Schiff w/ Bohm: The Market Will Rotate to Miners

Earlier this week, Peter joined Gary Bohm on the Metals and Miners podcast to explain why recent wild swings in silver and miners are not random noise, but signals of a much larger monetary reset. He ties together forced selling, dollar weakness, foreign holders of U.S. debt, and the bursting of other speculative bubbles to make a case for why precious metals—and especially miners—are poised to benefit as investors hunt for real value.

He starts by explaining the mechanics behind the violent one-day moves in silver and junior miners, focusing on leverage and forced selling that amplifies price declines for a short period:

Well, look, I think to the extent that there’s liquidity issues, it affects the people who are having those issues and only for a short period of time. I think that’s one of the reasons that we saw the big drop in silver and silver stocks and we’ve had a couple of big drops, but I think there is a lot of leverage out there, some speculators are levered up. If the market moves against them and they don’t have enough cash in their accounts they end up being forced to sell stuff.

From there he calls out political marketing around stock indices, reminding listeners that headline Dow numbers mean little for real wealth and that political spin often ignores context:

In fact, his whole administration is pointing to the fifty thousand Dow as if this is some monumental achievement. Donald Trump the other day said, “Oh, they told me it would be a miracle if I could get the Dow to 50,000 by my fourth year.” When he was sworn in it was 44,000. It wasn’t like we were that far away and it took over a year to go up those six thousand points. I mean meanwhile the Dow hit 40,000 and 30,000 when Biden was president; that was a record high, yet Donald Trump doesn’t think that meant that Biden had a good economy.

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