gold news

 Hello everyone. Welcome to Bald Guy Money. And back on May 4th of this year, I put out a video warning you all that you had four months to prepare for the next big move up for precious metals. And what I said was that based on seasonal price development for metals and looming rate cuts from the Federal Reserve, we would likely see Metals prices start moving up after a summer of sideways consolidation with some pullbacks along the way. Now, this past week marks almost 4 months to the day since I released that video, and we are

seeing the exact breakout in gold price that I told you all to look for. with gold not only breaking above key resistance levels, but doing it for three days in a row, triggering the Morgan rule for those of you who saw my video with David Morgan a few months ago, which confirms a price breakout, but more importantly doing it while setting new weekly and monthly closing all-time highs. And this is a significant move for gold, but not only because this past week was also a big one for silver as it nearly reached $40

per ounce in US dollars while quietly setting new all-time monthly closing highs when measured in euros and British pounds, finally beating the closing highs of April 2011 in both of those currencies. As we slowly see investors and institutions around the world waking up to the fact that gold and silver are not the bubble, they're not in a bubble. In fact, they are the anti-bubble. And these prices are not an accident with higher prices on the way. And that is exactly what I want to talk about in

this video. Starting with the warning signs that this precious metals bull market has entered its next phase. I will explain what phase that is and what I expect to see happen next. Once that's covered, I have an affordability warning for you all. And I will show you just how unaffordable metals are today versus the past, as well as show you how unaffordable I expect precious metals to be in the next phase of the bull market because it will get worse. I will also show you how much gold and silver I

would try to secure now before prices take off. And we'll finish this video on the topic of the final phase of the bull market, when it will happen and how it will end. And this will be important for those of you keeping your eyes on the exits. So watch to the very end for that because that may be the most important part of this video. Now, just before we dive in, please remember to check out and support summitals.com as they really help make this content possible. They're having a Labor Day weekend sale right

now and I saw they have great prices on randomyear gold Krueger rand which are coins that I personally stack a lot of. So if you are looking to buy the breakout in gold, check that out. And while you're there, if you're new to Summit Metals, don't forget your 5 ounces of silver at spot when you use code new customer at checkout. It may be your last chance to buy silver for under $40 an ounce. So jumping in, what stage of the gold and silver bull market are we in right now? Well, in my warning 4

months ago, I told you all that big investors like Warren Buffett were positioning themselves in foreign currencies as they expected the US dollar to continue to weaken. And on the surface, it makes perfect sense. I mean, the dollar is down about 12% versus the euro so far in 2025. And the Federal Reserve is not only expected to cut interest rates in September, but they're expected to do so despite the fact that their favorite inflation gauge, core PCE inflation, came in at 2.9% in the last

reading this past Friday, far from their 2% goal, which is still theoretically in place, even though they've given up on trying to get an average of 2%. That said, the problem with this strategy is wherever you look around the world today, things are ugly and they're really only getting uglier with each passing day, especially for countries that are issuers of traditionally trusted foreign currencies because France and the UK are almost broke. In fact, they may need money from the International Monetary Fund, the IMF, to

avoid default. So, there goes the Euro and the British pound. Japan, whose yen has historically been a safe haven for investors in times of US dollar weakness, is also dangerously close to going broke with national debt more than twice the size of the country's economy. And as a result of this, big market players and important institutions are starting to secure positions on the other side of the fiat currency bet. And what that means is we are at the stage of the game where the whales are waking

up. The big players, the whales, they are waking up. They are getting their lifeboats ready because even if this ship doesn't sink, this US dollar and fiat currency financial system ship. It's not going to come out of this without serious damage. And it could be why we saw the Saudi central bank take a position in the SLV silver ETF recently. It could also be why we saw an unknown anonymous institutional investor, a person who presumably doesn't want anyone to know they are positioning

themselves against fiat currencies and in gold execute the largest darkpool purchase of GLD in the history of the gold ETF. And all of this is happening as new data from Bloomberg that was shared by Tavy Costa this past week on X shows that for the first time in nearly 30 years, central banks are holding more gold in reserve than US treasuries. And that is why I say none of this is an accident. This is the moment of the big short movie for those of you who have seen that movie where the banks quietly

sold their worthless mortgage investments to regular people who didn't know what was happening. But instead of dumping mortgages this time around, they are dumping the US dollar and other fiat currencies in favor of precious metals. Because the event that central banks started preparing for back in 2010 when they became net buyers of gold again is here. And that is a major inflationary event that is needed to reinflate the global economy. And they knew it would happen again. And of course they didn't

say a word about it. They just quietly prepared for it. And the consequences of this will be more inflation, a larger gap between the rich and poor, and ultimately, as I've been saying on the channel, higher asset prices, which includes higher prices for gold and silver. And now that the whales or the big players are positioned, the next step in this bull market is for regular people to start participating in this. And instead of seeing lines at your local coin shop with people selling gold

and silver, which we've seen a lot of over the past year, especially in the United States, a mania in metals, possibly paired with an inflationary panic, will result in lineups at the same coin shops, this time not to sell their gold and silver, but to buy gold and silver. and people will pay much higher prices to get back what they sold as they realize like the data here on the screen shows just how rare gold and silver are. Now, although I am happy that more regular people will wake up to

the fact that paper money is trash and that gold and silver are real money, the problem is that most will join later in the game when it will be difficult to afford the larger amount of metals needed to have ample protection. Because as you can see here, since 1990, the amount of gold an average American household can save, and this is calculated based on average annual household income times the savings rate, has gone down from nearly 7 ounces of gold in 1990 to about 1.1 ounces of gold today as inflation has contributed to

higher asset prices and a growing wealth gap. Now, to get an idea of just how unaffordable gold is going to get, because I expect this trend to continue, we're going to make some simple assumptions on where gold price is going over the next 2 years. The first one being that the price of gold in US dollars goes above the 2011 high by the same percentage as it has in Canadian dollars. And that's an easy one because as the US dollar weakens, I have said to expect international price levels to be

reflected in US dollars for precious metals, both gold and silver. So that would bring the price of gold to $4,839 an ounce. Now, the other method is to simply assume that Rick Rule, who I've had here on the show a couple times before, is right. That roughly 0.5% of globally allocated money is in gold. and that instead of that number reaching 2% as Rick Rule assumes it will where it has historically been also we're going to assume a modest doubling to 1% taking the price of gold to roughly $6,894

an ounce. So if we apply these very realistic scenarios, these are not crazy scenarios. These are very realistic scenarios to the price of gold and compare them to today's average US household income times the savings rate, assuming little will change over the next two years in real terms. This shows you that we are not only getting close to a future where the average person will find it difficult to save 1 ounce of gold per year, but in the more radical scenario here on the screen, you could be looking at a future where a

half an ounce of gold represents one year of savings for the average American household, which highlights why it still makes sense to get in now in the early days of this latest breakout. and why it also makes sense to consider fractional gold pieces. I know some of you don't like them, but listen, let this data at least be food for thought in your mind that you should at least be considering these fractional gold pieces because it is very possible that they may become the most popular forms of gold and the

easiest to transact in moving forward. Now, for silver, as you can see in the data here on the screen, the situation is really the same because where the average American household could save more than 500 ounces of silver in 1990, that number is down to about 100 ounces today based on the average price of silver in 2025. And when we factor in the current spot price for silver, that number actually drops to 89 ounces of silver. Meaning that at the current price of silver, the average American household can afford even less today

than they could in 2011 when silver hit its all-time high. Now, as with gold, I have made some very simple assumptions for the price of silver, starting with achieving a new high as it has in Canadian dollars versus the 2011 high. And that would bring silver to $57.73 an ounce, which is very close to my 2026 price target of $60 per ounce for silver. And the second scenario here is an even simpler assumption. And here I simply assumed that silver could hit $100 an ounce. And I know it's less

likely, at least in the short term. But since I know many of you expect it, I thought I'd take a look at the numbers and incorporate them in here. So moving on to the results. As you can see here on the screen, instead of being able to save around 100 ounces of silver in a year, as has been the case so far in 2025 based on the average price of silver, the amount of silver a person will be able to save in a year will go down to about 60 ounces and potentially lower if we actually see that $100 per

ounce price come sooner than I have said it will. And we have to remain open-minded at this point to that possibility, especially considering the fact that silver is now being classified as a critical mineral by the US Geological Survey. Now, the purpose of this exercise is not to make you feel afraid or to make some of the stackers out there feel rich. Because as I pull up my recommendation from 2021, owning 5 oz of gold and 200 ounces of silver is still the minimum amount of gold and silver. That gives you a solid base of

security if you live in a western country in 2025 as it covers about 6 to 12 months of expenses depending on where you live and what your expenses are. And considering the affordability data that I just presented to you, it is taking longer and longer for people to make that base goal of 5 o of gold and 200 ounces of silver a reality in their holdings. And with that period needed to save up that amount of money having the potential to exceed 10 years in the near future. For people who are totally

unprepared, especially those who are approaching retirement, acting now, which means getting on a schedule now and saving what you can in gold and silver is becoming more urgent than ever. And it's not fear or a doomer message that I'm communicating with you here in this video because the numbers that I've presented say it's true. So with that covered, it is now time to answer this video's viewer question. And please remember, I answer one question in every video I do. You can submit your

question in the comment section below, and you never know, I may pick it to appear in my next video. And this week's question, which it ties in perfectly with the topic of today's video, comes from Helen Brooks. Hello Helen. I hope you're watching. And Helen wants to know how long this bull market can last. And she added there to her comment that she trusts my opinion. And I want to thank her for that vote of confidence. So jumping in, the exact moment this bull market for precious metals started is

debatable, but we're going to look at it from two different points of view to get an answer. And we'll start with my preferred point of view which is that the current bull market in precious metals started in 2011 following the dot bubble. Now you may ask how did it start in 2011 if there was such a big pullback between 2013 and 2015. And my answer to that is although gold and silver may have gotten a bit ahead of themselves in that blowoff top in 2011 and the central banks of the world were able to

successfully calm markets and maintain the status quo in the global financial system thanks to the printing of huge amounts of paper funny money. Nothing has fundamentally changed since 2010. In fact, all the factors that were driving gold and eventually the price of silver up over that time are only stronger today than they were in the years leading up to the global financial crisis. Because, as I've shown you in past videos due to artificially low interest rates, saving in cash is now a complete waste of time. And it continues

to be a waste of time as interest rates offered by banks don't even keep up with inflation anymore. And this is precisely why central banks turned to gold in 2010 anticipating this was going to be the case. In addition to that, with dividend income from S&P 500 stocks remaining low, in fact, they are now approaching all-time lows, the only way to protect the value of your money without taking on huge amounts of risk in the stock market is to buy and hold precious metals. And until something

fundamentally changes in our system, Helen, I am speaking to you. I am answering your question. the situation that has only gotten worse since 2001 will continue to push gold and silver prices up. So, in that respect, I do not see an end to this. Now, that doesn't mean we won't get a pause because just like we saw from 1971 when the gold standard ended, gold entered a major bull market, but it took some pauses along the way, most notably in 1975 and 1976 during the fifth and sixth years of

the bull market before reaching the highs of 1980. Now, without getting into the specifics of what exactly happened here, and I can do that in another video if you want, what this tells me is that if this leg of the bull market started in 2023, the year after the United States seriously violated US dollar neutrality by seizing Russian assets, which I see as a kind of 1971 end of the gold standard moment, this bull market could take a pause in 2027. 7 or 2028 when I may be looking to take profits on

my mining positions, but it won't last long. And the reason why is because if what's happening now doesn't end the current financial system as we know it, and listen to this, because I am dead serious when I say this, the national pension and social security crisis will end it. And that is going to visit us no later than 2033 but likely sooner. Meaning that by 2030 or 2031 if the system makes it till then and I am betting it will make it till then. I am not a tomorrow is the end of the world

kind of guy. The bull market for precious metals will resume after only a modest pullback to prices way higher than where we're at today by the way. So don't wait for that pause to buy. And after that short pause, the next leg of the metals bull market will probably make all the previous runs that we've seen, including what we've seen so far this year, look like small potatoes. So Helen, I want to thank you very much for that fantastic question, and I want to thank everybody who has made it this far

in the video for watching the entirety of my message. Now, if you enjoyed it, please remember to leave a like below. that helps the algorithm propose this video to other people who may need to hear what it is I am saying. And if you think there are people in your life who need to hear this message, please don't be shy. Share this video with them as it helps my channel grow and get the word out. So with that said, as I say at the end of all of my videos, I want to wish you a fantastic week ahead and remind

you all to take care of yourselves, but more importantly, take care of each other. See you all in the next video. Goodbye.