specifically crypto markets, as well as AI, which we're going to talk about as well.
For those that want to hold physical gold and silver as part of your portfolio, one
of the things that we focus on at Guildhall is helping people to hold actual
physical gold and silver in registered accounts where you own it directly. This is
not a pool account. This is not a certificate. This is not an ETF. This is actual
real ownership of your product held in a vault facility outside the banking system.
So we have a motto, if you can't hold it, you don't own it. And this definitely
passes the sniff test in that regard. You can even go to the vault and personally
audit your holdings, which is still, to me, one of the coolest things. Proof in the
pudding. Exactly. It still is a great thing for me. And we've been doing this for
almost 10 years in registered accounts. So today is the 27th. Silver's trading at
5337, gold's trading at 4158. Pretty nice move up in silver today.
Is this the start of something,
a line of trajectory we should get used to? Absolutely. We had a good pullback the
last couple of weeks where silver tested in the upper 40s. Now we're clearing 50
and we're going to That's the 54 mark. So that was the all -time high that we
tested about a month and a half ago. We're not far away. Yeah, we're not far away
at all. But overall in the year, it's a good year. So far, silver's up about 80 %
year -to -date. And gold's up about 55, 60%. So a lot of the things that we've been
having conversations with clients at the office is, is it over, right?
New potential people getting involved in the market. A lot of our clients people are
wondering okay it's at all -time highs is it is it over and and of course when you
start to look at all the fundamentals and all of the things that are going on in
the world you realize no no we're nowhere close and there's a lot of different
things we can get into on that topic alone however let's uh start with the
cryptoverse because this week actually in the last couple days um one of the world's
largest stable coins made headlines for something that would probably
The treasury is, you know, it's all fiat. So having this large stable coin now,
acquiring gold, is a huge signal, and this is the demand. You know, demand coming
into gold and silver is a big sign that entities,
countries are looking to boost that side of the balance sheet. So here are the
numbers. We've got the tether market size is 150 billion. They're holding 135 billion
in U .S. treasuries. They're holding 14 billion in gold, or 116 tons,
and they're holding 8 .8 billion in Bitcoin. So for the,
in terms of the debate for, you know, you think about Bitcoin people.
They're often telling you to sell all your gold. Of course. And now here's Tether
holding more gold than Bitcoin. What is this say for the cryptobverse that you have
a company wanting to be stable that they need to be, but that their choice for
stability isn't necessarily Bitcoin. It's actual gold. That's right. You have to back
this asset, this currency with something. It needs to be backed by something what
they called a relic or a tradition with the very, you know, what money is.
Money is gold. Gold has survived for thousands of years as the most liquid asset
class and the most solid. It's beyond language, beyond borders. Every single country
is acquiring gold at an insatiable pace. And if you look at the demand coming from
Tether, now acquiring about 300 million this year, buying into precious metals,
gold and silver market is a scarce market, especially silver. But the gold market is
being introduced, reintroduced to the system, and that we're going to see a bridging.
You know, the old SWIFT system where money flows and people can get locked out and
accounts frozen and countries can get sanctioned because they're on the SWIFT system.
So this is an alternative. It's much faster. So we're leveling up and we're now
seeing emerging, emerging with money, with technology, and the treasury.
So we're seeing a bridging happening here. So we have to follow this amazing trend.
Do you think that them, Tether holding gold can help bring people into the crypto
sphere? Or equally, do you think it's, like, does it upset people,
upset the cryptosphere that they're holding gold? I think it makes sense in terms
of, what
And if we hold all of these three things, we'll have these three pillars to give
us stability in the market. So I found that very interesting that it's, well, you
can't get quite a peg unless the U .S. was pegged to something, which it's not.
Right. So their idea of making, you can't peg something that's completely free
floating as of right now. Right. But do you think that having gold brings people to
the Cryptoverse,
equally, do you think it makes people who are in the Cryptoverse think a little bit
about the advantages of having gold? Well,
I think, you know, the debate I think it's over regarding where it gets its value
from, where these cryptos get its value from. And with Tether, calling it a stable
coin without a true and proper measurement or a backing of something, that was the
risk. So I think it does introduce to the crypto space, the importance of holding
something that is actually tangible and scarce so that we can measure up and
actually find value for your cryptos, for your gold reserves, for your paper.
Because the problem initially was the paper markets and the currency printing that
has been going on for decades in the U .S., QE1, QE2, the Federal Reserve just
printed another round of an injection of 130 billion. So they're just printing the
currency. We have to measure it. Well, gold has measurements. We measure it to the
M2 money supply. So we have a measurement of where we should be going and how much
of that debt, how much of that tether needs to be backed up. So It's going to
bridge, I think it's going to help with the understanding of what money is.
So on the demand side, this has been a pretty good quarter for tether buying
physical gold. Are there signs that this is stopped or are they going to continue
to grow? And if the crypto market and industry is going to continue to grow,
then demand for tether is going to continue to grow. So they're going to have to
continue to grow their gold holdings as well, unless the price doubles or triples
and keeps up in that regard. Yeah, exactly. Now, here was an interesting quote from
Vince Lancy this week. If China owns, and we have to keep an eye on China, because
there's a race for gold and there's a race for, I guess, you know,
global dominance. You know, there's a race for stuff these days. There is a race
for economic So China has been hoarding gold. They stopped the exports of silver.
And he wrote, China owns its gold through its people. And the U .S.
is now investing in corpse. It's deemed are important to the U .S. existing,
including tether. So this is what is being used by the U .S. to bolster their
reserves, not just in tether, but gold. Because it's directly related. You're now
backing your tether with gold. You're pegging it to gold eventually. And then I
think the next step would be introducing it to the treasury market and then U .S.
adoption. Yeah, you know, I know China does encourage its citizens to own physical
gold. We're going to talk about this right now regarding the U .S. and how they
could be encouraging corporations to hold gold. I think for Canadians,
We don't have as much gold in our reserves as Tether does, but we can buy it
ourselves, right? And so the idea, of course, is that you, as the individual, can
own physical gold and not just paper gold, not just have exposure to physical gold,
but to actually own the physical gold. And that's what we help people do at
Guildhall. So you can go to Guildhallwalth .com and you can buy the product
personally. You can come to the office, schedule an appointment and purchase it
direct or you can use our e -store to do it. You can use our depository services
so that you have ease of liquidity, whether you're traveling anywhere around the
world or maybe you're a snowbird thinking this time of year, let's go away. But you
might want some liquidity. It's easy to sell on a phone call. And then, of course,
the registered accounts that I mentioned at the top of the show. Let's talk about
AI because we now have an executive order about the Genesis mission?
What is the Genesis mission so that we can see just exactly how much silver is
going to be used over the next several years and what that could potentially mean
for higher prices? Yeah. So just got passed this week. Breaking news,
President Trump just signed an executive order akin to the Manhattan Project. We
talked about it last time we were here on the show how the U .S. for the nuclear
bomb needed so much silver.
The news is talking about this buildout of AI, which is understandable. Everyone's
really using it. It's replacing a lot of jobs. It's a big worry for people. Or
creating jobs. Depends what your perspective. Whatever your stance is, exactly. But
the U .S., they just launched the Genesis project, and it was an executive order by
President Trump yesterday. And he said basically that America is in a race for
global technology dominance in the development of artificial intelligence,
AI, an important frontier of scientific discovery and growth. To that end, my
administration has taken a number of actions to win that race. So we have to
remember, we're talking about usages here. We're talking about building out something
that requires material to build in the first place. And we talked about it before,
we're talking about AI and chat GPT and the data centers that are required to
engine and power the processing of this intelligence. Every single data center that
is open, you need tens of thousands of kilos of silver. Can you believe that? It's
the demand coming out from AI. Now, we're not even talking about the other usages.
We're talking about like the factories. The factory, semiconductors, power distribution,
automotive, photography, all of these things. If you have a light switch in your
house, they're silver in that light switch. But we're talking about scaling out
something that is going to be a massive push to build out. You know,
a lot of, you know, economic analysts are wondering, how are they going to build
this out, you know, economically? How are you going to finance this? Well, my
question is where are you to get the silver from to scale out this AI project?
It's one of the reasons why they probably titled it a critical mineral, right? You
can start to see the signposts there where we're going to get to this stage and we
have to put things in place. We're going to need silver. It is critical to this.
Rare Earths. You can see the deals that have been made around the world to go
after rare earths. I think it's an important mission. I think it's a noble one. I
think it will bring a lot of jobs. I do hope that Canada gets in on the race and
in on the success of it. I think we have a lot to offer to the United States in
that mission. But of course, it is going to need a lot of precious metals. And
it's not just in the United States, but it is a race around the world for it. So
we know that the demand on silver right now. I was watching a video with Keith
Newmire from First Majestic, and he ran the numbers. He's really good at all of
those things. He said they're mining 800 million a year. They're using about 1 .1,
1 .2 billion a year. That deficit's been running for about five years. So there are
a billion, a billion ounces short already. And he was mentioning that, yeah,
you know, you can create a bigger mill, you can build a bigger mill, you can do
more refining, but that's going to take money, and you need higher prices to do
that. One thing I was struck this week regarding was in Canada,
I was kind of shocked to hear this. We don't really refine anything here. No. We
mine it and we ship it. Just like oil, lumber. Lumber.
And I thought, wow, how come we're not part of that process? You know, we follow
Vince Lancy, a great analyst in the market, always talking about mercantilism and how
these countries around the world are saying, look, we want part of the value chain.
We don't want to just dig it and ship it, which is a very kind of British Empire,
colonial thing. We want to build it, produce something, and then ship it. jobs and
be part of it, right? Great more jobs, et cetera. So I was kind of shocked that
we don't even, you know, we're the third largest gold, third or fifth largest gold,
seventh largest silver. Fourth and oil. We don't really refine it, except for the
Royal Canadian Mint, I guess, maybe some small mints, but we're small refiners. We're
not refining. That's a lot of jobs that are missing and a lot of demand that we
could be fulfilling by doing that. I digress. No, this is a, that's a huge point.
We're going to need a lot of silver, there's a deficit.
to the designation of silver being on the critical minerals list to the move of
this, this launch of the project, this mission, we're supported. So I think on the
downside, we're very supported, you cannot sell a critical mineral. It's a mandate.
It's a law now you have to acquire and stockpile as much silver as possible. So
we're supported in that regard. But when we look at other analysts, if you look at
the silver to the M2 supply, for example, we're talking about multiple times higher.
I think we were very supported. Next week, the U .S. will be cutting interest rates.
That's another tail win for silver. It should push the prices of gold and silver
higher because they're going to be destroying and devaluing the currency even more.
We also look at Michael Oliver's, the momentum structural analysts,
where he includes looking at the technicals regarding
and gold is entering entirely into a new valuation paradigm because remember the gold
is we're talking about revaluation here the u .s needs to take their asset which is
a tier one capital it's actually um high quality liquid asset to china so it's
actually better than cash gold is that collateral we're going to be watching this
this market there's a lot of news about the repo markets in the overnight That's
blowing up, Jeremy. This is the stuff that took down the Lehman Brothers. It took
down just before COVID when the lockdowns happened. There was a lot of price action
in the repo market. It's showing signs of illiquidity. Liquidity is based on the
collateral. What is the good collateral? What is the asset on that asset side of
your balance sheet versus the mountains of debt? The U .S. has just passed, what,
300 some odd trillion in debt or what's it? Yeah, sorry, 37 trillion,
I think. You know, when you think about, when you think about the debts that are
out there,
you know,
I think back to when I started in 2006 and you're telling people, look, it's
undervalued, silver's undervalued, gold's undervalued. I don't, I don't,
I'm starting to fully appreciate just how undervalued undervalued they really were
back there. And also how much more money people had, right,
in the markets. I think that silver today at $50 is even more undervalued when you
think about the amount of money that's been printed out of thin air or currency and
debt that's been created out of thin air. And so that's going to have to be dealt
with whether it's defaulting or the rise of gold. You know, it's sometimes,
you know, the way I kind of think about it sometimes is they're not, you don't
necessarily have to pay down the whole debt. No. You know, if you have a $800 ,000
mortgage on a million dollar property, it's, you got sleepless nights. But if the
property goes to $1 .5 million, it's the equity. Right. The debt is not as much of
a concern. In fact, you can now borrow against it, right? Exactly. And I think that
that's what they're looking at and central banks are looking at when it comes to
physical gold i think silver you know we're talking about more from an industrial
standpoint so i think when you start to think about how much debt there is what
it's going to take to level the playing field because you could have you're going
to need 25 years of 4 4 % GDP yeah to be able to get to where you're trying to
go here so you need the assets to grow quickly. And I think that's what central
banks are buying, buying gold for. And then the benefit you get from it because
it's a high -quality liquid asset is to be able to borrow against it as it's rising
and use it as collateral, right? Not the pension plan, but the gold.
Yeah. This is just it, you know, the Canadian government just went parabolic with
their, with their mission to seal from us. Even They're Carney announcing that
they're going to use pensions. So, you know, with money being just Canadian money,
just being just digital ones and zeros on your computer when you log in, the time
right now is to convert out of this currency of the looney that has lost over 95 %
of its purchasing power since 1915. The trajectory is very bad right now in Canada,
but there is hope. And I believe that with the resources that we have in Canada,
when we unlock, things will change rapidly. However, we have to go through some
steps. Gold and silver are being reintroduced into the monetary system. And I think
with the U .S., if they have to boost that side of the balance sheet,
back to maybe where it was prior to World War II or around World War II time,
the debt, The gold represented 20 % of the debt back then.
And right now, the gold that they have in holdings represents 2 % of the $38
trillion in debt. So how do we get back to the 20 %? We're talking about gold
revaluation. And scoff at the idea because, you know, to get back to 20%, gold will
be around $25 ,000 roughly. Right. You can't scoff at the idea because I challenge
you. I just want to encourage you guys to check out the Federal Reserve .gov
website. Their latest paper is about gold.
revalued the price. And it is very interesting. It's very exciting to know this
because our clients are going to benefit. Our clients right now are benefiting. Yeah,
I think, you know, when we're talking about forecasts, which is where we've taken
the whole show to get to this point, which is great. When you're thinking about
forecasts, you know, let's say Jim Rickards, he's a great author. He's done the math
on these things, as you've talked about just a moment ago in terms of percentages,
right?
And he'll throw out a forecast saying, look, like you're going to need $25 ,000 gold
plus to be in a place where you're leveling the balance sheet or balancing the
debts, et cetera. But it's a lot to digest. It's really difficult for someone to
conceive of those type of prices. Similarly, when I got into the business and gold
was 400 and I talked to people saying, yeah, you know, they think it's going to go
to 1 ,000. You'd get the hand. Oh, yeah, it's not going to happen, right?
On the opposite end of the spectrum, you have banks that are forecasting just,
just out in front, right? Gold's going to be, I mean, name the bank, gold's going
to be at 4 ,400 next year. It's 4 ,200, 41 something right now. conservative right
maybe it gets to five thousand right um that type of thing so very very
conservative you don't get too excited but when you think when you think about where
we are right now at fifty dollar silver people are digesting that price and they
have to kind of let that sink in and say yeah it can go to 50 what's because you
have to start asking yourself there's a couple of things that have to happen one
you have to get over the the the the double my money bias, right?
People have a double, I doubled my money. Take profit. I'll take the profit. I've
doubled my money. That's enough. I'll take it off the table.
Just for its own sake. Listen, I love art for art's sake, but it's also better to
have things for a reason. And so when you start to look at reasons, you say,
what's been resolved? True. Have these debts been resolved? Has inflation been
resolved? Has the dynamic of geopolitics been resolved?
money. But this time around is not going to work. This is why the gold and silver
are the focus for being collateral. Yeah, silver is industrial, but it's also being
used as collateral in places like India. They've reintroduced it to the monetary
system. And as we look at cycles, he brought up Jim Rickards. We are actually in
the third cycle of the super cycle. We're actually in third super cycle of precious
metals, which is very exciting. It's pointing to by next year. According to Jim
Rickards, silver should be anywhere around 490 U .S. per ounce. And what's very
interesting by next year. But what's very interesting. That's pretty out there?
Yeah. Well, we have some cryptos into the 80 ,000 mark, and they really don't do
much. What does Michael Oliver say? So, so Rickards is saying multiple hundreds.
Oliver's saying $200 within a few quarters. So if we continue with that momentum and
clearing hurdles of the support and resistance levels, it becomes very easy to do.
Couple that in with the silver stockout. We had Daniel Galley from TD Securities,
the head of commodities strategists there. He indicated that this is the one way to
buy into the silver space. You want to own that, but you don't want to own the
proxy. You don't want to own the certificate or some type of gold or silver scheme.
You want to buy the physical precious metals, whether to take home through Guildhall,
own it in your RSPs, go to the vault and visit if you don't believe that they're
there. Go check them out and audit it yourself. But you want to buy into this
because this is a once -in -a -lifetime opportunity and people are worried about, well,
if we're moving up, could it just pull back? Gold and silver, especially gold,
has to be revalued and held there. And it's not a very new topic for many people
to understand. A lot of Canadians today, if you
So you have to fork up some more cash. But in this case, with the U .S., you
can't just print more cash to add as an asset on the balance sheet. The cash was
the problem in the first place. So we're talking about gold. Gold is there. They
have the Gold Standard Restoration Act prepped and ready to go. The U .S. will be
introducing this, and they have to stabilize that treasury number. Or a version of
it. So, Jerry, as we wind down here, did we get to some of your papers. I don't
know. Let me look through it. Let me see here.
Well, I mean, we've covered a lot of ground this week and we'll continue to bring
more to the table. There's always lots of new things happening in the market and we
like catching all of these wins, a lot of these symptoms and symbols of,
or signals rather, of the gold revaluation and that the demand for silver and where
we see the prices headed that are supporting all of these arguments that you're
hearing. So if you like what
we're helping clients figure out what's going to work best for them for today and
into the future. So we love helping and having those type of conversations with our
clients. And of course, it doesn't end there. There's always conversations along the
way. Clients will bat ideas. They might see an article and want to discuss it.
So our doors are always open. Our phones are always on ready to take your calls.
And that's it for another episode of The Real Money Show. We want to thank you for
joining, and we can't wait to speak to you next week here on the Real Money Show.