Latest / SILVER / GOLD / $UFD Meme Coin Investing & Global Economics / THIS Drives gold price to $4,000 (NOT War!) - Bank of America - silver price News too

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THIS Drives gold price to $4,000 (NOT War!) - Bank of America - silver price News too · SILVER / GOLD / $UFD Meme Coin Investing & Global Economics

0:01
Bank of America tells US1 Big factor will drive the price of
0:05
gold and silver much higher as we move through the rest of the
0:08
year. And it's not war.
0:10
But given the fact that we have war right now in Iran, let's go
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take a look at the silver price and do an update here on Sunday
0:17
night because there is a lot going on in the world.
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And as we head out to CNBC, we're going to refresh and take
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a look at the gold and silver prices.
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OK, so we have silver up a hair about four cents per oz.
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And we see the gold is also up about $5 per oz.
0:38
So holding steady. It's not war, guys.
0:40
And we're going to talk about that a little bit later.
0:43
First, I want to say thank you for joining me here in the
0:45
basement. Basement dwellers, right?
0:48
We love to talk about gold and silver.
0:50
Please share this video. Please subscribe to the channel.
0:52
Give the video a thumbs up #1 I want you to know that you're
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always welcome to come back and join me here in the basement.
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If you like hanging out in the basement with me, please come
1:02
back. It's important.
1:03
You're number one. This is not possible without
1:06
you. Now let's go take a look at some
1:08
other crazy things going on in the market right now when it
1:12
comes to silver and gold. And there's a lot for us to dive
1:16
into. First off, we'll go here to a
1:19
post from our friend The Dude. Let's look at Friday's data, OK?
1:24
This is just insane. The silver market on Friday
1:27
traded 610 million paper oz, OK, 610 million.
1:34
Again, this is Friday, June 20th data.
1:37
That means that the paper market on Friday, OK, traded 3/4 of the
1:44
annual production of all the silver mines in the world.
1:48
And they're trying to tell that the silver price is not
1:50
manipulated, that it's not a beach ball being held
1:53
underwater. It's absolutely insane.
1:56
Now, next, let's go over to China and check out the Shanghai
2:00
Gold Exchange and check out what's going on with silver
2:03
there. And don't you worry, All right,
2:05
We love gold as well and we are going to get into the gold price
2:11
also. OK, here we go, our friend the
2:14
Oriental Ghost and he gives us Friday's data on silver and then
2:18
we'll go back and check at the current price.
2:20
But right now, guys, last closing numbers we had from
2:24
China, $37.50, OK, that's the Shanghai Gold Exchange and that
2:31
is silver and that is the physical market.
2:34
That's essentially a physical market in China.
2:38
So that's the physical price of silver in China.
2:42
Now again, $37.50, let's go look at what the United States, the
2:47
paper market is telling us, the silver prices and this is in the
2:52
futures market, $36.05, a full $1.50 less.
2:59
And again, that's the futures market and that's so that's the
3:02
paper market. It's just absolutely
3:05
unbelievable what they're doing right now.
3:07
Now what's the big driver for the gold price and the silver
3:11
price we know and we're going to cover it more.
3:14
We're going to listen to what Bank of America this is like the
3:17
Bank of America, the one of the biggest banks in America, what
3:21
they're saying. But we know is, well, it's the
3:24
devaluation of the US dollars, the printing of the US dollars,
3:28
the US government's ability to create currency out of thin air.
3:32
And wait till you hear what Trump is saying to Jerome Powell
3:35
now as well. We'll to that also, but we had a
3:38
big milestone guys, a big, you know, we need to have a little,
3:42
I don't know if you call it a party, maybe awake for what's
3:45
going on. Let's go out and look at the US
3:47
debt clock because we had a milestone that's maybe a more
3:51
accurate way to say that. OK, here we go. usdebtclock.org,
4:00
one of our favorite places to visit and we finally did it.
4:03
It seems like it took a little bit longer than we may be
4:06
initially anticipated, but the US national debt in the upper
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left corner, which I'm circling in green for you right now, has
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now officially breached the $37 trillion mark.
4:19
A lot of distractions going on in the market right now.
4:23
Obviously, the situation in Iran, unfortunate, nothing that
4:27
any of us want to see, war, further wars.
4:29
But guys, look at that. We had $37 trillion in debt.
4:34
You know, that makes the interest expense go up.
4:37
You know, that makes the deficit go up, which in turn makes that
4:42
debt number go up even higher, which just turns into a gigantic
4:46
debt cycle. We haven't looked at this for a
4:48
while and we are going to be able to circle it, but the
4:52
dollar to silver ratio right now is sits at over $1100.
4:59
What that means is that for each one ounce of silver that the
5:03
world produces every year, your United States government proudly
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prints, via the M2 money supply, $1100.
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The paper to silver ratio down here, 364 to one.
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OK, that means there's 364 paper ounces of silver for each
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physical ounce of silver. And you know what?
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Let's go back to the dude because I believe he had a post
5:31
that address that that brought out.
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We love the dude, we love Shanghai Ghost.
5:34
We appreciate the content that they put out.
5:37
Hold on here, let me see if I can find it.
5:42
Here it is right here. He points this out.
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Let's assume the paper to silver ratio is 364 to 1, which it is,
5:50
right? We just looked at that, but
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we'll circle it again here on his screen.
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OK, OK. If derivatives fail, would that
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makes over 364 * 36 dollars per oz or 13,000 an ounce?
6:08
Sounds ridiculous. You believe one Bitcoin is worth
6:11
100,000? Silver's arguably the most
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important asset on the earth. That's why they manipulated.
6:18
I've always called silver the original cryptocurrency, right?
6:22
It's decentralized, no central government takes over it.
6:25
But that just shows how astounded the numbers are that
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if the derivative market were to fail in theory, and right now
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there's 364 derivative oz for each one ounce of silver.
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If you do some simple math right, the value of silver, the
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actual physical metal, and you probably yourself own some of
6:45
that. It's it's astounding.
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It is absolutely astounding. All right, next thing, let's
6:51
move on to Trump. Did you hear what Trump said to
6:53
Powell? I mean, he is pushing, you know,
6:57
there's so much craziness going on in the world, but then you
6:59
have Trump pushing Powell to do something that would be never
7:04
had been done before. Let's go take a look at what
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Donald Trump, the pressure that he's putting on Powell from CNN.
7:12
We get this. Trump calls for the equivalent
7:17
of 10 Fed rate cuts, and wouldn't that be interesting?
7:24
I got a couple high, a couple of paragraphs with this that we got
7:27
to dig into. Trump on Thursday continued his
7:30
extraordinary and targeted verbal attacks on Federal
7:33
Reserve Chair Jerome Powell or old friend Gomer Gomer Pyle.
7:38
Surprise, surprise, surprise. Calling for a massive 2.5 point
7:43
reduction in interest rates. He said too late.
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Jerome Powell is costing our country hundreds of billions of
7:49
dollars. Trump posted on Social Truth on
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Thursday. He's truly one of the dumbest
7:55
and most destructive people in government and the Fed board is
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complicit. It's unbelievable that the
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president of the not a political statement, but it to me it's
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just plain unbelievable that the president of the United States
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is saying that about the, the chairman of the United States
8:12
Federal Reserve. He says too late in referring to
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Jerome Powell, too late. An American disgrace, Trump
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continued. There's never been a 2.5% cut.
8:23
There probably won't be a 2.5% cut, but just the fact that we
8:28
know Trump and and he's, let's say rather aggressive in his
8:33
approach with things is saying that the Fed should cut rates by
8:37
2.5% and then saying things about Jerome Powell.
8:41
It it's really unbelievable at this point.
8:44
Let's move on to Bank of America next.
8:46
But first I want to say thank you.
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firstmint.com. All right, let's move on to what
9:52
Bank of America is saying about gold and silver.
9:56
They have some interesting things to say about silver.
9:58
But everybody, he thinks, oh, war, war, war, that'll drive up,
10:01
you know, the wars going on, all these things happening will
10:04
drive up the price of gold and they will.
10:07
But is that what really is going to get gold to $4000?
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Let's see what Bank of America says.
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And you can decide for yourself whether or not you agree with
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them. This comes from Kitco, our
10:19
friend Neil's Middle East Chaos won't Dr. gold prices to 4000,
10:23
but this will. This is from Bank of America.
10:27
Gold prices have fallen back below 3400 an ounce is the
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conflict between Israel and Iran has not seen regional escalation
10:36
not yet. OK, this was before what
10:38
happened over the weekend. But while the precious metal
10:40
continues its broader consolidation, commodity analyst
10:44
at Bank of America say it still has a path to $4000 per oz.
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Although gold is a popular safe haven asset, historically event
10:53
induced demand has never proven to be sustainable.
10:57
And I have experienced that. Have you experienced that,
10:59
right? Like something will happen, the
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price of gold, the price of silver will shoot up just based
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upon one event. But that's not what really
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drives the price. And let's listen to what they
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say. Because when it comes to gold,
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wars are not always a clear cut bullish price driver, the
11:15
analyst said. The conflict adds, however, to
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the confluence of factors, right?
11:21
So it adds, but it adds to all the other factors that come
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together that have been supportive for the yellow metal.
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Rather than focusing on specific geopolitical events, Bank of
11:31
America analysts are monitoring the broader economic landscape,
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and gold's growing appeal is an important global monetary asset.
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This comes and somebody, and I'm going to cover this in the
11:43
future. Nassim Taleb basically said the
11:46
gold has become of the world's reserve asset.
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We're going to dive into that one in a future live stream.
11:52
But all this comes as U.S. government debt continues to
11:55
grow at unsustainable pace. Quote.
11:59
And then, and then they talk about silver.
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So hold on here, my silver friends.
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Market concerns over fiscal sustainability.
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That's that U.S. debt clock we just looked at are unlikely to
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fade regardless of the outcome of Senate negotiations.
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Rates volatility and a weaker U.S. dollar should then keep
12:17
gold supported, especially if the United States Treasury or
12:21
the Fed is ultimately forced to step in and support markets.
12:26
As such, while wars and conflicts are usually not
12:29
sustainable price drivers, we see a path forward for a gold
12:33
rally to $4000 per oz over the next 12 months.
12:37
And we're going to come back because there's a little another
12:39
blurb about silver that's very important for us to pay
12:42
attention to. But basically what they're
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saying is the US government, economic, financial, fiscal is
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the fancy word they like to use. Situation is unsustainable,
12:55
cannot continue the way that it is.
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And what's eventually going to happen is this guy, huh, this
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guy that our president calls a disgrace, Jerome Powell is going
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to have to monetize the debt. And that's just a fancy term for
13:11
this printing money, right? There's the old toilet paper
13:15
roll. Because it's going to get to a
13:17
point where the debt is gotten so huge and the interest expense
13:21
has gotten so huge, and nobody wants to buy the debt.
13:26
And when nobody wants to buy the.
13:29
I dropped upstairs, Susie. Sorry, Susie.
13:33
That's my wife, Susie. She communicates via
13:35
walkie-talkie, although she's not home right now, so she's not
13:38
turned on. Nonetheless, when nobody wants
13:41
the debt, that also makes interest rates go higher because
13:44
the government has to pay higher interest rates to induce people
13:47
to want to buy the debt. That makes the interest expense
13:51
go higher, which makes the overall debt go higher.
13:54
The deficit. It's a horrible, horrible
13:57
situation. Where in what Bank of America is
13:59
talking about is I understand it and I'd be curious what you
14:03
think about it as well, is that eventually the US government is
14:07
forced. They're given no option, either
14:10
the Fed or the Treasury to monetize the debt, to print
14:14
money. And that makes the real value of
14:16
dollars go down. Think back to the C-19 crisis
14:20
when they printed all that money.
14:22
What happened shortly thereafter?
14:24
You remember going to the grocery store?
14:27
I remember going to ALDI in the bag of potato chips, that was
14:30
$1.09 five years ago, now cost $2.50.
14:37
And that's across the board everywhere.
14:39
So that's what will happen and what that does right at the end
14:43
of the day, let's bring this on home.
14:45
Let's bring this home to silver and gold is that makes the price
14:48
of silver and gold go much higher.
14:51
Now, Bank of America also had something very interesting and
14:55
specific to say about silver. We'll get to that next.
14:58
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paul.morrisyoucanemailhimpaul@firstmininggold.com. Now let's go see what the Bank
16:14
of America people are saying about silver.
16:23
OK, so after they talk about gold and the fact that the US
16:28
government is basically up a Creek without a paddle, hold on
16:31
here, we got some funny colors going on.
16:34
OK, you're with me now. Hopefully we're still live.
16:36
We're having some issues lately, Internet related issues.
16:40
So I don't know, are we live or did we did we lose everybody?
16:44
Are you guys there? Shoot me a 5 by 5 in the
16:47
comments, please. Basement dwellers.
16:49
That's right. Hey, guys, thank you.
16:51
Did I ask you please like share, subscribe to the channel.
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17:11
Although silver this is Bank of America in green has gone
17:15
through had gone through a period of underperformance.
17:18
The market has remained in deficit.
17:21
We know that right for the last what four or five years mainly
17:24
due to constrain mine supply. Hence market participants have
17:29
long anticipated A normalization and the gold to silver ratio
17:33
which has finally occurred. I don't know if I agree with
17:35
that. I wouldn't say it's quite
17:36
normalized. Last I checked, it was still
17:38
like 90 something ounces of silver to get one ounce of gold
17:43
accompanied by an increase in assets under management at
17:47
physical backed ETF. So we are seeing some ETF
17:50
inflows in the silver market. Hold on one second, I want to
17:54
get a quick sip of coffee. We had a price objective.
18:03
OK, let me back up there. So I didn't realize that we're
18:06
having a increase in physical flows.
18:09
I'm sorry, money flows into the silver.
18:11
ETSI know there's a big controversy about whether or not
18:16
they actually own the silver, but still the fact that people
18:21
are putting money into the silver ETS is a good thing.
18:24
The other thing we need to consider is demand for physical
18:28
silver at the retail level. Not me and you, right, because
18:32
we love our silver, but just in the general investing community
18:35
that has been very subdued. When that turns around, that
18:39
could create another 100 million ounces of silver demand per
18:44
year. And I happen to believe, hold on
18:46
a minute here, hold on a minute. And this came, I happen to
18:51
believe this. I think this is the sleeper.
18:54
And I'm going to pound the table, OK.
18:55
I pounded the table two years ago about the fact that we could
18:58
get the, remember the gold bear was blindfolded, $2500 gold,
19:03
right? I, I pounded the table about
19:05
stagflation. We pounded the table and now
19:08
everybody's talking about stagflation.
19:11
You know what else we can # the table about.
19:13
And I'll give you the reason why this could be a huge driver of
19:18
silver. And this comes from Bully and
19:21
Betty, right? Jewelry.
19:25
Look at that. Bully and Betty is a great
19:27
member of our of our community. She's got an Etsy shop.
19:31
Go on there and put in Bully and Betty.
19:33
This is a silver round. I'm sorry, silver coin.
19:37
I think it's from Ghana right on a beautiful silver chain, silver
19:41
jewelry, nobody's talking about it.
19:45
We're always, we're way ahead of the curve.
19:47
So don't expect mainstream media to talk about it and for like
19:50
another year, because we are, we look around two corners and
19:54
guys, the demand according to the latest data that we've been
19:57
given for silver for jewelry is like 200 million oz per year.
20:02
Correct me if I'm wrong, e-mail me, but that's what I saw from
20:06
the Silver Institute. That's massive already.
20:09
But I'm telling you, people are going to be moving.
20:12
I love gold, don't get me wrong. Me personally, and we all have
20:16
our personal I like silver. I would personally, you know,
20:20
from a from a money perspective, yeah, give me a one ounce gold
20:23
coin, I'll take it. But from a.
20:25
Beauty perspective. And I know a thing or two about
20:28
beauty. I think silver jewelry, I, I
20:30
just, I love silver. And I think that we're going to
20:34
get a silver or a big up upturn in demand for silver jewelry, no
20:43
doubt about it. OK, That in that, that fact
20:47
alone, plus an increase in retail investment demand in
20:52
silver could create a massive, massive move in the silver
20:57
price. Not even talking about
21:00
industrial demand. I mean, you know, we beat that
21:02
one to death over the years and we know that's real.
21:05
I'm not, I'm not saying it's not there.
21:08
They said we had a, this is Bank of America.
21:10
We had a price objective of $40.00 an ounce for Q4 of 2020.
21:15
Five, $40.00 an ounce silver. We'll go do a Quicksilver price
21:19
update here in a second. So that rally arrived a bit
21:22
earlier than we had anticipated. Now imagine that those analysts
21:25
were wrong, but we're sticking with our forecast.
21:29
If trade disputes normalize and global growth accelerates,
21:32
silver should take another leg higher.
21:36
Now let's go out and just get an update here.
21:39
We've been on here for a while on the silver market.
21:43
Looks like it was still, let's see here.
21:47
That's the S&P futures down. The general market futures are
21:51
down, but let's go look at the metals.
21:54
Yep, silver's still up a hair about two cents, gold up about
21:58
2-3 dollars. So not a big move on the heels
22:02
of this event that happened last night, the bombing of Iran.
22:07
We aren't going. I'm not going to talk about that
22:09
so much because basically, right.
22:11
I mean, you know it, it's been covered ad nauseam on the other
22:15
news outlets. But what I do want to, what I,
22:18
what I am, I think surprised about, I thought my in my mind
22:23
kind of like what Bank of America said.
22:25
It was like, you know, buy the rumor, sell the news type thing.
22:28
I'd anticipated that we might get a downturn in the silver
22:32
price. Now again, right now, let's
22:34
focus on silver. The critical level that we need
22:37
to keep is $35.00 an ounce, right?
22:40
We had a, we, we broke through, we had a double top.
22:43
We broke through the third time and have gone above that $35
22:50
level. We're at 36 in the futures
22:52
markets. So that will be what we will be
22:55
definitely keeping an eye on. I don't know, what do you think,
23:00
right. When we look at all this data
23:01
going, we look at what's going on in Washington.
23:04
We have a president that's calling for a 2 1/2% rate cut,
23:07
which is never, never been heard of saying some extremely
23:12
disparaging things about the, the, the chairman of the United
23:17
States Federal Reserve get we have wars going on all over the
23:21
world. Remember this about gold and
23:23
silver. They are D5.
23:26
You know what D5 stands for decentralized finance.
23:30
It's a big word that they use in the crypto world.
23:32
So I used to hear it six months a year ago and I'd be like D5,
23:36
That's a crypto term. I don't want anything to do with
23:38
it. Gold and silver and I've often
23:41
said, you know this silver is the world's original
23:44
cryptocurrency. It was used as money before
23:47
gold. Our defy decentralized finance
23:51
mean there's no one government when silver has has has
23:55
withstood all types of wars in the past.
23:58
Silver has withstood any, any political system that's ever
24:04
occurred, right? It's decentralized.
24:06
No one government can control for any long period of time.
24:11
I know you may argue that the, you know, the United States
24:14
government manipulates the silver price, but the reality is
24:18
right. And we're seeing that with gold
24:20
now as well. They are decentralized.
24:23
The value of gold and silver is not determined in, in reality by
24:28
1 centralized authority. What it's determined, it's
24:31
democratized. It's determined by you and me
24:36
and the people of the world that want to store value outside of
24:40
the paper Fiat money system. OK, That's what that's what's
24:45
happening. That's what will continue to
24:47
happen. And look, whether we're talking
24:49
about 10 months from now, 10 years from now or 100 years from
24:52
now, that will still be the case because guess what, 1000 years
24:56
ago that was the case. That will continue to be the
25:01
case. I also want to say thank you to
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my channel sponsor Ledger. They are the cryptocurrency
25:06
hardware wallet security leader, top tier company as well as Moon
25:11
Pay. They they are the leader in
25:14
fintech technology and a highly respected company.
25:18
But I also want to say thank you to you for being here today.
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It's a big deal when you join me here in the basement.
25:24
It's fun. We have a good time.
25:26
There's so much craziness going on in the world, right.
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We're on the side of precious metals.
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That's where we know value has been stored for thousands and
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thousands of years and will continue to be in the future.
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You take care of yourself, OK? And I we'll see you next time.