Transcription
[snorts] >> You'd better buckle up, gold and silver investors. We have huge news stories, gold and silver oriented from all around the world. This will be one of our biggest shows ever. But on top of that, we have a massive breaking story happening right now that we're going to cover. And then we're going to talk about why over the next month we're either going to see $55 silver or $85 silver. I think we're all uh rooting for the latter, but let's talk about the massive breaking story. Worldwide depression. How does that make you feel?
Remember just last week, I think Thursday or Friday, President Donald Trump explicitly said that he wanted to get the Straits of Hormuz open because if we didn't, we would be risking a worldwide depression. Well, just this morning we woke up to this. Surprise, surprise, surprise, Sergeant Carter. Uh from Reuters. Iran has now again closed the Straits of Hormuz over ceasefire violations. Uh Iran's top military command, Khatam Anam Anbiya Central Headquarters, said on Saturday that the Strait of Hormuz would be closed to vessel traffic, citing alleged violations of a ceasefire agreement between the United States and Israel. That's from Mehr State News Agency.
So, guys, uh we are living in what feels like an artificial world right now where one day we're being told the Straits of Hormuz uh is a threat to a worldwide depression and that we've got to have it open. Uh and the United States declares that it's open. Uh and then the next day it's closed. We're living. Look, we are couple big warnings today. We are living in an environment where everything is synthetic. The stock market feels synthetic. The money we use feels synthetic. It feels like, and I watched a great great documentary about this like recently that like the White House tweeting like they're they're focused on just keeping the stock market up. Now, we warning, we are very likely in a big bubble in the stock market with these AI stocks, these semiconductor stocks. And you know, like the a tweet and they always come out at strategic times. Like that's why there was the big rush to open the Strait of Hormuz, right? It's all done with like timing with the market. So, who knows what we're going to hear tomorrow night, Sunday night between or before the futures open. We are in pre- All the smartest people, then we're going to get straight into gold and silver. But I mean, the not tinfoil hat conspiracy theorists, the smartest people are very concerned about the state of the US stock market right now. And what's going on, it just I don't know, is it you I'm sure you feel it as well. It's like we're living in a completely synthetic world. So, now the Strait of the Strait the news is the Strait of Hormuz is yet closed again. All right, now big warning, right? Doom. Are you We're getting a lot of doom in the gold and silver sector, in particular with silver. We're going to talk about some of these stories that are out there, but also talk about stories coming in from around the world, right? We're going to look at both sides of the coin in terms of what's happening right now with the precious metals. And then we'll wrap it all up at the end and I think feel better >> [laughter] >> than we already feel right now.
Let's go out to this story from Metals and Miners, okay? The final washout for precious metals, 1.7 trillion gone. Sentiment at zero in China in the East, well, they're buying every ounce the West is selling. And there's a graph of gold and silver. Look, guys, I don't know about you, but I've been in this sector for decades and I'm just not feeling that like we're in a state of doom and gloom. Everybody's different, but the but the overwhelming kind of articles that I'm seeing and and comments that I'm reading from people are that they're very discouraged about gold and silver right now. I'll ramble more about that later. This says, "The precious metals market is currently experiencing a violent and historic washout." It just doesn't feel that way to me. Over the last 24 hours, almost 2 trillion, I guess that's a lot, has been wiped out from the combined market cap of gold and silver. Gold has plunged almost 5% erasing 1.4 trillion while silver plummeted 9% destroying 327 in market cap.
But, this is where it gets interesting. >> [laughter] >> Let's look at the other side of the coin because while Western speculators are dumping paper contracts in a panic, the smartest money in the world is aggressively buying the physical metal. Asian demand is soaring to unprecedented levels. The central banks are not only continuing their accumulation, but are actively pledging to buy more than ever before, okay? 1.74 billion washout, right? A massive capitulation event. That's the key right there, right? Is this capitulation? The sentiment collapse with sentiment indicate indicators hitting zero. Remember, they can't go lower than zero. The market has reached maximum pessimism, which historically marks the exact moment of major end of major corrections. The Asian accumulation while the West sells paper, the East is buying physical with Asian ETF holdings and physical demand surging to record highs. Gold and silver are not just Western markets. They are worldwide markets, okay? We know the central bank is bidding the next leg higher once the final seller is exhausted. The absence of supply combined with relentless Eastern demand will form the foundation for the next massive up leg. Okay, it's not all doom and gloom guys. Again, that came from metals and minors. Right? And everybody's warning everybody whatever. Okay, now but let's go look more more bad news but that I think is actually good news.
This is shocking about Western physical silver demand. It says compared to the peak in 2021. This comes from SRSrocco where Americans bought 138 million ounces of silver bars and coins. Again, that was the peak just 5 years ago. The collapse to new low of 35 million ounces in 2025. US silver investors have been net sellers so far in 2026. Okay, so but what I want to point out to you is this very simply that despite the fact that that's going on the silver price is at $65 per ounce guys. The gold price same thing what 41 4200 per ounce. Let's go look. Let's see where the gold and silver price closed on Friday out here at Kitco. Yes, our friends from Kitco show us silver was down 86 cents but $65 per ounce gold still at $4,150 per ounce. So remember something very critical. Silver and gold are worldwide markets. Now yes, in the West everybody selling their silver in particular. Okay, right but the silver price is still nearly double of where it was a year ago and when the Western investors come back, right? Those people that we like to affectionately refer to as the >> [laughter] >> sheeple, right? It could It's going to be the The point is, I don't know how to say it any other way. It's like from this cruddy position in terms of Western physical silver demand, the only thing it could do is get better. And when it does, Katie, bar the door because the Eastern investors, they're not going to they're not going to give up. And silver has entered a new pricing structure. That's the term we're going to use down here in the basement. And I'm going to show you something quickly here uh that was shared with all the quackheads before we do that. Thank you to First Majestic for sponsoring Ron's basement, the premier silver mint in the United States. That's all they do is mint silver products. They get their silver from First Majestic Silver, who owns First Majestic, from the mine to the mint directly to you. Let's go take a look at their website. And here we go. Here we are at firstmajestic.com. Free shipping on orders over $199. They have incredible products, all world-class silver bullion products that are unique to First Majestic. And again, it's a company you can trust. I mean, they're owned by one of the world's biggest silver miners, First Majestic Silver. And we want to say thank you to channel sponsor First Mining Gold. They have two multi-million ounce development stage gold projects in Canada. Springpole in Ontario and Duparquet located in Quebec. Lots of great news coming out from First Mining Gold as of late. You can check them out at firstmajestic.com.
Let's talk about this new pricing structure for silver. Uh Sir Silver Quack, follow him on X. All right, he calls his followers the quackheads. That's funny. Silver went from 100 to the mid-60s and somehow managed to crash all the way back to the exact area that launched the move in the first place. That's like falling off your roof and waking up on the couch. Bears have spent months celebrating the {quote} {unquote} collapse that so far has only succeeded in converting 2026 resistance into support and you can see right there on the on the chart right there. In those green those green clouds, those are called Ichimoku clouds. to dig into more about that tomorrow. Those support the price. Over there on the left, the bottom left, you can see the red clouds. Those are bad and you can see the price went down. The green clouds are good, but the big key takeaway here guys is we have entered I you know, I know, right? Sentiment's in the toilet, on the basement floor, however you want to say it, but the reality is we've entered a new pricing structure for silver. If silver goes below $50 an ounce and I got to shut the lights out down here, right? It's a different story. I think that's absolutely not going to happen, right? We're building this base in the 60-70 range and it's going to be a great great time ahead, right? When the consolidated when the last seller leaves, right? Like the article from Metals and Miners said, right? And the base is completely built, we're in for some good times going ahead.
Oh, let's listen to John Feneck, right? This guy he worked at Sprott Asset Management. He's a world-renowned commodities analyst. He was on with Charlotte McLeod on the Investing News Network and I got the part right here where he talks about silver. Let's see what John Feneck from Feneck Consulting has to say. >> resistance levels. >> And let's bring silver into the picture as well, of course. Can we take a look at support and resistance there because of course we all know that the price can be more volatile than gold. >> Sure. Silver remains our largest position. Um, I did sell some as I told you over 100 oz because I told you on and 10 other podcasts I was going to be doing that, so I did it. Um, but silver is is very much needed. It's in a deficit. It's it's getting to be more needed, I think. Uh, it's now on the critical minerals list, which is which is big. Um, and silver's got a base of 60 bucks. $60 to $61 silver is holding. It held twice. So, go back and look after the June 5th huge sell-off we had. It it actually clipped 61, I think, again and then just bounced. It's like That's why technical analysis really matters, Charlotte. You have to be looking at these charts to understand, right? Cuz many people think, oh, 50's going to break to the downside. Well, guess what? We're making a higher low right now. It's not quietly. To me, it's obvious, you know, that that that the silver price is going to stay higher than people expect, you know, meaning generalist investors. For people that actually know what's happening in silver, we all want 90 plus, right? I mean, that's that's what we want to see again. But, we have been in a trading range, to be fair, of 70 to 90 for a while. We broke lower. Now we've got to regain that that range. >> Phoenix said, okay? People who really know are looking for $90 silver, okay? The new base is around $60 per ounce. We've make We've had a successive um number of higher lows that are happening right now and silver is still his largest position. We're hearing that from many of the sharpest commodity uh as asset managers out there, no doubt about it.
This shows us the Shanghai silver premium, right? China will buy the silver. Uh, just yesterday at 11:00 a.m., okay? There was a 17% premium in China for silver. Silver price was closed at $75 on the Shanghai Futures Exchange, almost $11 or 17% higher than what we had in the United States. You can see that there circled in the green box. And don't worry because China will buy it because we've got this from King World News. China offers gold accumulation accounts to 21 trillion dollars worth of Chinese deposits. Nowhere is this better understood than in China, which also sees the United States in geopolitical retreat making holding dollars doubly less uh less desirable. Her export surpluses, that's China, are higher than ever leading her to continual continual sellers of dollars. And in selling dollars, China's preferred alternative is gold and commodities, especially silver. The message from China's authorities is understood by their banks, which offer gold accumulation accounts to their 21 trillion equivalent uh depositors. But then it gets more interesting. The Chinese flight out of dollars is also driving their currency, the renminbi, higher. This is where it gets interesting. For China's banks, this makes gold even cheaper in Chinese yuan. Okay? As they're selling dollars, it makes the yuan more valuable, which then in turn makes gold less expensive to them. In marking uh in when when marking down of dollar prices represents an opportunity to build physical gold reserves back to their gold accumulation accounts. That's for people that have these gold accumulation accounts. It makes gold cheaper in their in their uh renminbi >> [laughter] >> uh denominated accounts. Okay. All right. All right.
But it's not just there because, you know, look, it's everywhere in the world. Let's take a step back for a second and remember one very critical thing. The silver market and gold market have been around forever and everywhere in the world, right? Does the United States have a lot of influence? Yeah, no doubt about it. But we don't control the show. The show is moving basically to the east. Europe, uh Asia, everywhere over there. And it even comes from France. We know China will take it. Here's a quick one from France from our friend Neils at Kitco. Gold prices are down, but SocGen, which is the big French bank, is buying the debt. Wait till you hear what SocGen said in these these couple paragraphs. They said, "We return to a full waiting in gold." And what's good for gold is good for silver. Taking advantage of the recent down downturn. Uh looking ahead, gold volatility may decline if retail participation through ETFs eases off, while central banks are likely to remain active buyers, particularly as part of their ongoing de-dollarization drive. And as institutions diversify further away from equities and bonds. For the third quarter, the French bank has a 10% allocation to gold, up from 7% in the second quarter. Uh the bank said it's it's total 20% commodity exposure is the largest on record. And of course, gold and silver are are included in that commodity umbrella. Looking at the gold market and silver market, despite the current selling pressure, SocGen sees gold prices recovering in the fourth quarter of this year and climbing back to $5,000 an ounce by the second quarter of 2027 with the potential to reach new record highs in the third quarter of yes of next year.
So, we've got the Chinese, we've got the French. What about the Russians? And the Indians. This comes from the Silver Academy, Silver's July 13th reckoning. Let's go down Oh, this is interesting, but we're going to talk about Russia and and India uh it comes to silver. These are the world silver reserves, right? Look Look where Russia, Peru, Australia. The United States, right? We're pretty little. 23,000 out of 610,000. But, if we go all the way down here, the philosophy of Russia on silver, they treat it as a monetary metal, primarily to enhance their state reserves and ensure financial stability, right? To me, that sounds like what silver's always been, a monetary metal rather than than for direct trade settlement. By adding silver to its portfolio alongside gold, platinum, and palladium, the government aims to increase its holdings of highly liquid, value-preserving assets. This move is a strategic component of Russians Russia's broader effort to diversify its treasury and reduce reliance on the US dollar. China, France, Russia, but what about India? India is super exciting, guys. Uh India is fundamentally recalibrating its silver strategy to treat the metal as a formal integrated financial asset. Starting this year in April, the Reserve Bank of India officially permitted loans against silver jewelry and coins. You could use your silver jewelry and coins as collateral for loans at Indian banks. That's the monetization of silver, mirroring long-standing gold lending frameworks to boost financial inclusion and credit access. Simultaneously, regulators have shifted their silver ETF valuation from the International LBMA benchmarks, right? The London Bullion Market Association, right? To domestic spot prices from Indian exchanges. We have silver and gold exchanges popping up everywhere, ensuring domestic demand supply dynamics drive price discovery. While silver is now accessible for retail investors through ETFs and retirement aligned funds, it remains a strategic hedge, blending its traditional role as a store of value with its modern industrial importance.
Okay. China. >> [laughter] >> Silver and gold. France, gold. Societe Generale, France's, if not their biggest, one of their biggest banks. Uh what was that? China, France, India, Russia. Is there more? Yeah, there's more, right? Because we had news out of Singapore that we've already covered this week. Singapore's opening a massive metals exchange, a massive vault, right? The world Hong Kong. I mean, I forgot about Hong Kong, them too. But now even Dubai. And there's something very peculiar about what Dubai is doing. This this story getting a lot of headlines and this comes from This comes from the like uh Middle East, what's it called? Economy Middle East. Dubai now is launching the region's first same-day gold futures contract to boost bullion trading. Something super interesting buried in this. New product aims to enhance market liquidity and faster settlement for gold traders uh in the region's first, okay, first time ever, uh Dubai Commodity Exchange will launch a same-day settlement gold futures contract on Monday. They're not wasting any time introducing a new product aimed at supporting safe haven demand and improving trading efficiency. Dubai is continuing to strengthen its position as one of the world's leading precious metals trading hubs uh by expanding its financial market infrastructure. As demand grows for faster and more efficient trading, the emirate is introducing new products designed to improve liquidity, enhance price discovery, and better serve institutional participants in the global bullion market. That This is the This is the the key here. Uh the contract has been developed by bullion dealers, refiners, brokers, uh clearing members, and institutional investors providing greater certainty alongside physical delivery. That's point number one through approved vaults, but here's the kicker buried at the bottom. He also revealed that the exchange is evaluating additional products as part of its future expansion strategy, including a Chinese yuan to US dollar currency pair. Right? They're setting up, right? Oil for gold for Chinese yuan. Guys, it's the world is changing, and the dollar as the petrodollar is, let's say, in a little bit of trouble. >> [laughter] >> But, in the Middle East, right? And in China, there's big changes going on with how gold and silver are treated as really truly collateral. And even this idea of buying oil for Chinese yuan, buying oil for gold. It's happening, and it's happening right now. Singapore, China, France, uh who else? Uh uh everywhere. India, Russia. The world is the We We are in a complete new paradigm. We are in a new world when it comes to pricing structure as well for these precious metals.
But, wait, there's more. >> [laughter] >> Two big things we need to cover. Before I do that, thank you to Sugar Mountain Trading for sponsoring Ron's Basement. They are a premium personal care brand. I use their products. I love them. You can check them out at sugarmountaintading.com. It's all handmade, high-end, luxury level, curated, 100% natural things like that soap, shampoo. Uh they even have lotions and pain relief lotions. You can check them out. They've got a discount code you can use as well, Ron 25.
Now, let's go back to the United States because this is something we've not been uh focused on too much as of late. And hold on here. Here we go. This comes from the Kobasic Letter. Guys, this could be a similar situation to what we ran into with the 2000 to 2007-2008 great financial crisis. The private credit crisis is getting worse. Remember, this was the big story 7-8 weeks ago before we got the distracted by the uh war in Iran. Investors' withdrawal requests from large private credit funds have surged by over 4 billion quarter over quarter or 56% to 12 billion so far in Q2 of 2026. And then it goes through and lists, this is a big problem uh which is in what is is commonly referred to as the shadow banking system. Um so it's something we want to keep a very, very close eye on. Uh I don't know. You know, look, everybody is is is talking about the precarious situation that the economy is in and even the stock market, right? Again, I don't want to be the town crier and oh, you know, a warning, warning, warning. But you've got like Michael Burry, Ray Dalio, Jeffrey Gundlach, uh the list goes on and on. Like people who are highly respected that are saying, we're in a bubble uh and we're in big trouble as well with what's going on with the national debt. I just want us all to be prepared. Could there be more volatility within the precious metals sector? Absolutely, okay? But I personally don't I don't I feel I you know I read these articles like oh you know crisis gold went down silver went down look to me I feel like I don't like when the markets are red like we had on Friday last [clears throat] week was quite a roller coaster for anybody in the precious metal sector and we know what's happened since January but to me I don't know it still feels really really good where we are right now and I think when we look at all the factors that are in play right now the geopolitical factors right the world has never in my lifetime been in such a geopolitical mess like we are right now the financial factors the debt of the United States the debt of the world right the world has never been in such a condition during my lifetime and then when you look at the fundamentals especially with silver the supply demand fundamentals but with gold as well and with what central banks are doing I don't know guys I feel warm and fuzzy about gold silver and the precious metal stocks I also feel warm and fuzzy about you thank you for joining us down here in the basement today take care of yourself and on behalf of upstairs Susie and myself have a great day and we'll see you yeah we see you and we'll see you soon.