gold news

Hello everyone, welcome to Bald Guy Money. And we start this video off on the topic of the Federal Reserve, which according to market expectations will cut the US target interest rate by at least 25 basis points, meaning one rate cut on Wednesday, September 17th, with the outside chance of two cuts in one. So a 50 basis point cut much like we saw in September 2024 leading into the US presidential elections. Now this rate cut expectation is being driven by clear signs of economic weakness in the United

States. And I've spoken about it here on the channel before. But for anyone who needed evidence that what I have been saying since early 2024 is true, well, I think the 911,000 US jobs that the US government just admitted never existed should be evidence enough as it supports my case that Powell isn't necessarily too late, but he was definitely too blind to see the obvious, which was the American economy along with the global economy are in recession. recession. And this is precisely why the market now expects a

total of three rate cuts by the end of this year, despite the fact that official government inflation numbers aren't really improving because the priority for the Federal Reserve has been made clear. Reinflate the bubble at all costs and do it quickly. But as we've seen in the past, the Federal Reserve has never been quick enough. and rate cuts instead of saving the markets and delivering greater wealth have just been the first sign that the bubble is bursting. And many who have been anticipating a major crash in the market

are now saying we have finally reached our 2008 moment and that once the Federal Reserve cuts rates, we will see major corrections for both gold and silver. And what people are expecting is something again like we saw in 2008 following the rate cuts of late 2007 where the prices of gold and silver came down by 34% and 60% respectively from their highs. So in this video as a response to your questions and concerns, I want to show you all what I think we should expect after the Federal Reserve starts cutting interest rates again this

coming week. if we should brace for a big correction in metals prices like we saw in 2008. And that also includes an important a very important update on dd dollararization from a source I have in the Middle East and once that's covered we will finish this video with a special announcement on physical metals versus mining stocks. So be sure to watch to the very end for that announcement. Now, just before we dive in, please remember to check out and support summitals.com as they really help make this content

possible. They have amazing prices on randomyear gold American Eagles, random quarter ounce gold coins, and they have these 10oz sealed and protected Germanmania mint silver bars in stock, too. And I mention them because I just bought two of them myself. And for those of you wanting to sell some gold or silver, but getting low ball offers from your local coin shops, please don't forget that Summit Metals also buys at a fair price for those who may need the cash right now. So, jumping in, as I

showed you all in the intro of this video, there is a growing group of people calling for a major correction in the market, and they are saying that gold and silver will not be spared. And what they're also saying is that we could see 2008 style pullbacks in gold and silver prices, which would bring gold back to $2,400 an ounce and silver all the way back down to $17 an ounce. And this narrative has some people selling their metals in anticipation of buying back at a lower price, while others have just paused their purchases

altogether. Now, what I will say here is that this fear isn't totally irrational because we almost always see some kind of correction in the market after rate cuts are made. And they are usually caused by all the bad things that are going on that forced the rate cuts to happen in the first place. And we may have gotten a little taste of that in April of this year when the S&P 500 flushed down to 4,800, but quickly recovered to make new US dollar highs. And as a side note, I say US dollar highs because when measured in

other major currencies or in gold, it has not made new real highs. So don't be fooled. Anyhow, coming back to metals, although I don't question the possibility of a one or two month pullback like the ones we saw for both gold and silver in November and December of last year. What I do question is how they are being presented and what happens next for metals. And the reason is because if we treat these next cuts as the start of a new rate cutting initiative after a pause that was arguably driven by fake data and

political motivations. It means we should expect, in the case of gold, for prices to move up still over the short term, hitting a range I presented about a month ago here on the channel between $3,750 and $3,850 per ounce, which I expect to be around the top for this year. That said, what we should really pay attention to is the fact that this new rate cutting initiative strengthens gold's price floor around $3,500 an ounce when rate cuts start up again next week. And the reason I say that is because we have

historically seen gold hold or maintain pre- rate cut price levels in the past. And that even includes the 2008 correction where prices came down 34% off the highs. But listen to this carefully, never got below the 2007 pre- rate cut price levels. Now, in the case of silver, it also means we should see some short-term movement to the upside. And I say this even though we have reached my 2025 target for silver of $42 an ounce where I had expected to encounter a little resistance. And although I still think we could see a

slight pullback for silver from here, it is very possible that we test $50 per ounce first before we see a significant pullback where we revisit prices in the $37 to $42 per ounce range. After which silver will likely make its next big move up. Because as is the case with gold, we see silver repeat a behavior pattern after rate cuts. But instead of holding price at the pre-cut level, we usually see it dip below before making the next move up. And that's why I told you all back in March of this year, you

can go back to the video. It was called, "Will silver ever go below $30 again?" I told you all to expect one more dip for silver below $30 an ounce, which we saw happen in April almost immediately following that video. But it's also why I've been telling people who are greedily waiting for another crash in the price of silver to forget it because silver is not going below $30 an ounce ever again. Because even if we experience a major sell-off in the stock market or some issues in the debt

market, the environment and circumstances that caused the major 2008 sell-off in precious metals have changed significantly since then. Starting with the fact that bank liquidity is now basically guaranteed by the Federal Reserve. And for those of you who don't know what I'm talking about, maybe you don't understand what that means or maybe you've forgotten this point as it's been a while since I've spoken about it here in a video, I will remind you. Now, going back to 2008, banks made

a bunch of bad mortgage loans. As a result, they were left holding risky assets called mortgagebacked securities. And I'm sure you've heard that term before, but mortgage back securities are basically a bunch of home loans all grouped together and put in a bond. And as the value of those loans and the bonds that contained them crashed as people couldn't pay back the loans that they had taken to purchase homes, banks essentially ran out of money because the falling value of the assets they held

actually went below what they owed to investors and to people who had deposited money in the banks that made all of these risky loans. Now, the real issue for gold and silver in 2008 started because the Federal Reserve did not accept these risky mortgage back securities as collateral for emergency loans. But bullion banks who trade, store, and manage precious metals could accept them. So, in order to help the big commercial banks, the bullion banks accepted the bad loans as collateral, these mortgaged back securities. and in

exchange lent the commercial banks gold and silver which the banks took and then sold on the market to raise money so they could stay in business which in turn crashed the prices of both gold and silver. Now fast forward to today. The Federal Reserve and other central banks around the world, by the way, now accept a wider range of assets as collateral for emergency loans, including mortgagebacked securities, which means banks can now borrow against the majority of their existing assets directly from the Federal Reserve or

central bank within the country they operate in, who then prints up the money, in the Federal Reserve's case, US dollars, or digitally creates them to bail the banks out without having to involve the bullion banks or crash the prices of gold and silver like they did in 2008. And it is a repeat of that exact scenario, a debt-based liquidity crisis and the flood of funny money that will accompany it that inspired central banks in 2010 to start buying gold again after 20 years of selling their gold.

bringing us to a point today where foreign gold reserves, as I mentioned to you all in a video two weeks ago, are now greater than US Treasury reserves. And it's why I keep banging the table and warning people that the pullbacks will be short and they will be shallow. And what we should be preparing for is not a crash in metals prices, but a boom in metals prices. And the reason more upside for gold and silver may not be far away is associated with a major ddollarization update that I have to

share in this video. And I think it makes gold's role in the global economy as the foundation of our financial system an inevitability a certainty at this point with the US dollar's demise likely accelerating from here. And it's not a topic I talk about often here on the channel and it's one I have told everyone to be skeptical about in the past, but this week really changed everything from my point of view because the progress that President Trump had made earlier this year in securing the

dollar's position in the world via a strong relationship with Saudi Arabia has been severely shaken. Now, I'm not saying this is the end of the US dollar, but it seems that the United States has possibly lost Saudi Arabia once and for all, as well as the support they provide for the American pro dollar. And it came in the form of an attack in Qatar this past week where Israel attacked a meeting of Hamas officials. And the details of the attack are in dispute. And I'm not going to get into the

politics of it because this is not a political channel. But according to a very reliable source that I have based in Saudi Arabia, the Saudis are very upset by this. Not because of the attack itself, by the way, but because equipment they purchased from the United States was mysteriously unable to detect Israeli jets over the Red Sea or Israeli missiles being fired over Saudi airspace in Tatar. And it has the Saudis wondering if Israel has special capabilities given to them by the United States that would allow Israel to attack

Saudi Arabia if needed without Saudi Arabia being able to detect it. And as a result, according to what my sources told me, it has the Saudis reconsidering their invitation to the bricks, as well as some of the deals they made with the United States during Donald Trump's visit back in May, which as far as I see it from a purely financial and economic point of view, puts the US dollar under even more pressure, leaving gold and to a lesser extent, silver as the only real money safe. havens in the event of a

major market pullback. And because of all of these reasons, including my expectation for the dollar index, the DXY , which you're looking at here, to break below 97, which would trigger a longerterm US dollar bare market, I think it's riskier to bet against gold and silver right now than to bet for it. and that instead of focusing on the possibility of short-term pullbacks, which I know many people out there are laser focused on considering the fact that we've made so much price progress

since the beginning of 2024. What I think everybody in the community should be focusing on is what is coming in 2026 and 2027 as the metals bull market not only continues but begins to gain speed. And that is my answer to all the questions I have been getting from viewers on that topic. So with that covered, it's now time for my special channel announcement because this is ultimately a viewer-driven channel. I read your comments. I respond to your requests. That is an important pillar of Bald Guy Money and what I'm doing here.

And I want to announce that this Tuesday I will be doing a special bonus YouTube video on the topic of miners and precious metals. It will include the answers to a lot of questions I've been receiving on the topic, including if people should borrow against their metals to buy miners or sell metals to buy miners in the hopes of getting more upside in this miners bull market. And I will even show you one of the miners I own in that video and how you can compare it to miners you may want to buy. So, look out for that video coming

on Tuesday because it will be a very important video for the community in my opinion. So, with that said, I want to thank everybody who has made it to the end of the video. Please remember to leave a like below as that engagement helps this content reach more people who may need to hear this message. In addition to that, I want to remind and encourage everyone to leave their questions and comments below. I read them all and it absolutely has influence on the direction of this channel, the videos I make and the questions I answer

in the viewer question portion of my videos, which in this video was basically the entire video. So, I want to thank everybody once again for watching. Please remember to take care of yourselves and take care of each other. See you all on Tuesday in that bonus video. Goodbye .