Gold news

 There's a lot of people who are against shorts, primarily long. Uh I love a big short position uh against something I'm in favor of. Uh that's a position that has to be bought in some investments. By the way, silver related uh often Pan-American Silver and Silver Standard in particular, we delivered quasi religious experiences to the short community. And I suspect that if people end up being too short uh PSLV that they could experience just exactly that kind of religious experience. There's nothing

in the world worse than you're watching Silver News Daily. Subscribe for more. Gold just hit an all-time high and the headlines are screaming about its unstoppable rise. But what if that's not the real story? What if gold's record-breaking move is just the smoke and the real fire is building beneath silver? According to Rick Rule, we are standing on the edge of a generational opportunity. Not in gold, in silver. For years, silver has been the quiet shadow, volatile, overlooked, and manipulated. But now, everything is

changing. Gold's surge has lit the fuse, and silver is the explosive waiting to detonate. The market isn't paying attention. The institutions aren't ready. But the signs are everywhere, and rule is making it clear. The best time to get into silver isn't tomorrow. It's right now. Because when this thing moves, it won't crawl. It will leap. And those who wait for confirmation will miss the move entirely. Too much economic nationalism. Uh and frankly, I see the attitude in all three countries

uh of the exploitation of resources for the benefit of the state uh rather than for the benefit of the private parties who seek to do it. One trend that we're seeing uh in the mining business, not just gold, but really across the mining business, is the very rapid increase of social rents on mining. Government royalties, government taxes, uh government off-site concessions, which is to say the expenditure by companies, uh on infrastructure off the mine site that would normally be the responsibility of government. Remember

that governments exist to transfer, which means they have to steal that which they transfer. Mines are fixed targets. had capital intensive targets. They're they're an extremely attractive uh target for governments. The Mexican government would rather that they stole from the Mexican miners. The American government would rather that they stole from the miners. And the Canadian government would rather that they stole from the miners. The idea that there would be a common u unity among thieves uh which is to say

the Mexican, the American, the Canadian government seems very unlikely to me. Having observed these same governments now for over 60 years, Steve P asks, "Does Rick believe we will switch to a digital currency?" Uh, over time, yes. What it will look like, I have no idea. My hope would be that we graduate to a plethora of digital currencies. Uh, I'm a consumer of currencies. I use the Australian dollar, the New Zealand dollar, the American dollar, the Canadian dollar, the Chilean peso. Uh,

and to the extent that there's a whole bunch of smart geeks in some lab trying to design a better currency for me, I'm all for it. My suspicion is that the distributed ledger uh eventually uh will be a technology that's adopted really throughout commerce uh I I think as an example that home titles uh ultimately uh will be recorded and transferred on a digital ledger. There's no reason why currencies shouldn't do that too. And there's no particular reason I can think of other than the agreed and lararseny

of host governments that uh any issuer has a monopoly uh on a medium of exchange or store of value. You I would like as an example myself to be able to transact in fractional gold and silver when I go to Starbucks to buy a cup of coffee. Uh I'd like to have my account debited and their account credited for a fraction of a gram of gold in exchange for my coffee in the morning. Uh, and I think that that will occur in my lifetime. Gold's explosive breakout wasn't just a victory lap for bullion

bulls. It was a warning shot to the rest of the market. Over 8 days, gold surged by $177, smashing through resistance and hitting an all-time high of $3,57. But as quickly as it rose, a pullback began. Profit taking kicked in. Overbought signals started flashing and the price dipped back to $3,14.36. To some, this looked like the end of a run. But to seasoned investors like Rick Rule, this is where the real story begins. Because every time gold spikes, something predictable happens next. Silver starts to stir. The gold

rally has signaled deep fear in the market. fear of inflation, fear of war, fear of central bank failure. It triggered safe haven flows and whispers of rate cuts. But here's what most investors miss. Gold may move first, but silver moves faster and harder once it wakes up. It's done it in every precious metals bull market. And the current gold action is laying the perfect foundation for silver's breakout. Even as gold consolidates near support levels like 2,968 and 2867, the broader uptrend remains

strong. The sentiment hasn't changed, just the timing. And that timing is now starting to align with silver's long-awaited comeback. Silver, in my experience, has been more of a speculative instrument than gold. And silver tends to outperform gold towards the middle or the end of a precious metals bull market. In my experience, precious metals bull markets are led by gold because the first buyer is the fear buyer. Precious metals oscillates between uh greed and fear with the fear by buyer kicking off the move. uh and

then the momentum established by the fear buyer bringing the greed buyer in silver because I suspect of its lower unit cost uh when the generalist money comes down into the precious metal space that money eventually causes silver to outperform gold. And by the way, when the silver bull market starts, you're not going to need Rick Rule to tell you it's here. You're not going to see a move from 33 to 34. When silver moves, it really truly moves. But normally that move takes a while to establish itself

and normally what establishes it is momentum in gold. I don't think that the Basel 3 accords were uh particularly important to the increase in price of gold because the Basel 3 banking accords primarily affected private sector banks. It was ma it being gold was made a tier one asset for banks like Barclays uh Bank of America, Cityc Court, Daichi Kango those types of global banks. The buyers have been foreign central banks. I do believe that the Basel 3 Accords will be important to the gold price

going forward when the private sector steps up to the extent that the public sector has in the gold in the gold trade. uh other aspects of the Basel 3 banking accord uh probably indirectly will benefit gold too in the sense that although the rules around gold were made uh less restrictive there were other rules around the characterization of bank reserves uh and in particular the charact the differentiation in reserves against debt instruments that were held for sale versus uh held to maturity uh

accords that allow banks to extend and pretend uh around uh time losses in their portfolios that I think will uh destabilize the economy a bit particularly in crisis uh and as a consequence likely unfortunately in this case help gold. Rick Rule has always said it silver doesn't lead it erupts. It trails behind gold quietly until one day it doesn't. And when that day comes, silver doesn't just catch up. It overperforms in violent, spectacular fashion. That's exactly what we saw in

1980 when gold soared past $800 and silver rocketed from under $6 to nearly 50 in just a few months. We saw it again in 2011 when gold touched $1,900 and silver exploded from $9 to $49 in under three years. This is the pattern Rick Rule has built his entire thesis on. Silver follows, then flies. It waits for gold to set the stage, then charges through it. And it's not just history. This behavior is rooted in market mechanics. Silver is thinner, less liquid, and more heavily shorted. It's manipulated longer, suppressed

harder, and then when it finally breaks free, the snapback is far more aggressive. Rule points to these precise moments as proof that silver isn't just a precious metal. It's a coiled spring, a time bomb with a delayed fuse, and gold's new all-time high. That was the click. Now we wait for the blast. Part of the question, the the later question is one that I um philosophically take issue with. The owner of the water has the right to to disturb whether it's used for a data center or whether it's

used for irrigation. And it's nobody else's business. If they want to express their satisfaction or dissatisfaction, they should buy the land and they should buy the attendant water and use the water any way they choose. The idea that somebody determines for me what the highest and best use of my assets are in service for their architecture for the future of mankind uh is somebody is something that tells me that that person wants to enslave me. Uh in terms of the original question, uh uh I have over the

course of my career uh participated in the acquisition of lots of kinds of farmland. Uh earlier on uh certainly vineyard land and irrigated almond land in California, but much more recently uh although I don't do it actively anymore, I do it passively, which is means that I invest through farmland management companies. Uh uh I have uh invested mostly in very high quality well-watered uh uh farmland uh in the Mississippi basin and to a lesser extent in the coastal valleys of California, Oregon

and Washington. Uh for me, rural land acquisition is all about the income that it generates through the cycle. So, timberland, uh, highquality irrigated land, it's all about the rents that I can take off the land over time. Yes, I want to own that land for 50 years, but I don't want to be particularly concerned about the impact of taxes on the rest of my portfolio as a consequence of holding land that is in the near- term economically unproductive. Yes, I want to own the land. Yes, I want to own the water. And

yes, I want it to pay current rents. Uh, I I guess that's the that's the whole answer. The idea that I would buy raw land in anticipation merely of price escalation is something that's not of interest to me. I want to experience that price. Right now, silver is doing what it always does before a breakout, consolidating just beneath resistance, loading the spring tighter with every tick. For the past week, silver has been stuck under $34 with every attempt to break through met by selling pressure.

But this isn't a sign of weakness. It's exactly what happens before the launch. Technical analysts are watching closely. The price formed a hammer at $33 intent, a classic reversal signal. The relative strength index is quietly rising, signaling growing momentum from buyers. And the tighter this coil gets, the more violent the breakout could be once silver clears that 34er barrier. If it does, the next levels come fast. $3451. than $3,500. That might not sound like much now, but history shows these are the

moments right before the rally explodes into double-digit gains. And while all eyes have been fixated on gold's pullback, silver has been stealthily securing its uptrend, building a higher high and setting up what Rick Rule believes could be the strongest move yet. This isn't just technical, it's psychological. The market is watching silver fail at $34 again and again until it doesn't. And when it breaks, it won't be a gentle climb. It'll be a breakout years in the making. Uh I suspect that people are by

people I mean largely institutional investors are expressing skepticism around the precious metals bull market. Uh and the easiest way for them to express that dissatisfaction is on the New York Stock Exchange. Uh the best vehicle for expressing either your support or your lack of support for silver uh on a leverage basis in equities markets is the New York Stock Exchange and hence PSLV. PSLV is experiencing a war between those who buy the precious metals narrative and those who don't. Much to my amusement, you

know, there's a lot of people who are against shorts, primarily long. Uh I love a big short position. uh against something I'm in favor of. Uh that's a position that has to be bought. Uh and it's up to it's up to reality whether that position needs to be bought higher uh or lower. Earlier in my career when I was more overtly a stock promoter, there was nothing in the world I liked more than a good short position. uh in some investments by the way silver related uh often Pan-American silver and silver

standard in particular we delivered quasi religious experiences to the short community and I suspect that if people end up being too short uh PSLV that they could experience just exactly that kind of religious experience. There's nothing in the world worse than being caught on the wrong side of a short trap. Uh no I don't. Uh I I don't believe that that gold will never be sold again. I I believe that that gold will be a form of liquidity for central banks. And if gold does extremely well relative to fiat

currencies, I suspect that the banks will need many of the banks will need to access the liquidity uh of gold to f to fund politically expedient domestic spending programs. uh I I understand the idea that as uh a position becomes more concentrated that the price volatility uh among the remaining inventory on the market becomes more volatile. Uh I would suggest that volatility will come into the gold space when you see the retail investor return to gold. What you've seen really for three or four years has

been a predominance of central bank buying. Most months uh in the last 5 years the flow of funds in terms of precious metals oriented ETFs has been negative which is to say retail investors have been disording gold at the same time that institutional investors at least foreign central banks have been hoarding gold. The uh exception to that, of course, would be the Chinese retail market, which has been consistent buyers of precious metals. The forces pushing silver higher aren't just technical, they're

macroeconomic, and they're piling on fast. Let's start with the US dollar. Over the past week, dollar strength has been weighing on metals, capping silver below 34. The DXY index pushed to a two-week high, making dollar assets less attractive to foreign buyers. But here's the catch. This dollar strength is temporary, a reflexive move in a larger trend of weakness. The Federal Reserve is already priced in for rate cuts. Markets are betting on 71 basis points of cuts this year with a 25point trim

expected by July. That's not hawkish. That's a countdown to liquidity. And as soon as the Fed pivots, the dollar retreats. Now overlay the geopolitical backdrop. Israel's renewed military offensive. US China trade tensions simmering just beneath the surface. Escalating conflict in oil regions like the Red Sea and Russia's unresolved pressure on Europe. These aren't footnotes, they're catalysts. They're why investors are sprinting into hard assets, driving gold to 16 record highs

this year. But silver hasn't responded yet. Not fully. And that's the point Rick Rule keeps making. Silver is delayed, not denied. Once the capital rotation begins and once the dollar resumes its slide, silver won't just react. It'll overreact. Because unlike gold, silver is not yet priced for panic. And when the dam breaks, it won't trickle. It'll flood. Well, certainly if you own an asset class that goes up in price faster than the deterioration of the purchasing power of your currency, uh you in fact

benefit. If you look back at the gold price in the period 2000 until today over 25 years uh the gold price has escalated at least in nominal terms in US dollar terms between 8 12 and 9% peranom while I believe that the deterioration the purchasing power of the US dollar is substantially higher than the rate ascribed to it by the CPI. would still suggest to you that in the year 2000 to the year 2025 that holders of physical precious metals uh experienced real gains in purchasing power in excess of inflation.

I suspect that that trend continues if one looks at history as a guide. In the period 1970 to 1980, according to the Congressional Budget, I'm sorry, according to the Office of Management and Budget, the US dollar lost 75% of its purchasing power. Uh during that same period, the gold price rose 30fold. Obviously, gold holders in the period 1970 to 1980 increased their purchasing power during a time of real economic turmoil where most of their neighbors experience a deteriorating material standard of

living. Uh certainly that's a problem. But I have found at least in the last 25 years that the escalation in the rents that I receive on the land or uh in the uh income that I receive from uh harvest rights to the timber has made the tax a much less ownorous issue. People who buy raw land that they don't derive rents from certainly experience uh taxes in their worst form. they're paying uh tax for fee ownership where they're getting no offsetting income benefit from rent. They do that. Uh the idea that

your costs are denominated in a currency that's fallen while the price you receive for the product is denominated in a currency that's accelerating, uh that's virtuous. If you look at the experience as an example that Agnik O Eagle is enjoying right now, uh paying their costs in Canadian dollars which are declining relative to the US dollars while selling their product for US dollars, that increases the margin. Uh right now the Canadian producers enjoy a cost benefit against their American

counterparties simply because their costs are denominated in a currency that's deteriorating much more rapidly than the US dollar. There's a looming crisis no one's pricing in it, and it's hiding in silver's supply chain. For all the talk about demand, it's the shortage that could send prices into the stratosphere. Rick Rule has been pounding the table on this. Global silver production is under strain. Mining output has been declining year-over-year with few new projects on

the horizon. Major miners are cautious, underfunded, and in some cases outright retreating from exploration. Why? Because years of price suppression have gutted the incentive to invest. And now, just as industrial demand is accelerating, the cupboard is almost bare. Meanwhile, silver demand isn't just rising, it's surging. Solar panels, electric vehicles, and 5G infrastructure are vacuuming up supply. The green energy transition is silver inensive, and there's no substitute for its conductivity and performance. And unlike

gold, silver gets used It's consumed. Once it's embedded in a solar cell or a car's electrical system, it's gone for good. The result, a structural deficit that's getting worse, not better. For the fourth year running, demand is set to outpace supply. Inventories are shrinking. The amount of silver available for investment is vanishing. And when that reality collides with financial demand from investors waking up to silver's potential, the market will have no choice but to repric fast

and violently. Rick Rule sees it coming. The smart money sees it coming. But the mainstream still asleep and that's exactly how opportunities like this are born. What I do is I pretend the money's in cash and I think about where I'd allocate it. Let's say that I bought a bunch of silver right now at $34 an ounce. And let's say two years from now it's at $50 an ounce. And let's say just for fun to make the math simple, I had a,000 ounces. I look at the $50,000. And first of all, uh I look at the tax

aspect of what it would cost me to get the $50,000. In other words, the capital gains tax from $34 to $50 an ounce. And I think what I would like to do with the remaining money. Is there an apartment building, a small apartment building that I could use to put a down payment on? Is there a stock that I think is substantially undervalued? In other words, the decision for me, at least on an annual basis, is what is the highest and best use of the resultant after tax capital on every asset class I own. I'm

not sure I answer the I understand the question. The architecture of both instruments is uh effectively the same. they have changed the redemption uh on both vehicles to facilitate the redemption by very large holders and not by very small holders. Uh but the truth is that the real change in both instruments has simply been the issuance of more units in the increase in trading liquidity which is always good and we don't mind it because the energy expenditure to recover the gold which is to say to precipitate off the water

uh would be too costly. The second thing is that when you concentrate a whole bunch of elements besides gold, some of them are fairly toxic and the brines that you would generate as a consequence of uh precipitating the gold out of seawater, the disposal of that would be first of all dangerous and secondly expensive. But the truth is that the concentrations of gold and seawater are so low that given today's energy costs it would be economically efficient to uh one metric has consistently predicted

silver's biggest moves and right now it's flashing redot. The gold to silver ratio, a simple comparison of gold's price to silvers is screaming that silver is absurdly undervalued. Historically when that ratio climbs above 80, silver is due for a massive catchup. Today, we're hovering in that danger zone, and Rick Rule isn't ignoring it. In fact, he's making it the centerpiece of his argument. In 2020, the ratio hit an all-time high of 125. What happened next? Silver surged from

under $12 to nearly $30 in a matter of months. And this wasn't an anomaly. In every major bull cycle, the ratio has reverted fast. When silver caught fire in 1980, the ratio dropped from over 60 to under 20. In 2011, it collapsed from 80 to 30. And in both cases, silver's returns didn't just match gold, they obliterated it. The ratio isn't just a technical curiosity, it's a pressure gauge. When it gets too high, it signals extreme imbalance, one that the market always corrects. And that correction

tends to come in the form of a silver spike. The current spread is unsustainable. Gold is soaring. Silver is stalled. That gap is a spring-loaded setup. And once silver begins to close it, the move will be swift and aggressive. Rule calls it inevitable. History calls it repeating. And investors paying attention call it opportunity. Uh, I'm less concerned now about my privacy than I used to be. I walk around with a cell phone. I pay bridge tolls. Uh there was a time when I was very concerned about any service

that would require a picture of me taken. Uh I have now seen the pictures that the government has of me when I cross borders. Um it's over. uh that doesn't mean that I wouldn't like to have some physical gold and silver outside the system in some fashion so that to the extent that there were real system failures or to the extent that the system decided that they wanted to victimize me that I wouldn't have the medium uh for self-p protection I I would be very cautious in the context of this discussion about how

that physical gold and silver were stored. Many people who feel like I do have an unfortunate tendency to engage in what I call backyard gardening, which is to say they take physical delivery of gold and silver and then they try and hide it around the house. Uh you need some form uh of storage. That's better than that because if you do midnight gardening, you expose yourself to a whole different set of risks. not your government but your so-called friends or your neighbors who might decide that

they want your gold and silver more than they want you to have it. Uh slightly related question here. Mark Austin asks Rick with with the ever probability everinccreasing probability that digital IDs and CBDC are on the horizon which will probably be programmable. How can we use our metals to survive outside the system if liquidity isn't an option? Well, the question becomes, how much liquidity in a crisis do you need? Let's assume that a bag of junk silver as an example when you went to acquire

something with the silver involved uh the merchant uh because of a lack of liquidity scalping you for 10% of the value of your silver as opposed to having a digital bank uh you know central bank digital currency where the government cancelled your currency altogether. Would you rather accept a 10 or 12% markdown or would you be more comfortable with a 100% markdown? The question is all arithmetic from my point of view. All the pieces are in place. The breakout in gold, the tightening silver coil, the

looming supply crunch, and the gold silver ratio flashing a historic buy signal. Rick Rule isn't calling this moment by accident. He's looking at a convergence of forces we rarely see at the same time. And for silver, that convergence is explosive. The technicals show a market ready to run. The macros point to falling rates, dollar weakness, and rising geopolitical fear. The fundamentals scream shortage, and the psychology, it's still asleep. But not for long. Once silver breaks above 34

and clears resistance, the stampede begins. We've seen it before, and rule believes this time could be even more violent. The price suppression, the years of manipulation, the underinvestment in mining, all of it creates the perfect storm. And when silver does move, it won't just climb, it'll launch. This is the window. And according to Rick Rule, it won't stay open for long. If you want to ride the wave, you need to be positioned before it starts. Because once silver starts to run, history shows it doesn't wait. If

you found this breakdown useful, make sure to subscribe so you never miss a move in the silver market. And remember, this is not financial advice. always speak to a licensed professional before making any investment decisions. I'm not an encore shareholder. Uh the idea that uh they had production shortfalls uh and allegedly at least had to borrow or or uh fill on the spot market uh contractual obligations they had on the term market because they were unable to fulfill those obligations from

production is of course problematic. Was the selling overdone or not? I'm in less of a position to say. The company's founder and CEO, Bill Sheriff, uh, is a good friend of mine, a friend in long st a friend of long-standing. Uh, I have a lot of regard for his acumen. I I do need to say I don't own Encore because although I'm not unattracted to US production, what bothers me is with most of the US producers, uh, their deposit size, their mine size is too small. Uh I prefer large deposits irrespective of

political jurisdiction. Uh I prefer deposits that have at least 2.5 or $3 billion of insichu recoverable preserves at today's uranium price. And most of the US producers encore included don't have that.