Welcome yep glad to be back with you robin hood it’s, a platform where users can trade stocks and options and contracts for free etfs as well tell us about how this is impacting the gold space. Your recent research suggests that a lot of millennials, the primary user base of robin hood, are starting to catch on to gold and silver. Yes, indeed, okay, to answer the question, let me actually rewind a little bit and put something out there. That might be a little controversial to the audience, but i think the bitcoin crowd and the bitcoin craze actually did goldbugs a huge favor because for decades really the typical gold investor understands that gold can’t be printed. As now bank of america is now saying uh. You know we’ve known this since the 70s we’ve been waiting for the demise of the dollar for all these years, knowing that they can’t print forever, but we were like the lone voice out in the desert in the wilderness. Nobody wanted to listen to that everything’s. Fine um, the advent of bitcoin and the sort of sales case. The use case for bitcoin convinced an entire generation of young people that actually there’s something to be said for something that can be used as money that the governments can’t print. And this has become part of the mindset. Young people today understand that there is a risk in calling something money that governments can create at will with no cost that’s completely different than anything we’ve seen before so.

Quick aside, i would love for the the gold guys who hate bitcoin and the bitcoin guys who hate gold to stop fighting if they want to have an enemy. You know load the hit on the dollar. The dollar is the one that deserves their attention, but what i’m saying in response to your question is that obviously the bitcoin thing very popular with young people, the the huge ramp up in 2017, caught their attention, a lot of young millionaires out there and now along Comes robin hood that makes it cheap, free and easy for anybody, including young people. You know it’s an app on your phone that’s, just right for the younger generations uh to trade in other things, so all these people they they get that there’s something wrong with paper, money or it’s, not even on paper anymore, and they get that trading can make. You a lot of money and they’re looking for the next bitcoin 2017. i’ve made the case for years really since 2017, that gold can be that and that it should and will catch young people’s attention when it starts going and that’s what my latest research shows. Now it is, in fact, starting to happen it’s very exciting, we’re, going to show the viewers some of these charts here that you put out. Can you walk us through these charts? Explain the magnitude of increase just on a user activity basis uh that really struck out to you lobo right.

So the first thing to say is: this is still just starting. If you look at something like tesla, it’s got half a million users buying tesla stock individual separate investors buying tesla stock, obviously very very popular with gold it’s in gold stocks it’s. Nowhere near that much. If you look at the most obvious go to in the space, that would be the gld etf it’s, the first thing for anybody. You know doesn’t want to pick a company. Doesn’T know much about gold. Doesn’T want to hold the physical stuff. They don’t get that yet the gld is the first go to place and it has over 25 000 individual users on robinhood buying it now. But the really significant thing is that this is a a very vertical leap: it’s gone to 25 000 from almost nothing a year ago i mean practically speaking and very significantly to me, as gold has been breaking out towards its new records right we’re. Now close, you know stone’s throw from new all time highs, and this is catching a lot of attention it’s making headlines – and you can see this in the very recent ramp up in robin hood users and one tiny detail. I just checked it this morning, quite interesting to me: you’ve seen the number of users following the price upwards, like they’re, paying attention they get it, they see it they want in most recently, in the last couple days, you’ve seen the number of users accelerating faster than The price that means these robinhood users are trying to get ahead of the curve that they see higher prices ahead and they are speculating accordingly.

I think this is all very fantastic news for the gold market, so my first question to you lobo, is: why is this trend significant? We all know that baby boomers have more wealth. They have more money to invest, millennials are getting older, they’re coming out. You know they’re coming out of school getting into the workforce short, but a lot of them are still paying off student debts. They don’t have as much money as the baby boomers and you know older generations. Why is this trend? Why does it even matter well, first and foremost, if it um, let me revise that. I was going to say something else, which is actually second most. The first and foremost thing is that the younger generation is by definition new to the space and a class of generalist investors. These are not people who have been you know hoarding golden guns out in the desert somewhere or in idaho, in their cabin for decades. You know waiting for the world to end. These are young people. You know many of them weren’t even alive. During the last big gold run up in 1980, so it’s really significant it’s an entirely new audience, it’s an entirely new large audience. They may not have a lot of money yet, but millennials these are not children anymore, millennials are are now coming into wealth and power, and i would not underestimate the buying capacity of this generation and the next one. These people have disposable income on average, they have fewer obligations and responsibilities than those of us in the more in the middle of our lives.

You know kids and college tuitions and all these kinds of things on our plates. So i would actually push back and say i think they may have more debts. They may have other issues on their plates, but i think they actually have perhaps more not just disposable income but more cash that they’re willing to speculate with than a lot of their elder peers. So i think that’s important, but the big thing is that this is by definition again new people, not gold, bugs these are generalist and the one thing that we’ve been waiting for for a long time. You know really, since the bottom in 2015 is for not just the industry, insiders and the specialists and the die hard gold and silver bugs, but for generalist, investors to get in on this story and that’s. What this is. A sign of these people are, by definition, generalists and they’re piling in, and we see headlines on. The wall street journal today about silver yahoo finance. Another hangout of young people, big article yesterday about gold miners, not just the metal itself, getting attention from wall street that it’s been lacking. So we are starting to see generalist attention here, just starting and it is in a way maybe a potential. Contrary indicator at the top, but i don’t think we’re anywhere near the top, i think it’s just getting going, it’s very exciting, so it’s interesting. You brought up the story because i’m, a millennial myself and most of my friends are millennials, and admittedly none of my peers really cared about the gold space.

Until recently, i’ve been getting a few phone calls from people that i know asked me about gold and silver and i’m wondering and here’s. My question to you, lobo, is what is it about the markets today, that is driving retail investors in my age group to a sector that previously they hadn’t cared before well, there’s, good news and bad news here david? I have to say i have some concern about this and to any millennials and younger people out there watching um. I am not one of these guys who’s going to jump up and down and say, bye, bye, bye. In fact, today, as you and i are speaking, david gold just hit a new multi year high over 1840, an ounce silver over 21. – i wouldn’t buy anything today it you know when, when things are going vertical and crazy, like that, that’s the time to be taking Profits not buying, so my answer to you is that younger people, you know they’re not stupid, they’re smart and they see the opportunity that’s fantastic, but on average, of course, by definition, they lack experience and i think they tend to chase momentum. That’S. The answer to your question, it’s very evident to me: lots of fomo lots of momentum chasing fomo could be gold’s very best friend this year, fantastic if it gets a lot of people in who who you know are looking ahead and wanting to get in before gold Hits a new record high, you know that’s great, but it also it’s a double edged sword: it’s, a risk for these people investing if there’s a chance that anybody buying today could be top ticking this market before a significant correction, and that will scare them and they Will withdraw so it’s a risk to them if they chase momentum too much it’s also risk to the market because generalist attention, you know, while you’re the flavor of the day, that’s great all in let’s, go but as soon as i take this boom.

They you know that money they’re not going to stay loyal to gold they’re out so watch out for the potential for corrections ahead and make use of them. I think there’s a classic saying where, if the cab driver is telling you about gold, you should probably sell it are. You is that is that the case now you think well that’s what i’m saying it’s too early for that i, i think, that’s something to watch for that something is coming ahead. I mean you’re you’re, the kitko news guy. So, of course, your friends are asking you about gold and silver i’ll tell you, i’ve actually had similar experiences. I have taught economics and entrepreneurship for almost 20 years to younger people in eastern europe and i’m, starting to get questions from them about gold and silver too. So it is starting to catch an on, but you and i we’re in the public eye it’s when the typical cab driver or bartender is talking to the other patrons at the bar about the ounces of gold they just bought or the stock they just bought. When really everybody is in that’s, when you know that the contrarian alert should be going off in your mind that maybe this is starting to get toppy and we’re, not there yet you’re saying i don’t think so, not at all, just starting all right. So how do you feel about the current momentum right now? Uh we’re, not overextended, you think 1840 uh.

You know we’re near all. Time highs. Well, i’ve published some research on this too that people can find at independencespeculator.com, and that is looking at how different this market is from before and one of the things that’s really caught. My attention is, as we’ve come up since the bottom in 2015. It’S been very much a stair step kind of thing. It almost round numbers right. We held 1300 for a while then 1400 for a while, then 15, then 16, almost at round numbers now, 18 and we’ve broken out very quickly. If this, if today’s surge holds and now um, so what i’m saying is, it could just be that we’re so close to the record that this is, you know the market has the bit in its mouth and it just wants to go for that record. That’S not a very scientific way of saying that that is a possibility. If that’s, what happens next, you could throw caution to the winds and come out ahead, but what i’m also saying is that the data over the last five years tells us that the market has been building consolidating, building, consolidating building consolidating. We just had a breakout, the odds, favor, some consolidation, i think – and i think that’s great for the people just coming on to it now, because that means there should be buying opportunities ahead and just real quick by the way that double edged sword. We talked about before, if generalists, that are rushing in now rush out ahead.

While the fundamentals haven’t changed. You know europe just announced two trillion dollars more a stimulus. You know the the government in the united states is about to ask another rescue passage. Sorry not ask about to pass another rescue passage package i’m, getting too excited here, and i should calm down normally i’m. The due diligence guy i’m, the calm one, but the fundamentals are so strong, they’re, not changing anytime soon. What i’m saying is, if there’s a bit of a panic, if there’s a pullback and all these generalists rush back out again, it could create. You know a terrific buying opportunity for the people who get it, who understand what’s going on so this robinhood story that you’ve discussed is that a short term or longer term indicator. You think, i think it’s both, i think right now. It shows fomo and momentum chasing getting in and that is fickle as long as gold keeps going up. Then i think that will continue and i think it’ll exacerbate it. It’Ll be a multiplier for what’s happening now. I think that happens on the correction side too, but longer term. I i think it’s it can’t be overstated. How important it is that an entire younger generation. You know they were trained by the bitcoin mantra and they’re, seeing it in gold now and and they’re taking it up, and you know you and i have been to these conferences where we see just a sea of silver hair.

If that changes in the future, to where it’s more of a mix, i think that’s extremely bullish longer term for really all commodities, but very much the monetary metals. Can this story be applied to the broad equities as a whole, because we’re seeing equities rally, uh nasdaq has already surpassed february highs, and you know robin hood trading account activity has been surging on all fronts, not just in the gold sector. Are we seeing fomo in the equity space as well, and if so, how do you feel about where we stand in terms of valuations yeah? Absolutely i agree, and i got to tell you anybody who tells you: oh it’s got to go higher because of all the money printing we’re going to dow 30 000 or anybody who says oh it’s got ta crash because the reality on wall street is the economy. Is terrible and it’s gon na go down to twenty thousand anybody who says they know the answer to that just i’ll be polite. I don’t believe them. Nobody knows it’s, not noble. We are in uncharted waters and anybody who tells you i’ve got a chart in uncharted waters, don’t, listen to them. Okay. That said, i got ta say right now. I anybody that’s betting on wall street going up and up and up, i get it there’s a reason for that. I feel the fomo myself, but that is not an investment. I wouldn’t even dignify it by calling it a speculation.

That is a gamble. It is so unknown what will happen next, yeah, you can go to the gamble and if the roulette wheel, lands on your number make a bunch of money that could happen this year. If you bet on wall street, but the opposite could happen too, and nobody knows the difference. So my feeling right now is that we’ve gone from investing beyond speculating to just gambling on wall street now and if you’re going to gamble, that’s fine but understand that’s. What you’re doing and the risks you’re taking lobo i’ve spoken to people? I know personally, who would gamble their entire life savings uh on the opposite bet of what you just said, basically they’re, so certain that the federal reserve is going to bail out any bad news that the only possible thing you could do as an investor is to Not fight the fed put all your savings, you know what savings is not enough. Leverage all your money increase. Your margin account put everything in a long position in the s p and nasdaq. What would you say to those people? I was a 20 year old, robin hooder, with no kids no debt. Well, you know, most of them have college debt, but maybe maybe uh trump or bernie, and his and his friends there in biden camp will forgive is dead. I don’t know, but if i was young and had no responsibilities heck, maybe why not? You know swing for the bleachers.

Maybe i’ll come out ahead, but that’s not me and i’m, not going to destroy my wealth on a gamble like that. So i’ll tell you very honestly: anybody out there who’s thinking about following me in the future odds are if the markets go up i’m, not going to be the guy who makes the most money this year and my readers may not be the ones who make the Most money this year, because i am balancing risk and reward i’m, not interested in just reward reward reward. If that’s the way fortunes can be made if you’re, lucky and that’s the way fortunes are lost if you’re not lucky and who’s, lucky all the time right. So i that that’s, my thing – i’m just i’m, not a gambler i’m, not interested in being a gambler, and you know my services, i think, should appeal to people who want to be rational, disciplined speculators, not wild gamblers. No, i i understand your argument from a risk reward standpoint, not putting all your eggs in one basket, but just from the standpoint of trusting the fed so much that you will put your entire life savings um, how much faith you put on qe right now, driving The markets up – i i think overall, i’m not going to dodge your question overall. I think that is a very sound premise, but again we are in uncharted waters. Suppose this covert thing heats up, suppose it doesn’t even wait for the second wave in the fall.

We already have accelerating cases what, if the death toll, really spikes up, what do people really start panicking? Uh, you know what’s booing wall street right now is not the actuality of the easy money making things better for companies, it’s market psychology, saying oh what the fed’s doing will be good for companies in the future and therefore we’re going to be a forward looking market And get in ahead of that it’s all mass psychology, if that mass psychology reverses which it could and anybody who says it, can’t just look at what happened in march. We have an example this year that markets can turn on a dime. Not even give you the five cents change that could happen, and if it does, that premise goes out the window. All it takes is that confidence to be significantly shaken. You could get a panic and we could get a sell off. That dwarfs would happen in march, which, by the way, would be a great opportunity for those who missed the gold rally earlier, how likely last question? How likely is that sell off to happen? You think what other drivers, what are the catalysts that you’re looking for that? That could push that price down i’m gon na you know we’re. Since we’re talking about millennials, i got ta say dude. I don’t know i’m telling you we’re in uncharted waters uncharted. I don’t have a chart and i don’t believe anybody who says they do i’m not going to give you odds on that.

I think the card is in the deck and the other one for the ramp up is two and you know good luck to anybody who thinks they know for sure. Thank you very much lobo for your thoughts today appreciate you coming on the show.