Transcription
Hey everyone, and thanks for jumping back into the heavy metal verse. Today, we're going to talk about gold, as it has now broken through $3,900.
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It seems like a lot of different assets just continue to put in one all-time high after another. We have the S&P 500 continuing to put in all-time highs. We have gold continuing to put in all-time highs. We have Bitcoin continuing to put in all-time highs. Sometimes I struggle with what to even talk about, like what video to make, because a lot of things just continue to put in all-time highs.
But gold has been something we have talked a lot about, um, over the last few years, and and how it should be heading higher, and and how this was always the expected outcome. It, you know, it went through this process here where it, you know, it went down, came back up. But what we said was that eventually it'll tag the bull market support band and then go higher. And that's exactly what happened, right? I mean, after gold tagged it, you can see that it rallied since then another 20%.
And this has been kind of the story of this bull market for gold: is sometimes it'll it'll get a little ahead of where it might be, should maybe should be relative to some of these moving averages. It'll consolidate for a while, wait for them to catch up, and then move higher. Ultimately, this pattern should continue.
But I will say this, one of the things that we have talked about for a while is that when silver puts in an all-time high, it will likely lead to a short-term correction by gold. In the same way, when Ethereum put in an all-time high, it led to a correction by Bitcoin. Now, right now, silver is still not at an all-time high. So, gold is approaching a pretty big milestone here of $4,000, but silver has still not seen that sweep of the prior all-time high.
One of the interesting things that that people have talked about before with silver is that we're coming up to a level that has been hard for silver to durably really stay above for a long time. The first time silver hit this level, you know, around the same price, $48, was back in the 1980s. And after that, silver dropped about 92%. The next time it hit this level, it then dropped about 76%.
What I think is the most likely outcome for silver, I'm going to draw it out for you. I'm going to draw out what I think is going to happen for silver. I think it's going to run past these prior highs, right? So, I think it'll probably go above $50. I don't know exactly how high, but a little above 50, could be 52, could be 53, maybe goes to 54, 55, I don't know. But I think it will breach 50 and then get a pullback below these these levels, and then instead people will think it's going to drop way down here again. But I think it'll actually just be a consolidation phase and then and then it'll likely shoot back up. Something like that.
That's what we actually saw gold do, right? So, it gold had, you know, if you look at at some of these prior moves with gold, it had this all-time high right here. The first time it it passed through, it then got this sort of this long consolidation, but it eventually went higher. Now this consolidation period lasted two or three years, but still, it was just another accumulation range for anyone who cared to pick up a position in it.
So, what I think is going to happen is you'll see silver continue to go higher. It'll breach through the all-time highs. It'll lead to a lot of euphoria. After that, there there will likely be a multi-month pullback, at least to to basically punish late buyers, but it likely will just be a base. That consolidation period will likely be a form of base to ultimately send silver uh even higher.
So, that's how that's how I think this is going to play out. And the reason why I the video is called about gold, but the reason I'm talking about silver is because I think that price action for silver kind of influences what we might see for gold. So, watch for the breach of the all-time high above, you know, watch it go above 50. After that, you'll likely see a correction in gold. Not, you know, a a a correction that will completely end this bull market, but a correction that will um, you know, just punish late late buyers.
I mean, look at the last gold bull market we had. There was all sorts of, you know, big pullbacks, but ultimately it continued on. And and by the way, the financial crisis, which completely wrecked risk assets, was right here. Gold had a drawdown. It just continued on higher. So, I would remain long-term bullish on gold. I would say expect a pullback after silver breaches all-time highs, but it should be just an opportunity to get more. That is how I view this market.
One of the things, you know, with gold that we talked about a long time ago, I was looking at the playlist what we have for gold. And five years ago, I made a video saying, "Is gold headed to $6,000 over the next 6 to 9 years?" So, go watch that video. You'll see how I came up with it. But back then, this was 5 years ago. So, this was back in like, you know, 2020. Um, gold was probably around $1,600 or so. You can see it's gone up a lot since then.
I would say we're on track um for gold to potentially go to $6,000 uh over the next from this point uh I would say, you know, one to four years, if that makes sense. So, you know, back then the price of gold was like 1,600. Today, it's almost 4,000. This was 5 years ago, but I said 6 to 9 years. I don't think gold's going to hit 6K this year, and I would be surprised if it hit it next year, but I could see as we get later on into the decade, uh, it it's certainly becoming an increasing possibility. So, watch for that.
Um, and you can see we've been kind of celebrating every every time it goes up $300. We have gold approaches 3K, 3,300, 3,600. This one will be 3,900. Hopefully, silver can can get that move above 50. Hopefully, gold can break through 4K, lead to a multi-month consolidation period to ultimately build out and and hopefully just go higher from there.
Those are my general thoughts about about gold. Um, and and and how this is ultimately going to play out. You can see that, you know, it's playing out a lot similar to like prior bull markets where anytime there's a correction in risk assets, like gold can get a correction, but it recovers to all-time highs a lot quicker. Like think back to April um when uh April 2025 when risk assets had this, you know, large correction. Gold barely saw a dip and then it got to, you know, it just rallied all the way back up um pretty quickly.
And and so that's the thing about about it is that it it provides a nice hedge to your portfolio. It's like, yeah, like okay, if if the S&P gets a correction, it you know, maybe you'll see metals get a correction too, but they tend to recover a lot quicker. And and I think that trend will likely continue.
And you also can see, you know, historically, if you go look at like a correlation coefficients matrix um for crypto, stocks, and metals over the last 60 days, right? So, just over the last 60 days, you can see that the correlation between Bitcoin and gold is actually negative .04. So, there's not a, you know, there's really not a correlation there. Having, you know, having a a percentage of your portfolio in these other things just can kind of help out, right? When when Bitcoin, you know, like let's say you're you're more of a Bitcoiner, but having a a a percentage of it in these other things can help out because there are times, you know, where where Bitcoin is going sideways, like kind of over here, and that's when gold is going up. And perhaps when gold takes a break, maybe you'll see Bitcoin make a move, right?
So, I mean, having a well-diversified portfolio in in some of the key things, right? I'm not saying, you know, go buy every single precious metal, right? But just owning the blue chips of the ass of all these different asset classes, uh, just allows you to, you know, if there's a drawdown in one asset, then you have, you know, you have exposure to something else.
So, I think that that gold will likely go higher. Just look for a small correction after silver breaches the all-time high. I am I I do think silver will go above 50. I don't know how much higher above 50, but it should go above 50 before the pullback occurs. That's what I think is going to happen.
Thank you guys tuning in. Make sure you guys um subscribe to the channel. Give the video a thumbs up and again, check out the sale on Into the Cryptoverse premium at into the cryptoverse.com. I'll see you guys next time. Bye.