“How To Buy a Beachfront Condo…with Mining Stocks” Jeff Clark presents at Metals Investor Forum

“How To Buy a Beachfront Condo…with Mining Stocks” Jeff Clark presents at Metals Investor Forum

[Music] how to buy a beachfront house or condo with mining stocks is that for real am I really going to have the audacity to say that yes I am here we go we’re going to have some fun all right so this is um this is how buying a beachfront condo uh with gold we’re going to start with gold okay now the FED actually tracks uh the price of certain uh regions of house prices and they actually track the uh uh uh price of beachfront condos in boka ratton Florida they actually track this they’ve been doing it for a while you can see so uh this is the ratio of what it costs to buy a beachfront condo and its ratio to gold now this isn’t the number of ounces of gold of course this is just the ratio it’s hard to put the number of ounces the way the FED does their data but you can see look how low it was uh way back in the 70s you can see how high it was and on the far right that’s where we are today that’s where the ratio is so you can see that the ratio would have to fall by three or four times uh to match some of the prior lows which means that a beachfront condo if you’re buying it with gold would actually get cheaper more affordable okay so I think that ratio is going to come down you can form your own opinion I think the gold price is going to go up I think real estate’s uh you know it’s been high and it’s been going higher maybe it stays high but if the gold price goes up you can actually afford it more if you use the proceeds from your gold sales all right so what else we got here all right how about going to a resort taking your sweetie to a fancy Resort for a week or a two or month or whatever the FED tracks this data as well so this is again uh the gold price um uh and its ratio to uh Resorts and this is the average price of resorts this is not Motel 6 is actually a resort like where we are today uh you can see how high it was how low it got and where we are today so not too bad right so even though Resort prices have gone up with the rise in the gold price if you’re using gold it actually is still affordable what else we got how about airfare you got to get to that Resort somehow right so this is the data from the fed and the ratio of gold or what it costs to actually buy the average priced plane ticket in the US This Is Us data uh and its ratio to gold and you can see it’s actually not that bad right so airfare prices have they gone up in the last few years not priced in Gold okay and who likes wine I’m from California so it’s kind of required to drink wine but the average price of a bottle of wine uh in the US and the ratio of it to gold and you can see that even though wine prices have gone up they’ve not gone up priced in Gold so were you going to use Fe at currency to buy these things or are you going to use gold proceeds what else we got who wants a brand new powerboat how about that so this is the powerboat this is power booat not sailboats uh again priced in Gold um you can see how high it was uh what is that 20 years ago and where it is at now so powerboat prices have gone up with inflation like many things right but not priced in Gold if you’re using the proceeds of gold they’ve not gone up okay and ladies and gentlemen here it is buying a beachfront condo in boa ratton Florida with mining stocks this is uh using The Baron’s Mining stock index and that same uh uh uh uh number I showed you earlier with for what it costs for a beachfront condo so you can see how uh volatile this ratio has been how high it was how low it’s been that’s because gold stocks obviously are more volatile than gold itself but you can look and see how low this was you can s look and see on the far right where we’re at today the ratio so that ratio could fall three four five times if mining stocks outperform what a beachfront condo and Booker ratton goes for okay so that’s what I think is going to happen because we’ve started a new bull market I think we’re near the bottom or at the bottom for the Junior market so uh I think a boka Raton beachfront condo is going to get more affordable if you use your proceeds from gold stocks all right so uh the timer didn’t start so I have no idea where I’m at um so there you go uh I want to go over this chart because it shows you all of the uh run-ups in the gold price the uptrends the up cycles and you can see there’s great variance some have been big some have been small but if you look there on the far right that is the average of What the or excuse me that’s where we are today so Gold’s been going up for about two two and a half months and so if this were the end of it it would be the shortest and lowest in history in modern history so the natural question that comes up when I show that chart is okay how long did those gold up Cycles last well here you go here’s how long they lasted you can see again there’s great variants some are short some are long the second from the top is our current one so it’s about two and a half months now from when I did this chart but and then the top bar is the average the average duration of a gold upcycle and you can see it’s about 2 and A2 years so at 2 and 1 half months we’re pro this probably is not over right and here’s more evidence of that the current bull market is just getting started this is measuring actual bull markets not just upcycles and you can see where we are today this chart’s about a month old uh but you can see where we are this is not uh this is just getting started if it were to stop now it would be the shortest and poorest performing gold boo Market in modern history okay a few more quick things one is is I believe there’s going to be a lot more m&a coming pardon me and the reason for that is uh I think it was Hugh at Revival that showed this chart earlier the the number of exploration uh projects that have been successful and the number of discoveries we’ve made how many ounces are coming on that’s the Gold Line versus the black bar that is um uh gold production so you can see the number of discoveries in the gold bars excuse me not the line are really lacking to keep up with production so it is actually cheaper right now to for producers to buy ounces than it is to go out and explore and develop and permit it’s cheaper for them to buy and so therefore when all of these people up here make a big Discovery right when they all make a big Discovery it’s more likely that they’re going to be bought out than uh somebody coming along and trying to just um develop on their own so keep that in mind in fact that could be one uh Catalyst for our sector right is uh a big acquisition a big m&a announcement that catches the attention of not just our industry but even generalist investors and them going wow look at that that could be a catalyst for our sector okay so I’m going to have to go through these real quick but some of you are probably still thinking uh Jeff I don’t know about this buying a beachfront condo with with mining stocks I’m going to give you hundreds of examples real fast these are all in Pay Dirt by the way uh of stocks that have hit payt uh and brought investors big returns this is the 1979 1980 Mania you this period only lasted about 13 months give or take and you can see the return of some of the stocks during that period during 13 months this is what they did the average of all those is at the bottom I’ll put the average of all of them at the bottom who remembers What happened to the gold price in 1981 1982 1983 IT it bombed it was completely flat um we had the the big Mania and it gave most of it back so how could there be gold stocks or mining stocks that did well during that period well it was because of Discovery so around the Hemo area there was a big Discovery again I think that’s something that could be a catalyst for our sector a big discovery that makes headline news that could bring investors into the junior sector anyway you can see what they did there and here you go this is the mid 1990s what were the mid1 1990s called the nuclear 90s by miners because gold and silver were dead they couldn’t make any money their earnings were really bad so you can see there what they did in the mid1 1990s with a flat gold price and the average there at the bottom I show this chart because here’s the 2001 to 2008 bull market right we had the big run up to 2008 the big crash and then the big runup again to 2011 so I have the producers are at the top the Juniors at the bottom with the averages in there as well um so you can see that if you got shaken out you might have missed the big upside there so 2016 uh how many you remember that all of a sudden gold and silver spiked just out of nowhere almost and there were a lot of stocks that did very well you can see the top there I think that’s pretty producers and juniors I think I have there uh so you can see just how well they did during this period And I have the averages there the catches you had to be invested before it happened kind of like right now right I have many more examples of this in the book Pay Dirt uh just look through some of these look at green highlights there’s the people that some of the people that are in the book I had 17 people in the book uh in addition to what I wanted to say um and I asked every single one of them hey give me a couple examples of when you personally hit per with a with a Mining stock and there you go look at some of those returns quite incredible another thing I want to get across is is that there always are going to be Corrections in our sector okay this is the 2001 to 2011 bull market this is a bull market and yet look at all the corrections that were there there were what is that 20 Corrections during a bull market the average of those Corrections is the bar on the far right so the correction we’ve currently had if you agree with me this is a new bull market the current correction is about 4% so if gold falls back down to 2100 it would be historically very normal okay I’m not saying that’s what’s going to happen what I’m saying is you want to be prepared for correction in our sector because they’re going to happen even in a bull market they even happened in a mania this is the 1979 1980 Mania it lasted you know for the for gold it only lasted about 13 months for gold stocks it lasted almost two years but these are the corrections that we had during a Mania in gold and miners again the average is on the far right there you can see just how much they corrected so Corrections are normal we have to be used to that so what does that tell us as investors in my opinion it tells us you do need to take profits if you get a big runup doesn’t mean you need to sell the whole position if you really like it take some profits and then if whenever we do get the next correction because there will always be Corrections that’s when you can buy something that you may have missed the first time around so I’m really proud of the the website that we put together we have a ton of resources now on the site but I want to tell you a quick story first about number one there so 2008 came and we all remember how bad that was right it was a scary time and gold crashed all the miners crashed uh at Casey research the policy was well you know if people want to truly speculate now is not a bad time this is October November of 2008 very bottom in fact gold bottom did you know on how Halloween day of October 2008 so trick or treat anyway we advised that and there were some uh investors that that did do that some subscribers that did that I didn’t it was just too scary I I just it was just too scary I couldn’t do it so I didn’t pull the trigger and what happened well I showed it earlier but many of those stocks soared and we got a lot of thank you letters as Gwen probably did as well of all these uh sub subscribers that made a serious boatload of money because they bought at at a big depression so when Co rolled around what did I do in March of 2020 it was getting very ugly very scary everything’s crashing right I started buying and I bought silver I think the low I got was 1305 spot price was the low I got I bought silver twice I bought some gold but what I really did was loaded up on miners I mean I seriously loaded up and by September of that year my entire mining portfolio not one or two stocks my entire portfolio had gone 5x I ended the year at 4X so you might say I love big dips and I cannot lie because it worked very well okay so I think we have a similar situation right now Junior minor have been completely beaten up and destroyed right so I am buying fairly aggressively so and that’s that’s the advice that we’re giving uh so we have the free site there that’s the gold advisor.com we cover 21 companies actually now for free you just have to register you can get our analysis for free we track every news release that they produce we have the paid newsletter paid or prospector just start of that that’s been a lot of fun I wake up every morning and I love what I do I wake up and like all right who’s who’s got some news today that I can really talk about so uh that’s more of an alert type service though it’s not a daily type of thing it’s whenever there’s news and then uh the book P there on the right I have a couple copies left I think if you want to want to buy one so lastly how many of you are going to miss Gwen Preston it’s a yay so so Gwen we’re all going to miss we’re sad to see you go but thank you for selling me your business I really appreciate that but seriously uh I’m going to do my very best for those of you who are subscribers to Maven resource when you come over you’ll be P prospector subscribers I think Wen and I are the ones most aligned and so we’re very excited about that um Peter KRA is coming over as well so those of you subscribe to his silver newsletter that’s coming over as well um so I’ll do my best to mimic what Gwen does the only thing I will not do is I will not put a dress on so you cannot expect me to do that [Music] so for

Jeff Clark of Paydirt Prospector presents “How To Buy a Beachfront Condo – and Anything Else – with Mining Stocks” at Metals Investor Forum in Vancouver on May 11, 2024.
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