What's In The Gold Box? (And How Robust Demand And Uncertain Supply Are Cleaning It Out)

In what may be looked back upon as a historic debate, Stansberry Associates' Daniela Cambone was the moderator in "Bitcoin vs Gold: The Great Debate with Michael Saylor and Frank Giustra."

At one point, under the topic of supply dynamics, she posed to Giustra the question:

Michael has said that as the price of gold goes higher, so does the incentive to mine and prospect it... Ultimately you have to find something that you can't print more of, that doesn't have its fundamental underpinnings tied to fiat currencies.

Giustra responded:

The average period between discovery and production is 10-20 years, and sometimes longer, with the grades getting lower and lower. No world-class discovery has been made in the last thirty years. All the gold discovered in the last ten years is less than half the amount of the gold that was discovered in just one year – 1990 – when gold was under $400/ounce.

The gold mining industry is facing an existential crisis when it comes to its reserves; they're depleting them and they can't be replaced.

Since that interview, the "digital gold-silver analogs" – Bitcoin and Ethereum – have dropped 60%, gold is flirting with a 9-month upside breakout, and retail supplies of both gold and silver, at robust premiums, remain problematic and costly to acquire.

So, what's in the gold box and how will that affect investors for the rest of this decade?

For a number of reasons, the gold supply box will increasingly struggle to meet demand, a continuing secular trend, even in the unlikely event that governments finally get their fiscal houses in order, turning around well-deserved public mistrust.

But wait. There's more!

They publicly work tirelessly to eat away at our financial integrity via inflation – because it's the only way of ever hoping to pay off the insane deficits they've been running. So, why not believe them?

Why Supply Surprises Will "Underachieve"

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Disclaimer: Information contained herein has been obtained from sources believed to be reliable, but there is no guarantee as to completeness or accuracy. Because individual investment ...

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