Florian Grummes: Food Shortages, Inflationary Spiral & Why Gold Miners Will Benefit ‘Tremendously’

Stijn Schmitz welcomes back Florian Grummes to the show. Florian is the Founder and Managing Director of Midas Touch Consulting. The discussion opens with concerns about equity markets at all-time highs, rising Treasury yields, and Middle East energy disruptions. Grummes argues the financial system is walking on a tightrope, but central banks will continue printing money to sustain the “paper Ponzi scheme,” delaying any systemic break. He sees the US midterm elections as a near-term uncertainty, expecting markets to struggle until then, followed by a possible year-end rally. On energy, he believes oil prices are being managed and warns that a proposed US diesel export ban could severely stress Europe, potentially leading to supply chain issues and food shortages, advising listeners to prepare by stocking essentials.

Grummes remains bullish on oil producers, citing a strong uptrend, and foresees an inflationary spiral driven by rising bond yields and money supply expansion. He emphasizes that gold’s fundamental drivers are intact: central bank buying, Asian demand, a shift from bonds to precious metals, and ongoing liquidity injections. Technically, gold is in a correction since January, with support around $4,000; a break below could target $3,500, but he views dips as buying opportunities. He highlights the long-term secular bull market in gold and expects miners to benefit from healthy margins and strong balance sheets, though near-term tax-loss selling may create pressure.

For mining investments, he stresses the importance of management track record, jurisdictional safety, concentrated portfolios, and having an exit strategy. He favors stocks with declining volume on pullbacks, indicating weak hands are being squeezed out. Grummes concludes by inviting listeners to his website and Substack for daily and weekly analysis.

Timestamps:

00:00:00 – Introduction

00:00:40 – Current Market Overview

00:01:49 – Paper Ponzi Scheme Concerns

00:02:43 – Middle East Energy Disruptions

00:03:38 – Midterm Elections Impact

00:06:28 – US Geopolitical Weakness

00:09:12 – Diesel Export Ban Feasibility

00:10:10 – Oil Producers Outlook

00:11:24 – Preparing for Supply Shortages

00:12:50 – Economic Slowdown Implications

00:16:22 – Fiat Currency Debasement

00:20:48 – Gold Market Fundamentals

00:28:10 – China Gold Trade Strategy

00:33:16 – Gold Miners Opportunities

00:37:47 – Investment Pitfalls Advice

00:42:38 – Stock Setup Opportunities

00:43:45 – Concluding Thoughts

Guest Links:

Website: https://www.midastouch-consulting.com

X: https://twitter.com/FlorianGrummes

Substack: https://substack.com/@midastouchconsulting

Telegram: https://t.me/MidasTouchConsulting

Free Newsletter: http://eepurl.com/d5Euf

LinkedIn: https://www.linkedin.com/in/floriangrummes/

Seeking Alpha: https://seekingalpha.com/author/florian-grummes

Facebook: https://www.facebook.com/Midastouchconsulting

Florian Grummes is an independent financial analyst, advisor, consultant, mentor, trader & investor as well as an international speaker with more than 30 years of experience in financial markets. 

Florian is the founder and managing director of his company Midas Touch Consulting, which is specialized in trading & investments as well as consulting, analysis & research with a focus on precious metals, commodities and digital assets.

Via Midas Touch Consulting he is publishing daily and weekly gold, silver, bitcoin & cryptocurrency analysis for his numerous international readers. Florian is well known for combining technical, fundamental/macro and sentiment analysis into one often accurate conclusion about the markets.