I'm Charlotte Mloud with investingnews.com and here today with me is Clem Chambers, CEO of a newfn.com. Thank you so much for being here. Great to have you back. >> Yeah, great to be on again, Charlotte. It's always good to be on your show. >> Really good to be speaking with you and I think it's the perfect time. We've got a lot to go into today. Where I thought we could start is with silver. It's been quite a week for silver. It's been on the move, hitting new all-time highs.
And I know you posted a video talking about how this looks like it could be a repricing moment for silver. So, we'll get into that, but before we do, I wanted to ask, what do you think is behind this latest move in silver? What's driving this breakout? Well, traditionally silver is the fast horse in precious metals, but gold has gone on a run because it's very strategic in international stress. But of course, everybody sees gold. And as somebody posted on one of my videos, I'm thinking
of buying copper bars and zinc bars. I can't afford gold, which of course is incorrect. You know, just because you can't buy a lump that big doesn't mean you can't buy a little little piece. And um you know I I uh gold has got expensive and gold has got expensive because governments are buying it and you know Wall Street and the market makers can't control governments. They can mess around with private investors and they can you know muck around with retail because they they've got more
clout. But when governments start to buy this stuff, they have to get out the way and they can't go shorting it and trying to manipulate the price because if China wants to buy it by the ton every other day of the week, it's going to buy it by the ton and it's going to expect to be delivered. So, you know, the people in Wall Street who are super smart, you might not like them, but they're not dumb. You know, out get out of the way of that. Just let the um demand and supply do its thing and, you know, just
take the spread and um way let them go, you know, none of no messing around. So gold runs and then retail which is a silver um buyer and by retail I mean us you know not not companies not governments retail normal people in the streets they go oh ah okay um ah oh gold a bit expensive um I'll buy silver and and retail is a juggernautal it's an absolute juggernautal it was funny today because somebody said would you would you do some work for me and you know I laughed I said well you can pay me in
you can pay me for that a sovereign. And then I looked at the price of sovereigns and it' gone up for where I thought it was. I've got a lot of sovereigns and a lot of gold, but you know, I haven't really I don't really necessarily track this stuff. It's going up. I don't need to sweat the price five times a day. It's just going where it's going to go. And you know, the price of of a sovereign is got I thought this about 500, isn't it? It's 800. And you know, that shows you how much
it's moved. And you know, where's the the high price for gold? Probably, you know, $8,000 an ounce. You know, I I would be thinking, oh, I think I better sell now at that sort of level, which is a 2x from here. Double. Yeah. But silver, you look at silver and well, it could easily go to $100 an ounce again as as a as a uh there's old pilots and bold pilots, but not many old bold pilots. I'm an old pilot, and I'm not very bold these days. and at, you know, $80, $90, I'll be thinking about
leaving. But the the number that I keep thinking about is that they make 3,200 tons of gold every year. They make 25,000 tons of silver every year. That's only eight times. Yeah. So, you know, if that ratio of 80 to1, which it likes to seem to hang around at 100 to one when it's out of fashion, could easily go down to 40 to1 and gold could easily double. So that's a quadruple. So from here you could be looking at 150, 160. That's a stretch, a big stretch, but I don't think 80 is a stretch at all. And
I don't think 100 is, you know, 100's getting a little spicy. So retail sees it and they see a big old coin. And in fact, I was at the gold me um from Saw Financial a few weeks ago and they gave me a 1 oz silver round with their logo printed on it. And I thought that's a nice thing. It's a nice thing, you know, you can buy a bar, you know, whatever. 1,000 ounces, you know, okay, 40 grand, but it's a big old, you know, 1,000 ounces is a lot of ounces. It's a big lump. And um, you know, you can get big
lumps of of silver, whereas you, you know, you need a lot of money to have a big lump of gold. So, that's why retail likes it, but retail has, let's just say, not quite so much nuance. That's the new word for it. It doesn't have so much nuance when it comes to price. And you know beta B2B will never queue around the corner for a for an asset but retail will. So you know as the fast horse silver has got really strong upside potential and you've seen that it's broken out whereas gold platinum
palladium and some other assets are still in a tight range waiting for the news to come from the Fed that they're going to be dropping interest rates waiting to work out um what's next. They're actually poised to to make a decision. The market is whether it should go the next leg or whether it's right at this sort of equilibrium price. Well, silver's gone through the equilibrium price. That was about 50 bucks or 48 bucks. It's now 56 or 57 or whatever it it is right now. So, it's
already run ahead of all the other precious metals. And literally, it's run ahead. So the call is is that the signal for gold, platinum, palladium to suddenly take a a jump up or has silver just, you know, jumped off the starting blocks before the starting gun has gone off. >> I think that's a a great summary of what's happening there and I want to take a little bit of a closer look at gold, platinum, palladium as well. Before we do though, I want to ask about what we saw going on with the CME last
week because I think that seems to be when silver really started to move and I think that people have questions in terms of does that have something to do with what's going on? So, how how would you rank that in terms of silver factors right now? Is that important? >> If if that was the reason that silver really went on a run and was as why it's where it is today, then I would be bearish. I mean, you know, servers blow up. Cloudflare blew up a few weeks ago and took half the internet down with it.
Oh, it can't happen. It's redundant and and it's distributed and no, no, no. Bang, down it goes. Yeah. Oh, we've got we've got three sites and we've got magic um technology that stops this happening and oh, nobody plugged the magic technology in and the guy who was meant to switch it on was away and oh, it's misconfigured. Bang, down it goes. And you know, it's it's it can never happen. We've we've spent millions making sure it can't happen. Bang, down
it goes. So, you know, it it's just complex systems. Uh we have no single point of failure apart from the one we didn't know we had. Oh, bang, down it goes. And, you know, as somebody that's been in this space for best part of uh 40 years almost time and time and time and time again, it happens. Really, back in the day, I had a had a set of servers in Wall Street and Wall Street had a server farm. As you might imagine, back in the day when silver farms were, you know, and well, you could conceive of
their size whereas now it's like, you know, half a half a county um size and um they had like you have to have you got all your servers and all your racks and blah blah blah. And then you've got you've got generators and then you've got batteries. So power goes out, someone sticks a backho through through a power cable outside or whatever. There's a power strike, lightning storm, whatever. down it goes. Generators go and generate electricity for you. What could be better? Well, maybe those
generators maybe maybe they won't work. So, if they don't work, there's batteries and that's got like a day supply of power to this thing on batteries, car batteries, lead acid batteries, whatever. So, someone switches electricity off. I don't know, somebody um you know uh threw the wrong switch. There was a thunderstorm. Anyway, electricity goes, generators go. No generators. Ah, okay. Well, at least there's the batteries. Oh, no. They're all flat. Nobody made sure they were
charged down. It went for a, you know, best part of half a day. And I've had that a few times. One time there was a magic box of reconfiguring all the power. If if the power went down, it would go clickity clack clack and that would be that. Clickity clicky clack if that wasn't. Clickity clack. Nobody configured the box. It wasn't configured. Nobody knew how to configure the box. They flew an engineer in from Canada to configure the box to London. Unfortunately, it went down on a Friday
night when the markets were closed and by Sunday night, the guy managed to get off the plane at Heathrow, get there and gone, "Oh, do chop go and it all came back." So, you know, it's quite capable. It's just it happens all the time. I used to run a financial website with data. And I think the London Stock Exchange went down three or four times in in 10 years, but they always go down when the market gets hot. And the reason they go down when the market gets hot is because the servers get hot. You know,
hey, we've got a system. It can take 25,000 orders per nancond. Yes. Yes. And we've tested it once. We did. Yes, we did. Oh, here comes half our mount. Bang. Oh, we Oh, but that switch wasn't on and that was and it overheated and then Fred was away and la. So when we said 20,000 we it still can it still can and it still may but please don't send that along. So you know all it happens and so there'll be a big um com crash was an example that the London stock exchange will go down 2008 that they couldn't cope with
the order flow. the equipment had never seen it. And of course, you know, when you're doing oh, I don't know, 50 um 50 silver contracts a minute, suddenly you're doing 50,000. Oh, bang. Down go the servers. Oh, we didn't realize, oh, our load balancer didn't load balance and the and the Fred didn't Fred and this and then boom. Time and time and time again. Time and time and time and time and time and time again. It will always happen. Cloud flare a few weeks ago. You know that is
a a global billiond dollar infrastructure provider. That is what they do. Boom. Down it went. Yeah. So what happened at the CME doesn't take a bond villain to do that. It takes a bit more traffic than normal. Um something weird. Um some guy didn't show up for work, some update that wasn't checked properly. You know, it's myriad myriad of reasons and it and it happens a lot. So don't get paranoid about evil forces. And of course, it will absolutely go down when the market is a fast market.
That is the pinch point. And actually, you know, one should bear that in mind. Um, if you're a trader, you know, you're wait, you're you're imagining that this is going to go through the roof or through the floor and and your provider site goes down, you know, your your broker, they can't cope with every Tom, Dick, and Harry logging in trying to sell their Microsoft or buy their Microsoft, you know, they just can't. It's just they they're not configured for 50% of their customer base showing
up. They're only configured for 2%. Yeah. So in real fast markets, it is you are actually in jeopardy. So it's always best to um get in ahead of that if you think it's coming. >> Yeah. Okay. Okay. I think I I understand how you're explaining that right now. So these things can happen, but it does tend to happen when things are are getting a little bit hot, which could be the case for for silver. And so meanwhile, we've got silver with the retail crowd coming in and you're
talking about what's going on with gold. So gold hasn't been seeing that. Of course, it's at historically high levels, but we haven't been seeing that same breakout in gold that we've been seeing in silver this week. And I think you mentioned that gold is more waiting for the next Fed meeting and people are kind of waiting to to see what happens there. So can you talk a little bit more about that? What do you think would be the the trigger for gold's next move higher? Well, gold is really just a
thermostat of of geopolitical stress because it is the currency of conflict. Yeah. You you if you get into a punchup at any scale at all and people particularly if you're losing that conflict, people won't take your paper, won't take your bonds, won't take your promises, they'll just take gold. And that's the same for everybody. And you know, ultimately that applies to all countries. So, if you are a country, any country you care to mention and you're seeing, you know, China tell Mr. Trump
or President Trump a few days ago that they're going to have Taiwan is theirs. Excuse me. Um, you don't mind, do you, too much? Cuz it's ours and we're having it. And you're you are I don't know, Indonesia. You better go. Oh, I think we need to buy some gold. Oh, Chancellor, buy some gold, will you? Yeah. A couple more tons. Uh, and next week a couple of more. Yep. Get some in. Will you get some in because gold is bullets. Yeah. So, if you got 138 countries or however many there are
going, "Oh, he said what? Oh, no. Ah." And going a few more hundred weights of gold, says Van 2. Um, you know, that mounts up. And that is demand that you can't fight. you know, if if retail suddenly gets a gets a, you know, flee in its ear. Oh, we got to buy gold. Oh. Oh, let's buy some sovereigns. They they just get pushed around. Or back in the day, you you you jump onto a site that sells gold coins are out of stock. Out of stock. I want to buy some silver. Out of stock. Yeah, you can do that to
retail, but you can't do that to, you know, Malaysia or India or um Saudi Arabia or France or Poland, which is in the news, saying we're buying some gold. I wonder why. Um and and that is the ultimate driver of all this. Yeah, cuz gold everything else comes along with it. So that is the 800 pound gorilla. The the fast horse is silver, which is a retail reaction to that. So, you know, they're they're chipping away at it. they're chipping away then they're not going to stop chipping away with it and
at some point you know whoever's um chip bringing it in will say oh we're running a bit lowh and and that demand will just push the price and and that's what's pushing the price and you know people go oh don't say that about gold is for well who's buying it who's the big buyer China why would they be buying it they they've got loads of gold mines you know oh they say oh well they don't want to have the dollar they probably haven't had the dollar for a long time you know If I'm a
country and I've got say I've got $500 billion of of US dollars, okay, I just ring up an investment bank and say, "Yeah, hedge that for me, will you?" And they go, "Yeah, sure." It takes a few days. Hedged. So that means I don't have it anymore. I might have it in my drawer. It's all I got $500 million. Yeah. No, it's gone. It's all hedged. Yeah. So, you know, they don't have to sell dollars to get gold to protect themselves from the dollar. But they want gold cuz you can't magic
gold out of thin air. Hey, we'd like you to pay for these raw materials and gold, please. Oh, okay. And will you take a little letter that says I owe you? No. Ah, would you put it on a battleship and sail it over, please? Oh, okay. That's how they used to do it in the Second World War. Submarines or battleships. Yeah. And because gold is the currency of war and we all know, you don't have to be a genius to know that global stress is going up and up and up and up and up. Now, if it pauses or people get
distracted, you know, nothing ever goes up in a straight line. It, you know, it it's it's pausing. It's repriced and then something will someone will shout at somebody and it'll go or someone will have a meeting and say, "Yeah, this 70,700 tons of gold we got, I think we need 2,000 or whatever." They go, "Yeah, okay. Okay, boss. We'll buy 10 tons tomorrow and we'll buy another 10 tons on Friday and we'll buy another 10 tons on Monday." and something goes
and that's what's been going on. It is it is central bank as if that's anything to do with money supply. It is government central um strategic asset purchases that's doing this. And is there any reason that that should go into reverse? No. I mean not Russia or Ukraine. Even if they stop the war tomorrow, you're going to have Russia sat on that that line of demarcation looking over the barbwire at Moldova and Poland and and Estonia and Lithuania. So, you know, that's not going to go
away. And that's not even the big deal. Venezuela is not even the big deal. China v America on conflict on any level, that's just, you know, that's just huge. And that's what's driving gold and everything else follows. I do I remember from last time that idea that gold is the medal of war and I was going to ask you are there any particular flash points that you are going to be watching in 2026. It sounds like more though. Okay. All right. Um >> it's just about Taiwan.
>> Yeah. Now, Taiwan, if people aren't familiar with the with the history, when the um Shanka and his crew, which the communists beat um in their civil war, they jumped over the straight onto Taiwan and said, "Come and get us." And the communists went, "Don't see the point in that. We've got a whole country to rebuild and things to sort out." And um Taiwan is unfortunately quite difficult to do anything about. You you know, forget about it. And then, you know, as time goes by, Taiwan says,
"Where are America get sticks its ore in which why not? That's what America does with these things." And and Taiwan says, "We're an independent country." And China said, "No, no, no. You're part of China. That's always been part of China. You you belong to us." And they said, "No, you don't." And that's that's the flash point. And China, she I want to call him Z, but she President Xi has made it sort of like he that's the thing
he's going to do. He's going to get Taiwan back. That's the thing I want to be in the history books that say and she got back Taiwan to do and that's that's his big that's his big thing. He's going to get back that bit of China that's floating out there and needs to be back in the motherland. Well, and they can probably do it now, but it's going to create an absolute storm if and when they try it. And it's meant to be 2027 because they're on record saying the um People's Liberation Army
will be ready in 2027. They don't actually say for what, but you know what else they're going to be ready for? Ready for a for a for a barbecue. Well, I suppose of sorts. And you know, that is the flash point because I mean I I I mean uh America can't say, "Well, we won't defend Taiwan because they promised to." But you know, America is so reliant on China these days. And Trump is trying to get away from being so reliant on China. America has four manufacturers of 10-in nails
apparently. Yeah. And most of them don't even make the shaft. They just buy that from ch China, make the end sharp, and make the other top other end flat. Yeah. So when a country can't make 10-in nails because it's made somewhere else and that somewhere else is not going to be their friend, they got a big problem, right? can't make light bulbs, probably can't make ships, not not proper ones that, you know, take containers, all those things that America relies on China for, which was a great idea to to
spread the happiness and bring up their level of of standard of living up and everybody concentrate on what they're good at and let some other country do what they're good at. All that is gone by the board now. So the last I don't know 50 years of of economic development through America well that's drawing to a close and the disruption from that and the geopolitical stress from that is driving all sorts of investment opportunities I'm going to sound you know rather um rather ruthless but you
know that that's about the only thing we can actually um change um is by actually playing in the market and that's what's driving gold that's what's driving silver that's what driving platinum padium that will drive oil, it will drive, you know, raw materials, strategic metals, all that good stuff. And a lot of this is going to be driven in commodities because commodities is the base of the economic pyramid. And what's happened is the first world has gone, you can have that base of the
economic pyramid over there. We'll just do the, you know, the Facebook stuff and and the clever stuff and you do that and and we'll do that and everything will be fine. Well, now it turns out that now you've got this huge heavy pyramid on sticks and the base of it is gone. And if it stops producing what it produces or they stop sending it to you, it's going to be very awkward. I mean, imagine a world without plastic toys for children. I mean, it's catastrophic, right? >> I think I like that that pyramid that
you're you're talking about there. I think that helps to really visualize the situation. And I'm wondering, so we have this situation playing out. We know what flash points you're going to be watching. Gold and silver. Certainly, it sounds like you're bullish there perhaps on other precious metals as well. But how else are you expressing these ideas in your portfolio? How are you building it in preparation for what's coming? >> Well, interestingly, a lot of what goes
on in the markets will inform you on what is going to go on in the markets. So for example, if you've are watching Loheed Martin as I was a few months ago and suddenly it's going like that, you go, "Oh no, that's not good. I think I better buy a little bit of that." Now when um the uh I think it's called the Secretary of War now, which is all you really need to know, the Secretary of Defense became the Secretary of War. But when he was in in uh Europe at the beginning of the year, he said what
amounted to, we've got a problem in Asia. You got to sort out Europe, i.e. Russia. And I went, "Oh, did he say that?" I think I listened to that several times to make sure I didn't hear that back wrongly. Oh no, I bought a lot of defense stocks and they all went wham. Funny enough, right? But if American defense stocks suddenly started to go up and you weren't hearing any reason why, you could you could imply a few facts, couldn't you? You could go, "Oh, that's not good." And then you
could say, "Ah, okay, they're going up. Maybe I need to buy someone else." But, "Oh, what's gold doing? Oh, that's going up, too." Ah, yeah. The I mean, I I do not sit in the halls of power. I I'm not walking up and down number 10 Downing Street or the Lisa Palace or or in the White House, you know, with my ear to the to the door, but there's a lot of people that are and they've got a lot of friends and then those friends have got a lot of friends and those friends have got a lot
of friends and lots of friends. So when somebody says, "Oh, I'm really annoyed at I don't know, Ethiopia." Yeah. The price of Ethiopian coffee goes up within in a day or two. Yeah. So you can actually see things develop and maybe not transpire in the markets themselves. So you can actually watch the American defense stocks and I'm watching them because it will give me an advanced warning about what might happen. You know two it's 2026 and all of a sudden all the military things
start to march and you know it's 2027 cuz she said it. Well there we are. It's all the information you need to know. People should build up theories and then see if they start to pan out because a lot of people go, "I'm going to buy aluminium because I like aluminium. Aluminium is going to go up. I I don't really have any good reasons for that, but it's going to go up." They go in and then they they thrash around trying to find the reasons why aluminium is going to go up. A mate told me it's going to
go up and now I'm wanting to see whether I'm right or not. It should be the other way around. Work out the idea of what could happen and then watch for it to start happening. And when it starts to happen, normally you know it's not going to stop happening and then you can do your thing. So 2027, you know that they've said um they want it back and it's reported by Reuters that that she actually said it to Trump Monday before last. Yeah. So you know that's a big hairy deal. Taiwan is a big hairy deal.
What's going to happen when that occurs? Well, it's not going to occur overnight. the satellites are going to tell them when they're getting their boats out from from they've got and and people don't believe this until till they actually look it up. Chinese have cliff climbing ships because Taiwan is surrounded by cliffs. There's like three beaches and you know you you not don't want to land on three beaches, do you? I mean that's not going to be good. So they built these and you just type into
Google Chinese cliff climbing ships and they're these military boats that are on legs have legs and big um ramps that go on top of the cliffs cuz Taiwan's surrounded by cliffs. They've already built the ships to do it. I mean it's not like thinking about it, right? But when they start, you know, pulling those ships out from where they washing them down or painting them in camo, people are going to be seeing that in ground control. Oh, they're painting it in comer. What do you think's going on?
You know, and the prices will move before way way before you see it in the newspapers. So, you know, first of all, work out your theories and then look for evidence that that it's actually starting to happen. And some of your theories will be rubbish and they'll never happen and they'll never be seeing evidence for it. But some of them you'll say, "Oh, oh, look at that happened. Oh, well that's Oh, and and you could be really really early and then you'll make a lot of money, right? Rather than being
the last guy. Oh, my friends told me they'd made a lot of money in this and I bought some and it's gone down. I mean, a lot of people get get that one happening to them. >> All right. So, so we can go the precious metals angle. We can do the defense stocks kind of angle. And you're also talking about the broader commodity space and how the US is looking to bring some of this mining and and manufacturing back inside its own borders. So if somebody wanted to approach it from that kind of direction,
what do you think would be the best way to do that? >> I mean the way I can only tell you the way I've done it and the way I've done it is is with ETF physical metal ETF. Nothing levered, nothing that doesn't track. So, for example, if someone said to me, "There's this really great gold mine. It's it's Clem's gold mine." And I would go, "Oh, okay." And and that that'll do gold for you. I would get the physical gold price. And I'd run the
chart of of that um mine next to it. And if gold goes up and it goes sideways, or gold goes down and it it goes up, it if it doesn't track, I wouldn't touch it with a 10ft barge pot. Yeah. I I want things that track the commodity. So maybe it should if gold goes up one it should go up one and a half or two even because it's obviously levered because its profit margin goes up by the amount the gold has gone up but it fixed costs don't go up well with a bit of luck anyway. So it with good assets they
track reality. So mining it better track physical is physical and then I just care about who's providing the physical ETF. Is it is it Mickey Mouse's ETF fund or is it somebody you know with a long track record and a and a huge um you know uh financial institution and I don't really want to mess with anything that isn't um you know goldplated triple triple starred. So you know just go with with the biggest uh physical metal ETF. So that gives you a a way of doing it. Now, if you want a bit of leverage, you
can always, you know, um have a little bit of margin on your account, but I I wouldn't do that either. So, just get um uh commodity ETFs, but study why. Absolutely. Study why. Why is copper going up? You know, what what's the supply of copper looking like and how much they're going to need? I mean, just have to type in those questions actually into Google or into an AI. It will tell you and you'll go blooming. What? What? and and you'll know you're on solid ground. Now, saying Clem said that's no
that's no good at all. I should be raw material for people's thinking, not not not a tipster. I don't want to be a tipster. I say go look it up. Go look up those cliff climbing ships. And if you don't find them, then you know, maybe I'm wrong. Maybe I'm trying to get you as exit liquidity for my massive bond villain positions. But, you know, you absolutely vital that you do the research. There's never been a better time with more tools. Don't listen to much opinion. Just look at the numbers
and and and see what you think. And my my high concept is there aren't there not going to be any commodities, hard commodities, not going forward. They're going to be luxuries because there's going to be such vast demand for lots of these primary so-called commodities that they're going to go up dramatically because there's simply no way of keeping up with the demand that's coming. And you might say, what what demand? We're going into recession, depression. Everybody's unemployed. Ah, but AI is
going to boil the oceans and it's going to suck all these raw materials in, particularly copper, silver as well, platinum, palladium will come along with it because of various other factors. So there's pretty not much in the way of commodities that will be able to keep up with what's going to come in the next 10 years in terms of demand for commodities. And there's potential for vast disruptions because of all these issues with China and America and supply chains and all that. So commodities are
this really is a so-called super cycle. But it's not even a cycle. The point is they are going to be in huge demand. Now imagine Clem's got a copper deposit under my chair. Okay? It's an amazing copper deposit. It goes all the way to the center of the earth. It's it's incredible. It will take me 5 to 10 years to get the first copper bar out of that. That's how long it takes to get commodities out of the ground because of all the rules and regulations and all the Oh, we don't like mines here. Yeah.
All that stuff. Or hey, this is our copper you just found. What's our copper doing under your land? You know, it's just a nightmare mining. And you know that means that it simply won't be able to keep up with the demand because there's fast lags. What's going to have to happen and it will happen. These governments will have to say, "Yeah, you know when we said fill out those 10,000 pages of of tick boxes, yeah, let's call it 500 pages and they'll have to accelerate their um they
have to deregulate mining." And America will probably be one of the first to do that. And because they simply have to take the brakes off on digging up all these commodities because the prices will go up so much and the demand for them will be so acute that they'll say how how do we get this? You know, they they won't be telling you to bring your your copper pennies in for melting down, but they will be, you know, really really trying hard to find sources of more supply and quick. So, you know,
commodities are just going to go up a lot. But it's part of something that very controversial what I'm about to say because people think yeah he's on drugs this guy what's he talking about and and that is there going to be a massive economic boom made by AI because it it's I I'll go back to the basics the when I was a kid I would watch television it would say oh the British economy is not very good at the moment productivity has not gone up the the key thing they watched was productivity
because that's how you make stuff you know if if someone's got a little hammer and he makes one unit an hour, you give him a better hammer, he makes two units an hour. Now you've got economic growth. Now you've got more products. Now people can be paid more. The money go round can go around. And if you print some confetti to help the money go around because you've got more output, there's no inflation and everything's happy. Well, productivity ha or you know it's been going like that.
They say, "Oh, it's productivity is not going up by much." Yeah, right. All those people on Facebook, right? Anyway, AI is going to absolutely slingshot productivity. It's going to make it go because, you know, we've all sat there and used it. It's it's a monster, you know. Oh, I'm going to spend the next 45 minutes researching this fact on Google. Hello, Chat GPT. Can you give me that fact, please? There it is. I just saved 40 minutes. Yeah. Okay. For the first
few weeks, you go on back onto Google and say, um, yeah, blah blah blah blah blah blah. And there it is. And you go, oh, okay. It's it's right. It took me 10 seconds to something that would have taken me 40 minutes and that's a tip of an iceberg of productivity and productivity equals you know massive economic growth and then all all the raw materials are going to get sucked into that and all the energy is going to get sucked into that. So energy is going to go through the roof. The price of energy
which is bad news for a lot of people will be is going to go through the roof and all electric because they can't just put build a nuclear power plant. I mean, you've noticed how they want to build them now. And if you wondered why, hey, this was the worst thing on in the world five years ago. Why you want to build lots of them for? I I don't understand. Why would you want to? Well, they have to, don't they, for all the AI. If if you haven't got electricity, can't make AI. And if those blooming people over
there that want to invade Taiwan are building it out and burning all the coal like they've been doing and and burning all whatever they can get their hands on and building nuclear power stations and coal power stations 10 a penny. Well, you're going to lose, aren't you? Cuz they're going to spend it all on AI and they're going to be smarter than you. Oh dear, they're smarter than us. What could possibly go wrong? So you got to keep up with AI. Infinite demand. Infinite demand for energy.
Infinite demand for commodities. huge economic growth. You know, it's it's a we're going into a phase like no other. And there's huge opportunities for investors that can work it all out that can not go, "Oh, I'm totally scared now. Oh, it's the end of the world." You can go, "Oh, I can make some money here. Oh, I could Oh, yeah. Anybody prepared to do that is going to make it in spades over the next 5 10 years or whatever they make it in. Whatever the correct metaphor for that
is make out like a bandit. Oh, that doesn't sound so good either. >> Really good to get those those AI thoughts and I have one followup because I think we're starting to see more headlines about an AI bubble and are these stocks all going to come crashing down? So, I wonder I wonder about your thoughts on that. Is this more of where yeah maybe the stocks are overvalued but the technology the underlying technology is going to be with us. How how are you dealing with that? >> If you're a stupid government you will
say oh this is all too expensive. Oh you know it's going to melt the ice caps this. Oh I don't like this. Oh it's going to put my bureaucrats out of a job. Oh no no. And and there will be countries that will do that. But if you're smart you'll go hm if I'm not the smartest country with AI in the world I'm going to be bending the knee to who is. I don't want that. So, who's going to be doing that? Oh, well, we can do it. We can we can let NASA do it and and nothing will happen for 20 years. Or we
can let the private sector do it. Yes. And what do they need? Lots of money. Okay, deal. I'll pull the lever and print lots and lots of money. Now, if I print loads and loads of money and I give it to people that want to go down the supermarket and buy more groceries, I'm going to get inflation. But I give money to people that build factories that are productive that are generating huge productivity jumps. I think I can probably print about as much money as as I need to print. I you know it's like
it's a it's like back in the day with the industrial revolution they ran out of money. They literally ran out of money to power it because they used metals and there was only a finite supply of metals and yes they did IUS and all that good stuff and yes it it really wasn't a a currency backed system. There was a plenty of leverage in that. But even the fact that there was the base level were commodities, gold, silver, copper, it choked off the growth quite often and they had a terrible periods of deflation and and
depression because they couldn't make enough money to keep up with the technological boom. There's no such limitation in our economy. Now, that could generate inflation in certain places. And I'm sure when the billionaires are living in their anti-gravity cities floating in the clouds that the price of real estate up there will be expensive. So, you know, there will be inflation. Rich man's assets will undoubtedly get get expensive. Energy is going to get way expensive. And there will be inflation.
So, that's something to be bear in mind. But, they're just print. They're just print. And and you know, there's something that's coming up which I haven't worked out fully yet. And I just throw this out to the viewers to think about. There might be a shortage in money supply because they might be borrowing all the money that's can be borrowed. So you won't get it. You know, I want to borrow some money. No, no, no. Nvidia's borrowed it. Oh, what about some of that money? No, no, no.
Microsoft's borrowed it and they've given it to Open AI and they've borrowed some, too. And they're building this huge plant the size of Carolina for AI because the government don't want to lose to China in an AI war. Yeah, but the the AI will go straight into productive things whether you know automating factories. I mean that's the strategy. Hey, we need to import loads of people from abroad. Oh, why is that? Well, we need someone to work at low wages in our factories.
I think I think we've got a better idea. Oh, what's that? We're going to have robots do that. Oh, really? Oh, that's a bit ambitious. Yep, it's ambitious. And and that's their thinking, right? I mean, they actually said it. I think Besson actually said it. Oh, we're going to have factions full of robots. Oh, okay. How how's that going to work then? Well, you know, AI robots, it's out there. You see them already, right? So, we're already on YouTube. Go watch them.
Okay. So, why are you doing that? Well, that's the only way we can get back and and be better than China, isn't it? And their robots are pretty impressive and their AI is pretty impressive and they're making all our stuff at the moment. We have to stop that. So, that's the that's what's pushing this. And they're not going to stop pushing it because they're not going to bend the knee to China. China's got 1 billion people. Yeah. And they're they're catching up pretty quick. And they're
only so far behind. Like I know get paid 40% of what the average American gets paid. It used to be, you know, when I was a kid 19 when I started in business in the early 80s, the average Chinese salary was $200 a year. It's now 15,000. Okay. So, you know, this that's what's driving this. That's what's driving gold. That's what will drive commodities. That's what's going to drive the stock market. That's what's going to drive everything. And hopefully that drive, that competition will stay
at that level because that'll be fine. Everybody will be happy. But, you know, that's not necessarily going to happen. But that is what drives everything. And if you are scared by it and think it's not going to happen and you're just going to sit back and go, this is all a bad dream. I don't want anything to do with it. I think those people are going to really find themselves high and dry. And you can see that on the internet. Oh, you know it's not fair. I haven't made any money in the stock market.
Well, have you got any in the stock market? No. I've been scared by the media for the last 15 years. Ah, and people will be in that same position with AI. Oh, I've got no money and and everybody's making it and I'm not. Are you using AI? Are you Did you get into AI? Did you learn about AI? No, no, it's rubbish. that is oh and these people that made all the money and are rich and and got fantastic jobs and are really you know motoring in AI what do you think about that then no it's all wrong
it's all wrong it's not fair mommy and you know that's a big risk for a lot of people big risk not one that I have but um you know it's there's there's going to be generational wealth to be made in that sector for those that really want to you know grab hold of it. >> Yeah. Yeah. I think that's right. you have to you have to be in if you want to take advantage of these things. I think you've given us really really a lot to think about. And as we're starting to
wrap up, I wanted to ask you I think it's a fun question. I've been trying to ask this one to to everybody as we head toward 2026, but what would your pick be for top performing asset of next year? It doesn't have to be a commodity, but of course it can. >> You see, I am a diversified portfolio guy, okay? and and I like to say ah this is really really great but I might be wrong and generally speaking that gives me a great return because when something is you know I I'm I've well here you go
actually it's come to my head I think Intel is going to doing exceptionally well um it's got another 50% easy in it next year maybe 100% even it's when I started to tell everybody about it at 20 bucks it's doubled since then and it's made me very happy but I think it It's got 60 bucks in it quite easily. And if you look at those chip people, it's three times sales is Intel. Okay. If you look at um Nvidia is 65 time sale. AMD is whatever is 20 time sale, 30 time sale. Broadcom blah blah blah blah blah
blah blah. You go look at the sales multiples. So Intel could easily be 10x. Now you can say Intel's just shaggy dog and what a load of rubbish. But if you actually listen back to President Trump and and the the Secretary of War, etc., etc., they're talking about onshoring. Well, AI, who makes AI? You might say Nvidia makes it, but who makes their boxes that do it? Well, it's all done in Taiwan or China. That's not so good. How about all the other people? Taiwan. China. Who's got fabs in America? Oh,
all those people. They sold their fabs. They said they didn't want it. That was dirty business. They just wanted to do the clever stuff. And that's all the dirty stuff is going to be made in Taiwan and China. What dirty stuff like Intel do? Yeah. Yeah. Intel's the only people with fabs in America. Really? Oh. Oh, how sad that is. Oh, and what about Europe? What have they got in the way of fabs? Oh, they're all Intel as well, give or take. Okay. Okay. And now they've all got to onshore it into
America, haven't they? Because if you're making your stuff in Taiwan and they cut that cord, you are you're toast. So, how long does it take to make a fab? Oh, three, four, five years. Bit like a copper mine. Ah, okay. So, who got fabs? Intel. Oh, and they're cheapest chips. Yep. Or literally cheapest chips. So, Intel is basically that's why the American government came and said, "Yes, 10%, please. Thank you. Investment." Kaching. Yeah. Because they've got the fabs, you know, without the fabs. So,
what you going to do for chips in all your rockets that can't fly now because they haven't got chips? and all your planes I can't fly and all all your GPS's and all that magical technology that's meant to put you in front of everybody. Somebody else over far far away is making them all. So who can make them in America right now? The the big the 800 gorilla of fabs in Europe and America is Intel. And that's why the American government's invested. And that's why they've gone from saying
Trump said that guy he's Chinese. I don't like him being the boss. Oh, he's come and see me. Hey, he's a great guy. We're going to buy 10% of Intel. Yeah. So, you know, if you think if you drill down into that crazy randomness as it appears and you strip away the noise and blow a bit of dust off it and take a bit of flaky material away, you're left with Intel is really the only thing right now that American rely upon in terms of fabricating chips. Well, that makes it a lot more valuable than it is today.
>> Yeah. Yeah. I think that makes a good case for Intel. And I'll let you go. One one final question. What would be your your best advice for investors as we head into the new year? >> I don't advise investors. But I would say the best thing to do is don't take advice. Study, study, study, study, study, study, study. Have an independent mind. Ignore the noise and study, study and have an independent mind. you know that all the books in the world out there written by geniuses in
the market for the last hundred years you know you can buy books written by Buffett's daughter-in-law about Buffett you can buy all sorts of books on you know the guy that invented ETFs you know um all those guys really really solid brilliant guys that did really really solid investment Peter Lynch random walk down Wall Street all that stuff it's all there it's like five books I mean you know if if you a book, the definitive book. If you read The Intelligent Investor five times, you'll do great.
You'll do absolutely great and you would never have to listen to me and you do something completely different from what I'm doing and you'll do really well. >> I really like that. I think you turned it on it its head, but it makes a lot of sense. So, thank you so much for for coming on today to go over gold and silver and so much more. This was great and and looking forward to having you back again in the new year. >> Can't wait. I look forward to it. >> Amazing. Well, for now I'm Charlotte
Mloud with investingnews.com and this is Clemch Chambers with a newfm.com. Thank you for watching. If you like this video, make sure you hit the like button and subscribe to our channel. We'd also love to hear your thoughts, so leave us a comment below.
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