Kellen Ainey (00:00)
back to the Ask Andrew podcast everyone. again we're visited by Andrew Sleigh here to answer your questions regarding ⁓ precious metals in the world markets. Thank you once again for joining us Andrew.
Andrew Sleigh Ext 230 (00:10)
Good to be back, Kellen. It's been a while. We've been so busy, we haven't been able to get one of these out for a while, so I'm glad to be back in.
Kellen Ainey (00:17)
Exactly, we've been phone call to phone call, very busy, but busy is a good problem to have, so no complaints on my end for sure.
Now I do have a couple questions to ask you, but before we get started here, Sprott Money did want to make an announcement. ⁓ As the holiday season approaches, we're excited to share our holiday catalog. Now available on our website to browse and shop, check out SprottMoney.ca. It's going to have a multitude of different deals, different products listings, and as well as just gives you a good picture on what exactly we're holding for the holiday season.
Andrew Sleigh Ext 230 (00:51)
Nice.
Kellen Ainey (00:54)
All right, so this is a little bit more of ⁓ a market question style podcast as we did just, Nvidia did just have its earnings report yesterday. So that's gonna be our first question is the AI bubble. There has been a lot of talk about the AI bubble quote unquote in markets recently. However, after the release of a positive Nvidia earnings report, multiple stocks in AI were positively impacted. Do you believe there is a bubble? And if so, when is, what's your,
prediction on if and when it will pop.
Andrew Sleigh Ext 230 (01:27)
Well, I'm not a stock analyst. ⁓ so this is just nothing more than ⁓ my conservative opinion. But ⁓ I would just start by looking at the price earnings ratio of any of these tech stocks. they're so far in the stratosphere that ⁓ that is a bubble. And it's been a bubble well acknowledged for quite some time. When it pops is the million dollar question. If I could answer that exactly.
I'd be at Wall Street and I'd be living on Park Avenue. So, you know, in that camp, I mean, I don't own anything. I won't buy any tech stocks ⁓ and don't have anything of that exposure. For those that are day trading and just like that excitement, you you do it with no more than you can afford to lose. And that's it really. Keep your exposure minimal because there is no...
real valuation on these text docs is ⁓ well blown out of proportion.
Kellen Ainey (02:28)
Okay, so you would say it's good for a day trader really to be holding these stocks. Well, not holding them, but trading these stocks. But you wouldn't suggest anyone to have any, well, vulnerability to them. So not a big portion of a portfolio.
Andrew Sleigh Ext 230 (02:44)
It's time in the market is more than time in the market. So ⁓ day traders are the only ones that are going to probably profit from these trades. Those that are investors that sort of buy stuff and hold for any length of time, the way this market is, ⁓ you may get away with some profits, but you also have a big risk of being slaughtered by it as well.
Kellen Ainey (03:05)
And do you just think that comes down to the earning reports? Do you think that comes down to just the volatility of the stock, the fact that it's not a tangible investment? ⁓ Would you be able to elaborate on that a little bit more?
Andrew Sleigh Ext 230 (03:16)
⁓ Good questions. think all three that you just mentioned, Kellan, volatility is there. ⁓ There is going to be a pump in the market because it's getting on shaky ground now. And so when it starts to hemorrhage, the Fed is going to come in and pump trillions in it to prop it up. the stock market could have a pullback.
that's serious enough that the Fed intervenes and then they do money printing to the trillions to pump it up like 08 and the market could reach all time highs again and further, but it's all an illusion because it's money printing and it's government owned stocks. It's their money.
Kellen Ainey (03:57)
Well, that's
the issue, right? We constantly see markets hitting all time highs, but we also see the purchasing power of the US dollar dropping and gold and silver also hitting very well numbers as well. Well, gold hit all time highs as well. So it does get to that point where are the stocks and gold and silver performing very well or is the purchasing power of, let's call it the entirety of the Westin dollar because I would say the CAD is pretty dependent on the USD as well.
It's would you say it just has to do with the purchasing power of the US dollar?
Andrew Sleigh Ext 230 (04:30)
All right, so it takes more dollars to purchase that stock. So the stock market will go up because the dollar in dollar terms, the dollar's going down. So it takes more to buy GM, Nvidia, whatever. The same is sold, same is true for gold and silver. ⁓ Gold and silver don't go up, the dollar goes down and gold and silver buys whatever it buys. But the main difference is
You know, you can't buy a house or buy groceries with Nvidia stock because you have to exit back to the dollar if you can sell it. know, there will be a time where those are going to be challenges as well. ⁓ And then you've to convert it to paper currency or whatever the digital replica of that's going to be in the near future. And then go buy your whatever. ⁓ Gold and silver are already money and you will be able to use it as
as such. So you'll be able to go buy some food or you'll be able to buy a house for an ounce of gold or two. ⁓ That all is coming down the road. So volatility is there. The price earnings ratio for these stocks is well inflated. ⁓ You have seven stocks, six stocks, whatever it is that's keeping the S &P in positive territory. And if you look at a chart that shows all the stocks that are measured,
the whole thing is So it's only those few stocks that are actually propping it up. And that's all just government money pouring into it. So most of it's an illusion. there was an analyst recently a month ago that did a report on the top 200 investors in the US market and then the next 200, so the top 400 in total of big money investors.
Only four at that time of the 400 were still in the stock market.
Kellen Ainey (06:32)
And do you have any insight on where they actually shifted their money towards?
Andrew Sleigh Ext 230 (06:37)
They don't say, like it's not reported, but I mean, typically these people that are getting out are just going to real physical assets to wait for the storm to go by.
Kellen Ainey (06:48)
Well, it's the safe haven assets, right? It's definitely a smart way to keep your money. Well, and I don't know if this is anything more than a rumor. I even heard the fellow that the big short was based off of, ended up closing his fund as well because he even finds the stock market too volatile right now. It's been... Yeah, I don't want to say it's true on the podcast, if it... Because it was really just a post that I was... ⁓
Andrew Sleigh Ext 230 (07:07)
Yeah, heard that. I think it's true. I heard that as well from a report.
Kellen Ainey (07:14)
scrolling by, but if that has any sort of validity to it, this is the person who predicted the 2008 collapse, right? And even he doesn't even understand what's happening in the market. So how can the average investor,
Andrew Sleigh Ext 230 (07:28)
That's it, you got it.
Kellen Ainey (07:31)
Now, actually speaking more so to the, you did mention the Fed. Our next question is very much around the Fed Reserve as well as the US government. The US government is looking split with regards to the upcoming Fed meeting and interest rate cuts. With Trump borderline demanding them from Powell and the Federal Reserve. Yet the projections are that the rates, that the rate cuts are unlikely. Do you see Powell standing firm and how do you think that impacts the US economy for Q1 of 2026?
Andrew Sleigh Ext 230 (08:01)
Well, it's a good question. I haven't spent much time thinking about the interest rate adjustment, whether Powell will or won't. I haven't seen any statistic on betting on whether it's going to go down or stay the same. So this is a completely uninfluenced answer from my part.
Kellen Ainey (08:21)
So it was, there was a lot of belief that the rates would be cut before, but the current projections are around 30 % in belief of that, of rate cuts.
Andrew Sleigh Ext 230 (08:31)
Well, ⁓ I think it's going to center around how they're trying to time this market collapse. a lot of it is theater, a lot of it is distraction. ⁓ And then on top of that, it's when are they planning on bringing the system down? And that, in my humble opinion, has to do with do we lower interest rates now or do
wait and let things start to break. And the longer they wait, it's doing more damage with interest rates being up. ⁓ You know, that's causing more cracks. So they don't want to jump in early before this dam is ready to break. They want the dam to break because it won't be repairable after that. And then they're going to cut interest rates to zero, you know, very, very quickly. And then it'll be money printing, you know,
20 trillion dollars or some obscene number to try and patch the dam and go from there. So those are all just what I think they're doing, but it's not a qualified statement from me by any means.
Kellen Ainey (09:44)
Of we know you're not a world economist. It's more so just picking your brain, seeing anything that you had to add to the topic at the same time. Now, our final question actually, we only had the three questions today. Amid the growing volatility of the market, more investors are looking to invest in alternative investments such as bullion. Portfolio managers typically suggest 5 % to 10 % of portfolios in bullion for moderate
for moderate allocation and 10 to 20 % for aggressive bullion allocation. With the ever-changing markets and the current volatility, do you still believe that 10 to 20 % is still an aggressive allocation for bullion?
Andrew Sleigh Ext 230 (10:23)
Well, so. ⁓
Kellen Ainey (10:25)
I knew the answer I was going to get from this one, but...
Andrew Sleigh Ext 230 (10:31)
The only reason that they've even jumped up a little bit, mean, Morgan Stanley came out not that long ago and raised it to 20%. And that's from nothing ⁓ is because gold and silver have done so well the last two years that these so-called financial institutions have ⁓ ignored and not recommended any of this stuff to their clients. And their clients are like,
you know, probably given them so much heat that, you know, what's going on. Gold has done a hundred percent last two years and you won't even acknowledge that I should have any. So there's probably a lot of pushback, all these various places. Now, one reason that they haven't acknowledged it too much is that they're not allowed to sell it. So it's sending money out the door for one. That's just one reason. Second reason, which is probably more important is that the financial institution as a whole, as in encompassing all of it,
They poo poo on gold and silver because the globalist and governments can't control people that have gold and silver, but they can control people that have the ⁓ fiat currency. And what I mean by that is they're printing it so that it becomes zero. You know, they can print as much as they want to, but you can't print gold and silver. So if you and I have our wealth saved in silver and gold, and the currency continues to devalue to point of zero, we haven't lost a nickel.
Kellen Ainey (11:35)
Exactly.
Andrew Sleigh Ext 230 (11:56)
Okay. But everyone else's in Fiat dollars loses all of their savings. And that's, that's a historical evidence that's over and over and over again. So ⁓ as far as going back to the root of the question, ⁓
Kellen Ainey (12:00)
Exactly.
Andrew Sleigh Ext 230 (12:12)
Essentially, it's the non-informed that are bending the knee of allocating and admitting that there should be some of that. And what I mean by that is if you ask the average financial person, not even the average, ⁓ you can go up and down ⁓ any level, how do I protect my portfolio against a dollar collapse, currency collapse, no matter what country you're in?
And they don't even know how to deal with that question.
Kellen Ainey (12:43)
Well, because there's no real benefit for them. I even had a friend who they had all of their money in mutual funds, believe it or not. And when I heard that I almost got vitriolic. It was, it's, I think it's grown something like 10 to 12 % in the past three to four years. So, and I did push them more so towards the Sprott funds just because they wanted to keep the liquidity in their account. They didn't, they're not so far where they
let's just say, are starting to lose belief in the dollar, but it was a slight nudge that I was able to give them in the right direction. But even then it was just comparing the growth in silver to gold to them, comparing it to the mutual fund, and they were beside themselves that they had never been offered any type of precious metals or bullion. And it does come down to the fact that a ⁓ lot of these banks, a lot of these portfolio managers can't make much money on
Andrew Sleigh Ext 230 (13:31)
Most
Kellen Ainey (13:39)
Now of course there's going to be banks that have gotten involved in that side of the business, but even then it's minimal.
Andrew Sleigh Ext 230 (13:47)
Well, the whole thing is handicapped by design. So, you you're well aware that I come from that industry. So I spent 35 years as a financial planner doing mutual funds. ⁓ So, by design, let's take banks, for example, you go in and do a questionnaire for your know your client, which is all required. And you answer these questions. The salesperson across the desk doesn't have to know a darn thing. Okay.
You answer all the questions and when you get down to it, you get a number, a point value, and the point value is in a range. And based on the point value, you're a purple investor, a blue investor, a green, whatever color. And then the person across the deck hands you a folder that says, here's the funds that we have to offer. And they're all color coded. And if you're a blue investor, you can only pick the blue highlighted investment funds.
And that's it. It doesn't matter if you said, well, I like this one over here. Well, no, sorry, sir. That's green. You can't have that. Your risk profile says you're blue.
Kellen Ainey (14:45)
That's why so.
And that's why self-directed
investing has just exploded at the same time.
Andrew Sleigh Ext 230 (14:54)
Yeah, well, that I have no idea about if it has or hasn't, but it wouldn't surprise me. ⁓ then you go to the mutual fund planners, like the world I come from, and then you go up the chain to stock brokerage houses. ⁓ on top of this ⁓ blue, purple, whatever, the industry has labeled gold and silver as a highly volatile ⁓ investment class. I'm not kidding.
And where I come from, you had to have a risk profile of extreme risk tolerance to own a precious metals mutual fund. So that automatically negates most of your clients out the window right there. And so they're having to do this for compliance and all about compliance forces people to, you know, use nothing but ⁓ conservative funds.
you know, traditionally. ⁓ And then you get up to the stockbroker end. Again, the whole industry wants to sell a product that has an MER or some kind of attachment to it that they can earn residual income. And because gold and silver are not regulated, they're not allowed to sell physical metal. None of them. And so they either send it out the door, which they don't want to do.
Um, or they come up with, and that's one of the reasons why those ETF gold ETFs and silver ETFs were invented decades ago was to sort of, uh, have that niche product available that these mutual fund dealers would have the ability to put their clients in metal, which is nothing more than a paper trade for all intents purposes. Um, and for the last few decades, it worked okay. Um, and, uh, but now we're getting to the point where
We're getting into some very serious choppy water where we're going to have currency issues. We're going have banking issues. And if you don't have physical, you, I'm afraid, don't have anything. And that's what's going to come down to when this all hits the fan. So it's bad, really bad.
Kellen Ainey (17:13)
Well, was,
yeah. And like you said, it was even why the funds were created all that time ago, because it gave the average investor the exposure to precious metals. And then even that's Sprott Money was created was to give, again, the average investor the exposure to physical precious metals and not turning you away because you aren't the most, you don't have a 1500 credit store, which doesn't exist. It's...
It's like, it's completely understandable too, but they really just wanted to keep people in the system.
Andrew Sleigh Ext 230 (17:46)
That's it. It's all about keeping people in the system. they look, if the viewers look at history on some stuff, like look at Venezuela, Ireland, Turkey, ⁓ Iran.
Germany in 1920, Weimar Republic. The list goes on. Mexico is an interesting case where for 400 years they had no inflation.
Okay. And they have a world record. And ever since the U S bullied them into the swift system, that's when they became impoverished. If I have my history, correct. But they used to trade for 400 years. Silver was used as money in that culture. It's, it's in their DNA and they had no inflation for 400 years. They were considered a wealthy country. And, and then after
United States came to power and whatever exact shenanigans were occurred, but they were brought into a dollar system. That's the beginning of the end. It's interesting. ⁓ John Little, who does that Silver Academy publication and articles a couple of years ago, he did one that showed these before and after pictures ⁓ of countries that were free of a central bank.
And then the central bank got in the country and then whatever, 30 years later, here's the country again. And these central banks are designed to in debt everybody and take the wealth out of a nation and then leave. this is what's going on. it's, know, we're look what's going on with Canada and the United States. mean, the debt is beyond ⁓ any repayment.
Kellen Ainey (19:42)
Well, we've mentioned Canada being ⁓ pretty much an insolvent country already. It is official that Canada Post is fully insolvent. It's been, it's been wrecked. And let's be honest, every Canadian knew that it's not groundbreaking news for anyone, but it's just, we're starting to see more and more of these public systems fall by the wayside. They're mismanaged overpayments. just, we are starting.
Andrew Sleigh Ext 230 (19:52)
Heh, heh.
Kellen Ainey (20:12)
Sorry.
Well, that fits pretty much. Well, we can move on to Air Canada if you would like. And these are actually just crown corporations. We're not even getting into government yet. But the point stands nonetheless.
Andrew Sleigh Ext 230 (20:29)
That's right, yeah.
So there's, since we only have three questions today, I wanted to freelance a little bit if we have the time. We got eight minutes, I guess, before we're finished. Some of the things that I've been watching, I've been on my mind that have been concerning to me is one, with the budget being passed in Canada, standing, everyone clapping to our enslavement, so to speak.
Kellen Ainey (20:39)
course.
Andrew Sleigh Ext 230 (21:00)
Inside the budget, is the passing of those that are on welfare and are receiving old age security will have to have digital ID.
And nothing else has popped out of the budget yet, but that's the beginning of this digital system that's coming to Canada. And now that this has passed, the government is going to ramp this up quickly. so ⁓ we also can refer to the Canada Bank Act. And so where I'm going with all this ⁓ will be clear in a second. But Canada Bank Act. ⁓
is ⁓ section 21-1. So anyone wants to Google Canada Bank Act 21-1, it states that there'll be no domestic or foreign banks allowed to operate in Canada by June 30th, 2026. So that's seven months from now. So what has to happen if they're going to stay on schedule with this ⁓ and the banks will no longer be in operation as we know it today,
⁓ in June, unless they delayed another year because it was supposed to be June 30th last year. ⁓ Then we've got digital ID coming in. That's 25 nations around the world. The United States is already ⁓ from what I've been told from Wall Street, 93 % of America is signed up to digital ID in the States under the Real ID program. So that's full blown because in August they were
Kellen Ainey (22:31)
That makes sense.
Andrew Sleigh Ext 230 (22:35)
They were told that you're not allowed to fly unless you have the real ID. So then all of sudden everyone's lined up. ⁓
Kellen Ainey (22:42)
Well think about all their social
programs as well with EBT, all of that. If you don't have any digital ID, you're not going to be accessing any, well, you're not going be accessing any government funds.
Andrew Sleigh Ext 230 (22:51)
That's right.
That's how they're gonna put a lot of pressure on this. ⁓ You have, as of two years ago, 220 cities that have signed up for universal basic income in the states. And you can see now that New York has flipped over to a ⁓ communist, ⁓ quite crazy mayor. ⁓ You're gonna see the New York city is gonna descend into just total chaos from all this stuff.
⁓ They say the bus tickets and the moving companies are busy getting people out of the state or that city. The money's leaving.
Kellen Ainey (23:28)
Well,
it's also just the wealth migration, not even people. It's just people are going to be moving their money out of the state. And I know California is not exactly a safe zone for that, a safe haven. But at the end of the day, they do have a lot of the tech money as well. It's a top five economy in the world. New York is not... New York's opened itself up to a lot of wealth migration, and in my opinion, specifically to Texas and California.
Now again, there's other players on the table. We could go offshore as well. We could even go down to, ⁓ well, where we actually have a storage location down in the Cayman Islands, as that's been a big wealth safe haven. So a lot of it is just coming down to the distrust and mismanagement of other people's money, other people being the taxpayer.
Andrew Sleigh Ext 230 (24:16)
So what I'm saying about next June and we have the digital ID and the digital currency will be rolling out somewhere after the rollout of the digital ID, my belief is that somewhere between those two events, you're going to see bank bail-ins and the great taking event occur. So this potential has one to seven months between now and next June.
that some of this stuff could ⁓ be happening. Again, we're not in charge of Monopoly board. ⁓ I was ⁓ suggesting clients they should have their assets in safe harbors before we got to October because the European Union announced that they were going to do a digital currency effective for October. And so therefore all these other things had to happen prior to that. ⁓ so they were late getting to the game and then we haven't heard a date.
exactly confirmed when they are going to implement it. Maybe they just set October so that to be late comers and maybe it's effective for January or whatever month, but we don't know. the, the, the end of the story, the moral of the story about this is what I suggest to people is that since we don't know what is occurring and when you need to look at your portfolio of what is it you want to keep and what is it you're willing to lose.
And everything that's in the monetary system, when this all breaks, will stay in the monetary system and will be taken and or destroyed because of the bank bail-ins and whatever will occur. ⁓ You want to turn around and get as much as you can handle put into physical gold and silver or other physical assets that give you options and retain as much of your wealth as possible. And let's not forget, you know, Eric Sprott, who's
You know our our founder, you know, he has a lot of money in mining stocks But that still represents five percent of his holdings And the other 95 is physical gold and silver nothing else You know other than he has a place to live and all that stuff, but I mean beyond that so he doesn't hold the ETF He doesn't hold any of that other nonsense
He has physical and he's just playing with the 5 % of his assets in the mining stocks because that's what he enjoys doing.
Kellen Ainey (26:48)
Well, he
plays very well as well, also.
Andrew Sleigh Ext 230 (26:51)
Yeah, that's right.
you know, people that don't think this is going to happen or they think it's six months away, the danger of that is you'll procrastinate. ⁓ If the whole system was to shut down on Monday and you can't get anything out of the system, if you're looking at losses you don't want to have, then I just suggest that you treat it as a
a suggestion to make some adjustments and restructure yourself before anything starts to happen. And, you know, as some of your, viewers know or don't know, you know, I come from that industry 10 years ago, I realized where this was all headed. I destroyed my own business. I'm now working for somebody else here. I don't hold a single thing in the Fiat financial system. And I don't want saying that everyone has to do that, but
Day traders are a different story, but those are just, you know, investors, they buy something and hold it for a long term. That's going to be a disaster in my opinion. I think you're going to set yourself up for major losses, which I hope that you don't have and, and restructure yourself before anything else breaks. Because once it does start to break, you won't be able to change. And that's just my, my, my warning and, and, and hope that people will take that seriously.
Kellen Ainey (28:17)
of course, and it comes from a reputable source to say the least.
Andrew Sleigh Ext 230 (28:22)
Thank you.
Kellen Ainey (28:24)
Well, that is all the time we have today, Andrew. I do have one last announcement from our marketing team here. And after that, I think we can just release your information, such as ways to contact you, if anyone wants to get a hold of you. But before we do so, we just want to announce on Monday, November 24th, we have a very special offer for a limited number of customers. Stay updated by following us on social media and don't forget to sign up for our newsletter.
All the details you need can be found in the description of this video. If you have any questions or comments, please feel free to leave them below. We read everything and truly appreciate your feedback. Now, Andrew, how can our client base reach you specifically?
Andrew Sleigh Ext 230 (29:05)
Thank you, Kellen. So anyone wants to reach out and ask me further questions and have a further debate of something, you can call the toll free number that's on our website, 888-861-0775, my extension 230. You can email me at deathofthedollar@sprottmoney.com.
Kellen Ainey (29:26)
Beautiful. Well, Andrew, once again, thank you for your time. ⁓ I look forward to our next podcast.
Andrew Sleigh Ext 230 (29:33)
Yeah, me too. Thank you so much, Kellen.
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