Latest / SILVER / GOLD / $UFD Meme Coin Investing & Global Economics / **What To Do** IF SILVER & GOLD Have MASSIVE GAINS (or Losses) 💰 Precious Metals Price News Update
Transcript
- 0:01Silver and gold are under attack, yet we remain in a
- 0:06historic phase for the precious metals.
- 0:08We're going to talk about in this video.
- 0:10What's happening right now? Do we need to be worried?
- 0:13Most importantly, how are you doing with all of this?
- 0:17It's called volatility. It's part of any normal historic
- 0:22upward move in any asset, including gold and silver.
- 0:26But what are you going to do if you have massive gains in
- 0:31silver, gold, are precious metal mining stocks or right we get
- 0:35through a little hard period like we are right now.
- 0:38I'll, I'll give you some pointers, some things that you
- 0:40want to consider right as we go through these periods of
- 0:44volatility. Because remember, any big up
- 0:46move will be accompanied by some periods where there's down moves
- 0:50that happened in the 2001 through 2011 massive bull market
- 0:56that we had in gold, silver and the precious metal mining
- 1:00stocks. Keith Newmeyer, I've talked to
- 1:02him. It was probably 8-9 months ago.
- 1:04He said it would go up and then it would start to go down.
- 1:07And we would, we would think, oh, it's over.
- 1:09And then it would go up even higher.
- 1:11And then it would go down and we would think, oh, the bull run is
- 1:15over and then it would continue even higher.
- 1:19That's what I believe we're doing right now in this video.
- 1:22We're going to look at some charts.
- 1:23We're going to talk about how you can react to things or maybe
- 1:27not react to things that will provide you a good solid, sorry,
- 1:32a little tech issue there, a good solid foundation from where
- 1:35you can go. But before we do that, on the
- 1:37big green days, we're down here together.
- 1:39On the big red days, we're down here together.
- 1:41Thank you for joining me down here in the basement.
- 1:44It is a cold, dank basement without you basement dwellers.
- 1:47We know the big picture, the big story for gold and silver.
- 1:51Please subscribe to the channel that makes upstairs.
- 1:55Susie, my lovely wife and assistant, very happy.
- 1:58But most importantly, it allows you to come back.
- 2:00We want you to be here, share the video, subscribe, leave a
- 2:03comment, all that great stuff. Let's go out and take a look at
- 2:06what's going on right now in the markets, because it has been a
- 2:11little ugly as of late. We're going to go out and look
- 2:14at gold here in the futures market.
- 2:18This is the December gold contract.
- 2:21There we go. It's up on the screen.
- 2:23We're below 4000. OK, we'll talk about that in a
- 2:26second. We're going to look at the
- 2:27charts, but remember guys and I, what I have pulled up on the
- 2:30screen for you is the five year chart.
- 2:34This is a very, very healthy chart starting back two years
- 2:38ago, right? We didn't really start a rapid
- 2:42upward ascent until what maybe about the last two or three
- 2:46months. It's normal to have pull backs.
- 2:48Let's go out and take a look at the silver chart as well.
- 2:53Silver can be much more volatile.
- 2:56Silver and then December futures contract $46.37.
- 3:01There's a one year chart. Let's look at the five year
- 3:04chart of silver again. Look, I understand days like
- 3:08today are no fun, but when we look at this chart and again, it
- 3:12really about the same time period, just started this big
- 3:15quick upward ascent. We talked about it many times.
- 3:18Anything that shoots up at about that angle usually shoots back
- 3:23down a bit. What I think is we'll see that
- 3:25down, but then we'll have higher ups and higher ups as well.
- 3:29Please, Please remember, I'm going to give you some tips
- 3:32right now for dealing with all this because I've been in this
- 3:35sector for nearly 20 years and have experienced all kinds of
- 3:39ups and downs. And it isn't life in general
- 3:41about ups and downs. But you've got to do a couple
- 3:44things when you're looking at what's happening in the markets,
- 3:47whether whether it's silver, it's 70 or $80 per oz, which I
- 3:52believe is much more likely to occur before we ever see any
- 3:56number in the 30 ish $3938 per oz for silver.
- 4:01If gold skyrockets, a couple big things to remember.
- 4:04You don't want to get shaken out.
- 4:06Remove emotion, guys. Don't let emotions get the best
- 4:10of you, OK? When when you're looking at a
- 4:12stock of a gold mining stock, a silver mining stock, or even the
- 4:17price of gold and silver. OK, evaluate the reason, the
- 4:21fundamental reasons. If you've bought silver, if
- 4:24you've bought gold, if you bought a precious metal mining
- 4:26stock, what's the fundamental reason that you bought it?
- 4:30Is that reason still intact? If it is, remove the emotion.
- 4:34OK. The other big thing that I'll
- 4:36say that if you you've probably dollar cost averaged into a
- 4:41silver or gold position, you probably dollar cost averaged
- 4:45into a mining stock position. You may want to consider, I'm
- 4:49not a financial advisor, right? I talk about a lot of different
- 4:52companies, gold and silver, but I will say that you might want
- 4:55to consider if you are going to sell something dollar cost
- 5:00average out of your position as well.
- 5:02Anytime you do an all or nothing, and usually people do
- 5:06that and maybe you've experienced this when they're
- 5:09having some fear, some emotion, right, some greed, some fear,
- 5:13they make a big, big move, right?
- 5:15And if that big move works out, hey, Hallelujah, right?
- 5:18We're doing great. Everything's wonderful.
- 5:20But if it doesn't, it can be painful.
- 5:22What I would recommend, let's put out a scenario here.
- 5:25This me personally, let's say silver goes to $80 per hour.
- 5:29Maybe I would decide to sell 20% of my silver at $80 per oz, but
- 5:36I would hope that that was a bad decision.
- 5:39I would sell 20% at $80.00 and hope that the remaining 80%
- 5:45would continue higher and higher and higher.
- 5:48There's nothing wrong with taking some gains off the table,
- 5:51no doubt about it, right? But whether you're looking at
- 5:53the price of gold and silver shooting way up or way down,
- 5:57don't let emotion get the best of you, OK?
- 5:59Generally speaking, and and do things in an incremental
- 6:03fashion. That's just what I'm saying.
- 6:05You may want to consider because remember, I'm not a financial
- 6:08advisor. I'm just a guy who's been down
- 6:10here following these markets and learning about trading for 20
- 6:14years. Let's look at the charts and
- 6:16let's go ahead and see what Jesse Colombo the the top in my
- 6:20opinion analyst right now in the world of silver and gold, what
- 6:25he's sharing with us. And if he there he is in the
- 6:27upper left corner. It's the bubble bubble report.
- 6:31It's a sub stack that you can subscribe to.
- 6:35He's got a couple charts on the free section here.
- 6:37He did an update on what's going on in the markets and a couple
- 6:41key things we want to look at on this chart right here that he
- 6:46pointed out for us. We are right now, right?
- 6:49We have this $4000 support range and we are flirting with that
- 6:56today. OK, that could be a bad thing.
- 6:58Now on the good side is this the 200 day moving average for gold?
- 7:05We are still way, way above that.
- 7:08That is support, right? At some point, you know the
- 7:11price will come down and and retest that, but for now we are
- 7:15in very good shape. And he looks at one of these
- 7:17oscillators down here. And this was as of yesterday.
- 7:22It's similar to the RSI, the relative strength index.
- 7:25We were yesterday getting close to being oversold on gold.
- 7:30So, you know, gold is the granddaddy of the precious
- 7:34metals. We got to keep a close eye on
- 7:37what is going on. I don't want to scare you, but
- 7:39let's go look at one more chart that he had put up last night
- 7:43and why we could be in trouble here right now.
- 7:46This is more of a short, a recent price action in the gold
- 7:51price. And as you can see, there's a
- 7:52wedge. This is called a wedge pattern.
- 7:56And he says consolidation. Eventually the price will either
- 8:01break out right, which is the green arrow that he drew, or
- 8:05break out to the downside. And as of right now, I think
- 8:09this is right around the 4000 range if I have this correct.
- 8:13You know, unless things turn around today, we may have broken
- 8:16out to the downside. But my fellow basement dwellers,
- 8:19let's remember one key critical thing.
- 8:22Let's go back, let's get in The Time Machine together and go
- 8:26back one year and quickly look at what we would be talking
- 8:30about when it comes to the precious metals prices.
- 8:33So if we went back one year ago on the gold up, we're back above
- 8:374000 on the COMEX on the December future futures
- 8:41contract. If we went back to 10, here we
- 8:45go, here we go 11. All right, November 2nd of last
- 8:49year, we would have been talking about a $2700 gold price if we
- 8:55go to silver and we're at $4000 right now.
- 8:58If we go to silver and we go back one year, OK, we would be
- 9:04at, oh, let's say here we go, we did basically $30 per oz silver.
- 9:11We're at $46 silver. That's not a horrible thing.
- 9:15The other thing that's key to point out with what is going on,
- 9:19I read this last night, again, gold is the granddaddy.
- 9:22So we want to pay attention to gold.
- 9:23But here's a simple fact, the big mining companies are
- 9:27reporting their earning right now for the third quarter, July,
- 9:31August, September. The average gold price during
- 9:34the third quarter was 3500 dollars per oz.
- 9:40Silver also much lower. So again, right right now
- 9:44sitting at $4000 per oz in the first month of the fourth
- 9:48quarter, October, we're in good shape.
- 9:51We are still in good shape. The prices could correct even
- 9:54more. That's OK.
- 9:55What that what's happening as the price is correct is that the
- 9:59weak hands are getting out the scaredy cats or possibly like we
- 10:03talked about earlier, the people who are reacting to emotion.
- 10:07Look, I don't have a crystal. I believe we're in good shape
- 10:10right now. I want to share with you a quick
- 10:13segment about the sponsor of today's video, and then we'll be
- 10:17right back because we got to talk about Bloomberg.
- 10:19We also need to talk about major, major good news when it
- 10:23comes to silver, something about silver that will set your heart
- 10:28on fire if you're like me and you're very fond of silver.
- 10:30And of course, we got a secret factor going on right now that
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- 15:41DARPL, us.ca, The outlook. For silver remains incredible.
- 15:49We're going to look at some data here in one second.
- 15:51But before we do that, I want to ask you, do we really think, do
- 15:55we really think that this historic move that we've had in
- 15:59the precious metals, is it going to, is it going to go away
- 16:02overnight? Is it going to end?
- 16:04The big reason why I asked that question is because when we take
- 16:08a step back and look at the fundamental reasons that drove
- 16:11the gold price higher, we could talk for the next hour about
- 16:15those, the national debt, world central banks, everything else
- 16:19happening in the world geopolitically.
- 16:22And when we look at the fundamental reasons that have
- 16:24driven the silver rally to where it is today, nothing has
- 16:29changed, All right? What I think is we're
- 16:31experiencing a little pullback in silver and gold and the
- 16:35miners, and that a year from now, I can only imagine when
- 16:38we're sitting down here, the prices for gold and silver that
- 16:42we will be talking about. Let's dig into the gold and
- 16:45silver ratio because we have an interesting perspective that
- 16:48compares the silver price to the gold price and why we could be
- 16:53in for a real slingshot move with silver.
- 16:56Let's go out to metals and miners.
- 16:58I have a couple things from them today.
- 17:00They're putting out some great, great content.
- 17:02Again, this is a sub stack metals and miners in the
- 17:07headline here, right? The silver math, what the
- 17:11experts are not focused on and why 84 to 1 means the silver run
- 17:17is just getting started. Again, this is a sub stack that
- 17:20you can subscribe to. Then they point out that while
- 17:23others debate chart patterns and momentum indicators, the most
- 17:27reliable metric in precious metals history in precious
- 17:31metals, remember have like a four or 5000 year history is
- 17:35screaming that silver's explosive rally is just the warm
- 17:40up act. And what we're looking at here
- 17:43guys is the gold to silver ratio.
- 17:46And I thought this chart really summed it up nicely.
- 17:49This up here, the green line, I'll draw an arrow to it so you
- 17:54can see it indicates A-100 gold to silver ratio, meaning it
- 17:58takes 100 ounces of silver to get one ounce of gold.
- 18:01We were talking about this not too long ago down here in the
- 18:04basement. It was astounding.
- 18:06Currently the ratio is sitting, oh, right in this range.
- 18:11Let's say I'll draw it on the screen for you at about 84.
- 18:16So it takes about 84 ounces of silver to get one ounce of gold.
- 18:20This red line down here indicates a gold to silver ratio
- 18:25of 15. Look, I think it's easy to see,
- 18:29right? This is when silver was
- 18:30historically undervalued not very long ago when we had a gold
- 18:34to silver ratio at 100. We've come down.
- 18:37But look, when we come down in previous periods, even more
- 18:41previous recent periods, what I'm seeing right is that on
- 18:46average, let's say we get down to this level right here, that
- 18:50brings us over here to a 50 to 1 gold to silver ratio guy.
- 18:57Can we see that? I mean, let me let me do this in
- 19:00the right color for you. Let's use we use kind of the
- 19:05color they're using their a black.
- 19:07Could you see this line coming down to a 50 to 1 gold to silver
- 19:13ratio? That alone would put us at $80
- 19:17per oz silver, which is not out of the question.
- 19:19And it could go much lower because get a load of this
- 19:21couple paragraphs as the two previous bull market highs for
- 19:25silver in 1980 and 2011, the ratio dropped to lows of about
- 19:3115 to 1 and 32 to 1 respectively.
- 19:36At 32 to one, we would have what a, a, a silver price of $130.00
- 19:43per oz right now. It was previously set at 15 to
- 19:47one in 1972. That was before they took us off
- 19:50the gold standard and took silver out of the money.
- 19:53So that so that range of 15 to 1 and 32 to one represents silver
- 19:58getting overvalued relative to gold.
- 20:01And this is what's interesting, the ratio that never lies, the
- 20:04gold to silver ratio, is the most honest indicator in
- 20:09precious metals markets. Unlike price charts, they can be
- 20:12manipulated by paper derivatives or technical indicators.
- 20:16They can give false signals. The ratio simply tells you how
- 20:20many ounces of silver it takes to buy one ounce of gold.
- 20:24It's pure math, and mathematics don't lie.
- 20:29We've said that many times down here in the basement.
- 20:31Mathematics shows no forgiveness on the altar of truth.
- 20:35They dig silver out of the ground at only a 7 to 1 ratio.
- 20:41I mean, a lot of people argue that the actual ratio should be
- 20:457 to 1 because then a lot of that silver, there's 7 ounces of
- 20:49silver that are mined and created for each one ounce of
- 20:52gold every year. That the price of silver should
- 20:55be 1/7 that of an ounce of gold. I ask you, what is 1/7 of 4000?
- 21:01I think it's something around like $570 per oz.
- 21:07But what's even crazier when you consider that is the fact that
- 21:11that one ounce of gold and 7 ounces of silver here, I'll use
- 21:17this right, this beautiful folds of Honor silver bar from first
- 21:21met right, That one ounce of gold, which I don't have that
- 21:25compared to 7 ounces of silver. Most of this is consumed by
- 21:30industry. You know, that whole that whole
- 21:32rule. So keep we we could be in for a
- 21:35very sharp move in the silver price, especially when gold gets
- 21:40back on track, right? And how do we what, what, what
- 21:44indication do we have? We've got what JP Morgan CEO
- 21:48Jamie Dimon mentioning $10,000 gold recently, right with the,
- 21:52all the big banks, Goldman Sachs, Bank of America coming
- 21:56out with gold predictions for the end of this year and the end
- 22:00of next year that are significantly higher than where
- 22:02we are. So remember, if we get a higher
- 22:06gold price and we get a lower gold to silver ratio like we
- 22:11just looked at, that's what's called a slingshot move in the
- 22:15metals, OK? In silver, it could really,
- 22:19really right be a rip your eyes out type rally.
- 22:23That's when you want to remember what we talked about earlier in
- 22:25this live stream. Be prepared, be prepared
- 22:29emotionally, be prepared. Don't you know my
- 22:31recommendation? You may want to consider not
- 22:34ever doing everything in an all or nothing 100% fashion.
- 22:38But what is Bloomberg saying? Bloomberg, right?
- 22:42The world's biggest financial news outlet, the most respected.
- 22:46Let's see what they're saying about gold and how concerned we
- 22:51really need to be. You get the right screen up for
- 22:54you here. There we go.
- 22:56Our friends at Bloomberg say a gold crash that everyone saw
- 23:01coming. Lures, bargain hunters
- 23:03worldwide. This is from Bloomberg.
- 23:07The reason I pulled this up is because, yes, they're
- 23:09recognized. They're calling it a crash,
- 23:11which I don't really agree that it's a crash.
- 23:13I don't know how you feel about that.
- 23:15But they're also pointing out that it's not putting a dent in
- 23:20demand for gold around the world.
- 23:23It'll be interesting to see, right, the stories that we get
- 23:25in the coming days when it comes to physical silver and gold in
- 23:29Asia, in Russia, in India, how people are reacting to this
- 23:35downdraft. I have a feeling that what we're
- 23:38going to see are stories of people growing.
- 23:41Next story here came from oh another one from metals and
- 23:45miners but a story they're commenting commenting on from
- 23:49Bloomberg dip or a turning point why global investors are buying
- 23:54gold's 5 Sigma crash. This is the five Sigma.
- 23:58We you need to understand what that means.
- 24:00I'm going to get to that in one second.
- 24:02But it says, as a new Bloomberg report confirms in purple
- 24:06sophisticated investors. And then hold on.
- 24:09I got one more report for you with the secret factor that
- 24:14nobody's talking about. But Bloomberg reports that
- 24:18sophisticated investors around the world are not just ignoring
- 24:22the noise, OK, the downdraft in the metals prices.
- 24:26They are actively buying the dip, seeing it as a golden
- 24:30discount opportunity, a golden discount opportunity.
- 24:34So here's a chart that Bloomberg puts out a dip or a turning
- 24:38point. Many traders expect gold's multi
- 24:41year bull market to continue. Again, that's from Bloomberg.
- 24:45Let's just read this. I'll speed read.
- 24:47This week the gold market was rocked by A5 plus Sigma event.
- 24:52This is what you need to understand.
- 24:55It was a once in a 63 year price drop that saw the metal plunge
- 25:01over 6% in a single day. We will go do an update on the
- 25:04price here in one second because if we had another move, if we're
- 25:07having another move that big, it's probably like a one in a
- 25:11million year chance. The mainstream media, as
- 25:14expected, went into a frenzy with headlines questioning the
- 25:17bull market and suggesting a major turning point had been
- 25:21reached. But in blue, as a Bloomberg
- 25:24report confirms, sophisticated investors around the world are
- 25:28not just ignoring the noise. This is crazy interesting.
- 25:31Wait till you see the next bit of info I have for you.
- 25:34They're actively buying the debt and seeing it as a golden
- 25:38discount opportunity. Now let's go to this, the secret
- 25:43weapon. And again, this one comes from
- 25:46metals and miners. Wait till you see this chart.
- 25:49The growing less than 3% problem.
- 25:52Why institutional gold under allocation creates an upcoming
- 25:58multi trillion dollar gold buying wave in red.
- 26:03The institutional reallocation wave really hasn't even begun,
- 26:08and when it does, the price implications will be staggering.
- 26:12We're going to go look at the chart here, but I'm going to
- 26:14explain to you why this is so important.
- 26:17Big money, sophisticated money. Like the previous Bloomberg
- 26:21article said, they are right. They are coming in and buying,
- 26:25but they got a long way to go, a long way to go.
- 26:29Know that song? We got a long way to go and a
- 26:32short time to get there. We're going to do well.
- 26:35That's what that's what they're singing in the office.
- 26:38It says, because look at this, it says is it time to reconsider
- 26:42gold exposure, gold portfolio share by type of investor as a
- 26:47percentage, hedge funds are the largest, right?
- 26:50And they're known as being the smartest money, but they're only
- 26:53at 3%. Family offices the second
- 26:56smartest 2.2%, the average institutional investor less than
- 27:012%, insurance industry 1.7%, endowments 1.5% and pension
- 27:08funds, generally known as being the not smartest smart
- 27:12institutional money are at 1.3%. What this means guys, what this
- 27:17means and they and they, they say it right here.
- 27:20It's the chart from Numera Analytics reveals a stunning
- 27:23reality. Institutional investors are
- 27:25wildly under allocated to gold with even hedge funds, the most
- 27:30sophisticated holding 3% or less in gold exposure.
- 27:34I might argue that the central banks are the most
- 27:37sophisticated. They have all the inside
- 27:39information and we know they are buying gold hand over fist.
- 27:42But why this is important in yellow in light of Morgan
- 27:45Stanley's revolutionary 602020 portfolio allocation with 20%
- 27:51gold allocation, right? That was the big news story week
- 27:55before last out of Morgan Stanley.
- 27:57The massive debt pile growing exponentially from here.
- 28:00Foreign nation slowly abandoning U.S.
- 28:02Treasuries for gold, The largest central bank gold purchasing
- 28:05cycle in generation and bricks building a new gold settlement
- 28:09system to circumvent Western bank control.
- 28:12It's clear that institutional investors controlling trillions
- 28:16and global wealth still have enormous gold buying ahead.
- 28:20All right, that's the good news. That's the secret weapon.
- 28:24And that is true with silver as well and will impact the silver
- 28:28market. The big money hasn't even begun.
- 28:32And when it does begin, it will be like trying to drain Hoover
- 28:37Dam with a garden hose, period. There's no other way to look at
- 28:41it. There's not enough gold out
- 28:42there. There's not enough silver out
- 28:45there. And when we factor in with
- 28:46silver, the fact that the gold to silver ratio could drop to
- 28:505040, Oh my gosh, even 30, right?
- 28:53Could you imagine? I don't personally, I wouldn't
- 28:56even want to trade 30 ounces of silver for an ounce of gold.
- 28:59Maybe it's 7 to 1 like it comes out of the ground.
- 29:02I might consider it. We've got big, big, big things
- 29:05ahead. This is a historic run in the
- 29:08precious metals and I believe we're in for a a decade or more
- 29:13of consistently higher prices. Pull backs are normal.
- 29:18Pull backs are no fun, right? We prefer to be down here
- 29:21talking on green days. We had a streak together, my
- 29:24fellow basement dwellers. Oh, and by the way, guys, please
- 29:26subscribe to the channel that does make me and upstairs Susie
- 29:30happy and we want you to come back.
- 29:32But we had a string of days where it was everyday I was
- 29:34doing a live stream like gold's up, gold's up.
- 29:37It's normal to have pull backs during any healthy trend.
- 29:42It allows the price to consolidate.
- 29:44It builds a platform from which the price can go even higher.
- 29:48Hey, thank you for joining me today.
- 29:50I appreciate you. I want you to come back to the
- 29:52basement, take care of yourself, and I'll see you.
- 29:55Yes, you, next time.