Gold & Silver Will Go Up Much Faster When This Happens (Uncut) 03-02-2025
Gold & Silver Will Go Up Much Faster When This Happens! A Conversation With Peter Schiff
The bull market is going to last as long as we have fiat currency, pretty much. I mean, look, when the Federal Reserve was established in 1913, gold was $20 an ounce. Now it’s almost $3,000.
Hello, everyone. Welcome to Bald Guy Money. At the beginning of January, I presented this timeline to you all, letting you know that I saw the period following the inauguration of President Trump as a danger zone for investors with a potential pullback in play, followed by money printing and a major move up for gold and silver.
Now, in last week’s video, some of you may remember how I said the February monthly closing could be pivotal in how the markets develop from here. And I think we saw what could be the first signs of a real market selloff in the days following that video, with major names like Nvidia down nearly 9% on the week and Google down more than 6% on the week, while gold and silver grew their share of value within the top 10 investable assets, which is something we have been tracking here on the channel. As you can see here, all the gold and silver in the world today now make up 52.4% of the total value of all these things combined, meaning they’re worth more.
They could buy all of the things on this list, all of these companies, all of the Bitcoin and that value, that share of value that gold and silver have on this list is growing. Now, considering the fact that we may be close to a major shift in the markets, one that could propel gold and silver to even higher levels, I thought it was a good time to sit down with the man who warned everyone about the 2008 crash before it happened, a person who is no stranger to investing or to gold and silver, Peter Schiff, and he was kind enough to accept my invitation to appear on the show on short notice to discuss the following topics. Starting with if this pullback on metals has created an opportunity to buy, we talked about silver mining stocks.
We even talked about platinum in this conversation. For those of you who have been asking me about that, we discussed the possibility of the next crash being worse than the 2008 crash, the possibility that we are entering a permanent bull market for gold and silver, and we discussed much, much more. So please be sure to watch the entirety of this video because there is a lot of information in it that you’re going to want to hear.
Now, just before we dive in, please remember to check out www.summitmetals.com if you want to buy this latest pullback in gold and silver. They have the products you see here available at great prices. And for those of you looking for extra knowledge on popular gold and silver related topics, I have free articles available at their site too with new ones on the way, and I’ll share the link to these articles in the video description below, but you can find it all at www.summitmetals.com. Without any further ado, here is my conversation with Peter Schiff.
Hello, Peter, and welcome back to Bald Guy Money. I assume most of my viewers are familiar with your work, but for those who may not be, Peter, you really are a legend in the space. You’ve been called Dr. Doom by the mainstream media.
You are a sound money advocate and the man behind Euro-Pacific asset management, which I see you’ve got in the background there, which allows people to get exposure to the global market. Some people call it a fund, but if my understanding is correct, Peter, it’s not a fund. It has its own ticker.
Anyhow, welcome to the show, and I’m really happy to have you back on Bald Guy Money. Thanks, Roger, and Euro-Pacific asset management is the company. It’s not a fund.
We do manage five mutual funds, and we have separately managed accounts, but the name of the RIA is Euro-Pacific Asset Management, and the URL is europack.com. Well, we’re certainly going to dig deeper into that later on in our discussion, but I want to start this one off by covering something we talked about the last time you were on Bald Guy Money, which was obviously back in May 2024. Gold was $2,360 per ounce. Silver was $28 per ounce.
In fact, it had just made a big move up, and I asked you, Peter, what advice you would give to people who are waiting for a big pullback in the price of gold to buy, and what you said then is you said, don’t wait. Price is going higher. Now, we’re knocking on the door of $3,000 per ounce, so you were right, and some of those same people are still waiting for a big pullback before buying gold, and I’d like to know, Peter, is your advice the same as it was the last time you appeared on my show, or has it changed? Do you think people should wait before buying this latest breakout in gold? I would wait for that.
It’s going to be like waiting for Godot, so what you should do is just buy. This is a nice little pullback here. We got above $2,950, and now we’re back below $2,850, so we’ve had about $100 pullback.
That’s about as much as you’re going to get. That’s how the bull market has been. You have to pay up.
Otherwise, you’re not going to buy it, but silver is still very cheap. If you think I missed a boat on gold, I mean, you didn’t miss it, but you may want to buy silver. It’s still below $32 an ounce.
Silver is ridiculously cheap, so you could buy that right now and maybe buy gold later. Also, the gold mining stocks, which you alluded to, I think that’s where you should really be buying because the gold mining stocks are not that much higher than they were when gold was $2,300, $2,400. So you could really just take a gift horse there and just buy them now before they eventually explode, which they will do.
So I was planning on saving the topic of mining stocks for later, but since you mentioned it, we can cover the gold, silver, and platinum stuff in a moment. I turned bullish, Peter, on mining stocks in July 2023, and since then, they have moved. Nobody can claim they have done nothing, that they haven’t moved since then.
They have started to move, but they haven’t moved in line with the expectations of many investors who are watching gold and silver prices continue to strengthen. Peter, at this stage of the game, what is it going to take for mining stocks to make that big expected move up? It’s hard to say. You might have thought it was going to be these good earnings that were just released, but we got a bunch of earnings that came out, and most of the stocks went down, even if they beat their earnings.
But even the stocks that didn’t beat, that missed, the earnings were still great compared to the prior year and relative to the stock prices. So there’s just so much negativity in the sector, and I think it’s just because the analysts that follow these stocks don’t believe in gold. They expect the price to be much lower in the future than it is today, and so that clouds their judgment for what these companies are likely going to earn in the future, what they’re worth now.
And I think people are making money, or at least they were until the last couple of weeks, in tech stocks and other type of stocks that are a lot more exciting than gold stocks, have certainly performed better over the last five or ten years than gold stocks. And a lot of other people have been distracted by Bitcoin, which obviously has gone up a lot over the last five or ten years, and I think that’s stolen some of the retail funder out of the price of gold and probably the gold mining stocks. Ever since all these Bitcoin ETFs were launched a little over a year ago, I think a lot of stock market investors that may have bought mining stocks decided to buy crypto stocks or Bitcoin ETFs.
I think that’s going to end up being a very bad decision for them, but that may be one of the reasons why these stocks are still so cheap and nobody is really paying attention to how good the fundamentals are. Okay, so shifting gears back to metals and fiat currency, another topic we covered the last time we spoke was inflation. And what you said then was that the economic system and those participating in it have become addicted to inflation, and that at some point the Fed will simply ignore the inflation, they’ll carry on as if it doesn’t exist.
Now, we’re getting to a point where they are arguably ignoring it. At least they’re diminishing the importance of it. Interest rates, as determined by the market, have gone up since the Fed cut its target rate in 2024.
I’ve heard you talk about it on your show a few times recently. And what I want to know is, Peter, at what point do you think the Fed is going to step in, turn the money printers back on, and start buying bonds on the market again to get those interest rates back down and support the market participants who are addicted to the inflation? They never really turned them off. They slowed them down a bit, you know, with quantitative tightening.
But money supply expanded about 5% M2 last year, so they didn’t turn off the printers. They just don’t have them in overdrive like they have had, and they will. Look, initially they used inflation to prop up the economy, to prop up the financial markets, to prop up the government.
But when that inflation became so unbearable on Main Street, they finally had to do something about it. But when rates got up to about 5.25% and banks started to fail, that’s when the Fed stopped hiking. And then when it became clear that the economy was turning around, they started to cut.
And they’ve paused the cuts because, you know, inflation has really spiked back up. But I think that eventually they’re going to resume the cuts because the economy is going to continue to weaken. But inflation is going to continue to strengthen.
And so that is the dichotomy that the markets don’t appreciate. But when the Fed is faced with that dilemma, it, I think, will err on the side of trying to stimulate the economy. And, you know, they’ll just allow inflation to get worse.
Now, they’re not going to say that. They’re just going to, you know, pretend that inflation is going to come down by itself or that they’ve already done enough and we just have to wait a little longer for inflation to work its way back down to 2%. But it’s more likely to go above 10% than go back down to 2%.
Well, we’ve already seen metals make a big move up, despite the fact that Jerome Powell seems to be holding on to the lie that interest rates remain elevated. What I’d like to know is, Peter, where do you see gold and silver prices headed and on what trajectory once the Fed starts expanding their balance sheet again and injecting money back into the system at a faster rate, will stocks take off again at the expense of metals or will they continue on their current path? Well, I think when they do that, I think gold is going to move up much faster. And I also think when they start to do that, that’s when the US dollar starts to really decline on a relative basis related to the euro and the pound and the yen and all these other currencies that it’s been strengthening against.
And if we have $3,000 gold or close to it in an environment where the US dollar index is strong, imagine what gold is going to be trading like when the US dollar index is weak. Because that’s when gold really shines, is when it has a weak dollar. The fact that it’s been able to shine with the headwind of a strong dollar just shows you how strong the underlying trend is for higher gold prices.
Yeah, and I think we’re seeing that for silver as well, because silver in other currencies, I mean, if you look at the Australian dollar, for example, it is already beating its 2011 high. It just is not beating it in US dollar yet because the index was at 75 back in 2011, whereas the US dollar index today is at about 107. Yeah, I think the Australian dollar back then was like $1.10. It was worth more than the US dollar.
And so now, what is it, 65 cents or 62 cents? I forget exactly where it is. But yeah, the Aussie dollar has almost been cut in half. And so that means that when silver was 50 in Australia, it was cheaper than silver is right now at 32.
Now, in the past, Peter, you’ve said that you don’t think the US treasury will buy gold. In fact, the last time we talked, you compared when I asked you about this, the US treasury buying gold, you compared it to the police calling the police on themselves, which I thought was a good one. Now, with all the precious metals, specifically gold, moving into the United States right now, have you changed your opinion on that? I don’t think that gold is coming in because the US government purchased it.
I think it’s either coming in because there are private interests that are purchasing it, or maybe companies are worried that the tariffs that Trump is looking to impose may also be applied to gold. And so maybe they want to get the gold into the country while they can do it without being subject to tariffs. It’s also possible that some of that gold belongs to the US government.
They’re trying to get it back into Fort Knox. And maybe they had loaned it out and now they’re getting it back. I don’t know.
But I don’t think the US government has spent any new money buying gold. So you paint a bleak picture for the future of the US dollar. And to be honest, it’s one that I completely agree with.
For my viewers in other parts of the world, outside of the United States, who are asking what future their currency has, if the US dollar itself doesn’t have much of a future, what would you say to them, especially to those who are maybe in their 50s, who grew up believing the US dollar was as good as gold? Well, you know, all fiat currencies don’t have much of a future unless they, you know, become legitimate currencies. They got to get backed up by something. Now, a lot of these countries have dollar reserves or reserves of other currencies like the euro or the yen, and they use those foreign exchange reserves to back up their currencies.
But everybody needs to use gold. I mean, gold is real money, and it should be the cornerstone of any monetary system. So to the extent that a government is issuing currency, it should have gold to back it up.
It shouldn’t just be able to conjure, you know, paper currency out of thin air, because the problem is you can’t trust governments when they can just create money without any discipline. They’ll create too much of it because it gives the politicians, you know, get a jail-free card on deficits. And it allows politicians to promise voters something for nothing, because they can run deficits in an environment where they can print the money to fund them.
But that inevitably destroys the value of the money. But if there’s some discipline on governments, and you get discipline when you have a gold standard, then if governments want to spend money, they need to collect taxes. And that’s, you know, not as appealing.
A lot of people are in favor of government programs as long as they don’t have to pay for them. But the minute they realize that there’s a cost and they’re going to have to pay it, then those programs aren’t nearly as appealing. Okay, so we’ve touched a bit on gold and silver already, and I am regularly asked in the comments section of my videos what I think about platinum.
I don’t know if you get these same questions in your videos. Now, I am admittedly a bear on platinum. As far as I see it, it’s not as liquid as gold and silver.
And I just think gold and silver are the better metals to stack. Peter, do you think I’m wrong on that? Is there a reason to own platinum? If so, why? Yeah, platinum has not been historically used as money. But, you know, it doesn’t mean it’s not a valuable metal.
I mean, we’ve used copper as money. We’ve used nickel as money. I don’t know why we couldn’t use platinum.
But, you know, it’s certainly used in industry. It’s used in jewelry. And I know that for most of my adult life, or probably most of my total life, platinum has been more expensive than gold.
And, you know, now it’s a third of the price almost, right? Platinum is still under $1,000. Palladium, I think, now is more expensive than platinum. Palladium used to be a lot cheaper than platinum.
And the question is, is this some kind of permanent situation where platinum is now always going to be cheaper than these other metals? Or is this a temporary thing, and platinum will one day be more expensive than gold again? So, you know, I think there’s a good chance that, you know, over time, platinum is going to go a lot higher. You know, again, I don’t own it either, really. I don’t own physical platinum either.
I own physical gold and silver kind of by tradition. I have bought platinum in the past. I had some physical platinum that I had stored years ago, and I actually sold it and cashed it in for silver.
I should have cashed it in for gold, but I thought silver was really cheap. I said, oh, I’ll get rid of this platinum, you know, and buy the silver. I should have just bought more gold, because gold’s done better than silver over that time period.
But silver’s done better than platinum, because when I did it, silver was still below $20. So silver’s up. But, you know, gold was, you know, under $1,000 probably when I made that swap.
I forget when. Maybe it was $1,200. It could have been a little over $1,000.
But gold’s done a lot better. But, you know, you tend to think that, you know, there’s things move in cycles, and there’s mean reversion. And, you know, platinum won’t always be cheap.
I mean, otherwise, you know, maybe they have to start, you know, platinum, American Express has to downgrade the platinum card and make the gold card the one with all the perks. And the platinum card has to be lower down. Everybody still thinks of platinum as somehow being superior to gold.
And the only reason that platinum got that, you know, stigma, not a stigma, but what’s the word I want? For the reason it enjoyed that reputation as being better than gold. And so it was some, you know, higher order that you would aspire to. The reason was because of the price.
Platinum was more expensive. Everybody knew that anything that was platinum was more expensive than gold. And so that’s why you wanted to be a platinum member.
You don’t want to be a gold member, right? You want to be platinum. That meant, yeah, I’m even more important. But do you think that people should have a small speculative position then in physical platinum or, you know? You know, we haven’t really pushed it a lot, but yeah, I’ve told people, yeah, you know, gold is $3,000 an ounce.
So maybe you think, hey, maybe it’s a little expensive relative to these other metals. Not that it’s not going to go up. I think gold will go up.
The question is, will platinum go up more? Will silver go up more? You know, because gold moves so much more than these other metals already. So maybe they’ll catch up. So anyone who has spent any amount of time in precious metals has asked themselves the question, if gold gets to $10,000 an ounce, if silver gets to $200 an ounce, will it be a world worth living in? Now, I don’t want to necessarily go to that extreme, but there are signs that the market is potentially rolling over right now.
So I want to ask you, as this is something we expect to lead to the next big move up for metals, how bad is this bust going to be? Is it going to be worse than it was in 2008? I think what we’re headed for is going to be worse than 2008. First of all, in other countries, like you mentioned, in Australia, in Canada, they’re already seeing gold move to a much higher degree. We’re way, way up in terms of those currencies over the past couple of years, because those currencies have fallen as the price of gold has been rising.
So I mean, those countries haven’t collapsed, right? The people are still surviving this huge move up in the price of gold. But I think that when gold really moves up $5,000 or more, $10,000, $20,000 an ounce, when you get that kind of a move, I think it’s because the US dollar is really in almost a free fall. I think the dollar is going to be losing ground, and that means prices are going to be going up.
So it’s not like gold is going to go to $10,000 or $20,000 an ounce, and your grocery bills aren’t also going to go way up. They’re not going to go up proportionate to that, but they’re going to be much, much higher than they are now. I mean, they’re going to be going up.
And it’s not just food. It’s going to be energy and pretty much everything that’s going to be getting more expensive, because we’re just going to be having a run on the currency, run on the dollar. I think the dollar is going to lose its status as the reserve currency.
In fact, I think if gold is anywhere near $10,000, $20,000, it means the dollar has lost that status. People are fleeing dollars and buying gold. And in that environment, we can’t run these massive trade deficits that we just reported today.
So consumer goods are going to get much more expensive in the United States, which means the standard of living comes down. Interest rates are going to be much higher. This whole credit bubble is going to implode.
And so we’re going to have to go through a protracted economic decline. Now, you know, is it possible that, you know, AI and robotics and all that might, you know, help transform the economy in the future to make it a lot more productive? Sure. But, you know, there’s a lot of stuff that could go wrong between now and then.
Politicians around the world seem happy to continue spending and printing money. It doesn’t seem as if anybody is taking the current situation seriously at all. And since we both have kids, Peter, the last question I want to ask you is, do you think what is happening now could lead us into a permanent bull market for gold and silver? And how are you preparing your kids to live in such a world? My older son really just doesn’t agree with anything I’m saying, because he thinks AI is going to just be this complete miracle.
And we have nothing to worry about. He figures we’re all going to be fine within the next few years. And my younger kids, you know, they’re too young to really care about it right now.
They’re just being kids. But, you know, you’re right about what you said. The politicians are doing nothing.
What’s happening with Doge is good. But it isn’t enough to get to the root cause of the problem. The best thing that Doge is doing is calling attention to government waste, fraud and abuse, which is good.
But the Republicans in the House just voted to pass a budget with only one Republican having the guts to vote against it. And they proposed a budget that increases the deficits beyond what they were under Biden. So the problem gets worse.
And they also included a provision to increase the debt ceiling from 36 trillion, a level which we’ve already surpassed. So we’re already above the ceiling, but they’re going to raise it to 40 trillion. And Trump is in favor of this.
This is how we got into this mess, by continuously kicking the can down the road and raising that debt ceiling every time we get to it. The fact that they haven’t taken the opportunity not to raise the ceiling shows you that they’re not serious about ever balancing this budget, because the only way to do it is to leave the ceiling intact and force the government to cut spending. So in theory, this bull market and precious metals can last as long as these politicians keep kicking the can down the road.
Yeah, well, I mean, the bull market is going to last as long as we have fiat currency, pretty much. I mean, look, when the Federal Reserve was established in 1913, gold was $20 an ounce. Now it’s almost $3,000.
So, I mean, this is a long trend. And it’s not that gold has changed. The value of the paper money has changed.
Because when we first established this country in 1789, we ratified the Constitution, and there was the Coinage Act of 1789 that defined a dollar, and gold was $20 an ounce in 1789. And so 120 years later, when we created the Federal Reserve, gold was still $20 an ounce. It hadn’t changed.
The dollar had the same value in terms of gold when we created the Federal Reserve. And so that shows you that gold prices don’t have to go up. They can stay the same if we have sound money.
But the Federal Reserve, of course, began to print too much money. And then in 1933, Roosevelt devalued that dollar, and the price of gold went from $20 to $35. And it kind of stayed fixed there, although it was artificially suppressed until late 1970.
And then Nixon devalued the dollar a couple times. But when he got to about $42, he just said, Uncle, and just defaulted. But now, the dollar has been completely detached from gold ever since 1971.
And that’s why the dollar’s value has accelerated its decline and has gone from $42 in 1971 to $2,950 last week or on Monday. But now we’ve pulled back $100. We’re about $2,850 now.
So people, it’s a sale. It is a sale. And for those viewers of mine who are also interested in taking part in that sale that’s happening in the mining stocks, because I’m also invested in the miners.
I think it’s good. How can they do that with you? How can they do that with Europacific? We have a gold fund. EPGIX is the symbol for my fund, the no-load version.
You could buy my gold fund managed by Adrian Day. You could buy it at any discount brokerage firm out there. We’re on all the platforms.
If you don’t have an account, you can go to Europac’s website, europac.com, and just buy the fund right there directly with us and own shares of our fund. If you’ve got a larger account and you’d like us to manage a portfolio for you of the mining stocks, we have separately managed accounts. You can learn about those at my website as well by talking to our advisors at Europacific Asset Management.
I think that’s what people should be focusing on now, more so than the physical metals. If you don’t have any physical gold at all and you want to buy some, again, I would look at silver right now, even over gold. But I would look at the miners over both metals.
There are silver miners, too, that are really cheap. Yeah, I would agree. Most gold companies also mine silver, and most silver companies mine some gold, too.
But the silver companies that are pure silver are much heavier in the silver. Because they mine, the gold companies, they get other metals, minerals there. They get some copper, too.
A lot of the gold companies end up with some copper. I think they’re going to have higher earnings because all these metal prices are going up. Thank you so much, Peter, for taking the time to come again on Bald Guy Money.
I really appreciate it. I hope we can do it again sometime in the future. Yeah, sure thing.
Take care. Thanks very much. Take care.
