The Gold's Secret & Silver's Next Move

Kellen Ainey (00:03)
Hi everyone and welcome back to the Ask Andrew podcast. Once again, we're joined by Andrew Slay. Thanks again for joining us, Andrew.

Andrew Sleigh (00:11)
Good day, Kellen. Thanks for having me back.

Kellen Ainey (00:14)
So as always, we're going to read out some questions from our viewers and ask for your expertise on each of the different economic factors and how they can affect both gold and silver.

Andrew Sleigh (00:25)
Very far away.

Kellen Ainey (00:27)
Alright, so question one. In Q2 2025, central banks purchased 166 tons of gold, a 41 % increase over the usual quarterly average. What does this surge reveal about the shifting dynamics of the global monetary system?

Andrew Sleigh (00:47)
I haven't heard a question like that for a while. So those details reveal to me that the central banks are getting out of their dollars. They're getting rid of their currencies. They're getting ready for backing or the transition of their wealth to whatever the next system will be. So and that may be different timelines. So I guess to clarify, in the short term, fiat currencies are failing all around the world.

And if you're central bank, you know this, you've designed it, you're the one that's creating the problem. So they're getting rid of their dollars, whatever country they're in, to buy gold ⁓ because it absorbs more dollars than silver does, so they have to use gold. ⁓ And the currencies will continue to fail until the currency doesn't buy any gold or nothing. It doesn't pay anything. then...

If they're going to move this into a central bank digital currency, let's say ⁓ in the coming months, ⁓ at some point they can use it either to back a digital currency, back a future currency down the road, or just use it as a store of value for when they need to move it back into another type of asset. So it's the ultimate storage of value to get rid of currency.

Kellen Ainey (02:10)
Alright, so you would say that the reason that central banks are purchasing more so gold than silver is due to the fact that it just absorbs more dollars or do you think that it provides more of a strategic advantage with regards to holding the wealth as well?

Andrew Sleigh (02:27)
I'd say both on that, Kellen. So one, you know, it's, it's obviously like 90 to one ratio, give or take. So you've got, uh, gold absorbs a lot more currency than silver does at the current pricing. So they have to use, there's, literally not enough silver around the planet for, for the, um, banks to divide, to store value. They are buying gold. Pardon me. They are buying a lot of silver. You know, JP Morgan is hoarding.

Huge amount and forget the exact number but in the hundred and fifty million ounce range. Maybe it's much more than that I don't know And so they are doing that but just gold gets the attention because it's the bigger dollars, you know if if a bank wants to get rid of tens of billions of dollars and Put it into metal. There's just not enough silver to go around at all Not even close, but they can get their hands on, you know, ten billion dollars worth of gold if they have to and and store it

And then that's going to be a strategic advantage because when this monetary system falls apart, they have lost any of their wealth. I guess this would be a key ⁓ thing for people to pay attention to. If a bank is buying gold and silver, but gold gets the headlines to tuck away all their currency into precious metals, when the currency is collapsed, the bank hasn't lost any of its wealth that's in the vault.

Where's the lesson in that for you and I?

Okay, that's what people should be doing because the currencies will fail and you won't lose your wealth because you're holding gold and silver.

Kellen Ainey (04:14)
Now when you, so that would be the main advantage of a, let's say alternative currency. Where would you say that gold has, and silver in turn, have the big advantage over something digital like crypto coins, such as Bitcoin, Ethereum, so on and so forth.

Andrew Sleigh (04:32)
Well, the number one advantage is that it's a physical asset that just can't disappear and doesn't have any counterparty risk. You know, I'm still waiting for somebody to put a crypto or Bitcoin in my hand to show me what it looks like.

Like I have not found anybody that's told me what it is yet. So a crypto, you know, and I know there's, you know, there's the crypto fiends out there that like that product and that's more than fine, but it is something that has a counterparty risk. That's not really that much different in reality than ⁓ your digits. When you log on to your bank account, you see digits on the screen, right?

You log into ⁓ your coinbase or whatever exchange, your hard wallet, which is what they'll come back with arguments on. Well, you lose the hard wallet, you're completely screwed. You forget the password of your hard wallet, you've got nothing. There's no such thing as forgetting the password to open up your drawer and pull out your silver. ⁓ If there's no, ⁓ just ask the people that lost 120 million that was on the laptop from the guy that died.

Kellen Ainey (05:36)
That is a fair point,

So in a sense, would you say that ⁓ crypto is more like something like a gold or silver ETF?

Andrew Sleigh (05:44)
Like how do you lose? Sorry.

I guess that's a fair analogy. I was going to say I think it's almost worse. ⁓

You know, it's a very volatile object that, you know, there are people out there on the web, some pretty genius people out there like David Bateman, I'll quote, you know, that cryptos are a scion. And so, you know, the number one thing, he's a billionaire and the number one thing he's buying is gold and silver. he. Okay.

Kellen Ainey (06:28)
That's a good point, right? So, and we even see it, or if he's not buying

physical gold and silver, he's buying ⁓ the junior mining stocks as well. we...

Andrew Sleigh (06:37)
No,

he's not even buying that. He's buying physical gold and silver. So, know, his statement, his statement, I quote, you know, ⁓ crypto real estate stocks and bonds will lose significantly in the next market crash. And it's basically, you know, compared to precious metals. And you go back and look at the lesson from the Great Depression and other similar circumstances around the last

Kellen Ainey (06:41)
Fair enough.

Andrew Sleigh (07:05)
around the world in the last hundred and whatever years, every time we've been into this type of Great Depression, currency problems, banking problems, all this kind of shenanigans that's going on around the world, the history dictates and has written the people that emerged over these troubling times back in the Great Depression, Israel, 1985, Cyprus, just a decade or two ago, Turkey, modern day, Greece,

Ireland, all these places that lost everything in their fiat-based currencies, whether it be by banks shutting down or otherwise, those that had precious metals lost nothing.

So like if people don't want to listen to and go back and look at history, they're ignoring what's coming on. So I would not be just turning a blind eye to any of stuff that's going on.

Kellen Ainey (08:00)
Bye.

Well, you're not wrong, right? History can usually dictate the future, or at least not dictate it, but it can give you a good vision of the future, you could say.

Andrew Sleigh (08:12)
Well, it resembles the future of

uncanny resemblance, that's for sure.

Kellen Ainey (08:17)
That is a good way to put it. So why don't we move on to something very, it's actually very recent. As Jerome Powell delivers his speech at the Jackson Hole Economic Policy Symposium, how might silver respond in the markets and what factors could influence its next move?

Andrew Sleigh (08:38)
Repeat that one more time,

Kellen Ainey (08:39)
Of course. As Jerome Powell delivers his speech at the Jackson Hole Economic Policy Symposium, how might silver respond in the markets and what factors could influence its next move?

Andrew Sleigh (08:52)
Well, there's a lot of talk on whether Jerome Powell will cut interest rates or not. So if he cuts rates, gold and silver are going to go up dramatically. If he doesn't cut rates, ⁓ I think they'll go up less dramatically. ⁓ So the market is starting to figure out that this is not, the Fed is no longer in control of the market collapse. They're just pumping money like crazy into this to prop it up. ⁓

And money printing alone is inflationary and pushes gold and silver up. If they cut interest rates, that means they're money printing even more. And that's still going to have the effect of ⁓ pushing silver and gold up. I saw an article the other day that I didn't really listen to yet, but it was talking about ⁓ something along the lines of the the ⁓

The world elite money out there are looking to corner the silver and gold market.

Kellen Ainey (10:00)
Now when you say foreigner,

can you elaborate on that a little bit?

Andrew Sleigh (10:04)
Well, I'm just assuming from the title that ⁓ they're looking to try and pour enough money into the market to get as much gold and silver as they can. That's generally what a corner in the market means is that you're trying to get the controlling interest of the said metal. And of course, the Hunt Brothers did it back in, I'm not even sure the year now, I forget. I've heard it, but I just can't remember what it is. But back in the 80s,

And because they weren't the established club, you know, the US government punished him and told them and accused him of hoarding and this and all this nonsense because they had amassed 150 million ounces of silver and it was threatening the market. Well, JP Morgan has that now, but they're okay. ⁓

Kellen Ainey (10:54)
And let's just say they go ahead and succeed in cornering the market. How would you see that impact the average silver investor, someone akin to yourself and I?

Andrew Sleigh (11:10)
Well, that's an excellent question, Kellan. So ⁓ in dollar terms, it's really hard to say. We may see movement. We may not see any movement because if this, if what I think is going to happen in the next couple of months pans out, you know, there's going to be a bank holiday and ⁓ if the bank holiday happens and people are trying to corner the market, there's no trading going on. So bank holidays mean that, you know,

literally the banks aren't open for a period of time. And so there's no money flowing one way or the other. So how does the Comax and stocks and bonds and mutual funds trade and sell? They don't. Nobody can buy and sell anything. ⁓ So what does that effect have on ⁓ silver and gold if there's nothing trading? We're going to find out. But I'm not worried about that in the least because at the end of a day. We those that hold the metal actually are holding real wealth. That's ⁓ doesn't go anywhere. It's in your hand. You know, it's it's in your hand. And, you know, those that have, you know, silver and gold ⁓ have a tangible in their in their physical possession where stuff that's at the bank and at stocks and bonds, that's out somewhere else that somebody else has control over.

And if there is a collapse of that monetary system in that period of time, ⁓ in dollar terms, it's hard to say what silver and gold will do. But in purchasing terms, there's going to be this short transition where people are going to accept cash from you and I to buy whatever. And then as that's extinguished, silver and gold purchasing power will go through the roof. And that's really what

Everyone that's stacking is waiting for, and this is what has happened in history, like the Great Depression, all these countries I mentioned, the system comes down, everybody's broke, all these other assets out there fall dramatically in value against gold and silver. And you buy houses and property for one or two ounces of gold, 60 ounces of silver, whatever, and you mass assets.

Andrew Sleigh (13:34)
So it's a long answer to your question, so I'm sorry.

Kellen Ainey (13:37)
No, no, you don't need to apologize whatsoever. I, so just to kind of summarize a little bit, it's not so much that gold and silver are going to be exploding in value, but basically the value of everything else is kind of going to begin to crumble. Is that a fair summary?

Andrew Sleigh (13:53)
Yeah, but I just don't know when the parallels will be. So like what happens with asset values and the price of gold and silver ⁓ when they start to do this. So everyone likes to measure their wealth in dollars because that's what we've always lived with, whether it Canadian, American, whatever. And that's how we that's our yardstick for our own wealth. You you got one hundred dollars in the bank today and your investment a year from now is now 200 bucks and you're gaining ground. You're growing some wealth. ⁓

So we'd like to think about, you know, gold and silver, doubling, tripling, quadrupling and price. And we think we're doing well, but it's a measure of how many Canadian dollars it takes to buy the same ounce. the Canadian dollars are decreasing and we'll start to go down, down, down. It's a hard one for a lot of people to wrap their heads around in the early stages. Now, how long our current system stays intact that we get that fun ride where

All of a sudden, you know, silver is now $100 an ounce, $200 an ounce, and we have that Yahoo ride. I don't know how long that will last before it's literally like the bank shut down and the currency completely crumbles. Because if we go back to our favorite test subject, the Venezuelans, know, 100 million this year, this month for an ounce of silver and next month it's 200 million. So what?

So the currency means nothing anymore.

Kellen Ainey (15:22)
Yeah, but yeah, at that point, it's kind of almost

like you're making up numbers, right? It's the numbers don't really mean anything.

Andrew Sleigh (15:28)
That's right. And literally to your point, the numbers right now literally don't mean anything, but nobody understands that yet because nobody completely realizes that the dollars are actually worth nothing, but nobody accepts that yet. Cause it's nothing more than a piece of paper and ink.

Kellen Ainey (15:47)
Well, it's

even funny. had a conversation with a client and he was talking about how gold, I believe it was gold. is a conversation that happened a while ago, but in 2024 gold had raised 20 % in value, right? And I corrected him and said, no, it's actually raised 30 % in value. where we misunderstood each other is I was actually talking about the Canadian dollar and he was talking about the US dollar.

Kellen Ainey (16:16)
So realistically, it's just that the Canadian

dollar has lost a little bit of value in the 2024 year. And gold was the hedge to kind of prove that between the two separate currencies, to your point.

Andrew Sleigh (16:25)
Yep. That's an excellent example because why is gold priced differently in our two countries?

Kellen Ainey (16:36)
Exactly. And you can even go on to, you can go

onto our website, you can go for the 2024 block and it'll show you the two percentiles. let's, so.

Andrew Sleigh (16:44)
Oh, yeah. OK. You know, and you go to

go to Venezuela and it's like, you know, what's the price of an ounce of gold down there? I mean, you're talking about.

Kellen Ainey (16:50)
Exactly. It's

up millions of percentiles, right? So our final question here, what impact could Trump's assurance that gold won't face tariffs, combined with his wartime diplomacy with Putin, have on gold's safe haven appeal?

Andrew Sleigh (17:11)

Well, I don't take anything that is being said on the political theater for much of a truth. It's always about theater and distraction and look over here and not over there. So I don't pay a lot of attention to what Trump or any other political leader says, because it's usually theater and distraction to get us to look over there instead of looking and keeping our eye on the ball.

So good question. I don't know what that's going to have. do know no matter what they say, they're going to continue to ⁓ print. They're going to continue to vastly expand the dollar ⁓ no matter what country you're in. And that will be proven by expansion of conflict, is proof of ⁓ we're getting nearer to the end of this system because they use war as a

as the ultimate distraction and they blame more on the collapse of a financial system. ⁓

I think short-term, nobody should be looking at short-term effects of pricing of gold or silver up or down as a result of whatever political party says anything to me is meaningless. You need to look at the medium to longer term in that ⁓ the best thing you can do for yourselves is actually ⁓ decide how much of your portfolio you want to get, you know, in safe harbor into metals and then do that and don't worry about what the short-term

Kellen Ainey (18:45)
Yeah.

Andrew Sleigh (18:52)
talking heads are saying, because ⁓ before you know it, you're listening to them and you're delaying ⁓ your procedures of whatever you want to do. Next thing you know, there's a bank bail in America or Canada, and now you've done nothing. And now you're really in deep trouble. So don't pay attention to the mainstream and what the talking heads... Pay attention to what's inside your own wheelhouse. Make decisions.

and then follow through and get them done right away. Don't try and tie in the market. It's pointless. Who cares if gold is up 20 bucks or down 20 bucks today or tomorrow or next day or $50. None of that really matters when you're buying because it's more important to get it bought and get it in hand or in storage or whatever and get yourself completed in what you want to do and get out of the way and then watch the show. Grab the popcorn and come up in the bleachers and join us.

Kellen Ainey (19:48)
Well, I think that's kind of, it highlights what we've been speaking about with the entirety of the fiat currency as well, right? Where it's sure you may lose a little bit of value with time in the market. You may gain a little bit of value with time in the market, but there is a level of inevitability where it's just coming down to the de-dollarization.

And regardless, and silver are going to be good options to put your money into. So I would have to agree, especially with the knee jerk reactions to what politicians to what politicians come out and say, even though the average investor may react and that does impact the markets, right?

But I would have to say it's, would agree there where you really just want to look at what is happening in the world and then try and like you said, adjust to what's one to what's within your own wheelhouse and adjust and invest in CordingWay.

Andrew Sleigh (20:42)
Pay all the attention to that. People are completely lost following the talking heads. mean, it's a two-party, three-party distraction on purpose, whether it's in Canada or the United States. And it's all to get you focused on that in the circus and the clowns are in charge. And that's the worst thing you could be doing is all that. ⁓ I also wanted to point out with regards to the de-dollarization, that point you made, ⁓

If things weren't speeding up here, why is it that the United States just passed the ⁓ Genius Act a month ago?

And the Genius Act is talking about awarding ⁓ the four or five ⁓ usual criminal banks the ability to buy a bond from the United States government and then issue stable coins to the people of America. And that's now a private digital currency. It's not running yet, but it's all there. It's all in place. So this is now a private digital currency.

issued by the four or five banks that are going to be allowed to participate. No government oversight at all. This is worse than the CBDC and it was a complete bait and switch. if the US wasn't planning on getting rid of using cash and going to a digital dollar, seems to be timing wise, seems to be lining up with the October deadline for Europe. Why did they do it a month ago?

Kellen Ainey (22:19)
you

Andrew Sleigh (22:20)
If you ignore those things, you do so at your own peril. And so if they turn around and they flip the switch on this thing and they join Europe, because all this has to be done at same time. So whatever the date is, I'm trying to find an exact date on when Europe is going to flip it. All I've ever heard was October deadline, but that could be the fifth or the 10th or whatever. ⁓ so if that all flips for October based on what they're you ⁓ know, and some people are just watching

whatever Trump says and whatever that like they're completely Trump derangement syndrome. They're missing the whole point. You know, forget about what he says or doesn't say. It doesn't matter. Do your get your financial house in order and don't pay attention to whatever the talking heads talk say in politics. It means nothing.

Kellen Ainey (23:09)
Well, I couldn't agree more with you there, Andrew. And I think that's the perfect way that we can wrap this up. So once again, thank you very much for joining us. Our viewers asked some very good questions today. I actually can't, I couldn't have come up with any better ones myself.

Andrew Sleigh (23:28)
Yeah, no, they were good. Thank you very much for asking them and thanks for having me back and

Kellen Ainey (23:31)
And for

any viewer that's trying to get in contact with you, how would they do so?

Andrew Sleigh (23:38)
So they can call the office, 1-888-861-0775. My extension is 2.30. You can send me an email at deathofthedollaratsprottmoney.com. That's deathofthedollaratsprottmoney.com. And anyone needs to have more clarification or ask me some questions, they're free to reach out.

Kellen Ainey (24:01)
Perfect. Once again, thank you very much for joining us, Andrew.

Andrew Sleigh (24:06)
Good. Thank you, Bye now.