🚨 SILVER ALERT! - You Can EXPECT This! 🦍🦍 (Gold Price and Precious Metals NEWS Upate)

Rons Basement

21,212 views • 4 days ago

Video Summary

The video discusses the recent historic volatility in gold and silver prices, attributing it to three main factors: Donald Trump's nomination of Kevin Warsh to the Federal Reserve, signaling a more conservative monetary policy; the inherent volatility of precious metals after rapid price spikes, exemplified by silver's significant recent ascent and subsequent drop; and the persistent fundamental drivers like a global silver deficit and increasing demand, especially for technologies like solid-state batteries. Despite the sharp downturn, the presenter remains optimistic, highlighting that silver prices are still significantly higher than a year prior and that the underlying supply-demand dynamics for precious metals remain unchanged. The video also touches upon market manipulation through paper trading and contrasts physical market prices in Asia with Western paper markets.

An exceptionally striking fact is that during a specific hour on the day prior to the recording, gold lost $3 trillion in market cap, approximately $60 billion per minute, before recovering $2.3 trillion in the afternoon, a swing more than three times the total market cap of Bitcoin.

Short Highlights

Donald Trump's nomination of Kevin Warsh to the Federal Reserve, seen as a more conservative choice for monetary policy, contributed to market volatility.
Silver experienced a significant price spike, likened to mania, followed by a sharp decline, which is a natural part of such rapid ascents, with the expectation of consolidation.
Despite current price drops, silver is nearly three times higher than it was a year ago ($32 vs. ~$90 per ounce), and fundamental factors like a large silver deficit and increasing demand remain strong.
Data from TF Metals Report suggests that a significant portion of silver selling this week occurred during US market hours, hinting at potential manipulation.
The US national debt stands at $38.673 trillion, with nearly $1 trillion in interest payments and a $1.7 trillion deficit, contributing to a debt spiral and potential future money printing.

Key Details

Three Reasons for Historic Volatility [0:01]

The current historic volatility in gold and silver prices is attributed to three primary reasons.
The first reason is Donald Trump's nomination of Kevin Warsh for the Federal Reserve, perceived as a more conservative choice for monetary policy, which surprised the market expecting a dovish nominee.
Warsh's past involvement in developing bailout programs like TARP after the great financial crisis suggests he may be appointed to handle potential future crises.

"Why do you think President Trump is putting somebody in the Fed who's recognized and has extensive experience in dealing with crisis situations, right?"

Silver's Price Action and Volatility [0:33]

The general markets are experiencing a significant downturn, with the Dow down 500 points, the S&P down 50, and the NASDAQ also down.
Silver, specifically, is down $22, a 19% drop, described as painful.
This volatility is presented as a natural consequence of a rapid price ascent, comparing recent spikes to historical ones in 1980 and 2011, which are often followed by sharp declines.
The video emphasizes that consolidation in the $90, $80, or even $70 range for silver would build a base of strong-handed holders.
A year ago, silver was trading at $32 per ounce, and the current price of around $90 represents a nearly threefold increase, putting the recent drop into perspective.

"When there's a spike up like that, there's always a spike down."

Unchanged Fundamentals and Market Dynamics [08:29]

Despite the price volatility, the fundamental outlook for silver and gold remains unchanged; the world has not suddenly become more trusting or discovered vast new supplies.
A significant silver deficit persists, with consumption exceeding production, and mining output is not expected to increase substantially until at least 2030.
The US national debt is over $38.6 trillion, with significant interest payments and an ongoing deficit, fueling concerns about a potential debt spiral.
The video suggests that market manipulation might be occurring, noting that most selling in silver this week happened during US market hours.
In contrast, physical silver markets in Asia, such as the Shanghai Gold Exchange, show significantly higher prices ($123) compared to Western paper markets.

"Nothing has changed. The world did not stop consuming more silver today than it's producing. We got this huge silver deficit."

Historic Market Swings and Future Prospects [12:52]

Gold experienced its largest daily swing in market cap in history, losing $3 trillion (approximately $60 billion per minute) in under an hour on one day, then recovering $2.3 trillion.
This level of volatility is unprecedented and more than three times the total market cap of Bitcoin.
The video posits that a recession would likely prompt further money printing by the Federal Reserve, regardless of who is in charge.
The strategy of "kicking the can down the road" by central banks and governments, seen in responses to past crises like the tech bubble and COVID-19, is becoming increasingly ineffective due to the sheer size of the debt.
The presenter remains optimistic about the long-term prospects for gold and silver, emphasizing that fundamental factors like supply deficits, declining mining output, and increasing demand for technologies like solid-state batteries remain strong.

"Extreme moves are accompanied by extreme volatility. And this is historic."

The Basement Community and Long-Term Outlook [25:04]

The audience is described as highly sophisticated and capable of looking beyond immediate market movements.
The current volatility in precious metals is acknowledged as challenging but framed as a normal part of the investment cycle.
The presenter's personal belief in the long-term potential of gold and silver remains unshaken, with an emphasis on looking ten years ahead.
The core message is that despite short-term fluctuations, the underlying fundamentals for precious metals are robust, suggesting they are a strong place to be invested in the long term.