Silver is the better bargain right now, and it’s not because of the gold-to-silver ratio, which has zero predictive power…
We welcome back Louis James founder and CEO of Louis James LLC, and he is the principal analyst and editor of the IndependentSpeculator.com.
The recent Robinhood and previous bitcoin craze has demonstrated that young people are interested in investing. Lobo’s recent article discusses how this could be a good trend. Potentially this is a democratization of investing, and hopefully, it will have a positive educational outcome that could benefit us all.
He discusses the “Pre-Production Sweet Spot” re-rating, which occurs when a company turns from being an explorer to a producer. Until recently, no one had studied the potential profits. After considering numerous historical companies, it was discovered to average 110% gains and that investing during this time had much lower risks.
Lobo explains how investors can benefit from takeovers and private placements.
He argues that the silver-gold ratio isn’t particularly useful since it doesn’t provide any helpful information. That said, he is very bullish on silver, as it seems very unlikely that gold will decline.
Lastly, Lobo discusses recent events in uranium and why they may be game-changing.
Time Stamp References:
0:40 – Robinhood traders and chasing momentum.
11:00 – Pre-production Sweet Spot analysis.
20:00 – Takeovers and mergers.
24:20 – Private placements.
33:45 – Silver and the gold-silver ratio.
37:45 – Uranium outlook.
42:40 – Industrial and energy metals.