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In this episode, Andrew Sleigh breaks down the latest developments impacting the silver price and gold price, including interest rate policy, inflation risks, and global financial instability.
MACRO OUTLOOK INTEREST RATES INFLATION GOLD SPOT PRICE AND BUY GOLD STRATEGY
The discussion opens with Andrew Sleigh providing a cautious macroeconomic outlook, emphasizing uncertainty around interest rate decisions and broader financial stability. He states clearly, “I don't think they're going to cut rates until something awful breaks,” highlighting his belief that central banks tend to react rather than act preemptively. This perspective frames the broader conversation around buy gold, gold spot price, and long-term wealth protection. Sleigh expands on this by suggesting that while markets expect stability, underlying risks remain unresolved, noting, “I think that there'll be a major break in something far before next year.” This reinforces the idea that investors monitoring the gold spot price should not rely solely on official forecasts but instead consider systemic fragility. He also connects rate cuts directly to inflationary pressures, stating, “once the rate cuts start in a big way, then you're going to see gold and silver respond… going up in a pretty accelerated fashion.” This aligns with traditional safe-haven demand patterns where investors move to buy gold and buy silver during monetary easing cycles. For those tracking live pricing and trends, resources like gold price chart and silver price chart become essential tools. Sleigh also introduces the political dimension, explaining, “they've got $10 trillion or $11 trillion they have to roll over in debt… at current rates, they can't afford it,” suggesting that fiscal pressure may ultimately force policy shifts. This macro backdrop builds a strong foundation for understanding why precious metals remain central to wealth preservation strategies, especially when inflation is understated and debt levels are unsustainable.
MARKET MANIPULATION SILVER SPOT PRICE BUY SILVER AND SHORT TERM VOLATILITY
As the conversation shifts toward geopolitical tensions and market behavior, Sleigh becomes more direct about perceived manipulation and its impact on silver spot price and investor sentiment. He asserts, “these so-called ceasefires, they're all part of the market manipulation,” suggesting that short-term price swings in gold and silver are often driven by engineered narratives rather than fundamentals. This creates a challenging environment for investors looking to buy silver, as volatility discourages large commitments. He explains, “it's keeping everybody so off balance… waiting and seeing what goes on,” describing a state of analysis paralysis among investors. Despite this, he distinguishes between short-term hesitation and long-term conviction, encouraging gradual accumulation: “Those that are just nibbling, perfect… just keep nibbling.” This reinforces a dollar-cost averaging approach for those monitoring the silver spot price via tools like precious metals price chart. Sleigh also challenges official inflation figures, stating, “the real inflation… was probably somewhere between eight and 10%,” which strengthens the long-term bullish case for both metals. He continues, “their the inflation is going to push gold and silver up. doesn't have a choice,” underscoring the inevitability of price appreciation over time. However, he acknowledges short-term pressures: “Short term… has a sort of a stalling effect… People are not buying.” This duality—short-term suppression versus long-term growth—is central to understanding precious metals markets. His warning becomes more urgent when referencing global financial instability, citing that institutions are signaling potential collapse scenarios. This reinforces the idea that timing the market may be less important than securing physical assets before systemic shocks occur, particularly for those considering whether to buy silver or wait for a pullback.
FINANCIAL SYSTEM RISKS BUY GOLD BUY SILVER AND PHYSICAL ASSET STRATEGY
In the final portion, Sleigh delivers his strongest message regarding systemic risk and the importance of physical ownership. He references alarming global warnings, stating, “the governments of the countries of the world should be preparing for a financial system collapse,” emphasizing that this is not a localized issue but a global concern. This perspective directly supports the argument for investors to buy gold and buy silver as protection against currency devaluation and institutional instability. He reinforces urgency with a clear directive: “get it done within the next five or six weeks,” suggesting that current conditions may not last. The discussion also touches on structural changes in the financial system, including digital currencies and regulatory shifts, noting, “when a digital currency is brought out, banks aren't invited,” which implies a fundamental transformation in how money is managed. Sleigh is particularly critical of paper-based investments, stating unequivocally, “The ETFs are the last place that ever put the money… not a place of safe haven at all,” advocating instead for direct ownership of physical metals. He supports this with anecdotal evidence: “I've had clients… they bought them thinking they were going into safe haven assets… my gosh, I made a mistake.” This reinforces the distinction between perceived and actual security. He concludes by highlighting investor misconceptions, particularly around institutional figures, noting that many believe major investors still hold ETFs when “he has he does not hold any of those assets at all period. Physical gold and silver only.” For those ready to act, acquiring tangible assets through trusted sources such as gold bullion and silver bullion aligns with this strategy.
In conclusion, the conversation underscores a consistent theme: macro instability, inflation, and systemic risk all point toward the growing importance of precious metals. Investors are encouraged to move beyond short-term noise and focus on long-term preservation by choosing to buy gold and buy silver as foundational assets in uncertain times.
Kellen Ainey (00:00)
Hi there everyone and welcome back to the Ask Andrew podcast. Once again, we're joined by Andrew Sleigh. Hi Andrew, thank you for joining us once again.
Andrew Sleigh (00:08)
Yeah, thank you, Kellen. Good to be back.
Kellen Ainey (00:10)
It's things have slowed down in the markets a little bit compared to how we were a couple months ago, but just as pricing just as volatile as ever. But why don't we jump right into it?
Andrew Sleigh (00:21)
Sure. Let's go.
Kellen Ainey (00:23)
The Iran war has raised expectations that the Fed would cut interest rates this year. Most investors tracked by the CME FedWatch tool now expect the central bank to keep U.S. interest rates unchanged until the middle of next year. Over 99 % of the investors tracked by the tool are betting on rates staying unchanged at the next policy meeting next week. Do you agree with this outlook or do you see the Fed adhering to Trump's wishes for slashed rates?
Andrew Sleigh (00:51)
Well, I don't follow that too much, but I don't think they're going to cut rates until something awful breaks. So they could very easily maintain the rates the way they are. And we haven't had a big enough problem occur yet where they start to cut. So if I was going to lean one way, would say rates will stay the same.
Kellen Ainey (00:58)
Okay.
Okay, and how long do you, should you agree with this outlook saying that the rates are probably going to be remaining unchanged until at least mid-time next year?
Andrew Sleigh (01:24)
I don't think I'd go that far out. ⁓ The reason is that I think that there'll be a major break in something far before next year. So for example, let's say the stock market and the financial system ⁓ breaks heavy down, let's say in September. Well, I mean, they're going to respond with interest rate cuts. So I don't think the system will stay afloat up until mid next year. I think we're going to, I think it'll be this.
Kellen Ainey (01:50)
And what do you think?
Andrew Sleigh (01:53)
This year, if something breaks, we'll have interest rate cuts.
Kellen Ainey (01:57)
And what do see the outcomes of those potential rate cuts?
Andrew Sleigh (02:01)
⁓ Well, that's when you do rate cuts like what they plan to do. That's very inflationary. so once the rate cuts start in a big way, then you're going to see gold and silver respond in the opposite direction going up in a pretty accelerated fashion.
Kellen Ainey (02:19)
And do you know, can you give a little bit of insight as to why the president of the United States, Donald Trump, is so adamant to have the rates cut?
Andrew Sleigh (02:33)
In my opinion, I would say it's because they've got $10 trillion or $11 trillion they have to roll over in debt before the end of the year. And at current rates, they can't afford it. It'll bankrupt the country.
So like, just, their debt's gonna, their servicing of that debt's gonna go up exponentially. So that's why he's calling for lower interest rates.
Kellen Ainey (03:02)
Gold has declined on hawkish news since the war began as oil and the dollar have strengthened, while the reverse is true when there's news of a possible ceasefire. How long do you expect the current negotiations to continue and how will this impact both gold and silver in the short term?
Andrew Sleigh (03:26)
In my opinion, think that these so-called ceasefires, they're all part of the market manipulation. There is no plan for a ceasefire. Every time they do a ceasefire, the markets move one way or the other, and the Wall Streets are profiting because they're aware of what's coming. So there's all these suspicious massive trades being done five, 10 minutes before announcements by presidency.
So that's just over and over and over again. And so this is just market manipulation. There's no intent for a ceasefire. There's no intent to have a random war over. That's going to carry on for quite some time. I mean, they're going to invade the country. I mean, if there's really a ceasefire, why are they building up troops and getting ready to move in?
Kellen Ainey (04:05)
Yeah.
No, I do agree. mean, all the writing on the wall doesn't really show for a ceasefire. And again, there's no real benefit for the U.S. to make one, right?
Andrew Sleigh (04:25)
just, you know, the, on-off again is a getting, you know, equipment a to, ⁓ the market manipulation so that there's the people involved, government people, ⁓ the wall street is being looked after with the market manipulation and they're making hundreds and hundreds of millions of dollars on this. So that's propping up the market, which is the end goal of the government as well. Make sure the stock market looks healthy.
A lot of money being made, and that's the illusion that they want. ⁓ So I wouldn't give, I wouldn't settle into false hope that every time there's a ceasefire that, maybe there's a peace deal coming. I don't think there's any intent on a peace deal coming.
Kellen Ainey (05:09)
So you're saying it's performative at best.
And how will you see this impacting both gold and silver specifically? We've talked about how the market may react or not react. It's done solely to upkeep said market, but how do you see gold and silver reacting as positions themselves?
Andrew Sleigh (05:27)
⁓ I think that's part of the manipulation. So on off again for war keeps everybody so and with all the other news going on out there with, you know, energy this and, and whatnot. ⁓ I think it's keeping everybody so off balance. They want to wait and see where the market is going because there's been so many ups and downs. And so I just, I spoke to a client the other day that wants to do a significant purchase and they're waiting.
to see where the market goes. And, you know, I don't blame them for any of that because if you're to come in with a big, big dollar amount, want to, you want to buy in a lower amount, not a lower value than a higher value. Those that are just nibbling, ⁓ perfect. You know, just keep nibbling. But I think everyone has just got so much information coming at them for not sure what's going on. It's got everybody in sort of an analysis paralysis state waiting and seeing what goes on.
Kellen Ainey (06:25)
Yeah, well, I have noticed that as well. A couple of my clients are at a bit of a standstill right now because they really just don't know what's going to come next. There's always there's there's one new story that can come out and things are going to swing in a completely different direction. Right. So and like you said, the admin, the current administration has ⁓ well, they've been doing it quite consistently and it's getting to the point where it's looking like blatant market manipulation.
But with that being said, as we already discussed the likelihood of interest rates remaining unchanged with US inflation still above the target at three to three and a half percent, how does this quote unquote higher for longer environment impact gold and silver? And if rate cuts continue to be delayed, does this create short term pressure or strengths or strengthen the long term bullish case?
Andrew Sleigh (07:17)
I would say that's going to strengthen long-term bullish. So the three and a half percent isn't even near reality. That's just what the government puts out. inflation, the real inflation in the States, if I was going to guess, was probably somewhere between eight and 10%. And so, but they're never going to say that because they keep massaging and dropping things that they measure it with to come up with that kind of number of three and a half. So ⁓ long-term.
their the inflation is going to push gold and silver up. doesn't have a choice. Short term, all this manipulation and ⁓ chaotic news that's going on ⁓ has a sort of a stalling effect that we've been seeing. People are not buying. So the demand comes down. So short term is just a very much a lot of chop and depression on the pressure on the price.
mid to long term. Once I believe that when there's going to be a point where there's going to be something occur that wakens up the people to a fear trade, like they're not going to believe what's going on anymore with all this, know, ceasefire, no ceasefire, expansion of war, things are getting worse. ⁓ There's an awful lot of awful news coming out there from the banks around the world.
Like if anyone has seen any of this stuff, they should not even worry about the price of what silver and gold are. They should be getting out of the system. ⁓ So like in the end, could be waiting for a pullback, ⁓ but there could be a banking crisis before a pullback. You know, like who knows?
Kellen Ainey (08:53)
Yep.
I think with Silver specifically, at least from, I've heard it from my clients, they've, with the major pullback that it's experienced this year, they're a little hesitant that it may happen again. But I mean, I do understand with Silver being evaluated at $116 an ounce and then currently at about what today it's holding around $76 an ounce. do, I do understand their standpoint, but at the same time, as you just said, it's
almost irrelevant. It's looking, you're using it as a tool.
Andrew Sleigh (09:35)
From a long-term
perspective, it is relevant. But there's people looking for bargains. There's an awful warning out there from the IMF that announced last week. I don't know the exact date now. It's roughly a week ago. And it was probably the worst announcement I've ever heard the IMF ever say. ⁓ I can't give it to you verbatim.
Kellen Ainey (09:40)
Exactly. You're looking at it as a way to get out of the current banking system.
Could you elaborate on that a little bit for our viewers?
Andrew Sleigh (10:05)
but you'll get the gist of it. So I'm not gonna be perfect with it. So don't crucify me on it. But basically IMF was stating that for what they see the current financial affairs of the world, that the governments of the countries of the world should be preparing for a financial system collapse.
Kellen Ainey (10:25)
And this ⁓ is from a macro perspective. This isn't one country we're talking about. So we're talking about basically the entire system internationally. Okay.
Andrew Sleigh (10:26)
the
This is global.
Mm-hmm.
That's an IMF in whatever words they exactly use, but that was essentially the message. And I mean, I was just sitting there going, wow, that's...
Kellen Ainey (10:42)
No, exactly. No, no, of course. I understand that this isn't an Andrew Slay message. This is, you're
just, you're just actually being the messenger in this one.
Andrew Sleigh (10:50)
That's
it. Yeah. And then even ⁓ one of the Fed ex-fed chairs from Chicago had a very serious warning that he said last week with regards to, I believe it was the treasury's ⁓ bond market that he gave a serious warning that that credit bubble is about to break and when it does, the system goes. And so there's a ton of warnings out there and that the million dollar question is ⁓ when exactly does all this break?
Kellen Ainey (11:10)
Yeah.
Andrew Sleigh (11:20)
because imminent could be next week or next month or in the fall.
Kellen Ainey (11:27)
Yeah.
Andrew Sleigh (11:29)
So.
Kellen Ainey (11:31)
Well, I mean, as I say to my clients very often, no one has the crystal ball, right? It's hard to say, and if we all did, we'd be prepared a lot better, but it's one of those things we kind of just need to prepare for it. And then if we're the best prepared, we can react in a better sense. So going back to the Iran War, can you further highlight the relationship between oil and gold, if there is any?
Andrew Sleigh (11:48)
Yeah.
⁓ that's a, that's a tough one. And I'm not an expert in that at all. It's all, ⁓ I'm just learning if there is relationship on that. I thought for a little while, ⁓ as oil was going up in price, that was strengthened in the U S dollar. And I thought that was putting pressure on gold and silver going down because everything's bought in U S dollars, obviously around the world. So, and I'm not entirely sure if that's it or not. ⁓
I've had some people tell me that ⁓ that would have a small part to play. ⁓ it's more like just the manipulation from the central bankers that are, you know, with the market being thinly traded, meaning that the demand for silver gold, maybe on the retail levels is low in America. So they're shorting and pushing the price down. ⁓ The American dollar getting strengthened by oil being up. ⁓
Whatever percentage of play that is, don't know. It does seem that when we see oil and gas go down on the world market, that gold and silver seem to have a good day that day. And then when oil seems to go up, gold and silver seem to be down. And I do believe at some point when oil really starts to skyrocket, I believe a lot of those assets will all move up together.
Kellen Ainey (13:33)
Okay.
Andrew Sleigh (13:33)
And then
you know, things are really broken.
Kellen Ainey (13:36)
Well, then it just goes to show the buying power of the dollar is completely shot at that point.
Andrew Sleigh (13:41)
That's it. It'll be a fear trade at that point where everyone is now discarding their dollars, whatever country they're in, and they're getting out of Dodge.
Kellen Ainey (13:48)
Well, of course.
Well, because not only are these commodities, they're also resources, right? They're natural resources for production. They're somewhat competing, but you look at the silver on the electrical side and then oil and the oil and gas industry. ⁓ All right, final question here.
From a broader macro perspective, with rising debt levels, persistent inflation, and geopolitical uncertainty, what advice would you give to someone who has never bought physical gold and silver but is considering it now?
Andrew Sleigh (14:23)
get it done within the next five or six weeks.
Kellen Ainey (14:26)
Really? So you could see a, well, basically another explosion on both gold and silver.
Andrew Sleigh (14:34)
Well, that's coming. ⁓ So we don't know when exactly it is, but ⁓ with the kind of warnings that are being said around the world from banks, you know, in our own country of Canada, we've got the Bank Act of ⁓ Canada Bank Act 21-1. have March 26 of this year, Bill C-15, and embedded within that is the Stablecoin Act for Canada. ⁓
Two days after that ⁓ bill was passed with Royal Assent, Deloitte and Stablecorp announced Canada's first stablecoin. And it's not even a bank. Imagine my shock. ⁓ And within the stablecoin act, it states under the exclusions, banks and foreign banks will generally be excluded. So in the act itself,
Kellen Ainey (15:12)
I saw that.
Hahahaha!
Andrew Sleigh (15:31)
It states what I've been telling people for I don't know how many years that when a digital currency is brought out, banks aren't invited.
Kellen Ainey (15:39)
Well, we
flat out had this conversation on the podcast. Like it's funny because there's certain times where everything comes full circle, where there's things that you mentioned five, six, seven months ago, and we are actually able to update our viewers because you weren't wrong. You were pretty great on the money.
Andrew Sleigh (15:56)
Now I get lucky here and there.
Kellen Ainey (15:58)
That's it. And then one final one. Just we spoke about the physical side of things. Do you feel like for what you just mentioned, the ETFs are a good alternative or are you pushing people fully to physical?
Andrew Sleigh (16:13)
The ETFs are the last place that ever put the money. So like that is not a place of safe haven at all. Not in least. If people want to know an in-depth description why, they're welcome to call me.
Kellen Ainey (16:21)
All right. Well, that's.
That's why I wanted to set that up for you, Andrew. Well, all right. I believe that's all the questions we have here today. Once again, thank you for joining us. It's a little shorter today.
Andrew Sleigh (16:31)
Yeah.
You're welcome. ⁓
to about the ETS for a second. ⁓ I've had clients that have had significant assets in those ⁓ categories and ⁓ they bought them thinking they were going into safe haven assets. And when I explain it to them, all I hear on the other end is dead silence. And then, my gosh, I made a mistake. And once they understand it, they're out.
Kellen Ainey (16:54)
⁓
Yep.
Andrew Sleigh (17:07)
They cash out, they're getting out of Dodge and they're buying the real metal.
Kellen Ainey (17:09)
Well, the other thing,
and again, this is another thing that you've mentioned on this podcast was a lot of them are under the impression that Eric's brought is still invested in a lot of these fonts. He's moved completely out of them. He's moved out of them and has done so for 25 years at this point. It's.
Andrew Sleigh (17:26)
Well,
he sold that company 12 years ago. So I'm assuming that 12 year mark when he left ⁓ ownership and sold it to an American company Sprott wealth management.
Kellen Ainey (17:37)
My apologies,
it was 2011, not 2001.
Andrew Sleigh (17:42)
⁓ and ⁓ so I don't know when he would have given up those assets, but the last time I spoke to him nine months ago, he has he does not hold any of those assets at all period. Physical gold and silver only. then he's got five percent of his wealth or whatever percentage ⁓ in mining stocks, because that's what he likes to play with.
Kellen Ainey (17:57)
Wolof.
Exactly.
No, exactly. But I think it does come from the, least from the investor standpoint, that they are under the impression that someone like Eric Sprott is investing in these funds. And quite frankly, he's just not.
Andrew Sleigh (18:19)
That's all you would believe how many people I talked to that
think he is and and how many people you'll call him and And yeah, I've got all your funds. I've got the uranium and this and that whatever and I say, okay Well, we should talk so Anyway, thank you very much for the for the doing the interview questions today. I appreciate it
Kellen Ainey (18:35)
Yep. Well, then.
Of course, ⁓ as always, please tell our viewers how they can reach out to you.
Andrew Sleigh (18:48)
So thanks, Kellen. If you need to reach me, you can send me an email at deathofthedollaratsprottmoney.com. So deathofthedollaratsprottmoney.com. You can call the toll free number, 1-888-861-0775. It's on our website, any page. My extension is 230.
Kellen Ainey (19:07)
All right. Well, once again, thank you everyone for joining our podcast and we will be back in the following weeks. Cheers, Andrew.
Andrew Sleigh (19:13)
All right. Thank you.
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