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These 'sound money' assets will 'come back with a vengeance' - Lawrence Lepard

Kitco News

Several “sound money” assets are undervalued right now, and are long overdue for a major comeback, said Lawrence Lepard, managing general partner of Equity Management Associates.

In particular, mining stocks are grossly undervalued, Lepard noted. In fact, analysts are not using valuing mining stocks using $1,800 an ounce for gold; $1,650 is the norm for discounted cash flow models.

The day gold breaches $2,000 an ounce again is when these mining stocks will “come back with a vengeance,” Lepard told David Lin, anchor for Kitco News.

The VanEck Vectors Gold Miners ETF (GDX) fell 20% year-to-date, while gold lost 9.5% during the same period.

Sound money, according to Lepard, includes gold, mining stocks, silver, oil, and Bitcoin.

“I’m a big proponent of Bitcoin and unfortunately, a lot of people in the gold business don’t take the time to understand and study Bitcoin, and they should,” he said.

Investors need to weed out illegitimate altcoins and be wary of pump and dumps, Lepard added.

“You should look at the core, base crypto out there which is Bitcoin, and you should recognize what it is technologically. What I would say that is, is it’s an incredible innovation, because if you think about what money is, money is nothing more than a ledger. Before we had gold, or currencies, or anything else, we sat in caves and we kept score…money is just a way of keeping track of who owes who what. If you can create a digital ledger that is immutable and can’t be cheated on, that’s arguably even sounder as a form of money than gold,” he said.

For more information on monetary policy, fiscal policy, and market bubbles, watch the video above. Follow David Lin on Twitter: @davidlin_TV (

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