GOLD & SILVER Capital Rotation Event IS HERE (Uncut) 03-27-2025

GOLD & SILVER Capital Rotation Event IS HERE – Mike Maloney & Alan Hibbard

Hi everyone, Alan Hibbert is back with me and he’s got some great information for you. Alan, how are you doing? I am great, Mike. This is finally the moment we’ve been waiting for.

For years, we have been saying that people are going to rotate out of stocks into gold and it is finally happening. So I want to present a series of charts that show exactly that. It’s so exciting.

Yeah, I mean, I’ve been waiting a long time. I’ve been a precious metals investor since October of 2002. Yeah, okay.

So you know better than anyone. Yes, and I learned it from you when I was a viewer of this channel. So it’s extra exciting that I get to deliver the news that I’ve been waiting for.

So yeah, here it is. Let’s dive in. Breaking news, all 11 S&P sectors are now in a bear market versus gold.

If that’s confirmed on the monthly or quarterly close at the end of March, we have capital rotation event confirmation. Okay, so capital rotation is rotating out of riskier, but potentially high yield or high income assets where they’re doing a lot of gains into safe haven. Exactly.

And so, you know, we’re not rooting for the economy to fall apart or anything like that. It’s just what we’re seeing is that all of these sectors of the S&P have been overbought. A lot of people have funneled so much capital into those sectors for a long time, even if it didn’t make sense to do that as a good investment, so to speak.

And they’ve been ignoring gold for years, right? But that’s all changing, right? So everyone’s funneling capital into gold now. They’re realizing that gold is undervalued and it’s got a long way to climb. So the second comment, I’m looking at that.

That’s good. Read that. Yeah, I actually have it here on the next tab.

So this gentleman has been following this for a long time. This tweet here is his from October. And this is him following the capital rotation event, showing that we were getting close, but we weren’t there yet back in October, before the election even.

Ignore this at your own peril. It’s going to hit us between the eyes. And this is not the 11 sectors of the S&P.

The S&P is just one of the boxes here. The other boxes are the Russell, the Wilshire, the M2 money supply, the CPI and so forth, all compared against gold. And back in October, 10 of these indicators were bearish against gold.

So gold was outperforming 10 out of the 12. Now we’re in a situation where gold is outperforming everything. So it looks like the capital rotation event is finally here.

You can see how rare it is. This has happened back in 1930, 1972, 2002, and it’s happening now in 2025. So this is rare.

You might get one or two of these in your investing career. So you really got to take action when they arise. That’s really what my first book was about.

I said there are these rare moments in life where the safe haven asset, the place everybody runs to to protect themselves, simultaneously becomes the asset class that has the single biggest potential gains in absolute purchasing power. And we are in one of those right now. Yes.

Well, thank you very much for your years of education, Mike, because you are the one who convinced me of this. And it is an absolute pleasure to be working with you and spreading this knowledge to even more people, because it is so important. I do want to read a couple sentences here about what happens in a capital rotation event.

So when the capital rotates into something like gold, this leads each time to gold rising hundreds of percent. Stock markets fall 50 to 80 percent over a one to two year period. Stock markets then take many more years to recover.

While stock markets slowly claw their way back to previous highs, gold, silver, commodities, energy, oil massively outperform, rising hundreds and in some cases thousands of percent. So that’s what we’re in for. You know, you and I worked on something called wealth cycles, and I had been doing wealth.

I identified this years ago, back in 2005, 2004, and I started studying this. And what’s more important than the percentage gain or loss is the percentage gain or loss divided by the other things, percentage gain or loss. If you’re comparing two things, because he’s talking about hundreds or thousands of percent that actually measured against how much more S&P you can purchase with your gold or your silver, how much more real estate can you purchase by the time this cycle comes to an end? It’s massive.

One of them multiplies the results of the other. I remember back when we were studying the 1970s bull market, stocks basically went sideways. There was no gain.

Real estate doubled. The price of a median home in the U.S. doubled, which sounds good if you own a home. Price went up double.

But gold went up 25x. So if you held gold instead of buying a house, you could buy 12 houses at the end of the decade instead of just keeping the one house you had. So you did 12 times better by being in precious metals and even better if it was silver.

So very exciting times. You can replicate that right now is kind of my point. Yeah, and we’re talking in both instances here about absolute physical things, not measured in currency.

When you measure it in currency, you’re measuring something that you can’t tell which way things are going. When you measure it in number of houses, you know the gain in your true wealth. If you’re just sitting on something and the dollar value goes up, it doesn’t mean anything.

Exactly. So let’s keep taking a look at some of these other ratios here. We have the gold S&P ratio.

Ordinarily, this is flipped upside down. Normally, we talk about stocks divided by the price of gold. So this might be upside down compared to what people are used to.

But you can see here that the gold S&P 500 ratio breaks out. You have resistance line here and then it’s rising. That means gold pretty much since a few months ago or six months or so, gold has been outperforming the S&P steadily and pretty significantly.

And we do have a breakout above this resistance line. So it’s looking like a new trend is emerging. So anything you want to say about this one, Mike, before we move on? Well, it’s flipped a direction where most people think up is great and down is bad.

Normally, we’re used to looking at it the opposite way. Whenever you use the S&P, you come out with these weird fractions of a number because this is how many shares of the S&P 500, one ounce of gold can buy. And so you end up with 0.52. And people don’t think that way as well.

So I’ve always used the Dow Gold Ratio. You and I did a study on this. Over the long run, the S&P and the Dow are interchangeable as far as their correlation for the last century.

Well, almost the last century has been extremely high, greater than 0.98. I can’t remember exactly what it was. It’s in our latest book, Great Gold and Silver Rush of the 21st Century. And so I like to use the Dow Gold Ratio since people think that way.

However, like I said, it’s inverted compared to this chart. For gold investors, down is good, up is bad. So anyway, yeah, let’s move on.

Yeah, we’re about to see that in just a second. I am going to show this same chart flipped upside down so people can see what it looks like. And I’m going to show the Dow Gold chart going back to 1900.

So everyone will be able to see what it looks like on a long-term basis. Excellent. Because this is only looking at four or five years.

But first, just a headline here. Gold is crushing the S&P 500. And that’s unusual, right? What that says about recession fears and the stock market.

So yeah, basically people are concerned about a recession. Obviously, gold, like we just saw, is gold is not only outperforming the S&P as an entire index, it’s outperforming each of the 11 sectors individually, which is very impressive. So any thoughts here, Mike, on this headline before we take a look at the whole chart? I just think that we are headed into a recession.

And I think that this one is going to really trigger a crisis. Because when you look at how out of balance everything is in all countries across the globe, there’s no place that is safe right now all over the planet. And so every economy is so interconnected by all of the derivatives and the finance and everything that when something happens in any major country, whether it’s China, whether it’s here, whether it’s in Europe, I think it’s just going to cascade.

Yeah, I agree with you. We had a great chart in your second book. Showing just how interconnected all the different economies of the world are and how when one enters recession, the others tend to enter a recession as well.

Whereas historically, that wasn’t the case. So it does seem like a recession, if it happens in the US, it’s going to be global and vice versa. Yeah, they were synchronous, then they were super synchronous, and now they’re hyper synchronous.

They just practically happen at the same time. At least that’s what happened in the 2008 crisis. The derivatives caused it to be almost the same day that the entire planet got dragged down.

Yeah, wild. All right, well, let’s take a look at that S&P Gold chart. So this is the inverse of what we just saw.

And instead of only looking at four or five years, we’re going back looking at about 50 years. So you can see the trend a little bit better. It’s still not as good as the Dow Gold chart, which is what we’re going to look at next.

But you can see how there are some pretty wide swings up and down. And what it looks like here is that we’re breaking out to the downside. And so as this goes down, like you mentioned a moment ago, Mike, when this goes down, that’s good for gold compared to stocks.

So it looks like gold is going to outperform all the way down until something below this teal line here, something below one. So for folks at home, you could imagine that the S&P and the price of gold are the same. So right now the S&P is closer to 6,000, gold being about 3,000, roughly two to one.

Imagine they’re both the same. So 6,000, 6,000, you know, that type of thing has happened before. All these years back here, the price of gold was higher than the S&P.

So we’re probably going to see that again. Yeah, I believe so. And looking at the Dow, Dow Gold Ratio long-term, this goes back to 1900, a little bit prior.

You can see the ups and downs. You can see this cycle here where basically the stock market and gold take turns. And usually stocks do better.

Like, you know, on the average day, stocks are up maybe more than gold. But there are these brief periods, these downward trends where gold outperforms massively. And it certainly looks like we are entering that period right now.

Yeah, I consider the current bull market as really, you know, if you look at the 70s bull market, gold went up and then it took a breath and did a retracement and then continued up. But I consider the 70s one bull market, not a bull market with a bear market in the middle and another bull market. And we have the same thing today, just stretched out in time and magnitude.

Now, this is probably like annual data because I see that where gold peaks in 1980 in the stock market compared to gold bottoms, that’s at 1.5 and it was actually one. They were both 873 on the same day. If you draw a trend line from the 1932 bottom, this spike back there through the 1980 bottom, considering the daily closes, not an annual close, then you go from two ounces of gold down to the trend line today would be down at about one half of an ounce of gold, meaning that gold’s price would be double, whatever the stock market is.

Yeah, exactly. And right now the Dow Gold Ratio is around 15, might be about 14. And going down to a half is like an outperformance of 28 or 30 X, not percent, X. So that’s wild if it happens, but, you know, history repeats or rhymes.

Finally, I want to end here with this. We have come to experiment on you, plunder your resources and enslave you forever. Oh, you’re from the government.

Awesome. I want to thank everybody for watching. We’ll see you next time.