Don Durrett: Gold's Delivery Dilemma - A Price Hike Catalyst?

Tom welcomes back Don Durrett, author, investor, and founder of Goldstockdata.com, to discuss the current state of gold, silver, and the broader economic developments.

During their conversation, gold reached an all-time high, with spot prices near $2863 and futures above $2900. Silver is trading around $32.26, while the HUI (Hard Rock Miners' Index) stood at 328.

The London Bullion Market Association (LBMA) reported delivery delays of four to eight weeks, indicating potential shortages. Lease rates have spiked to five percent, a significant increase from the usual one percent or less. Don suggested this could be due to LBMA supply issues.

Don emphasized silver's role as a proxy for gold, particularly during periods of economic uncertainty. He warned of potential shortages in silver, driven by competing demands from investors and industrial fabricators. This could lead to dramatic price increases if a fear trade begins.

Despite strong stock market performance, Don expressed concerns about an impending "rug pull," where the market could crash due to economic factors like inflation, high interest rates, and tariff policies. He highlighted issues such as consumer discretionary spending constraints, commercial real estate overhangs, and rising bankruptcies in small businesses.

The Fed's inability to cut rates due to inflation concerns was discussed, along with potential implications for the economy. Don speculated that the Fed might resort to quantitative easing (QE) in response to a market crash, though he questioned their ability to manage regional bank crises.

Time Stamp References:
0:00 - Introduction
1:11 - Gold at New Highs
2:58 - LBMA Delivery Issues
10:00 - Thoughts on Silver
16:42 - Institutional Buyers
19:16 - Equity Mkt. Concerns
23:20 - Tariffs China/Europe?
27:17 - Fed & Inflation
33:09 - Tariffs on Bonds?
35:52 - Equity Valuations
37:10 - Banks & Retail
40:02 - Employment & Hires
42:05 - Coming Rug Pull
44:50 - A.I. & Tech
48:00 - Fed's Reactions
51:48 - Cheap Miners?
53:46 - Traders Market
55:24 - Miner Pyramid
59:05 - Royalty Companies?
1:05:36 - Physical First
1:07:34 - Wrap Up

Guest Links:
Twitter: https://twitter.com/DonDurrett
Website: https://www.goldstockdata.com/
Substack: https://dondurrett.substack.com/
Amazon: https://www.amazon.com.mx/How-Invest-Gold-Silver-Complete/dp/1427650241
Blog Posts: https://seekingalpha.com/author/don-durrett#regular_articles
YouTube: https://www.youtube.com/user/Newager23

Don Durrett received an MBA from California State University Bakersfield in 1990. He has worked in IT-related positions for 20+ years. He has been a gold investor since 1991, with a focus on Junior Mining stocks since 2004. Realizing the value of investing in gold and silver and noticing the lack of available material for first-time investors, Don set out to provide information. First, he wrote a book, How to Invest in Gold & Silver: A Complete Guide with a Focus on Mining Stocks. He followed up the book with a website (www.goldstockdata.com) to provide data, tools, and analysis for gold and silver stock investors. His gold and silver mining stock newsletter is widely regarded as one of the best. He is a frequent guest on financial podcasts and a contributor to SeekingAlpha.com.