Don Durrett: There Is No Path Forward Where Gold Doesn’t Do Well

Palisades Gold Radio

In this episode, your host Tom Bodrovics invites back Don Durrett, author, investor, and founder of Goldstockdata.com, to discuss the economic conditions shaping gold’s performance. Don highlights the U.S.’s weakening economy and global uncertainty as catalysts for gold’s growth. He believes that a floor for gold exists at $2,200 due to its inverse relationship with the economy.

Don touches upon the Federal Reserve’s challenges in managing inflation and interest rates, pointing to unprecedented debt levels. He voices concerns about the reliability of economic data, questioning their accuracy and suggesting consumer spending might be weaker than presented. He predicts a potential 50 basis point rate cut due to signs of slowing growth.

The conversation also addresses market volatility caused by Japan’s potential interest rate hike and its impact on the yen carry trade. Don raises concerns about imminent challenges in the bond market, which holds more significance than the stock market, as credit could get turned off when countries reach a point of no return. He advises investing in gold and silver as alternatives during economic instability and predicts significant price increases for these metals.

Don also anticipates that gold miners will benefit from a rate cutting cycle due to their improved margins during recessions.

Time Stamp References:
0:00 – Introduction
1:07 – Gold & Recent Fed Policy
5:46 – Trends and Gold
8:29 – Fed Cuts & History
14:10 – 70s Inflation or Deflation
17:20 – Metrics & Data Revisions
22:37 – BOJ & Western Volatility
26:20 – Political Extremes
32:15 – Asset Tops & Metals
36:40 – Debt Servicing & GDP
40:00 – Rate Cuts & the Miners
45:37 – Insider Activity?
47:33 – Share Dilution & Red Flags
54:38 – Fall Market Direction
1:01:00 – Wrap Up

Talking Points From This Episode

• Gold’s growth influenced by U.S.’s weakening economy & global uncertainty, with floor at $2,200 due to inverse relationship with economy.
• Federal Reserve’s dilemma managing inflation & interest rates due to historic debt levels.
• Concerns about economic data reliability & potential 50 basis point rate cut as signs of slowing growth emerge.

Guest Links:
Twitter: https://twitter.com/DonDurrett
Website: https://www.goldstockdata.com/
Free Trial: https://www.goldstockdata.com/freetrial
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.