What we've seen as far as gold and silver's price action over the past few months wasn't driven by the United States. In Australia, people are were lining up at coin shops. And this was happening all over the world. And so there comes a point where the paper game in the United States and in London can't continue overwhelming the physical market. Hi everyone. It's Mike and Allan once again with the Gold Silver Show. Alan, how are you doing? >> I'm great, Mike. Thanks. How are you?


>> Great. You know, uh before we get started, I just wanted to remind everybody uh especially anybody new to the silver market that may have just purchased and then they then we witnessed this breathtaking drop. Uh silver is a roller coaster and you need to have the stomach for it. it is a long-term investment. And to me, these are the uh uh times that I use to add to my position. Uh most people are chasing price. Uh and it's best to try to be a contrarian and to uh it it it takes a lot of guts to do it. I think it's it's


not an easy thing to go against your emotions, but uh part of successful investing is controlling your emotions and making sure that they don't control you. So, what have you got for us? >> Yeah. Uh well, I basically wanted to zoom out a little bit and sort of remind our viewers that the bull market is not even close to over. So, I thought we could look a little bit at gold, a little bit at silver, and of course, the ratio between the two. So the first the first thing I have here is IMF data.


Gold now exceeds 1/5if of world reserves. So central banks know what's coming. You can print dollars, but you can't print gold. They're stocking up on it. This is not the end. This is this is a continuation of a really long-term trend. >> Yeah. Well, yeah, but you can see the acceleration of the trend really started in late 23. It it is a long-term trend. in fact uh that you know you can't print you can print dollars but you can't print gold. Uh you know that was in my


first book back in 2007 2008. The point of this video like you said is it's not too late. It was better to be buying gold back in 2007 2008 2009. the longer that we keep on kicking the can down the road, uh, the bigger the highs, the potential highs become because it's all an inverse of what what is the dollar going to do, you know? Uh, it's like inverse, but it's also a magnifier. >> Yes, exactly. And I actually have a chart to show that in just a little bit. >> Oh, okay.


>> So, uh, yeah. So, our next thing here, uh, top assets by market cap. Gold officially becomes the first asset in history to hit $30 trillion in market cap. That's kind of crazy, but yeah, it's it's this is actually just what you just said, Mike, which is that there's so many dollars and you can print them and what happens when you print 30 trillion of them is that the market cap of gold will be 30 trillion. So, it's kind of wild. Yeah, that was one of the uh key premises of the first book is that gold


always does an accounting eventually of the expansion of a fiat currency supply. And it's it's done this throughout history and it's a reliable thing that you can just sort of count on. But it's all driven it it runs in waves and cycles and it's driven by public emotion. And right now the public isn't trusting the dollar uh enough or actually I need to rephrase that. They've trusted it too much in the past more more than it deserves. So >> yeah, I'm reminded of a quote from


Warren Buffett. Uh in the short term markets are a voting machine. In the long term markets are a weighing machine. >> And uh yeah, in the long term the dollar weighs nothing. So [laughter] you're going to need an awful lot of them in order to buy anything of substance. So that's what we're seeing here. >> Yeah. Yeah. >> Yes. Um, one other bit of news here. India unleashes silver as banking collateral with a 10 to1 gold silver ratio declaring silver global monetary


metal. And I've heard a lot of people comment that this implies that the gold silver ratio should be 10:1. And I think this is a huge misinterpretation about what's actually going on in India. So I actually just wanted to clarify that for our viewers. What's going on is that India is setting silver as collateral for bank loans. They're capping the amount of gold that you can pledge as collateral at 1 kilogram and the amount of silver that you could pledge as collateral at 10 kg. So that doesn't


imply that the value between the two metals is 10 to one or that the price should be 10 to one. Nothing like that. It's like if they said you could pledge your house as collateral or up to three cars as collateral. That doesn't imply that the exchange rate between houses and cars should be 3 to one. Not at all. So, it's just interesting that that the bank is allowing gold and silver to be collateral in the first place. I wouldn't get too hung up on the ratio of 10 to1. >> Yeah. Except I do think that that's


probably the area that it's that it's destined for uh simply because of the the shortage of silver as compared to gold. And uh you know we haven't gone into uh a global recession yet. And when we do uh 60% of the you know 2/3 of the silver supply is a byproduct of mining metals that are going that are very sensitive to uh recession risks. And so just when people start rushing toward uh gold and silver, silver as a monetary metal to protect their wealth, that's when the supply dries up. At the at the


same time that demand increases, supply goes away. So that's Yeah. Okay. >> Exactly. Well, we do have a chart of the gold silver ratio in just a minute, but first a couple quick announcements. I want to remind everyone and thank everyone for watching my new series, Hidden Secrets of Value. The first two episodes are already out, so that's very exciting. We've had uh tens of thousands of people watch it. >> I want to congratulate you, Alan. It is a a great series and it's taken a long


time to get here and now it's finally out. This is awesome. >> Yes. Well, thank you so much, Mike. Of course, it's an homage to your series, Hidden Secrets of Money. Uh it it'll never be that big, but that's okay. I really really appreciate it and uh thank you for inspiring me and so many others. So, thank you. >> Yeah. Well, you and I are both going to be at the New Orleans Investment Conference. So, uh people didn't know this until now, but Allen is going to be


there as well. So, uh you know, come on down to the New Orleans Investment Conference and meet us. But look at the caliber of keynotes that they've had in the past. Margaret Thatcher, Steve Forbes, Milton Freriedman, Gerald Ford, Norman Schwarzoff, Ein Rand, Alan Greenspan. This is uh an amazing uh list and it shows you uh what a preeminent investment conference that this is. This is like the the top of of everything out there. So anyway, come and meet us. Uh November 2nd through 5th, I believe, are


the dates. >> Yep. November 2nd through 5th. So, get your tickets now and we'll see you there. >> Yeah. >> Awesome. Uh, so Mike, you asked me to, uh, include the inflation calculator. >> Hi, it's Mike here. Just a quick message. I wanted to welcome the huge number of new visitors to our videos, but point out that less than 15% of our viewers have subscribed to this channel and hit the notification bell. [music] We're heading into some turbulent times, so if you don't want to miss any


updates, make sure you enable notifications. And thank you as always for clicking the thumbs up button. One more thing, at goldsilver.com, we've been providing top-notch educational content for over 20 years. If you'd like to help us continue this mission, we'd be honored to be your precious metals dealer. And now, back to the video. >> Yeah. >> Awesome. Uh, so Mike, you asked me to uh include the inflation calculator um from the BLS because we were talking about silver and it's alltime high of 5250


back in 1980. And it has the same buying power today according to the government CPI of about $218. And of course, we're still not there yet. So we're well below the inflation adjusted high. And this just shows us how much more time there likely is in the bull market before we get to those previous highs. >> Yeah. Yeah. Uh the silver is still a bargain and we're going to show that with the gold silver ratio. But um I also asked you to do the inverse of this to just to give people an idea of where


silver is uh compared to if its previous high in 1980. So let's uh there we go. So it's it's at $12 and is that 61 cents? >> 61 61. >> Yeah. >> Okay. >> Yeah. So still a long way to go. Still another >> long way to go. >> Still another four bagger relative to the dollar and that's just based on the CP lie. Of course, it's probably a lot more than that to account for real inflation. >> Yeah. you've uh put together uh a spreadsheet and a calculator uh that


sort of splits the difference between the original CPI and the new CP lie. Uh and the truth really does seem to lie somewhere in in between, but uh what was the inflation? I can't remember what the inflation adjusted price was compared to the original the shadow stats CPI. Wasn't it close to a,000 bucks an ounce? It might have been 1,999. Like basically 2,000 if I remember correctly. I would have to check the spreadsheet. But yeah, >> which seems insane, but everybody has to remember these are just this is the way


the government used to measure inflation. Those are those are government numbers that we're using. >> So yeah, >> exactly. So let's take a look at the gold silver ratio. Uh and what I did here, so so the gold line is the normal gold silver ratio that everyone's used to. The silver line is basically the price of instead of 1 ounce of silver, I did a 100 ounces of silver. That way we get whole numbers on our scale instead of you know. 05.06 something like that. They're actually


whole numbers. >> So um you can see the symmetry here and you know the the wealth cycle that you've identified Mike and it looks like it's going to close at some point. We don't know what day obviously, but it looks like it's going to invert at some point and that implies that silver will outperform gold by quite a bit when this reverts. >> Yeah, like I said, it takes monetary demand and we've seen the beginnings of that. Uh and but what's interesting is we've seen it pretty much all overseas.


It that uh the what we've seen as far as gold and silver's price action over the past few months was driven wasn't driven by the United States. It uh but you know in uh in Australia people are were lining up at coin shops and this was happening all over the world. And so there comes a point where the paper game in the United States and in London uh can't continue overwhelming the physical market. >> Exactly. Exactly. Um I have the same chart here presented logarithmically. I


don't know if there's anything you want to comment on here, Mike. Otherwise, I have another chart to show. Well, it just shows this uh wealth cycle more clearly and uh the uh amount of reversion and currently we are at yeah show what's the next chart. >> The next chart is the gold silver ratio in gold. It's the same thing we just saw. However, I've also plotted on the right scale the opportunity size in silver to catch up to gold in order to get back to the all-time high or the all-time low


depending on your perspective. So, the all-time high for silver relative to gold was at a gold silver ratio of 14 14 to1 and we're up around 80 85. I made this chart a few days ago. I think the ratio is about 80. And so that implies that silver would have to outperform gold by 5.7 times in order to catch up. So it it doesn't give quote a a date or a number of years, nothing like that. But eventually it would have to outperform by 5.7x to catch up to the previous gold silver ratio. >> Yeah. Well, while we're making this,


we're currently at like 85. So I just uh did the math again and I come up with is you know 85 divided by 14 is 6.07 uh times. So more than six times uh is the leverage. That's but like I said at the beginning of the video, it is a wild ride. So if if you're going to climb aboard, make sure you strap in. [laughter] >> That's right. Wear a seat belt, guys. >> Right. So yeah, very exciting opportunity for silver. So yes, uh a tweet from Luke Groman here. The US federal debt has grown 8.5%


compounded since 2008. So of course we did just hit 38 trillion in the national debt and it's it's compounded 8.5% per year since 2008. And Rick Rule points out not coincidentally gold has increased 9% per year compounded over an even longer time period. So, gold keeping up with the debt. >> Yeah. Yeah. Well, again, that's um was one of the key premises to my first book was gold doing an accounting of the currency supply, the expansion of it. And this is an example of how well it


does it. And it's done this over and over again throughout history. So, uh, that was just something that when I got into this and and made a commitment to it, um, these factors that when I discovered that gold had always done this and it seemed like it would always do it, uh, that's when I just went and, you know, I I used to be, uh, you know, I'd tell people that I was fully diversified, that I own both gold and silver. [laughter] and uh uh and really th for many many years that was my only


investment gold and silver and everybody thought I was nuts but it's turned out to be the top performing asset class of this century so and you know I keep on saying there are these rare moments in history where it's not just the safe haven asset but it's simultaneously the safe haven and the asset that has the single greatest potential gains in purchasing power the precious metals. >> Absolutely. And I'm glad you've been saying that because that's where I got the idea from. [laughter] That's where


that's where I learned how to build my portfolio. So, thank you. >> So, [snorts] yeah. So, this is going back, you know, 25 years or so. And as we look to the future, we got to ask ourselves, do we think the US government is going to be in even more debt? If so, do we think the price of gold will account for it? Because looking at the gold futures market, you can buy gold for delivery six years out. Okay. June of the year 2031. And the cost of doing that is just $4,600 per ounce. >> Like deal. Isn't that crazy?


>> Yeah. It seems like there's a digit missing there. [laughter] >> Should we move the decimal? You know, >> exactly. Likely a steal. So, someone someone down here says, "I'll take the double on that." Um, and Brent Johnson reminds us, "If this pays off, you will be settled in cash and won't ever get the gold." So, he's probably right. >> Yes, he he is absolutely right. Yeah. The um one thing that uh commodities exchanges are really good at doing is


changing the rules. They >> make the rules, enforce the rules, and change the rules at their whim. >> So, >> we're gonna have to do a video about that. >> Yeah. [laughter] >> Okay. Okay. Well, I want to end here with our meme of the day, which isn't so much a meme as something that actually happened. JP Morgan's Jamie Diamond says, "Gold could hit $10,000. When the world's top banker starts sounding like a gold bug, you know, the reset has begun."


>> Yeah. And I do believe that uh so this is uh I do believe that that is what's going on right now. That is the reason for uh gold becoming uh 1/5ifth of global monetary reserves. Uh that is the reason for all the trends that we've we've just seen uh in this video. And uh there this monetary reset it's there there are things that happen very slowly at first and then all of the sudden this is what a Hemingway quote I believe. >> Yeah. >> Right. And uh how how do you go


bankrupt? Well, very slowly at first and then all then all at once. >> Two ways. Gradually then suddenly. [laughter] >> There you go. Right. Gradually then suddenly. And that is you don't want to get caught up in this monetary reset and be trying to buy insurance against it. Uh at the very end once your house is on fire, you don't apply, you know, make your insurance application. then you make it long before and uh it it just does seem like this is something that is happening and it's another one of the


premises of in my first book and it's all playing out. It's taken a little bit longer than I thought it would but it's all happening. It's all true. So, yep. >> I want to thank you. This was a great video. Thanks for putting this together. >> Yes. Thank you, Mike. And thank you everyone for watching.