We talk with Lior Gantz, owner of Wealth Research Group, regarding his views on the economy, investing, and the precious metals. Lior explains how he got into investing as a young adult by running his own business. During the Lehman crisis, he began investing in precious metals. His financial newsletter was born out of his experience in the precious metals sector after the Lehman crisis.
He discusses why the business cycle has changed this time as people do not have income even though spending by the government has increased during the COVID crisis;
The government programs run out in August, and it is likely unemployment will not be resolved at that time.
The S&P500 is more valuable now because they are gobbling up small business clients;
As this occurs, many people lack real income from both the lack of jobs and failure of small businesses;
The Fed balance sheet is too high to function as a backstop for the economy;
The coming election will affect both the pace of economic recovery and the change in gold price;
The US debt crisis ensures that the long term direction of gold is bullish;
Whether or not the debt crisis peaks in 3 or 10 years is irrelevant to him because he has gold;
Gold has outperformed the markets since 1971, 2001, and 2011, therefore, he is being paid to wait out the debt crisis by holding gold;
He points out that if Berkshire Hathaway had simply owned more gold rather than stocks, they would have been one of the largest companies in the US;
His view that silver is more of an industrial metal than a monetary metal right now, and is more speculative than gold;
Silver premiums can spike when there is a fear of surprise inflation;
Lior provides the key factors that will affect the economy in the coming year, which include expiration of government funding in August, additional COVID related crises, and the coming election.