. I looked at that as an opportunity, so it doesn’t concern me. I mean, literally 10 minutes ago, I bought a 1,000-ounce silver bar for $23.50 an ounce. And I consider that a safe and a pretty good investment. But we’re going to see chaos in gold, not because of gold. We’re going to see chaos in gold because of the general stock market.
Goldfinger:
Silver is really interesting because it’s been so range-bound. And so many of the silver bulls out there seem to be so passionate about their theory that silver has to go a lot higher and that the price of silver is being suppressed. But meanwhile, the only price you can trade on the exchange or through your local dealer is the market price, the spot price. And just like you said, you bought a 1,000-ounce silver bar at $23.50 per ounce, that’s the price.
That’s the price today, and every time it’s gone up to $27 or $28 in the last couple of years, it’s quickly come back down. What’s your view on silver and do you think that the price is being held down by central banks or J.P. Morgan or what have you?
Silver (Weekly – 5 Year)
Bob Moriarty:
Well, that’s really interesting because every time I do an interview and I’d say that all markets are manipulated, people come back and say, “Well, you don’t believe silver is manipulated.” All markets are manipulated. They’re manipulated all of the time and it’s no big deal. We know interest rates are manipulated. The stock market is probably manipulated. Currencies are absolutely manipulated.
So who gives a sh*t if they’re manipulating silver? But at the end of the day, you can always use facts and logic to determine what’s happening. I’m going to ask you a question. It’s not a trick question. Silver got to $4.02 or $4.03 in November of 2001 and that’s a fact. It went to $49, I think $49.83, in April of 2011. So it went from four bucks to nearly fifty. Was it suppressed?
Goldfinger:
No.
Bob Moriarty:
Thank you.
Goldfinger:
Another aspect of the market that you’ve been right about in the last year or so is the revenge of the miners and the return to natural resources. I remember we were talking, I think it was probably almost exactly a year ago. And you said that what we’re going to see is this transition from crypto and meme stocks and all this bullsh*t ponzi finance to hard assets and natural resources. And actually we’ve really seen that in 2022. Energy and natural resources have been the best performing sectors.
Obviously many of the stocks in these sectors were a lot higher a month ago, but the fact is that everything has had a rough year in 2022 so far, and natural resources like oil and agriculture and metals have done better than most. Do you see this correction we’ve had the past couple weeks as just a pullback, a little shake-out in the context of a secular bull market, or is this something to worry about with the natural resources trade?
Bob Moriarty:
Okay, that is again a really good question. If you go back to the crash of 1929, in a major market crash, and that certainly was. I think we’re going to have the same thing. I think we’re going through the same thing right now. Everything gets hurt, okay? I don’t care how you are invested. Nobody is smart enough to catch every turn. And what you’re really trying to do is get hurt as little as possible.
And people are always saying, “Well, what do you think gold’s going to do? What do think silver’s going to do?” And my answer is always the same. We’re making a transition from a debt-based system that backs our currency with Monopoly money to a resource-based system where resources have some value. I think that in 1980 something like 3.5% of total money invested in stocks was in resources and that’s very low.
And it’s .5% now. The US debt-based system where you fire up the printing press every time you want to earn some votes, it’s over. And people haven’t figured that out yet, but it’s over and we’re going to go to a resource-based economy thanks to t