David Kranzler: Mining Stocks Haven't Been This Golden Since 2001

Tom Bodrovics your host welcomes back Dave Kranzler from Investment Research Dynamics. Kranzler discusses the impact of the upcoming election on national debt and market conditions, expressing concern over the mounting deficit and lack of government spending reductions. He highlights the importance of military spending, handouts, and domestic spending in keeping the economy afloat, but warns of potential economic collapse without significant spending cuts.

Kranzler expresses concerns about the U.S. Treasury and the Federal Reserve's gold holdings. He questions their true possession of reported reserves and lack of audits.

Kranzler believes that liquidity, not monetary policy, is the crucial factor keeping markets and banks functioning in today's hyper-financialized economy. Despite the Fed's reduction in its balance sheet and hawkish monetary policy, M2 has continued to grow, and over $2 trillion has been drained from the reverse repo facility to finance the treasury deficit and prop up sagging markets.

Kranzler expresses his belief that gold's price in dollars is setting up a favorable position and silver's cup-and-handle formation and industrial usage make it an attractive investment opportunity. He also shares his concerns about banks' actual silver positions, the opacity surrounding these positions, and potential consequences if hedge funds request delivery of actual bars from the COMEX market.

Kranzler discusses the importance of understanding the production deficit in the silver market and investing in pure silver plays. He emphasizes that all stock purchases involve risk but is currently watching closely mid-tier producers.

Kranzler also discusses the role of confidentiality agreements and feasibility studies in attracting larger companies to junior mining projects. He encourages investors to focus on a few stocks they believe in and learn how to analyze these stocks for potential returns.

Time Stamp References:
0:00 - Introduction
0:42 - Election & Market Effects
3:24 - Implosion Inevitable
4:20 - U.S. Gold Audits & Fed
11:57 - Liquidity & Banks
16:09 - Fed's Next Move?
20:36 - Precious Metals Outlook
28:38 - Silver Production Deficit
33:26 - Mexico & Mining?
36:34 - Silver Miners?
43:05 - Silver Speculation?
44:44 - Eric Sprott
47:07 - M&A Targets?
50:23 - Feasibility Studies?
55:10 - Streaming Agreements
56:34 - Finding Value in Miners
1:01:02 - Risks & Considerations
1:05:39 - Wrap Up

Talking Points From This Episode
- David's insights on the current state and future trends of the precious metals market.
- Kranzler expresses concern over mounting national debt and potential economic collapse without spending cuts.
- The role of royalties and streams in funding mining projects, and the pros and cons.
- Kranzler's advice to investors regarding focusing on a few stocks and analyzing them thoroughly.

Guest Links:
Twitter: https://twitter.com/InvResDynamics
Website: https://investmentresearchdynamics.com
Newsletter: https://investmentresearchdynamics.com/mining-stock-journal

David Kranzler spent many years working in various analytic jobs and trading on Wall Street. For nine of those years, he traded junk bonds for Bankers Trust. Dave earned a master's degree in business administration from the University of Chicago, concentrating on accounting and finance. He writes a blog to help people understand and analyze what is going on in our financial system and economy.