Mining Stock Daily

Paulo Macro on Supply Shocks, Currency Debasement, and Relearning 1929's Mistakes

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Sep 26, 2025
Paulo Macro, a macro-focused commentator and newsletter writer, returns to discuss the tumultuous economic landscape. He explores how gold’s rise is a reaction to currency debasement and loss of confidence in public institutions. Drawing parallels to the 1929 market crash, he emphasizes the cyclical nature of financial memory. The conversation highlights significant supply disruptions in copper and uranium, how major investors overlook these issues, and reflects on the implications of U.S. government equity stakes in resource firms.
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INSIGHT

Debasement Drives Gold's Rally

  • Gold's current rally is driven primarily by currency debasement and loss of confidence in public institutions.
  • Short-term froth risks exist, but long-term institutional demand and central bank buying support the bull case.
INSIGHT

Gold As An Opt-Out From Institutional Risk

  • Gold functions as an opt-out from failing public confidence and monetary systems rather than just a store of value.
  • Rising doubts about Fed independence and fiscal health push capital toward gold and other 'opt-out' assets.
INSIGHT

History Rhymes: Speculation Repeats

  • Financial knowledge is cyclical so each generation relearns speculation lessons, mirroring 1929-era excess.
  • Retail mania, leverage, and ubiquity of trading tools signal vulnerability to a swift risk-off washout.
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