Platinum is strongest commodity in precious metals complex: Carlyle's Currie

Kelly Evans (Host) 00:00.350

silver retreating after hitting an all time high yesterday gold is just below record levels and the clear breakout today it's platinum which my next guest is arguably the strongest commodity in the precious metals complex joining us now is jeff curry the chief strategy officer

Kelly Evans (Host) 00:15.230

at of energy pathways at carlyle group jeff it's so great to see you welcome

Jeffrey Currie (Chief Strategy Officer) 00:19.630

hey kelly great to see you as well you know

Kelly Evans (Host) 00:21.470

i still thought you had the best encapsulation of what was going on in covid when you said there were too many dollars chasing too few atoms in the world and so the price of everything was going higher do you have is there a macro theory that explains why all of the metals

Kelly Evans (Host) 00:35.510

prices are absolutely levitating if

Jeffrey Currie (Chief Strategy Officer) 00:38.470

if it's in the periodic table and it has atomic number attached to it it's the debasement trade if it's a molecule and it has a carbon in it like oil gas corn wheat it's struggling but i think let's focus on the ones with the atomic number attached to them and your point here is

Jeffrey Currie (Chief Strategy Officer) 00:57.470

you've had a great run of gold you've had a great run in silver because they're pricing that debasement trade when we look at platinum and the reason why i'm going to argue that's the one that's the one you want to own today is the news coming out of the EU this week which took

Jeffrey Currie (Chief Strategy Officer) 01:12.910

away the ban on ice internal combustion engines because the platinum group metals go in as the autocad so you have taken away the negative you know positioning on platinum and open it up to the upside in that gold platinum ratio suggests there's a lot of upside here

Kelly Evans (Host) 01:30.510

right because i understand when people say it's all you know gold is the central bank purchase story that's fine but it feels much more like what you said that this is a dollar debasement trade obviously the dollar is going lower but when we say dollar debasement are we making

Kelly Evans (Host) 01:42.950

too much of it you know is that a dollar weakening is it dollar debasement does it matter if there's a big kind of differentiation there

Jeffrey Currie (Chief Strategy Officer) 01:50.270

well i think there's there's two points here there the the debasement that trade is i want to own something other than than fiat currency the D dollarization trade is i don't want to own dollars and subject myself to US sanctions and that would be like china and russia trying to

Jeffrey Currie (Chief Strategy Officer) 02:07.310

get away from seizure of central bank assets so there's two different dynamics at play gold is being squeezed essentially by em central banks trying to put both of those positions on at the same time but people in the developed markets they want to own gold silver in the

Jeffrey Currie (Chief Strategy Officer) 02:23.990

precious space primarily for the debasement reason right

Kelly Evans (Host) 02:26.790

and i noticed that bitcoin is not participating lately again it's it's fine it's done obviously quite well in prior years but this would seem to be the time that it would be taking its center stage role as the debasement you know asset of choice

Jeffrey Currie (Chief Strategy Officer) 02:40.910

well i think you still have the on raff and on ramp and off ramp of the cryptocurrencies you know obviously if you're a central bank sitting and where in asia you can move gold and nobody knows you have it you can move it anywhere in the world gold can survive anything it could

Jeffrey Currie (Chief Strategy Officer) 02:56.390

survive a nuclear winter bitcoin you know it's still in its infancy it's a sixteen year old market you put that against a gold which is a three market we know gold can survive anything and when we look at why is gold outperformed all the other you know precious metals let's go

Jeffrey Currie (Chief Strategy Officer) 03:15.190

to platinum remember platinum records platinum everything sits above gold because historically it's more rare it's more dense but the reason why there's such a demand for gold it's a thirty trillion dollar market it's absolutely enormous relative to something like bitcoin which

Jeffrey Currie (Chief Strategy Officer) 03:32.030

is you know one and a half trillion so you know that long history there provides the level of security that both the central banks want as well as individual investment