Clive Thompson: The Crunch on Physical Silver & Why ‘Something Has To Happen’ for Gold

Stijn Schmitz welcomes Clive Thompson to the show. Clive Thompson is Retired Wealth Manager and Swiss Banker and, Host of the ‘Clive Thompson’ YouTube Channel. The episode centers on the current state of precious metals markets, with a particular focus on silver and gold. Thompson highlights a critical shift in the silver market, where industrial demand now exceeds mine supply. He explains that this dynamic is creating significant pressure on the market, with industrial consumers becoming increasingly concerned about potential silver shortages. The gap between physical and paper silver prices has widened dramatically, indicating underlying market tensions and potential supply chain disruptions.

Regarding investment strategies, Thompson advocates for a measured approach to precious metals. He recommends investors gradually accumulate physical silver and gold as a form of insurance against potential financial system instability. He emphasizes that these assets should be viewed as a protective measure rather than a short-term speculation opportunity. The conversation also explores broader economic trends, including rising government debt, central bank behaviors, and potential future monetary systems. Thompson suggests that the increasing global debt burden could lead to significant financial transformations, potentially including the introduction of central bank digital currencies (CBDCs) that might restrict financial freedoms.

On gold and mining stocks, Thompson sees significant potential. He explains that rising gold prices create leveraged profit opportunities for mining companies, with potential for substantial share price appreciation. He advises diversification within mining investments, recommending investors spread risk across different geographical regions and companies. Thompson’s insights are grounded in his extensive financial background, offering a nuanced perspective on precious metals as both an investment and a potential hedge against economic uncertainty. His approach is pragmatic, suggesting investors maintain a balanced portfolio while recognizing the potential volatility and systemic risks in the current financial landscape.

Timestamps:
00:00:00 – Introduction
00:01:03 – Silver Bull Run Fundamentals
00:02:15 – Supply Demand Gap Analysis
00:04:41 – Industrial Off-Take Agreements
00:06:07 – Silver Substitution Challenges
00:09:00 – Rising Investment Demand
00:10:39 – Physical Market Bifurcation
00:12:24 – COMEX Delivery Surge
00:18:48 – Future Price Potential
00:21:18 – Retail Investor Strategies
00:24:51 – Gold Portfolio Drivers
00:32:24 – Global Debt Unsustainability
00:34:08 – CBDC Rationing Scenarios
00:42:17 – Mining Stocks Leverage
00:51:39 – Concluding Thoughts

Guest Links:
Website: https://clivethompson.com/
YouTube: https://www.youtube.com/@clivethompson-jc9my/featured

Clive is a retired wealth manager and former managing director at UBP in Geneva, Switzerland.