Hello everyone, welcome to Baldu Guy Money. And this week, silver hit $50 an ounce for the first time ever. And depending on what data source you use, it's still there with multiple sources showing a Friday close above $50 an ounce with others like Kitco showing a close just below. And we'll get back to that in a little bit. But the most notable part of what happened last week was not just the fact that silver hit $50 an ounce, but it reached that level where it had been close to twice before
in 1980 and 2011 with the gold to silver ratio measuring how many ounces of silver it takes to buy 1 ounce of gold at 80 and the DXY US dollar strength index at nearly 100. And that's simply unprecedented considering how the top of the metals market will not come until both of those indicators, so the gold to silver ratio and the DXY dollar index come down significantly. And to be clear on this, this data fully supports my position that if we are to compare where we are in the metals bull market today
to a point in time during the metals bull run of the early 2000s, we are likely somewhere between 2003 and 2006 with plenty of upside still in front of us as the fundamentals of a major monetary transformation play out in front of us at a growing rate of speed. As more people, including smaller regular investors, albeit at a slow pace, start to wake up to the fact that we will likely undo, at least in part, the 1971 shift from metals to paper. And where it's taken us is to a place where we are starting to see the very early
signs of urgency. And let me emphasize the word early as small groups of people who have never tracked the prices of precious metals before are starting to buy gold and silver in anticipation of what's to come. So, focusing in on that changing reality in this video, I want to discuss the signs of urgency that we're seeing in the precious metals market right now in countries around the world to show you all, especially my American viewers, what is happening and how it's causing real issues in the gold
and silver market. Once that's covered, I want to talk about where this market is going, the potential impact of new Chinese tariffs, and how gold and silver scarcity will ultimately drive prices higher. And that includes new 2026 and 2027 price forecasts for gold and silver. And we'll finish this video off on the very controversial topic of profit taking, what I think the right way to do it is, and how I am doing it right now. And that is a segment I think everyone should watch and comment on.
But please don't comment until you've seen the whole segment as you may be surprised as to what I have to say. Now, just before we dive in, please check out summitmetals.com if you want to buy gold and silver at a great price from a dealer you can trust while supporting my channel and the work I do at the same time. And yes, affordable 1oz silver bars are sold out right now, but secondary market silver coins are still available. And if you're a high- netw worth individual watching this video
right now and you're worried that your gold and silver allocation might not be enough, please take advantage of Summit's consultation services and book a call with them now. And I'll leave the link to do that in the video description below. So, jumping in. As many Americans line up at their local coin shops around the United States very often to sell their gold and silver, we are starting to see lineups in other parts of the world to buy gold and silver much like this one here which was photographed in
Sydney, Australia this past week. But this is not only happening in Australia because we are seeing it in Asia in places like Japan, Singapore, and India. And we're also seeing it in Europe where silver products are going out of stock and dealers across the continent are paying more than spot to buy product back from stackers, which includes Poland where I live, where dealers are currently buying silver, not selling silver. They are buying silver back from stackers at nearly $56 per ounce. And it
may come as a surprise to some of my American viewers who are used to hearing about coin dealers paying less than spot when buying silver back from their customers, but this is the reality outside of the United States that you all need to be aware of. And this real tightness in supply has resulted in something I'm sure many of you have heard of by now, which is price backwardation. And that's where the spot price for something, in this case silver, goes higher than the future price. And this
isn't usually the case as the futures price, and you can check this in the case of gold, is usually slightly higher than the spot price. And this only happens this backwardation when there is either a real supply issue and people are willing to pay more to have the metal today because they don't trust that it can be delivered at a future date or when there is major market speculation going on. And in this case, I think we're seeing a bit of both. Now, does this mean the squeeze on silver is here and that we're headed
straight to $100 an ounce this month? Well, at this point, I don't think we should rule anything out, at least over the short term, as the supply issues that many people have been warning about, including myself, are finally starting to appear. And as a warning, price backwardation, like the one we're seeing for silver right now, has led to explosive price moves up in the past for other commodities. And the most recent example that I can point to is what happened to oil when it entered backwardation in early 2022
in the early days of the Russia Ukraine war as people feared supply issues were around the corner and became willing to pay more for oil now than for delivery in the future. And what happened was we saw the price of oil spike from $90 a barrel all the way up to $130 a barrel at one point as a result of that backwardation. That said, let me please just warn everyone here that the move up didn't last long as a large part of it was driven by speculators in the market. And what's more likely to happen for
silver, at least from my point of view, over the short term, and I'm not saying this to be negative, but it's likely that institutions like the LBMA, which is pictured here, and plays a major role in setting the benchmarks that determine the prices of gold and silver, will cooperate with other major bullion banks. They'll be cooperating with refineries to get the current supply issue solved, even if it's only a temporary fix. And that will look a lot like what we saw earlier this year when
they were having issues delivering gold and people were concerned that they'd run out altogether. So although this is exciting and we are seeing the early signs of being right on everything we know to be true, I just want to encourage everyone to keep their heads and remain calm for now because we got major news this past Friday that the trade war between the US and China may be starting again as President Trump announced that 100% tariffs on China could be making a comeback. And I say could be because I'm recording this on
Sunday and we may see the administration backtrack on these tariffs as soon as Monday. But if they don't, I need to remind everyone that the initial reaction to the April 2nd Liberation Day tariffs under the exact same market fundamentals that we have right now, which is a move away from dollars and towards metals, still triggered a sell-off across the board, including on metals. And although gold and silver held up very well at the end of the day on Friday, we did see oil sell off. We saw platinum sell off. We saw copper
sell off. And although I think these tariffs are ultimately even more bullish for gold and silver, especially for gold, which may not be impacted much by this, it can impact silver at least over the short term, especially if we see a coordinated effort to solve the London silver supply issue. And you need to be aware of that because if we see a pullback driven by those factors, that will be a great time to buy as the pullback like the fix for the supply issue in London right now will only be temporary. So, despite the short-term
risk, I want to be very clear on my message in this video. And that is, as I demonstrated at the beginning of this video, people are waking up to the fact that they need to have some gold and silver. And with so little of it in physical existence, with only 3.1 ounces of silver per person existing on the planet and approximately 1.2 ounces of gold per person, there simply isn't enough to go around. And this fact inspired me to create some new models looking at the average closing price of silver from 1978 to 1980 from 2009 to
2011 and 2004 with a projection out to 2026 and 2027 comparing the average price of silver in each given year. So deliberately ignoring the blowoff top highs to get a more stable set of data. And I compared those numbers to the inflation adjusted prices using US inflation data which is likely too low. I understand that. But it helps in setting realistic conservative price targets. And what the data that I looked at suggests is that as soon as next year, but latest by 2027, we will be looking at an average closing price for
silver above $60 an ounce with a high around $96 an ounce. And for gold, an average price above $4,500 an ounce with a high of $5,776 an ounce. And this is precisely why I say that even if we see a pullback here, you should treat it as a buying opportunity and not an excuse to sell because once again, the data and the models all point to much higher prices for gold and silver. Now, just before we continue to the topic of profit taking and what I'm doing with my mining stocks and physical metals right now, please
remember to visit channel partner landofland.com to find out how to get some land in your portfolio both easily and affordably, including large pieces of land like this 17.4 acre property perfect for preers located in northern Maine, or this smaller lot located in Florida's beautiful Indian Lakes Estates. So, no matter what it is you're looking for, please check out landofland.com or call the number on the screen because I'm sure they have the right piece of land for you. And don't
forget to use code bald guy to get $300 off your purchase and get something that cannot be printed by the Federal Reserve before the Federal Reserve starts printing. Okay, so moving on to this video's viewer question. And remember, you can submit your questions in the comments section of every video I do. I read all of the comments and I select one question to appear in every video I do. And you never know, your question may be the next one I choose. And this one comes from Mikey Riley who asked a
great question and I'm paraphrasing here a bit, but he wants to know why I would sell any of my metals or mining stocks if we're only at the beginning of a major bull market for gold and silver. So, to start, I turned bullish on mining stocks back in July 2023 when most people watching and commenting on my videos were still hating on them. Now, for those of you who have been following me since 2023, you may remember that I said I was entering mining stocks because the downside risk was low, that
they were massively undervalued, and that we were entering one of those unique periods in time where they would most likely outperform the metals. themselves. Even though I was super bullish on gold and silver, too. And even though I took a lot of heat in the comments section back then, a lot of people telling me I was dumb for entering the mining stocks because they were forever losers. Since I entered those stocks, they haven't disappointed with the GDX large minor ETF up more than 116% in 2025 versus a 52% increase
in the price of gold and a 69% increase in the price of silver. That said, what I want you all to remember is, and I've covered this a few times on the channel, is that this is the exception, not the rule. and metals often outperform the mining stocks due to all of the variables that impact the profitability of a mining company that metals themselves aren't impacted by in the same way. And that includes oil prices, rising wages that they have to pay people working in these companies, company mismanagement, of course, and
we've seen plenty of that in mining companies over the years, jurisdiction risks, and to be honest, the list goes on and on. And it's why since the launch of the GDX large minor ETF, gold is up more than 500% while the ETF itself, excluding dividends of course, is up about 100%. Now, coming back to Mikey's question, I need to remind everyone that what I said three weeks ago was that I was planning on selling 10% of my mining stocks when silver hit $50 an ounce because I wanted to hedge my risks
against a pause and potential pullback in the price of silver at that level, which I assumed would disproportionately impact the mining stocks. and my guest last week, Jordan, expressed a similar desire in hopes of buying more mining stocks after a pullback. So, to be clear when answering this question, I am not selling any physical silver. I am not selling any physical gold. I am selling 10% of my mining stocks. And as a followup on that, with my mining portfolio up 175% as of last Thursday, I
went ahead and I did it. I shaved the 10% off the top and I covered my capital gains from my dividend wallet. And my next step is instead of looking to buy the pullback in miners as I had originally planned, I will secure those profits in the physical metals as I'm getting very close to reaching a milestone in my gold stack. And considering how bullish I remain on both gold and silver, I think securing a small amount of profits from admittedly volatile mining stocks and putting them into physical metals themselves is a
good strategy for anyone sitting on large mining profits, which of course doesn't apply to anyone who is just discovering the mining stocks in 2025 as you're at a different stage of your journey right now. So coming back to this image here showing just how scarce how rare gold and silver are. Please remember that there is a rhyme and reason to the things I do. And just like I got nailed in the comments section of my videos for buying mining stocks in 2023 when nobody wanted them. Please
understand that I remain invested in the mining stocks. I have kept in 90 cents for every dollar that I had invested in them last week and I remain in a large profit with a lot more profit on the way in those mining stocks as I remain super bullish on them. but selling to shift paper asset profit in part into hard assets whether it be gold, silver, land, real estate, maybe even you want to pay down some debt is not a bad thing because from my point of view it reduces my exposure to counterparty risk and
secures my profits in something that is tangible and exists outside of the volatile financial system. So Mikey, I hope that answers your question. So, with that said, I want to thank everyone for making it this far into the video. And please remember to share your opinions on what you think about my strategies as they pertain to profit taking in the mining stocks as well as my price targets that I shared earlier on in the video. I'd love to hear from you as your comments always matter here on this channel. And as we wrap up, I do
want to bring everyone's attention to this new Summit Metals tenth of an ounce wallet. This is the upgraded version. The old one used to only hold eight coins. Used to drive me nuts. The new one holds a full ounce of gold. 10/10en tenth of an ounce coins. And I think this is fantastic for people who are building a small fractional stack of gold to protect themselves against higher gold prices. So you don't end up having to liquidate for example full ounce coins to cover smaller expenses in
the future. I do think this is a fantastic product to to keep your coins in and it is available on the website now. So with that said, I want to thank everyone once again for watching. Please remember to take care of yourselves and take care of each other. See you all in the next video. Goodbye.
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