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 once we hit that level everyone and their mother will be talking about the cup and handle of silver which usually when you have that type of formation you you see a major breakout you know and that's the type of stuff that I'm focused on I don't care about the daily moves in silver to me we're getting to that point and I'm noticing that silver is reacting so well on days that gold is down on days that the market is down you know it it's an industrial metal everybody is concerned about that

because it's an industrial metal and in my view we're about to see the monetary side of silver in a large way you're watching silver News Daily subscribe for more silver is standing on the edge of a historic breakout and almost no one is prepared for what's coming Toby Costa one of the sharpest macroeconomic analysts in the game has been sounding the alarm warning that a global monetary realignment is unfolding right before our eyes and when shifts like this happen silver doesn't just move it

explodes think about it in 1980 silver rocketed from under six to nearly $50 in a matter of months in 2011 it surged from $9 to almost $50 again both times the world was facing Financial instability surging inflation and a loss of confidence in Fiat currencies it's we saw exactly but like what we're seeing today but here's the difference this time the the setup is even bigger we're not just talking about inflation or a temporary crisis we're talking about a global monetary system that is

being ritten in real time central banks are losing control governments are drowning in debt interest rates are shifting and the Dollar's dominance is being questioned the same institutions that once suppressed Silver's price are now accumulating it at record levels the cracks in the financial system are widening and history tells us what happens next silver will Serge gold will follow and those who see it coming will be positioned for a once in a generation opportunity so what's driving this shift

and why do experts like Tavi Costa believe Silver's breakout could be unlike anything we've seen before Stay With Me Because by the end of this you'll know exactly why Silver's time has finally arrived I remember talking to your audience about this not too long ago regarding the you know the potential for such a a pivotal moment in history regarding the appointment of Scott basson and his views on gold and his positioning on gold through his hatch fund back in the days prior to uh taking

up this this role and I still think this is one of the most important things going on it's you know a lot of people are dismissing his ideas for political reasons or sometimes because he used to work for George Soros when the significance of what he's been talking about it's one of those things that usually you don't see many times in history there's a turning point where reserves of gold matter you know for a long time for the last 20 years or so it didn't really matter the dollar in fact

if you look at from a relative to GDP the US is not really the highest amount relative to GDP compared to some places in in Europe for instance but even though we have that situation um the dollar has appreciated versus those other currencies and so clearly that has not matter for the monetary system but now we're in a situ ation where it does matter in fact we're seeing International central banks buying gold like there's no tomorrow and now if you look at their positioning their Holdings

is about at a 50-year highs or 49e highs if you want to be specific while the US is at a 90-year low and so that Divergence is starting to become relevant and clearly the US Administration is looking to ways of changing that policy in a big way and as we see that happening I I believe that that's going to continue to drive gold so DOA have either dismissed his role or dismissed gold itself which has been plenty people not in your audience but certainly in other audiences that have been dismissing regarding you know

either they're young uh they don't know the history of gold they're learning they're getting a crash course about the metal uh The credibility of the metal and why it's so important to restore the anchor of a monetary system so this is uh know quite critical and in my view the next history lesson is going to be about silver we're we're not too far from that so notice what's been happening with the dollar notice the devaluation of the dollar versus other currencies more recently and I think

that's all part of the plan the global economy cannot sustain a world where the dollar keeps going higher and so we're at that moment where reserves of gold matter and the dollar needs to be the value at the same time so I I don't know I don't know another way to say it but pay very close attention to this because this is probably what's gonna set the stage for the investment landscape of of this next decade forces are aligning behind silver in a way we haven't seen in decades this isn't just speculation

it's a structural shift in the financial system and the smart money is already moving Toby Costa has been tracking this closely pointing out the key macroeconomic forces that are setting silver up for an explosive rally and it all starts with the biggest driver of precious metals it's intertile rates for years Rising interest rates have been a headwind for silver but now that's changing the Federal Reserve has signaled that rate cuts are on the horizon and history tells us exactly what happens next when interest rates

drop silver doesn't just rise it surges in the early 2000s when the FED slashed rates silver climbed from under $5 to nearly 50 in just a few years every major silver rally has coincided with a shift in monetary policy and 2025 is shaping up to be no different but it's not just interest rates fueling silver breakout there's also inflation the silent Thief eroding wealth in real time governments have been printing money at a reckless pace and the purchasing power of Fiat currencies is

collapsing the more money they create the more investors look for real assets to protect their wealth gold has already started its move pushing past $2,200 but silver is still sitting far far below its historical highs that Gap won't last much longer and then there's the Wild Card geopolitical instability from trade tensions to banking crises the Global Financial system is looking more fragile than ever just like in the 1970s when inflation and geopolitical turmoil drove silver to record highs today's landscape

is eerily similar central banks and major institutions are quietly positioning themselves and Retail investors are just starting to wake up the pieces are in place the pressure is building and once silver breaks through resistance the speed of the move could be staggering but this is just one side of the equation because beyond the monetary and financial chaos there's another Force driving silver higher one that has nothing to do with central banks or inflation and that's the massive industrial demand that's putting

our saw unprecedented strain on Supply potential for either a revaluation of gold which which would would be one way to fix this issue of the reserves uh becoming an anchor again for for for the treasury market uh is one thing and the second way would be through accumulation of gold itself and a lot of people have dismissed the potential for that to occur again meaning the us becoming a large buyer of gold itself and I think that that could certainly be uh a moment in history that that could uh that we

could be returning to uh we haven't seen this in many uh many many decades and and I I wouldn't shock me at all if we in the process of seeing uh the increase of gold reserves uh once again uh by the US economy and and that would be you know we're flirting with you know we're not losing the the the reserve currency status but we're flirting with it certainly and you know so these types of policies are almost uh it's almost inevitable that they have to happen in order to protect uh the the you know the

this uh the status of the US dollar so so I I do think this is a you know a way of measuring gold the all rols lead to the metal ultimately and in my view we're just at the beginning so you have to kind of think about this as an investor macro investor you know where gold could be five to 10 years from now that is a road map in my view of where we could be and if that's the case you know we bus businesses that are that are linked to those things like miners or maybe other metals like go like silver

um or maybe even other things that tend to have a high beta uh to Gold itself as well uh such as emerging markets and so you know I think these are are really important uh uh changes in in the macro um uh environment that could be uh that could be very uh important as well for uh allocating capital in the future silver isn't just money it's one of the most critical Industrial Metals on the planet and right now demand is exploding at a pace the market simply isn't prepared for we're witnessing a

technological Revolution and silver is at the heart of it from solar panels to electric vehicles from 5G networks to Medical applications Silvers industrial uses are expanding faster than ever and here's the problem Supply isn't keeping up let's talk numbers the solar industry alone accounts for nearly 20% of global silver demand and that number is only growing governments around the world are pushing for Net Zero carbon emissions pumping billions into renewable energy the International Energy agency

estimates that solar energy capacity will triple by 2030 and there's no viable replacement for silver in high efficiency photovoltaic cells that means one thing surging demand then there's the electric vehicle Revolution every EV battery every charging station every piece of electrical circuitry relies on silver with EV production ramping up automakers are securing long-term Supply deals and that's putting additional strain on an already tight Market the same goes for 5G infrastructure which requires silver

coated components to ensure highspeed low resistance connectivity as 5G deployment accelerates worldwide so does silver consumption but here's where it gets interesting despite this booming demand silver supply has been in deficit for four straight years mining production simply isn't increasing fast enough to meet consumption unlike gold which is mostly recycled and stored silver gets used up in industrial processes once it's in a solar panel or a circuit board it's locked away in a product that won't

be recovered for decades and that's why Supply constraints are tightening like never before the silver market is at a Breaking Point industrial buyers are competing with in investors for limited Supply and this tug of war is only going to intensify when you add in the monetary and geopolitical factors we've already discussed the setup becomes clear silver is heading for an unprecedented squeeze but this is just the beginning because while demand is surging silver production is facing serious structural challenges and when

you look at the supply side of the equation you'll see why experts believe the coming silver shortage could send prices Skyrock roeting I would agree with that and I also think that you know that chart is significant because this is a a very um contrarian opinion about the soul situation regarding the Braton Woods era where I think the biggest issue with that era was that the US had to give up a lot of a lot of gold uh as investors and uh especially central banks International central banks were

able to exchange dollars for gold reserves so the US had to provide essentially gold to the rest of the world prior to that era uh the US had had more gold reserves than the entire rest of the world combined and so and then since that era uh we've had a very large decline now what stopped that if you look at the chart What stopped that was actually breaking the gold standard in 1971 so if you want to pick one thing that was positive about breaking the gold sender that I would I would mention

that that would be the one I mean it was the fact that we said all right enough is enough of giving up on our gold uh we got to keep this and so despite the fact that we let the currency go um at least we kept our gold uh you know and I'm speaking although I'm Brazilian I'm speaking as a us I'm a US citizen uh although I'm not a US citizen either but a US worker um and uh but what's funny about all this is is that now we're entering a world where you know when you look at the

dollar itself uh and and there's a chart in that letter that I show uh the valuation of the US dollar versus other feia currencies and that's such a relevant chart because uh there only two other times in history we've had hitting this this level of of extremely overvalue uh uh period of the dollar versus other currencies you know the the moment when people used to talk about you know the dollar is the the the the cleanance of all dirty shirts that you know if you're an investor that that's

you're not really doing anything about saying this I mean you're really reporting the past now that's been what's been happening for the last few years as an investor you want to pay attention to what's ahead you can't just say that when the US is in its most overvalue levels in history relative to other fee currencies not just other heart assets and so I think that if you look at those two precedents that we had in history was 1985 and 1930s 1985 we saw a coordinated act to devalue the

dollar that was an important uh period uh we devalued the dollar quite significantly uh and that sort of inflated the Japanese bubble and Emerging Markets did very well and you know all sorts of markets internationally uh were benefited tremendously from those flows that came out of the dollar into other things um 1930s we're in the middle of the the Great Depression uh 1929 uh Market PE silver demand is surging but the real story is on the supply side because while industrial and investment demand are hitting record

highs silver production simply isn't keeping up in fact we're in the middle of a multi-year supply deficit and the gap between how much silver the world needs and how much is actually available is widening at an alarming rate for four straight years the silver market has been in deficit in 2024 alone Global silver demand reached 1,219 million oun while total Supply came in at just 1,4 million oun that's a shortfall of over 200 million ounces in a single year and this isn't a temporary

issue this is structural unlike gold where almost all the metal ever mined still exists in some form silver is different most of it is consumed in industrial processes never to be recovered to once it's inside a solar panel an electric vehicle or a medical device it's gone and Mining isn't picking up the slack silver production peaked in 2016 and has struggled ever since with fewer large silver deposits being discovered and declining or grades at existing mines the industry is struggling just to maintain current

output many Silver Mines are secondary operations at lead and zinc mines meaning Supply is dictated by base metal demand not silver demand and that's a serious problem to make things worse Global silver inventories are drying up the London bullion Market Association lbma and comx vaults have seen their registered silver stocks dwindle as more investors take physical delivery even the US Mint has struggled to Source enough silver blanks to meet coin demand when available stock piles shrink and

new Supply fails to keep up the inevitable happens prices surge so what does this mean it means we're staring at The Perfect Storm skyrocketing demand shrinking Supply and a market that is on the verge of breaking and when silver shortages start hitting industrial manufacturers The Squeeze will be felt across the entire Market but there's another key metric flashing a massive warning sign right now the gold silver ratio and if history tells us anything it's that when this ratio gets out of balance silver doesn't

just move it explodes and and so uh internationally the the global economy was was was at a a stage where where things were very negative at that time and so 1931 came in a bunch of countries the UK um Germany Japan Canada Austria very large economies of the time uh end up saying well we cannot hold this uh this gold standard domestically so they broke the gold standard 1931 and so that level of lack of discipline monetarily speaking caused the US dollar to actually rally during that period this is why you see at that

chart that I'm talking about that the dollar versus other FIA currencies rallied tremendously at that time and peaked to 1933 1933 came in Roosevelt was you know supposedly uh there were all central banks and and and monetary authorities were meeting uh in London supposedly to discuss ways of sto this uh this issue with lack of growth internationally Maybe revital I the global economy in some ways of trading and and and maybe a new ideas on the monetary side as well but guess what the US didn't want to do

any of that why why is that because the conversations were not going in the same direction the US needed to devalue its currency uh quite drastically which was something that other economies uh you know were a little bit concerned and maybe not in the same page and so Roosevelt came out of that conference uh in a very disruptive Manner and end up devaluing the dollar versus gold uh which caused what and you know the dollar actually devalue versus other FIA currencies as well so I think we're kind

of in a similar moment right now where most Fe currencies have the value versus the dollar recently like I.E the dollar is the cleanest of all dirty shirts and now we're at a peak level where we need to devalue the dollar quite substantially in order to restore growth globally again uh because the US is sucking all the money from the rest of the world and the rest of the world has been staging it on growth and so how do you how do you restore that how do you how do you make everything go up again

in terms of not just in the US but globally well you need a lower dollar uh valuation and so I think that that's inevitable that's in line with bringing interest rates lower and you know that's know the administration cannot say that explicitly pay attention to that they're talking about rates not the dollar but that's ultimately what the impact is it's on the dollar not on rates alone the gold silver ratio is one of the most powerful signals in the precious metals market and right now it's flashing a

massive buying opportunity for silver historically whenever this ratio reaches extreme levels silver follows with an explosive rally and today we're at one of the most extreme readings in history let's break it down the gold silver ratio measures how many ounces of silver it takes to buy 1 ounce of gold over the last century this ratio has averaged around 50 to 70 but during silver bull markets it drops dramatically in 1980 when silver rocketed to nearly $50 an ounce the ratio collapsed to

16.1 in 2011 when silver made its last big run the ratio fell to 30.1 and today it's sitting near 90.1 that's an anomaly that's silver screaming undervaluation every time this ratio has reached these extremes silver has played catchup in spectacular fashion the reason is simple when gold Rises silver lags at first but when momentum builds silver surges with far greater force this is because silver is a smaller more volatile Market it has a history of delivering three to five times the gains

of gold in a true Bull Run and the setup right now it's eerily similar to previous silver breakouts gold is already moving pushing toward new highs meanwhile silver is still trading far below its historic peak of $50 if the gold silver ratio corrects to even 50.1 silver would need to more than double from current levels just to restore historical balance but this time the potential is even greater because while past silver bll markets were driven primarily by monetary factors today's market has a completely new force in

play industrial demand at record levels and a supply crisis unlike anything we've seen before so the question isn't if silver will catch up to Gold the question is how fast and how high it will go and when silver starts its move the leverage in mining stocks could take this rally to a whole new level if it's a way of getting all these noise of the short-term movements we've had especially the upside that we had recently the upper depreciation in gold prices uh from a trading standpoint can

be a bit scary because you're obviously the immediately thing you do as a Trader not as an investor is to be a little concerned about uh this you know such a large movement in the short term now this chart helps you to have a a sense of what could be ahead of us and so the US economy you know a lot of folks have tried to value gold relative to other things like money supply particularly in the monetary base I think the research that a lot of people have put out regarding gold versus the monetary Baye

is not as relevant now monetary Baye is only2 to3 trillion dollar it's really nothing relative to the size of the economy we're talking about 30 trillion economy who cares about $2 trillion here you know on that scheme of things on top of it even money supply now you look at money supply we're hovering around 20 trillion dollars a little more than that and you know the again the economy is 30 Trillium and on top of it what we do have is an outstanding amount of debt of close to $36 trillion so take that

number go back in history that's what I was trying to accomplish with that chart uh what's the outstanding amount of debt uh and then relative to how much we have of gold reserves and you can see clearly throughout history that uh we've had many situations where gold reserves used to be close to you know way above where it is today you know back in the 1940s used to be close to 40% and then and the US had to increase money supply by 150% and leverage up to finance the debt for the war and so uh that moment uh was why

you saw the reserves falling relative to US debt and today we're about 2% if you only go back to the 1970s which you which used to be about 177% you get a back to about uh you know over over 20,000 uh dollars an now so in my view you know the the the the Silver's breakout isn't just about supply and demand it's about something much bigger the entire Global monetary system is Shifting and silver is positioned to be one of the biggest beneficiaries Toby Costa and other top analysts have been warning that the

world is moving toward a massive Financial reset and Silver's role as real money is about to become undeniable it all starts with debt governments around the world are drowning in it the us alone has surpassed $34 trillion of national debt with no signs of slowing down but here's the problem the only way out of this crisis is inflation when governments can't repay their debts they do the next best thing they devalue their currencies by printing more money and when Fiat currencies weaken real assets like

silver surge we've seen this before in the 1970s inflation ran out of control the US abandoned the gold standard and silver exploded from $150 to nearly 50 in under a decade in 2008 after the financial crisis central banks Unleashed trillions in stimulus and silver ran from 9 to $49 in just three years and now the setup is even be bigger the Federal Reserve is caught in a trap after aggressively raising interest rates to fight inflation they're now being forced to reverse course rate cuts

are coming and that means more liquidity flooding the system fuel for the next silver rally and it's not just the US China Europe and Japan are all facing the same pressures but here's what makes this time different the dollarization trend is accelerating central banks around the world are shifting away from the US dollar and increasing their reserves of gold and silver countries like China and Russia have been aggressively accumulating hard assets knowing that trust in Fiat money is fading silver is money it always has

been and in times of fin cial uncertainty it reclaims its role as a safe haven asset that's exactly what we're witnessing right now the cracks in the Global Financial system are widening and history tells us that when confidence in paper money crumbles silver doesn't just rise it erupts and the next phase of this rally it's not just about physical silver it's about the stocks that are tied to it because when silver moves the mining companies that produce it can see gains that leave

even the metal itself in the dust in 20 21 2022 we saw a rotation from growth to value of which we kind of reversed that rotation again but I would say we're seeing something a lot more significant now which I think it's maybe sort of a global rebalancing it's it's it's out of us into other places we notice today and this other few days that the do that the US economy has been struggling you're seeing Chinese equities and Brazilian equities and other parts of the world European equities European Banks

outperforming Mega caps all these signs are showing to investors that there is a rotation or I call it the global rebalancing out of us equities into other things I mean msci world index weight is at a 70% of us equities versus all other countries have you know uh small single digits and so there has to be a change of that and I think we're in the process of seeing that and so I'm paying close attention to this and so um my view is is that uh there's going to be a lot more of that and so Commodities

will be one big uh beneficiary of that we've all shown this chart of commodi so equity ratio being at you know 50 60y year lows and the big question is well it's been there for a long time and it never turned I think the biggest reason why it hasn't turned is because because the dollar hasn't turned the dollar has been performing very well but when you take a look at the 10year performance of the dollar it's starting to roll over and as you can notice especially year today you know other fi currencies are

up quite significantly relative to the dollar itself and I think that's the beginning of that rotation uh or rebalancing and so commodi should perform very well uh merging markets in my view should do very very well because it's a green light on their economy what's the green light on their economy is is when you cap yields and you cap the dollar you can't have a stronger dollar from here so that means you got to cap it the same thing goes to the interest rates you know the US can

leverage up more but it has to lower the cost of the debt so that means lowering rates quite substantially if that's the case the dollar has to give up uh on its on its strength and so that means Emerging Markets are uh have much lower risk than initially perceived maybe a year ago and so those things are going to change quite a lot and we'll probably provide uh big or attract big inflows of capital uh as we see the dollar losing uh losing its value versus other fear currencies Silver's breakout is already

in motion but if history is any guide the real opportunity isn't just in silver itself it's in the mining stocks because when silver surges silver miners don't don't just follow they explode look at past bull markets in the 1970s silver mining stocks gained 10 times more than silver itself in the 2010 2011 rally silver rose nearly 400% but some mining stocks skyrocketed over 1,000% That's The Power of Leverage unlike physical silver which moves one to one with price increases mining stocks

operate on a different scale when silver jumps the profit margins for miners expand dramatic ially turning modest gains in the metal into massive gains in the stocks and right now the setup is even better than in past Cycles silver miners have been beaten down for years trading at historically low valuations many have streamlined operations cut costs and positioned themselves for a rising price environment that means even a small move in silver could send mining stocks soaring take Junior silver miners

for example these smaller exploration and production companies carry the most explosive upside poti potential in past silver silver booms they've delivered 5x 10x even 20x returns but even the major silver producers stand to benefit massively with silver still far below its 2011 highs these companies are operating at prices that barely reflect what's coming the best part the market hasn't fully woken up to this yet retail investors are still focused on tech stocks and crypto but the smart money is

already positioning itself in silver miners hedge funds and institutional investors are quietly accumulating knowing that when silver breaks out these stocks can move faster harder and higher than the metal itself the window to get in at these levels is closing fast once silver breaks through key resistance levels the momentum will be undeniable and that's when the real fomo begins but the biggest question Still Remains just how high can silver go with all these forces colliding monetary shifts supply shortages skyrocketing

demand are we looking at a silver rally like 2011 or something far bigger silver is about 80% lower than it was at the peak in the 70s in terms of silver relative to money supply if you look at the quarterly chart I think we're on the verge of seeing a quarterly High which would be around 40 45 uh I know silver reached the 50 level but but that's the quarterly candle and I think that's the first step once we hit that level everyone and their mother will be talking about the cup and handle of

silver which usually when you have that type of formation you you see a major breakout you know and that's the type of stuff that I'm focused on I don't care about the daily moves in silver to me we're getting to that point and I'm noticing that silver is reacting so well on days that gold is down on days that the market is down you know it it's an industrial metal everybody is concerned about that because it's an industrial metal and in my view we're about to see

the monetary side of silver in a large way as we tend to see throughout history isn't it insane that we're at 3334 in flirting 35 level and the gold to Silver ratio is at a 90 that's just I mean stunning that's just you know gives you the again a green light to invest in the met in my view and so I am extremely bullish silver I'm extremely bullish every derivative of gold right now because gold had its move again it has given us a green light and now we're starting to see the other things catch

up silver miners should do very well silver should do very well Emerging Markets are starting to do well gold miners is starting to make money I mean gold miners haven't made money in a long time we're finally seeing cash flows retest the levels of that 2011 period when finally there were there were uh you know peaked in that in that Peri that moment was a peak I think this is the beginning I think this is the golden uh a golden age of mining in my view and so I'm paying close attention to all

these things I think these are all long-term trends and you know I think the party is just getting started but everything we've discussed the global monetary shift the industrial demand surge the supply deficit and the explosive potential of silver miners is pointing to one inevitable conclusion silver is on the verge of an unprecedented rally and this time the move could be bigger than anything we've seen before Silver's previous all-time high of $50 was set in an era of high inflation and monetary uncertainty but

today the fundamentals are even stronger inflation isn't just a temporary issue it's embedded in the Global Financial system governments are trapped in a cycle of debt monetization interest rates are about to reverse course and the gold silver ratio is screaming that silver remains one of the most undervalued assets on the planet so how high can it go analysts like toi Costa and other leading experts believe silver isn't just headed for its old highs it's set to break new ground some projections

see $50 as just the beginning with $100 silver a real possibility as monetary policies unravel and physical shortages intensify if the gold silver ratio simply reverts to its historical Norm we're already looking at 70 plus silver and if a true Supply squeeze unfolds the upside could be even greater the big moves in silver happen fast they catch most investors off guard but history shows that when silver runs it doesn't just climb it erupts the window to act is before the breakout before the

mainstream media catches on before the masses Pile in so the question is are you prepared for what's coming the financial landscape is Shifting Silver's role in the next monetary era is taking shape and those who see the writing on the wall will be the ones who stand to benefit the most if you found this discussion valuable make sure to subscribe so you don't miss future updates on the silver market and remember this is not Financial advice always do your own research and consult with a professional before making any

investment decisions