Bizarro World Episode 137: Generational Struggles & Opportunities
Update 10/05/2021: Commodities continue to melt-up. Natural gas was higher again overnight. We have been delivering commodity profits to readers all year. Below, we discuss why that commodity run is set to continue, including specific ways you can profit from it now.
September saw the worst stock market performance in over a year.
Gold is lower while the dollar and bond yields strengthen.
What’s ahead in Q4?
More inflation, especially on the energy side of things. We’ve had members in oil, gas, and battery metals all year — putting that inflation in our bank accounts instead of letting it eat into them.
There is still a generational opportunity ahead in commodities. We get into why.
Plus: Cops are distributing fentanyl in Ohio…
Why Austin is no longer sending cops to non-emergency calls…
And a circuitous discussion about monetary policy, homelessness, and universal basic income.
Table of Contents
1:20 September Stock Market Selloff
2:20 Gold: Dollar, Bond Yields, M&A
7:15 Energy Inflating: Oil, Natural Gas, and Battery Metal Profits
11:58 Inflation Lies & Debt Ceiling Shenanigans
15:55 Ohio Police Officers Arrested for Fentanyl Distribution
19:10 Austin No Longer Sending Police to Non-Emergencies
24:05 Homelessness, RV Living, Low-Income REITs, Universal Basic Income
33:15 A Generational Opportunity in Commodities: Copper, Silver, Uranium
Gerardo Del Real: The Dow is a loser. Transports, loser. NASDAQ, loser. Lot of losing going on. But a lot of winning going on. We'll get into it. We'll talk gold — the week of excitement that really wasn't. We'll talk M&A in the space. The 10-year bond has gone wild. Cops are staying wild, selling fentanyl and being oath keepers and all sorts of bizarro madness. The fed keeps lying. Rent keeps going up. Austin, Texas is redirecting 911 calls to 311. And the debt ceiling. Lots to get to. I am Gerardo Del Real along with my co-host Mr. Nick Hodge. This is episode 137 of Bizarro World. It's earlier in the week. I thought it appropriate we record today on Thursday as I'll be out tomorrow. And it's the end of the month. So you all will listen on Monday. This is being recorded on Thursday. Nick, first and foremost, how are you, sir?
Nick Hodge: I'm feeling blessed to make it through another sell-off in the stock market. Gerardo, how are you?
Gerardo Del Real: I am well, thank you for asking. The Dow dropped 500 points to close the quarter, to close the month. It's the worst month since March of 2020, Mr. Hodge. That didn't get you in a pinch there? You weren't feeling that in your portfolio, Nick?
Nick Hodge: Not feeling it. Well feeling it, I see it reflected, but I don't feel like it's going to be that in the coming weeks here. I think it's another of your monthly selloffs. On the resource side of things, specifically on the gold, it certainly hasn't been as good. Feeling that a bit more we can talk about all that and why I'm content to just hold those gold holdings. Like one would hold a crypto perhaps. And we can also talk about why this was another "yawner" selloff in the market, wherever you want to go.
Gerardo Del Real: Let's start with gold. We had a pretty pronounced selloff. We've had the US dollar make a nice little run. I've always said, I sound like a broken record to anybody that's followed my stuff that in order for gold to break out to new all-time highs, new all-time sustainable highs, I should qualify that, it was going to have to do so alongside a rising dollar, at least initially. And you know what, frankly, the last three times that it's tried, the dollar's gone up and gold has gone down. The ten-year yield goes up and gold goes down. We know the inverse correlation there. I do believe there has to be a break of that if we are to see new all-time highs in the gold space. I also believe, Nick, just like you and I were talking about uranium months ago and the generational opportunity that it wasn't an if or it wasn't a win.
It wasn't an if, it was a when, the gold space is giving you a generational opportunity right now to buy quality deposits and quality management teams for pennies on the dollar. And I urge everyone who thinks that they missed out on the first leg of uranium profits to reconsider that because I think there's more coming and I'm really urging everybody to really fine-tune their gold portfolio. I will be making several changes in the monthly service here in the next month or two to take advantage of this new market and by new market I mean, there's a lot of stuff that's just really cheap out there right now, which makes it nonsensical to continue to gamble on couple of million-dollar explorers that yes, they could be lottery tickets. But when you have companies that are sitting on three, four, five million ounces trading at a discount to their peers today, hard to pass that up and keep the riskier companies in the portfolio while those are out there for the getting, right?
Nick Hodge: Gold's definitely shaping up to be a contrarian play. You started talking about the dollar and rates and both of those have been, I'm doing air quotes again — “breaking out” — because if you hit your scrolly wheel on either of those charts and zoom out a little bit, you'll see neither of them, the US 10 year yield, or the dollar is evidenced by the DXY index, is back to where they were last time. If I'm looking at the dollar specifically, it's just above 94, the last time it tried to break out in September, call it... last fall, it was right to the same level. And so if it fails here, getting a big technical, you'll have a inverse head and shoulders and similar with the bond yields, right? It's sort of just noise in the background right now.
I think you had historically a choppy September, which everyone knew about, to get people coming back from labor day, doing a little bit of rotation. And then as you said at the beginning, you've got not only the end of the month, but the end of the quarter. And so last week, and you made a good point about going up the value chain, we sort of were talking about this last week. You said that gold was in a timeout. I told you I had been buying Kinross (NYSE: KGC) and it had gone even further up the thing, looking basically the biggest of the biggest. And I wasn't the only one, which I'll get to in a second. Looking at FrancoNevada (NYSE: FNV), etc and then I tweeted this week, Newmont (NYSE: NEM) with the recent price drop is yielding over 4%. That's a very high quality dividend yield.
And so all those are things to look at buying. And then a couple of things I guess more to touch on gold is it's simply out of favor. We know that the M&A has to come. We know that the majors in the mid tiers have to replenish their reserves, but even that sort of M&A boom is down the road, because it seems right now, they're concerned with making themselves bigger, I guess, to get larger balance sheets, to make the acquisitions that they know are going to have to come. Of course, we saw the Barrick/Randgold and the Newmont/Goldcorp mergers a year or two ago, and here we come into this week and what happens? You had Agnico Eagle (NYSE: AEM) making a move on Kirkland (NYSE: KL). I don't know if it's making a move. They're calling it a "merger of equals", but no premium assigned and both stocks down on the news. It just showed me utter lack of appetite for gold stocks right now, which to your point is as contrarian as it gets.
Gerardo Del Real: As contrarian as it gets is correct. And with that being said, there are still lots of ways to make money in this market. You've played the energy trade beautifully. Do you want to chat about that? I know you wrote about it earlier this week.
Nick Hodge: Yeah. I'd love to talk about energy. It's the only sector of the market that's up over the past week. It continues to go up as evidenced by multiple commodities. You had Brent crude hitting $80 this week, natural gas shooting up over $6 dollars, up from $3 less than a year ago. And it's just more of the same, right? You're almost getting tired of taking victory laps about being right about inflation, except that we continue to profit from it. So it's hard to stop talking about. We were in XLE starting in November and wrote that all spring, and then rotate it into XOP which includes the developers, not only of oil, but of gas, which I just told you spiked to over $6. And so that's at a very fundamental level, right? That's a big S&P sector and those prices, I think, are going to continue to inflate. It's literally a commodity melt up right now. I think it was Bloomberg this week was writing about aluminum prices, which we've cited on this podcast before, right?
Gerardo Del Real: And I don't even have a Bloomberg terminal and we knew.
Nick Hodge: And they were saying that Bloomberg was an energy, it's because energy is inflating. That's why aluminum is going up. All these things have a reason, which we've always told you, right? The coffee was the weather in Brazil, and now the cotton and the cocoa and the other food inputs, OJ and pigs are because of the weather in Brazil. And there's these shipping things and supply chain constraints. And it's like, yeah, that's all compounding it, but you're all making excuses because you are wrong about inflation. The ultimate reason is because there's more dollars chasing these goods. It's as cut and dried as that. And then specifically in energy, that's a long term, large trend. That's not going anywhere. Even before the electrification of everything, one of my big trends was “buy it if it burns”, right?
Some 7 to 8 billion people aren't consuming any less electricity and something else I mentioned the other week. How do you think you make steel, for example? Or how do you think you power a smelter for example? And so, anyway, the energy trade has been a very good one. And I guess just to put a cap on it, we've also been doing the Star Gas thing here, which I continue to be excited about in the fourth quarter. You would've missed out on that by the time you hear this, but energy has been one of the best-performing sectors of the year. And we've been on it like you say the whole time.
Gerardo Del Real: Well played, sir, take a victory lap on that front. Energy is the one space in the resource space that I don't feel qualified to dabble in just because it's not something I have a very, very strong background and so great work there for subscribers. Last week we talked about some opportunities in the market. We told you Patriot Battery Metals (CSE: PMET) was likely do for a bounce. That was up some 35% this week and looks like it's headed higher. Aldebaran Resources (TSX-V: ALDE) up 18, 19% today, it's near 52-week highs. It's drilling a high-grade target that John Black, the CEO describes as a potential game changer. Mind you, this is a company that already has a massive resource, copper-gold resource. Looks like that's going to get a lot bigger and in a hurry. It's now contracting four drill rigs to the property drilling starts any day now. Excited about that.
So look, whether it's copper, gold stocks or energy stocks, or you name it, battery metal stocks, there are ways to make money in this market. And as you do, it's going to be important to trim some of those profits and rotate into the stuff that's not getting any love. And man, there's a lot of stuff not getting any love that deserves it.
Nick Hodge: For sure. I mean that's what you and I are looking at week in and week out. And I've got an issue here to write today. I might take a swing at one of those things. We'll have to wait and see.
Gerardo Del Real: There you go. I think a perfect way to kind of close out the quarter in the broader indices is Bed Bath and Beyond (NASDAQ: BBBY) diving, more than 20% trading like a junior, right? And it's like, who could have not seen this coming? There's supply chain issues. There's labor shortages. They can't get this stuff to this store that they need, and they can't get people in the store to put the stuff away. So not really a big shocker there, but again, just like you said, a lot of people have been on team transitory and a lot of people have lost a lot of money doing so. I never take pleasure in seeing people lose money. I want everyone to have upward mobility and make money. But at the end of the day, that was not a call that was hard to make. The inflation is real. And we're starting to have the conversation now about what is the meaning of transitory. They’re saying there’s no timeline for transitory. Get the fuck out of here with that. You missed the call. You lost money. It is what it is. Pivot and get to it, right?
Nick Hodge: Exactly right. And you got the federal reserve chairman up there still telling you there is no inflation or what was another fun one I saw this week… Oh, the banks want you to believe there's no inflation because they don't want you to be scared about the market. So I got an email from Schwab this week and it was a diagram of a chicken. And it was how basically every part of the chicken cost more, the wing costs more, the leg costs more, the breast costs more, the thigh costs more, a lot more, but the whole chicken doesn't cost more. And so that's why there's no inflation. And I had a great chuckle. I mean what kind of justification is that, right? You're paying more for every single piece of the chicken. I mean, what does the American family buy more of? Whole chickens or individual pieces of chicken? I mean, come on.
Gerardo Del Real: You should have sent them the last episode telling them what's in that chicken, that every chicken is diseased.
Nick Hodge: That is some serious mental calisthenics they’re doing to avoid acknowledging inflation. And I think people are seeing it more and more. We had a really great episode last week titled Watch Me Which from My Neigh-Neigh about how the new administration is the same as the old administration. And I know you had debt ceiling on the list and it's a pretty good segue because even the media is on board with the debt ceiling thing. They try to make it a thing, right? And it's been going on now for, and it fits perfectly into the generational turning, for 20 some years, right, when Mr. Gingrich started doing that dumb shit back in the 1990s, because he wanted to cut social security.Clinton didn't want to. And so Gingrich started with the debt ceiling bullshit and they've just been doing it ever since. And it's just so dumb that everybody is starting to see through it. And that I think is part of the turning. I think that is part of this generation's coming of age and it's part of the deinstitutionalization right, where people are realizing that politicians and the system aren’t on their side. I always post that cartoon about the March of Tyranny with people saying, “next time I'll vote Democrat, next time I'll vote Republican.” It's like you get the same shit under the administrations, no matter which party is in charge. And we've seen that now for over literally two decades with this debt ceiling thing where it's just a trick. I mean, it's all it is. It's never come to pass.
There's always, "They averted the debt ceiling at the last minute." No fucking shit. They've been doing it for 25 years. I mean, what are you expecting... they make fables about this. The Boy Who Cried Wolf and shit. It's so fucking dumb. And people are finally starting to I think realize it. No one gets worked up about the debt ceiling except for the people who need it to be a story. Right?
Gerardo Del Real: There are people floating the trillion dollar coin out there again. Did you read that one?
Nick Hodge: And that's a ten year old idea in itself. Literally I looked it up. We were talking about it in 2011.
Gerardo Del Real: It's a bizarro world out there, everybody. Meanwhile, the boys in blue continue to run wild, right? Did you read the story about the Columbus police officers that are with the police drug cartel unit, which were arrested in charge with distributing nearly eight kilos of fentanyl?
Nick Hodge: That's a lot of fentanyl. I did not, but I would love to hear.
Gerardo Del Real: That's a lot of fentanyl. And jokes aside, we've both known I think people that have been exposed and have lost their life. And I think everybody knows somebody that knows somebody that's passed away from overdoses. And a lot of the overdoses come from people not knowing that some asshole laced their coke or their heroin, or even their weed now with fentanyl. And so for cops to be out here as part of the police drug cartel unit, distributing fentanyl into the community that they're supposed to protect and serve, I hope they put these motherfuckers under the jail, if they are guilty.
Nick Hodge: So they were doing it illegally, it wasn't a covert police operation? They were dealing drugs?
Gerardo Del Real: They were illegally distributing fentanyl. Look, one of the officers, Marco Merino, tried to recruit a confidential informant. You know how I feel about those? Because for exactly this reason, I think because they're zero accountability because they're not on the budget, they're not on the payroll officially, there's no accountability as to how many of these people are running around, creating crimes for creating crime's sake, for whatever agenda, the FBI or the government or the CIA may have. I am so against the confidential informant being in the way that we use that as a country here in the United States. So what this officer did is he went up to this confidential informant and he said, "Look, I want you to sell drugs for me. And I promise you that you'll have protection from the drug cartel unit, which is the unit that I officer Merino work in. If any other government agency comes in and arrests you or tries to investigate, I promise I'll intervene." And so obviously there's a paper trail. This cop Merino between March, April, May, August and September of this year, he accepted $44,000 in cash in exchange for protecting the transport of at least 27 kilograms of cocaine and seven and a half kilograms of fentanyl. So not only are they not arresting the people and I'm not a war on drugs guy, I actually think it's one of the stupidest wars ever, right? I believe that drugs should be decriminalized and we should focus more on education. But that aside, this officer's job is to protect and serve the community and get the stuff off the streets. What you have are, I guess, in another case of a bad apple, bad apples, a breach of trust, rogue cops out there, literally dealing through confidential informants, the drugs in the community they're supposed to be taking out.
Nick Hodge: Was he arrested?
Gerardo Del Real: He was arrested. He's been charged. We'll see where it goes. I'll keep an eye on it. Two officers were actually arrested. So it's a slippery slope out there that brings me to Austin, TX. Austin is looking to become a model of police reform. And there's a big debate here in town right now about how to best go about that. And so they've been cutting the budget. We have an all-time high in murders. Is it correlated? Is it not? I'm no expert. I'm not sure. I know we have more people in Austin than we ever have. So I would assume you would have more crimes. But now what we're doing is we are deferring the 911 calls and making it to where, if there is a case of animal service, auto theft, burglary of residence, business or vehicle, crashes not requiring a tow, COVID-19 violations, verbal disturbance, prostitution, suspicious people, vandalism or theft, all non-emergencies, now you are being asked as a citizen to call 311.
And so civilians, not police officers, would be handling these calls, these cases. And so I don't know whether I agree with it or not. I've often said on this podcast, I want to make sure my taxpayer dollars are being used efficiently and effectively. I don't want you bothering the kid with a dime bag. I want you to go and find the child sex traffickers, right? I don't want you to be harassing the group of kids that maybe are having a drink and shouldn't be having a drink. I want you to go get the fucking people that are giving the alcohol to those kids. And I want you to go get the rapists in the community and the people that pose real threats to our community, not the stuff that just makes it to where you have paperwork to do. And you're busy for busy's sake. And you pat yourself on the back, because you got some kids off the street.
So we'll see how this plays out. It's interesting to me, it's an interesting experiment. Any thoughts on that, Nick? Have you seen this work in other places? You lived in Baltimore for quite some time.
Nick Hodge: Is it because of a lack of services that they're doing this or is it part of police reform that they want people without a gun to respond to nonviolent things?
Gerardo Del Real: They want people without a gun to respond to nonviolent things, but it is also tied to a police budget, which was cut down by one third. And so Austin police are saying that there are 300 police officers short of where it was before the budget was cut. And so this is their kind of way of responding to trying to efficiently allocate the capital that they do have in the budget that they do have.
Nick Hodge: I think it'll be a good test. I mean, that's one of the solutions that at least I'm on board with is more community policing, dispatching social workers to certain situations instead of armed police officers that have been shown to escalate situations in the past that can end in deadly force. And so I think it's an interesting test and I'd be eager to see the result. You asked about Baltimore. I mean, they didn't have the resources to... they didn't do anything about 311 or anything like that. I mean you call for something simple and you might not even get somebody to respond at all. And so Austin's budget is probably a little bit better and the tax base is probably a little bit more robust. The hiring shortage is one thing, but I think that this might be a good experiment.
Gerardo Del Real: I actually agree with you. I talked, I think last week or the week before, about the incredible job that they've done with cleaning up the homelessness at the very least in downtown Austin, right, which is the most tourist-centric part of Austin. I mean, two months ago you drove down and it was a tent city everywhere, and now you drive down and that is done. Now we could have a good debate and we could have that another day, I guess I'm sure people feel differently than I do here in the city, but we could have a good debate about where those people were put and where they went and the money that was allocated to get that done.
But the bottom line is the city got that done. And so I look at places like San Francisco where you and I have gone to conferences before in meetings and going to Starbucks can be an adventure, right? Even if the Starbucks is right up the street. I'm glad to see them clean it up here in Austin. And I hope that this pivot towards allocating capital to real emergencies, nonviolent situations to civilians, I think it's a good move. I'm curious to see what the training for those civilians will be.
Nick Hodge: It's a good segue actually to talk about the homeless here in Spokane as I've told you it's a real problem. You see these stories every day, about how first time homeowners can't afford a house because they can't come up with the scratch for the down payment. And they're facing people buying second, third, fourth, fifth homes who got that scratch for the down payment. And that speaks to the wealth inequality and how it's worsening. And that of course is a function of your government's policies and the federal reserve's policies, which I think we need to continue hammering home so people start to realize that. In a very real way, you've got this trend of the disappearance of the middle class continuing and people getting squeezed out of their homes, which was already a trend, but now even more and more as rents start to rise and as inflation takes hold, and as there's less or fewer people in the workforce.
And so a couple of things I just wanted to mention, this is a theme I was writing about, I think two or three months ago. It's another one that you can profit from, right? Because you can own REITs that own low-income housing or that own RV parks, for example. And so I wanted to talk about RVs for one second, because it's a brilliant tale of two Americas. And I'm big on those. So everyone's buying RVs that have money because they're traveling in RVs and RV parks are full and the rates to park your RVs going up. I'm talking about the nice ones — popout sides, the Meet the Fockers RV, right, that big thing.
Gerardo Del Real: Yeah, yeah, yeah. That she-can-bring-her-friends RV.
Nick Hodge: That's exactly right… Where you're towing the Jeep and your boat behind it. But a lot of people now are forced to live in RVs. And so as a result of the wealth inequality, that again is the policy of the US government and the federal reserve. And so just an anecdote, but one that will evolve much broader than an anecdote. I read this site NextDoor from time to time because I like to see what people are bitching about in the community. And one of the hottest topics, the one that I see gets the most replies, is about the RV parking ordinances in the city. You can't have an RV parked in the same spot overnight. And so there's lots of people living in RVs in the city, right, which I just went over. And the law says, you basically just got to move it one parking spot and you're good.
And so I saw on NextDoor somebody had posted today that their parents were forced out of their home. Their landlord sold the building. And then the new owner, I don't know what happened, they either raised the rent or something that they were forced to leave and had to live in the RV and they were parking it outside their son’s home. And oh my goodness, Gerardo, there were hundreds of comments. People talking about “that sucks, but I don't want this fucking RV in my neighborhood.” And then all the way to the most compassionate part of the spectrum where, "Oh, it'll be all right. They can leave their RV there for a couple of days."
But you've got people really worked up about this right, spending time being mad about RV's parked in their community and things like that. And again, I would say that's the wrong angle. And so I'm speaking from someone who drives 25 minutes outside the city every night to my 40 acres where I don't see it. I can't even see my neighbor. But my point here I guess is a couple of fold...
One, if you can see through that or are rying to see through that, or, and you're educating yourself and learning, like I said, previously, you can invest in trends like that. And get yourself on the right side of that wealth inequality. And at the same time, you can look at that and just see it as a clear cut example of a symptom of wealth inequality. And no one wants to have that. Let me not say no one. I think we're edging towards having that debate about why there's this two tiered culture of RVs and why this couple, this elderly couple, has to live outside their son's home in an RV as opposed to fighting about why this RV is parked in my neighborhood.
I don't know if that makes any sense, but it's a different level of thinking and it ties back into that generational thing and people, culture, society, having a different view towards things. And so I think it's been very materialistic for the past 20 years. Boomers and their McMansions and brands. And I think we're getting to the end of that cycle, right? The end of that turning, the end of that generation, where you're going to see people philosophize or think more deeply about the root cause of that RV stuff, instead of being caught up in the in-fighting. Maybe I'm just being a little bit too idealistic. But anyway, until all those people wise up, I'll just be over here owning a low income REIT.
Gerardo Del Real: That was really well said. I've often said that I am actually on your side of it cautiously, right. But I'm cautiously optimistic that this youth is going to come in and kick the old guard out and completely reform the system in all aspects, whether we're talking the financial system, the way we approach social issues, the way we approach sex and sexuality in this country and the world, the way we approach prison reform and everything that goes into that. It's going to take some time. And we know, we talk about it often... turnings are not smooth rides, right? There's a lot of volatility that's attached to that. So prepare yourself for that. But yeah, look, we can't keep going this way. We can't be $28 trillion in debt, people not being able to look and identify upward mobility.
Very few people are able to look and say, "Oh, I know how to take a $100,000 and turn it into a million and turn it into $10 million." For most people, just coming up with that $100,000 is unreachable. It's not something-
Nick Hodge: Exactly. It's like the down payment for the house.
Gerardo Del Real: Just like the down payment for the house. You got it. So great. Real estate is up 45% year on year here in Austin. Well guess what, if you didn't have a house, sucks for you, right. It just got a whole lot harder. And you missed the run up. And so that can't continue. And again, I'm speaking from someone that's benefited from the bullshit that goes on with the central bankers, because I saw the trend and identified it early and was fortunate enough to at a very early age, in my early 20s, begin buying real estate and then selling real estate and holding real estate as an investment. But at the end of the day, again, there's going to be a day of reckoning that isn't going to be limited to a day. And so, yeah...
Nick Hodge: But eventually they're going to start asking sort of, and it's not quite Occupy Wall Street stuff, because it's much bigger and broader than that... soon people are going to start asking, "Why can we buy all these billions of dollars of bonds every month but we can't put that homeless couple up in some sort of shelter?" And that's where you get into this sort of universal basic income and things like that, which was an idea that we've talked about a little bit, and I've said in the past has grown on me over time. Because as a libertarian, the UBI doesn't initially smack you as a good idea, but then when you reflect on it, I would certainly have printed money or QE money or funny money go towards building homeless shelters than I would towards buying bonds via BlackRock — 100%.
Gerardo Del Real: Absolutely. And again, not to keep pounding our chest, but we were talking about BlackRock and hedge funds coming in and doing it here in Austin months ago, I think 6, 7, 8 months ago before anybody was talking about inflation, before anybody was talking about 44% year on year price appreciation. What do you think drives that people? It's capital. And where are the pools of capital, the real ones, the large ones, where are they concentrated? Well, we know where it's coming from and we know where it's going. And it's not a coincidence that it's going into real things and real assets, which again, just to bring it full circle, that's exactly why I believe there's a generational opportunity in commodities. In gold. Silver’s looking beautiful right now after breaking down this week in a very ugly manner.
Go to a store and try to buy an ounce of silver for $22 an ounce and see if you're able to do so. It's not going to happen. A lot of ways to make money, a lot of things I'm excited about here for Q4 and I actually still think we'll close the year with gold above $2,000 bucks, believe it or not. I think this is a good setup for it. We'll see. Everybody has opinions. Nobody really knows. But I suspect we're getting the energy to clean out a lot of the BS that's been in the market.
Nick Hodge: Silver's $31, the cheapest coin I can buy on APMEX.
Gerardo Del Real: There you go. Which one do you believe? $22 on the silver spot price or $31 for the physical stuff. Sooner or later, one of those has to be wrong. Right?
Nick Hodge: That's what I mean when I quote Mr. Dines: look and don't think. Look at the housing prices going up, look at the real prices of metals. Look at the real prices of food. I think when people start to look.. look at the border agents whipping people from their horses with a democratic president. Right? Look, look, look.
Gerardo Del Real: Yeah. And don't argue about whether it's a whip or rein, dumbasses.
Nick Hodge: Right.
Gerardo Del Real: What are you watching in the markets this week, Nick?
Nick Hodge: Gerardo, I got to talk about uranium still because I still think there's a great buying opportunity there. I think there's a lot still to unfold. I'll give you the same answer I gave last week as far as earning season as well, because I think we get into October and these volatile days of late September are going to fade fast once earnings start coming out. So looking forward to that and getting here into the end of the year, I should also mention New Orleans, because I'm about to book my flight for that. I don't know if you have yet, but I got to get that done. And so I know that's not market in the next week, but it is a conference we'll be going to in the next couple of weeks here. And if you have any interest in doing that, you should get that done because you're going to run out of time. We’ll be speaking at the New Orleans Investment Conference starting on October 19, and would love if you could join us there.
Gerardo Del Real: Absolutely. I would love to see people out there, would love to shake your hand if you're into that kind of thing. Nick will be presenting. I'll be presenting alongside them. I believe Nick will also be on a panel. And look, it's a topnotch conference. It's my favorite conference of the year. It was the very first one that I ever went to when I was on the retail side of it. I'm just trying to learn the business and I was able to network and meet some pretty incredible people that have helped me out along the way, including Mr. Hodge. So look, exciting times, excited to get out there, excited to see people in person again and excited for Q4. I've been waiting for October all year long. I think it's going to be a great month and a great fourth quarter.
Gerardo Del Real: And I would really encourage everyone again, top off that list of gold explorers and developers, because it's not going to get much cheaper. Though I do think we're in for another couple of weeks, maybe four weeks of bumpiness with people front running tax loss selling, right, which is coming.
Nick Hodge: For sure. And not just tax loss selling for tax loss selling sake, but tax bills coming due in October for those who delay as well. So...
Gerardo Del Real: I delay.
Nick Hodge: As one should.
Gerardo Del Real: I will delay as long as they let me delay and be happy to pay the extra little percent because I know I can do more with it than they can.
Nick Hodge: That's exactly right.
Gerardo Del Real: That's it. That's all I got. Mr. Hodge, anything else you want to add?
Nick Hodge: No. Well, I think that we're reaching a bit of peak anger in society and with this pandemic, which to me says it's time to revert back a little bit. So I think we'll be in calmer times in months ahead, and the deaths and the daily infection case rates are going down from this Delta thing. And there was some positive news on treatments this week. And so just looking forward to getting over this Delta variant and heading into the holiday in fourth quarter.
Gerardo Del Real: Absolutely, agreed, a lot to do. I'll say this, I mentioned to be on the other side of the business, on the retail side of it when I went to my first conference in New Orleans and really started to get involved in the resource space. Free information at that time was gold, right? Because I've always loved absorbing information. And the more I exposed myself to, the more I could refine my process. And that's something that to this day, I still do. Mr. Hodge and I, I mean, again, not to pound our chest too much, I've said that three or four times today, but we've been kicking out content left and right. I encourage everyone. If you're not a member of one of the paid publications, if it's outside your budget, if it's not something that's feasible for you right now, take advantage of the free content that you can get at resourcestockdigest.com and dailyprofitcycle.com because I find myself still going to those sites and I co-own them along with Mr. Nick Hodge.
There's a lot of great content on Resource Stock Digest that we're able to bring to you because sponsors help pay for us to keep that going. And then on the Daily Profit Cycle side, that's independent research and insights from Mr. Hodge, myself, Ryan, Mike, the whole team, a lot of free information there to absorb. Go pick a sector, go pick a commodity you like, go pick a couple of companies and go learn some things. There's a lot of money to be made. And that's a great way to introduce yourself to some of these names.
Nick Hodge: Perfect.
Gerardo Del Real: All I got. I am Gerardo Del Real along with Mr. Nick Hodge, this was episode 137 of Bizarro world. Go be nice to everybody, each of you.
Nick Hodge: See you in October.
This transcript is unedited. Please excuse grammatical errors and run-on sentences.