Will Gold & Silver Become Unaffordable? (Uncut) 02-23-2025
hello everyone welcome to bald guy money I am bald guy and I have two really big topics to cover this week both associated with affordability and both of them future focused because next week and how we close the month of February is going to be pivotal for the markets and I’ve warned you all before that we are in the danger zone right now because a combination of weaker economic data earnings disappointments we saw Walmart come in with very disappointing earnings and forward guidance in their latest
earnings report and mounting layoffs at companies around the world have stalled the momentum we were seeing in stocks while big money appetite for precious metals appears to still be strong now one thing I have been carefully monitoring is Insider and institutional stock sales and this is an updated image showing the current status of Insider stock transactions of $100,000 or more so we’re not talking about small fish here and the trend favoring stock sales not only remains intact it is ex accelerating as suggested by the size of
the red bars on the chart getting larger as soon as we entered February with one notable seller entering the list that being Jamie Diamond CEO of JP Morgan Bank who offloaded $234 Million worth of JP Morgan stock on February 20th something that could indicate incoming turbulence for the banks and the stock market at large and although I’m not implying it means bank failures are on the way it remains amazing major threat and it’s important to note that the main participants in the 2025 Gold Rush are major financial
institutions and considering what happened during the last bank scare when Silicon Valley Bank failed in March 2023 and silver price went up more than 15% and gold price went up nearly 8% it is possible that big money including banks are positioning themselves in advance for such an event an event that could also trigger a repeat of the last decade we saw in the stock market from 2000 to 2012 when the S&P 500 experienced two Bubbles and declined by 3% over 13 years while gold and silver entered the first
leg of the modern medals bull market so with that in mind I want to cover the following topics in this video starting with a metal that is still relatively affordable today that being silver and I want to touch on where we’re going by addressing the creeping affordability crisis and what the historic all-time highs suggest about where we’re going and how much people will be able to afford in the future once I’ve covered that I have a very important message for you all on the affordability emergency
we are already seeing in gold right now why I think it will get worse and how you can prepare for it now so be sure to watch this video to the very end but just before we dive in please remember to check out www.summit.com if you want to buy gold and silver at a great price from a dealer you can trust including 5 O of silver at spot if you use code new customer link to this deal is in the video description below okay so jumping into it I have called this period we are in now the precious metals Renaissance
gold as we’ll cover shortly is becoming unaffordable we all know that and silver is quietly experiencing the same issues albeit in a less visible way because although silver remains well within reach for the average person today as it’s just above $30 an ounce when we look at the affordability of silver in an environment where people are able to save less and less of their income you can see here based on the median us household income and personal savings rate data that the typical us household
has gone from being able to save 521 ounces of silver per year in 1990 all the way down to 98 ounces of silver per year today which is almost on par with 2011 when silver achieved the highest average US dollar price ever in the wake of the global financial crisis and accompanying recession so we are already at that level today despite the fact that silver has not made a big move up yet like the one we witnessed in 2011 now to anticipate where we’re going to be when it makes that move up I think
it’s important to look at the previous all-time high for silver but sadly most people can’t even agree on what the high for silver is or how it should be measured but in my opinion there are two legitimate ways to measure Silver’s all-time high and the first one is by measuring price development in US dollars since 1971 when the USA went off of the gold standard and the first price we typically look at for silver is the nominal high of $494 per ounce that it reached back in 1980 when the Hunt Brothers attempted to
Corner the silver market a level that we Revisited quite closely in 2011 strengthening the argument for that as a significant high but fails to take into account the inflation adjusted reality of $200 per ounce for silver which is what the 1980 High represents today now measuring silver’s value in US dollars is a relatively new phenomenon because the oldest way of measuring it is in relation to gold and as you can see here these are some notable gold to Silver ratios and I know that there are some
historical gold to Silver ratios as low as 3:1 but these are the main ones I think we should consider taking historical significance into account with the Roman ratio of 12:1 valuing silver at the highest level and suggesting silver price should be $245 per ounce today when you factor in the current price of gold that said it is worth noting that the 20th century average of 47 to1 which implies a silver price of $62.50 per ounce is very close to the 20 11 inflation adjusted high of $688 per ounce and for that reason I am
compelled to exclude the top- down value assigned to silver by the Romans as well as situations where people were potentially cornering the market and I defer to the 2011 inflation adjusted high as a legitimate measuring stick for silver in 2025 while understanding that once that level is broken the price of silver can still go much higher based on it industrial use cases the 8:1 mining ratio with gold the list goes on but for the purpose of this analysis I am taking $688 as the all-time high and why that
number although on the low side for some people still concerns me is because if we apply that price to the current rate of savings by the median us household it means Americans in the not so distant future in my opinion will barely be able to afford 45 o of silver per year as savings Which is less than half of the 2011 amount and about 12 times less than they were able to save in 1990 so this is a message for everyone watching this video who is watching the gold train leave the station and taking the
relative affordability of silver for granted this analysis is to demonstrate that it will not last long and I’m going to show you in a moment where we stand with gold but I will finish this silver bit by saying take advantage of the pullbacks when you can because at the current trajectory we’re on we could revisit these levels that 6880 level as I’ve been saying for a few years now by 2026 now just before we get to this video’s viewer question on the topic of the gold affordability emergency please
remember that if you want to diversify your hard asset portfolio into land like I have to check out channel partner landof land.com they have properties like this 3.96 acre lot in Lincoln County Georgia ready for anyone looking to build a home or someone who just wants to own it as a hard asset and when you use promo code bald guy you get $300 off any piece of land whether it’s from an auction or handpicked from their online offer so check them out at landof land.com or call them at the number on
the screen and to make it easy I will leave the link to this week’s land auction in the video description below okay so moving on to the viewer question for this week and it comes from a gentleman named Rick woods and it really inspired this week’s video because Rick asked if gold is revalued and it goes up to much higher levels how will common people sell their gold who is going to buy it and it’s a good question and I’m going to add to it by asking if that happens will gold be affordable for common people at all and should we
adjust our strategies based on this threat but before I can present my answer there is something you need to know and I suspect that many of you know it already but it’s important to understand this and that is hard work working people in developed economies specifically in the United States are getting poorer it’s a fact because when gold became legal to own in the United States in 1974 after many years of it being illegal to own the average American if they saved all their money in Gold could save about 9.3 troy ounces
per year and that’s despite the fact that the official price of gold measured in US Dollars had gone up fourfold so it had gotten four times more expensive between 1971 when the US officially got off the gold standard and 1974 when it became legal for Americans to own it again but despite that big run up in price Americans at that time could still save 9.3 ounces of gold per year and if someone maybe earned a little more money or wanted to save everything they earned in Gold it was a very realistic
possibility for such a person to buy a kilogram bar of gold which weighs 32.1 troy ounces because you’d only have to save for about 3.5 years to afford it now fast forward to 2025 when people are being told they have the highest inflation adjusted household incomes in the history of the United States of America when we factor in the latest savings rate of 3.8% that means the median us household can only save about 1.1 ounces of gold each year at the average 2025 closing price for gold and if you use the
current price at $2,936 per ounce that number Falls to 1 ounce per year and putting that into context what it means is coming back to that example of saving for a 1 kilo bar back in 1974 the average US household needs more than 29 years of savings at current levels to save for that 1 kilo bar of gold where it used to take 3 and A2 years to bu and I don’t expect that number to get any smaller considering the fact that the real savings rate measured in gold as you can see here is falling and it’s gone from 9.3 o 9.3
ounces per year in 1974 to 6.6 ounces per year in 1990 I even crunched the numbers for 2011 when people were still recovering from the financial crash of 2008 and gold had a major blowoff top that year if you remember it reached almost 200 000 an ounce and even then Americans could save more than 2 ounces of gold per year using their savings versus the barely 1 ounce of gold they can save today making the kilo bar a much less practical purchase today than it was in 1974 so I hope it’s clear to everyone that you are getting priced out
of the gold market because slowly but surely as central banks and major Financial players enter the gold game you are becom becoming less and less significant in the gold price equation that is what the data is showing us but instead of interpreting this as a sign to get out of the gold market my point of view is you should look at this as a sign to get into gold but to get into the right gold because as I covered in last week’s video a gold revaluation would boost investor confidence in gold’s price floor which would be around
current levels and would eliminate any existing incentives for central banks to sell the gold holding because a revaluation means they could unlock the value of the gold by borrowing against it without ever having to move it out of the Vault and in such an environment price can still freely float upwards opening the door to Future revaluations as governments seek to borrow even more money against their growing Gold stock piles but a serious consequence of this is that a 1 o coin may become as impractical to buy or own at some point
down the line as buying or owning a 1 kilg bar is today and I say that not because I think owning a 1 kg bar is bad but because it validates the concerns that Rick had in his question about who is going to buy my gold once price pops even more because the number of willing buyers for a kilo of gold today is much smaller than the number of willing buyers for a 1 o coin but as I demonstrated earlier back in the 1970s because gold was more affordable it was much less of a problem to find a buyer for a large amount of gold and with that
in mind it’s why I say if you are concerned about the affordability of gold impacting its liquidity in the future meaning the ease at which you can cash it in for something else and it’s something that I am concerned about and if you’re hesitant to enter gold because you can’t afford 1 o coins because that’s what everyone says you should buy because the premiums are lower than on fractional pieces I just want you to consider what the future of gold is is going to be because if 1 oun becomes as unaffordable as 1 kilo is today then
fractional gold is not only going to protect your ability to transact in it easily in the future it’s going to protect the liquidity of your stack but it’s also going to command higher premiums in the resale Market because it will become the most in demand and useful gold product and considering how little of this stuff actually exists per person in the world today and these are the latest numbers from the Royal Mint by the way I also shared them on X a couple days ago having 64 oun gold coins puts you well ahead of what most people
could ever dream of having and it also means that silver is still a very attractive and affordable companion to your gold stack as I just showed you at around $35 an ounce when you factor in the premiums and please notice how I said companion and not substitute they are in my opinion to be stacked together silver is not a substitute to Gold so Rick I hope that answers your question because I think gold is in fact becoming more important not less important and I also think it’s on the cusp of going
mainstream and for those of you who are against fractional gold because of the premiums please just consider this and I’ve done this exercise on the channel before to show you all that if you had purchased a quar ounce of gold each quarter so every 3 months for 2 years count ing back from today to get a full 2 O you would have paid less for those 2 ounces of gold at a higher premium despite the higher premium than if you had saved up to buy the full ounce at a lower premium and what’s more apart from
the 10% premium on quarter ounce coins being used in this calculation being a total exaggeration since I’ve already shown you that Summit medals is selling them for less than 6% above spot is that you could sell the 2 O of gold in those fractional pieces for more than what you could sell them in full ounce coins because on the sell side you can recoup more of the premium on the fractional pieces and I check this at multiple dealers who publish their buy and sell numbers just to make sure it’s still
valid today and it is and I know this has been a long- winded answer to this question but what I am trying to do here is to make sure that all of my viewers are moving in the direction of where the game is going not where it’s been in the past and not where it is today because like Wayne Gretzky who skated to where the puck is going to be you don’t become great by relying on what’s been done or what is today and even in the 5,000-year old gold and silver game there are changes happening that we all need to be
aware of we all need to adjust to them and this is one of them so with that said that’s it for this video I want to thank you all for watching if you enjoyed it please remember to leave a like below if you have a question for me that you’d like me to address in a future video video also please feel free to leave that below and if you think this content is important and should be shared with other people don’t be shy please share that with your friends and loved ones who you think should hear this message because my Channel’s growth
really relies on your engagement here in the channel so as I say at the end of all of my videos please remember to take care of yourselves and take care of each other I’ll see you all in the next video goodbye
