you're now at a crossroad where it's like okay does the US want to stay the military hedum on yes or no if you think yes then the US has to reindustrialize then then the decision is you need a weaker dollar to do it there's you cannot reindustrialize the US without a weaker dollar um and I think this is really what we're going to end up with almost regardless of who is elected between Biden or Trump uh I think it'll be much faster with Trump I think Trump inherently knows this Trump wants a weak

currency you hear ligh Heiser is m economic adviser talk about it all the time he himself says that the dollar is too high so I think if Trump gets elected you very quickly get you know policies put in place to weaken the dollar um and try to reindustrialize has broken down the silver market and identified the key factors that could lead to a massive rally in today's video we'll explored his insights and reveal why silver might be the best investment you can make right now stay tuned to learn how these

market dynamics could impact your financial future uh talked a lot about this but the way you have to conceptualize currency systems for me is the same thing as an operating system for a computer um and you know today US dollar is the Microsoft of of the world um it's the Microsoft of the world and that you know most people use it because everybody else uses it you know the reason I use Microsoft in my business said when we hire somebody new we can assume they know how to use they use Excel they can assume they know

PowerPoints all these things um and this is what the US dollar is it is the Microsoft of the system now having said this you know Microsoft has been of course the Behemoth of the software world but you know you've you've got other software companies that can provide great Services um and some of them over the past 10 years have grown much faster than Microsoft um even if Microsoft has done great have done even better um you know Apple comes to mind of course uh you know you look at Apple

over the past 15 years it's grown by Leaps and Bounds and it's grown by leaps and bounds by creating a separate operating system on a different platform you know it's created the smartphone created the iPad um and you know basically broke away from the sort of cons uh Monopoly that that Microsoft had over oper operating systems in general um and this is what the REM andb of course is trying to do um and it's doing it very very gradually um and so I you know I always say this dollarization

it's not a date it's not of you know it's not like water going from water to ice uh at a certain temperature it's just a slow gradual process uh and yes to your point you know I think in breaks you are seeing you know incremental other currencies uh being used for settlements you know we've moved five years ago from 100% of global oil being traded in US dollars to now only 80% of global oil being traded in US Dollars um big question is where will we be in 10 years time will we still be at 80% I I I definitely

don't think we'll be back at 100% um so will we be at 80 will'll be at 70 at 60 you know probably the number the right number will be will be somewhere around 70 or 60% of global oil being traded in US dollar and the rest in other currencies so it's it's slowly happening um and that presents a lot of opportunities elsewhere silver prices have been on a roller coaster ride lately with significant fluctuations capturing the attention of investors worldwide as of now the market is

witnessing a mix of cautious optimism and speculative fervor just recently silver experienced a solid bull run from March to May 2024 nearly reaching its first bullish Target of $32.70 however this rally stalled leaving many wondering what's next for the precious metal several factors contributed to this recent price movement elevated us treasury bond yields and hawkish commentary from the Federal Reserve have exerted downward pressure on Silver causing its price to Edge lower as a result silver currently

trades around $29.49 cents down 0.38% from its recent Peak this price drop highlights the market sensitivity to broader economic conditions and monetary policy signals amid this backdrop Market sentiment remains mixed while someon investors are cautious due to potential interest rate hikes and their impact on the economy others see this as a temporary dip presenting a buying opportunity understanding the current state of the silver market is crucial as we delve deeper into the factors that could propulse silver prices to new

heights um well let me just start off by saying you know when you look at China selling treasuries I think it's hard to blame China um you know when if you go back to two years ago little over two years ago you know all West countries seized all of Russia's assets uh that that were held abroad um and as we did this we literally we I say the Western World literally pointed to China and said you're next um you know if you don't do exactly what you're told you're next so imagine you holding a bunch of

us treasuries and you're told you know we just confiscated your best friend's money and we're coming for you next you'd be thinking hm do I want to keep a hold of this um and I think the answer is pretty obvious right the answer is no and to your point it's like okay what do I buy well if I buy a bunch of gold and I bring it back at home I always have this and nobody can take it away from me um which is of of course always the the the main argument for gold in the first place is that it's nobody's liability um

it's you know you hold a gold bar it's yours um it's what JP Morgan said uh gold is money the rest is credit um so so yeah China's going down this path I think partly because we told them to to to go down this path um now beyond that uh your second question on D dollarization is a very important one is China doing this out of fear you know because China's gold buying has really ramped up in the past couple years is it doing this out of fear or is it doing this out of a grander design of you know

going to places like Indonesia going to places like South Korea and saying look instead of trading in dollars let's trade in renman B and if you don't want to keep renman B bonds if you don't know what to do with these REM andb now AR ideally I give you rem andb for your nickel let's say if you're Indonesia I buy your nickel and if and you buy my cars you buy my Earth moving equipment you buy my telecom switches or my solar panels but if you still have REM andb leftovers then ideally you buy my

Chinese government bonds but if you don't feel comfortable doing that yes you know I have a Shang High Gold Exchange where you can trade your REM andb for gold um so you You could argue there's really two reasons China could be buying gold uh to the extent that it has and it's been doing it a lot one of them is fear following the Russia sanctions the other is um this desire to dollarize uh em trade um to be honest I like we could debate all day which it is at the end of the day it doesn't matter they're selling

treasuries they're buying gold and you know the reasons for it it's like yeah it's a nice debates it's interesting it's intellectually stimulating but the trend remains this and as China sells treasuries and buys gold what do you see you see treasury prices go down and you see prices gold and you see the price of gold go up so I don't think you need to overthink it that's the trend uh and you know it's we can again we can debate the reasons but at the end of the day we're

here to make money and the trend is there historically silver has experienced significant rallies often driven by a combination of economic uncertainty and Industrial demand one of the most notable examples is the 2011 silver rally where prices soared to nearly $50 per ounce this surge was fueled by a mix of factors including inflation fears a weak US dollar and strong demand from both investors and Industrial users looking back further we see that Silver's performance during periods of economic turmoil and Market

instability has often been robust during the financial crisis of 2008 for instance silver prices increased as investors sought Safe Haven assets this trend underscores Silver's dual role as both an industrial metal and a store of value understanding these historical Trends is essential because they provide context for current market dynamics Silver's past rallies were often triggered by a convergence of economic factors making it crucial to analyze how today's economic environment compares to

those previous periods by examining the historical performance of silver we can gain valuable insights into what might drive the next big rally and why experts like Louis Vincent G are optimistic about Silver's future prospects the US has had had a brutal wakeup call uh with the Ukraine war um I mean the US first and foremost sees itself as the world military haimon right it's the mil the world the one superpower uh that there is in the world when Russia invaded Ukraine I think the perception in the

west if you remember back then the talk was Russia is a a gas station masquerading as a country we uh we're going to like uh you know we're going to roll up Russia and you go back to the immediate weeks following the invasion it's like oh you know the Russian regime's going to crumble um economically we're going to have them on their knees in no time so you know we put in the sanctions become Rubble sorry that the rubble will become Rubble the rubble will become Rubble um and we're

just going to crush these guys um and what we find out two years later uh to I think the dismay frankly of the US military industrial complex is that Russia Today alone forget China Russia alone is out producing the US in terms of tank produ uction in terms of artillery shell production in terms of uh missiles in terms of cannons um and so we want to help uh Ukraine but what we find out is we've given Ukraine all of our weapons and we can't produce them fast enough we can't produce them fast

enough because we've de-industrialized which does leave you with a all of a sudden I think if you're the US military-industrial complex you wonder hold on can we be the military superpower and not have an industry behind us it's uh you know it it's what Napoleon you used to say uh amateurs talk strategy professionals talk Logistics um and the logistics of war is first and foremost the production of weapons I mean that's why the Western World War World War II because the us could massively outproduce Japan and

Germany together you know the US was already the world's industrial superpower at then so what we've all of a sudden fig realized is by de-industrializing you know staying the the world's hedgemon is it you know it's not possible so so that leaves you if you're in Washington today with a simple choice is okay we're no longer the world's military superpower you know we're no longer the world's hamon and we have to adapt to that option one or option two we have to reindustrialize now if you're

part of if you're like me and you believe that at the end of the day whether you have voted for the Republicans or the Democrats you end up with the same US military industrial complex in power and in Washington economic factors play a pivotal role in shaping the trajectory of silver prices and understanding these elements is essential to grasp why a potential rally might be on the horizon let's delve into the primary economic drivers that influence silver prices inflation interest rates and geopolitical tensions

inflation is one of the most significant factors affecting the price of silver as a tangible asset silver is often seen as a hedge against inflation when the value of Fiat currencies declines due to rising in inflation investors tend to flock to precious metals like silver to preserve their purchasing power this Behavior was evident in the 1970s During the period of stagflation where High inflation combined with stagnant economic growth led to a substantial increase in silver prices in recent times inflation has become a central

concern for both investors and policy makers the covid-19 pandemic disrupted Global Supply chains leading to shortages and driving up prices for goods and services furthermore unprecedented fiscal and monetary stimulus measures injected trillions of dollars into the economy stoking inflationary pressures as a result the Consumer Price Index CPI and other inflation metrics have been trending upwards creating a favorable environment for silver as an inflation hedge interest rates set by central banks like the Federal Reserve are

another crucial Factor influencing silver prices generally there is an inverse relationship between interest rates and silver prices when interest rates are low the opportun cost of holding non-yielding assets like silver decreases making it more attractive to investors conversely when interest rates rise the cost of holding silver increases as investors can earn higher returns from interest bearing assets like bonds currently the Federal Reserve has adopted a more hawkish stance signaling potential interest rate hikes

to combat Rising inflation this shift in monetary policy can put downward pressure on silver prices in the short term however the Market's reaction to interest rate changes is not always straightforward for instance if higher interest rates lead to a Slowdown in economic growth or trigger Financial Market instability silver could benefit as a safe haven asset thus the interplay between interest rates and silver prices is complex and multifaced geopolitical tensions also significantly impact

silver prices during times of political and economic uncertainty investors seek refuge and Safe Haven assets including silver historical events such as Wars political aels and international comp icts have often led to spikes in silver prices for example the Iranian Revolution and subsequent hostage crisis in the late 1970s caused a surge in silver prices due to fears of oil supply disruptions and broader geopolitical instability in the current Global landscape several geopolitical factors could influence silver prices tensions

between major powers like the United States and China ongoing conflicts in the Middle East and the repercussions of the Russia Ukraine war all contribute to a climate of UNC cty Additionally the trend of dollarization where countries seek to reduce their Reliance on the US dollar could have significant implications for the Global Financial system and commodity markets including silver the covid-19 pandemic highlighted the vulnerabilities in Global Supply chains affecting the production and distribution of many Commodities

including silver lockdowns labor shortages and logistical challenges disrupted mining operations and reduce the availability of silver um it's not really a choice you know you think we have to we have to produce uh so we have to reindustrialize and then you get to the really big Challenge and the really big challenge is this is industrializing is not that easy it takes a generation it's the older workers who train the younger workers you need specialized workforces you need entire Supply chains

you know like this guy produces this widget that goes into this machine that it's you know it's complicated stuff um it's it's un likee you know optim izing puppy videos on the internet um it's it's really like it takes like skills knoow um that sometime that are not taught at schools that are sort of made up on the job um and you know Germany has that to some extent China definitely has it Japan has it but to your point I think the US has lost it in the past few Generations because again the

50-year-old 60y old guy retires and if he didn't train a new 20-year-old guy and pass on his skills those skills die off with him so I highlight this because yes the US wants to reindustrialize um now the history of every industrialization shows that the best way to do it is protected by a very cheap currency like you know if you have a much cheaper currency than the next guy you can build your industry now today the US has by far the world's most expensive currency the US dollar is crazy expensive and I think most

Americans don't realize that they only realize it when they travel abroad like as soon as they travel abroad they're like oh my God everything's so cheap here um and uh the US is a very expensive place so you're now at a crossroad where it's like okay does the US want to St the military hedum on yes or no if you think yes then the US has to reindustrialize then then the decision is you need a weaker dollar to do it there's you cannot reindustrialize the US without a weaker dollar um and I think this is

really what we're going to end up with almost regardless of who is elected between Biden or Trump uh I think it'll be much faster with Trump I think Trump trp inherently knows this Trump wants a weak currency you hear ligh Heiser his main economic adviser talk about it all the time he himself says that the dollar is too high so I think if Trump gets elected you very quickly get you know policies put in place to weaken the dollar um and try to reindustrialize America now that doesn't mean it will be

successful but I think there'll definitely be an attempt to do it so you see a dollar devaluation coming absolutely I mean look you can't stay you can't stay you you you can't hope to reindustrialize without uh without a weaker dollar so the more you hear about the need for an industrial policy the more you need that you hear about the need for the US to reindustrialize that's the potential for a significant rally in silver prices is underpinned by several critical factors leading many to

speculate just how high the price could go based on the comprehensive information provided it's conceivable that silver could experience a substantial surge potentially reaching new historic highs first consider the trend of dollarization as more countries seek to reduce their Reliance on the US dollar the demand for alternative assets like silver is likely to increase this shift is not just a short-term reaction but a strategic long-term adjustment if this trend continues to gain momentum it

could drive substantial Capital into the silver market given that central banks and institutional investors hold massive reserves even a small reallocation from dollar to dominative assets to Silver could have a profound impact on prices historically significant rallies in silver prices have occurred during periods of economic uncertainty and high inflation with the current global economic environment marked by unprecedented fiscal and monetary stimulus measures inflationary pressures are mounting this creates a fertile

ground for silver to rise as investors seek to hedge against inflation if inflation rates continue to climb silver prices could mirror the dramatic increases seen during previous inflationary periods pot po Al surpassing the $50 per ounce Mark reached in 2011 industrial demand for silver is another critical Factor the transition to renewable energy particularly solar power requires substantial amounts of silver with global initiatives aimed at combating climate change and reducing carbon emissions the demand for silver in photl

take cells is set to soar as solar panel production ramps up this could create a sustained upward pressure on silver prices analysts suggest that if the solar industry grows as projected silver prices could easily breach the $50 threshold potentially reaching $70 or even higher per ounce Supply constraints further amplify this potential silver mining production has struggled to keep Pace with growing industrial and investment demand environmental regulations and the depletion of high-grade hores have constrained Supply

while new mining projects face lengthy development timelines this Supply demand imbalance suggests that any significant increase in demand could lead to Sharp price increases if current trends continue we could see silver prices climbing to $100 per ounce or more driven by both industrial consumption and investment inflows speculative activity also plays a pivotal role in the silver market during the historic 2011 rally the absence of overwhelming speculative pressure allowed prices to rise steadily

currently as speculators exit their La positions the market is resetting creating an environment conducive to a new rally should speculative interest reignite alongside increasing industrial demand and inflation concerns silver prices could experience a dramatic surge some Market analysts predict that under such conditions silver could potentially reach $150 per ounce or even higher in conclusion the convergence of dollarization inflationary pressures Rising industrial demand and Supply constraints sets the

stage for a significant rally in silver prices while predicting exact price levels is inherently uncertain the factors at play suggest that silver could surpass its previous highs and potentially reach unprecedented levels investors should stay informed and consider these Dynamics when evaluating silver as part of their investment strategy as always while the potential for high returns exist it is essential to balance this with a thorough understanding of the associated risks so to me the idea that China needs to

devalue is madness like it is already super super competitive and we're seeing this in the tariffs that are being put in place I mean basically you know the US saying look we need to put a tariff on Chinese cars on solar panels on on um uh on batteries uh for this to come out like remember when the Biden Administration came in a few years ago the message was you know climate change is the biggest emergency the world has ever faced that we need to all be in this together you know trust the science

uh climate is is is is imploding we're all going to die uh we have five years to Fig this fix this Etc so for these guys today to say yeah forget that forget everything we said about climate change we we actually need to put a massive tax on electric vehicles because we don't want Americans to drive 10,000 US dollar electric vehicles and we don't want Americans to get cheap solar panels and we don't want Americans to get cheap batteries so that they can store their own electricity at home we definitely

don't want that um for this particular Administration to say this is a massive testimony to how cheap the stuff is made in China right um I mean they're basically saying forget climate change don't worry about this all you need to worry about is the competitiveness of Chinese Goods so to think that at the same time China is going to devalue seems Madness to me well you know as somebody who has offices over there uh in that part of the world I really appreciate your perspective on this

specific topic because there's a lot of people out there suggesting that a uh devaluation of their currency is going to happen happen it's going to happen imminently and so I really appreciate that so well look so so on this I'll just add two more things um I really don't think for all the reasons I just highlighted it's going to happen but China would definitely not do it before the US election um it would be Madness for them to it's a political decision either way right they've got Capital

controls they fix the price um for them to do it before the US election when really it could be you know if you're China today you you've got you're hearing Trump saying I'm going to put 60% tariffs on all Chinese Goods um so first you wait till Trump comes in and then if he comes in you say well look if you put in a 60% uh tariffs we devalue 50% to leave us you know where where we were so like you're not going to shoot that Arrow before Trump comes in now I still don't think they do it uh but they

definitely did don't do it before the election one of the most intriguing aspects influencing the silver market today is the trend towards to dollarization this term refers to the process by which countries reduce their Reliance on the US dollar in international trade and finance historically the US dollar has dominated Global markets serving as the primary Reserve currency the main medium of exchange and the standard unit of account however growing discontent with this dominance has led to more countries

exploring alternatives to the dollar recent years have seen a marked increase in these dollarization efforts driven by a desire to mitigate the risks associated with overreliance on the dollar this trend is particularly pronounced in regions like southeast Asia the Middle East and Latin America countries in these areas are seeking to diversify their foreign exchange reserves and trade invoicing methods moving away from the dollar and toward other currencies and assets including gold and digital currencies the economic

rationale behind dollarization is multifaceted one of the primary concerns is the asymmetry between the US economic weight in the world and the dominant role of the dollar despite the US's shrinking share a global GDP in trade the Dollar's dominance has grown leading to a fragile Global Financial system heavily influenced by us monetary policy this concentration of power is seen as unsustainable and has sparked fears about Global Financial stability another significant factor driving dollarization

is the perception that the US has weaponized its curcy to advance foreign policy objectives sanctions imposed on countries like Russia have highlighted the potential risks of holding dollar denominated assets prompting affected Nations to seek alternatives to mitigate their exposure to US economic sanctions this shift away from the dollar has important implications for the silver market as countries diversify their reserves and reduce their dependency on the dollar they often turn to tangible assets like gold and silver central

banks particularly in Emerging Markets have been increasing their gold purchases as part of this diversification strategy this trend is also contributed to the rising demand for silver as it is often used in conjunction with gold for monetary and investment purposes additionally dollarization efforts have led to a broader revaluation of global Trade Practices more countries are opting to settle International transactions in their local currencies or through barter agreements this move reduces the demand

for dollars and can lead to increased volatility in foreign exchange markets further boosting the appeal of silver and other precious metals as Staple stores of value the push for dollarization also aligns with the broader geopolitical shift towards a multi-polar world as major economies like China Russia and India pursue policies to enhance their financial Independence the global economic landscape is becoming more fragmented this fragmentation increases uncertainty and can drive investors towards Safe

Haven assets like silver the rise of Central Bank digital currencies cbdcs is another aspect of dollarization that could impact silver prices many countries are developing their own digital currencies to facilitate faster and more secure crossb transactions while the primary goal of these digital currencies is to modernize Financial systems they also represent an effort to reduce Reliance on the dollar dominated Financial infrastructure as these digital currencies gain traction they could further diminish the Dollar's

dominance enhancing the attractiveness of silver as an alternative asset overall the trend towards dollarization reflects a significant shift in the global economic order while the dollar is unlikely to lose its status as the world's primary Reserve currency overnight the increasing momentum towards diversification and financial Independence among major economies is reshaping the market dynamics for silver this shift presents both challenges and opportunities as countries and investors seek alternatives to the dollar silver

stands to benefit as a valuable component of a diversified Reserve portfolio this potential increase in demand could be a crucial Factor driving the next big rally in silver prices making it an exciting time for silver investors to stay informed and engag with these global economic Trends code word for it's a polite way to say we need to devalue okay so Lou speaking of devaluation currency devaluation there's been a lot of chatter around the world's number two economy China devaluing their

currency the remm so do you expect a devaluation to happen there and if they do devalue their currency what would the you know the knock on effects be of that kind of move to the US consumer the economy and the dollar so let me say this I think like all the talk of all the people who run around saying China needs to devalue China needs to devalue are people who've either never traveled to China or who haven't traveled there in the past five to six years um I think if you travel in China today you are all

struck at how cheap everything is um so I mean you just give you a few example like today you want to go to New York you want to stay at the Four Seasons Hotel in New York it's going to cost you, 1500 bucks you want to stay at the Four Seasons in London or in Paris is going to cost you 2,000 bucks you want to stay at the Four Seasons in Shanghai or Beijing it's cost you $200 so so that's you know you want to take a train from New York to Chicago that's going to be a 21h hour train and

it's going to cost you $200 now same distance it's actually a bit bigger but almost it's New York Chicago 780 miles Beijing Shanghai is 850 miles Beijing Shanghai 850 miles 5H hour train ride 80 so um you you want to buy a car you know cheapest electric car in the US is the Nissan Leaf $30,000 cheapest electric car in Germany is the Dasia spring it's €25,000 euros what's the cheapest car in China you take the byd seagull $9,000 um you know smartphone costs you take the Hua pulse or the the xiaomi 14

I think you know bigger screens much better more more storage than an Apple iPhone and it's basically roughly 60% of the price of the Apple iPhone like anything in China is so much cheaper that you know you go there and you're like what is is the hotel is the Four Seasons in Shanghai supposed to be 100 bucks a night you know like how much cheaper do you want how much cheaper do you won this um so you know and this cheapness is of course reflected in China's trade data China today is

running trade surpluses of 70 billion a month now put things in perspective this is bigger than the Chinese then the German and Japanese Trade Surplus add their peaks put together never in the history of the world has a country run trade surplus of 70 billion a month the Dynamics of supply and demand play a crucial role in determining silver prices unlike gold silver has extensive industrial applications which means its demand is influenced not only by investment and monetary considerations but also by its use in

various Industries as we delve deeper into the supply and demand aspects it becomes clear how these factors could contribute to a significant rally in silver prices silver is indispensable in several key Industries including Electronics solar energy and medical devices its unique properties such as high electrical conductivity and thermal conductivity make it an essential component in manufacturing a wide range of products the growth of these industries directly impacts the demand and for silver for instance the

expansion of the electronics Industry driven by advancements in technology and the increasing use of electronic devices continues to boost the demand for silver similarly the push towards renewable energy sources particularly solar energy has led to a surge in the use of silver in photovoltaic cells the demand for silver in the Solar industry is particularly noteworthy solar panels which convert sunlight into electricity rely heavily on Silver for their efficiency as the world ships towards Greener Energy Solutions to combat

climate change the demand for solar panels is expected to grow exponentially this growth will likely drive up the demand for silver creating upward pressure on its prices on the supply side silver mining is a complex and capital intensive process the majority of silver is produced as a byproduct of mining other metals such as gold copper and zinc this means that silver production is often influenced by the market conditions of these primary Metals when prices of primary metals are low mining activities slow down leading

to A reduced supply of silver additionally environmental regulations and the depletion of high-grade Silver Mines further constrain the supply these factors contribute to a tighter Supply scenario which can drive prices higher when demand increases recent Trends have shown that silver mining production has not kept pace with the rising industrial demand this Supply demand imbalance is a key factor that could trigger a substantial rally in silver prices as industrial applications continue to grow

the pressure on Supply will intensify potentially leading to significant price increases moreover the silver market is also influenced by Recycling and above ground stockpiles while recycling can provide a supplementary source of silver it is not sufficient to meet the burgeoning demand from industrial applications above ground stock piles which include silver held by investors and governments can act as a buffer to absorb short-term Supply shocks however if these stock files are drawn down too

quickly to meet demand the market could experience further Supply constraints pushing prices higher investor demand is another critical aspect of the silver market economic uncertainty geopolitical tensions and concerns over currency stability Drive investors towards precious metals like silver as safe haven assets this investment demand can create additional pressure on Supply especially during times of economic instability when investors flock to Silver as a hedge against inflation or currency devaluation it can lead to

substantial price increases the trend of dollariz a as previously discussed also intersects with supply and demand Dynamics as countries and investors seek alternatives to the US dollar the demand for tangible assets like silver is likely to increase this shift can amplify the demand side of the equation further straining the already tight Supply and driving prices higher in conclusion the supply and demand dynamics of silver are influenced by a multitude of factors including industrial applications mining

production recycling investor demand and geop political Trends the growing demand from Key Industries coupled with constrained Supply sets the stage for a potential significant rally in silver prices as these factors continue to evolve the silver market remains poised for substantial gains making it an attractive investment opportunity for those looking to capitalize on these market dynamics um the second answer the second question is much easier yes you know we we are in the midst of a of a protectionist trade War um and look I

think the the question of tariffs is is one of those that uh neatly divide opinion but you know the bottom line is tariffs make for higher prices for Consumer um now the reality is that a lot of countries over the years have developed under the uh shelter of tariffs um you've seen this uh across you know in Japan they use tariffs to grow their industry in South Korea they use tariffs to grow their industry and in China that they've done the same so tariffs as part of I would say a broader

industrial policy and an economic plan um can sometimes spontaneously make sense but let's not kid ourselves that fundamentally tariffs are protecting producers to the detriment of the consumer now the US economy happens to be 70% consumption uh so what you're saying when you're putting in tariffs is you're saying we're going to penalize our 70% of our GDP GP to grow uh I think us industry today is like seven or eight% of of of GDP because we need we need to grow this now this is you know a

political Choice uh and perhaps that's fine now I would say that if tariffs are part of a greater plan then they can potentially work economically over the long term if tariff is the plan if all we're doing is throwing tariffs for political reasons to look good to win some votes in Michigan and wiconsin um then actually economically they make little sense so you know when you look at the US tariffs I would say here's the question is do you think that's part of a bigger plan to reindustrialize the us

or do you think it's just political posturing if it's just political posturing is just going to end up costing the consumer money for no long-term benefit speculative activity in the silver market plays a significant role in price volatility and overall market dynamics understanding how speculators influence the silver market helps us grasp the potential for future price movements and the factors that could drive a significant rally speculators including hedge funds and individual Traders often enter the

silver market seeking short-term profits from Price fluctuations their trading activities can create substantial price swings as seen during the bull run from March to May 2024 during this period a surge of speculative interest pushed silver prices towards their bullish Target of the rally stalled highlighting the impact of consensus trades consensus trades occur when a majority of Market participants hold similar positions either long or short in the case of silver the market witnessed an excessive

number of speculators betting on the long side which ultimately prevented prices from moving higher markets tend to correct when too many participants are positioned in One Direction leading to price reversals and increased volatility the role of speculative activity is further emphasized by historical precedence for instance during the historic 2011 silver rally there was no consensus long setup among speculators allowing prices to rise more sustainably this absence of overwhelming speculative pressure enabled silver to

reach nearly $50 per ounce driven by genuine demand from both investors and Industrial users in recent months there has been a notable shift in speculative activity within the silver market speculators have started to exit their long positions driven by market Corrections and the realization that consensus Trad rarely end well this development is crucial for the future trajectory of silver prices as speculators give up their La positions it creates an environment where the market can reset and prepare for the

next potential rally the departure of speculators from the silver market is a promising sign for those anticipating a future price surge with fewer speculative positions the market is less likely to experience sudden sharp Corrections allowing for a more stable and sustained price increase this phenomenon aligns with the Classic Market Dynamic where specula leers often exit just before a significant upward movement Additionally the broader economic environment and Market sentiment play a role in shaping

speculative activity factors such as inflation fears interest rate expectations and geopolitical uncertainties influence Traders decisions to enter or exit the silver market as these macroeconomic conditions evolve they will continue to impact speculative behavior and consequently silver prices it's important to consider that speculative activity is not inherently negative for the Market while it can lead to increased volatility it also provides liquidity and can amplify price movements in both directions Savvy

investors can take advantage of these fluctuations by timing their entries and exits based on Market signals and Trends furthermore the current economic backdrop characterized by high inflation and potential interest rate hikes provides a fertile ground for speculative interest in silver as investors seek to hedge against economic instability and currency devaluation Silver's appeal is a safe haven asset grows this increasing interest can drive speculative activity contributing to higher prices in the near future in

summary speculative activity is a double-edged sword in the silver market capable of driving both volatility and significant price movements the recent reduction in speculative lawn position sets the stage for a potential rally as the market resets and prepares for a new wave of Interest understanding the interplay between speculators and market dynamics is crucial for anticipating future price trends and recognizing opportunities for investment in silver as we continue to explore the factors influencing silver prices it becomes

evident that speculative activity will remain a key component of the Market's behavior and potential for growth the the biggest opportunity of course for me out of this trend is an Emerging Market debt and this is something that people haven't looked at but you know so far this decade whether you take the debt of Brazil of India of Indonesia of China of Mexico are you the big Emer markets all of their debt the returns are absolutely crushing US dollar treasuries not by a little but I'm not talking like you know

5% outperformance I'm talking outperformance of 30 50 100% between us treasuries in just the past four years um between the debt markets and what's fascinating is this is occurring against a backdrop where China hasn't been very strong it's occurring against a backdrop where you've had a massive Yem crisis with Russia invading Ukraine and it's occurring against a backdrop where the FED as as tied in monetary policy aggressively now historically each time the FED Titan em debt would

puke um but now em debt again it's not like outperforming us treasuries by little it's it's just absolutely crushing it so it's uh the the dollarization is gradually happening and the beneficiary of it is em currencies and EM debt to gain deeper insights into the silver Market's potential for a substantial rally we turned to expert analyses and predictions particularly those of renowned Market analyst Lou Vincent gave his comprehensive breakdown of the silver market and identification

of key drivers provides a valuable perspective on why silver might be poised for significant gains Lou Vincent gaves expertise in global economics and financial markets lends considerable weight to his predictions according to G several interconnected factors could lead to a bullish scenario for silver one of the primary drivers he highlights is the ongoing trend of dollarization as more countries and investors seek alternatives to the US dollar the demand for tangible assets like silver is likely to increase this

shift away from Dollar denominated assets is driven by both geopolitical tensions and economic pragmatism as Nations aim to reduce their exposure to US economic policies and potential sanctions gave also points to the impact of monetary and fiscal policies on silver prices the extensive monetary easing and fiscal stimulus measures implemented by governments worldwide in response to the covid-19 pandemic have led to significant liquidity in the Financial system this excess liquidity often Finds Its way into commodity

markets including silver as investors seek to hedge against inflation and currency devaluation the result is increased investment demand for silver which supports higher prices another crucial Factor discussed by Gabe is the role of central banks in the silver market central banks particularly in Emerging Markets have been diversifying their reserves by increasing their Holdings of gold and to a lesser extent silver this trend is part of a broader strategy to reduce edce Reliance on the US dollar and enhance Financial

stability as central banks continue to build their precious metal reserves the demand for silver is expected to rise contributing to its bullish Outlook in addition to these macroeconomic factors G emphasizes the importance of industrial demand and driving silver prices the ongoing technological advancements and the global push towards renewable energy sources such as solar power have significantly boosted the industrial use of silver photoville take cells and solar panels for example rely heavily on Silver for their efficiency

as the adoption of solar energy accelerates so does the demand for silver creating upward pressure on prices gabes analysis also considers the current Supply Dynamics in the silver market silver mining production has not kept pace with Rising industrial demand leading to a tighter Supply scenario environmental regulations declining more grades and the capital intensive nature of mining further constrained Supply these Supply limitations coupled with robust demand set the stage for potential price increases moreover Cape

highlights the impact of speculative activity on silver prices while speculation can lead to short-term volatility it also has the potential to drive significant price movements as speculators exit their long positions as seen in recent Market Corrections the stage is set for a more stable and sustained rally this reset and speculative activity aligns with historical patterns where major price surges often follow periods of reduced speculative interest in conclusion Ludy Vincent GES insights into the silver market underscore the

convergence of several critical factors that could drive a substantial rally in silver prices dollarization efforts monetary and fiscal policies Central Bank Reserves industrial demand Supply constraints and speculative activity all play integral roles in shaping the Market's Outlook by understanding and analyzing these elements investors can better anticipate potential price movements and position themselves to benefit from the expected silver Valley gab's expert analysis provides a comprehensive framework for navigating

the complexities of the silver market and underscores the potential for significant gains in the near future I like the fact that you talk War because no please what what what you have to to remember is that this generation of Chinese leader and cin ping especially um they they grew up during the cultural revolution they were sent off to they were pecked off to go to the countryside to till the Earth with their bare hands you know for those listeners of yours who haven't read about the culture

Revolution it was a very very dark time in in China's history this generation went through an extremely extremely dark time and they were shipped off to the countryside with the only book to read for basically five years that they could read was chairman Ma's Little Red Book and that that's all they had to read now Chairman's Ma's little red book is really a book on how to conduct Guerilla Warfare um that you know you you read it it's all about you know it's all about

his thoughts about how to do Guerilla Warfare and his number one advice is when your enemy picks a battlefield you attack him somewhere else you so if the US decides to pick the battlefield of um of uh tariffs China isn't going to respond to the battlefields of tariffs they're going to respond somewhere else which goes back to the uh point you just started with uh what is China doing today it's selling bonds buying gold selling bonds buying gold so the US decides to attack here we attack over

there the overuse of economic sanctions by the US government has played a significant role in triggering mass sell-offs of the dollar in favor of assets like silver particularly among key geopolitical Rivals such as China and Russia this shift is driven by a combination of economic pragmatism and strategic maneuvering as these countries seek to insulate themselves from the financial weaponization of the dollar economic sanctions have long been a tool of US foreign policy aimed at exerting pressure on Nations that oppose its

geopolitical interests however the extensive and frequent use of these sanctions has led to unintended consequences notably pushing targeted countries to seek alternatives to the dollar dominated Financial system the sanctions imposed on Russia following its actions in Ukraine and other geopolitical disputes have been particularly influential these sanctions included freezing Russian assets held abroad and cutting off access to International Financial systems like sft such measures highlighted the risks

associated with holding dollar denominated assets assets as they can be rendered inaccessible by US policy decisions for countries like China and Russia the possibility of being subjected to similar sanctions has prompted a strategic reassessment of their financial reserves and Trade Practices holding large amounts of US Dollars exposes these nations to potential economic disruption if their assets are frozen or their access to global financial markets is restricted as a result both countries have

accelerated efforts to diversify their reserves moving away from the dollar and increasing their Holdings of alternative assets including gold and silver China for instance has been steadily reducing its Holdings of US Treasury bonds a trend that has been particularly pronounced in recent years instead China has been ramping up its purchases of gold and by extension silver as part of a broader strategy to diversify its reserves this shift is not merely a reaction to immediate geopolitical tensions but a longterm strategic move

to reduce vulnerability to US economic influence by holding tangible assets like silver which are not subject to the same political risks as dollar denominated assets China can better protect its Financial stability Russia's approach has been similar in response to the sanctions imposed on it Russia has significantly increased its gold reserves and by proxy its interest in silver the move to acquire more silver is part of a broader strategy to fortify its economy against potential future sanctions silver being a precious metal

with intrinsic value and extensive industrial uses provides a hedge against the volatility and risks associated with the dollar the trend towards dollarization among these key geopolitical Rivals is further reinforced by their collaborative efforts to establish alternative Financial systems and trade mechanisms China and Russia have been working on developing their own crossborder Payment Systems reducing their Reliance on us-dominated infrastructures like sft additionally both countries have been promoting the use of their own

currencies in bilateral trade agreements thereby diminishing the role of the dollar in their economic interactions this strategic pivot away from the dollar towards silver and other tangible assets is not just about mitigating risk it is also about asserting economic sovereignty by reducing their exposure to the dollar China and Russia aim to increase their financial Independence and reduce the leverage that the US can exert over them through economic sanctions this move towards greater autonomy in financial matters is a

critical aspect of their broader geopolitical strategies in summary the overuse of economic sanctions by the US has triggered a significant shift among key geopolitical Rivals like China and Russia these nations are divesting from Dollar denominated assets and increasing their Holdings of silver and other tangible assets to protect themselves from potential economic disruptions this strategic realignment is driven by a desire to reduce vulnerability to US influence and to assert greater economic

sovereignty highlighting the profound impact of geopolitics on Global Financial markets sir is it's going to depend very much on who you are um what the US has done in recent years is the US has come out and said look we're splitting the world between good democracies with whom we can be friends and everybody else and if you're not a democracy we think we think that we have deep big problems with you we think that in essence you're you know it's the white hat versus the black hats it's a

you know you're not a democracy you're not part of our group and we're liable to take Financial sanctions against you at any given point um and even if you're an old friend like Saudi Arabia um we're going to say that you know you're not reputable and we're going to refuse to shake your hands publicly as Biden did early in his mandate so if you send that message out to all the Emerging Markets now most of the Emerging Markets tend to be you know not not not always democracies um so you

send that message to the non-democratic countries and in essence what you're saying is you guys should invest in us treasuries right what you're saying is you're you're you just made US Treasury Holdings for these guys much more dangerous now the reason they held Us treasuries in the first place of course was to settle their trade you know the reason if you're Kenya if you're Bangladesh if you're Indonesia the reason you own us treasuries is to settle you know the oil you might buy or

the Machine Tools or the semiconductors or whatever else you might buy in US Dollars now there you've had two massive changes the first is Russia is now coming in and saying hey you need Commodities I'll sell them to you for your own local currency because I can't use US Dollars anyway um so all of a sudden if if if you have no moral problems with buying stuff from Russia and typically if you're poor you can't afford to have moral problems um so if you're India you're like yeah you know

what I'll buy and you're giving me or at a discount sure and you take rupees I'll do that deal every day of the week and twice on Sunday um it's like you know I'm going to do this all the time so you've got this and now you've got China coming in and saying hey you need Machine Tools you need cars you need a PowerPlant you need a port you need a railway I can provide all these things for you uh and tell you what I'll provide the credit for it as well um you know yes this will be pric in rem andb

but I'll fund it and you can pay me back over time by selling me nickel by selling me tin by selling me wheat whatever whatever it is that you happen to be selling um and so all of a sudden the need for us treasuries have become more dangerous and the need for them isn't as acute as it used to be as we navigate the potential for significant changes in the silver market driven by geopolitical shifts economic policies and Rising industrial demand it's crucial for individual investors often

referred to as silver stackers to consider how much silver they should hold to prepare for these coming events the answer depends on several factors including individual Financial Bulls risk tolerance and overall investment strategy first and foremost it is essential to understand that silver like any investment carries inherent risks while the potential for significant gains exists especially in light of the factors we've discussed investors should approach silver stacking with a wellth thought out strategy that balances

potential rewards with risks a common recommendation for precious metals allocation in a diversified Investment Portfolio is between 5% and 10% of total assets this allocation helps to hedge against inflation currency devaluation and economic uncertainty without overexposing the investor to the volatility of the metals Market given the current economic climate and the potential for a significant silver rally some investors might consider leaning towards the higher end of this range or even slightly exceeding it depending on

their confidence in the market dynamics and their financial situation for more aggressive investors who are particularly bullish on Silver an allocation of up to 15% to 20% of their Investment Portfolio might be appropriate this higher allocation reflects a stronger conviction in Silver's potential to outperform other assets du to factors like dollarization increasing industrial demand and constrained Supply however it's important to remember that higher allocations also come with increased

risk and such a strategy should be pursued with caution the amount of silver to hold can also be guided by the investors long-term financial goals and the role they expect silver to play in their portfolio for those viewing silver primarily as an insurance policy against economic turmoil a modest but steady accumulation of silver might be sufficient this approach ensures that the investor has a safety net without committing too much Capital to a single asset class on the other hand investors who see silver as a key component of

their long-term wealth building strategy might aim to build a more substantial position in this case it could be beneficial to set specific accumulation targets based on personal financial projections and market conditions for example aiming to acquire a certain number of ounces per year or month can help build a significant position over time taking advantage of dollar cost averaging to mitigate price volatility in Practical terms the amount of silver to hold can also be influenced by storage considerations physical silver

requires Secure Storage whether it's in a home safe A banks safe deposit box or a professional storage facility each option comes with its own costs and security considerations which should be factored into the overall investment strategy for those holding large quantities of silver professional Storage Solutions might offer the best balance of security and accessib ility Additionally the form of silver held can impact both the ease of accumulation and future liquidity Common forms include bullion bars coins and rounds each has

its advantages coins are typically more recognizable and easier to sell in small quantities while bars can offer lower premiums over the spot price diversifying the types of silver held can provide flexibility in both accumulation and liquidation phases in conclusion the amount of silver stacker shipold depends on individual financial goals risk tolerance and broader investment strategies a typical allocation might range from 5% to 10% of the Investment Portfolio with more bullish investors considering up to 20%

setting clear accumulation targets considering Storage Solutions and diversifying silver forms are all essential steps in preparing for potential Market shifts by approaching silver stacking with a balanced and informed strategy investors can position themselves to benefit from the expected Dynamics in the silver market while managing the associated risks so then you have what do I do with these reserves uh so you can go down the Indian Path which is what Modi is doing and the why the country is going

absolute bananas and say you know what G to spend it on domestic infrastructure spending I don't need to have as much savings as I used to have because now I've got these long-term deals with Russia for the Commodities I need got these these uh these credit deals you know in different currencies so I can go out and spend I've got 700 billion reserves I'm going to spend 150 billion a year for the next 5 years rolling out infrastructure that might economy needs so that's option one um so you just let

go and you you just need fewer reserves than you used to um the other option to your point is you say you know what the world is still an uncertain place I still need to keep reserves us treasuries aren't as safe as they used to be what's the next best best thing well yeah you C you fall back on gold right it's liquid it's uh and again it's nobody if you've got it in your own country nobody can take it away from you unless you get invaded uh but you know a lot of the countries around the world

don't have to really worry about being invaded bringing all these factors together it becomes clear that the silver market is on the cusp of a potential rally supported by a convergence of macroeconomic industrial and speculative forces as we conclude our exploration let's synthesize these insights and understand how they could lead to a significant rise in silver prices first the trend of De dollarization is undeniably gaining momentum countries around the world are actively seeking alternatives to the

dollar driven by geopolitical tensions economic pragmatism and a desire for greater Financial Independence this shift is prompting central banks and investors to increase their Holdings of tangible assets like silver enhancing its appeal as a reliable store of value as dollarization efforts continue to spread the demand for silver is likely to grow providing a robust foundation for higher prices second the ongoing inflationary pressures and monetary easing policies have flooded the global economy with liquidity

government's fiscal stimulus measures aimed at mitigating the economic impact of the covid-19 pandemic have led to significant increases in money supply this excess liquidity often Finds Its way into commodity markets including silver as investors seek to protect their wealth from the eroding effects of inflation with inflation fears still prevalent Silver's role as an inflation hedge becomes increasingly attractive driving up investment demand third industrial demand for silver is poised

for substantial grow growth the push towards renewable energy sources particularly solar power is accelerating worldwide Silver's critical role in photable take cells for solar panels ensures that demand from the solar industry will continue to rise I mean that's that's China's main goal right and it's been for the past 10 years um so it's undeniably happening with a lot of countries in Africa with a lot of countries in Southeast Asia with a lot of countries in Central Asia now

countries that I would say in the whole scheme of things don't move the needle very much you know who cares about how Kenya settles its trade who cares about how usbekistan or kyrgistan settle their trade um it's their they sort of you know minnows in in the whole ocean of of global trade now of course you could also argue you know all these minnows it adds up after a while to to something but you know the big behemoths the the Europe of this world the Saudi Arabia um that is still you know Europe all of

European trade intra European trade is no longer in dollars right it's all Euro now um and so the dollarization of Europe has already happened uh you know when France trades with Germany there are no dollars being exchanged when um now you know the so the big Behemoth uh in in the room probably remains Saudi Arabia on this front and there it it's hard to imagine that Saudi Arabia is going to turn away from the dollar any time soon partly because you know Saudi Arabia depends on the US for its own

security um dep depends on the US for arm sales uh the Saudi Family itself the royal family is sort of protected uh indirectly by the US so as long as this is the case you know I I think that that remains the Middle East remains dollar-based in essence and and perhaps you know the recent events we've seen in the Middle East uh are are a testimony to this where uh China's done its very best to not be involved um to not come in and say hey we're going to help sort this out um it's done its very best to

say you know what not not really my problem uh and I'm not I don't want to get in the middle of this mess while you know the US is is for historical reasons right in there oh let's give Aid to Israel let's threaten Iran let's you know so the US has no qu let's put a bunch of boats in the Red Sea um the US just get stuck in um so you know so that's where we are