Silver is suggesting that gold should break to the upside and you know we've already seen a little bit of reversion in the gold silver ratio. Hi, it's Mike Maloney coming to you from Phoenix once again. And Bullion Star posted uh that in 2011 silver ripped from $36 to $49 in 7 weeks. Back then it was a retail frenzy. Today it's structural failure. institutional awaken awakening and industrial scarcity. We're running a global silver deficit, burning through more than we mine. Demand is


relentless. The math is simple. Structural shortage meets monetary debasement. And the smart money is just starting to notice. You know, there was this chef named Emerald Legosi and he used to talk about kicking it up a notch. So, I love these guys at Bullion Star. They are on the ball. But I'm going to try and kick this up a notch and we're going to go to uh the uh January of 1980. So from the 11th to the 18th of January 1980, silver went from 3660. Uh that's this price down here. Now we


don't have candlesticks because uh stock charts only has the closing data. But in 1 2 3 4 5 days it went to 49.45 and the intraday high on the Chicago Merkantile Exchange was 5250. So from 36 bucks to 5250 in five days. Bam. That's that's kicking it up a notch. So, accounting errors cause LBMA to overstate silver holdings by 3,300 tons during March silver squeeze. And then Sravigilantes says, "Don't worry, though. It's only plus or minus 100 million ounces that could be off."


Oh, this is getting hilarious. Bullion Star again, like I said, these guys are great. Listen to this quote. Uh, Britain's hoarding cash under the mattress. By the way, watch episode seven of Hidden Secrets of Money if you want to see about hoarding cash under the mattress amid economic uncertainty. Right instinct, wrong asset. And that's exactly what Hidden Secrets of Money episode 7 was about. Why hoard depreciating paper? Gold doesn't get printed into oblivion by desperate central banks. And here is the great


quote. One asset survives monetary collapse, the other causes it. This is brilliant by Bullion Star. One asset survives monetary collapse. The other causes it. Uh so moving on. Uh silver's great 50-year breakout begins. The 100-year flood, a cleansing most needed. I hope you're on board. The silver arc. Uh so I'm on board. Uh gold overtakes the euro as the second most held foreign reserve asset. Now, I want to reiterate, central banks do not hold Bitcoin. They hold gold and silver. They hold gold as


a tier one asset, not silver. Uh the US dollar dominates, but uh falls to 58% and that's down 10% in the past decade. Gold rises to 20, the euro falls to just 16% of reserve assets. There's no cash available. the total market cap uh percent of total market cap is like almost nothing. So all of these funds and stuff they're holding no cash. And if you look at this, what happens is there's a crisis like the NASDAQ uh uh crash and they move to cash and then uh the subprime fiasco 20 uh 2008 2007 2008


COVID they move to cash once there's a crisis. Uh so it's it's best to either have something on the sidelines that you can make purchases with or just be invested in real money. Uh this is from Tavi Costa, Nick Leairard. A lot of Nick Leairard's data in here at Gold Charts are us and incrementum AG uh Ronnie Stole and his uh cohorts. Uh and this is the the dark line here, the blue line is uh US federal debt and that's this scale on this side. Uh this is the percent covered that the US gold reserves covers


of the US debt and in 1980 it rose to cover 16.7% of total outstanding US debt. And today that that would require $23,000 gold. Now, all of the gold standards that we've had covered only the paper notes. Uh under the classical gold standard before the Federal Reserve, it covered the US Treasury notes. Those were redeemable in gold. It did not cover uh you know, bank deposits and things like that. It covered the actual dollars printed back then by the US government, the Treasury. Uh and then


the intra war gold standard uh the it was the Federal Reserve notes that were promising to pay gold although it was a phony baloney uh you know uh fractional reserve scheme with only 40% gold and then uh the Breton Woods system didn't make a specification far as far as how much uh gold was to be in reserve and uh only foreign central banks could redeem their dollars for gold. Uh, US citizens were banned from redeeming their dollars in gold and uh, the uh, it fell to just 8%. But what would happen today if we


decided that we were going to back uh, all of the US debt? You know, that that's another gold standard basically. So, it's within the realm of possibilities. I don't think it's going to happen, but this is just a mental exercise. What would happen if we decided to back all of our treasuries, the IUS that the US government has issued with gold, saying these treasuries are redeemable in gold. What would the price have to be? Well, you go and get the uh total US debt of 36 trill214


billion and you divide that by the total amount of gold that we hold uh 261 a.5 uh million ounces and you come up with a price of almost $140,000 an ounce. That is how much debt that we have issued compared to the real assets that we have. $140,000 per ounce gold. It's not going to happen. I'm just I'm just saying that's a mental exercise. Uh so let's take a look at where gold is now because there's a technical pattern that has developed that's rather important. If you take a look at this wedge pattern


that is building, uh wedges usually break if it's a symmetrical shaped wedge, it usually breaks in the direction of the previous trend. And that previous trend is up. So, we've got this symmetrical wedge happening right now, and it's coming to a termination point. It can't get squeezed much more than it already has been squeezed, which suggests that a breakout is imminent uh from this uh pattern. Uh so, when you take a look at silver, uh silver, let me see here. I need to go to a


horizontal line. And there it is. And you can see this resistance uh that it busted through. Silver is suggesting that gold should break to the upside. And you know, we've already seen a little bit of reversion in the gold silver ratio. So this is the gold silver ratio and it was up above 100 uh again for just a a few short weeks. Uh it's back down to 92 right now. But uh let's take a look at this real quick again. a horizontal line and we want to start it right at this 92 level that we're at.


And you can see how rare this is. I mean, it's only a few times in history that uh silver has been this undervalued compared to gold. Where is it going to go? It's probably going to go somewhere down in this range eventually and maybe even lower. So if you know if if we're talking about uh 20 to1 and so here we are at 90 to1 if you have silver now or you change gold into silver now and ride your silver it's and and then uh at 30 uh to one you go back to gold you're going to get three times more gold than


you paid for at this point. Uh it could end up being four times or five times. Uh, I don't know where this is going to end, but in January of 1980, it was 14 ounces of silver to equal 1 ounce of gold. So, that is the potential upside. Now, at goldsilver.com, we've been showing the this long-term chart for a long time. However, we have not updated it lately. This was done during the COVID era when it went into the 120s. It was in the hundreds just uh recently uh and but the average was 15.4. for for a


long long time and this goes back to 1687. But let's take a look further look back in history. So if we go back to uh 3,200 BC, it was uh 1 to 1 ounce of gold, 3 ounces of silver equal 1 oz of gold. Then 9 oz, 2 oz, 10 oz, 12 oz, 15 oz, 15 oz, 8 oz. in 40 BC 13 oz 11 oz 8 oz in 1275 in Italy uh 15 oz 10 oz in uh Spain in in 1497 uh in the year 1500 in Japan 5 ounces of silver had the same value as 1 ounce of gold uh 14 10 12 15 105 Welcome to clown world 2025. This is a meme that I forgot to use the


last couple of videos that for silver. I hope you enjoyed this video. Uh, you know, like it, uh, thumbs up, uh, subscribe. Everything that you can do helps. I want to thank you for watching. We'll see you next time.