I'm betting on at least $200 an ounce, but uh we we could see a spike that goes up uh toward quadruple digits. We don't know. I don't think this 661 that this uh chart is pointing towards as an echo. This is like history repeating. It's an echo from the past and just adjusted for the devaluation of the dollar. I don't think it's unreasonable. It's not just a cornerstone of national security and energy transition, but it's developing a monetary component right now. And I've


often said that that is what is required for the tripledigit silver that I believe is definitely in our future. I don't know if even at 150 or $200 an ounce if silver is going to catch up with with with demand. Hi, it's Mike and Allan once again with the Gold Silver Show. And Allan wanted to expand on a question that was asked by one of the attendees at the New Orleans Investment Conference. And he asked both of us and so we've uh done a little bit deeper dive into this. Allan, what have you got? Yeah, thanks Mike.


So, we had a viewer at the conference, David from Poland, who asked both of us independently the same question. And I didn't know that he asked you the question until I saw the video that we put out yesterday. So basically the question is, do central banks buy silver? And if so, is the first central bank that buys silver going to incentivize other central banks to buy silver and create a snowball effect where the price of silver goes parabolic? And uh I do think that's likely. And you actually had a chance to


answer this question, Mike. Um and you mentioned a couple central banks that have already started. Um, so do you want to kind of summarize uh what you mentioned there? >> There's already been two of them. I was actually wrong in this video because I read a headline. I was trying to pull all this stuff up, you know, just from memory. Uh, so I was wrong but close [laughter] on one of them and you'll cover that. But yes, I believe he is correct. So far it's just a couple of central banks. But central banks aren't


complete idiots. I mean they they are pretty dumb. Uh they do stupid things. Uh they have corrupted the world economy. Uh they've they keep us uh chained into this absolutely flatout evil monetary system that enslaves us and [clears throat] and always produces more debt than there is currency to pay the debt. But like I said, they're not completely stupid. They know about the gold silver ratio. They know that silver is incredibly undervalued. they have been accumulating uh gold and you know


one of my strategies has been to accumulate silver now and then at certain gold silver ratios I'm going to be turning some of that silver into gold. I think a a lot of the central banks will be looking at around trying to accumulate more gold knowing that there is a problem coming with fiat currencies and just the monetary system in general, the the markets and so on and uh the best way to get ahead of the curve is to try and get as much gold as possible. But with gold already up at the prices that it's up at, they're


looking at that thinking that, you know, even though it's a at record highs pretty much, [clears throat] uh they're looking at that thinking that that's a high where silver is still uh basically at its 1980 high today, which just doesn't make any sense at all. So why don't you take us through the this presentation that you >> Yeah, absolutely. And the one thing I'll say as we go through it for our viewers to keep in mind is that silver has basically either been considered an


industrial metal or a monetary metal. And we're almost seeing an emergence of a sort of a hybrid where it's like a security metal like a a metal of national security. So keep that in mind as we as we go through here. >> Well, it's a metal that tech has to have. Tech can't get by without it. And at the same time uh we're starting to see monetary demand and this will increase uh as time goes on. We haven't seen the west interested. The west was selling while the east was buying uh


which I think is sad to see but this is the one I was wrong on. I said that the central bank had actually purchased and what they've done is they've India takes a historic uh step toward the silver. They've made silver uh a metal that can be used as collateral in loans. >> Exactly. Exactly. So for decades, Indian households have relied on gold jewelry as a primary form of collateral for personal and business loans. The new rules expand that privilege to silver jewelry. So you can pledge silver for


loans as well. So sort of recognizing that silver has a lot of value. It has monetary value. It's good collateral. um but not quite the same as the central bank buying it. >> It's interesting that they put it at 10 to one instead of whatever the free market rate is. 85 to1 is what it is today. So they should, you know, they're they're somewhat restricted, but it also tells you where they think it might be going, you know. >> Exactly. >> Yeah. >> Exactly. All right. So our second


country here is actually Russia. So this is an article back from in the summer from June. uh central bank silver purchases. Russia leads smart money. So, central banks are virtually absent from the silver market in 2024 and 2025 with one historic exception. Russia has become the first nation to explicitly announce silver purchases for state reserves during the current precious metals bull market, allocating over $500 million over the course of three years. So, Russian central bank absolutely buying silver. um they're leading the


way and they may incentivize others. >> And if it goes down to say a ratio of 20, it means that they will be able to get over two trillion worth of gold for this 535 million that they spent on silver. So I, you know, they're they're not completely stupid. [laughter] >> I agree. I agree. Exactly. And our next country here, Saudi Arabia, the central bank invests tens of millions into silver. That was about $40 million. And they bought SLV and SIL. So, two different ETFs, not the not the actual


physical metal. >> The headline should say that the central bank bought tens of millions of dollars worth of claim checks that represent there supposed to be representations of silver. But, uh, like I said in that original video where David asked me about this SLV and the other ETFs, I just don't trust them. And I the reason I don't trust them is because I read their prospectus and their 10K filings. Yeah. So, okay. So, those are the three countries you talked about. We've got


three more and they're not explicitly buying silver, but they are treating it as a strategically important mineral. So, let's take a look at those. China now restricts silver as a key mineral resource for export control. So basically starting sometime in 2026, if you want to export silver from China, you're going to have to apply for a license so the Chinese government can restrict how much leaves its borders. >> Yeah, this is a part this is part of the reaction to Trump's trade wars and


tariffs. Silver is an incredibly important metal and China is a major supplier and that means that they can squeeze all of the tech uh all of the AI infrastructure that's going in all of the solar and batteries and things to uh power electric vehicles and so on. This all requires silver and uh if the west is using more than it produces and we are the world is using a whole lot more than we produce. stockpiles are getting low and then China can put a squeeze on us. And this is part of the posturing


and the battle that was triggered with the Trump tariffs. >> Exactly. Speaking of using more than we produce. >> Hi, it's Mike here. Just a quick message. I wanted to welcome the huge number of new visitors to our videos, but point out that less than 15% of our viewers have subscribed to this channel and hit the notification bell. We're heading into some turbulent times, so if you don't want to miss any updates, make sure you enable notifications. And thank you as always for clicking the thumbs up


button. One more thing, at golds.com, we've been providing top-notch educational content for over 20 years. If you'd like to help us continue this mission, [music] we'd be honored to be your precious metals dealer. And now, back to the video. Speaking of using more than we produce, here are the uh silver stocks in China. So, here we have the Shanghai Gold Exchange and the Shanghai Futures Exchange. And what's going on in China kind of parallels what's been going on in the world.


Basically, we had growing silver stockpiles until around the year 2020. And for the last 5 years or so, we've been using up those stock piles around the world. So, this this could be contributing to to what we just talked about. >> Yeah. people are taking delivery and so the look at that huge fall in the futures. The physical shrunk but the futures the bets on physical shrunk by even more. People are not trusting the paper contracts as much as actually having it in their hands. So this is a


reflection of investors being more nervous and actually taking delivery, pulling it off the exchange and not just, you know, it's the musical chairs occurring on the Titanic [laughter] and you've seen the movie with the little uh orchestra that's a string orchestra that's playing. They do stop playing at one time or another and by that time there's not enough lifeboats left. >> Yep. Get it while you can. Right. >> The good old United States of America, the US Department of the Interior


releases the final 2025 list of critical minerals, and there's 60 critical minerals. Seems like just about everything is critical to the United States now. Um, but they added 10 new ones this year, and silver has finally made the list. So, silver is now critical. Who knows exactly what that's going to mean? It could translate into more legislation and regulation, but the United States is recognizing that silver is extremely important. >> Yeah. And pretty soon it will be very profitable to invest in mining companies


and so on and and to do the investment in all of that infrastructure and the silver valley up in Celane, which is the largest deposit ever found. I believe the uh the that area a lot of those mines can be resurrected and improved but for most operations it's 10 years or more from discovery to production. I did a video on this years ago the lag time that is involved. Silver goes up then there's all this investment in the mining sector and then it takes years for that silver to come to market. And


so that happened uh up in when silver peaked in 2011 and uh the silver started coming to market in by by like uh 2015 2018 you saw increases but then we went back into a structural deficit even with that extra supply coming to market from all of those uh mines that were opened up or reopened. And we're running out. We've had this structural deficit year after year after year. And so this runs in these waves and cycles. But I don't know if even at 150 or $200 an ounce if silver is going to catch up with with


with demand over the I mean you look at the AI infrastructure that's being built out and the demand that uh silver will have on it for um all of this tech. Uh it's and at the same time people are rushing back to it for investment. And when you invest in something like silver eagles, you're taking silver off the market permanently. Nobody's going to melt down silver eagles to put into electronics. The premium on them is too high. Okay. Exactly. And our final country, Australia. The government in New South Wales uh has


published their critical minerals and high-tech metals strategy for the next decade. Even though they just published it, it includes last year. Kind of strange, >> but anyways, in their report, they listed five priority minerals and metals. One of which is, of course, silver, >> right? And one of the things they said about silver, aside from all the industrial uses that you commented on earlier, they said, "Additionally, silver has strong demand as an investment product," parenthesis


currency. And I just thought this was interesting and I thought, man, supposed to be money, not currency. And it's not really an investment product. It's savings, right? You're trying to preserve your wealth. But anyways, this is classic government. >> Okay. So uh yes it is money not currency and you know it can be a currency. Uh right now it's not being used as a currency but it is money because it stores value. However, uh I would I've I've often said that there are these


brief moments in history where the precious metals become not just the safe haven asset where they are savings, but the asset with the single greatest potential gains in purchasing power and that is investment. So I would argue that during this period of time during the bull market that it is both savings and investment simultaneously. It's a safe haven. It's savings. It's investment. >> Beautiful. I love it. I love it. >> Well, we can summarize all those things that we just talked about with a


wonderful tweet from Hanza Cherney. Something big is happening with silver. First, China restricted exports. Then, the United States classified it as a critical mineral. Now, Australia names it as one of its five priority metals in its 10-year strategy. Three continents, same signal. Silver isn't just an industrial metal anymore. It's becoming a cornerstone of national security and energy transition. When governments start guarding silver, stackers already holding it are ahead of the curve.


>> Yeah, perfect. >> And it is perfect. It's not just a cornerstone of national security and energy transition, but it's developing a monetary component right now. And I've often said that that is what is required for the triple digit silver that I believe is definitely in our future. >> I think so too. And I put a chart in here to illustrate that. A comparison of the current silver bull market to that of the 1970s. So we've done this we've done this chart before. We've also done


the equivalent version for gold. Um but it's nice for people who haven't seen it. So um >> yeah silver chart I don't remember covering that. I remember the gold one. Yeah. Yeah. Um it's less common. Um last time I did I think was July because that's when my spreadsheet was last updated. So anyways, um blue across the bottom here is the 1970s and that's what the blue line looks like. And you see these waves and the big blowoff top and peaking around 4945. This is just daily, not not the intraday


high but the the end of day close, >> right? >> And then the white bull market is the current one. If we go back to 1999, it sort of bottomed in 2001, 2002 around $4, went up to 48, came down, and here we are. Um, we're around 53, 54 right now. This, this, um, was the high from a week or two ago. I forget the exact date. >> Um, >> so, so yeah, so we're above the 2011 high. We're above the 1980 high in terms of a daily close, but there's still a lot more to go. That's this yellow line


here. I do think we are going to get a massive blowoff top in the next two to three years going up to something like 600 an ounce. >> Wow. Um yeah, I'm betting on at least $200 an ounce, but uh we we could see a spike that goes up uh toward quadruple digits. >> Yeah, >> we don't know. you know, when the when we did the analysis uh in my book, the great our book um because you were involved in a lot of the research in this um and we did the percentage change uh in all of these


different assets, asset classes from January of 1980 to today. And uh the the biggest one is if it had the same percentage growth as the Wilshire 5000 stock market index, it would be $2,178 per ounce. But the average of the uh consumer price index, median price home, Wilshire 5000, the 10-year Treasury bond, US GDP, and currency in circulation, and the M2 currency supply growth was $921 an ounce. So I don't think this 661 that this uh chart is pointing towards as an echo. This is like history repeating.


It's an echo from the past and just adjusted for the devaluation of the dollar. I don't think it's unreasonable. >> Yeah. Me too. Me too. So So getting back to David's question, uh is there going to be a sort of snowball effect among central banks? It's definitely possible. And they may come at silver a different way. They may regulate it differently. They may have the central bank buy it versus some other kind of fund, but uh it does look like that's already in motion. It looks like it's going to


continue. And I think that could be the main driver to get a blowoff top like this. >> Yeah. Well, we used to be on a biometallic standard and maybe we're going back to one. Who knows? But I do believe that gold is destined to be uh a component of the future global monetary system. I don't know is that how it's going to happen? And then silver gives you that leverage to gold and central banks have to realize it. >> Exactly. Exactly. So I want to end here with the meme of the day. Silver at $51.


I'm an idiot. Why didn't I buy it? Then it comes down. Silver's on sale. 46. I'm not buying that. [laughter] Silver goes up again to 60. I'm an idiot. Why didn't I buy it? >> Exactly. One thing that we see is that like that recent dip that we just had a couple of weeks ago, people did not take advantage of that. And it's too bad. We see sales drop off whenever it goes down and then we see sales increase as the price begins to run away. It's that fear of missing out thing. Uh but you know I


interviewed uh Carrie Stevenson from Australia at the conference as well and she says when shoes are on sale women are fighting to to buy those shoes. When gold and silver are on sale you can't get anybody to buy it. So I want to thank you great presentation and thank everybody for watching.