gold news

 hey everyone welcome to bald guy money and this week we start from a weakening US economy because the media is finally starting to report on it I wonder why and in a week where we saw official US unemployment rise to 4.1% I am warning everyone that it's about to get worse and it's going to happen quickly as US government statisticians who have been hiding the severity of the economic slowdown start releasing data that needs to catch up with reality and will likely reflect that the US economy is in a recession

and has been in a recession for at least the last year now as a consequence of this investors remain fearful as they realize the bubble they live within is slowly bursting and you can see here we find ourselves for the third week in a row in extreme fear territory as the stock market selloff continues but something we are not seeing which is a surprise to most Financial Market observers is that we are not seeing investors running to the US dollar or us Bonds in response to this selloff in fact it's been quite the opposite with

the US dollar putting in its biggest weekly loss since November 2022 so if money isn't moving out of stocks and into the US dollar the question must be asked where the heck is the money going and there are multiple answers to that question especially if you consider the fact that the Euro had a good week but something we continue to see despite a 4.6% pullback in the S&P 500 and a a 7.5% pullback in the NASDAQ is gold and silver remaining strong in fact so strong that over the last 12 months they

are not only outperforming the S&P 500 which is something we have been following and know very well here on the channel but gold and silver are now outperforming Nvidia with both being up around 40% over the last 12 months while Nvidia factoring in the recent losses they've had is up only 34% over the last 12 months so with those major bits of news covered all of which indicate a major shift happening in the market right now in this video I will cover the following starting with how this shift

will prevent at least from my point of view a major 2008 style crash in the prices of gold and silver once that's covered we are going to talk about how these factors preventing a pullback could also trigger a long-term bull market for metals and an infinite money glitch for central banks and this is something that nobody is talking about yet and you'll only hear about it on this channel so please watch this video to the very end because these are two very important topics that you will

absolutely want to know about now just before we dive in please remember to check out www.summit.com if you want to buy gold and silver at a great price from a dealer you can trust including 5 ounces of silver at spot if you use code new customer link to this deal is in the video description below so we jump into this video by revisiting a stat that I showed you all last week in the intro section to my conversation with Peter schift and what that stat tracks is if we add up the value of all the top 10

investable Assets in the world what percentage of the total value is made up by gold and silver and as you can see here that share of value is on the rise right now in fact it's almost at 54% and has increased by more than one full percentage Point since last week's video and it tells us that in a world where the US Bond Market has crashed and isn't showing any signs of Life despite the market uncertainty we're seeing right now that it usually thrives in investors see gold and silver as the safest

options right now in a system built on debt and paper Investments now you may be asking how could that be if we're all armed with the knowledge of what happened in 2008 because when the markets sell off gold and silver sell off and when the market crashes gold and silver usually crash to and although that is true to a certain extent and we certainly got a taste of that in August of last year what many of you may not know is that the 2008 crash in metals prices and I've covered this here on the

channel before was made worse or exaggerated by the participation of bullan banks so banks that trade store and manage large amounts of gold and silver as they tried to support commercial banks that were struggling with liquidity and how they did that was they lent out metals to Banks that needed cash in some cases these were Metals belonging to central banks Yes you heard that right central banks and those borrowers sold the medals on the market to survive a situation that wasn't so different from this Bank Run

scene here in the famous Christmas movie It's a Wonderful Life and coming back to this image the fire sale persisted until October 2008 coinciding with the passage of the emergency economic stabilization act also known as the major 20 8 Bank bailout triggering a reversal in the prices of precious metals a full 6 months before the stock market bottomed out mind you as the banks that sold the borrowed medals bought them back and returned them with the help of the bailout money now a lot of things have

changed since 2008 first off bank bailouts are common place now we saw proof of that in March 2023 with the bank term funding program which I'm sure many of you will remember when the Federal Reserve intervened to basic Bally bail out atrisk banks with free money when Silicon Valley Bank collapsed and this kicked off a huge move up for both gold and silver not a huge move down and resulted in Gold breaking above the $2,000 level for the first time since 2020 before it Consolidated a bit and broke that historic $2,000 level for

good less than a year later what's more is bullan Banks simply aren't what they used to be back in 2008 and under the label of repatriation a topic that Josh fair from the Scotsdale mint said would be a very important topic moving forward when we sat down together and talked last month in Germany there are simply less opportunities for these bullan Banks to do a repeat of 2008 and a lot more risk considering the shortages bullan banks are already experiencing as more big players stand for delivery of

their precious medals which could be a sign that they want to eliminate the counterparty risk they were exposed to back in 2008 now this doesn't mean that it's a straight line up for gold and silver from here and it doesn't mean that it's a straight line down for the stock market from here and we have to keep in mind that some of the biggest up days for Investments happen in a bare market and some of the biggest down days happen in a bull market that's just the reality of things but for those of you

who are waiting for $2,000 an ounce gold to come back or for silver to go sub $20 again this precious metals train is moving China added another 5 metric tons of gold to its reserves just last month and if we take a look at the moving averages it's no stretch of the truth to say they are buying gold near $3,000 an ounce and they're not alone the Polish Central Bank is buying gold the Czech Central Bank is buying gold and big players are taking delivery of gold at these prices in the United States and

believe me when I say these big guys aren't taking delivery of gold they're not adding more gold in expectation of a major crash in prices and the reason this is happening is because we are no longer in the postc Cold War US dollar dominated World sure the dollar still plays a huge role in the global financial markets I won't deny it but that role is diminishing and there is a crisis in confidence in the US dollar that can't be undone yes the United States won the Cold War and that victory

in the Cold War inspired such confidence in the United States that governments around the world who were more than happy to Cozy up to the one and only remaining superpower ditched their gold without stopping to think if there would be consequences to it and they did it in every year as you can see here from 1989 all the way to 2009 until the sustainability of the US dollar was put into question and central banks reversed course in 2010 becoming net buyers again scared off by the bailouts scared off by

the money Printing and the B and the massive US money borrowing programs and today with the neutrality of the US dollar put into question there's no going back and what we're moving towards is a situation where when the poop hits the fan in the financial markets it's not the dollar that people are going to be running to anymore it will be gold and it might not be this time around but too much has changed to see a 30% drop in the price of gold or a 50% drop in the price of silver like we saw in 2008

this time around because it's the central banks that set the rules now I'm going to come back to the central bank setting the rules in a second but just to play devil's advocate for a moment even if we see that big correction in metals prices that everybody's expecting and that's a major if right now considering the fact that China is already stimulating their economy and US stimulus is probably right around the corner both of which will have positive effects on the prices of gold and silver

not negative but again to play Devil's Advocate even at a repeat of the August 2024 pullback ratios when we saw the start of the unwinding of the Japanese Yen carry trade and I've covered that in past videos even if we see a repeat of that at those ratios you're looking at about an 11% pullback in the price of gold at the most and an 18% pullback in the price of silver again at the most from here if the S&P 500 corrects by 30% bringing the index back to 4,000 which is what I expect meaning gold won't even

break below $2,500 an ounce and silver would retest an area of Rock Solid technical support in the mid $26 per ounce area and I still think this is an optimistic scenario for people waiting for a crash in Precious Metals prices now swinging back to the topic of the central banks setting the rules what I want to say here is that the secret is out the central banks no longer see the US dollar as a viable one-size fits all solution to the Global Financial system and gold is the only real viable alternative to the US dollar and there

is no viable alternative to gold today not yet as much as the Bitcoin guys want to dream and this data here which goes up to December 2024 proves it gold is what they recognize gold is what they buy and that is the reality until it changes if it ever Chang changes and if we are entering a world of revaluation where $42 per ounce gold on a balance sheet is going to go away and we're going to talk about this in a very important way in a moment there is no reason for a major crash to happen like

it did in 2008 because again if they are planning what I think they are planning it could mean they will take advantage of an infinite money glitch in Gold Yes you heard that right infinite money glitch and realistically it could include silver too which may actually be the only real alternative to gold or maybe I should say supplement in a world moving away from the US dollar now just before I cover the topics of revaluation and the infinite money glitch please remember that if you want to diversify

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Federal Reserve cannot print okay so moving on to this week's viewer question it comes from Daniel kurk and it ties in perfectly with this week's topic because he asked where gold revaluation will take us specifically to what price level now he dismisses the idea of Mark to Market which means valuing gold at its current spot price I think he's wrong and I'll explain why in a moment but this question brings about other important questions that mainly being if central banks are going to take

advantage if they're planning on taking advantage of the infinite money glitch so to start where I disagree with Daniel and I'm sure I will be able to clarify this with him in the comments section later on is that I believe Daniel sees the gold revaluation as a one-off change and as this article suggests the USA has to decide how much they want that go to be worth now in order to justify the national debt and I think many of my viewers who are watching this video right now probably see it that way and

looking at how much gold the USA has in reserve right now divided by the national debt from a few weeks ago when I last presented this data Daniel's $115,000 per ounce seems very realistic considering the fact that gold would need to be valued at $140,000 an ounce to back up all the US debt that $115,000 per ounce number that he mentioned would give that an 80% backing and I assume that's where the number came from now as I've said in the past I believe they will value the reserves around the current spot price let's even

say that will be $3,000 an ounce but what's important about this is that it puts a price floor at that level not a price ceiling and you guys really have to break out of the mindset that the evaluation is the new ceiling price for gold as it used to act as a ceiling in the past that is not the way it's going to be done this time and it leaves the price of gold open to further revaluation as the price naturally floats up on the market and this is where the infinite money glitch that the United States and other central banks

and treasuries around the world may try to take advantage of comes into play and it has its roots in crypto specifically Bitcoin with Michael sailor who is is the CEO of micro strategy now the idea is simple and I need you to hear me out before I explain how this relates to golden silver and I borrowed this image from James over at the invest answers YouTube channel to illustrate it because what Michael sailor is doing with Bitcoin is this he sells bonds or basically borrows money and says when

the money comes due you can convert those bonds into shares of my company by doing this he secures a much better borrowing price once he has the money he goes and buys Bitcoin and because the value of his company micro strategy is linked to the price of Bitcoin when the price of Bitcoin goes up because he's used that borrowed money to purchase the Bitcoin so does the value of his company and the appreciation in the value of his company allows him to issue more such convertible bonds more debt and buy more

Bitcoin with it and repeat the process driving up the price I guess until there's no more Bitcoin left to buy and this is called the infinite money glitch now how this relates to gold is this idea is being floated right now the issuing of a special convertible bond which is convertible into gold if the USA can't pay the loan back and this would allow the USA and other governments around the world who are holding gold mind you to secure funds at special interest rates lower than what the Market is demanding because it's

backed by gold which would presumably have that price floor I mentioned since a certain amount of gold would be linked to the bond establishing a higher guaranteed market value for gold and since governments of the world can issue their own currency there's nothing stopping them from continuing to buy gold bidding up the price and endlessly revaluing their reserves as they issue more and more bonds against the gold that is the infinite money glitch as it pertains to gold and central banks and

treasuries and borrowing against gold and this is precisely why I think they will take the mark tomarket approach and let the price of gold float up indefinitely which would at least in their eyes justify unlimited borrowing and make gold something that is very very hard to come by at some point in the future and Swinging back to Silver for a moment with the metal being as affordable as it is right now in comparison to gold in order to accelerate this infinite money glitch we could see central banks use the same

technique with silver at some point down the line so Daniel I hope that helps you understand how I see the topic of revaluation and although we may disagree a bit on how it will be done I think we both appreciate the implications and understand that a price floor of any kind that is higher than where it is now is a confirmation that precious metals are no longer a barbarous relic of the past and would result in US blasting through these 2033 price targets I shared on the channel last year so with

that said that's it for this video please remember that if you enjoyed the content to leave a like below if you have a question you'd like to see appear in a future video also remember to leave that in the comments section below I select one for every video that I do 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 I'm wishing you all a fantastic day and week ahead see see you all in the next video goodbye