GOLD $30,000 Trigger & Silver’s Revenge: The Cartel Is Broken I Andrew Sleigh
Summary
Precious Metals Surge: Gold has surpassed $4,000 and silver over $50, reaching new all-time highs, reminiscent of historical market squeezes.
Market Dynamics: Institutional demand and waning short positions are driving the price surge in gold and silver, indicating potential currency instability.
Silver Supply Concerns: Reports of silver shortages are emerging globally, with mints struggling to meet demand, suggesting a potential supply crunch.
Short Contracts Decline: A significant reduction in silver short contracts by bullion banks indicates a shift in market dynamics, potentially leading to less price suppression.
Investment Momentum: Algorithmic trading and large funds are likely contributing to the momentum in precious metals, with a small percentage of sidelined capital potentially impacting prices significantly.
Economic Indicators: The rising prices of precious metals suggest impending economic challenges, including potential hyperinflation and currency devaluation.
Currency and Inflation: Despite the US dollar's relative strength, its purchasing power continues to decline, highlighting the ongoing inflationary pressures.
Future Outlook: The discussion suggests that continued money printing and economic instability could drive gold and silver prices even higher, with historical patterns indicating substantial future gains.
Transcript
Gold is trading over $4,000 and silver is catching up. We're trading over $50 an ounce, reaching new all-time highs. We haven't seen this price level since the Hunt brothers tried to squeeze the silver market and I've invited a fantastic guest to help us dissect the market momentum or the market moves in the precious metals. It's Andrew Slay. He's with Sprat Money. We'll take a closer look under the hood. What is happening on the physical side, but also what is driving demand in the in the p in in the precious metals right now. Is there a silver shortage out there? We'll have to discuss cuz rumors are floating around that there's not enough silver going around anymore. And uh we'll have to figure out if that is true or if it's just a rumor. So, really looking forward to this conversation. But before I switch over to my guest, hit that like and subscribe button. It helps us out tremendously and we much much appreciate it. Thank you so much for that. Now, Andrew, let me get you on the screen here. Really appreciate you joining us. Good to see you again. >> Good to see you. Glad to be back. Thank you. >> Absolutely. Yeah, so much going on. Perfect timing. Just today, silver broke out over $50. We're recording this on October 9th. Uh we do have to mention the dates. And I probably should give a timestamp here as well. It's 6:21 p.m. as we're recording this cuz uh I've been criticized like, "Oh, you got to put timestamps cuz prices moved so so much uh recently." Um give us an overview Andrew maybe your your impression like what is really driving prices to these levels. Is this just momentum or is there more to it? >> I think the uh I think the demand on the institutional side in the countries is starting to have an effect and show up uh in the price. Uh also uh I think that the shorting uh is starting to wayne on particularly silver and and gold. Um, and of course, gold is the bell weather to indicate that currencies are failing. So, that's it's doing its job. So, it's going to go up and up and up because the currencies are continuing to fail big time and will speed up at some point. Um, on silver, you know, the last couple days, uh, there's been some rumors and a few articles about, uh, shortages around the world. And I just had a chance to kind of dig into it a little bit this morning uh with some, you know, pretty high credible uh people that are looking around and and there are some things there that are going on. Um, you know, here in Canada, I've been talking about this for a bit, but you know, the Canadian Mint has had on and off again availability of 100 ounce RCM silver bars. So, not available for 3, four months. then there's a month or two that we can buy them and then another three four months not available and like that's never happened before you know like to my knowledge in the last number of years so it's abnormal uh 10 RCM bars not available the entire year we couldn't get them nobody could get them all done now I don't know what that's an indication of is it less supply coming into the mint like say thousand ounce bars there's not as much coming in and So, if the mint has the obligation to make the RCM um silver maple coin and they don't have enough raw material coming in, so they have to start saying, "Okay, well, we'll cut off on 10 bars or intermittently stop the 100 ounce bars to maintain the silver coins." Is that's what's happening? Like, they won't say. It's just nothing more than a guess on our part. Um and also kilo bars of gold haven't been available the entire year to the uh to the retail market. Um our suspicions are that that the comx is buying whatever is available directly from the mint uh in mass and they just haven't been able to make any more available for the retail public. So that's been going on all year and then all of a sudden last couple of days there's now articles coming out that the Rand uh mint in South Africa is now sold out of Krugerands and more material coming in a couple weeks till they'll start making them again. Uh Perth Mint is out of variety of different product various dealers. Um this person was doing some uh collecting of some data and showed some snapshots of various uh dealers around the world that were sold out of kilobars of silver um and other product. So it seems to me that there is some validity to this. Now I saw some pictures of X or Twitter or whatever like type of comments where it seemed like individuals are just perhaps doing some hype that uh you know um uh giving it some emotion like you know this is the this is a big squeeze it's going to be gone in two weeks or you know that kind of stuff. I don't I don't jump on that bandwagon. I like to see hard data when I see stuff that's sold out and that's kind of abnormal for the retail sector that's slow at least in North America. Um, and if dealers are selling out, they're not able to get it replenishing as much. So, I think the picture is going to come into focus more and more over the next one to two weeks and we could see, you know, some some massive problems uh if this continues to uh go in this direction. Yeah, it's it's an interesting move. Um, you know, you you you touched on something I want to follow up on is something Gary Savage told our audience here a while ago about gold when gold had its move. U was that gold has broken the cartel? Um, is the same thing true now for silver? Um, has silver now broken the cartel? Could was it was the move too powerful to keep it suppressed? >> Well, it's a good question. Um I do know that um you know Ed Steer if you've ever had him on before you know he does a lot of data following on the short contracts and so he does excellent work and he stated in a in an interview um I saw maybe a month ago that from I believe it's from July to August the bullion banks with their short contracts on silver decreased their amount by 50%. And that's a massive decline in his words. Um because that's just they're throwing away half of the ammo they have to try and suppress silver. Now is that because they know the game is coming to an end and if they don't start getting out of their positions, the silver train's going to run them over. And so they they're they're trying to get out get out of dodge, you know, starting, you know, a couple months ago. Uh, and then I saw something the other day that um was uh short contracts on the Comx I think uh available for shorting was 10,000 units and it was sold out in an hour. So there was nothing left for anyone to short. So and I don't fully understand the mechanics behind that. I'm not in that realm. But um that seems to me to be um the firepower to control silver downward seems to be waning considerably and that could spell you know excitement for the physical world. Yeah, it's it is it it is interesting because all of a sudden that momentum is like same with gold like there are a lot of parallels of course all of a sudden there's massive momentum there's no more stopping as you said like the short side is is pulling back while there's still a lot of demand on the physical or not just physical but in in the in the precious metal itself um which I'm trying to understand cuz what what has changed um is maybe the other question like what was that last domino that sort of set it off uh cuz we new geopolitical crisis all around us. Although like we seem to be solving one in the Middle East right now, thank goodness. But um nothing has really changed, right? So we've known about it. So >> that was very well said. Like all of a sudden what has changed? It's funny. We we've been talking about this stuff for you know years and you know I've been talking about this for 10 years. I just didn't know when it was going to start and is this the start? um with quiet optimism. I hope so. But we're all scared to say that because we've been here before. And so what has changed? That's that's exactly the million-dollar question. Um I I can tell you that uh somebody had brought up a point another analyst saying that there was um I believe it was 12 trillion dollars of um money sitting on the sideline that was all linked into momentum traders the algo algorithmic computer trades that look for momentum shift in stocks commodities whatever and when they detect it they start buying it you know there's no human no human eye working on it And so 12 trillion, well even if 1% of that starts to go after metal, particularly silver, that's a huge number that just doesn't fit in that space. So is some of that starting to trickle in? Um we're going to find out over the next few days more and more information is going to come out, but right now it's just it's too early. I don't know what it is. It's it's happened so fast I haven't been able to keep up with it. So >> yeah. No, I've done an interview 10 days ago. I've done an interview 10 days ago with with David Lynn actually in Beaver Creek. It was two two and a half weeks ago that was released maybe five days ago. And my pricing I I was off by $400 on the gold price within two weeks and people were commenting like he doesn't know his spot prices. What's going on? Like silver is way higher right now, gold is way higher. I was like >> absolutely insane that momentum. But but uh as we say like we've been pointing towards this ever since probably at least March 22 um when when Russia invaded Ukraine and the Swift system or Russia was taken off the swift swift system all of a sudden like we all knew what was going to happen but it never did right like is is this that's the question maybe is this the the broken a broken clock is twice right twice a day kind of thing because I'm as you said I'm I'm cautiously optimistic here because I've been hit over the head way too many times. Like, of course, it's great to see silver at $50, gold at over 4,000. Um, the mining stocks today, in contrast, as we record this, >> red completely >> really >> down. Yeah, absolutely. >> Like the the mining stocks are get decimated is a strong word, but they're they're all down two, three, four, 5%. Let me actually take a look at the the GDX real quick. >> Is that just people trying to take profit? And, you know, >> GDX is down 3.2% despite all the record high prices. like we're still above $4,000 in gold. I have no idea where that is coming from, right? So, I'm that's why cautiously optimistic here because we've been hit over the head way too many times. And uh I want to be way more euphoric, but it's really difficult, right? >> I I just want to say it with a smile and and quiet optimism and quiet excitement. Um, I I think in my opinion that with the momentum and the energy behind silver, you know, this could be, you know, like it's going to be very hard for them to bring this down. I mean, they're going to fight trying to get it back down below 50, but it's going to be just a possibly a, you know, a week battle or twoeek battle of it goes up to 51, it goes down a little bit and they struggle it back down to 49 and change over a couple of days. whatever. But it's sooner or later it's going to pop above 50 and hold. And when it does hold, I think the air is pretty thin up here. And the resistance is going to be pretty minimal after that. And then and then I would just advise people um before the boat leaves the dock, you may want to buy whatever else that you want to buy because um I'm in my opinion what I'm think is going to occur um is you know we've seen this dollar dollar and a half swings quite a bit and you know quite a few days like that during the week. So you can see just in the last four or five weeks that silver in U in in Canadian dollars has gone up uh like $156 an ounce which is you know fantastic in the last uh in that period of time. So, um I think we're going to start the next phase whenever that starts will be like a 10% move foreign$5 US spot per day up down half of it down whatever it is we'll start seeing that um and then uh and then after that the next phase I think will be 10 and $20 moves you know per day whatever um and then after that it's game over um you know you you'll wake up one day and all of a sudden it's it's risen$100 or $200 because it's it's just gone beyond anyone's control. And with all the energy that's been suppressing silver for so long, that spring is it will be released and and the energy in that's going to be um immense. So I keep telling people over the years, nothing would surprise me what silver does. I'll be grinning a lot when it, you know, jumps up five and$10 dollars a day and then 20 30 bucks a day and then a hundred bucks a day and whatnot. But, but um that's that is potentially around the corner and um so I would be uh if you have positions left to get, I would get them. >> Um maybe let's let's dissect the do the the first domino a little bit perhaps. And uh I'm still curious why why the market thinks that might have been the trigger, but it it was Jackson Hold's speech by Jerome Powell. Um I think if we wanted to put a finger on it, gold was wanting to to rally, but then August 22nd came, the speech came uh hint at rate cuts and all of a sudden the market just loses its all it its inhibition. It just goes bonkers for lack of better terms. And and gold goes parabolic. It's pretty much a 90° angle line if you want to draw it on a chart and you zoom out. I had Gary Wagner on yesterday from the gold forecast and we zoomed out back to 1979 and it's just a straight line up. Um, but let's dissect that like the the message that the market thinks it's hearing from from that speech by Jerome Powell. What what does the market think is going to happen? Um, and what do you think is going to happen based off that market move based off that trigger? >> Well, they're going to do everything they can to keep the market going up in the stock market. So, they're going to stand on their head. they're going to do everything possible to keep that charade going as long as possible. Um, so that's going to be QE, you know, to huge numbers and that's what in my opinion that's what gold is telling us what's coming. You're going to see another rate cut and they'll continue doing that and they're going to do QE on yield yield curve control and uh gold is telling us that they're already money printing galore. Um, and I would go so far as to say that gold's telling us that, you know, the system is is on the way out. The the the uh the dollar is is in its last legs. And um even though they plan to go to a stable coin digital version of the dollar backed by nothing, backing a another nothing, which is interesting to me. Um that will be just another charade to kick the can down another year or two with with mega printing. uh in a digital way. Um and then we also have to look forward to uh will the US government revalue gold for October or November or whatever whenever they do it. We don't know but you know are they going to do this um uh let me correct myself. It's not a revaluating gold. It's revaluing the currency. But they don't want to say it that way. So you can't revalue gold. you devalue the currency which is going to make gold go to their estimated limit of 13 to 30 grand an ounce US which is been projected by a few analysts. So if that occurs because they're painted themselves into a box um you know that's going to be completely on territory to kind of interpret what's going to happen from there. >> So >> yeah, we're already seeing a parabolic move. The question is what's next, right? and how much further can this rally go? Uh >> I I keep using the words like scary. Um but I'm more more concerned about what that that price move means for any everything but go the precious metals, >> right? Like what kind of environment are we in? Um >> because we we we kept saying like even at 1,200 $1,300 if we see higher prices 4,000 5,000 the world must be burning. Like how close are we from the world burning perhaps Andrew? or maybe are we are we ignoring that like is the world burning right now? >> Well, I guess in Paris it certainly is burning. Um there's a lot of uh a lot of distraction in the world by design with uh commotion and and uh rioting and and regional conflicts which all are indicative of these empires and systems that come to the end of their legs and it always ends in lots of violence to cover up the you know government and and banking shenanigans of of uh inflating the currency to nothing which steals everyone's purchasing power and impoverishes a generation or two. Um this is the same playbook they've used every single time. So um it's not nothing new to me once you understand history on it. Um it's going to be catching the vast majority of people which do not understand what's happening. They don't understand what inflation really is. They don't understand that they're being robbed um every day with printing of money and their currency goes down in value. Um, and they need to they need to um open up their eyes and ears and and start doing something about it because uh they don't want to be a statistic of of the people that in history have lost all their value. >> No, absolutely. No, it's it it's it's mindboggling. You know, my head is spinning. Um it's even difficult to just prepare for these conversations these days. There's like there's so much going on. So it's really difficult to focus um on on one single topic but I want to maybe follow up on something that we've discussed about five six months ago here Andrew and that's the shadow banking system and uh I mentioned to you that I want to discuss briefly first brands and drior um on the auto side in the US uh a big billion billions of dollars are being you know incinerated here there's some fraud allegations miscalculations misacounting whatever you want to call it but um we need to talk about subprime loans and the auto sector is uh is prone to dodgy loans for sure. Um what what do you make of the the collapse of these two auto companies? >> Well, I it's a it's a bellweather signal of of the whole thing is coming down. It's just one leg of the chair that's now collapsed or about to break or whatever. And you know, the other leg is is going to be subprime housing. Another leg is going to be um uh maybe the bond market. Um another leg of the chair will be the commercial um mortgages. So all of that's a disaster and banks are going to be you know completely destroyed by all this stuff. So this is just part of the slow motion train wreck that is unfolding before our eyes. uh repossessions of housing in the states is past 09 levels has been for a while. So you know that was the great financial crisis of our land so to speak which is nothing compared to what's going to happen now. But um you know there was the news was talking about the amount of repossessions and credit um defaults and the auto loan defaults all after that 08 crisis. So why is it this time around there's like nothing being said except for you know channels like like your channel and others that are you know talking about this but mainstream everything is fine the economy is great so um you know in Canada I mean well in the states unemployment rate I mean that's completely a lie um you know it's probably between 20 and 25% unemployment So, you know, if you go back and use the original type of measuring stick that they used way back when, they massage the numbers to whatever they want to have to be to project um a different uh uh picture. So, same is happening all around the world. The economies are all fine and and they're if they're fine, why are they getting ready to institute universal basic income to everybody? And you know, AI is going to replace a huge number of jobs in the very near future. So, they're getting all this stuff set up in place so that when the unemployment goes to some obscene number that they're going to be using a welfare system to pay for everybody so they can exist. um we're we're going to see some his absolute historical events that are going to unfold, you know, from here on for the next years to come. So, run us a bit through that like what what are potential scenarios like we're already at record high prices for gold and silver. Like what could could catapult it potentially even higher? What is priced in already, Andrew? Um well, you know, when you have unemployment, well, they're going to do dollar printing like crazy, so they have to. And um that's going to explode gold and silver even further to a degree that would be normal in Venezuela or Argentina, but it's completely foreign to the rest of the West. you know, like Europe and and North America, we've not really gone through this kind of hyperinflation that's coming our way, but you know, people want to have an idea, just start doing some research with Venezuela and Argentina, and you'll get a preview of what's coming. And so, um, every time they do a a new budget bill, it's many trillions of dollars. They're going to be um the Canadian government's doing the same thing. There's just, you know, Europe is wanting to get into a conflict in Ukraine and send and expand the war. I mean, the countries are all broke. Why do you want to expand the war? Because they need to print more money. They need a major distraction. So, all of this is going to be massively, massively inflationary, which comes right back to um the dollar, whatever currency you're in, whatever country, uh that's going to be destroyed. And if you think gold is high at 4,000 US, that's just today's numbers. I mean, once the inflation continues to to pick up pace, um, you'll see an exponential increase in the in gold in dollar terms or whatever currency you're in. So, with Venezuela, you know, I tracked that for years. January 2018, it was 684 bucks of their currency, the sovereign boulevard, and six months later, it was 90,000 for the same ounce of silver. And then two years after that, July 2020, it was uh 3 5.9 million. And it just kept going higher. It was in the hundreds of millions in a four or five year period for one ounce of silver. And that's because the silver still bought one month's worth of food roughly, but the currency, you know, disintegrated that fast because of the money printing. So people should be just taking a look at some of those countries and uh that will help you understand what's coming. >> Maybe put it into perspective for us as well because the US dollar is fighting a good fight right now. It it is trying to hang in there. It's trying to stay or keep up with gold and silver here right now. Um I I've called it an everything rally because the S&P 500 is higher as well. It's trading at alltime high levels. But I'm I'm personally a bit surprised that the US dollar is doing as well as it is. And please, I I'm using those terms lightly. Um, and we all know the dollar is losing purchasing power, but the Dixie in comparison to other currencies is doing okay the last few days. Like, we're actually going higher, not lower, as one would suspect, with a government shutdown and precious metals rallying like there's no tomorrow. So, can can you put that into perspective for us a little bit? Is that just the last >> hurrah? Um, well, I'm going to say it this way. So, the Dixie showing strength against the other currencies. They're all burning aircraft. They're all going to the going towards Earth to crash. And at any given moment, you know, um if the US dollar isn't burning quite as fast as the other ones, that's when it has its we uh week of strength. Um and it's only in relation to the other basket of crap around the world of currencies. And so I look at it strictly from a a standpoint of purchasing power within the US. And um they promote it. The mainstream promote the strength of the dollar and it's very misleading to the general public. You know, oh the dollar stronger this week. Well, that's only in relation to the other crap is being compared to. So, they're all airplanes flown to the earth. Now, uh there's a uh there's a gentleman uh who did some math on this a couple weeks ago who I believe is well qualified to do it. And um he uh he said that uh the American dollar has lost 99.34% of its purchasing power. So that means and if my math is correct and I change that to a fraction that's 6 point 66 uh t 6.610 of a penny is now what the dollar's purchasing power is and or in other words 710 if you want to round up. So 710 of a penny. Now, interestingly enough, at the time, if you go back to 1930 odd when American dollar and gold was they revalued gold after they did that confiscation stuff at basically 35 bucks give or take. Um you take that number and you go to roughly a month month and a half ago more or less when this report had come out um gold was 3500 and change us. How many times does 35 go into 3500 [Laughter] so it correlates. So, I'm I'm I'm going to go on record as saying I agree with his math because up a 100 times is pretty close to nine nine and 710. And uh and from here it only gets thinner. So, it's it's never going to go negative. It's going to go, you know, in a year it might be 120th of a penny and then it might be 1/200th of a penny and 1,000th of a penny. It, you know, it's going to keep on uh adding zeros to its fraction. And uh so and it was a little startling to me when I first saw it because you know the last number I heard from the US was 2 cents something like that. And I hadn't heard anyone doing any math on it for a couple years until just the other month. And and then I'm like thinking about the gold and of course that's conversion to to US dollars and if it's 35 to 3500 well that correlates. So I'm like it must be very close. And then I thought, okay, if the US dollar is six, 7/10en of a cent, the Canadian dollar is five, six ten of a cent, something like that. And nobody's talked about that for a couple years either. So where I think we are entering in that start of that curve where we start going exponential here in the very near future. um whatever that is a month or two or or longer than that, I don't know. But it's gold is showing us what's what's coming. It's not going to stop because they're printing money into oblivion. And so I don't see a pullback. I'm not saying it can't be pulled back a couple hundred bucks when when some event happens where people's margin calls and whatever and they have a short um um amount of gold on the market, whatever. But that's that's nothing. That's just a a um that's just a a daily blip. But after that, it's right back and it's going to roar forward and do more all-time highs. And it's not going to stop. >> Fantastic. >> However that long is, I don't know. >> But it's still cheap. I've also had someone ask me that the other day like, you know, if it's too late to get in, I said, well, you know, statistically speaking, when you look at the the bull runs on gold and silver, they've all done um, you know, seven or eight times in in those different periods where they've they've they've done, you know, moves up and it's been seven or eight fold every time it's it's happened. So, right now, have we even done a onefold yet? There's still seven or eight to go. Okay. So, like, you know, we're just starting at this position. Even though that seems unfathomable, that the numbers are the numbers. That's what gold's always done. Silver's done something similar. And so, um, seven or eight time up and seven or eight times from like three grand, 3500, whatever they wherever they want to start the number from, um, that's 21 grand. at and a sevenx, >> you know, on the so how long it takes to get there, don't know. Um but uh we're nowhere near and then and then I tell the clients on the alternative is what are you going to do? Hold hold hold uh cash like and I'll give you another analogy that your your viewers would would like. The other day I bought some junk silver. So that's in Canada, that's pre uh 1966 and earlier quarters, dimes, 50 cents, and silver dollars. And I bought two rolls of quarters, one roll of dimes, it cost me $1,000. Now, let's put that in perspective. If I go back to 1966, I could take that same $25 and buy and exchange it for those same rolls. And now those same rolls cost me $1,000 in Canadian currency, which is a 40x, >> which means my dollars have lost 40 times their purchasing power against those lousy rolls of quarters and dimes. Like, I still can't get over that. Like, I I was okay with spending like $200 for a roll of quarters. That didn't bother me that much. But I'm having real trouble coughing up $400 for a roll of quarters. I just I can't I'm not gonna stop. But I mean, >> are we gonna talk about how how much your wage has increased since? >> Um and whether your wage is keeping up with inflation and the devaluation of the currencies. Um I think that's a different discussion for a different for for another day here, Andrew. But uh we do have to put a bow around it here today. But, uh, what wonderful insights. Um, you definitely gave us a few ideas for YouTube titles here as well. Um, really appreciate it, Andrew. Thanks so much for coming on. Um, sproney.com is probably the best website where we can send everybody to find more of your work. >> Yeah, my email is death of the dollarmoney.com. >> Fantastic. Andrew, thank you so much for joining us. Much much appreciated. And, uh, everybody else, thanks so much for tuning in here to sore financially. Exciting times we live in. We're recording this on the day silver broke $50 trading at new all-time high levels. Although I got to be careful saying that the hunt parades I think were were higher during that time. Although does that count? You let me know. Let me know your thoughts down below. $50 a magical number. Of course, we broke through old all-time highs or old highs and that that means a lot. We've seen quite a bit of followthrough as well in the silver price. Really curious what your thoughts are on it. Thank you so much for tuning in. Don't forget to hit that like and subscribe button. helps us out tremendously and we much much appreciate it. Thanks so much for watching. Take care out there. [Music]
GOLD $30,000 Trigger & Silver’s Revenge: The Cartel Is Broken I Andrew Sleigh
Summary
Transcript
Gold is trading over $4,000 and silver is catching up. We're trading over $50 an ounce, reaching new all-time highs. We haven't seen this price level since the Hunt brothers tried to squeeze the silver market and I've invited a fantastic guest to help us dissect the market momentum or the market moves in the precious metals. It's Andrew Slay. He's with Sprat Money. We'll take a closer look under the hood. What is happening on the physical side, but also what is driving demand in the in the p in in the precious metals right now. Is there a silver shortage out there? We'll have to discuss cuz rumors are floating around that there's not enough silver going around anymore. And uh we'll have to figure out if that is true or if it's just a rumor. So, really looking forward to this conversation. But before I switch over to my guest, hit that like and subscribe button. It helps us out tremendously and we much much appreciate it. Thank you so much for that. Now, Andrew, let me get you on the screen here. Really appreciate you joining us. Good to see you again. >> Good to see you. Glad to be back. Thank you. >> Absolutely. Yeah, so much going on. Perfect timing. Just today, silver broke out over $50. We're recording this on October 9th. Uh we do have to mention the dates. And I probably should give a timestamp here as well. It's 6:21 p.m. as we're recording this cuz uh I've been criticized like, "Oh, you got to put timestamps cuz prices moved so so much uh recently." Um give us an overview Andrew maybe your your impression like what is really driving prices to these levels. Is this just momentum or is there more to it? >> I think the uh I think the demand on the institutional side in the countries is starting to have an effect and show up uh in the price. Uh also uh I think that the shorting uh is starting to wayne on particularly silver and and gold. Um, and of course, gold is the bell weather to indicate that currencies are failing. So, that's it's doing its job. So, it's going to go up and up and up because the currencies are continuing to fail big time and will speed up at some point. Um, on silver, you know, the last couple days, uh, there's been some rumors and a few articles about, uh, shortages around the world. And I just had a chance to kind of dig into it a little bit this morning uh with some, you know, pretty high credible uh people that are looking around and and there are some things there that are going on. Um, you know, here in Canada, I've been talking about this for a bit, but you know, the Canadian Mint has had on and off again availability of 100 ounce RCM silver bars. So, not available for 3, four months. then there's a month or two that we can buy them and then another three four months not available and like that's never happened before you know like to my knowledge in the last number of years so it's abnormal uh 10 RCM bars not available the entire year we couldn't get them nobody could get them all done now I don't know what that's an indication of is it less supply coming into the mint like say thousand ounce bars there's not as much coming in and So, if the mint has the obligation to make the RCM um silver maple coin and they don't have enough raw material coming in, so they have to start saying, "Okay, well, we'll cut off on 10 bars or intermittently stop the 100 ounce bars to maintain the silver coins." Is that's what's happening? Like, they won't say. It's just nothing more than a guess on our part. Um and also kilo bars of gold haven't been available the entire year to the uh to the retail market. Um our suspicions are that that the comx is buying whatever is available directly from the mint uh in mass and they just haven't been able to make any more available for the retail public. So that's been going on all year and then all of a sudden last couple of days there's now articles coming out that the Rand uh mint in South Africa is now sold out of Krugerands and more material coming in a couple weeks till they'll start making them again. Uh Perth Mint is out of variety of different product various dealers. Um this person was doing some uh collecting of some data and showed some snapshots of various uh dealers around the world that were sold out of kilobars of silver um and other product. So it seems to me that there is some validity to this. Now I saw some pictures of X or Twitter or whatever like type of comments where it seemed like individuals are just perhaps doing some hype that uh you know um uh giving it some emotion like you know this is the this is a big squeeze it's going to be gone in two weeks or you know that kind of stuff. I don't I don't jump on that bandwagon. I like to see hard data when I see stuff that's sold out and that's kind of abnormal for the retail sector that's slow at least in North America. Um, and if dealers are selling out, they're not able to get it replenishing as much. So, I think the picture is going to come into focus more and more over the next one to two weeks and we could see, you know, some some massive problems uh if this continues to uh go in this direction. Yeah, it's it's an interesting move. Um, you know, you you you touched on something I want to follow up on is something Gary Savage told our audience here a while ago about gold when gold had its move. U was that gold has broken the cartel? Um, is the same thing true now for silver? Um, has silver now broken the cartel? Could was it was the move too powerful to keep it suppressed? >> Well, it's a good question. Um I do know that um you know Ed Steer if you've ever had him on before you know he does a lot of data following on the short contracts and so he does excellent work and he stated in a in an interview um I saw maybe a month ago that from I believe it's from July to August the bullion banks with their short contracts on silver decreased their amount by 50%. And that's a massive decline in his words. Um because that's just they're throwing away half of the ammo they have to try and suppress silver. Now is that because they know the game is coming to an end and if they don't start getting out of their positions, the silver train's going to run them over. And so they they're they're trying to get out get out of dodge, you know, starting, you know, a couple months ago. Uh, and then I saw something the other day that um was uh short contracts on the Comx I think uh available for shorting was 10,000 units and it was sold out in an hour. So there was nothing left for anyone to short. So and I don't fully understand the mechanics behind that. I'm not in that realm. But um that seems to me to be um the firepower to control silver downward seems to be waning considerably and that could spell you know excitement for the physical world. Yeah, it's it is it it is interesting because all of a sudden that momentum is like same with gold like there are a lot of parallels of course all of a sudden there's massive momentum there's no more stopping as you said like the short side is is pulling back while there's still a lot of demand on the physical or not just physical but in in the in the precious metal itself um which I'm trying to understand cuz what what has changed um is maybe the other question like what was that last domino that sort of set it off uh cuz we new geopolitical crisis all around us. Although like we seem to be solving one in the Middle East right now, thank goodness. But um nothing has really changed, right? So we've known about it. So >> that was very well said. Like all of a sudden what has changed? It's funny. We we've been talking about this stuff for you know years and you know I've been talking about this for 10 years. I just didn't know when it was going to start and is this the start? um with quiet optimism. I hope so. But we're all scared to say that because we've been here before. And so what has changed? That's that's exactly the million-dollar question. Um I I can tell you that uh somebody had brought up a point another analyst saying that there was um I believe it was 12 trillion dollars of um money sitting on the sideline that was all linked into momentum traders the algo algorithmic computer trades that look for momentum shift in stocks commodities whatever and when they detect it they start buying it you know there's no human no human eye working on it And so 12 trillion, well even if 1% of that starts to go after metal, particularly silver, that's a huge number that just doesn't fit in that space. So is some of that starting to trickle in? Um we're going to find out over the next few days more and more information is going to come out, but right now it's just it's too early. I don't know what it is. It's it's happened so fast I haven't been able to keep up with it. So >> yeah. No, I've done an interview 10 days ago. I've done an interview 10 days ago with with David Lynn actually in Beaver Creek. It was two two and a half weeks ago that was released maybe five days ago. And my pricing I I was off by $400 on the gold price within two weeks and people were commenting like he doesn't know his spot prices. What's going on? Like silver is way higher right now, gold is way higher. I was like >> absolutely insane that momentum. But but uh as we say like we've been pointing towards this ever since probably at least March 22 um when when Russia invaded Ukraine and the Swift system or Russia was taken off the swift swift system all of a sudden like we all knew what was going to happen but it never did right like is is this that's the question maybe is this the the broken a broken clock is twice right twice a day kind of thing because I'm as you said I'm I'm cautiously optimistic here because I've been hit over the head way too many times. Like, of course, it's great to see silver at $50, gold at over 4,000. Um, the mining stocks today, in contrast, as we record this, >> red completely >> really >> down. Yeah, absolutely. >> Like the the mining stocks are get decimated is a strong word, but they're they're all down two, three, four, 5%. Let me actually take a look at the the GDX real quick. >> Is that just people trying to take profit? And, you know, >> GDX is down 3.2% despite all the record high prices. like we're still above $4,000 in gold. I have no idea where that is coming from, right? So, I'm that's why cautiously optimistic here because we've been hit over the head way too many times. And uh I want to be way more euphoric, but it's really difficult, right? >> I I just want to say it with a smile and and quiet optimism and quiet excitement. Um, I I think in my opinion that with the momentum and the energy behind silver, you know, this could be, you know, like it's going to be very hard for them to bring this down. I mean, they're going to fight trying to get it back down below 50, but it's going to be just a possibly a, you know, a week battle or twoeek battle of it goes up to 51, it goes down a little bit and they struggle it back down to 49 and change over a couple of days. whatever. But it's sooner or later it's going to pop above 50 and hold. And when it does hold, I think the air is pretty thin up here. And the resistance is going to be pretty minimal after that. And then and then I would just advise people um before the boat leaves the dock, you may want to buy whatever else that you want to buy because um I'm in my opinion what I'm think is going to occur um is you know we've seen this dollar dollar and a half swings quite a bit and you know quite a few days like that during the week. So you can see just in the last four or five weeks that silver in U in in Canadian dollars has gone up uh like $156 an ounce which is you know fantastic in the last uh in that period of time. So, um I think we're going to start the next phase whenever that starts will be like a 10% move foreign$5 US spot per day up down half of it down whatever it is we'll start seeing that um and then uh and then after that the next phase I think will be 10 and $20 moves you know per day whatever um and then after that it's game over um you know you you'll wake up one day and all of a sudden it's it's risen$100 or $200 because it's it's just gone beyond anyone's control. And with all the energy that's been suppressing silver for so long, that spring is it will be released and and the energy in that's going to be um immense. So I keep telling people over the years, nothing would surprise me what silver does. I'll be grinning a lot when it, you know, jumps up five and$10 dollars a day and then 20 30 bucks a day and then a hundred bucks a day and whatnot. But, but um that's that is potentially around the corner and um so I would be uh if you have positions left to get, I would get them. >> Um maybe let's let's dissect the do the the first domino a little bit perhaps. And uh I'm still curious why why the market thinks that might have been the trigger, but it it was Jackson Hold's speech by Jerome Powell. Um I think if we wanted to put a finger on it, gold was wanting to to rally, but then August 22nd came, the speech came uh hint at rate cuts and all of a sudden the market just loses its all it its inhibition. It just goes bonkers for lack of better terms. And and gold goes parabolic. It's pretty much a 90° angle line if you want to draw it on a chart and you zoom out. I had Gary Wagner on yesterday from the gold forecast and we zoomed out back to 1979 and it's just a straight line up. Um, but let's dissect that like the the message that the market thinks it's hearing from from that speech by Jerome Powell. What what does the market think is going to happen? Um, and what do you think is going to happen based off that market move based off that trigger? >> Well, they're going to do everything they can to keep the market going up in the stock market. So, they're going to stand on their head. they're going to do everything possible to keep that charade going as long as possible. Um, so that's going to be QE, you know, to huge numbers and that's what in my opinion that's what gold is telling us what's coming. You're going to see another rate cut and they'll continue doing that and they're going to do QE on yield yield curve control and uh gold is telling us that they're already money printing galore. Um, and I would go so far as to say that gold's telling us that, you know, the system is is on the way out. The the the uh the dollar is is in its last legs. And um even though they plan to go to a stable coin digital version of the dollar backed by nothing, backing a another nothing, which is interesting to me. Um that will be just another charade to kick the can down another year or two with with mega printing. uh in a digital way. Um and then we also have to look forward to uh will the US government revalue gold for October or November or whatever whenever they do it. We don't know but you know are they going to do this um uh let me correct myself. It's not a revaluating gold. It's revaluing the currency. But they don't want to say it that way. So you can't revalue gold. you devalue the currency which is going to make gold go to their estimated limit of 13 to 30 grand an ounce US which is been projected by a few analysts. So if that occurs because they're painted themselves into a box um you know that's going to be completely on territory to kind of interpret what's going to happen from there. >> So >> yeah, we're already seeing a parabolic move. The question is what's next, right? and how much further can this rally go? Uh >> I I keep using the words like scary. Um but I'm more more concerned about what that that price move means for any everything but go the precious metals, >> right? Like what kind of environment are we in? Um >> because we we we kept saying like even at 1,200 $1,300 if we see higher prices 4,000 5,000 the world must be burning. Like how close are we from the world burning perhaps Andrew? or maybe are we are we ignoring that like is the world burning right now? >> Well, I guess in Paris it certainly is burning. Um there's a lot of uh a lot of distraction in the world by design with uh commotion and and uh rioting and and regional conflicts which all are indicative of these empires and systems that come to the end of their legs and it always ends in lots of violence to cover up the you know government and and banking shenanigans of of uh inflating the currency to nothing which steals everyone's purchasing power and impoverishes a generation or two. Um this is the same playbook they've used every single time. So um it's not nothing new to me once you understand history on it. Um it's going to be catching the vast majority of people which do not understand what's happening. They don't understand what inflation really is. They don't understand that they're being robbed um every day with printing of money and their currency goes down in value. Um, and they need to they need to um open up their eyes and ears and and start doing something about it because uh they don't want to be a statistic of of the people that in history have lost all their value. >> No, absolutely. No, it's it it's it's mindboggling. You know, my head is spinning. Um it's even difficult to just prepare for these conversations these days. There's like there's so much going on. So it's really difficult to focus um on on one single topic but I want to maybe follow up on something that we've discussed about five six months ago here Andrew and that's the shadow banking system and uh I mentioned to you that I want to discuss briefly first brands and drior um on the auto side in the US uh a big billion billions of dollars are being you know incinerated here there's some fraud allegations miscalculations misacounting whatever you want to call it but um we need to talk about subprime loans and the auto sector is uh is prone to dodgy loans for sure. Um what what do you make of the the collapse of these two auto companies? >> Well, I it's a it's a bellweather signal of of the whole thing is coming down. It's just one leg of the chair that's now collapsed or about to break or whatever. And you know, the other leg is is going to be subprime housing. Another leg is going to be um uh maybe the bond market. Um another leg of the chair will be the commercial um mortgages. So all of that's a disaster and banks are going to be you know completely destroyed by all this stuff. So this is just part of the slow motion train wreck that is unfolding before our eyes. uh repossessions of housing in the states is past 09 levels has been for a while. So you know that was the great financial crisis of our land so to speak which is nothing compared to what's going to happen now. But um you know there was the news was talking about the amount of repossessions and credit um defaults and the auto loan defaults all after that 08 crisis. So why is it this time around there's like nothing being said except for you know channels like like your channel and others that are you know talking about this but mainstream everything is fine the economy is great so um you know in Canada I mean well in the states unemployment rate I mean that's completely a lie um you know it's probably between 20 and 25% unemployment So, you know, if you go back and use the original type of measuring stick that they used way back when, they massage the numbers to whatever they want to have to be to project um a different uh uh picture. So, same is happening all around the world. The economies are all fine and and they're if they're fine, why are they getting ready to institute universal basic income to everybody? And you know, AI is going to replace a huge number of jobs in the very near future. So, they're getting all this stuff set up in place so that when the unemployment goes to some obscene number that they're going to be using a welfare system to pay for everybody so they can exist. um we're we're going to see some his absolute historical events that are going to unfold, you know, from here on for the next years to come. So, run us a bit through that like what what are potential scenarios like we're already at record high prices for gold and silver. Like what could could catapult it potentially even higher? What is priced in already, Andrew? Um well, you know, when you have unemployment, well, they're going to do dollar printing like crazy, so they have to. And um that's going to explode gold and silver even further to a degree that would be normal in Venezuela or Argentina, but it's completely foreign to the rest of the West. you know, like Europe and and North America, we've not really gone through this kind of hyperinflation that's coming our way, but you know, people want to have an idea, just start doing some research with Venezuela and Argentina, and you'll get a preview of what's coming. And so, um, every time they do a a new budget bill, it's many trillions of dollars. They're going to be um the Canadian government's doing the same thing. There's just, you know, Europe is wanting to get into a conflict in Ukraine and send and expand the war. I mean, the countries are all broke. Why do you want to expand the war? Because they need to print more money. They need a major distraction. So, all of this is going to be massively, massively inflationary, which comes right back to um the dollar, whatever currency you're in, whatever country, uh that's going to be destroyed. And if you think gold is high at 4,000 US, that's just today's numbers. I mean, once the inflation continues to to pick up pace, um, you'll see an exponential increase in the in gold in dollar terms or whatever currency you're in. So, with Venezuela, you know, I tracked that for years. January 2018, it was 684 bucks of their currency, the sovereign boulevard, and six months later, it was 90,000 for the same ounce of silver. And then two years after that, July 2020, it was uh 3 5.9 million. And it just kept going higher. It was in the hundreds of millions in a four or five year period for one ounce of silver. And that's because the silver still bought one month's worth of food roughly, but the currency, you know, disintegrated that fast because of the money printing. So people should be just taking a look at some of those countries and uh that will help you understand what's coming. >> Maybe put it into perspective for us as well because the US dollar is fighting a good fight right now. It it is trying to hang in there. It's trying to stay or keep up with gold and silver here right now. Um I I've called it an everything rally because the S&P 500 is higher as well. It's trading at alltime high levels. But I'm I'm personally a bit surprised that the US dollar is doing as well as it is. And please, I I'm using those terms lightly. Um, and we all know the dollar is losing purchasing power, but the Dixie in comparison to other currencies is doing okay the last few days. Like, we're actually going higher, not lower, as one would suspect, with a government shutdown and precious metals rallying like there's no tomorrow. So, can can you put that into perspective for us a little bit? Is that just the last >> hurrah? Um, well, I'm going to say it this way. So, the Dixie showing strength against the other currencies. They're all burning aircraft. They're all going to the going towards Earth to crash. And at any given moment, you know, um if the US dollar isn't burning quite as fast as the other ones, that's when it has its we uh week of strength. Um and it's only in relation to the other basket of crap around the world of currencies. And so I look at it strictly from a a standpoint of purchasing power within the US. And um they promote it. The mainstream promote the strength of the dollar and it's very misleading to the general public. You know, oh the dollar stronger this week. Well, that's only in relation to the other crap is being compared to. So, they're all airplanes flown to the earth. Now, uh there's a uh there's a gentleman uh who did some math on this a couple weeks ago who I believe is well qualified to do it. And um he uh he said that uh the American dollar has lost 99.34% of its purchasing power. So that means and if my math is correct and I change that to a fraction that's 6 point 66 uh t 6.610 of a penny is now what the dollar's purchasing power is and or in other words 710 if you want to round up. So 710 of a penny. Now, interestingly enough, at the time, if you go back to 1930 odd when American dollar and gold was they revalued gold after they did that confiscation stuff at basically 35 bucks give or take. Um you take that number and you go to roughly a month month and a half ago more or less when this report had come out um gold was 3500 and change us. How many times does 35 go into 3500 [Laughter] so it correlates. So, I'm I'm I'm going to go on record as saying I agree with his math because up a 100 times is pretty close to nine nine and 710. And uh and from here it only gets thinner. So, it's it's never going to go negative. It's going to go, you know, in a year it might be 120th of a penny and then it might be 1/200th of a penny and 1,000th of a penny. It, you know, it's going to keep on uh adding zeros to its fraction. And uh so and it was a little startling to me when I first saw it because you know the last number I heard from the US was 2 cents something like that. And I hadn't heard anyone doing any math on it for a couple years until just the other month. And and then I'm like thinking about the gold and of course that's conversion to to US dollars and if it's 35 to 3500 well that correlates. So I'm like it must be very close. And then I thought, okay, if the US dollar is six, 7/10en of a cent, the Canadian dollar is five, six ten of a cent, something like that. And nobody's talked about that for a couple years either. So where I think we are entering in that start of that curve where we start going exponential here in the very near future. um whatever that is a month or two or or longer than that, I don't know. But it's gold is showing us what's what's coming. It's not going to stop because they're printing money into oblivion. And so I don't see a pullback. I'm not saying it can't be pulled back a couple hundred bucks when when some event happens where people's margin calls and whatever and they have a short um um amount of gold on the market, whatever. But that's that's nothing. That's just a a um that's just a a daily blip. But after that, it's right back and it's going to roar forward and do more all-time highs. And it's not going to stop. >> Fantastic. >> However that long is, I don't know. >> But it's still cheap. I've also had someone ask me that the other day like, you know, if it's too late to get in, I said, well, you know, statistically speaking, when you look at the the bull runs on gold and silver, they've all done um, you know, seven or eight times in in those different periods where they've they've they've done, you know, moves up and it's been seven or eight fold every time it's it's happened. So, right now, have we even done a onefold yet? There's still seven or eight to go. Okay. So, like, you know, we're just starting at this position. Even though that seems unfathomable, that the numbers are the numbers. That's what gold's always done. Silver's done something similar. And so, um, seven or eight time up and seven or eight times from like three grand, 3500, whatever they wherever they want to start the number from, um, that's 21 grand. at and a sevenx, >> you know, on the so how long it takes to get there, don't know. Um but uh we're nowhere near and then and then I tell the clients on the alternative is what are you going to do? Hold hold hold uh cash like and I'll give you another analogy that your your viewers would would like. The other day I bought some junk silver. So that's in Canada, that's pre uh 1966 and earlier quarters, dimes, 50 cents, and silver dollars. And I bought two rolls of quarters, one roll of dimes, it cost me $1,000. Now, let's put that in perspective. If I go back to 1966, I could take that same $25 and buy and exchange it for those same rolls. And now those same rolls cost me $1,000 in Canadian currency, which is a 40x, >> which means my dollars have lost 40 times their purchasing power against those lousy rolls of quarters and dimes. Like, I still can't get over that. Like, I I was okay with spending like $200 for a roll of quarters. That didn't bother me that much. But I'm having real trouble coughing up $400 for a roll of quarters. I just I can't I'm not gonna stop. But I mean, >> are we gonna talk about how how much your wage has increased since? >> Um and whether your wage is keeping up with inflation and the devaluation of the currencies. Um I think that's a different discussion for a different for for another day here, Andrew. But uh we do have to put a bow around it here today. But, uh, what wonderful insights. Um, you definitely gave us a few ideas for YouTube titles here as well. Um, really appreciate it, Andrew. Thanks so much for coming on. Um, sproney.com is probably the best website where we can send everybody to find more of your work. >> Yeah, my email is death of the dollarmoney.com. >> Fantastic. Andrew, thank you so much for joining us. Much much appreciated. And, uh, everybody else, thanks so much for tuning in here to sore financially. Exciting times we live in. We're recording this on the day silver broke $50 trading at new all-time high levels. Although I got to be careful saying that the hunt parades I think were were higher during that time. Although does that count? You let me know. Let me know your thoughts down below. $50 a magical number. Of course, we broke through old all-time highs or old highs and that that means a lot. We've seen quite a bit of followthrough as well in the silver price. Really curious what your thoughts are on it. Thank you so much for tuning in. Don't forget to hit that like and subscribe button. helps us out tremendously and we much much appreciate it. Thanks so much for watching. Take care out there. [Music]