gold news

 Hello everyone, welcome to Bald Guy Money. And the title of this video is not clickbait because the Federal Reserve, who just decided to lower interest rates again, is in fact deciding the future of gold and silver prices. And as regular retail investors panic, getting tricked by price volatility, manufactured price smashes, and speculative investor flush outs, some people have misinterpreted this volatility as the top of the precious metals market. But those calling the top are either unaware of or simply missing

the sign that told us the October and November 2024 pullback was only going to be temporary as central banks, which bought into the price weakness last year, making their largest gold purchases of 2024 in October and November, are back at it again as the usual suspects continue to rebalance their reserves, dumping US dollars in favor of gold. And just yesterday, we got news that two more countries were joining the party. Most notably, South Korea, whose central bank announced they are looking at purchasing more gold for

their reserves for the first time since 2013. Now, building on this latest information as well as what the Fed has done and what Jerome Powell said in his speech just now, which I just finished watching, in this video, I want to cover the impact of the latest rate cut on the trajectory of gold and silver prices. Then I want to present all at once the mounting body of evidence that tells us metals prices can still realistically double from here. And once that's covered, I want to give you all an

update on mining stocks. why I think they have been drastically oversold and what I am doing with my portfolio as a result. Now, just before we dive in, I want you all to know that this bonus midweek video has once again been made possible by investing.com and their amazing market analysis tool, Investing Pro, which I use to track my personal mining stock portfolio because of how easy it is to use and how it provides very clear analysis, ratings, breakdowns, and price targets for stocks across all sectors that even beginners

to the world of mining stocks will find easy to understand. Especially when you factor in access to the Warren AI tool, which in contrast to other mainstream AIs like Grock and Chat GPT, offers clear financial-based answers based on real life data to help you make the best decisions when it comes to navigating this profitable but risky sector. So, if you want to supercharge your investing strategy or just verify what it is your favorite YouTubers are saying when they promote mining stocks or give you price

targets, please sign up for investing.com's investing pro package. And remember, when you use my link, which is in the video description and pinned comment below, you get an extra 15% off. So, if you're looking to buy the pullback in mining stocks now, don't wait because you shouldn't be doing it blind. And this tool is a pair of glasses that helps you see things clearly. So to begin, for everyone concerned that we've reached the top of the market like in 1980 or in 2011, you

have to understand that the most fundamental difference between the tops then and why I keep saying we are only in the early stages of the metals bull market now is that in 1980 interest rates were headed higher and in 2011 they had already bottomed out. And because of that, I see the recent price action for gold and silver more like short-term temporary pullbacks. Kind of like the ones we saw in mid 1973 or in the first halves of 1977 and 2006, which led to much higher highs rather than being long-term market tops. Because the

truth is apart from lower interest rates and the imminent return of real negative interest rates, we don't need fancy models or technical analysis to understand the fact that both gold and silver are going much higher still. And it all starts with the US national debt which just hit $ 38 trillion. And as I've said in past videos, by 2030 this number is conservatively headed to 50 trillion. And after that, once social security becomes insolvent by 2033, which is what the Congressional Budget

Office is projecting, the debt likely goes to 100 trillion, then 200 trillion, and eventually reaches Venezuela on its way to Zimbabwe as just the four largest expenditures in the US budget equal what the country is taking in in taxes, which if the latest trends we're seeing in AI continue, and Here I'm talking about the fact that more and more taxpaying workers are being replaced with non- taxpaying AI as we've recently seen at Amazon, Microsoft, and other companies. Those tax revenues aren't likely to grow

very much, potentially making the hole in the US government's budget much larger than it is today. And that will make the United States increasingly reliant on lenders to fund their operations, which is going to be an issue since central banks of the world, who have been the most reliable lenders since World War II, are actively rebalancing their reserves, as I said at the start of the video, dumping US dollars in the form of US Treasury bonds, which central banks have traditionally held to earn interest on

their US dollar reserves in favor of buying and holding gold even though it doesn't yield any return. And that issue becomes twice as big for the US debt as some investing experts are starting to recommend a 60 2020 portfolio to their clients which would take the traditional 40% bond allocation of a portfolio most of which is usually allocated to US bonds. It would split that in two and allocate the other half to gold. And please note that this process, which will eventually divert trillions of dollars more to gold and

away from US treasuries, hasn't even started yet. And the inevitable outcome of this, as the United States grows expenses, sees its tax base stagnate, and runs out of lenders, is going to be higher interest rates as lenders, the ones who stick around, demand more return for their devaluing dollars. And we saw a small preview of that today as the interest rate demanded on a 10-year US government bond went up despite the Federal Reserve lowering their target rate. And since we know the United

States cannot afford current interest rates, and it's why there is so much pressure on the Federal Reserve to lower rates, it tells us we are likely not too far from a return to quantitative easing as the Federal Reserve will be forced to print money to buy US bonds to keep borrowing rates low and fill in the lending gaps created by outflowing money moving to gold. And today's decision by the Federal Reserve to end their balance sheet runoff, which is their quantitative tightening program, as it

says in this headline from CNBC, is just a precursor for them, an early movement before they reverse course and start easing or money printing again. And shockingly, and I think what's shocked me so much is the fact that gold and silver prices haven't really responded like they should have to this yet, but they will because Jerome Powell admitted in his speech today that what I've just said is the plan the Federal Reserve is moving forward with. And he started by saying that the Federal Reserve would be

doing a rebalancing of their current holdings to take money held in mortgagebacked securities and put that money into US treasuries. And then he added that in 2026 they are going to start expanding the balance sheet again which once again that is code word for money printing. And to justify it, the reason he gave to justify the fact that the Federal Reserve is planning on printing more money, doing the big print, more quantitative easing in 2026 is he said it was needed to reflect the growing size of the US economy, which in

my opinion is complete nonsense because most of the nominal growth that we've seen since 2020 has been created by inflation. It hasn't been real growth and it's why the price of gold is basically $4,000 an ounce right now. But that's also why the price of gold is going higher. And that applies to silver as well because this is going to fuel a confidence crisis in the US dollar in US debt and it will justify the return to net gold buying that central banks enacted around the world in 2010 in the

wake of the global financial crisis and start of quantitative easing that started in late 2008 and early 2009. And it is going to drive investors who still aren't participating in this gold bull market at past participation levels as per this chart from top-down charts. It's going to drive them back to gold and as well into silver. And you don't need any knowledge in technical analysis or statistics or advanced mathematics to understand that this is the path that we are on right now. And coming back to the

title of this video and why it isn't clickbait is because the Federal Reserve in cooperation with the US Treasury is continuing on a dangerous path and it is forcing people out of US dollars and into gold and other hard assets. And again, as I've said, these are just the early days of that movement. Now, with all of my most bullish arguments summarized in one video, I want to jump to this video's viewer question because on top of questions about the metals themselves, I have received a lot of

questions from viewers about the mining stocks and what my next step is after taking 10% off of the table a few weeks ago. And to start this one off, as of putting this data together, which was when markets opened earlier today, what I see is a clear disconnect between how much metals prices pulled back and how much the mining stocks sold off. Because with the GDX trading at just below $72 a share, you can see that is basically at the same level the large miners ETF was trading at when gold was still below

$3,700 an ounce and silver was below $43 an ounce. And since I don't think gold or silver are going to pull back quite that much and I shared these numbers in Sunday's video while encouraging everyone to remain on a purchasing schedule and buy into this current price weakness, it means that I think the mining stocks are actually a really great value right now. Because if you agree with me on the long-term upward trajectory of metals prices, it means those of you who have been considering

getting into the mining stocks have been given a fantastic opportunity to start scaling in after a massive run up. Now, even though I took 10% off the table to purchase physical precious metals and secure my profits in what I call, of course, real money, which by the way, I've already started doing as I've already purchased this pullback in metals. You must remember that the other 90% that I had sitting in the miners, it remains there. And I am fully expecting to ride the next wave up of this miners

bull market in 2026 when metals prices make new highs again as the CME Fed watch tool even after today's rate cut and speech by Jerome Powell continue to indicate a high chance of returning to real negative interest rates early next year. And it's why if I had no exposure to any of these mining stocks today, I would set a budget of what I could afford to risk. Because with these mining stocks comes risk. I'm going to be perfectly upfront about that. And I'd start scaling into them today. Because

coming back to the question I posed to the investing pro Warren AI at the start of the video, these stocks, all of which are currently undervalued versus fair value analyst targets, should experience amplified gains versus the metals themselves. if we see a recovery in metals in line with my expectations over the next few months, creating an opportunity to benefit from that if you buy some mining stocks and then shift the profits from those stocks into the metals themselves. So, in a stock market

where value is really hard to find because I even saw Intel is trading at a PE ratio of almost 3,000 the other day, I think anyone with exposure to stocks should consider getting some exposure to these mining stocks. They've never been more profitable and they are still one of the few good deals in what I think is an overvalued stock market. And when I take this out one step further and ask investing pros Warren AI to compile data based on company financials for gold at $4,500 an ounce and silver at $60 an

ounce, which by the way I think are easily achievable by mid 2026. And as a side note, if you have access to Investing Pro, you can do these simulations at different metals prices for any mining stocks you own to kind of evaluate what they would be worth at those metals prices. Anyhow, the AI shows that even at a modest 2x move compared to the gain in metals, meaning these stocks gain double what the metals do, these stocks can go up significantly in price with an increase range. For B2 gold at those levels between 40% and

77%. For Pneumont, the increase would be between 24% and 61%. And for Pan-American Silver, the increase would be between 27% and 69% again in the value of the stock at $4,500 gold and $60 silver. And for that reason, I continue to hold my mining stock position with the plan of taking out profits on the way up to roll into physical gold and silver as well as cash generating real estate, which has been a key part of my plan the entire time. So, to the dawn of mathematics and Dwayne Kendall, I hope that answers your

questions on the mining stocks and how I would approach them if I didn't own any and what I am doing as a person who has had exposure to this sector since July 2023. And to everyone watching right now, please remember that you can submit your questions in the comments section of every video I do. And I choose at least one question to appear in every single video I make. So don't be shy and submit your questions in the comments section now. And as we finish, I just want to thank investing pro from investing.com

for making this video possible. It is a powerful platform that I really use and recommend. And if you could please click on my link below, which is in the video description and pinned comment just to see the deal. Even if you don't want to buy it, clicking the link really helps me a lot and again can lead to future bonus videos sponsored by Investing Pro. And if you want to sign up because, for example, you want to increase your confidence when investing in mining stocks, I think you should do it now,

just please do it with my link as you get 15% off by using it. So, with that said, that's it for this video. I want to thank everybody for showing up for this midweek video. Again, give me feedback in the comments section. Let me know if you like these videos, if you like these midweek updates, and I will try to work with investing.com to possibly keep them going as you know, again, they're the ones making this possible. And as I say at the end of all of my videos, please remember to take

care of yourselves and take care of each other. Quantitative easing is on the way. Jerome Powell admitted it today. And again, prepare yourselves for what's coming because I think it's going to be ugly. Goodbye and see you all in the next