Commodities, Chaos, and Cash Flow: Larry McDonald’s Case for Hard Assets
October 10, 2025 – Are resource stocks the next big wave investors can’t afford to miss?
In this lively interview, Jim Puplava and Larry McDonald, author of How to Listen When Markets Speak, dissect the explosive rise of natural resources—gold, silver, copper, and uranium—outperforming even the tech-heavy “Mag 7.”
McDonald reveals why hard assets are surging as global debt, fiscal recklessness, and supply shortages collide. The conversation spans the dangers of passive investing, the overlooked risks of market concentration, and the looming “perfect storm” of commodity demand from AI, energy, and geopolitics. Packed with sharp insights and real-world examples, this discussion is a must-listen for anyone rethinking portfolio strategy amid economic upheaval.
Key topics discussed:- Natural resources like gold, silver, copper, uranium, and palladium have outperformed tech giants such as Nvidia and the “Mag 7” in 2025.
- Larry McDonald warns that hard assets are surging as a hedge against inflation, debt, and fiscal abuse worldwide.
- Passive investing is called "pure evil" by McDonald, who highlights the hidden risks of market concentration in just a handful of stocks.
- Despite media focus on tech, mining stocks (the “Shiny 7”) are up nearly 100% this year, yet remain undervalued due to rising profits.
- Bond holders globally are losing money as long-term rates stay high, pushing more investors toward hard assets.
- AI’s explosive growth is fueling demand for energy, copper, and coal, leading to a looming commodity supply crunch.
- China and the US are in a global race to secure critical resources—a modern twist on the Hunt brothers’ attempt to corner the silver market.
- Central banks are accumulating gold, and countries are using it for trade settlements, signaling a shift away from the US dollar.
- Environmental, political, and regulatory obstacles in the US threaten to slow resource development compared to China’s rapid expansion.
- McDonald argues the world is heading toward a "perfect financial storm," where resource shortages, debt, and inflation create major opportunities—and risks—for investors.
financialsense.com
Metals are the first to outgain the Mag 7 and eventually oil & gas will join the hard asset party.
At about the 7-minute mark they discuss why the natural gas producer stocks will need to triple if the forecasts of how much electricity will be required to power AI Data Centers are just 50% accurate.
At about the 19-minute mark they discuss the copper market. Makes Power Metallic Mines Inc. (PNPN.V) look very good to me.
I HIGHLY RECOMMEND that all of you over age 60 listen to the end of this podcast and buy Larry McDonald's book, "How to Listen when Markets Speak".
Dan Steffens
Energy Prospectus Group |
