hey everyone welcome to bald guy money I am bald guy and just this past week we got the first US interest rate cut since 2019 with more cuts on the way as the Federal Reserve scrambles to rescue the failing US economy from a recession that it's probably already in now as we have discussed in past videos this is very bearish for the US dollar and it is already moving down on the US dollar index that measures the strength of the dollar relative to other currencies that is the blue line on the chart here that you see on the screen but it is bullish for precious metals like gold which is the orange line on this chart as it has already responded to the rate Cuts increasing that growing Gap versus the US dollar as it's rallied to new nominal all-time highs and the reason I say nominal is because gold still needs to go up another 4.6% to reach its all-time in inflation adjusted high of $2,743 per ounce set in January of 1980 and I expect we're going to visit that level either by the end of the year or early 2025 nonetheless these new record prices we are seeing for gold as exciting as they are for long-term gold stackers and investors are creating major issues for new stackers and people wanting to get in who expect more inflation as a consequence of the falling US dollar because as I suggested in this March 31st video gold is becoming unaffordable for most people and I've updated this image which I first showed you all in that March 31st video and this shows the trend we are seeing when we connect us personal income data and the falling personal savings rate to Rising precious metals prices and it tells us not only that Americans can't afford to purchase a full ounce of gold anymore with a whole year savings it tells us that gold is less affordable for Americans today than any other period since Richard Nixon took the United States off of the gold standard in 1971 and that includes 1980 when gold made its inflation adjusted all-time high when Americans could still save nearly 2 ounces of gold using their annual savings from their salaries now since I shared that warning on gold nearly 6 months ago I think it's only fair to show you all what this affordability data looks like for silver today then I want to talk about Silver's next move up and when I expect it to happen I will also say a few words on whether or not I'd buy silver with spot above $30 an ounce right now and we'll finish this video with a great question on fractional gold and gold backs which may be a bit controversial but it's something you all need to hear now just before we dive in I want to encourage you all to check out my new free article at Summit medals.com after this video of course it's a deep dive into some realworld examples that show just how important it is to own silver and why the silver haters are wrong when they say silver stinks and for my American viewers if you are looking to buy gold and silver please give Summit medals a shot at earning your business we currently have amazing prices on 1 o Krueger and qu ounce American Eagles as you can see here on the screen the those deals end today so if you've been putting off your precious metals purchases let us earn you with our great prices and great customer service at www.summit.com the link to the site is in the video description below as well as the link to my free article on Silver okay so getting into it I've just shown you all how gold is becoming unaffordable and I expect it to be even less affordable moving into next year and into 2026 as we are only just kicking off in this precious metals bull market and the bare market for the US dollar and with silver making a move up on the top 10 assets by market cap list this week moving from the eighth place into the seventh place it is a sign that silver is on the move too and could be poised to make a similar move up like gold has because even though silver has performed very well this year it's even outperformed gold so far in 2024 as it's now up 31% while gold is up 27% year to date when we look at performance in relation to the US dollar Index I still see opportunity here because we haven't seen Silver continue its Divergence versus the sinking US dollar as we have seen in the case of gold and that's nothing to worry about really because we all know that silver follows gold and as I have demonstrated in past videos it usually takes 2 to 14 months for silver to mirror moves that gold has made and that's based on historic price correlations so despite being above $30 an ounce today I say that silver can still move higher above $40 an ounce and a signal for that will be once we crack resistance at $32 an ounce and hold that level which will trigger a continuation of Silver's Divergence with the US doll and increase the performance Gap we're seeing there just as gold has done so beautifully so far this year and eventually what I expect this to lead to is I expect to see a retest of the 2011 highs because where gold is now less than 5% off its inflation adjusted all-time high silver still needs to move up 118% to recapture the 2011 High which I think is the best Benchmark for silver considering the unique circumstances surrounding the 1980 High which I will cover in another video soon anyhow the reason I see silver making that move up over the next 2 to 3 years and why I think it will be a more sustainable move than it was in 2011 is not because I'm simply looking at that chart and saying it should go back to past highs that's not analysis that is what I call lazy and irresponsible and what I see some people sadly doing here on YouTube the real reason I say that silver should test those 2011 highs again is because of what I'm seeing right here in this data because as gold continues to move up on the back of Central Bank buying pricing more and more people out of the market with each new all-time high it makes that will drive regular retail investors like you like me who unlike central banks are a little more price sensitive to the moves up in the price of gold it will drive them out of gold and increasingly into silver and we've already seen this trend in the growing demand for silver jewelry over the past 3 years and when we add growing industrial demand for silver to that equation and I touch on that in my free article at Summit metals.com I think what we'll see is a continuation of the trend we're seeing in the image right here which is the slow erosion of Silver's affordability which is already approaching its 1980 lows when we factor in personal income and personal savings rates and it's why as I sit sit here looking at this data I say the window of opportunity for silver is shrinking along with its affordability and that it's only a matter of time before we see the amount of silver a person can purchase with their annual savings dip below that 1980 level so if you're new to this and you're waiting for a dip I'm not going to tell you what to do because I bought the last dip on Silver you know the one when people were telling me that silver was going back to $20 and really all we was 2650 I bought that dip and I told the people on my patreon also to buy that dip but if you did not buy that dip consider getting on a purchase schedule now $30 for silver is still not that bad compared to where we're going and that doesn't mean blow all of your money at this price either I've said that we may see pullbacks and I urge you to only buy what you can afford but for those of you who haven't seen this image I shared this here on the channel in July or August I can't remember exactly when it was now anyhow when I showed this I said if you're waiting for a pullback if you're trying to nail the bottom or even worse sell now and then buy back in a crash you may be extremely disappointed and end up paying more than you had anticipated because when gold crashed in 2008 with the major Market selloff it did not get back to the price it was before the first interest rate cuts that we saw in 2007 now does that mean we are currently at the floor for gold and silver I can't say I shared my worst case scenarios with you not long ago and when we compare those allout Market selloff lows with the potential highs that we're going to see in the not to not too distant future those numbers that I've shown suggest that we're actually much closer to the bottom than we are to the top but whether you agree with that analysis or not one thing I can say with certainty is if you did not get on a purchase schedule when I made my previous warnings about the affordability of gold and silver the next best time to get on such a purchasing schedule is right now because as we look at this data I want to remind you all that after the 2007 interest rate Cuts gold eventually broke above $1,000 an ounce and never went below that level again and the same thing will be true for $2,000 an ounce gold and and it will happen at some point for $30 an ounce silver and as we move on to this video's viewer question I just want to kindly ask you all to share your thoughts on what I have said and what I have shown in this video in the comment section below because I read all of your comments I enjoy your comments even the ones that disagree with me but I want to know if you think this analysis is beneficial and if you want to see me continue to track these indicators moving into 2025 and 2026 so again please let me know in the comment section now so moving on to the viewer question for this video and I'm going to do things a bit differently today because I'm going to start off by responding to a comment I got on the topic of last week's viewer question which was about bricks and the revaluation of gold and I'm going to make this really quick as I have an amazing question to get to on the topic of fractional gold and gold backs but I saw this comment and I thought to myself this is too important not to share and educate my viewers on because a viewer named zyo 58 commented that he was thinking about getting out of physical gold once a goldb currency is launched and I have to assume that he's referring to the bricks currency here and he asked me for my thoughts on that decision or those thoughts that he's having and I have to admit that it was frightening to read because some of the narratives that so-called economists and precious metals experts are putting out there have people convinced that they can trust the brics governments to manage a goldback currency despite the fact that every other country that has used Metals as a medium of exchange whether that's been a goldback currency or actually physically trading with the metals itself has diluted and devalued it in various ways throughout history and don't get me wrong I don't think that means central banks shouldn't buy gold or shouldn't be holding gold in reserve it's quite the opposite I I think they should own gold and I think they will continue to buy it as trust in the US dollar falters but I just want to remind you all that just as we could not trust the US government to responsibly manage its gold back dollar from 1944 to 1971 after the Breton Woods agreement we cannot trust any government with our gold or the determination of the price of that gold not only do I think we should keep custody of our own gold gold I also think we should insist that the price of gold floats meaning it can change from day to day as a check and balance to the supply of currency that any government is issuing whether they claim that it's gold back or not whether that's a Western Government or a brics government and that opinion by the way was so controversial that I lost subscribers last week over it but I am not backing down on that stance I do not trust any government with the management of the money supply or the price determination of gold or any other thing that is traded in an economy I trust gold in my hands and I trust what people will give it for me as a determination of the value of that gold so zylo thank you very much for the follow-up question those are my thoughts and now it's time for the main viewer question of this video and it comes from Garfield heathcliffe apparently this guy's parents either loved cats or reading comics either way Mr heathcliffe hello you want to know what I think about fractional gold in the form of goldbacks and I am so happy that Mr heathcliffe asked this question because I have been beating the drum on fractional gold lately and why I think it's so important to own it even if you have a very large budget and don't want to pay the premiums and you want to continue owning and purchasing 1 o coins I still think that you need to consider fractional gold because swinging back to this image from the start of the video based on per capita income and the average annual savings rate the average American is basically priced out of a full ounce of gold at this point that's just how bad things have gotten and companies like goldback are telling people hey we have a solution for you if you're priced out of gold we have this gold note with real gold in it there even advertising it aggressively on Kito right now touting how it's accepted at over 2,000 businesses but when you start to dig into the facts about gold backs and how they measure up against other forms of fractional gold you begin to quickly realize that they're not only a bad deal for people who think they're getting a good price on gold they're also basically useless and this is what I mean goldbacks claim in their advertising that they can be used in over 2,000 businesses and that's sounds very impressive that is Until you realize that there are over 33 million businesses in the USA which means they can only be used at 0.006% of us businesses now you may be saying but they mean stores they don't mean businesses and okay I agree that is probably what they mean in this communication but even when we compare that 2,000 versus the number of retail shops in the United States which is about 1, 180,000 shops that still means goldbacks are only accepted at 0.1 185% of shops so as I said they're basically useless as a medium of exchange but the same may be said for gold and silver bullion I'm sure that very few shops accept those as a medium of exchange as well the point of gold backs and this is what some of the proponents of goldbacks will say is not to be used as a medium of medium of exchange at least not yet the point of buying them is as an affordable store of value in order to save your money against inflation and that is another one of the cases that they make in their advertising well when we take a look at this a little deeper I went online and found this 12th of an ounce gold back at a major dealer being sold for $240 which means per ounce if you were to buy a total of 20 of them you'd be paying $4,800 an ounce which is an 83% premium above the current spot price of gold and when we compare that to the deal that I showed you at the start of the video from Summit medals the US Gold Eagle quar ounce coin we're selling for just under $740 this coin which is recognized around the entire world and an important element of any serious gold portfolio comes in at 2, 95780 per ounce if you were to buy four which is only 12.8% above spot and is a much better price than that gold back I just showed you which is really just a niche product and a novelty not a globally respected product like the US Gold Eagle coin so Mr heathcliffe my answer to you sir is that fractional gold is important and it is going to become more important as gold products that weigh less than 1 ounce become the most commonly traded products in the future with global wages stagnating and savings rates plummeting because of inflation precious metals are becoming less and less affordable as I've demonstrated throughout the entirety of this video and as a consequence of that I think the days of the 1oz coin are numbered and I also think that wealthier stackers who want to guarantee the liquidity of their portfolio need to embrace this shift and get at least a part of their gold Holdings into fractional pieces but gold backs my dear sir are not the product I think they should be buying not when you can get much better gold products at much lower prices so I hope that answers your question with that said that is it for this video I thank you all for taking the time to watch this video please if you enjoyed it leave a like below leave a comment or a question that I may answer in a future video and if you really found this content valuable I kindly ask you to share this with other people this is one of the fastest growing channels in all of precious metals thanks to viewers like you I appreciate you all so much so from me and from Benjamin Franklin I've got Benjamin with me today I want to wish you all a fantastic day ahead please remember to take care of yourselves and take care of each other see you all in the next video goodbye