Latest / SILVER / GOLD / $UFD Meme Coin Investing & Global Economics / **Precious Metals** Are YOU Aware THIS Is Happening -- (New Paradigm)

Transcript

**Precious Metals** Are YOU Aware THIS Is Happening -- (New Paradigm) · SILVER / GOLD / $UFD Meme Coin Investing & Global Economics

0:00
I think people underestimate that the the, the ramification
0:03
of the speed of communication and and the effect upon people's
0:06
psyches. And I think what we play with,
0:09
we play a lot with fire in terms of confidence and we don't
0:12
necessarily know where that threshold is, that tipping point
0:14
in confidence and the fact that communication speaks so quickly
0:18
and the point of confidence can happen much faster I think than
0:21
people realize today. So that that is concerning to
0:25
me. I think we underestimate damage,
0:28
the damage that is done globally with the speed of
0:30
communications. Is the West losing control of
0:37
the silver price of the gold price?
0:40
We're going to talk about that and much more with today's
0:43
guest, James Anderson from SD Bullion.
0:46
James, welcome to Ron's Basement.
0:48
Brian, thanks for having me on. It's a pleasure to meet you and
0:51
to be on your channel. Yeah.
0:53
Well, you you follow the silver and gold market very closely
0:57
working for SD bullion and when you look at what's going on in
1:01
the world, is it just me or is the does it feel like the West
1:05
is starting to lose control of the silver price, possibly the
1:09
gold price as well? Yeah, you you really have to
1:13
define losing control, right. And that's a that's a that's a
1:16
pretty ambiguous term and a lot of people like to tout that to
1:20
get clicks and to get in, you know, to get people interested
1:22
and to get people excited. It's definitely turned the worms
1:26
turned. It's been obviously turned
1:28
because gold had broken out beyond the 2000 level and now
1:32
2000 is not resistance, it's becomes long term support and
1:36
this has been going on in building the consolidation over
1:39
the last four, four years roughly.
1:42
It's obviously broken out on gold.
1:43
Gold typically leads and silver generally follows and there's
1:46
been a lot of excitement lately because silver's showing of late
1:49
that it's starting to follow gold, right.
1:51
And so it's understandable that people are super excited.
1:54
I think the idea that that China is, is behind it, India's behind
1:58
it. Yeah, physically they are.
2:00
They're the, they're the, they're the Davids in in, in the
2:03
system. I mean, not the, they're the
2:05
Davids in the derivative system, but they're the Goliaths in the
2:08
physical system, right. And so you have this this pull
2:11
and tug between the two, right. Whereas the spot price generally
2:15
in general is found by derivatives.
2:17
But there are times where physical has to be gotten and
2:20
the only way to get physical is for spot price to go up, right.
2:23
And and so that's where we're at.
2:24
We're at this point now where the push and pull that's been
2:27
going on for the last 3-4 years and consolidating prices is
2:30
starting to go to the upside and that's that's that's yanking the
2:34
the spot price is higher. And so when I look at the
2:37
derivatives notionally in trading, I I think of it more on
2:40
a historical level on a on a basis of what has happened in
2:43
prior financial history in in terms of derivative markets,
2:47
especially when there was outsize derivatives trading
2:50
around a fixed physical supply. And that history is really,
2:53
really interesting and long. I mean there's there's some
2:56
interesting things that have occurred but but in the end I
3:00
think people underestimate the fact that they think that
3:02
derivatives with high leverage are used to suppress gold and
3:06
silver values. And that has been true pretty
3:08
much since the 1980s through the twenty 20s that has been true in
3:12
general. But there are times where that
3:14
stuff where it blows back into faces and spot prices climb
3:19
walls because short squeezes occur.
3:21
And there have been times in history where short speeches
3:23
occur. And that's when you get
3:24
exponential prices. And a lot of times people bring
3:27
up, you know, oh, the exponential price.
3:28
In 1980, that was a bubble. Well, it depends on how you
3:31
define a bubble. There was so much Fiat currency
3:33
out there that that was a bubble and the gold was basically
3:35
calling it into account. And I think we're, we're walking
3:38
into another era where that's going to occur, but not just in
3:40
the Western world like 1980. This one's happening globally.
3:45
Yeah, the the world is changing. I know.
3:48
I like to to reference the, you know, the meetings that happened
3:52
between Chinese President Xi and Vladimir Putin when when they
3:56
were leaving each other and they both agreed that the world is
3:59
changing like no other time in history.
4:03
And I want to get your perspective on this.
4:05
It, it feels like, you know, due to, let's say, poor fiscal and
4:10
monetary decisions by our leaders in Washington, excuse
4:15
me, that the United States finds itself in a position right now
4:20
with all the debt and the growing deficits that that we
4:23
need the world to need our dollars more than ever.
4:28
But it's all happening at a time when the rest of the world, the
4:32
bricks and the bricks plus countries are telling us that
4:36
they don't want our dollars, that it's it's kind of a
4:39
confluence of events that and and and what we're seeing by
4:43
their actions is that what they want is gold.
4:48
And and I'm hearing even out of China that they're stockpiling
4:51
large amounts of silver and copper as well, I mean.
4:54
Are we, are, are we? Yeah, yeah, we almost forgot.
4:58
We're gonna talk about India, James 'cause I, and you're the
5:01
guy that to me broke one of the people that broke that story.
5:04
But are we at this point where, you know, I I guess we we all
5:08
suffer from normalcy bias or recency bias where we think well
5:13
it, you know, the big national debt and the fact that you know
5:16
the the D dollarization hasn't been a problem yet, but do you
5:21
think it will become a big problem?
5:23
Yeah, it's going to become a problem so so badly that that
5:26
the, that the Fiat powers that be in the United States are
5:29
going to have to change policy and the way that banking's done
5:31
and that's already occurring. I mean you start to see
5:34
announcements in the last few weeks.
5:37
The SWIFT system, which is basically the underpinning of
5:40
all massive amounts of payment system and basically the entire
5:45
world's payment system. The SWIFT system announced we're
5:47
going to have CBDC system in 12 to 24 months.
5:50
You had last week BIS coming out with, I'm talking about big
5:54
central banks, not the eastern one.
5:56
I'm talking Federal Reserve Bank of England, the Bank of France
6:00
which is essentially the European EU bank.
6:03
All the major banks in the Western world are now saying,
6:05
yeah, we're gonna, we're gonna start our little sandbox here in
6:07
the CBDC world, which is basically a code for yeah, we're
6:10
coming as well. I mean it, you know people like
6:12
to say it's experimental. It says it in the, you know, the
6:15
press release, but experimental means seeing a couple years and
6:18
it'll be real. So yeah, they're they know the
6:21
system is changing and there's going to be major implications
6:24
for that. You have a bond bear market that
6:26
you're staring at for the next decade or two.
6:28
What, what what are we going to do to finance this, this extreme
6:31
amount of debt that we're piling upon as well as the unfunded
6:35
liability notional that's out there, which the US Treasury
6:38
just last this, this just early this year at the end of 2023.
6:43
Danny Yellen signed the report. The Social Security, Medicare
6:47
and Medicaid net present value. Looking out 75 years, the net
6:50
present value today is 175.3 trillion.
6:55
OK, so that that's not not just the 35 trillion in hard U.S.
7:00
debt that's already sitting there.
7:01
I'm talking about another 175 that the Treasury admits is out
7:05
there in the lifetime of young, young children and babies in the
7:08
United States. Right.
7:09
So, you know, you could put your hand up in the wind and think,
7:13
are those kids going to put up with that?
7:14
Are they going to like, what kind of political trouble are we
7:17
going to be running into the next few decades as people fight
7:20
over this? Because a lot of people are
7:21
going to say, hold on now, I don't want to buy the US debt
7:25
because they're mandating us to do so because that's essentially
7:28
what's going to happen. They're going to start
7:29
nationalizing the banks, requiring full, you know, banks
7:33
to be buying all this, all these debt, debt issuances as well.
7:37
And so they'll create a system probably where they'll your
7:39
interest rates will get you maybe halfway like you know,
7:44
another repression, financial repression where great, your
7:46
interest rate is 10% but the true price inflation is 20 every
7:49
year on year on year on year on year on year.
7:52
You know, that's that's basically the system that
7:54
they're trying to create. Yeah.
7:56
First, Mining Gold is a development company advancing
7:59
two of the largest gold projects in Canada, Spring Pole in
8:03
Ontario and Duparque located in Quebec.
8:07
Each already has 5 million ounces of gold reserves, but
8:11
exploration initiatives are underway at both projects to
8:15
find even more gold. First mining is well financed,
8:20
has zero debt and owns an interest in four additional
8:23
Canadian gold development projects.
8:26
You know and I and I and I like to point out I'm not an
8:29
economist. I have a degree in accounting
8:31
and and I don't claim to to have any any any extraordinary
8:35
insight into this. But you know we hear so much
8:38
about oh the Fed's got a lower rates the Fed especially in the
8:41
silver and gold community all this talk well the gold and
8:44
silver are doing well because the Fed's lowering rates and and
8:47
I I kind of argue that the number one the Fed doesn't have
8:50
to lower rates for the silver and gold real value of silver
8:55
and gold to do well that eventually it it based upon
9:00
almost exactly what you just said eventually what's really
9:04
gonna drive the price and I think over history that that's
9:07
been the case as well. What's really gonna drive the
9:09
prices? Inflation because of, you know,
9:12
because of a devalued dollar. Because there's no other way to
9:15
fix what's going on outside of in some form, devaluing the
9:21
dollar. And when that inflation really
9:25
kicks in and and people start to wake up.
9:28
I mean, people in the West aren't haven't woken up yet.
9:32
I mean you have. I have and and I think probably
9:34
our viewer who's with us now have but but you know, 9597% of
9:40
the people don't really realize what's going on and when they
9:43
do, it could be too late. So what you're describing is
9:45
confidence eroding as time goes along, right.
9:49
And and and we're we're talking about where where's that tipping
9:51
point? That tipping point is something
9:53
that's very concerning and that's essentially why they want
9:56
to create a system where they can clamp down things, right,
9:58
Because that tipping point is coming and they're going to try
10:01
and use technology to help clamp down the velocity of currency
10:04
and the turnover currency so it doesn't get out of control and
10:07
hyperinflate their face. And I'm sure that's exactly what
10:10
they want. And they probably also have a
10:11
button for hyperinflation as well if they need to just reset
10:14
the table, you know, I mean like you could argue that they may
10:18
induce it just to reset the table, right.
10:21
That's, that's how silly and crazy and perverse this entire
10:23
thing is getting. Yeah, people in the Western
10:26
world are are still clueless. They think the price inflation
10:28
was big. That's nothing compared to
10:30
what's probably going to come in terms of some of the the the,
10:33
the price inflation that we're going to see in the future.
10:37
You know, you have Larry Summers coming out and admitting the
10:40
fact that in 2020, you know the, the if we had used the old
10:43
metric for CPI, we're probably running, you know, low 20% price
10:47
inflation year on year and that's probably true.
10:49
That's probably what we were looking at.
10:51
Anybody knows that in the United States, but I think most people
10:54
they understand that, but they don't understand that's going to
10:57
become the norm. And in in the future I think, I
11:00
think that's going to become much more the norm because like
11:03
we've discussed there's just too much debt, there's too many
11:05
unfunded liabilities. The only way to pay that and and
11:08
to continue to choose the economy which is the consumer
11:11
economy is to keep nominal price up, keep nominal prices high,
11:14
keep everyone in this dream and thinking that the old times will
11:17
come back, we just cut rates etcetera, etcetera.
11:20
But no, we're getting the sort of change in the system, a
11:23
change in the power structure of the world.
11:25
So, So this is a different game. This is not 1980 with Paul
11:29
Volcker and and low debt loads and I can Jack up interest rates
11:33
for a year or two and we'll get through it and then we'll see
11:34
how financialize the world and jam, you know treasuries around
11:37
the world and get everybody hooked on our dollar.
11:40
That's something undone that's unraveling as we discussed.
11:42
So in that unraveling, there's going to be a lot of change.
11:45
And yeah, of course we're we're in for times ahead that are
11:48
going to be turbulent that we've never seen.
11:50
No, no. And you you, you mentioned
11:52
something earlier about confidence.
11:55
But what really gets me about the Fed in Jerome Powell is when
11:59
did the Fed stop becoming a bank and become more of a public
12:04
relations firm? And to me, you know, I say that
12:07
somewhat facetiously, but you know the Fed, you know, with
12:12
their meetings and then all the speeches that the governors
12:15
give, it feels like to me they've become more of a of a
12:18
public relations firm. And and and and I think that's
12:22
maybe symbolic of the fact that that what they're trying to
12:27
support is, is, is nothing Fiat paper, whatever you want to call
12:31
it, paper money. Yeah, you're describing 1/2 of
12:35
the of the of the absurdity of it.
12:36
The other half of the absurdity of it is the New York Federal
12:39
Reserve. What they're up to.
12:41
I mean, they're basically juggling, I don't know how many
12:44
balloons in there, right? I mean, every day they're just
12:46
intervening in every damn market you could ever think of.
12:49
They even have a trading desk over in the sea Bod over in
12:52
Chicago, probably doing stuff in in in the commodities markets as
12:56
well. So we don't know exactly like
12:59
you would have to have a full time position and and be
13:01
studying that to even have a guest.
13:03
As to all the things they're jamming their, their fingers
13:05
into, I mean people are employed in the New York Federal Reserve.
13:08
It's probably thousands of people involved in everyday
13:11
management of the system to keep it you know, running as smoothly
13:14
as possible, right. So yeah, the combination of of
13:17
whispers talking about all types of things and I don't know how
13:20
many ways out of their mouths they're talking in five
13:23
different directions. You hear one fed head say
13:26
something this the day that contradicts the other.
13:28
I mean, it's just, it's it's absurd, right.
13:30
So So yeah, I mean that's that's what you're living in.
13:33
You're living in a system. It's basically where it's like
13:35
nothing makes sense. You know it doesn't make much
13:38
sense. It's like where are we going,
13:40
'cause I know there's a wall ahead we're gonna run into a
13:42
wall at some point I could see the math on on my calculator.
13:45
This takes no sense. Right.
13:47
So yeah you're you're left in this position of being in the
13:50
middle of the fall and and it's and the the train is going
13:53
faster and faster and it's being and it's becoming more absurd
13:57
and you just, you know it's not it's not settling.
14:00
It's it's definitely unsettling situation that we're in.
14:03
No, no, You guys like you and I, you know, we're in a stressful
14:06
world. We're like digging in and and
14:09
and and discovering what's really going on.
14:12
I mean, you know, most people, most of my neighbors are
14:15
wonderful people. I like them all.
14:18
But they're asleep, right? They have no, they have no clue
14:21
as to what's going on. You used a great word to
14:24
describe the system a a word that I, you know, I guess I
14:28
think it's great, 'cause I use it often as well perverted.
14:31
It's the best word I can come up with to describe kind of how our
14:36
financial monetary mostly system fiscal as well but monetary it's
14:42
become very perverted and escalated that now you know as
14:47
you described as we're getting further and deeper and deeper in
14:51
the whole right as the as the doom spiral or debt spiral
14:55
whatever you want to call it begins to increase right.
14:59
I mean if you you know is the interest payments everything
15:01
just starts to feed on itself that it's become very escalated
15:05
that in that in the things are HAP do you do you agree that
15:09
events will continue to happen on a more frequent basis as we
15:16
get toward you know the wall that you've that you described.
15:20
Yeah, I I think if you think the 2020 to 24 era was crazy, my
15:26
suggestion is the 24 to 2030 era is going to be every bit of us,
15:31
right? And suggest that you you got to
15:34
strap in because it's going to get crazier and crazier and just
15:37
the fact that the way that technology and communication
15:39
happens these days, you get to watch it in real time all over
15:43
the world, right. And that's that's the other part
15:46
of it that I don't think people, I think people underestimate
15:48
that the the the ramification of the speed of communication and
15:52
and the effect upon people's psyches.
15:54
And I think when we play with, we play a lot with fire in terms
15:58
of confidence and we don't necessarily know where that
16:00
threshold is, that tipping point in confidence and the fact that
16:04
communication speaks so quickly, the point of confidence can
16:07
happen much faster I think than people realize today.
16:11
So that that is concerning to me.
16:12
I think we underestimate the damage, the damage that is done
16:17
globally with the speed of communications.
16:19
Yeah. Wow.
16:20
I appreciate you bringing that up because while I may have
16:23
known that the the way that you communicated it really drove at
16:27
home, right, We can communicate so much more quickly.
16:30
I mean even if we look back just a year ago at the, you know, the
16:33
little quote UN quote banking crisis which was what three out
16:37
of the four biggest banks in the history of the country that
16:40
failed that that information spread very quickly.
16:44
And I know it, it presented problems for the banking
16:47
industry because, you know, bank runs 30 years ago or 100 years
16:53
ago, everybody had to go line up at the bank, right, and ask for
16:57
their money. In 2024, a bank run could could,
17:01
you know, literally happen in an hour because of technology.
17:06
Yeah, right. I mean, we could.
17:08
I mean you and I in the time that we spent here could have
17:10
both drained our bank accounts and bought, you know, I'm sure
17:14
you know hundreds of monster boxes of silver Eagles, right.
17:18
But that same thing, James, how do you think that that that same
17:22
concept could apply to the silver in gold market Because we
17:27
did see that a year ago, right. That when when this banking
17:30
crisis hit and and and all suddenly everyone became
17:33
interested in silver and I guess gold as well, that we saw a rush
17:38
of buyers like same thing. If somebody wants to buy silver
17:42
and gold in today's day and age they don't have to drive to the
17:46
local coin shop and wait in that line that we heard about.
17:50
They can couple clicks of the mouse like you just said that it
17:52
can all happen so much more. They can go to SD bullion, they
17:56
can go to Pimba, whoever you know and and and that the
17:59
inventory can get cleared out rather quickly.
18:02
I think people take for granted the, the size of the inventory
18:05
that's available for delivery at any moment in time in the North
18:09
American markets. Yeah, that that is a small layer
18:14
of the actual amount of physical gold and silver that people are
18:17
keeping in deep storage, you know, And in terms of they're
18:19
not selling it, that it's not for offer, it's mum, right.
18:23
And so you're talking about a very thin layer that presents
18:27
itself every day that people assume is going to be there when
18:30
the time hits. And it's, oh, I'm scared.
18:33
And I should take this currency out of this bank account and I
18:35
should put it in bullion. Right?
18:37
When that happens on a decent scale, on a decent sized scale,
18:40
Bullion's on obtaining Bullion's on Obtainium, then all of a
18:43
sudden you get ridiculous premiums, massive delivery
18:46
delays, anything in size. Good luck, You know, in terms of
18:51
getting it so that that's going to come again, it's inevitable.
18:55
You've seen, you know, the 2020-2021, 2022 era.
19:00
Those are previews. The 2008 financial crisis.
19:02
Those are previews. I think ultimately we're we're
19:05
moving into a situation where there's going to be an era or a
19:07
time frame where bullion premiums are going to make.
19:10
Make those errors look silly. And you're going to have a
19:13
situation where you won't be able to get bullion at any
19:15
reasonable price. You're going to see the world
19:18
get forced into derivatives and into risky mining bets because
19:22
there's no way you can get Boeing because it's it's
19:24
basically unobtainium and very difficult to find.
19:27
Or if you can get it, it's going to be very expensive.
19:29
If you're looking to buy gold, silver, or platinum, do yourself
19:33
a favor and check out Pimbex, the online precious metals
19:37
bullion dealer and sponsor of Ron's Basement.
19:41
I was a happy customer before they offered to support the
19:44
channel. You'll find they have the best
19:46
prices, quality and service. I think Pembex is best and you
19:51
will too. And be sure to tell him that
19:54
you're from Ron's basement. What I've been noticing with the
19:57
silver and gold markets, the silver and gold price that a lot
20:02
of long standing relationships, things that we've been taught
20:06
right or things that we've heard over and over for the last few
20:09
years in particular. That these relationships are
20:12
starting to break down and it it feels like to me that silver and
20:17
gold and I can't think of another way to say this are
20:19
calling BS on a lot of these long term relationships.
20:23
Things like this idea that the dollar right the DX wide index
20:28
has to go down for silver and gold to go up.
20:31
Well, the DXY index has been holding pretty steady around
20:35
104105 last I checked and I think we it's safe to say that
20:38
the gold and silver price have been going up. the Fed has to
20:42
lower rates for silver and gold to go up.
20:45
Even on Friday we had this unbelievable James, I'm sure
20:49
that you're like me you know you're just in awe of the
20:52
Bidenomics and how great I'm being facetious, how great this
20:56
economy is 300,000 jobs. Six months or a year ago that
21:01
type of news would have destroyed the silver and gold
21:04
price. Yet we we, we we got an opposite
21:07
reaction. Our our silver and gold in a new
21:11
paradigm, for lack of a better term.
21:14
And are they? This has always been the
21:16
paradigm. If you go back in time and you
21:17
look at some of the people who are there in the 60s warning
21:21
this was going to happen and it played out in the 70s and 80s
21:23
like John Exter. If you've ever looked at his
21:26
inverse pyramid that he I believe in 1968 and there's been
21:30
people who made like a modern era looked inversion of that.
21:33
I did that personally for SD bullion in the gold and silver
21:36
guy that we created on on our website.
21:38
But but basically it's an inverse pyramid of the way
21:41
finance works and when there's a spillover event where there's
21:44
real fear where everyone essentially saying I want my
21:46
money back, I want my investments back, I want my
21:48
capital back, it all folds down. Inverse pyramid at the very
21:52
bottom of that is bullion and 2nd to that at the moment given
21:55
the system that we're in it's it's dollar dot, it dominated no
21:59
doubt travel around the world. The dollar still dominates and
22:02
it's still relatively strong. We're pretty lucky at that fact.
22:05
Those two strengthen when we go into those types of events.
22:08
And the bond market is telling you, you know with rates going
22:11
up that hey, you know, rates aren't high enough and and
22:15
obviously there's not enough buyers.
22:16
And we're moving into a secular bear market for bonds.
22:19
So much so that we've covered in this interview that they're
22:21
going to force you to buy the bonds.
22:23
That's essentially what they're going to be having.
22:24
That's what's going to happen. They're going to start mandating
22:26
you and banks to buy the bonds, right.
22:28
And that's going to come at some point.
22:30
It's inevitable just given the math.
22:32
So yeah, we have a situation now where this idea that you know
22:35
the DXY which way it moves. Yeah there is correlation but
22:39
there's times where they both go up.
22:40
Gold can go up and the XY can go up and silver can go up as
22:43
tagging along and following gold.
22:45
You can have a situation you know obviously gold is going to
22:49
the the relatively relativity between like how they how they
22:52
perform gold versus silver that's almost like a 99%
22:56
correlation. I mean if gold is going to lead
22:58
and get ahead for a little bit there's a be a lag and now
23:01
silver starts to follow up and we're sitting still at a silly
23:04
gold, silver ratio of what 84. I think we started the 2008 you
23:09
know bail out, you know QE fiasco around 89 and that shot
23:14
down at 34 within about 2 1/2 years.
23:17
So 84 is not a bad spot to be. But remember we had that silly
23:20
out, that crazy thing that happened in COVID at 1:20 and
23:24
generally commodity markets when you have something go crazy to
23:26
the upside like a 120 GSR you're going to have something
23:29
absolutely crazy on the other side that's going to do
23:31
something nuttier. So that idea that 34 and 2011,
23:35
that low was the lowest you're going to see in your lifetime is
23:38
not true. But I think to me conservatively
23:40
you can see a GSR before this mania goes, goes absolutely
23:44
crazy. I mean I would think it would
23:46
peak at the 20s, maybe even the teens if things get really
23:50
nutty, right. So, but this is a long term
23:53
thing. This is going to be we're
23:55
talking about through this decade, even it can go into the
23:57
twenty 30s. You know, we're talking about
24:01
not tomorrow, not next year. Come on James, we wanted it
24:05
tomorrow. Anyone buying and holding
24:09
bullion I think knows this. Anyone savvy who's been in the
24:12
market long enough this is a long game play right?
24:15
And so that I just want to make people understand that this is
24:18
not. I know it's exciting that spots
24:19
moving around. It feels like the warmth turn in
24:21
terms of day-to-day performance and month to month performance
24:24
and I think that is true. But looking out is what I really
24:28
try to focus on, because what I want is people who are buying,
24:31
who are doing it today, who are new into this, into this market,
24:34
to understand the game that we're playing, this game that
24:37
we're playing, is not a game for a year or two.
24:39
Trade. This is not the old, you know,
24:41
early 2000s bubble era or even the 2020 COVID regretted, you
24:45
know, squeeze silliness. We're talking about a game for
24:49
all the chips where we have to change the rules, right?
24:52
And then that kind of game, you want to keep a certain section
24:54
of your liquid net worth off the table in a place that's always
24:58
been safe and proven and private.
25:00
So that that's it. Yeah, yeah.
25:02
And I I like to describe my investments in in precious
25:06
metals as I look at them as generational.
25:09
I've never sold and I and I'm a silver guy.
25:12
I've never sold an ounce of silver never, right.
25:15
What would I in the future or convert it maybe at some point.
25:19
Well if we get to that you know 18 gold to silver ratio and I
25:25
can convert maybe a part of it into another real asset maybe
25:29
rental whatever I may consider it.
25:31
But to me to me it's a that's what I try to convey to people.
25:36
This is a it it when I buy silver I like to think that I
25:42
that I I don't buy it think you know I may need to liquidate
25:44
this in two years to buy a car or whatever I I use the money
25:49
that I feel like I feel good about my children and
25:52
grandchildren someday inheriting and you know like I said if if
25:56
if we get a a mania type event sure nothing wrong with
26:01
converting some of it to other to other real assets.
26:05
Yeah. So basically we're thinking like
26:06
Indians have thought about gold, silver for the last thousand
26:10
2000 years because they've gone through, I don't know, maybe 100
26:13
or 200 Fiat currency failures throughout like yeah, right.
26:17
So China the same way. So essentially we have not done
26:20
that in the West in a long time, especially in the United States.
26:23
And you know all it takes is two or three generations in the past
26:26
to forget all the all the things that have happened in the past.
26:29
So you know what? The thing about history is that
26:31
we repeat a lot of the follies of our of our history that we
26:34
never learned. So you have the right attitude,
26:38
I think. And I think the West is going
26:40
to, it's going to keep building that attitude I think as time
26:42
goes on. Yeah, I read something about
26:45
India a couple months ago that I found interesting, and that is
26:48
that it's very common for grandparents in India to tell
26:53
their grandchildren to advise them that it's a good idea to
26:57
own their body weight in silver and to own as much gold as you
27:02
possibly can. And I kind of joked around and
27:05
did a little calculation about how much it's, you know, there's
27:07
what, 1.4 billion people in India that's there's not enough
27:11
silver to go around to to to cover all that.
27:16
If you did the math on the available 39 fine silver in the
27:19
world versus the population, it's less than an ounce per
27:22
human being. So no, an ounce of silver is not
27:26
your body weight. So yeah, that's that's a.
27:30
They're they're probably on, in general a little thinner than we
27:33
are here in America, but they're not that.
27:35
Then what about the 70 million ounces of silver that India
27:41
imported in February? I found that astounding.
27:43
I know you reported on it. When I just compare that to the
27:47
annual mining output, it approaches 10%.
27:52
I have for one country. I think it's.
27:54
One month, yeah. One month, right.
27:57
Yeah, it's absolutely insane. And so you have to look at that
28:01
number and think what is going on there.
28:03
Like you have to dig deeper. You just don't say look at that
28:06
India is buying all this silver. There has to be something.
28:08
And and you know, I got to give credit to Pickaxe.
28:12
They did a lot of research on this ahead of time and I've been
28:14
reading his newsletter a bit and I looked at, I looked at some of
28:17
the stuff that he uncovered and yeah, it it, it, it, it's true.
28:20
You have a situation where a lot of that silver a lot of times
28:25
gets said Indians are buying it for jewelry and store value
28:28
purposes and that's true. But when you dig into the
28:31
numbers, you find that about half of that month's haul was
28:35
probably jewelry and and investment related, but the
28:39
other half was was probably related to battery, to a battery
28:43
and technology play that's happening in India where if you
28:46
look at the different associates that are involved with the with
28:49
with this battery, there's battery manufacturing facility
28:54
that's opening that month. Basically you can tell that what
28:57
they've done is they've gone out and gotten silver in large
29:00
quantity because they can see the price is going to go up.
29:02
They may as well get as much as they can now for all of a
29:05
sudden. I mean if you're if you're
29:06
building a factory, you're going to want to make sure you have
29:07
the inputs otherwise you could be really in trouble if you
29:10
don't have the proper inputs for your, for your duty keys,
29:13
whatever you're making, right. And so yeah, it's it's obvious
29:16
that India is not only doing massive imports of silver, it's
29:20
just regularly because the Indian people buy silver, a lot
29:23
of farmers buy it as a way to to save their their capital season
29:27
etcetera. But but it's obviously now
29:29
becoming an industrial input because India I mean India is
29:32
going to be a powerhouse in terms of in terms of a a country
29:37
that's going to that's going to get more and more important and
29:39
have more and more production and and sway in the world in
29:42
coming decades. And you know this is just an
29:44
obvious tell that that's where the trend's going.
29:46
So yeah that that amount of silver is is is crazy I mean 70
29:50
million just in one month. Yeah.
29:53
And at some point it's just like that the analogy of being in the
29:56
train, we're going to hit a wall physically as well where where
29:59
the just in time silver market of this idea that you can just,
30:02
you know, demand delivery of massive amounts of silver, it's
30:06
just not going to be there. So spot price has to go up to
30:08
start to entice some some silver to come out for perhaps to be
30:12
refined and recycled or to start building mines and and doing the
30:16
work again that's required to actually dig this stuff out of
30:18
the ground which has been, you know, not happening for the last
30:21
few decades. So we're running into a
30:23
situation like I said where we're going to have an issue not
30:26
only on the investment side for physical belief, but certainly
30:28
on the industrial side. It's going to be real problems.
30:30
I mean it's not just me, but we're going to run into the
30:33
shortage area with silver and in order to to help that shortage
30:36
area, you have to have spot price to up.
30:38
Fortuna Silver Mines is a global intermediate gold and silver
30:42
producer. Since 2005, Fortuna's best in
30:46
class management has delivered impressive growth and profits.
30:51
Fortuna's solid financial position and operational
30:54
expertise allows for performance in any precious metals price
30:59
cycle and provides a foundation from which to harvest great
31:03
profits in more favorable metals markets.
31:06
Investing in Fortuna is an investment in quality, long
31:10
term, sustainable production of in demand precious and base
31:15
metals. To me, it's just astounding when
31:17
I think about 1.4 billion people in India and their economy is
31:23
growing quickly. Their middle class is expanding
31:26
like crazy. 1.4 billion, 1.4 billion people in China.
31:31
So that's 2.8 billion people. That's like what, 9-8 or nine
31:35
times the population of the United States and all those
31:40
people there, you touched on this earlier.
31:43
Culturally they, they have a much different level of
31:47
appreciation for precious metals and obviously their governments
31:51
do as well. One final final question for
31:55
you, James, because you touched on this in your most recent
31:57
video. Why does nobody talk about
32:01
Japan? Japan is one of the largest
32:04
economies in the world. I know in your most recent video
32:07
you talked about I think the silver price in Japan had
32:11
reached an all time high in yen and I I remember reading three
32:15
or four months ago that gold had reached an all time high in in
32:20
in Japanese yen. I I guess you know I what I'll
32:23
ask you to touch on the silver price news, but do you ever pick
32:28
up on that like we don't like we never we talk about China, we
32:30
talk about in India, we talk about Russia, but Japan gets for
32:36
as large as they are kind of pushed off to the side a little
32:39
bit. Yeah, and the end carry trade in
32:41
the 1990s, two thousands, was a huge tool used to Fiat
32:46
financialize the world, right. I'm pretty convinced when you
32:49
look at the the amount of silver depression in in price, it's
32:53
like you look at it and think was the game carry trade used to
32:56
help suppress commodity values? It's just right.
32:59
I mean I pull those long term charts out because you see, oh
33:02
wow, the price of gold is now twice what it was in 1980 in
33:06
Japan. Almost twice, right.
33:08
And the price of silver is still a third roughly of what it was
33:12
in the 1980 high even though it's passing its 2011.
33:15
Right. So.
33:16
So you know, for me when I look at that, it just, it's just
33:19
comforting to know like silver is dirt cheap until I see the
33:23
price of silver twice the price of its 1980 high.
33:26
In the end, I'm not going to be thinking about is this a silver
33:29
bubble or anything like that, right.
33:31
So it's just it's it's comforting to know like how dirt
33:34
cheap it truly is in Japan. Japan is interesting.
33:38
I mean, there's so much history involved with Japan and the
33:41
United States relations and some of it goes way back to like
33:45
World War 2 and prior to World War 2.
33:47
When they're when they're when they're attempted being a, you
33:49
know, an empire failed and and they, you know, I don't think
33:53
people realize we're not taught this in the West.
33:56
I think that we made a tacit agreement almost when when they
33:58
surrendered that we wouldn't even talk about it all that
34:01
much. But I mean, Japan in 1937 went
34:03
into the capital of China and and it's called the Rape of
34:07
Nanjing. People don't really talk about
34:09
it in the last. But if you go look up, it's one
34:11
of the most gruesome things that happened in the 20th century
34:14
during the World War 2 era. I mean if you're talking about a
34:17
couple months campaign of raping, pillaging throughout
34:19
their entire capital, you know, that's like walking into Beijing
34:23
essentially and doing the same thing now, right?
34:25
And in that campaign they they win and they lifted 6600 metric
34:29
tons of gold from China, only that they killed, you know
34:33
200,000 people and took photos of people's heads getting lobbed
34:35
off, etcetera. So like like absolute savage,
34:39
right. And so 6600 metric tons of gold,
34:42
that's like 3/4 of what the US it's more than 3/4 of what the
34:45
US even claims that today. Right.
34:47
And so that that that still exists trying to compress that
34:50
button anytime they want to have their citizens get angry about
34:53
Japan and and and think about all the payback that's still
34:57
required for that and what happened to that goal is a
35:00
mystery. You know, this is, and it's a
35:02
it's a good conspiracy to rabbit hole to go run down if you'd
35:05
like. But I mean, and then you look at
35:08
the Japanese amount of industrial demand for silver
35:11
from the 1980s to all the electronics that they used
35:14
1990s. I mean if you're in Japan,
35:16
buying silver bullion is virtually impossible to do.
35:19
You can ask people to live in Japan, it's very hard to get.
35:22
You can find gold you can find platinum but they don't really
35:25
market silver and bullion capacity because they need it
35:27
for industrial use. They don't need silver for you
35:29
to go pour it in your your house.
35:32
They they needed for their inputs and electronics they
35:34
create. So look I have a lot of respect
35:36
for Japanese culture and it's a it's a huge it's a huge market
35:39
and and it's and it's A and it's very interesting culture a very
35:42
interesting place. I would like to go visit.
35:43
It's probably a good time to go go visit the Tokyo.
35:46
I would think it's probably a good price but but yes, no one
35:50
talks about it. But in the end like look at the
35:52
long term charts, the yen is a major, very important.
35:57
We've got currency in the world and so, so you know keep an eye
36:00
on that. Keep an eye on the price of gold
36:01
and silver and yuan, keep an eye on prices of gold and silver and
36:04
the pound in in you know, in in the dollar of course as well.
36:08
But those things are important. It's not just the dollar.
36:10
You need to think a little bit bigger in terms of, you know,
36:13
the United States is what population wise 120th of the
36:16
world and GDP wise, you know, one less than 1/5 it, it's
36:21
there's a world out there. We're not the only ones in it.
36:24
Yeah, yeah. James, thank you so much for
36:27
joining us today. I want to point out to to our
36:30
viewers that you put out a video every week and it's one of my go
36:36
to favorite videos to watch and that's on the SD bullion YouTube
36:40
channel. Is that correct?
36:42
Yeah, it's typically done on Friday early evening.
36:45
I like to get out as early as possible but sometimes there's a
36:48
lot of work to pull it out because what I what I like to do
36:51
is I go through the weeks information in terms of news and
36:55
stuff and I try to aggregate what's most important and boil
36:57
it down to something that's 1020 minutes stops.
37:01
And so regular viewers can kind of keep up to date with what's
37:03
happening and really the most pertinent, most important stuff
37:06
with a long term view. Of course I'm not, I'm not we're
37:09
not there talking about what's going to happen on Monday in the
37:12
spotlight. We're talking about you know the
37:15
next year or two or a decade or two.
37:17
I mean we're talking about a longer term timeline.
37:19
So I appreciate you letting your viewers know.
37:21
And yeah, so SD going YouTube. I I will and I'll and I'll just
37:25
be honest, I always get one or two great things out of your
37:31
video that I've been using the things that good ideas of in
37:36
terms of things to talk about. You're not just repeating the
37:39
news you're you're adding a kind of a unique angle and a very
37:44
insightful angle and and you get me thinking it really is one of
37:49
my favorite videos to watch every week.
37:51
I mean probably I like to watch Andrew McGuire on Live from the
37:55
Vault when I can as well. His perspective is a little more
37:59
different. But your your ability to kind of
38:02
distill the top weekly stories but then add a a great angle to
38:08
things is is something that I find very, very valuable.
38:11
So I'll put a link to your channel in our description.
38:15
James this has been great. I'm I'm going to bug you in
38:18
another six or eight weeks and see if I can get you back on
38:20
here. Thank you.
38:22
And I'll be half of our viewer. Thank you.
38:24
And we'll talk to you soon. Hey.
38:25
Ron, thanks for having me.