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 Hello everyone, welcome to Bald Guy Money. And right now in 2025, there is a global race going on with approximately 75 countries around the world actively supporting and investing in artificial intelligence with the United States and China in a distant second place, topping the list of biggest AI spending countries in the world. and that has positioned them as the top superpowers when it comes to artificial intelligence according to data from February of this year. That shows how China has made

major advancements in closing the AI performance gap versus the United States. Now, as a result of all of these investments in AI, the value of companies involved in this race has shot up massively. And where just a few years ago being a trillion dollar company was something almost unimaginable and it was something that was extremely rare, there are now four companies on the list of top 10 assets ranked by market cap that have a total value of $3 trillion or more. Yet despite that rise and all the

hype accompanying AI and the companies associated with it, the total share of value concentrated in gold and silver as a share of the top 10 assets has gone from below 50% to holding well above it as all of the gold and silver in the world is more valuable today than all of the other things on this list combined. And it almost defies logic until you realize there is an entirely separate but equally important battle raging amongst countries that revolves around resources including gold which is being

bought up at record levels by central banks. And that battle may soon be expanded to include silver as it has now been added to the United States Geological Surveys list of critical minerals. And that is what I want to talk about in this video. Starting with something I talked about in my appearance on the Manico 64 channel this week, which is game theory for gold. What it means and why it suggests prices are going much higher from here. Once that's covered, I want to talk about game theory for silver and how its

official addition to the list of critical minerals can impact supply, demand, as well as price. And you will not want to miss that. So, be sure to watch to the end of the video for all of that information. Now, just before we dive in, please check out summitmetals.com for great prices, especially on gold American Eagles and silver philarmonic coins, which I think are great buys for the second week in a row now. And while you're there, if you're buying and you're a new customer, remember that you can get this 5oz

silver starter pack at spot when you use code new customer at checkout. And the details are in the video description below. So jumping in, what is game theory? Well, in simple terms, game theory is the study of strategic decisionmaking where the outcome and decisions made depend heavily on the choices of everyone else involved. With the Nash equilibrium being a key part of game theory, stating that no player in a game can benefit by changing their strategy unless other players do the same thing. Now, the easiest example I

can give to make it perfectly clear to everyone watching this about how game theory works is by using the '9s dance craze of the Macarena as an example. Yes, you heard that correctly, the Macarena. Because we all knew how silly the dance was. None of us would have ever gone on the dance floor and done it alone. But if enough cool people at a party started doing it, well, you knew it was only a matter of time before you jumped in and joined them. especially if you were trying to impress some of the

young ladies like I was when this song first came out. Because ultimately the benefits of joining in, which was having a good time and maybe meeting a girl, outweighed the consequences of not joining in. Because even if you looked silly doing it, you may have been seen as antisocial. And it definitely would have made meeting a girl much more difficult in the '9s. Now, as silly as that example makes it sound, it's actually happening on a global scale when it comes to central banks and how

they manage their reserves. And after a major wave of central bank gold selling from the 1980s up to 2010, which we could argue was a form of game theory in itself, as central bankers got caught in what we call a feedback loop, telling them that gold and the gold standard were barbarous relics and that the US dollar was the best asset to hold in reserve. What they're doing now is they are all flocking back to gold in droves. emboldened by first movers like China who has reduced their exposure to US

treasuries by 45% since 2013 in favor of gold and in some cases countries being forced towards gold due to concerns about the neutrality of the US dollar after 2014 sanctions put on Russia following their invasion of Crimea led to a 2022 asset confiscation and those factors have created a gold buying frenzy. amongst central banks, reinforcing what can only be described now as a positive feedback loop that encourages central banks to add gold to their reserves and has resulted in gold for the first time

in decades becoming a larger foreign reserve asset than the US dollar. And this defection from the US dollar standard towards gold is gaining steam as 100 countries currently hold gold in reserve today, which is more than the number of countries that are participating in the AI race. And it's inspired 29 individual countries to buy gold so far in 2025. 20 of which are simply continuing what they started last year with three new joiners adding to their central bank reserves for the first time ever this

year and El Salvador known for its love of Bitcoin adding to its gold reserves this year for the first time since 1990. And with more central banks like South Korea, which hasn't bought gold since 2013, on the way, everything is pointing at a new behavior amongst central banks based on game theory and the Nash equilibrium, which I can best describe as central bank gold FOMO. Because as more central banks enter the game and gold reserves continue to grow against US dollar reserves, nobody wants to be left

behind, nobody wants to earn the label as the last central bank that believed in the US dollar. And this suggests, as I covered in a video back in February of this year, that central banks still have a lot of gold buying to do, as many of them are underweight on gold, especially emerging economies like India, but also stagnating economies and more established economies like my home country of Canada, whose central bank doesn't own any gold at all. And this buying spree, which I estimated back in

February, could last up to 12 years, is only in its early days. But it ensures a steady pipeline of demand and money flowing into gold for the foreseeable future. making gold. From my point of view, the lowest risk investment, if you see it as an investment, I see it as money, but some of you see it as an investment anyhow, as the lowest risk investment that you can make in 2025, especially if you're positioning yourself for the long term and for retirement. And I will share some price targets with you from a past video

shortly. But with gold covered, it's time to move on to this video's viewer question. And this week it's a comment that comes from Charles Wright. Hello Charles if you're watching. And I've been saving this one for more than a month because Charles commented on a video of mine back in September saying that silver's inclusion on the critical minerals list will force the US government to buy more than 2 billion ounces of silver. Now, to be clear, back in September when I released that video,

silver was only recommended to be added to the United States strategic mineral list. And this week, it was finally made official as silver along with copper were added to the critical minerals list by the US Geological Survey. So, cutting through all of the hype that sometimes becomes commonplace in the precious metal space, this is now official and it has real consequences, both good and bad, for silver price. Now, on the bad side of things, because I think it's good to start from there, what some

people are going to use as a bearish or negative argument for silver, specifically the silver haters of the world, is that adding it to the critical minerals list makes starting new silver mines in the United States much easier than it had been in the past. And that can potentially increase the supply of silver, which we know isn't great for price. That said, we have to remember that this is specific to the USA and considering the fact that the United States has less than 4% of the world's

underground silver reserves, most of which is deep in the ground and costly to mine. We shouldn't expect too much on the supply side for silver as a consequence of this, especially over the midterm considering how long it takes to get a mine started and even more so when we recognize that the entire US reserve is only about 740 million troy ounces, which is less than the 1 billion plus global consumption of silver per year. So, with the potential negative side of this for silver covered, it's time to

look at the positives because Charles Wright is right that the addition of silver to the critical minerals list suggests that the United States government will have to stockpile it. And since the United States no longer has a stockpile of silver, having completely liquidated it in 2000 as it was deemed excessive in 1979, that means they are starting from scratch. And with estimates putting US military silver consumption in the neighborhood of 50 million troy ounces per year, that means they have to

realistically stack anywhere from 250 to 500 million troy ounces of silver to secure a 5 to 10year supply. A process that has likely already started contributing to silver supply tightness that has driven the price of silver up more than 60% in 2025 and has put the market in price backwardation where the spot price of silver has actually moved above the futures price of silver suggesting that the warnings Andy Sheckchman has been making for some time about military needs for silver have been 100% spoton. And I want to give

credit where credit is due there. As well as give a shout out to a great supporter of mine, Christopher McCormack. Hello Chris if you're watching. Who warned my Patreon members about militaryindustrial complex silver buying that he had caught wind of during one of our conference calls a few months ago. All of which looks to be true. And what this ultimately means since the United States will probably not buy more than 5% of global supply per year to fill this need as to not create a supply shock or spike the price of silver. It

suggests that we are looking at a good five to seven years of steady and new physical silver demand in a market that is already running multi-year supply deficits. meaning we consume more silver than we can supply to the market which will undoubtedly continue to drive the price of silver up and that is not speculation that is not hype that is fact but where I will speculate a bit is if we see a game theory triggered with silver as we are seeing it being triggered with gold reserves at central banks because if this happens it will

undoubtedly compel new players players, big players, national governments to enter the silver market, causing even more stress on supply and pushing the price of silver even higher. And although it's too early to say this will happen with certainty, I am certainly positioned and prepared for it to happen. But if we see that happen, Charles, because this answer is ultimately for you, you can forget about my conservative price targets for silver over the next two to five years because they will certainly go much higher. That

said, I want to repeat something that I talked about on the Manico 64 channel this week, which is the purpose of my work here on YouTube is to provide realistic and conservative targets that people can use to build their financial plans on. I'm not here to sell you a dream or disappoint you like countless people in the gold and silver space have been doing for more than 20 years now with unlimited promises of $1,000 silver or even higher. I think my targets going all the way back to my 2021 silver

target of $60 per ounce by 2026 have proven to be reasonable and decently accurate. And although I admit prices can still go much higher than that, my target is never a ceiling, but rather a level we should hit. And at the end of the day, what's most important is that we are seeing the same things, which is an objectively bullish environment for precious metals that people need to prepare for and they need to prepare for it today because fiat currencies and the leaders who are guiding these fiat

currencies have let us all down. So, with that said, that's it for this video. I want to thank everybody for making it this far. Please remember if you enjoy the content to leave a like. It makes a big difference in helping this content reach somebody who may need to see it. And please remember, if you have friends or family who need to hear this message potentially to help them in their own decision making in their lives, please don't be shy. Share this content with them as it helps my channel

grow. So, with that said, as I say at the end of all of my videos, please remember to take care of yourselves and take care of each other. I will see you all in a special midweek video this week where I will go back into the precious metals market, provide some new analysis, as well as cover a couple topics related to the mining stocks, which have been beaten down pretty hard. But I want to let you all know why I am still holding the 90% of the mining portfolio that I kept after I took 10% profit some time ago. I want to talk

about where I think the mining stocks are going as well as where I think precious metals are going as a result of everything we talked about in today's video. So, please be sure to tune in for that on the 12th of November because I will be dropping the video then. And until we see each other in that video, take care and goodbye.