Mickey Fulp: I Own Gold And Silver For This Reason

Maurice Jackson: Germane to buying opportunities, let's shift the focus now onto physical precious metals. Mickey, why do you own precious metals?

Mickey Fulp: Well, I own gold mainly, and it's a hedge and insurance policy against financial mismanagement, which we've seen a lot of right now. And Pelosi wants to put another $2 or $3 trillion into that financial mismanagement. Geopolitical calamity is also a reason to own gold and economic collapse.

And so, I think, as I think you and I agree, gold is real money. Silver and platinum are superfluous holdings for me. I have some, but I have them because they make pretty coins and they're fungible. And at some point, I fully expect to convert a bunch of my silver into gold when the ratio normalizes a bit.

Maurice Jackson: Which metals are you buying right now? And why?

Mickey Fulp: Yeah, well, the outlook for gold, of course, is bullish with all this money printing. And there are lots of reasons to think gold is going to go up. It's consolidating right now in the low to mid-$1,700/ounce range.

Silver is very undervalued right now, with a gold-silver ratio still greater than 100. So, you can argue that silver is a very good buy right now, as is platinum compared to gold. . .the idea is that you buy what's undervalued, and when ratios and valuations tend to normalize, and you sell your silver and platinum and turn it into gold.

For the life of me, I have no idea why anybody would be buying palladium. It's not shiny and beautiful the way that platinum is. It's not called white gold, which platinum jewelry is called white gold. And it's completely overvalued. It went exponential. It's come back. Right now, it's high this year was $2,754/ounce, and as we speak today, it's 1,920, but historically it trades at about a third of what platinum does. And now it's trading for more than double what platinum does.

So it makes no sense for anybody to buy palladium. And because its prices increased so much back in the day—say a decade or so ago—the Chinese, poor Chinese people, would buy it for jewelry because they couldn't afford gold or platinum. And that's not the case now. So only 5% of its demand is used for coinage and jewelry, as opposed to 40% for both platinum and silver.

Maurice Jackson: In closing, sir, what keeps you up at night that we don't know about?

Mickey Fulp: Well, I'm a pretty private person. I'm not sure why I'd tell a bunch of people who I don't know, something like that, Maurice.

Maurice Jackson: Mr. Fulp, last question: What did I forget to ask?

Mickey Fulp: I don't rightly know; why don't you think about it and then asked me next time, Maurice? I'm joking around with you here...

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Barry Glassman 5 months ago Member's comment


Kurt Benson 8 months ago Member's comment

Thanks for sharing your investment ideas with us Mickey Fulp.