David Brady: The Next Silver Rally will Dwarf the Gold Rally
Tom welcomes returning guest and CEO David Brady back to the show. David is a Sprott Money Contributor and a big fan of all things silver.
David has recently coined the term “Hyper-Stag-Flation” to describe what we have today. It represents a stagnating economy coupled with rising prices, particularly in necessities. The hyper part comes from the Fed and central banks printing money like it’s going out of style. This results in supply shocks and further trade wars. In this environment, the hardest hurt is the middle-class and Bankruptcies are about to hit while many jobs are lost.
He discusses the metrics and indicators like sentiment that he relies on for determining market direction. Liquidity drives stock markets, so it should be no surprise they are higher. He is concerned about a second wave in the pandemic and a lower stock market until around the election.
Gold has a solid floor in place and will take off, but silver will outperform. Commodities, in general, are going to see some good gains. He believes the dollar in real terms will decline in the coming years.
He expects the silver-gold ratio to move closer to historical norms. Silver should blow the roof off.
Time Stamp References:
0:35 – Defining hyperstagflation.
8:20 – David’s analysis process.
11:00 – Stock market peak and predictions.
22:20 – Silver ratio and outlook.
33:14 – Questioning your own assumptions.
38:50 – Affects on the populations.
Talking Points From This Week’s Episode
- Hyper-Stag-Flation defined.
- Escalating trade wars.
- Indicators and market manipulation.
- The dollar will decline in real terms.
- Silver will rally.
David Brady is CEO and Co-Founder of Global Pro Traders and has managed money for banks and businesses for 25 years. Mr. Brady is a CFA charter holder and holds a bachelor’s degree in Business Studies and Financial Markets from Dublin City University. He started as a foreign currency trader in USD/DEM and moved on to manage multi-billion dollar bond portfolios for multinationals such as eBay and Salesforce. As the Vice President of Treasury and Investor Relations, he was also responsible for managing interest rate, equity, and commodity risk exposure.
He has always been interested in financial markets, winning investment competitions at the age of 15, scoring the highest grade for his graduate thesis “Is the ERM (Exchange Rate Mechanism) Fatally Flawed?” in 1993. Winning foreign currency spot, forward, and bond trading competitions at the age of 23. Suffice to say that financial markets have been his passion for much of his life.
David is a native of Dublin, Ireland. He moved to the United States in 1998 and now lives in Toronto, Canada, since 2015, with his wife and three kids.