Stijn Schmitz welcomes Greg Orrell to the show. Greg Orrell is President and Portfolio Manager, OCM Gold Fund. In this engaging discussion, Orrell provides deep insights into the current gold market, highlighting the significant price movements and underlying economic factors driving precious metals’ performance. Orrell explains that gold’s current surge, over 50% this year, is primarily driven by global government debt and currency debasement. He argues that central banks are increasingly viewing gold as a stability anchor, with many countries looking to diversify away from the US dollar.

The unprecedented monetary landscape has created a unique environment where gold is seen as a critical financial instrument. As a seasoned investor with 40 years of experience, Orrell describes himself as a long-term value investor focused on gold and silver mining companies. His investment strategy involves carefully selecting mining companies across different stages – from major producers to exploration companies – with a keen eye on management quality, project feasibility, and potential for long-term value creation.

Orrell is particularly critical of mining companies that pursue “profitless prosperity” by unnecessarily lowering cut-off grades or extending mine life without creating shareholder value. He emphasizes the importance of margin expansion and maintaining disciplined investment approaches. The discussion also explores the broader economic context, including government debt, potential currency challenges, and the shifting global monetary landscape. Orrell believes we are in a unique monetary cycle driven by declining confidence in traditional currency systems.

Regarding investment opportunities, Orrell suggests investors should maintain a 5-10% position in gold and silver assets as a form of monetary insurance. He sees significant potential in gold and silver miners, particularly as central banks and international markets increasingly recognize these metals’ strategic importance.

Timestamps:
00:00:00 – Introduction
00:01:25 – Guest Background Story
00:04:19 – Investment Philosophy Overview
00:05:38 – Gold Market Surge Analysis
00:08:45 – Government Shutdown Effects
00:12:30 – Historical Currency Parallels
00:16:28 – Gold & Central Banks
00:19:10 – Juniors & OCM Strategies
00:28:23 – Finding Value In Miners
00:34:04 – Dilution & Other Concerns
00:42:07 – Silver Miners & Value
00:48:15 – Concluding Thoughts

Guest Links:

The OCM Gold Fund has been managed by its long-time portfolio manager Greg Orrell since 1996. He is one of the longest tenured gold fund portfolio managers in the industry. With over 40 years of investment experience in the precious metals mining sector along with a deep understanding of gold’s monetary role, Greg is uniquely qualified to manage the assets of the fund. The specialized nature of the gold sector demands experience to evaluate and identify opportunities and cycles within the sector while managing the associated risks. Greg’s experience and belief in gold as money is what sets the OCM Gold Fund apart and aligns the Fund with its shareholders.

Greg received his BS in Economics and Business Administration from Saint Mary’s College of California. Greg is also the president of Orrell Capital Management, investment adviser to the Fund, and received his BS in Economics and Business Administration from Saint Mary’s College of California.