Lawrence Lepard: Extraordinary Times Reveal Golds True Potential
Lawrence discusses how people are gradually waking up to what is happening. Governments can’t create credit forever without consequence, and we are now witnessing the end of that system. In the space of only six weeks, we have seen stunning moves and government actions. Eventually, people will consider currency to be an inadequate means of storing wealth.
The Fed is in a doom loop; the more money they print, the more inflation goes up, then they have to create more money to buy the bonds that no one wants. The Fed is trapped and is in the same situation as the Weimar Republic 100 years ago.
He discusses the possible risk of gold confiscation and why that is probably unlikely. Instead of devaluing the currency, the US will most likely choose to inflate away their problems. Whatever happens, will cause a collapse in faith in big governments. It will get messy for a while, but once things reset, the world will be a vastly better place.
Against most currencies, gold is already at all-time highs. When new highs are breached in US dollars, people will start to notice. Eventually, we will return to some type of gold standard, and with the amount of money in existence, we are looking at much higher gold prices. Currently, Fed printing is off the charts and should it continue we risk rampant inflation.
Coin shop demand has gone up ten times in under one week, and premiums are rocketing. Spot prices are fake and reflect price manipulation of paper claims. The Comex and LBMA are having problems sourcing gold. Eventually, counterparties will fail since they won’t have the gold to deliver. We may wake up one day soon with the price of gold at $5000.
Stocks can be risky, the safest place to put money in the mining business is in the streamers. Franco Nevada, Sandstorm, and Silver Wheaton are examples of these. Majors have less risk than juniors but also less reward as they can’t grow their production quickly. His focus is on the mid-size producers that have an excellent cost profile and show growth.
Time Stamp References:
0:35 – Gradual wakeup to monetary risks.
4:15 – Can they reverse this with gold confiscation?
10:10 – Gold market and why demand will drive price.
14:25 – Price targets after 1900.
26:00 – Comex/LBMA problems and 400oz bars.
29:20 – Silvers explosive upside and volatility.
32:10 – Investing in less risky mining companies.
Talking Points From This Week’s Episode
• People are gradually becoming aware.
• Governments and the risk of gold confiscation.
• The Fed is in a debt doom loop.
• Gold is currently near all-time highs in most currencies.
• Suggestions for investing in mining.
Lawrence W. Lepard is the Founder and Managing Partner of Equity Management Associates. He has spent his entire 38-year career as an investor, principally focusing on venture capital opportunities. Before co-founding EMA, Mr. Lepard spent 13 years at Geocapital Partners, in Fort Lee, NJ. There he was one of two Managing General Partners and was responsible for several venture capital funds. Before Geocapital, Mr. Lepard spent seven years at Summit Partners in Boston and California, where he was a General Partner in Summit I and Summit II. Mr. Lepard received his BA in Economics from Colgate University, and he received an MBA with Academic Distinction from Harvard Business School.