The miners are set to become the new Mag-7. Hong Kong-based precious metals expert Eric Yeung returns to the Metals and Miners pod on 8/20 to break down why gold and silver mining stocks are entering one of the most powerful phases in decades.
While the U.S. runs multi-trillion-dollar deficits, hyperscalers flood A.I. infrastructure with debt, and the Treasury market turns into a hot potato, Eric explains why liquidity will keep flowing under the current administration; and why that environment is rocket fuel for gold, silver, and the companies that dig them out of the ground.
From the shift to short-term T-bills (“living hand to mouth”), U.S. sanctions on Chinese miners creating a potential physical squeeze, China’s gold reserves as a financial nuclear weapon, Fort Knox realities, the explosive move higher in GDX and GDXJ, the coming M&A wave in juniors, and why late-stage explorers and mine restarters could deliver 10-20 baggers; this conversation is packed with actionable insight.
Eric also shares exactly how he builds positions, when he plans to sell, and his clear advice for anyone still under-allocated to precious metals and miners.
“If people are just getting into precious metals, it’s never too late to start — just dollar cost average.”
“The long end of the US Treasury market is like a hot potato. Nobody who has a choice wants to hold it.”
“They are living hand to mouth… that’s what banana republics do.”
“While Trump is in office, they’re going to keep juicing the system with liquidity.”
“The miners are essentially going to be the new Mag-7 in the US.”
“This is extremely bullish for the junior miners… we might actually see some 10-20 baggers.”
“Every time the US government loses control of the Treasury market, the gold price goes up.”
“Why would I sell any of my miners until I see a potential top for gold and silver?”
“Right now is probably a good time to add if you don’t own enough gold, silver, or miners.”
Dollar-cost averaging remains the smartest way to build a precious metals position — never try to time the exact bottom.
The U.S. Treasury’s shift toward short-term T-bills signals growing stress and is structurally bullish for gold.
Liquidity is unlikely to dry up while the current administration is in office, supporting both metals and mining equities.
U.S. sanctions on Chinese miners could reduce gold flows into Western markets and benefit Western producers.
Producers are sitting on exceptional balance sheets and record margins, setting the stage for a major M&A cycle that lifts junior developers and late-stage explorers.
Miners — especially those with proven resources or restart potential — are critical infrastructure plays, not just cyclical trades.
Hold quality mining stocks until a clear top in gold and silver appears; the current setup favors multi-year strength.
0:00 – Intro
1:13 – Eric’s big takeaway: Dollar-cost average into precious metals
2:00 – US deficits, rising yields, and the Treasury “hot potato”
6:30 – Living hand-to-mouth: Why shifting to T-bills is dangerous
7:50 – Why a major liquidity crunch is unlikely under the current administration
9:00 – Miners outperforming physical metals — what it signals
10:15 – US sanctions on Chinese miners and the potential gold squeeze
14:00 – China’s gold reserves as a financial nuclear weapon
16:10 – Fort Knox, rehypothecation, and how much gold the US really holds
18:50 – Gold’s technical breakout and the 50-year relationship with the Treasury market
24:30 – Will the midterms impact gold and policy?
25:50 – The explosive move in mining stocks and why miners are the new Mag-7
28:30 – Record producer margins, declining reserves, and the coming M&A wave
31:00 – How to identify junior takeout targets (developers & late-stage explorers)
35:00 – Investment time horizon and when Eric plans to sell
38:00 – Interim top already seen? Liquidity outlook for the next few years
39:20 – Mine restarters and where Eric last added capital
41:40 – Final advice and how to follow Eric
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Eric sees the miners becoming the new MAG-7 because of their critical importance for the U.S. to wage war in the future. Do you agree? Leave your thoughts below!
1. “To keep their gold reserves like true gold reserves a secret is… the financial nuclear weapon that they won’t use essentially.”
China’s decision to under-report its actual gold holdings is framed as a strategic deterrent rather than a tool for immediate deployment. Revealing a stockpile larger than the United States’ official reserves could trigger a crisis of confidence in the dollar and Treasury market, but only if timed during a period of acute Western financial stress. Until then, the opacity itself functions as leverage.
2. “Every time the US government ‘lose control’ of the US Treasury market, the gold price goes up. And every time they have everything under control, the gold price gets slammed.”
Drawing on five decades of market history, Eric identifies a reliable pattern: gold thrives when policymakers are forced into unconventional measures (Operation Twist-style operations, heavy T-bill issuance, or emergency liquidity) and suffers when the Treasury market appears orderly. Current conditions—cracks in demand for long bonds, Japan’s potential selling, and the absence of quantitative tightening—place the market firmly in the “losing control” regime that has historically lifted gold.
3. “This is extremely bullish for the junior miners because… the reserves are gonna come from new exploration companies… We might actually see some 10, 20 baggers down the road.”
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