With odds now stacked heavily in Joe Biden’s favor, it’s now looking more likely that the next four years will see a Democratic president in the White House. E.B. Tucker, director of Metalla Royalty and “Why Gold? Why Now? The War Against Your Wealth and How to Win It” said that gold and gold royalty stocks still remain the ultimate weapons against the “war against wealth.” Tucker said that bigger government, more government intervention, and low interest rates are all likely to persist during a Biden Administration, creating tailwinds for gold. Tucker maintains $2,500 an ounce by the end of the year as his gold price target.
It's day three of the election. And I'm here with Eby Tucker director of Intalere royalty and author of why gold, why now? And we're going to be talking about gold elections and the economy Eby. Welcome back. It's a pleasure to see you today. Thanks for having me. You and I have talked a lot about what's going to happen to the country and a lot of those things have played out.
We're going to, we're going to go over these things, but first let's talk about gold prices have really shut up the roof today up two and a half percent. What's it reacting to what you're seeing today. David is his gold clearly is positive about having Biden in the white house. Fine. There'll be a weak dollar president.
You know, gold has been flirting with tipping into a downtrend that with the dollar tipping into a downtrend, which is positive for gold, and that's all happening right now. It's important. I mean, right here, I have the screen it's up $48. Today, uh, everybody's been stuck in this one day. You know, what's happening the next day.
What's happening next week. But, but look, this is a secular bull market in gold. These things I come around that often. I mean, we've been in an uptrend now. Trend has been, has been well in place and everybody on the technical side was watching 1925 for a breakout. We just hopped right over it and jumped 10 feet in the air.
1950. I mean, we're, we're, we're going to 2,500. That's my end of the year call. It has been for months. I know it seems crazy, but this is a trend. This is not a one day event. This is a secular bull market in gold. Let's talk about what's going on. Uh, this week, the election. Huge swings from either side in terms of favoring, Trump and Biden, and then Trump.
And then now back to Biden, it looks like Biden is set to take over the white house. Republicans are going to take control of the Senate and the Democrats have the house. So we're going to, we're going to get a divided government, most likely abide in presidency. What have you learned from this election that maybe you didn't expect before?
Well, the, the, the power of Washington that's, what's so interesting. I think everybody in the U S most people, most educated people are stuck in fifth grade civics class. Okay. So what they think is they say like we have a free market. Well, what about it's free the interest rates aren't set by the market.
Prices in many things aren't set by the market. The stocks don't seem to be set by the market. You know, you have all these, you have all these factors, but anybody in the U S will tell you, yeah, this is free market. It's what makes America amazing. Okay. But DC has the power. I mean, remember Trump has just got to go because he was a.
Russian agent, then he was a, uh, you know, a philanderer. Then he was a tax cheat. Then he was a impeached. Uh, I mean, if you look at this thing and you think the media's powers unbelievable. And so, and so I think what people should take away from this is that the, the consolidation of, of us power is pretty dramatic.
I mean, and, and the media says. By whatever the media says, this is how it plays out. Just remember something David, when you watch television, people call it a television program. There's a reason why it's called a television program. And you look at if your head is down in your phone all day, watching your, your Twitter feed and then you get home and immediately you put the phone down and starts staring at the television on the wall.
You're basically just doing whatever you're told. I mean, so, so the, the us is moving and a direction where the average person is just totally bamboozled, you know, by what's happening on a daily basis and has no recollection. Of of, of what's the big picture looks like. That's why I wrote my book. If you recall, you and I were talking in the spring, we laid out all these things that are happening, what all these things mean, this universal, basic income, negative interest rates, PPP, call it whatever you want.
That PPP. Money's not alone. It's a grant. It's not being paid back. That's why so many businesses are starting. People got to get on the gravy train. That's that's how this thing is going. It's a giant gravy train. Biden's the conductor. Okay. The dollar is, is, is what's losing value and straight down and gold knows about it.
See, gold is your, is your thermostat. This thing tells you what's really going on. This, the gold realizes what's happening. It broke out. It's going to go much, much higher. It's only going to happen once David, this thing doesn't run and then come back and pick you up and take you again, happens one time.
It's the secular bull market. Did you hear about that guy? I think, I can't remember where, but he, uh, he took the PPP loans. He got from the government, bought a Lambo with it and, uh, you know, bought a bunch of, uh, you know, hotel Springs and a bunch of other things. How easy is it to just, you know, get a loan and just buy stuff now?
Well, I mean, it's, it's, it's evidently it's fairly easy because that's happened to numerous people. I mean, you see that saw in Miami stories like that. I mean, I don't think they can police this stuff. Even Wells Fargo, JP Morgan, they were firing people for, for, for submitting, you know, incorrect applications, uh, for this money.
But it's a feeding frenzy. See that, that's what, that's what ultimately people like that are in power in the U S is that you create this gravy train, this feeding frenzy. It's a huge opportunity. The government spent over $6 trillion last year. That's half the value of all the gold on the whole planet that's ever been mined in the history of mankind.
Think about that. I mean, and the gold price, I'm surprised it's not 2,500 today that people somehow haven't done the math. They 0% interest. There's no incentive to be a saver. You, you are completely screwed if your average person watching television all the time and doing exactly what you were taught to do when you, when you were young.
And playing along with the system, the system is rigged against you. The, I mean, I mean, if you can't see this, then you're just asleep. You're, you're a zombie you, the thing about people gotta understand is, is that this is a defining moment for your wealth. Okay. We are shifting gears. We are moving into a new sort of trend, a secular trend.
And if you play this trend, you come out on top. If you don't play this trend, what happens is a couple of years. So now you scratch your head and you go, what happened? I, the TV told me one thing was going to happen and I don't, I don't know where, where all my money go. I mean, I have money. But everything's so expensive.
What am I supposed to do? Your book is called why gold wide now, but the subtext is the war against your wealth and how to win it. So you mean we're going to go through some of these predictions you've made in your book and we're going to see just, you know, quickly 30 seconds. Tell me if you think it's still going to happen with this new Biden administration.
Okay. Number one, currency. Debasement. Well, we're, we're, we're seeing it right now. I mean, that's, that's the move in gold today, you know, it's the dollar heading into a serious downtrend. I mean, it's a question of how long can the U S disguise the downtrend. Right. And let me tell you why this matters is because over the last 10 years, a lot of money came into the U S as the dollar falls, it'll create a feedback loop money.
You'll leave the U S you know, so if you're sitting in, in France, And you invest in the U S capital markets and the dollar starts taking a dive in the Euro starts going up. You're pulling that money back home. Okay. So that, that, that gets fairly aggressive. So, I mean, we're just on the front edge of that.
And people are going to be shocked when they try to go to vacation in Italy and the costs, you know, twice what they were planning. Number two, low interest rates. They're already negative. So you have 80 basis points for the 10 year. And for anybody that that's, doesn't understand what that is. That's, you know, 0.8%.
Okay. Is your return on the 10 year treasury and, and Powell says he's targeting 2%, which probably means 3% inflation. They're negative. You know, it might not, it might not look negative to you, but believe me, it's negative. So, so low. We could say, you know, it's not low. It's negative. I mean, you, you are being punished.
If you save money, the incentive is to remember, get you to spend, spend, spend that's what we want you to do. Don't keep that money at home. Don't be selfish, David. You've got to take that money. Buy yourself a car, not to PPP money, of course, but your money, your savings. Okay. That's what we want you to spend.
Look, if I had a dollar for every time, I heard the word infrastructure and during the Biden campaign trail, uh, I I'd probably be a millionaire right now. So the point I'm trying to make is they want to pump in a lot of money to build a lot of things. Isn't that going to cause inflation, Eby. Isn't that going to make the fed raise interest rates?
No, it's not a code because for a while, like, can we talk about in the next chapter, in the book, there'll be able to issue bonds directly to the fed in the form of modern monetary theory and finance that infrastructure at 0%, put the money out in the economy, pull it back in tax at very high rates.
Nobody notices what's going on. This is the world, the war against your wealth, because what happens is one day down the road, you say what happened? I don't know what happened, but just like in the Vietnam era, some people get rich, some people see what's happening, they see how this is going to play out and they get in front of it.
That's that's the key. The average person, you know, keeps reading headlines and they say, well, the interest rates are so low. Maybe I should buy a giant house. I mean, so, so it, it don't get trapped in this cycle. I mean, th th this, this, this book is your, is your ticket. Over to the sideline. That's the deal.
It's a see what's going on. I mean, you want to say this is demolition Derby for your money. I mean, you want to stay out of this and be prepared, you know, it's, it's a bad time to be trying to save the way your grandfather did. Yeah. Uh, number three, bigger government intervention. Yeah, giant. I mean, if you haven't been to DC, take a trip there, DC feels like it's its own world and the rest of the country is just a cling on.
Uh, so, so you know, what you see is government solves every problem, you know, the, the oceans are arising. Government will fix that, uh, there's issues or there's there's tension. Government will fix that. The economy, slow government will fix that. I mean, is there any problem that, that the market fixes, I mean, uh, healthcare in the U S you know, wait a minute.
Don't, don't pay the doctor. I mean, most people, I know, think you can't even pay the doctor. They think you've got to have the, the government involved. In in there to pay the doctor. I mean, the doctor's glad to take MasterCard or visa most of the time, believe me. So, so government is the solution to every problem.
However, what happens is none of these problems actually get solved. So, so down the road, you have much larger problems. And then meanwhile, these guys are long gone. They're building their presidential library and they say, well, we did our best. You know, we, we tried. To help. And we did that's what counts is?
We had intentions. We had good intentions to help that. That just sounds like Scandinavia. We're a very liberal Canada. You'd be one could ask you what could argue, what, what what's wrong with that system? What, what, why can America be more socialist? It's great if you don't have to pay for it. So the, what the problem is is all these people that funneled their, their government checks into Robinhood accounts.
They all have aspirations to become wealthy, but then they say, well, tax somebody else, not me tax the rich people. We have a don't you want to become a rich person? Well, yeah, but later on when they're done fleecing the rich people, then I want to become a rich person. So everybody's thinking is, is, is very backwards here.
I mean, if you really. Got down to the brass tax here. You know, people are, are under delusion. You know, it's it tax someone else to pay for this stuff, but, but not me, you know, rich person is somebody that makes over 400 grand. Speaking of Canada, it's a great place to live. It's one of my favorite places in the, in the, in the world.
But, but the problem is, is to build wealth. There is, is very complicated. I mean, in Canada, you have to be a speculator. You notice this like speculating is the way to make money in Canada. You're betting on, you know, small. Mining stocks are betting on, uh, uh, blockchain stocks. I mean the cannabis stocks, I mean, you're gambling that a Tencent stock goes to $2.
You can make a big chunk of cash. You're not getting wealthy in Canada by working in putting your money into a, uh, TD savings account and, and collecting interest, you know, until you've saved up enough to retire. I mean, I don't know many people there that do that. You know, what, what, what happens is like we say, in the book, This is this type of government policy turns everybody into a gambler.
Okay. What about basic income? Do you think we should have that? We kind of saw a glimpse of that this year with a stimulus checks, but like you said, not everybody got that. It was, uh, it was on a need based, uh, basis. Should everybody have basic income going forward? Well, I mean, if everyone got the same income, sure.
It'd be fine because then you, but essentially you give everybody the same thing, but that's not the way that it works. The government uses that as a way to, to manipulate and move around the voting blocks in the U S that's what they always do. You know, the people that, that earn money, you know, don't get the, like the stimulus checks.
If you earned a hundred grand or something, you didn't get a stimulus check. You didn't need it. You're already one of the lucky ones that's wealthy. Now, the people that did get the stimulus check, what did they do with it? You know, in the book, in the chapter I have about universal basic income. There's a very funny series of quotes from a guy that wrote a book about a universal, basic income and how it's a panacea.
You know, it's what the world needs, but nobody, uh, nobody takes that money and does something great with it. I mean, they, they, they spend it on pizza and beer and. Hanging out and not having to do anything. So, so that money is gone. So how do you finance that money? You issue more bonds at 0%. And so what ends up happening is this is all wasted capital and someone ultimately has to pay for it and just make sure that it's not you.
Okay. Okay. Uh, all right. So let's talk about, uh, the election again. So Trump outperformed a lot of polls. Okay. He's not, he's not leading Biden right now as we speak, but he won a lot of States that the pollsters didn't think. There he was going to win. And so how did he do it during a recession in the pandemic?
When a lot of people think we're going to get well, they thought we're going to get a blue sweep. That's not happening anymore. Well, it wasn't a surprise to me because what I understand that most people somehow lack is that media is, is tailor made, you know, for the audience. So when you have these polls, what you think is that they, these people are public servants that are out there asking who you're going to vote for.
And all these, it's not the case. All of these things are designed to sway people. So, I mean, you can always determine who you sample. I mean, you know, you, you go over to, uh, to a part of town that's heavily. Favored for Democrats. And then you do your poll of a thousand people and you say, look, I mean, he's, he's blowing them out of the water.
I mean, we could barely find anyone that's going to vote for Trump. Another thing is in Alberta a couple of years ago, there was an NDP party running that was quite controversial. I went to Alberta and interviewed people, Doug Casey, and I went together and, uh, we, we asked waitresses and, uh, people at the airport and the car rental place and everywhere.
Who they were going to vote for. And we explained to the why nobody would tell us in DP. Yeah. NDP one. Okay. So, so a lot of times people are, they're afraid to, to say, especially when the media is, has got a big case against the party. I mean, he will in the U S we're afraid to say Trump because the opposition.
You know, is it holding signs and shouting and bullhorns and throwing rocks and having marches and things and, and people don't want to be involved in that. You know? So, so polling is just media and anytime you see media, you want to be scripted. So Eby let's assume that button takes the presidency. What would you tell his administration so that the government could start waging war against her wealth right here.
Stop texting her book. How can they stop doing that? Well, I, I don't, I don't think that's the kind of advice they would want from me. I think they would want to read the book to, to figure out, you know, all the, the, the sensible things people could do to avoid what, what they're trying to do. Right. I mean, they might get some, some good ideas for how to create a blockchain curtsy that tracks every dollar in circulation and, and which would give them complete control.
So I hope they, I hope they don't read the book. Um, because we, we talk about that as something that's on the horizon and maybe what you could do about it to, to prevent yourself from being ensnared in that. But look, the reality is, is that for a guy like Joe Biden, the, the, the, the deal is you want to maintain your, your presence, your power and your control.
You know, it's all about power. I mean, it's not a money game for a guy like Biden. It's a power game, you know, that that's the deal and, and you get in power. So what you want to do is you want to inflate. The, the, the system at a rate that doesn't cause people to starve to death, but also allows you to give the appearance of growth.
That's the goal, you know, and, and, and when you do that, then nominally you'll grow. But on a real basis, you want nominally, your tax rates will go up, but on a real basis, you know, they want, and, and, and that's what you want to do. You want to punish the rich and you want to tell the poor that you're going to give them something, but you never have to deliver, because you could say.
It couldn't happen because the rich people stopped me and they'll just find that, and then you'd probably get elected for another four years. So what would you tell the investors? How could they survive four years of a button administration that you, in your words, you know, was going to only see bigger government intervention, uh, more crack down on wealth and a host of other things that investors may not appreciate.
All right. It's very easy. So let me just tell you, you got to forget about what's happened the last 10 years. Your stocks is different things that did really well for you. The trends that you rent, forget about it. This is a new day. Okay. The dollar set it down. The gold prices set it up. Biden's going to spend trillions of dollars doing all kinds of stuff.
Most of which will be lost. We'll never actually end up doing the things they wanted to do, but it's the expectation of the spending where we can position. All right. So what's going to do well gold. How do we play that gold royalties? I mean, of course, on kitco.com you can buy some gold. It's a good, it's a good thing to consider, but gold royalties perform drastically well in this type of market, you know, Metalla royalty MTA, I'm on the board up 50% since the bottom of the gold market in August, it was up over a thousand percent.
The stock. So think about that 50% move in gold thousand percent move in a stock. That's real leverage. Now you do the same thing with trillions of energy spending Nova royalty, where I just joined the board this week is a copper and nickel royalty, which is the essential ingredients for the new energy revolution.
If this guy is going to spend trillions of dollars to get people, to install battery, you know, grids, uh, energy grids are going to be going to have a low carbon. Sources of energy produced on them. You've got to store that energy in something, you got to link all this together. So we want to get into copper and nickel royalties to play that these are the ways you get in front of this.
These are weak dollar trades. They don't require a lot of thinking. This is a secular bull market. And when you see a secular bull market, don't trade it, invest in it. Set it and forget it and, and be involved in the trend so that you're not looking back saying, man, I knew I should have done something. My instinct was right, but I didn't pull the trigger.
Is this going to be a rough four years for investors? You think. I'm not going to be a rough four years for me, David. I can tell you that right now, because we see this as so clear that it, that it actually, it actually is easier than with Trump. You know, Trump with Trump, things were gyrating back and forth and you had all this, you know, one day there was going to be this.
And one day that was going to be that this is a much easier trade. That's why you see a lot of people with serious money. We're very pro Biden because it's very easy. When, when a guy is going to tank the dollar and put these, these types of things in place, I mean, everybody's worried about taxes. Look, you're in the right trades.
You'll make plenty of money. You can pay lots of tax. Sure. You're not going to like it, but it's better than being left. Confused on the side of the road. Wondering what happened. Eby. Tucker. Thanks very much for joining me today. I appreciate your thoughts. Thanks, David. And thank you for watching kicker news.
I'm David Lynn we'll have much more election coverage. Stay tuned. .