Recession Proof 2020 | CEOs Weigh In On Investing During A Crisis
Recession Proof 2020 CEOs weigh in on investing during a crisis!
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This is an episode of Cambridge House Backstage with host Jay Martin and guests Rick Rule, David Cole, and Jim Rogers.
Jay wanted to sit down with CEO’s and Investors who are industry leaders and he identifies two key criteria he uses to identify great CEOs and investors:
1. Serially Successful People Predicting Market Trends and allocating cash
2. Sitting on a Surplus of USD
Those three investors are:
Rick Rule – CEO Sprott US Holdings
David Cole – CEO EMX Royalty Corporation
Jim Rogers – Quantum Fund
Heres a summary of what we talked about with each of the three.
67-year-old super investor Rick Rule gets serious about the future of the US economy in this interview with Cambridge House.
“The impact of the virus on the world and on our everyday life is a function that we became too
confident and too fragile.”
Gold is the ultimate liquidity. It’s a medium of exchange that is a form of value. Fiat gives you the
means to invest when a crisis arises.
Rick is very long US Dollars. However, The strength of the US dollar is not reflected in the US economy.
The US dollar gives liquidity to take advantage of other circumstances.
The gold price moves when people lose faith in the purchasing power of savings instruments like USD. We’re in a bubble of fiat currencies
The US treasury has been return-free risk. This is the definition of a bubble.
QE is counterfeiting -and it is debasing the currency. This guarantees that the value of the US dollar will go down.
A forward shift of benefit from older generations and a backward shift of cost for newer generations
We’re also In A Gold Bull Market.
The virus unwinded the last 11 years quickly which should help create a faster reset of the balance of supply and demand very quickly.
Instead of a long drawn-out bear market, the supply/demand balance will move up quickly in 2-3 years after the crash happens. Supply can’t be adjusted back up quickly enough and prices will boom.
The Grey Rhino is in front of us. Be patient.
Barrons Gold Mining index is ripe for a massive increase. The BGMI index as a whole has recoveries of 180% to 1200% on average.
Rick Rule is heavily investing in Gold Bullion.
David Cole – CEO EMX Royalty Corporation
Gold sells off dramatically when people have a liquidity crisis to meet the demands in front of them. This happens during every market crash. This is predictable.
Devaluation of companies because of a lack of income. But the increase in the money supply is going to increase the volatility. The silver to gold ratio has decreased dramatically. 12oz of silver for every ounce of gold on the planet. Silver is much more rare than the price indicates. Silver could be in a position where it is poised for a move. Platinum, Silver, and Gold are great hedges against currency fluctuations.
Have recent events affected copper? Yes – very bearish on copper in the short term. EMX has 50 million USD in the bank and zero debt. Copper is a long term bull.
EMX focuses on the royalty of deals which helps be more strategic with investments.
Jim Rogers American Investor – Everybody should have some gold and some silver as an insurance policy if nothing else.
WW1 was last time something like this happened in August 1914. In 1929 the markets collapsed., but the economy didn’t collapse. 1939 was just a few European countries.
The world is not going to be the same. With the huge amounts of debt the US is adding, this could see power shift from the US to China.
More bankruptcies will happen. The people that can handle debt properly will be okay. Be sure you understand debt.
The human cost of the economic crash will be larger than the pandemic cost.
Jim’s advice to anyone young – Go to China, Learn mandarin and learn the investment business. Understand balance sheets; the nuances. Figure out what has been happening to a companies balance sheet to find out the real condition of a company.
If you liked this video check out other great videos from Cambridge House!
The Coming 2020 SILVER SHOCK: And The 3 Silver Stocks You Must Own
The Next Black Swan Event: Adam Baratta