In this week’s “Resource Heads”, Menachem and I discuss why gold is not money, and cannot be money in this system, Patrick Karim shows me another cool ratio on silver-to-GDI, which suggests the dollar might start crashing soon, Dr. Quinton Hennigh holds my hand while reading some technical news, and I tell the story on Belgium’s decision to postpone its nuclear phaseout by 10 years.
8 things to know from this week’s video
- Belgium delays nuclear phaseout by 10 years. 2 reactors (Doel 4 & Tihange 3) will remain in operation.
- Gold cannot be money in the current system because of its inelastic supply.
- If gold became money, it would have to be re-priced. This would possibly put it at an astronomical price, which would motivate everybody to mine gold and it will waste productivity.
- Gold is not money. Go to the super market and check what prices are denominated in.
- A debt-based system is not bad. It’s bad when the debt is invested in the wrong places. Imagine the amount of productivity we would’ve lost if we had to grow the system only on savings.
- The inflation-adjusted GDI has started dropping, which means the gross domestic income is not keeping up with inflation. Usually, such drops have been bullish for precious metals.
- Eloro’s ore is worth at least $48B, but possibly over $120B. The Iska Iska project has enough potential to double from here on.
- Kuya Silver is finding interesting grades near its project, on which they already reported a resource.
Please read this, and the full disclaimer over here, it really is important and for your own good:
This video should not be considered investment advice of any sort. Some companies mentioned in this video are a paying customer of this website. The contents of this video are general and impersonal in nature No trading recommendations are being made in this article. Be diligent and do your own research before risking your capital. The investment decisions of the author are based on their own investor profile. This includes, but is not limited to, their risk profile, their cash balance and their debts. The author likely has a higher risk appetite than yourself. That’s why you may never assume anything on this website to be personally tailored to your situation. Resource Talks, nor the Author of this article are a registered advisory service and we do not give investment advice. Our comments are an expression of opinion only and should not be construed in any manner whatsoever as recommendations to buy or sell a stock, option, future, bond, commodity or any other financial instrument at any time.
00:00 Belgium delays nuclear phaseout
06:30 Gold is not and cannot be money
14:33 Silver-to-GDI ratio and what it tells us
21:20 Eloro Resources news
25:20 Eloro Resources value calculation
31:50 Kuya Silver news
36:05 Are small veins uneconomical to mine?