All credit bubbles come to an end. They pop and when they burst, they usually burst quite spectacularly. If you see um the value of gold expressed in fiat currencies rising, so long as energy prices don't rise more quickly, um that's going to be good for mines. Also bear in mind that most producing mines um they will be managed through this. So what that means is that they will extract lower grades while they are profitable rather than the higher grades. So the idea that you can translate immediately


uh a higher gold price into a higher profit um I think you got to temper it a little bit and just understand the reality of it. The other thing I would say is that u gold is hardly owned. Um it's less than half a percent of all um portfolios if you like. [Music] In today's headlines, Morgan Stanley says gold's rally is far from over. Gold smashed a new record high on October 10th, breaking past $4,000 per ounce for the first time in history, and it's kept climbing since. But by October 21st,


that momentum hit a wall with gold tumbling as much as 6% in a single day, marking its biggest daily loss in 12 years. Still, gold is up an incredible 50% in 2025, securing its place as one of the top performing assets of the year. Analysts say this surge isn't random. It's fueled by a mix of policy shifts, geopolitical tensions, and economic uncertainty. Tariffs, the Israel Hamas conflict, fears over Federal Reserve independence, and the US government shutdown have all played a role in driving investors towards safe


haven assets like clothes. According to Morgan Stanley Research, the rally isn't done yet. The bank has revised its 2026 gold forecast upward from $3,313 to $4,400 per ounce, implying another 10% gain from early October through next year. But here's the thing. When every big bank starts flashing bullish headlines, that can sometimes be a red flag. Could gold be setting up for a deeper pullback before its next leg higher? What do you think? Morgan Stanley's metals and mining strategist Amy Gower put it this


way. Investors are watching gold not just as a hedge against inflation, but as a barometer for everything from central bank policy to geopolitical risk. She adds that further upside could come from a weaker US dollar, strong ETF inflows, continued central bank buying, and a climate of global uncertainty supporting demand for safe haven assets. Now, let's dive into the best moments from Morgan Stanley's latest interview. >> Physical metal tomorrow. And if he hasn't got it, he's going got to go and


lease it from somewhere. Um, so um, you know, the lease rates have shot up. I mean, typically they were sort of up to 30 40%. And there's some reports of them going up to 100% and more basically saying, you know, there's no more left to lease. Um and uh the other thing of course is that we see a backquidation which by definition is when the spot price is above the futures price. Um and people got very excited with that uh being over $3 at one stage which of course um would prompt um uh arbitrage.


I mean, people with silver sitting in uh Comx warehouses would think, okay, we better we'll, you know, will will uh ship some of that over and make make on the arbitrage. So, there have been lots of stories about that. Now, how true they are or whatever, I honestly don't know. Um I'm sure there's a bit of it, but probably it's probably exaggerated. What I would say is that the um backquidation um of spot over futures has actually declined now to around about a dollar. So it's come up way way


down. It still indicates that there is um a shortage. In other words, the squeeze on those who are short because the problem is that the vast majority of the silver in the LBMA vaults is ETF silver. I look at the other thing which which um puts additional pressure on the system is of course people look at silver they see silver going up they probably think they've missed gold and therefore the silver is a cheap way in so uh they go run out and buy ETFs ETFs have to source the metal and I think it was last week we heard that a


number of ETFs silver ETFs in um uh in India um you know suspended did uh um share creation because they couldn't source the silver. Uh and I think I think on that basis I mean really what we see is that silver is too cheap for these deteriorating monetary conditions. That is for for that is absolutely clear. It is therefore going higher. But the question is you have to ask yourself I mean as the price rises uh what are people going to do? Are they going to just take profits or are they going to say I'm going to hang on to my


silver because um things are not looking so good for the fiat currencies for the dollar whatever whatever gold is going up um gold silver ratio currently 84 you know should be below that why should I sell sell my silver so I think it's a situation which actually uh particularly through the growth of ETFs um a rising price could lead to further demand and less supply because the supply always has been from weak holders uh um in in in the paper markets. So it's I think I think Jesse this is a


fascinating situation. It's what they call a gifin good something which um reverses the normal supply and demand relationships on price. >> Massive news out of India today and it could change the global silver market forever. India has just unleashed silver as official bank collateral, setting a historic 10:1 gold to silver ratio that could reshape lending, boost demand and ignite a new monetary era for the white metal. In a landmark move, the Reserve Bank of India, RBI, has formally recognized silver as eligible collateral


for both bank and non-bank loans under new regulations taking effect in April 2026. This decision effectively enshrines silver's role alongside gold in India's financial system, marking the first time a major global economy has granted silver equal footing in modern banking. For decades, Indian households have relied on gold jewelry as a key form of collateral for personal and business loans, especially in rural areas where access to traditional credit is limited. Now, for the first time, that same


privilege extends to silver jewelry and ornaments. Under the new guidelines, borrowers will be able to pledge up to 10 kg of silver or 1 kg of gold as collateral for loans of up to 2.5 lock rupees, roughly $3,000. The policy applies to both banks and non-banking financial companies, NBFC's, a sector that serves millions of small borrowers across India. It also introduces standardized valuation and documentation procedures to ensure transparency and uniform lending practices. By giving silver a formal


monetary role, India isn't just modernizing its credit system. It's signaling a broader shift in how precious metals could function in the global financial landscape. This could trigger a massive surge in silver demand, influence global pricing, and even reshape reserve management strategies in emerging markets. Stay tuned because this may just be the beginning of Silver's remonetization story. If you find our video helpful, please like, share, and subscribe to our