Latest / SILVER / GOLD / $UFD: Surviving Global Economic Shifts | RONS BASEMENT / ⚡SILVER and Gold SET UP⚡FEDERAL RESERVE Report Shows Weekness

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⚡SILVER and Gold SET UP⚡FEDERAL RESERVE Report Shows Weekness · SILVER / GOLD / $UFD: Surviving Global Economic Shifts | RONS BASEMENT

0:00
Our gold and silver perfectly and I mean perfectly set up to
0:07
go well through the end of the year and into 2024.
0:11
There's two big things going on right now.
0:15
They could create this perfect set up for the gold price and
0:18
the silver price. We're going to talk about that.
0:21
But also we got some big news today out of the Fed.
0:25
Yes, our old friend Jerome Powell in the Federal Reserve.
0:29
And why is it big news? Because, guys, the economy is
0:33
slamming on the brakes. Banks don't have any money.
0:38
And when banks don't have money, they can't lend money.
0:42
And when people can't get money and and businesses can't get
0:45
money, that spells big trouble for the US economy.
0:49
Now maybe I'm wrong. I don't want to be a complete
0:52
sooth Sayer negative conspiracy theorist.
0:56
The sky is falling type guy, but we know the facts about what's
1:00
going on. And remember, the US economy is
1:03
like 2/3 based on the consumer. When the consumer can't get
1:09
money, that's a big, big problem.
1:12
Maybe, just maybe, do you think that possibly explains why we're
1:16
seeing a collapse in trucking freight volumes, rail volumes?
1:21
I don't know. Probably has nothing to do with
1:23
it, right? But nonetheless, we do know
1:25
that's going on. But what data did we get from
1:28
the Fed? We're going to talk about that
1:30
as well. Let me let me just dive right
1:32
into that right off the bat. And then we're going to talk
1:35
about this situation that's developed within the gold and
1:38
silver markets that could have it perfectly set up for the end
1:43
of the year. This is from Reuters.
1:45
Our friends at Reuters headline headline New Fed report shows
1:51
that US loan officers see much tighter credit, weaker demand
1:57
again, if there's no money available for the consumer to
2:01
borrow to buy, buy, buy for the businesses.
2:05
Remember, we have like 1510% of the US businesses right now in
2:10
the United States that are zombies.
2:12
They're living off that free money or they weren't living off
2:16
that free money. It's going to shut everything
2:19
down. It could create real economic
2:22
chaos. Could, could, could.
2:25
Now, that's under the worst of circumstance.
2:27
Under the best of circumstances, we're going to have some major
2:30
economic slowdown and the Fed's going to have no option but to
2:34
do the only thing they know how to do, and that is to devalue
2:38
the dollar. Whether you want to call it
2:40
money printing, whether you want to call it quantitative easing,
2:44
whether you want to call it some other new creative word that
2:47
they'll come up with and they will come up with a new
2:50
creative. They're not going to call it QE
2:51
Three or QE 4 Quantitative easing.
2:55
They'll call it operation Whatever.
2:58
You know, they'll make up some you can.
3:00
You can recommend names in the in the chat section.
3:04
And by the way, while you're here, please type 5 to say thank
3:08
you to all the moderators. OK.
3:10
But what do you think they'll call it?
3:12
They're gonna come up with a new creative term for basically
3:17
devaluing the dollar. That's all they can do, OK.
3:22
And that means inflation continues to go up and that
3:25
means silver and gold eventually guys eventually will react to
3:34
this environment, will recognize that the dollar is going down,
3:38
down, down in value and we will see much, much higher silver and
3:41
gold prices. Let's dive into this article
3:43
real quick. Banks tighten lending standards
3:46
for US businesses and households in the third quarter the the
3:52
pace of change appeared to ease a little bit and demand for
3:56
loans fell broadly. In a sign of the impact of
4:01
higher interest rates are having on the economy, the Federal
4:06
Reserve reported today Monday the tightening standards for
4:10
business loans applied to firms of all sizes, the US central
4:16
bank said in the latest survey of senior bank lending officers.
4:19
While consumers face tighter credit for home and equity
4:24
mortgage loans. What's going to happen to the
4:27
real estate market? Do you own a house?
4:29
Are you a little worried? You know, a lot of my neighbors,
4:32
especially over Halloween, I heard a couple of them bragging
4:35
we were talking about the value of our houses.
4:38
And this one neighbor of mine said, well I think my house is
4:40
worth $550,000 and I almost hey, thank you Snakebite.
4:46
Wow. You're very welcome my friend
4:48
Snakebite man right down the road when I'm in Saint Louis.
4:52
But I almost, I almost threw up my Snickers bar that was in my
4:55
mouth and I thought these people don't have any clue what's
4:59
coming down the pipe. I'm like, so you think your
5:02
house that was worth 300,000 19 months ago is suddenly worth
5:08
550,000. It's worth that if you sell it
5:11
for that and you go to the title company and you get the check,
5:15
right? But guys, I'm telling you this
5:17
says it right here that that that that tighter credit for
5:21
home and equity, mortgage loans, credit cards and tougher terms
5:27
on auto loans, OK, credit cards. Americans live off credit cards,
5:33
unfortunately. I hope you don't.
5:35
Please. I don't give financial advice,
5:37
but I do give that. I do give that financial advice.
5:41
Don't live off credit cards. Pay off your credit card debt.
5:45
Don't let those crooks And it's it's like it's like it's like
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loan sharking that they're doing to you. 2030% interest rates.
5:55
It will eat you alive. OK, but.
5:58
But the fact of the matter is Americans live off these credit
6:01
cards. OK.
6:03
So if the banks are tightening the lending standards, they're
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they're they're lowering the amount of credit available on
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credit cards that is bleeding through to the US economy.
6:12
I think we might be heading toward the black Christmas.
6:16
OK, I still think we've got a good chance of getting our $30
6:21
silver by Christmas, but nonetheless it is getting very,
6:25
very difficult out there. Right.
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You don't. I'm pleased.
6:29
Basement dweller, please promise me you're not living off your
6:33
credit cards. If you are, either pay them off
6:36
or claim bankruptcy. You know, I'm like the basement
6:42
version of Dave Ramsey. Pay off your credit cards first
6:45
if you can. If not, claim based.
6:48
Start over. I don't know.
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And I'm not recommending you do that or anyone do that.
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I'm just saying they're robbing you on those credit cards.
6:55
But the big picture? All right, let's talk economics
6:59
now. Easy to understand economics.
7:02
Economics is a joke. It's very easy.
7:04
You trust me? Any of you who watched my videos
7:08
and engaged with my content are smarter than the average bear.
7:13
It's very, very easy to understand if the credit is
7:17
being constricted in the economy, business loans,
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consumer the economy is is slamming its brakes on.
7:26
Remember we talked about the lag effect of the Fed interest rate
7:29
hikes? This is it, baby.
7:31
It's happening right now and the Fed is going to panic. the Fed
7:35
is gonna do. They love the fact that they've
7:38
got rates so high and wait till we talk about in just a few
7:41
minutes how the gold and silver market are set up like never,
7:45
ever before. They love the fact they've got
7:48
rates 5, 1/2%. They love it because now they
7:52
can lower, lower, lower, lower, lower.
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They've given themselves a bunch of lowering ammo.
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They can't raise rates anymore. Guys, sorry, they can't do it.
8:06
They just can't do it. All right, let's get back to
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this real quick. Auto loans.
8:11
Let me tell you about auto loans.
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I'm with Susie and I've been thinking about buying a new car.
8:17
Kia Carnival. They're expensive.
8:19
All cars are crazy expensive, right?
8:22
We drove the old jalopy Honda Odyssey down here.
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I love it. It did well, all that great
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stuff. But the rates on a car loan.
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And look, I'm not bragging because you know me, I pay off
8:34
my bills every month. We do have perfect credit, but
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the rate? The rate to borrow money to buy
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a new car is like almost 11% for somebody with, I mean it's
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crazy. I'm like no thanks, you lost a
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customer right now if you had like 0% or 1%, I might consider
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it. But no, this is going to kill
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the economy. Demand for loans, here we go.
8:58
Listen up, this is key. Demand for loans fell broadly
9:01
with 60% of banks citing moderately or substantially
9:07
weaker demand for home mortgages in the third quarter, up
9:11
significantly from 43% in the second quarter as the Fed's
9:16
aggressive rate increases since March of 2022 continued to bite
9:22
on the residential housing industry.
9:25
It's all coming down. Then they talk about how
9:27
mortgage rates are almost 8%. You know, it's like my neighbor
9:32
who's bragging about their house being worth $550,000.
9:35
If somebody wanted to buy that house 19 months ago, it would
9:39
have cost them 300,000 at 3% interest.
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Now that same house, according to my neighbor, is going to cost
9:47
though that same person 550,000 at 8% interest.
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The payments going to be like three times as much.
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Can you hear the brakes screeching?
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That's the economy. Listen up.
9:59
Can you hear it? You might hear waves because I'm
10:01
sitting out here on the balcony by the ocean anyway. 20 month
10:08
old Tightening cycle, All right. Well, more than half the banks
10:11
reported tightening business lending standards in the second
10:14
quarter. Just 35% said they cranked down
10:18
further in the third quarter with about 62%.
10:21
They're killing it. They're killing the economy to
10:25
slow things down, to fight inflation.
10:27
Yeah. One way to fight inflation after
10:29
you've printed all the money they did back in the C19 era, is
10:33
to throw the brakes on the economy.
10:37
We are in pivot zone. Let's talk about, let's talk
10:40
about how gold and silver are set up like never before for a
10:45
potential rally, I believe through the end of the year.
10:50
I could be wrong. I probably am.
10:53
OK, but I I want you to think about something that's beautiful
10:57
when it comes to what is going on positioning wise.
11:01
Hello, Mary Radcliffe. Hello, Coin shop.
11:03
Chris. Hello.
11:05
Hello. I want you to 1st answer me a
11:07
question in the comments. I want you to type 6 if you feel
11:12
like the economy is slowing right now, whether you've gone
11:17
and maybe shop for a car like I briefly did.
11:19
I spent about about 60 minutes doing that.
11:22
So I said there's no way I'm paying that these higher
11:25
interest rates are really taking a bite on the economy.
11:29
Are you feeling it? We're down here in Orange Beach,
11:33
AL, the building we're in, it's usually pretty empty this time
11:36
of year. That's why we come here, because
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the rates are like 20% of what they are during the summer.
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I'll be honest with you, only way I we can afford it.
11:44
But, but it feels like things are a lot slower and a lot of
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the people I'm talking down here are saying, yeah, not as many
11:50
people are coming. So are you feeling it?
11:53
We see a bunch of sixes. Yeah, it's happening.
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And guys, that will be the main event, which will cause the Fed
12:03
to pivot. And when everybody else realizes
12:06
what's going on, we're going to see the silver and gold price
12:10
absolutely skyrocket. I want to talk about this
12:16
positioning in the gold and silver market and why we may be
12:20
set up like never before. Well, at least not since like
12:24
the 1970s. But I'm going to just refer a
12:30
little bit to this article from Kitco from Ernest, Hoffman says.
12:34
He says gold prices, OK, gold prices may need a clear signal
12:39
of Fed cuts to break $2000. Industrial silver demand is set
12:45
to rise. So we got a little nugget about
12:47
silver in here. We're going to read as well.
12:49
But he's saying that we need a clear signal from the Fed that
12:53
they're going to cut. OK, gold prices are staying
12:56
staying steady even as interest rates remain at 22 year highs.
13:02
OK, remember that. That's point #1.
13:05
Interest rates right now are at 22 year highs, 22 year highs.
13:13
Remember that. That's important, but they will
13:16
probably need a clear dovish signal from the Fed to rally
13:20
decisively above $2000 per oz, according to the latest metals
13:26
report from analyst at Herrerius.
13:29
Whoever the heck that is. OK, this says here the gold
13:33
price had a muted reaction to the Fed the Fed meeting last
13:37
week following the recent $200.00 rally, which peaked
13:40
right above $2000 per oz. Guys, let's remember we went
13:45
from 1800 to 2000 today. I know it wasn't that great of a
13:50
day, but we're still in gold sitting around 1825 and silver
13:53
sitting right around 23. That's the spot price suggesting
13:59
there's some fatigue in the gold market after being supported by
14:03
safe haven demand On the on the conflict in the Middle East.
14:07
It's possible we will see some of this war premium dissipate
14:13
over the next few weeks assuming there's no significant
14:17
escalation in the conflict. But we've talked about this, we
14:20
talked about this this morning, right?
14:23
The war premium has held on most of the other hedge related war
14:29
related investments that shot up when the on October 7th
14:34
unfortunate events unfolded have already pulled back.
14:38
But for some funny reason the price of gold hasn't pulled
14:42
back. And when I talk about gold, I'm
14:43
talking about silver. Silver's hanging in there.
14:45
Don't you knock silver? OK, don't you knock silver
14:50
because silver is hanging tight and hanging in there.
14:55
But nonetheless they're saying right we we could see a
14:58
dissipation in the war premium. But remember point #1.
15:03
We've got 22 year high interest rates, OK?
15:07
They noted. This downside risk is being
15:09
compounded by rising risk appetite.
15:12
The S&P 500 has fallen by 10% in the last three months.
15:17
I didn't know that rallied 4% last week, coinciding with the
15:22
the the stall in gold's rally. If this zone of resistance
15:26
formed around 1980 holds, the gold price could bounce slightly
15:31
higher. OK to to substantially move
15:35
above $2000 per oz. However, it may need a clear
15:40
signal from the Fed that cuts are coming and the return of
15:43
investors to ETS, which is seen outflows of greater than 200
15:49
tons so far this year. So gold and silver aren't going
15:53
to do anything until the Fed, right?
15:57
Until the the sheeple, right? The people that watch CNN and
16:03
CNBC and MSNBC, you know, like to watch pharmaceutical
16:09
commercials and hear about ex President Donald Trump until
16:12
those people wake up. No offense, I watch a little bit
16:16
of that myself. I'm just saying and realize that
16:21
the Fed is pivoting that things are bad out there.
16:24
So why are we set up like never, ever before?
16:28
I want you to think about what we talked about earlier.
16:30
We are at 22 year highs right now in interest rates, 22 year
16:36
highs. I read constantly.
16:39
I analyze this stuff constantly guys.
16:42
And the the feeling I'm getting from the mainstream, OK, from
16:47
the mainstream financial media is that everybody is starting to
16:52
realize the Fed's done, the Fed's done, the Fed is done.
16:56
OK, I'm going to have one more quick sip of coffee.
17:12
That was a mistake. There's a bunch of coffee
17:14
grounds in there. Great.
17:16
Anyway, I will go on, I will press on.
17:19
Macduff, everyone is realizing that the Fed is done.
17:25
Now why are we in such a perfect spot, right.
17:28
The economy's slowing, right. We just, we talked about there's
17:31
all this credit contraction going on, we're in a perfect
17:35
spot for one reason, two reasons.
17:38
Number one, right now at the Fed with rates so high, they've got,
17:43
they can do three or four quick interest rate cuts and still
17:48
have a lot of ammunition they can do.
17:50
They can do four quarter point cuts and go down to 4%.
17:54
What I'm saying is there's no more room. the Fed can't raise
17:58
rates anymore. Maybe they'll raise them one
18:01
more time, but most likely, right.
18:04
They know they got that in their back pocket.
18:06
They've raised rates all the way up.
18:08
So now they could cut rates, Oh my God, right.
18:12
They could cut interest rates by quarter point.
18:14
They could do that four times and they'd still have the rate
18:17
above 4%. They'd still say, well, we still
18:20
have plenty of room for ammunition if we need to cut
18:25
rates further, that's number one.
18:28
There's no more room to raise rates.
18:31
People are waking up. That's going to become much
18:34
more, much more part of the common thesis that we're going
18:40
to be hearing from the mainstream media as we move into
18:43
2024, and that will be supportive for gold.
18:46
There's an extra bonus feature as well.
18:49
OK, the second reason. Very interesting situation.
18:53
Hold on here. The second reason even as was
18:58
pointed out in that Kitco article.
19:01
Remember at the end of that Kitco article, 200 tons of gold
19:05
have left the GLDETF this year. I don't know how many thousands
19:09
of Oz of silver have left the SLVETF guys all we need.
19:17
OK, imagine this environment for the silver price and gold price.
19:21
People wake up, the Fed starts cutting rates a little bit, OK.
19:26
And and at the same time, investors in the West, again,
19:32
they don't have to start even buying, They just need to stop
19:36
selling. And God forbid, if they started
19:39
buying gold and silver, we could be in an environment where there
19:45
is unbelievable demand for the metals.
19:49
OK, there's a bonus feature as well.
19:53
I'm sorry, I just drank a bunch of coffee ground, so bear with
19:55
me. If you could please, Hey, give
19:57
this a thumbs up, man, that would be awesome.
20:00
We almost got 100. I'm going to ring the I'm going
20:03
to ring the rail when we get to 100.
20:07
Thumbs up. Maybe Susie can bring me a metal
20:10
spoon of some sort that I can use to ring the rail.
20:12
She could bring it through this door right here to my left so
20:15
she wouldn't have to be on camera nonetheless.
20:18
Nonetheless. Big picture, interest rates.
20:23
All right, I'm going to say all time high 20 years is all time.
20:26
22 year high interest rates can only come down, right?
20:31
OK, That is rocket fuel for silver and gold.
20:35
Investor demand in the West is near.
20:39
I don't know if it's all time lows, but it sure feels like it.
20:42
People are selling, selling, selling.
20:45
If that goes up while interest rates come down, that is like,
20:50
you know, 321. You know, it's time to put boots
20:55
on the warehouse floor. It's time to see some feathers
20:59
fly. Here comes Susie.
21:01
We got 100 thumbs up. Oh, hey, it's Evie.
21:05
She brought me a spoon. You want to say hi?
21:06
Evie, this is my daughter, Evelyn.
21:11
She says, hi, Evelyn. And we have a question for you.
21:15
What do you think the gold price will be by Christmas?
21:19
I don't know. Do you think it'll be over 2600
21:23
or under 2600? Now let's do 2100 under 2100 or
21:28
over 2100? Over.
21:30
You got to talk loud. Over.
21:31
Over. All right, get out of here.
21:33
Thank you. All right, guys, we got 100
21:35
thumbs up. I'm going to ring the bell 10
21:37
times. Oh, boy.
21:46
It didn't work so well. I asked for a metal spoon.
21:53
Oh, hey, look at everybody here. Mary and Radcliffe.
21:56
Hey, Jake from Jake's custom parts coin shop.
21:58
Chris, thank you guys. Thank you to all the moderators,
22:01
but there's a bonus feature going on.
22:05
OK. Remember environment, lowering
22:09
interest rates, increased demand.
22:13
Unfortunately, what I'm my research is showing that like
22:16
investor demand, especially for big silver products right now is
22:21
not real good. I don't know.
22:23
So anyway, interest rates coming down, OK, demand for silver just
22:29
a little bit just doesn't even have to start buying.
22:31
They can just stop selling goes up.
22:33
OK and guys, and I know you're going to hate me.
22:38
I don't want you to hate me for this, but you're going to love
22:41
me, but you're going to hate them.
22:42
I'm going to repeat this. This stagflation environment
22:46
we're moving into is a big, big deal, OK?
22:50
Because this economy is stagnating right now.
22:53
We're seeing stag, right, Stag snag, whatever you want to call
22:59
it, you know, recession. That's the stag.
23:03
Deflation is still going on. I heard somebody talking this
23:07
morning. We got inflation, whatever the
23:10
real inflation rate is still 678 percent, OK.
23:15
It's going to create this environment where we could, we
23:19
could potentially see three or four very strong supportive
23:23
factors for the silver price, for the gold price coming
23:27
together. I don't know.
23:27
I talked to, I'm blue in the face about this silver and gold
23:31
price. That's what I believe.
23:33
OK, Somebody, somebody sent me an e-mail saying, oh, 25 years
23:37
from now, you'll be in your basement saying that you're
23:40
waiting for $25 silver. I don't believe that.
23:44
OK, I'll be 78 years old. I bet by the time I'm 78 years
23:50
old, we're going to see silver numbers that that you wouldn't
23:52
even even comprehend. So, hey, thanks for joining me.
23:56
You guys are the best. OK, This was great that I'm way
23:59
on vacation. I can do these nighttime live
24:01
streams. I just felt like I needed to
24:03
share that with you guys. Thank you for the Super chats,
24:06
super generosity. Thank you to all the moderators.
24:10
Thank you to our sponsors. Oh my gosh, I almost forgot.
24:12
Pinbex. Online bullion dealer Pinbex.
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platinum, check out Pinbex. Best quality, best service, best
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And there's one more point. What is it?
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Oh yeah, the best prices as well.
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First, Mining Gold, another great sponsor of Ron's basement.
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This isn't possible without the sponsorships.
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And 1st Mining Gold's a stock I've owned for years and years
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and years. Years before I took them on as a
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sponsor. Www.firstmininggold.com.
24:49
Don't forget www.ronsbasement.com coming
24:53
soon. OK.
24:54
It's on its way. We're working on getting the
24:56
forum up and running. I'll keep you posted on that.
24:58
Take care. Thank you.
25:00
Thank you. OK, please.
25:03
Those there's 175 and you still here with me.
25:05
It's a big deal. You're here.
25:08
This great community. You're always welcome here.
25:11
OK, Wonderful. Nice people.
25:13
Hello, Mary Radcliffe. Speaking of wonderful, nice
25:16
people, you know Jake from Jake's Custom Parts coin shop?
25:20
Chris. Jim M Snake bite.
25:22
You know, all you guys. Mike Herrera.
25:25
OK, thank you. We're going to we're going to be
25:28
in for some really fun times in the future as as investors and
25:33
enthusiasts of precious metals. Right.
25:35
The Real McCoy. Where'd I put it?
25:37
You know here. I got one in my pocket.
25:39
You know. Here.
25:41
I got one right here. I got to be careful.
25:42
I don't drop them on the 17th floor.
25:45
That's that's my Indian from coin shop.
25:47
Chris. He's been going all over the
25:49
place with me. All right, guys, take it easy.
25:52
Thank you. OK.
25:54
And I'll see you soon.