(Money Metals Exchange) In a recent episode of the Money Metals Podcast, host Mike Maharrey interviewed Brien Lundin, a renowned expert in precious metals markets, publisher of Gold Newsletter, and organizer of the prestigious New Orleans Investment Conference.
The two discussed the state of gold and silver markets, the influence of geopolitical and economic factors, and the enduring relevance of sound money principles.
(Interview Starts Around 4:27 Mark)
Gold’s Resilience and Central Bank Buying
Reflecting on gold’s performance in 2024, Brien Lundin highlighted its resilience despite apparent headwinds. Gold prices, which had experienced a correction early in the year, ultimately rallied, consistently holding above $2,600 per ounce. Lundin attributed much of this stability to central banks’ sustained and accelerated purchases, driven by geopolitical and economic concerns, including:
- Post-Russia Sanctions: Following the 2022 sanctions on Russia after its invasion of Ukraine, central banks sought to diversify away from the US dollar, fearing asset freezes or sanctions.
- Fiscal Concerns: The rising debt levels and fiscal instability in the US and other developed nations prompted institutional investors to hedge with gold.
- Treasury Yields: Rising yields reflected skepticism about the US’s ability to manage its fiscal trajectory, further bolstering gold’s appeal as a safe-haven asset.
“Gold traded contra to the traditional playbook, strengthening even in the face of rising Treasury yields and dollar strength,” Lundin observed. This indicated growing global uncertainty and a shift toward sound money.
A Fourth Bull Market for Gold?
Lundin believes we’re entering the fourth major bull market for gold since 1971. He emphasized the parallels between today’s economic conditions and those of past financial crises, arguing that continued debt accumulation and currency devaluation will inevitably lead to a reset. He pointed out that the depreciation of purchasing power, though gradual, acts as a “slow-motion default.”
“If historians look back 100 years from now, they won’t distinguish much between gradual devaluation and an outright default,” Lundin said, cautioning that sound money is essential for protecting wealth in such an environment.
Miners’ Underperformance and Opportunity
Despite gold’s strong rally in 2024, mining stocks lagged. Lundin attributed this disconnect to competition from alternative speculative assets like cryptocurrencies, AI investments, and leveraged ETFs. However, he expressed optimism that the mining sector would eventually benefit from higher metal prices, predicting that 2025 could mark a turning point.
“The miners are so cheap, and they’ve always offered leverage to gold,” Lundin remarked, adding that the sector’s small market size means even a modest inflow of funds could drive substantial gains.
The Legacy of the New Orleans Investment Conference
In 2024, the New Orleans Investment Conference celebrated its 50th anniversary. Lundin shared its storied history, dating back to 1974 when “Jim” James U. Blanchard III, a pioneer in the movement to legalize private gold ownership in the US, founded the event to educate investors on precious metals. The conference has since hosted luminaries such as Ayn Rand, Margaret Thatcher, and Milton Friedman.
Lundin highlighted the event’s modern mission: equipping investors with the tools and knowledge to navigate extraordinary times.
The 2024 conference featured an impressive roster of speakers, including James Grant, Brent Johnson, and Danielle DiMartino Booth. For the first time in its history, the event received no complaints, a testament to its success.
Looking Ahead: The Importance of Sound Money
As the global financial landscape becomes increasingly unstable, Lundin underscored the need for a renewed focus on sound money principles. He announced plans to collaborate with organizations like Money Metals Exchange to advocate for the federal recognition of gold and silver as money—a cause Blanchard championed decades ago.
“This is more important than ever because history is rhyming again,” Lundin said. “We need to ensure people can protect themselves against the coming uncertainties.”
A Silver Anniversary Commemorative
In partnership with Money Metals Exchange, the conference released a commemorative silver round celebrating its 50th anniversary. The silver round features Jim Blanchard’s image, honoring his pivotal role in the legalization of private gold ownership in the US.
Final Thoughts
Both Lundin and Maharrey agreed that gold and silver remain indispensable tools for preserving wealth amidst economic turbulence.
As Lundin aptly concluded, “You don’t need a financial apocalypse—just the repercussions of decades of easy money and debt accumulation—to see why owning real money matters.”
For more insights, Lundin’s Gold Newsletter is available at GoldNewsletter.com, and details about the New Orleans Investment Conference can be found at NewOrleansConference.com.
Key Questions & Answers
The following are the key questions and answers from the Money Metals Podcast interview with host Mike Maharrey and the precious metals market expert Brien Lundin:
What drove gold prices higher in 2024?
Brien Lundin attributed the rise in gold prices to central banks’ sustained and accelerated purchases. This trend was driven by geopolitical and economic factors, including the post-Russia sanctions that prompted a global shift away from reliance on the US dollar. Central banks sought to avoid potential asset freezes and to hedge against the growing fiscal instability in the US. Rising Treasury yields, reflecting skepticism over the US’s debt serviceability, also bolstered gold’s appeal as a safe-haven asset.
Is this the start of a new bull market for gold?
According to Lundin, we are entering the fourth major bull market for gold since 1971. He emphasized that ongoing debt accumulation and currency devaluation will likely lead to a financial reset. He described the gradual loss of purchasing power in fiat currencies as a “slow-motion default,” which will continue to drive investors toward gold and other monetary metals to preserve wealth.
Why did mining stocks underperform despite gold’s rally?
Mining stocks lagged in 2024 due to competition from speculative assets like cryptocurrencies, AI investments, and leveraged ETFs, Lundin explained. However, he expressed optimism that miners would eventually catch up as rising gold and silver prices improve their economics. Given the small size of the mining sector, even a modest inflow of investment could lead to significant gains.
What is the history and significance of the New Orleans Investment Conference?
The New Orleans Investment Conference, founded in 1974 by Jim Blanchard, celebrated its 50th anniversary in 2024. Lundin recounted how Blanchard played a pivotal role in legalizing private gold ownership in the US. The conference has since become a key event for educating investors on precious metals, hosting notable speakers like Ayn Rand, Margaret Thatcher, and Milton Friedman. In 2024, the event featured a diverse roster of financial experts and received unanimous praise from attendees.
Why is sound money advocacy more important than ever?
Lundin emphasized that history is “rhyming again” as the consequences of decades of easy money and rising debt become evident. He announced plans to collaborate with organizations like Money Metals Exchange to advocate for federal recognition of gold and silver as money. Lundin sees sound money as essential for protecting against the devaluation of fiat currencies and safeguarding wealth in an uncertain financial landscape.
What opportunities exist for investors in 2025?
Lundin highlighted the undervaluation of mining stocks as a significant opportunity for investors. He predicted that the sector would benefit from rising precious metal prices and renewed investor interest in 2025. Additionally, he encouraged investors to prioritize physical gold and silver as a hedge against economic and monetary instability.
