Transcription
The question you have to ask yourself is who's going to do the selling? Where, where is the, you know, metal going to come from? So obviously it's going to come from the mining stocks and they actually can't produce that much. So prices are going to soar, profits are going to soar in the industry and I think investors, uh, after a long, uh, time of waiting are finally going to be rewarded for their patience.
Well, the fundamentals for silver are are great. I mean, first of all, silver is now catching up to gold because gold, you know, kind of was the only precious metal moving for the last couple years. And now you got silver, you got platinum, right, following gold's lead. Uh, in all bull markets, uh, you know, precious metals bull markets, you would expect silver to outperform gold. And now that's happening. And that's going to continue. I think you're going to continue to see more appreciation, albeit with more volatility in in silver than gold. But both metals have a long way to go from here. And the fact that silver is now leading is a positive sign for gold. You know, it was always kind of a knock on gold that it wasn't being confirmed by silver. And there are a lot of people that thought, well, it just means gold's going to sell off. And that's how you know you're going to get the valuations come back to normal is not with silver going up but with gold coming down. And I always believed it would be the opposite. It would be gold catching up. And you know, I've been, uh, proven right on that forecast because silver has, you know, made up for a lot of lost ground. And, uh, so, you know, the metals are going higher and I got, you know, a lot of silver. I myself, I have silver mining stocks but of course all the gold mining companies also mine silver. People forget about that, right? But a lot of the mining companies, the gold miners, they don't report silver as a revenue item, they use it to offset their costs because it's a byproduct of gold. So the more, the higher the price of silver, the cheaper it is for them to get their gold. So if you think about these mining companies, their two biggest costs other than labor are energy and then what they get from their silver. And energy is cheap. You know, it's as cheap as it's ever been. And they're getting more money for their silver, uh, which reduces the cost of mining gold. I mean, they can make so much money off of silver, they might get the gold for free. Who knows? Uh, but silver that they used to get $20 an ounce for, $25 an ounce, they're now getting $95 an ounce. That, that is a huge difference, uh, for these, for these mining companies. And of course, you know, it might cause some of the gold mining companies to try to focus, you know, maybe they got some silver they haven't really been paying attention to. But, uh, now all of a sudden, you know, I mean, pretty soon silver is going to be more expensive than gold was, you know, cuz when gold started in 1999, 2000, gold was under $300 an ounce. Pretty soon silver won't be, you know, I don't know how many, how long it'll take, but we're going to go over a hundred, uh, shortly and we could be over 200 by the end of the year.
According to Peter Schiff, the US faces a worse crisis than 2008 as central banks dump dollars for gold. Silver could hit $200 by year-end while mining stocks remain severely undervalued. Wall Street doesn't understand the earnings explosion coming. Bitcoin failed the test, dropping while gold rose 65%. The dollar collapse has begun. Thanks for watching. Give a thumbs up and subscribe to Fine Metals for the latest insights.
What I think is going to happen and is already happening is central banks will not only continue to accumulate gold but the banks that have been accumulating will accumulate more and those that haven't bought any will will start. So you're going to see, uh, you know, more wider participation by more central banks. You're going to see the institutional investors start to participate and I think that's starting, uh, in in in the space, particularly in the mining stocks and you're going to see retail and and so everybody is going to be buying and and so the difference is in 2024 and mainly 2025 it was mostly central banks, not a lot of private investors whether it was in institutional or retail. But now they're all, they're all going to be buying.
Most stock investors, you know, Wall Street, they still don't get what's happening. They, they still don't have confidence in the silver rally. They think it's maybe a bubble and it's going to burst. And so these silver prices are not sustainable over the long run. And so they're not willing to bid up the mining stocks because they don't believe that the earnings are actually going to be there because they don't expect the price to hold up. But when analysts realize that not only is the silver price not going to fall, but it's going to keep rising and they're going to have to completely redo their estimates for what these companies are going to earn. And once they've come to terms with how much more they're going to earn than what they thought they were going to earn, now they've got to repric them accordingly. And even though most silver stocks are up four, five times from where they were a year ago or less, you have to understand how cheap they were a year ago. So, so they, it's not like, you know, this is the end of the move, right? They still have a long way to go based on how much money they're going to make, right? It's not like this is just some kind of mania that the stocks are just going up. These are actually operating businesses that have earnings and their earnings are going to explode and that's what justifies the price. See, in a bubble, there is no justification for the price. In fact, a lot of the, you know, stocks in a classic bubble like we had the dot bubble, the companies didn't even have any earnings and people were just gambling. But here you have a situation where the companies have incredible earnings, the earnings are exploding and the stock prices have gone up a lot but not nearly as much as they should given the increase in earnings. So these are justified repricings of assets based on their, um, values objectively being much greater because of the income that they now generate from selling the gold and silver that they mine. So, you know, there's just a lot.
Today is a good day. I think I, I think a lot of institutional money looks like, based on some of these big moves we're having today, you know, uh, that now some of the money is really starting to flow into the mining stocks. 11 was kind of the end of a big move. This is the beginning of another big move because, you know, the, the, the bull market in in gold and silver and mining stocks started around 2001, 2002. And so 10 years later, uh, we had had gold moved from below 300 to 1,900. Silver had moved from four, four bucks up to, you know, over 45. So you had had a 10x move, uh, in silver. You certainly had a 10x move in a lot of the mining stocks. So a lot of money was made in that early leg of the bull market and much of it in anticipation of what ultimately happened in 2009, 10, 11 with all the quantitative easings and 0% interest rates. Gold was way ahead of that and and then we basically went sideways for more than a decade. Gold didn't really break out of that consolidation until 2024. Silver didn't break out until 2025. And the mining stocks are just breaking out really. Uh, even though they've tripled or quadrupled from their lows. Um, you know, they're just getting back to the 2011 highs. Some have exceeded those highs. Some haven't quite gotten back there yet. But I think what's happening now is we're just beginning a new leg of this bull market. So I think today is a lot more similar to 2001, 2002 time frame than 2011. So I think, you know, you're not getting in at the rock bottom if you get in now obviously at $4800 gold and $94 silver. Um, but I think you're getting in closer to the bottom than the top.
I was telling a lot of my clients at Schiff Gold to buy platinum when it was under $1,000 an ounce and gold was over $3,000. I thought it was ridiculous that you could buy 3 ounces of platinum for 1 ounce of gold, just like you could buy over a 100 ounces of silver for 1 ounce. So, I was telling people, you know, buy silver, buy platinum. Uh, not that I thought gold was going to go down. I thought it would keep going up. I just thought those metals would go up more and and and they did. But I still recommend that people buy, you know, mainly gold and silver. Um, they're the, you know, the most monetary metals. And I've generally been telling people since I started Schiff Gold, you know, 20 years ago or so, I've been telling people 2/3 gold, 1/3 silver. That was more like 50/50, uh, last year when silver was so cheap. Now I'm kind of more back to the, you know, 2/3 gold, 1/3 silver.
I think the US economy is in a lot of trouble. I think we are on the verge of a much worse, uh, economic crisis than 2008 because I don't think it's just, you know, a financial crisis, but a sovereign debt, uh, and a currency crisis. I think we're on the cusp of that right now. I think that's what gold and silver are signaling, uh, a breakdown in the monetary order, uh, and the US dollar is at the epicenter of that order. Uh, central banks are going to be replacing their dollars with gold, which, you know, cuts out the demand for US treasuries. I think global investors are going to be divesting of US stocks and bonds and moving their money back home to invest locally, and this is a game-changer for the US. We depend on those capital flows. We depend on the rest of the world to finance our twin deficits, the budget deficits, the trade deficits. We depend on the world to supply us with this goods that we don't produce. Uh, and so all this is coming to an end and, you know, people are oblivious, just the way they were oblivious to the 2008 financial crisis, even when it was just weeks away. You know, they still, they still couldn't see it coming. Uh, this is a bigger crisis, of course, than that one. Uh, but the same people who were blind, you know, in '08 are, are, are just as, you know, uh, blind now.
Now, look, the stock market was strong under Biden, right? And, you know, the economy was weak under Biden. That's why Trump was elected. In fact, the economy was strong during, I mean, the stock market was strong during, uh, you know, Trump's first term. In fact, it's been strong pretty much for every president. I mean, look where the Dow was, almost 50,000. It was at 10,000 in in 2000. But gold was at 260. Now it's almost 5,000. So if you measure the price of the stock market in terms of ounces of gold, it's not strong. It's extremely weak.
Um, I think there's a very high probability that the Bitcoin trade is over and, you know, the last one in is the loser. Uh, I think it's now, you got to get out. I mean, Bitcoin went nowhere last year. Uh, well, gold was up 65%. Silver was up, you know, more, a lot more, and something percent. And so far 2026 is starting out the same way. In fact, gold and silver are even stronger January 2026 than they were in 2025. And Bitcoin is flat. And I think, you know, Bitcoin's on the verge of a of a major drop. How long it takes before the bottom drops out, it's hard to say, but I don't see any upside potential at all. So, you're just going to tread water until you sink. And so, the best thing you could do, uh, with Bitcoin is get rid of it. Um, because the longer you hold it, the more profits you're going to miss out on because you could have done something else with the money. And then eventually the money is going to be gone because more people are going to figure out that they got to get rid of it. Uh, but last year should have proved to everybody who was foolish enough to believe, uh, the meme. Uh, but Bitcoin is not digital gold. It's, it's not only is it not digital gold in the physical sense because I can't use it for anything that I use gold for, but even in the financial sense, it doesn't even trade like gold. It has no correlation whatsoever with gold.
Every time the US has an economic problem, whether it was, you know, the bursting of the dotcom bubble or even before that, Long-Term Capital Management, or, you know, we had an Asian, uh, crisis or Latin American debt crisis, but then the 2008 financial crisis and then the COVID pandemic, our our solution has always been create inflation, print money, slash interest rates, you know, stimulate. But this coming crisis, not only won't that work, it will fuel the