hi this is mike maloney with jeff clark and adam taggart once again jeff how are you doing what do you got for us i'm doing great mike it's an exciting day uh adam thank you for joining us today too happy to be here guys article of the day tweet of the day chart of the day all our usual stuff plus a great meme so stick around for that and we're gonna start with our tweet of the day because of what is happening in the gold and silver markets this morning uh you probably are aware but gold is down


over two percent silver's down over four percent at least as we're recording here so i sent this tweet out this morning that says basically right on schedule and i referenced this uh that an average annual silver gain and loss throughout the year and uh encourage people to look at what happens normally in the month of june you can see seasonally june is one of the biggest drops of the year on average for uh silver and i say here i see weekends and strong hands in twitter land this morning


be a strong hand you do that by focusing on the big picture and then holding or buying and not blaming i'm buying both metals and miners today and yes i did buy some silver already this morning uh at goldsilver.com and i also bought a miner so uh but guys uh let's get your reaction to this so what's happening in gold and silver land this morning here mike what do you think well you know a couple of months ago when cryptos were peaking i saw some huge gains that i had made and i sold uh quite a bit of cryptos


and i've had that cash sitting on the sidelines waiting for this pullback i've been watching things like the commitment of traders report and so on now one of the sad things is that uh this you know this big plunge here happened on a thursday and uh the report comes out each tuesday but they don't report it until the following thursday or friday and so i've got to wait until not tomorrow but a week from tomorrow to find out what has happened today basically as far as the commitment of traders goes


but yes i'm going to be using this uh pullback now this pullback was driven both by uh the news the fomc meeting and uh the seasonality your chart here is the average seasonality and this is 1975 through 2 000. uh you know what i'd really like to see sometime is a chart that takes just the bull markets not the bear market from uh 1980 to the year 2000 but a chart that is uh is averaging the gain and loss of silver and gold uh during the 70s and the am and the 2000 bull market so in other words


uh 1971 to 19 january 1980 and then the period of time from the bottom in 2000 to uh to today uh and see what to see i'll bet the seasonality is even stronger when you separate the secular bull and bear markets but yeah i've had i'm trying to be one of those strong hands and so i i put some cash on the side that was uh profits some big gains and some cryptos for the thing that i see as absolutely inevitable i just don't see that there's any possibility that gold and silver will not perform in


the coming crisis uh but i do see a possibility that uh the world's central banks may try and make it difficult for crypto investors because they see that as a threat to the fiat currencies adam what's your take the only thing i'll add to what you said mike is um you know yesterday we had the uh the minutes from the federal reserve released and uh that revealed that uh in 2023 there is now a slightly higher expectation that we may be doing a rate cut or two uh in that year so that's you know two


years out uh something they may or may not do it really was only a slight change in expectation from the the prior release um and yet that's enough to kind of you know kick the precious metals uh where it hurts um and and part of that just because no matter when the fed speaks it tends to be bullish for everything but the precious metals here but it's just sort of the traditional knee-jerk reaction of the market both to to you know the usual fed speak but but also in theory here if the fed


is going to be tightening and raising rates uh in theory that would be gold negative uh because it would be strengthening the dollar and it would be in theory um making real rates uh a little bit either more positive or less negative um but you know there's so many unknowns between now and then it just seems like such an incredible overreaction um and uh you know to to the chart that you guys should show to jeff's um for those people that understand the fundamental reasons to own the precious


metals absolutely none of that has changed so if you you know are committed to a dollar cost averaging program uh or want to be buying in lower operating when prices is lower um expecting higher prices down the road this is a great entry point yes good point i bought today several other people gold silver bought today including dan our producer so we're capitalizing on this pullback we're looking at the big picture so well guys on to our article of the day and this is on zero hedge the world's frothiest housing markets


flash 2008 style warnings and what they're basically referencing here is a bloomberg economics report that says the run-up in global real estate prices over the last year thanks to central bankers has produced a warning signal unlike any other not seen since right before the 2008 financial crisis and there's some great data in this article it's worth skimming real quick including a table where they show just how overvalued many real estate markets are around the world you got to scroll down


two-thirds down at the bottom of the table before you find something that's fairly valued around the world so uh mike what do you think overvalued real estate peaking uh like never before yes i i just think that uh you know it's totally insane uh and this is all caused by the federal reserve in the world central banks creating currency from nothing which dilutes the currency supply and steals purchasing power uh from everybody and then when it goes back into the markets the federal reserve for


instance buys mortgage-backed securities which keeps interest rates low on on real estate and makes it uh easier for people to buy in to the top of a bubble um it's it's a wealth transfer that's going on that the federal reserve is coordinating uh it's a wealth transfer away from everybody uh ex and and away from the masses to just the people uh that are that uh either own their own home outright and don't actually owe on it one of the things about real real estate is people don't realize


it's a leveraged uh play it is uh just like uh margin stock you know brokerage account it's got leverage to it because you're one of the things that we don't see here is the mortgage rent ratio which i would like to see and that's the cost of carrying a house if you uh buy a house with a 30-year mortgage plus the insurance and all the other carry carry costs can you rent that house out for a profit or not and that is another one of the indicators but this uh affordability index is just


we're back in insane's bill and this is the almost everything bubble because the stock market is also uh way above like the p e ratios are way way above the 1929 peak when when that crash happened uh and so uh this is yeah this is all the federal reserves formed and this when when the crisis comes you know i've said before that in 2000 it was the stock market that crashed in 2008 it was stocks and real estate this time it's going to be stocks real estate and bonds there's going to be this is going to be


the greatest financial crisis in history because this is only the second half of the economic storm that started with the 2008 crisis that they just kept on papering over and papering over and papering over and kicking the can down the road adam what is your take well it's similar to yours mike but i want to be sensitive to some of the commenters on last week's video who said that they think i agree with you too often so just for their sake i'm gonna have to try to argue the other side of


the coin here for a second um but but first where we do agree um which is pretty much everywhere um but uh yeah this is completely the predictable result of our current fed policy as you said when you combine record low interest rates and trillions and trillions of fresh new money into the system i mean what else is going to happen right um fresh new currency into this fresh new currency i'm going to get honked this week yeah he's gonna get him uh so but um uh you know there there are some


structural reasons why housing at least in the u.s um remains elevated and it has to do with um shortage of inventory and i will be smarter on this subject next week because i'm interviewing kevin erdmann um who is a housing specialist uh who has basically noted that we somewhat decimated the home industry after the the 2008 bubble right which was largely a housing crisis and we have been trying to um uh rebuild that industry to catch up with demand for housing and i think right now there's estimates of somewhere between


one to six million um that's the housing deficit in this country between somewhere between one million to six million uh units and so um there is some part of uh supply and demand where shortage of supply is playing a role here um and i i i just followed the work of uh doug duncan who's the chief economist of fannie mae who actually still remains fairly uh optimistic about housing prices going forward for a couple of reasons one there's the type inventor the tight inventory i talked about two


boomers are not downsizing the way in which the forecaster is expected they're staying in their homes longer uh oftentimes they're buying a second home or whatnot but they're not selling the first home largely because prices have been appreciating so much they're treating it almost like a stock um second or third we've got a record number of 18 to 34 year olds still living at home and a lot of the forecasters like doug see that as as future demand i'm a little skeptical about that getting back


to your affordability chart there mike it doesn't really matter how many people want to buy a house the question matters is how many of them can actually afford to buy a house at current prices and we're definitely seeing that affordability is is the worst outlook it's ever been for younger generations looking to get into the housing market and last doug is pretty skeptical that the fed really can't raise rates here no matter what they say and why that's relevant to mention here


is doug actually does he does talk to the folks at the federal reserve as the chief economist for fannie mae he actually has a direct conversation with those guys so you know i don't want to discount too much what a what a true insider like him thinks that said you know probably one of the best and most impartial observers of the housing market robert schiller at yale he's on record very recently past couple of days and weeks in the media saying that he sees quote aspects of a bubble in most housing markets across america


and that quote uh it's going to cause some pain when those bubbles start correcting here so long story short um yeah i i think i think a lot like you do mike but i do want to keep an eye on what guys like doug duncan are saying um last point um robert schiller why he does think that we see some bubble aspects and sees a price correction he does tell people look real estate's a lot stickier than a lot of other asset prices he does not expect a sharp correction he sees it to be much more gradual over time at least that's the


expectation he's trying to set yeah just before we uh started this i went to his uh website at yale you know edu dot yale.yale.edu and um downloaded his latest uh the his shiller index of housing prices and we have just topped the 2007 uh peak here in real estate prices and he's adjusting this for things like building costs population interest rates and inflation so this is yet another indicator and this is the indicator that i uh back in 2005 my first recorded presentation at the silver summit


uh i presented this and said that real estate was in a hyper bubble and it was going to crash sometime soon that was 2005. uh so here we are exceeding that peak so um yeah there it is a little bit the fundamentals i would agree are a little bit different this time around and we don't have the uh the the all of the uh zero down uh no you know no proof ninja loans yeah the ninja loans right yeah so uh it's a bit different the subprime crisis is not uh happening along with this but the overvaluation is definitely


there so maybe he's right maybe it will be a much more gradual return to the mean that's some great input guys thank you adam that sounds like a very interesting interview with doug duncan when will that be available where can we see that is it a wealthy on or thank you uh yes it's wealthyon.com but just to clarify the interview next week is going to be with kevin erdmann who is another housing specialist like doug very good sounds very interesting that getting some great input there so


well if you're liking this video please hit that like button down below for us and the notification bell as well so uh real quick onto our tweet of the day and i i love this tweet it's from john told john i hope i'm saying your name right imagine waiting around all day for a couple paragraphs from a handful of boomers who've destroyed our economy and driven wealth inequality for decades just to see what the market is going to do so this is obviously in reaction to the fed announcement yesterday


uh adam to you first give us a real quick summary of what the fed basically said and your reaction to john's tweet sure i mean the fed basically said that it's not going to do anything different in the near term it's still sticking to its guns that inflation is transitory although a lot of people think that that creeping up in the dot plot of future rate expectations in future years which is a survey that the the fed does of its uh market committee members um uh that some people are seeing it as


a sign that the fed is blinking right that the fed is beginning to at least internally begin to admit to itself that inflation may be worse than it's saying publicly and is going to have to take action based on that um but you know look the fed is not stopping uh it's still pumping 120 billion um of stimulus into the system every month it is not pulling the brakes on at any time yet um if anything uh there is some chatter out there that the fed may need to start tightening uh which not bringing rates down but just


not buying as many mortgage-backed securities and other assets that it's doing every month um but the fed is not talking directly about doing that yet um it's more sort of about thinking about thinking about talking about it um so again um really no no no major policy changes um the markets did take that dot plot shift as a bit of a negative but they really just sort of you know wobbled they dropped a little bit yesterday but are back up today and they're shrugging it off of course the precious metals always seem to take


it on the chin when the fed really says anything but as i talked about earlier um that is the main reaction to the dot plot we're seeing in the the commodities markets um that's about it i i think that it's just uh totally insane that you know basically the tweet the the comment uh is that you know we wait around for these guys that have proven to be sort of bungling idiots uh that they they uh have created all the wealth into in inequality and helped to you know i just wonder if we had free markets and we had


uh some sort of real money instead of fiat currency that can be created from nothing uh i just wonder what the world would be like i know that government would be much smaller and i know that the financial sector would be much smaller and i have a feeling all of that wealth would be in the rest of the private sector and we would all be much better off but the very fact that they can jawbone and say well maybe we're going to do something in two years and then the markets react and gold tanks


that's just insane that that uh people put that much cred that much credibility into what these guys say exactly just to write on that mike when you look at the predictions that the federal reserve has made whether it's around inflation whether it's around whether you know subprime markets contained whether it's around we're ever going to have a financial crisis in our lifetime they are always always always wrong and yet the world still listens and rests on every word it's just nuts


it is so what's next very good guys well on to some viewer feedback here this is from jamie stone jamie says i'm about done with silver rather cash it in and enjoy the rest of my life not much time left anyways before the you know what goes completely sideways mike what's your reaction to uh jamie's uh feedback here uh well his last part of the statement where he says before the new you know what goes completely sideways that's basically when the you know what hits the fan and


that's the day you're waiting for with gold and silver so to get rid of your uh silver and go to cash just as we're getting to the point where the the big payoff uh is finally right around the corner here uh you know that's um i'm not much of a gambler uh i that i used to run a business many years ago that was headquartered in las vegas and i had to spend a lot of time there and uh i would walk through the casinos and it's like uh that person that spends uh you know hours and hours at one slot machine and


then leaves and the next guy puts in a quarter or a dollar or whatever and pulls that handle and a big payoff so uh uh jamie i i would reconsider your position but i do not give advice i just tell people what i do but this is the point where i'm doubling down i'm i'm using this pullback as an opportunity because uh i know that everything else is in a bubble and the very fact that uh somebody is thinking about uh leaving the silver market right now that sort of shows that it's not in a


bubble uh you know the if there's there's no bull market in history that ends before exceeding its previous high of the last bull market that i know of and we actually did not hit 50 we had 48 dollars this time and it was 50 i think the intraday on one of the exchanges was 53 and something 53.85 or something like that uh in 1980 and so uh this bull market is not over and we've been through this brutal grinding sideways pullback that's going to be ending soon it would just be a shame to leave


the slot if this isn't a slot machine either this is an investment that i see to me as guaranteed to pay off adam what do you think yeah i just want to reiterate what i said earlier which is that you know the fundamental story for owning precious metals hasn't changed at all and certainly you know from yesterday to today you know people are kind of reeling from the most recent drop um you know zero has changed um in fact i think we can make an argument that we feel even more confident in the long-term projections here so you


know first off i just got to remind everybody the precious metals are a volatile asset class um and they are also the mirror of truth to power which is why you see so many discussions about how the you know the the authorities are trying to sort of suppress the prices as best they can because a runaway gold and silver price really unmasks the the devaluation that they're doing of our currency um so you know you have to just remind yourself as an investor in this game the prices are gonna they're going to swing


it's a volatile asset class so you have to just remain focused on the fundamental reasons for why you own it and just tune out all the noise tune out the noise that's good advice yes adam thank you well on to our meme of the day here but first if you've not read mike's book he talks about some of these big picture reasons in his book that are just as valid today if if not even more so you can do so for free the link is below and of course subscribe to adam's wealthy on channel the link there


is below he's got some great guests coming up as we've talked about so well mike share this meme of the day with us well uh this is this is at one of the uh meetings or some press conference and it's hey jerry what comes after a trillion so the next step you know we used to measure the uh deficit and the debt in in the millions and then the billions and now it's the trillions and very shortly it's the quadrillions i want to thank everybody for watching jeff adam we'll see you later take care


later mike and adam