Part 3: China’s Resource Race & How to Plan Around It

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Okay one last go on the D dollarization Topic for now hopefully this will bring Us back to the topic of gold after all Of this without that unnecessary fear I Mean it'll still be there We'll just know how to better avoid it The death of the dollar Has been a long Topic in part one I Focused directly on the US Dollars the Story that is dominant World Reserve Currency role is an immediate Jeopardy Is just really pervasive around here That we're gonna see hyperinflation Because of it and your dollars are more Or less worthless now that's not my take I made a few points on that in part two I figured that we would look directly at Where this actual threat to the dollar Is coming from It's coming from China and I talked a Little bit about their strategy with This belt and Road initiative explained The massive infrastructure program Talked a little bit about who it Benefited this last part is going to Focus a bit more on the problems with China's programs maybe things are going Quite as well there as some people seem To think because the whole point of this Series was to get a better look the Actual risk that we're looking at with a Possible downfall of the dollar try to Get a handle on what any of us might be Able to do about it rather than just

Curling up in a ball now YouTube has This analytics screen it's called Content your audience watches it lists The top 15 videos of people who watch Your content also checked out and every One of those videos all 15 of them are Warnings like all caps dire warnings Eight of them feature bullion dealers Kind of sad maybe we should be worrying Less about Metals working on dual Citizenship is some kind of Escape Plan I Portugal's nice maybe I can even get a Travel agent on the show well don't do That yet in this one we're going to tie Off the topic for a little bit we're Going to get back to what we can Actually do Adapt and overcome Now the last one I touched on some of The problems that China's had with their Belted Road initiative let's get some More color on that but don't get me Wrong here there's definitely Merit to The strategy China is working to Corner The market on energy and on Metals but Things are not all coming up Aces and We're going to look at that and then a Little deeper in I'm going to introduce Sponsor for this video but I will let You know when we get there this sponsor Lines up with what we're talking about Here but this has not been like a Three-part lead up to a sales pitch Don't worry this is just a great company

Who's allowing me to put some more time Into these videos Let's get back to China the Belton Road Initiative it's typically looked at as An infrastructure plan and it could be Argued that that's true but if you look Closely we'll see that the Infrastructure connects import export Lanes to important mining resources now China's top investments in the Bri fall Under the energy category now I Mentioned in the last one that they are Cornering markets on Cobalt on copper Gold lithium and uranium and yeah it's Not getting an outlier there because China's also aggressively pursuing Gold Mining rights as well ranked by total Capital their Investments go like this It goes energy first Transportation Second commodity Metals third now there Are others in play too you have Telecommunications you have real estate But those three are the big ones Countries that have the investment Dollars coming in they still own the Investment rights but China gets a cut Via the extraction in the production and They ensure their continued access to Those resource going forward now if I Can jump out of order for a minute China's highest lending exposure is in Russia so their support to Russia is Self-serving they aren't providing Military Support they're providing

Liquidity options they're looking after Their Investments and they're trying to Lock down resources so things there Might not be quite as tight as you think I talked a little bit about how China Operates in the last one for the Bri China rolls into a poor country and they Offer a deal on needed infrastructure Projects Chinese Banks they range of Financing Chinese contractors they Complete the projects it means that China ships in the workers and then the Chinese operators manage projects once They're complete that seems like a great Deal for both parties unless the host Country defaults now China can try to Take ownership if they do they can walk Away if they have to but one way or Another the country ends up indebted to China or sideways with them and many of The projects don't have a large enough Return to pay off their costs so the Country is stuck with a bad loan and no Good way out you add to that many of These countries with these Bri projects Going on are in serious financial Distress right now China currently has 600 billion dollars in debt out we've Heard about evergrand the Chinese real Estate developer in trouble could Potentially crash Chinese economy well This is twice the amount of debt that Evergrant has so in addition into the Potential real estate crisis that they

Have domestically they're running into Trouble outside the country as well You want to talk about Russia well China Has invested over 300 billion dollars There and things they're not going well There are these days their credit rating Is dropped the sanctions on the country Are having a big impact that alone could Be a big issue for China more than 60 Percent of its loans made through the Bri are currently in distress and they Have a huge exposure I've seen numbers As high as 1.2 or 1.3 trillion dollars In loans out so while China is out there Trying to quarter the markets on Resources they're taking huge economic Risks and no serious Economist that I've Seen or read has said China's in any Place to overtake the world Reserve Currency anytime soon Rather than just saying that though let Me give you a few examples in Sri Lanka They defaulted and had to sign over the Rights to a strategic Seaport that was a Few years ago Pakistan's another country They signed up under the Bri and they Owe a third of their foreign debt to China right now they also have a major Port project that's in trouble as well Zambia is probably the best example They're having similar problems they Defaulted in 2020 on a sovereign loan And they're trying to restructure right Now with China as well now there's also

Considerable political Fallout over These bad deals so there's even more at Risk the obvious issue here is that China needs to recover their financial Investment but those countries are now Accusing China of luring them in to Borrow too much they're left feeling Like they were sold on those projects Only to end up being effectively Foreclosed on in regionally strategic Locations or left trying to restructure Those loans on projects that may never Pay off so if part of China's plan was To gain political influence and soft Power in these countries Well just ask anyone in Zambia how they Feel about China right now so look China Is Far and Away our largest threat and Really the largest threat to any Western Country been very smart about locking Down resources and possibly beginning to Broker trade deals around the US dollar And if I didn't mention it they're also In the Middle East they're in Iraq and Saudi Arabia as well but they do have Their own problems so this is where I'm Coming from when I say that I expect a Gradual decline of the US dollar rather Than fire and brimstone the more likely Case is that we'll see a global Recession it's far more likely than the Loss of the dollars World Reserve Currency status and the distinction There is that China is not poised for

World domination the USD is not on the Edge of hyperinflation bullion dealer Might tell you it is but we still have Time to make logical decisions and this Is why I think time and patience still Work in our favor that's why I don't see The benefit of going all in on historic High prices now that's not to say that I'm not bullish on gold I am I just Think there's a way to go about it and I'll give a few specifics at the end but Since you Roy has been so good is to Sponsor this let me tell you a little Bit about what they're about So uranium royalty Corp First of all you all know I'm not Qualified to give hot stock picks but I Can tell you what stands out with Company why this might even be timely And I'll also say that I do have a Non-zero position in you Roy I've always Liked your story it's not going to Affect anything I'm showing you here This is a sponsored post that part Should be pretty straightforward now you Roy has come up on the channel before Maybe you remember them and you might Also recall that 20 of the United States Power grid comes from nuclear energy so That demand for nuclear fuel is massive And the U.S currently gets this fuel From foreign sources most of it is Imported from Kazakhstan and Russia two Countries the US doesn't have fantastic

Relations with it is I've been saying We're competing with Chinese interests Here what I was just talking about with China working to Corner the market on Energy on metal resources through those Bri initiatives that couldn't be more Relevant here our ability to rely on Foreign sources for Uranium it's not Improving but our move to 100 carbon Pollution free energy by 2035 is Increasing that need for fuel sources so What we're seeing right now is a National priority with bipartisan Support for that nuclear energy and also A push to Source it domestically that's Where Euro comes in The problem is that there aren't many Domestic uranium mines in operation now You Roy they have 18 projects most of Those show up here on this map Two are currently in production and They've also just announced the Acquisition of additional U.S portfolio Projects from anfield energy now that Gives them new royalty sources in Addition to what they already had They've also just purchased 200 000 Additional pounds of u308 brings them up To one million 748 068 pounds seems like A lot the part that's probably easier to Understand though is that their average Cost is 43.32 cents per pound you base that on The current spot price of uranium it's

Fifty dollars and fifty cents so the Value of those Holdings is 88 million Dollars and they have further purchase Commitments of five hundred thousand Pounds average price they negotiated was 47.71 so once again below the current Spot price of uranium if you're looking For the whole picture in the company They have 147 million dollars in cash Securities and physical uranium Holdings So with those Holdings they can wait for The optimal price to sell that current Supply and then in addition to that they Have the activity on the two projects That I mentioned they have 18 more in Different stages of development so they Have a first mover Advantage Domestically and then because they're a Royalty company they don't have expenses On idle properties they receive revenue On a fixed contract basis and that grows With production it's a good Gig if you Can get it they don't pay for drilling For extracting refining transporting They just get paid on the top line of Production The management team and the investors Are all Heavy Hitters in the industry We've had Amir and Nani on the channel Before we've had Scott Melby Amir is the Founder Scott's the CEO and these are Two of the most respected people in the Space you've probably seen them pop up Before when the topic of uranium comes

Up URI is the first company of its kind in The uranium industry the royalty Business is a highly profitable model I Mentioned before they don't have any Overhead for idle projects they don't Have overhead on any projects really Just revenue and that makes it scalable That makes it recession-proof they're Currently trading far lower than current Price targets HC Wainwright they have Them targeted at five dollars and Seventy cents per share well above where They're at today This up demand for nuclear is only Increasing and Trust in Eastern European Supplies it's only decreasing so uranium Royalty Corp they are set up very well To take advantage of the trend again I'm Not qualified to pick stocks but I think You Roy is definitely worth looking into For a number of reasons okay so back to The big topic to wrap this up this is Something that we're going to come back To I think that the dollarization topic Is a bigger thing as it relates to Gold Ownership though I look at it two ways The first is for emergency needs rainy Day fund that's the reason that I Specifically mention a number of ounces Rather than some percentage of net worth It's related to a two-year Runway that I Could possibly see as a need to figure Something out so it's 48 ounces actually

It's it's 50 for the sake of easier math The second is this idea that if we do See a gradual decline I have some kind Of background asset that I can bring Forward now I don't think of them as Separate things but I actually do have Them stored separately I use a vault for Metals that I don't expect to need to Get at quickly now in that sense I'm Doing this more for my kids than I am Really for me and my wife there's just No way to predict what's coming Especially when we're talking about Decades from now but that's how I'm Planning now I have my own retirement Pretty well planned out if I was looking To start over though I'd probably look At what I'm doing for my kids and I've Set up custodial brokerage accounts for Stocks it's not a wild amount in there It's just basic stuff from energy to Tech in it about half of those pay Dividends I also dollar cost to average A small amount into Bitcoin and ether For them so you can see where this is Going I'm just trying to keep that Diversification there they also have Savings accounts of course and I'm just Assuming that a big part of any gold That I'm buying is going to end up going To them so that's how I'm operating I'm Not scrambling because the end is June I'm looking out a decade in further so There's more to this topic I'm a little

Bit exhausted on it after three Consecutive videos on it but we'll come Back to it down the road there are other Angles to this situation I just don't Think that they are as relevant to the World currency topic that we started out On So let us know what you think I'd love To get your take on how you're planning Where you stand on the fierce scramble Versus maybe a more practical approach Let us know and while you're in the Comments be sure to hit the like button If you found any of this interesting be Sure you're subscribed with Notifications turned on if you'd like to See more on the topic and thanks again To you Roy for the sponsorship be sure To check them out sometimes this feels Like a full-time job in itself so I Appreciate that support from them They're a great company if you're still Here Thanks again for watching I always Appreciate your time Take care

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