Stocks for a Commodity Supercycle
by Nick Hodge
Publisher’s Note: Episode 104 of Bizarro World is out. In it, we discuss inflating assets and deflating dollars in the context of a global commodity supercycle.
Click here for the full episode. And check out the relevant excerpt below.
Call it like you see it,
Nick Hodge
Editor, Daily Profit Cycle
Gerardo Del Real: Gold down, silver up. Mr. Nick Hodge will tell you why. Bitcoin is surging. Copper’s at eight year highs. I am Gerardo Del Real along with my co-host, Mr. Nick Hodge. Nick, how are you, sir?
Nick Hodge: I'm doing really good Gerardo. How's it going?
Gerardo Del Real: Feeling the stimulation.
Nick Hodge: I told you. It's a taint-ticklin’ kind of world out there. Everybody's accounts should be, let's go with, erect.
Gerardo Del Real: Erect is right. By the way, I hope everyone had a great Valentine's Day on that note. Listen, everything is awesome, except for unemployment and COVID and impeachment trials and the state of our infrastructure globally and the state of our republic here in America. But other than that, everything is awesome if you have access and exposure to financial assets. Let's get right into it. Do you want to explain to everybody, Nick, why gold is down but silver is up?
Nick Hodge: You're putting me on the spot, but in the simplest terms, I would say because gold is money and silver is a commodity. And commodities are inflating, so silver is inflating with commodities while gold is trading inversely to rates — real rates, bond rates, yields — that are inflating. The rates continue to inflate. They're high-yield. Remember Gerardo, they're over 1% now! That's essentially why, and we'll see how long it can last outside of the silver squeeze, where the Redditors were going to corner the market. That's really why.
Gerardo Del Real: That's exactly the answer I was looking for. It really is as simple as that folks and anybody else that tells you anything else, it frankly, is full of shit. It's as simple as that.
For those of you that are writing in, and I've had plenty of subscribers recently in saying, Hey, is the gold bull market over? Was that it? Is it going to pull back now? Is Harry Dent going to be right after 127 years? No. No.
The bottom line is, the Holy Trinity of easy money, we talked about this last week… Powel and Yellen and Biden and the stimulus and the relief that I joked about, sooner or later, and I think we're coming up at that moment, they're going to have to force the yield curve down and they will. And they'll be successful until they're not.
But what that's going to lead to is the suppression of those real rates, at which point you're going to get that turn in gold that sends us to new all time highs.
Just like Nick and I were preaching to you about copper stocks and copper, and we have been for years, I am preaching to all of you right now who are looking at the gold space and are bored...
This is the time to be adding up robustly and aggressively on the better names and even some of the more speculative names.
Nick Hodge is the co-owner and publisher of Daily Profit Cycle and Resource Stock Digest. He's also the founder of Hodge Family Office, the umbrella organization for his three premium services: Hodge Family Office, Family Office Advantage, and Foundational Profits. He specializes in private placements and speculations in early stage ventures, and has raised tens of millions of dollars of investment capital for resource, energy, cannabis, and medical technology companies. Co-author of two best-selling investment books, including Energy Investing for Dummies, his insights have been shared on news programs and in magazines and newspapers around the world.
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