Bob Moriarty: People Are Throwing Money At Anything To See If It Sticks

Bob Moriarty: People Are Throwing Money At Anything To See If It Sticks by  for Energy and Gold

We are living in an unprecedented market environment in which market participants are embracing high levels of risk, and seemingly believing there is relatively little downside risk. Tesla is on its way to a US$1 trillion market cap, Bitcoin recently traded as high as $42,000, and every day there are $2-$3 billion worth of new SPACs (Special Purpose Acquisition Companies) created. The natural resources sector has received some benefit from this new wave of risk taking and market speculation, however, the precious metals sector is suddenly the most boring and least loved sector of the stock market. In Energy & Gold’s January 2021 conversation with 321goldfounder Bob Moriarty we delved into the market where “risk no longer exists” as well as a couple of Bob’s favorite junior miners including Novo Resources and Nevada Copper.

 

Goldfinger: A lot has happened since we last spoke about a month ago. I want to start with the market. We’ve been seeing some really extraordinary things in the market, whether it be Bitcoin, or Tesla making a 700-plus billion dollar market cap, or all of these SPACs, these special purpose acquisition companies that people just give money to, go public with no particular business. But then they acquire things, they acquire assets or they acquire a business into the public shell.

It’s a very interesting market environment, and also in the junior mining sector we’re seeing all these bought deals. I don’t know if you saw last night, but Orezone is raising almost US$200 million in a bought deal. We have Great Bear with a C$70 million dollar bought deal that was up-sized from C$39 million. What do you make of the market environment that exists today?

Bob Moriarty: I think it’s the first stage of hyperinflation. People are literally throwing money at anything to see if it sticks. Now, as far as Bitcon is concerned and Tesla and the general stock market, it’s an accident just waiting to happen. I am astonished that people are still suggesting investments in Bitcon, and I’ll tell you why. Were you aware that one half of one percent of Bitcoin investors control 83% of the Bitcoin?

Goldfinger: I wasn’t aware of that exact number, no.

Bob Moriarty: Well, I didn’t come up with it. The article is still on Kitco, and I believe that’s true. Guys have tried to beat me to death for years because I don’t find the price of gold and silver being manipulated as being significant for two reasons. First of all, if you look at a chart of gold and silver and compared it to anything else, it would be virtually identical. Why people get themselves in such a tissy over manipulation is beyond me.

But, second of all, and it’s more important, if you do believe gold and silver are manipulated, why the hell would you invest in it in the first place? Is manipulation a signal to buy, or is it a signal to sell? And I don’t think you can make money on it based on a belief in manipulation, and if you can’t make money on it, it’s just noise. And I know that you support Bitcon and all the 4,407 variations, but that money is all going to disappear. It’s going to go to zero. Bitcon is going to fly off to crypto heaven. Governments are making it crystal clear they’re not going to allow digital currencies, private digital currencies to compete with their digital shit coin.

Goldfinger: Well, let’s be clear. I wouldn’t say I support the crypto currencies, but I trade them just like I would trade anything else, just like I would trade Great Bear or Novo Resources. To me it’s just a trade, it’s not a religion. I don’t support them. I have way more money invested in gold and silver than I do in any of those cryptos.

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