so far we have not seen complete panic hi i've got jeff clark on the line the senior precious metals analyst from goldsilver.com how are you doing jeff well i'm doing great mike it's very hot here in northern california where i am this is our eighth consecutive day where the temperature's been over 100 degrees and we're in the midst of rolling blackouts here with our energy use so hopefully we'll get this video done before uh before we lose power uh you wrote a great article recently uh and


so can you tell me about it and uh i might ask you some questions or you can ask me some questions about what i think but uh let's go over your article that is titled uh here's every gold and silver correction in their two biggest runs versus today that's right i thought it was very timely to really look at this because one of the biggest questions we've been getting from everyone for weeks now is when is there going to be a correction how big is it going to be and is it a good time to buy so i


thought it was time to look at this and this is a theme if you will that's been running through a lot of uh gold and silver uh investors so what i did here in this article was to go back and look at all of the corrections in gold and silver and their two biggest run-ups because we've had a big run up here and to look and see what those corrections were like in those other run-ups and compare them to today and if you just scroll through these charts you'll see that there were enormous


amount of corrections i measured every gold correction that was over three percent and every silver correction that was over five percent so from 1979 to 1980 we all know gold and silver really had a big run up then gold uh corrected a total of 11 times silver corrected uh over 12 times just in a 13-month period of time and then the big run up from 2009 to 2011 that was a big gain for gold and silver uh gold averaged a correction of three percent or more uh almost every other month on average silver had


a whopping 23 selloffs of five percent or more during that two two and a half year period of time so when you look at the corrections we've had today they're actually very normal historically to what has happened in the past and the big hint about all this of course is that pardon me in my opinion you want to buy if you're a buyer if you're looking to add ounces you want to buy during the dips and not chase the price when it's moving higher but uh this is a very popular video on


twitter as well i i or excuse me a very popular article on twitter as well i'll point out but mike what was your reaction to seeing this article and all the corrections that gold and silver have had in the past well um you know uh one of the things i said recently in my last video i think it was is that uh there's each one of these pullbacks that we have now is basically setting a new floor the pullbacks are good but they're going to be limited i believe from now on because now the big money is coming in the big


pension funds hedge funds uh the the these funds that don't have any gold in their portfolios uh recently ray dalio doubled his position from half a billion to a billion dollars in his fund in uh gold and then warren buffett uh just bought a significant a sizable number of shares of uh of barrick gold but it's only point two eight percent zero point two eight percent of berkshire hathaway's portfolio so he's there we're going to see the billionaires and these big hedge funds


and stuff accumulate positions and they're going to be using these pullbacks too so i think the pullbacks you know you can do all this technical analysis i just did some and uh but these areas that it would normally pull back to i don't think we're going we're going to see higher and higher volatility and the peaks and the dips are going to get bigger and bigger like i said in my last video uh gold and silver are sort of like a reverse roller coaster they start with these little you know


roller coaster you go to the highest peak and then the the dips and peaks are smaller and smaller as it goes it's going to be the opposite with precious metals and so this is a great article because it shows you uh that these it these pullbacks are nothing to be afraid of they're something that is good and healthy and you want those and it gives everybody an opportunity and you know i started goldsilver.com and i started doing this because i was on a mission to try to save the middle class


right now we're seeing the country most likely going very socialistic which scares me a lot because uh prosperity comes from the uh individual uh voluntary transaction and uh and as you go towards socialism you're having forced government transactions where uh you know a voluntary transaction makes both people better off a forced transaction one party is better off and the other one isn't and uh it crushes prosperity uh but uh when it comes to gold and silver here uh this is uh you know i


when the the middle class of each country in in a um you know in a first world society is about uh 70 of the population so uh as goes the middle class so goes the nation and by getting as much gold and silver into the hands of the middle class it it can i believe sort of save the country um and so that was my goal when i started goldsilver.com was to try and get as much precious metals into the middle class before a really big crisis and we can see that there's a crisis coming up at us fast


and so these pullbacks people should be using them uh they're going to they're they're not going to hit all of the technical targets uh from now on most likely because of the billionaires coming in but you know um back in uh 2002 is when i first started buying gold it was october of 2002 and then the uh i bought when the spot price was around 315 uh and then the price started rising immediately and it ran up into the i was i was waiting for a pullback and waiting for a pullback and waiting for a pullback and


it didn't happen and the price got to like 380 which is a significant percentage increase and i went in and i bought uh some more gold eagles and um the the day that i did that the price started falling and that was a peak and it took like it was over a year before it exceeded that previous peak it was uh like almost a year and a half and so i was just punishing myself you know how could i be so stupid for buying at a peak well guess what i wish i could make that same mistake again wouldn't you love to


buy 380 gold right very good point and yeah at these prices i just i just think dollar cost averaging in and accumulation is more important than where the price is right now because we're going to many multiples of uh where the price is currently right and that that's a good point for me to highlight because if someone is of our opinion that gold is silver are headed here and we're down here you know all these corrections really are nothing but buying opportunities and i just want to highlight something


you said that i think is important as the price continues to rise and we we get into this bigger mania um the volatility is dramatically going to increase both up and down and so yeah not only will the run-ups get bigger but the declines will get bigger as well we've already seen that this year silver has sold off by 31 percent and a week or so ago it sold off by 16 so we've already seen some very big declines but looking back at the chart what were those nothing but buying opportunities


and so i don't think right the way to determine well is mike buying now they can they or is jeff buying now they can just look at the chart and say look this is a big correction this is probably a good buying opportunity yeah you know i wish i had had more cash on the sidelines back in march when uh silver did that pull back to 12 that 31.3 pullback on your chart in your article uh and the gold silver ratio went to 122. uh i i didn't catch that exact dip because i really didn't have uh any


excess cash that i could uh plow into it so um but i really wish i had uh anyway the gold silver ratio um what do you think about that and what does it tell you to buy that's a good point it was at 122 maybe 123 on a daily basis i remember back in march it's now fallen as you and i talk here today mike it's just below 72 uh the long term average uh depending on your time frame how far you go back and how you know what time you actually include is somewhere between 50 and 55 so as dramatic as the fall has been in the


gold silver ratio it's not even back to its long-term average yet so the buy is still actually with silver meaning silver is more undervalued than gold uh currently so i i i'm with you i wish i could buy more gold but it's hard to do that even though the ratio has fallen a lot it's still historically above its long-term average yeah you know whenever it's above 70 i usually buy only silver and then when it's between uh like 40 40 45 and 70 i buy a mix and when it's below


40 45 even 50 when it's below 50 45 then i buy only gold and i use the gold silver ratio for my accumulation plan i really don't sell any of them because i'm measuring the dow gold ratio and the price of gold compared to the currency supply the price of gold times the amount of gold that the us has compared to the currency supply there's a whole bunch of factors the gold real estate ratio and those things have not um gotten anywhere near uh their peak letting me know that this cycle is not anywhere near being over


yet it's just not time to be selling any of my position it's time to accumulate and i really absolutely believe that there is a big banking crisis coming a global monetary crisis uh and i'm prepared preparing for that and uh that will be when there so far we have not seen complete panic and gold and silver are the ultimate giffen goods a giffen good is there was a uh an economist i can't remember his first name i think was richard i can't remember uh but uh from the 1800s that uh was uh that came up with a


theory that there are certain uh goods that don't follow the normal supply-demand price ratio and that uh the uh that gold and he didn't say gold and silver but gold and silver are the ultimate gift in good the more the price rises the more people want them that's a very very good point and that's a good point at which to highlight and kind of wrap this video up for today uh just that uh we're still in an accumulation mode we're nowhere near an exit point uh that's for another day that's for


another time we're all still here at gold and silver in an accumulation mode so if you want to read that article by the way it's on our website it's titled here's every gold and silver correction and their two biggest runs this would be a good document to hold on to look at in the future and when we get the next big correction i know i will be just to remind myself hey corrections are normal in bull markets so mike thanks for joining me on this call today and uh uh we'll look forward to the next one


okay thanks