Guys today, adam aaron bought gold. What kind of struck gold found gold, something along the lines with gold, but before we even get into this, i think we have to pay homage to a great moment that was birthed because of this whole situation. So take 30 seconds here watch this clip of crim jamer uh on air talking to a chair chair in the presidential debate that was so adam. Tell me.

Why do you prefer gold over batman during the national convention adam when i got you? I know that silva silver is very big here, but have you talked to uh dr mark bristow? Who knows very well he's going to continue that conversation? Oh man, guys this is pinnacle. That's a pinnacle moment. You really got ta love that sort of guys welcome back to trace trains. It's a boy trey, coming back to speak on uh, some pretty interesting stuff, adam aaron has purchased a 22 stake, utilizing amc's money.

Let's not get this twisted right. This is amc money that has gotten pushed into ticker symbol, h, y m c. Now i got ta admit at first glance, uh. I felt kind of i felt kind of bad about this, because hymc is a pretty low float stock.

I think it's like a 50 60 million share float uh. The word spak, which means special purpose acquisition company got thrown around a little bit and i don't know it's it's an interesting eyebrow raising sort of uh scenario. But if you dive a little bit deeper beyond uh, simply the 60 million share float by the way there was a dilution uh. There was an offering pitched here uh today, so just keep your eye on that.

If you are invested, i think there are some actual benefits to holding uh holding this company on the book. So to speak now they did buy up 22 of the float which comes out to a 20 to 30 million dollar investment, so nowhere near the 1.8 billion dollars that these guys have on hand. But the basic rundown on why hymc is important, is they're, a metals company and to really understand why that's important. You have to look at the value of metals.

So if i was to draw up sort of uh an inverse right, uh, there's sort of an inverse effect that you can see take place here, we're going to draw one of these in yellow on one of these - and let's just say i don't know green, you Know if you were to look at uh, you know, let's say gold. Let's say that gold as yellow is going up right now. Well, what typically will happen? The exact opposite time is, you will be seeing uh the us dollar and the stock market sort of going. The opposite direction: you can think of gold, essentially, as a hedge against, you know any sort of black swan event.

Perhaps inflation, perhaps rate hikes, probably inflation, being the biggest one and what is the greatest risk to uh inflation going up and the price of gold going up and precious metals for that that would include silver uh. It would be lots of money being printed see. I've showed this uh this diagram before, but you've kind of got, supply and demand right. We're going to put supply right here, demand right here.

I know this is this: is freaking ugly, but bear with me at any time that you, you move, uh supply, one direction or the other. Let's just say that this, for example uh this would mean uh, high and low high and low. Let's say that you've got high supply, low supply, uh high demand low demand. Let me make sure that i've got that drawn up right high this way, yeah.

That makes sense. So if you were to shift this right, let's say that you were to shift supply to uh the other direction. Right supply starts to go up. Well, what's going to happen, we're going to redraw this line for you here really quick in yellow uh is, as that supply changes.

You're also going to have demand decrease you've just printed more money, uh more money means that there's going to be less overall demand, essentially translating to a lower overall value of the dollar. Well, there's been a lot of money. That's been printed uh, so much so. In fact that uh, i think people forgot that inflation exists, which is quite the phenomenon and something that typically happens historically speaking with high perma inflation, which i do think is a risk here.

Uh is you see, metals increase in price now hymc is sitting on a literal gold mine. I don't mean that to be a meme, uh and you're gon na see this narrative getting spun. I've seen a lot of people talking about this uh adam aaron, amc, hymc, you're, going to see all these, these freaking meme lord titles and good. Let them have it! Let them have it because i actually don't think this is a terrible move.

Uh at the end of the day, because of this particular reason, when all said and done right: 15 million ounces of gold, 600 million ounces of silver. This is coming directly from adam aaron. His tweet uh is right. Here you can see we just purchased 22 of high craft mining, northern nevada.

It has 15 million ounces of gold, 600 million ounces of silver resources when it comes down to it. If there is a black swan event, which i will talk about here in a little bit you're going to see the value of those metals go up exponentially, it acts as a hedge right, a hedge essentially meaning hey. If all hits the fan, i've got this sort of as a backup to help me out they're sitting on not a large position right. It is about 20 to 30-ish million dollars is what i would about guess, uh.

At the end of the day, if things go well, you know that stock has some sort of a some sort of a you know, short squeeze. They get on the back half of that they're. Making money right - that's scenario, one they can make some money on a short squeeze uh. Obviously they have to be careful about that.

These guys are, he is a ceo. This is a company that can't be trading stocks, so to speak, but as an investment, certainly they could. They could two three four extra money. If things were to go well as a value stock or a growth stock, i should say as a growth stock uh.

There is a hedge here, there's a lot of safety behind owning a company that does own, and they do they own a lot of this or they not own, but have their access to a lot of these uh. This these precious metals, 15 million ounces of gold and 600 million ounces of silver uh - that is dollar signs that acts as a form of revenue that can happen when the time comes, if there is some form of black swan event, which brings me finally to this Black swan event now the reason i even think about this, like i mentioned before at first glance, uh. I saw this news and i wasn't super excited. You know this is a movie theater company dabbling in gold.

This is kind of making me think that adam aaron wants to to get into the mobs or something i don't know i mean this is this is interesting, but i saw a perspective that made me think twice and it came from joshua now. I know a lot of people out there. Aren't fans of josh he's he's a traitor. He he does a.

He keeps it straight uh and he's given some opinions on amc that people don't don't care for, but he has brought this to my attention. This is out on twitter, remember, palantir, buying 50 million dollars worth of gold bars back in august. It's all making sense. Now what palantir was doing at the time was preparing for something uh called a black swan event, a one in a million a one.

In ten million an opportunity essentially uh to prepare for something like 2008 - let's say the 2008 tour happen again: uh they're hedged in some way shape or form for the worst case scenario, and i think that this hymc play uh is a situation where you can see Some explosive explosive growth in a black swan event that is uh. The key word here is: if we do end up having a black swan event, you could see some exponential purely value growth. Now. Why would that happen right? Why would you see that happen in the first place? Uh i've seen this talked about a little bit uh, but i want to break it down in a very simple way.

Algorithms are are very uh simplistic things right. They look at things in terms of numbers, zeros and ones. If a zero and a one lines up in some sort of schematic that makes sense for the algorithm to be able to buy it uh they will purchase a stock. They will go buy instead of sell right now.

What you want to do is get an algorithm to look at something like amc as a buy, instead of as a cell, and they compute a whole bunch of different things. Right, they're gon na look at the fundamentals of the company they're gon na look at the technical setup of the company they're gon na look at the balance sheets of the company they're gon na look at the executives of the company and they're gon na find a Way, essentially, that's what algorithms are is zeros and ones coding, uh together a whole bunch of different events and sequences and this and that and whatever uh they find a way to be able to differentiate yep. This is a buy yep. This is a sell.

Well, you factor in essentially the opportunity to have 22 million dollars invested into a company that does deal with precious metals. There's an opportunity there uh to improve your odds of an algorithm buying into the stock if the zeros and ones you change. One of these zeros into a one because of something as simple as hey we've got a small fraction of uh our 1.8 billion dollars. I think it's less than two percent less than two percent of their their 1.8 billion dollars.

Cash on hand invested into something that hey. If hits the fan, we do pretty decent. If it doesn't, we've got a growth stock. You know uh you're walking away pretty okay, so that makes me a little bit happy.

I i actually do prefer to see that, and at the end of the day, is this like uh, a move where you're gon na look at this and go oh yeah, because because amc uh bot hymc all of a sudden, this thing's gon na go to a Thousand dollars tomorrow i mean no, i i think you you're you're missing the mark a little bit there if you claim something like that, but there are pros to this whole situation, and i think that is the value side, the black swan side, which is where i Think the true hedge comes into play and you've also got uh. You know the hedge side, which i guess you could kind of just tie into the value that could have said that right off the bat. But you know what we like saying: extra things with extra words, so it is what it is, but there is perhaps a con - and i don't see anybody talking about this, so i do want to talk slightly about what caught my concern in the first place and Uh, it's worth at least mentioning. Does this mean that something's bad, inherently with what you know, adam aaron amc decided to do no, but i do think it's important to cover these things uh, because of the implications that they would hold.

There's two things that catch my eye right off: the bat right, hymc, dilution, anytime. These guys have offerings uh. I think that adam aaron and co uh are going to feel sort of the pain of their investment. If that were to happen, this is a smaller scale.

Sort of thing this is a smaller float company, 58 million shares circulate around on this beast, so maybe they bump it up to 100 mil, maybe 120. I don't know what it'll be at the end of the day right, but this is something to keep your eye on uh, especially with a company that has such a low flow, such as hymc, not at the end of the world, the bigger one that catches my Eye is the special purpose acquisition company? That's what spax stands for now. Historically speaking, if you look over the last year year and a half, you can probably remember that there was a period of time in which spax went through some explosive growth and then everything kind of just flatlined died just like that, and what people were realizing is That spacks were utilized as uh. Basically it is a blank check company.

It's meant to acquire another company and can sometimes you know act as a cash grab, not good right. So you look at the little float of this company. You look at the fact that they they are some form of a spec and that they are a penny stock. It is a bit of a bad look if something weird happens with hymc.

You know adam aaron came out today and he stated you know. I didn't come on to cnbc, because my lawyers insisted with the heavy trading volume that was taking place today in hymc that i do not come on and i think what he's trying to avoid here is some form of implications that would come from the sec. So uh those are the two things that got me a little bit worried and i think that's at least worth mentioning. Does this mean that uh inherently it was a bad move? No uh doesn't mean that you should keep it in the back of your mind as you watch things moving forward.

Yes right, we don't want to ignore things that could be problems and to me these are two things that could change the scope in which uh adam aaron and amc sort of look at the hymc investment that they have made. But at the end of the day, i don't think this is a bad thing. You know if you're gon na make any takeaway from this video, it's inflation, bad hedge, good inflation is going to be bad there's. No, if ands or buts about it right.

We printed off a lot of money. We we haven't hiked rates like we probably should we've given out lots of uh, coveted relief checks and now russia, ukraine, the state of oil. All these things compiling together bad decisions made by banks, bad decisions made by politicians, bad decisions made by uh the fed you're not going to avoid it to me. I think people are underplaying: inflation, inflation, bad hedge, good, gold, silver, hedge inflation, there's just no way, fans or buts about it.

That's just historically speaking, you can look, and you can say with absolute confidence that these two things do exactly that. So if there's a black swan event or even a small recession, this is an opportunity to at least get some bang for your buck, it's better than just letting the cash sit there. So if i was to rate this, you know like one to ten uh in terms of how how solid of a move this is. I'd probably put it like a 7.5.

It's not bad uh. I would have put this 12 hours ago, probably. Well. I don't think it came out 12 hours ago.

Maybe it did, i probably would have put out like a 4.5. I didn't feel as good about it, but really changed. My mind is uh was josh. I mean he he's.

He doesn't know he's the biggest side. I won't even say he's a bull he's: uh he's a guy that just looks at things as is, and he came out and stated this, and it just made me think twice about sort of uh. My thought process that i've been taking coming into uh into this hymc acquisition so uh. You know.

I appreciate that josh. I hope that uh, you keep doing what you're doing and uh. You know trying to help out people and i suppose that's what i've got for this video. So you bunch of crazy chickens.

I'm gon na eat some tacos, my mom's in the back over here, making tacos so uh, probably going to do that and i'll catch. You all later so, as always, this is not financial advice. Please, thanks for saying the greatest i'll catch you on the next one, much lovely tips, peace.