Next Gold and Silver Surge

Kellen Ainey (00:00)
Hi there, everyone, and welcome back to the Ask Andrew podcast. Andrew, once again, thank you for joining us.

Andrew Sleigh (00:06)
Good to be back, Kellen. Thank you.

Kellen Ainey (00:08)
Alright, so we do have a few questions here. However, prior to the questions, we do want to announce that we currently have a ongoing partnership with the Scottsdale Mint for a limited time exclusivity deal with the Scottsdale Silver Stacker coins. Andrew, would you be able to show our viewers the coins that Scottsdale so kindly provided for us?

Andrew Sleigh (00:30)
So these are these really

intrigued me when they when I heard about them. I bought some and they're they're convex and whatever the convex and ovex, I I can't remember what the other term is. so the the maple leaf is raised and they fit in with each other in the design of the maple leaf. It's not a just a ring that locks the two of them in. And so here's here's the back side, which is convex.

and then the front side, you know, locks into the bottom so they would go together in this kind of fashion, maple leaf in the same pattern. So they they lock together and don't move off each other. Anyway, very striking coin. I couldn't imagine how nice it would be until I actually got some and I'm gonna plan to pick up some more. So good good deal on Scottsdale and well designed, beautiful coin.

Kellen Ainey (01:28)
Yeah, it's definitely quite the technology and the mintage there. Alright, so it looks like we have more than a few questions today, very much as you can imagine, revol revolving around Kevin Walsh. So why don't we jump right in?

Andrew Sleigh (01:43)
Sure, go ahead.

Kellen Ainey (01:44)
If Kevin Warsh brings a more disciplined and hawkish approach to monetary policy, does that mark the end of the precious metals bull market, or simply the beginning of its next phase?

Andrew Sleigh (01:57)
I think it's just gonna be the beginning. So he's gonna have to raise again. And so you and I talked about this in our last interview, and I said he's gonna have to follow the yield curve, the two-year bond yield, and likely it's gonna go up. And there you go, he went up twenty-five basis points. So they're likely gonna do it again, whenever their next meeting is, October, November, do another twenty-five basis points hike. And

You see how much gold and silver recovered after the day of the hike. So they're up in the morning, they were down in the afternoon, and then next two days, Thursday, Friday, gold and silver were ups quite strong. And that surprised everybody. I really expected it was going to be lower for a couple days and it did exactly the opposite. So I think we're getting down to that wire where gold has figured out that that

They're losing control of the system. And so gold and silver have been sort of in a fairly steady pattern so far. And when they put their next rate hike in, it may have a slight effect again, but be very temporary, just like the last time. And then we're just waiting for the market to start to fall over, and then the Kevin Walsh will go to zero percent interest rates.

Whenever that is. And when he does, that's when gold and silver will explode because they're gonna be pumping tens of trillions of dollars into the market to pump it up for one more time.

Kellen Ainey (03:34)
Perfect, very concise. Gold sold off on the nomination news, but are investors focusing too much on one Fed chair and not enough on structural issues like debt, deficits, and currency debasement? And if so, why?

Andrew Sleigh (03:53)
Well, I I completely agree with that. I'm not sure about how to answer the why, but you know, they I guess they gear the system that we all should be paying attention to what the Fed does. You know, that's we've been brainwashed in the same we all wait and hear what the Fed's gonna be doing and the Fed is there to to debase the currency and cause all these more extreme distortions. So I don't know why anyone wants to listen to the Fed. We should actually end the Fed.

And we shouldn't have central banks in our countries. That's what's causing the problems. But regardless of that, yes, fundamentally we should be paying attention to the debasements, the debts, all of that is gonna cause the currencies to collapse. And it's a slowly slow process until it gets to some critical mass where it then all of a sudden pops, like a balloon, right? You can blow it up forever and it keeps stretching and stretching and it goes inch by inch by inch.

And then suddenly it reaches its point where it can't handle any more pressure and it pops. And that's exactly what's happening in the financial markets. Is that this is being distorted and stretched beyond all measure. And at some point, they won't be able to contain this anymore. And it's gonna pop. And when it does, you better be already in metals. If you're not, you likely aren't gonna get in.

Kellen Ainey (05:13)
Do you have any certain perceived X factors on what could actually cause the bubble to pop?

Andrew Sleigh (05:21)
I think it's the well, I'd say it's an amateur answer on my part, because that's probably macroeconomics above my understanding. But A it's it's the debt creation going ballistic with every government, which is probably one of the main fuels. And and that's I guess that's really what's fueling all of this is money creation. At at its core

route, inflation is the exponential expansion of the monetary supply. So that's debt. The dollar, the paper dollar, no matter what country you're in, is nothing more than an instrument of debt. There is it's not money. It is nothing more than debt. It's a credit.

What finally breaks it? well I think the Fed raising rates is trying to encourage at some point the market to roll over and then that's when they'll pull all their their sleeves up and and and bring the ACEs to bear and and punt print the money like crazy and that will end the system. So I I'm not sure how else the answer to the question, to be honest.

Kellen Ainey (06:32)
So for someone with a ten to twenty year retirement horizon, does a short term reaction to Kevin Walsh's appointment change the rationale for owning physical precious metals at all?

Andrew Sleigh (06:44)
No. It doesn't matter what the timeline horizon of somebody is. They're thinking about something that could be fifty years away. So why would I want to own metal now versus I'll just own metal later? The the point of owning metal now is that that means somebody that's got a 50 year horizon, 20 year, 10 year horizon, is in fiat dollars, whatever country they're in. Let's say let's use your example, Kellen. You've got you're near retirement and you've got, you know, a million dollars of funds per stacked away in in in stocks, mutual funds, bonds, the the normal stuff that people have. And you're worried about, things are getting kind of frothy, but my timeline horizon for retirement's like 30, 40 years from now. I don't probably need I can handle some risk right now and I can recover a little later. Well, the kind of risk that we're talking about is a monetary debasement that the currency loses all value. Excuse me. And

So when that happens, your million dollar portfolio results to be going to zero. How do you recover from that and start all over again?

Kellen Ainey (07:57)
Well realistically there is no

Andrew Sleigh (08:00)
Yeah. So I would say that for the people that have a longer time horizon, the reason to go in the metal now is to actually preserve as much of your current wealth as possible for what's, you know, down the down the road to happen, which is

within the next year or two, you know, my guess. I I have suspicions about the new year. and if you lose very little and then you stay in metal for this time of transition, and if there's any free market that rolls out at the other end, whatever that timeline is, five years from now, let's say, then you've still have your wealth intact and then you go back into your positions that you used to do before. That's how

you

Kellen Ainey (08:42)
Okay.

Andrew Sleigh (08:43)
play the game.

Kellen Ainey (08:44)
So regardless, you're just hedging against economic uncertainty. Is that correct? That's the layman's way to put it. Perfect.

Andrew Sleigh (08:49)
Yeah. Yeah. Yeah, absolutely.

Kellen Ainey (08:53)
All right, let's see here.

Andrew Sleigh (08:56)
Mm-hmm.

Kellen Ainey (08:56)
So, sticking with the current topic of the Federal Reserve, the Federal Reserve just raised its rates by 25 basis points. Historically, higher rates can pressure precious metals.

So why have gold and silver remained relatively resilient?

Andrew Sleigh (09:13)
I think they're telling us, this is kind of similar to the earlier question, I think gold and silver are telling us that the system is breaking. Because you're right, when interest rates go up, typically the metals go down. And they only did it for an afternoon. And so when we get to the end game of this, what's widely discussed by experts that are following this closely, and that in the end when the system breaks.

Interest rates will go up crazily, and gold and silver will with it.

And that's your hyperinflation event. And so I expected gold and silver to be down number of days after that height rake, and it only lasted for the afternoon. That's to me after we you know, we the next couple days after and how strong it's it's been, to my understanding, I think it's showing us how close we are getting to the end.

Kellen Ainey (10:11)
And do you see for say the next three weeks for silver and gold to maintain their positions, potentially raise in value, lower in value? Obviously it's just speculation, of course, but

Andrew Sleigh (10:22)
We're we're in this narrow channel right now for go both gold and silver going up and down in a trading range. and then we have to wait until we either break above or break below the support or the resistance levels. And that then we'll have an idea of where we're going. But right now it's gonna be an up and down chop until something major happens.

Kellen Ainey (10:42)
And as I did mention earlier, gold selling off on the nomination news. Do you s how big of an impact do you see basically the sell offs of gold and silver on these day to day prices as opposed to the economic uncertainty?

Andrew Sleigh (10:58)
I don't see much impact on a sell off day. reports that I'm seeing over the last few days is that there's tremendous purchasing behind the scenes of gold and silver physically. so anything that's been a down day, the powers that be around the world are buying gold and silver at monumental levels, trying to get it as if the party's gonna end soon. By the way, late breaking news, tether

It's just entered the silver game. So they've been buy

Kellen Ainey (11:30)
Really?

Andrew Sleigh (11:31)
they were buying gold and they have a hundred and forty six tons of gold. They just started buying silver.

Kellen Ainey (11:38)
Well, even I have

a question that's more so related to that because when I was speaking more so to the sell-offs, I'm talking from the individual investor as opposed to an institutional investor. With China, it's funny because with China has already imported more than a thousand tons of gold this year. How important is Chinese and broader Asian demand to the next phase of physical gold to the next phase of the physical gold market? And how can you see the

Well basically the Chinese government impact in gold's future.

Andrew Sleigh (12:14)
I I think that's gonna be beyond description. I would only be taking a wild stab at how much they're gonna impact because th look how many people are in China and they're all being encouraged to buy. And so when they start to really buy in mass, gold and silver will be drained like you wouldn't like you've never seen. you know, you can't print gold and silver. It's gotta come out of a mine. And there's only so much around at a certain given time. So

you have the BRICS nations that are more and more buying gold. China's gonna continue to buy when the citizens start to buy more and more. Like you know, when they go from a I'm making up a number, let's say it's China's one percent buy gold of the population and now it goes to two percent. Well, what's two percent of several billion people? Like that's a lot of extra demand just because it's such a large market over there. so there's gonna be a massive pressure

on supplying physical metal to China and the rest of the BRICS nations.

Kellen Ainey (13:20)
So a few weeks back we did see that China had actually banned paper trading on its physical gold and subsequently its physical silver as well. Do you think that that's had an impact with regards to gold and silver being able to maintain its value with regards to well, with regards to the with regards to the interest rates being raised?

Andrew Sleigh (13:46)
I'm not sure. pure speculation on my part. it certainly seems to me that when they suspended the trading the of paper shorts, it seems like gold has been more consistent. Hasn't been quite as wild in its fluctuations. But that's just like we may not see the impact on on that for a little while. Excuse me.

So I'm not sure what the effects are on that for China yet, because they're only one part of the trading platform around the world. You still have New York and London still playing, you know, a lot of the games. But this is a transition where when they've suspended that and more and more countries are moving away from the United States, slowly but surely, you know, the effects are gonna be known in the future with

Less of this manipulation. You know, I hear that Comex is losing silver and gold out of their out of their exchange, left, right, and center. It's all moving east. You know, at some point whatever the US does is irrelevant. And when that becomes irrelevant, then gold and silver has a better chance of of having less manipulation involved, which then comes to the real market value, which could be pick a number.

Kellen Ainey (15:14)
And you feel the US actions becoming irrelevant? Do you see that being a six month timeline, a year timeline, a five year timeline? Of course, again, just speculation. It's very difficult. You don't have the crystal ball, you can't see the future. But just

Andrew Sleigh (15:28)
Yeah.

Kellen Ainey (15:29)
with the information you've seen so far.

Andrew Sleigh (15:33)
Well, any expert that's talked about the the dollar of trade, the US losing it, and these are people that are all quite credible in their own right in their own field, and they they talk about, you know, it's inch by inch, mile by mile, and then it'll be sooner or later it's it's the dollar's no longer of trade. and that's sort of sidelining the parallel in the the gold scenario. So how long this takes

The the experts seem to think it's a few years off before w we lose the dollar of trade and stuff like that. And I have never thought it's been that far away. And I'm not anyone that's qualified to argue with them, even debate it. but you know, I have been pretty good on on looking at what's going on trend wise, and I I've had some some gut feelings and sneaky suspicions about what's going on for this December January. And

And oddly enough, I had some of it confirmed this week because, you know, they're talking about even the digital currency being a couple of years off. Europe even said, well, we're not going to develop, you know, an an issue something for at least until twenty twenty nine for the digital euro. And so what was announced on Monday of this week? Pontus. Pontus has been an launched effective Monday, September twenty first in Europe.

For a digital C B D C between banks.

Kellen Ainey (17:08)
Mm-hmm.

Andrew Sleigh (17:08)
Okay. Now, where am I going with all this? so two years earlier than what they announced, they have banks now doing C B D Cs and doing the ledger and all that stuff. Well that's just testing it out, making sure that it works properly, fix any problems. It's kind of like a beta launch, if you will. Huh. This is what September. I wonder what's happening in December, January, or sometime early in the new year.

And then what's going on in the States, you know, a week ago, twenty one of the largest US banks announced they've formed a company that they will launch their own stablecoin within the first six months of twenty twenty seven.

That could be January, by the way.

Kellen Ainey (18:01)
And I assume it will be in the first quarter of twenty twenty seven.

Andrew Sleigh (18:05)
So you have twenty one banks, JP Morgan's doing their own thing, they're gonna do their own stable coin. So you have large corporations announcing stable coins for the first six months of next year, which again they said they don't give a date 'cause it gives too much away. They just say within the first six months. Well, let me see. US pardon me I ran Europe said that we're two years off from issuing

And and here it is like two months later they've got you know the digital dig digital currency going for banks. So if they're thinking about first six months of twenty twenty seven, let's say maybe January. So and then you have Canada March twenty sixth of this year. March twenty sixth of twenty twenty six, all the legal framework for Canada stable coins all been passed in Bill C fifteen. It's all done.

And two days later, Stablecorp, which is a startup funded by Deloitte and Touche, the accounting firm, announced Canada's first fully recognized national stablecoin called Qcash.

So why is all this happening, but yet it's two or three years away? So where am I going with all this? Is back to you know the the irrelevancy of the gold and all that. How long does this all take? The experts seem to feel it's several years away. And I'm not so sure. You know, if we go to a stable coin in the new year, whatever month it is, you have to destroy the existing one to do that.

You can't bring in a new currency without having a problem with the existing one worldwide, whatever country you're in. So, you know, my spider senses are tingling like crazy that we've got something coming at the end of the year. And, you know, a lot of experts are talking about, you know, an imminent market collapse, stock market crash, you know, by or no later than mid October.

So whether that's true or not, it doesn't really matter if it's at the end of October or November. It doesn't really matter. What matters is people start, you know, looking at your original question, looking at the what's going on around the world, of course mainstream doesn't report on any of this, so most people have to who aren't aware are are gonna be left out, but currencies are being created and ready to go.

the debt destruction of the dollars are rampant you know the governments are are no restraint on spending money that's rampant de inflationary effect on the dollar you have global conflict going out of sight like it's gonna expand and expand and expand there's no there is no peace deal coming that's that's all that's nothing but talk that's nothing to to even listen to

The war is going to continue to expand, and that's all part of the when you s bring down one system to create another, it's always around war. Look at Bretton Woods in World War II. It was to bankrupt England so they could bring in the US dollar as the dollar of trade. That's the whole reason World War II happened. So so anyway, point being that's a long winded question, but long winded answer, pardon me for the question. And so

I think this is going to happen much sooner than what many experts have talked about. And I'm not anyone to you don't have to believe any of that for me. I'm who am I qualified compared to these other you know economists? And but one thing I've learned about listening to economists is that they're never right. So so yeah, I sure get that's right.

Kellen Ainey (22:03)
It can go both ways really, right? And a broken clocks rise twice a day too, so

Andrew Sleigh (22:08)
Yeah. So be be early, don't be late.

And you can't go wrong.

Kellen Ainey (22:15)
that's a fair way to look at it. Alright, so we've gotten to our last question here, and it's actually it's funny, it's very similar to the answer you've just given me. So looking forward to the final quarter of twenty twenty six, what are the three biggest factors you're watching that could determine the next major move in gold as well as silver?

Andrew Sleigh (22:37)
I'm waiting for that market to roll over. So like that's gonna be the that's gonna be the mother of all a Titanic ship rolling over. and you know, the biggest bubble on the planet by far is we've never been anywhere near this on all these assets around the world at the same time and all the asset classes. So I'm expecting something massive to pop. And if it does, you know, you will see a a massive money print.

And and gold and silver will explode. And so it's very easy to get to a high number before the end of this year if this occurs before the end of the year.

Kellen Ainey (23:15)
Alright. And do you think that just to can just to confirm here, do you think that buying, say, stocks backed by physical precious metals is a safe substitute, or would you say that really the only way to protect yourself is through physical precious metals?

Andrew Sleigh (23:33)
Well, so if you buy if you buy a paper trade of silver and gold, you're actually not protecting your assets at all because that's in the system and you all you have is a paper trade. You have to sell it and get out, and then you get US dollars or Canadian dollars or whatever it is, and then you have to go looking to a bullion dealer to exchange your dollars to metal. And like how's that safe harbor? So when this thing

breaks, you don't want to have anything other than physical in your hand because it's in your hand. You don't want any counterparty risk. there's lots of discussion out there about the great taking with David Webb. I think when this thing does blow at any time that could be triggered. If it does, all these paper trades are gone. You won't have anything. And so it it's I I find it quite ironic, you know, that that

the advisors out there are selling these paper trades as well here this is as good as gold and silver safe haven it'll protect your assets and all that it only does while the paper system is intact and as soon as it as soon as it becomes unraveled you've got nothing because you have nothing you have a paper trade you don't have physical gold and silver the broker has this physical silver and gold and if you have enough that you can stand for delivery then you can only get commercial sized bars.

thousand ounce bars of silver, hundred ounce bars or maybe kilos of gold, but either either or are gonna be, you know, huge expensive. And what are you gonna do with that? You know, they're very, very they're gonna have so much value to them that how are you gonna spend it? Nobody can make change. and we get into that era, the availability of gold and silver at dealers will be you know quite thin if at all if there's anything at all available to buy.

You know, 'cause when the crowd wakes up, everyone's gonna be calling the the shops everywhere and saying I'll you know, they take all their money and they buy everything they can. So you wanna have physical in your in your pocket in your hand when this thing goes down and there's no running to the phone to try and call your broker to sell anything because you'll be on a queue with a thousand phone calls. It'll be a disaster.

Kellen Ainey (25:53)
Well, we've even

we've even seen that and it was just a very small picture. We've even seen it with gold and silver, our phones ringing off the hook when the availability of it was just next to nothing, right? And our phones were ringing off the hook. I would say from it was about last December till late February, early March, and there was delays of up to six weeks with regards to deliveries even. So

It that's just level one of what you're saying could be a hundred levels.

Andrew Sleigh (26:25)
Yeah. You look at you look at how many banks there are in the city and compare that to how many bullion dealers there are in the city, coin shops. How many bullion dealers there are nationally across the country or that can handle national orders like us. I mean, there's more banks in my city than there are broad probably bullion dealers in the whole country.

Kellen Ainey (26:48)
Well, there's

really only a handful of reputable ones reputable ones as well, right? So But it look

Andrew Sleigh (26:53)
Yeah. So y you

know, you have all that pressure trying to go to such few outlets to get the metal. It's it causes a huge problem. So while things are quiet, you know, and metals are in this, you know, sideways trading range, it's an excellent time to to purchase metals before anything breaks. And if it breaks in a few weeks in October, you'll be wishing you already had the metal bought.

Kellen Ainey (27:19)
And to your

Andrew Sleigh (27:20)
So

Kellen Ainey (27:20)
point, even further above the dealers, there's only there's only a handful of refiners that are reputable as well, right? Outside the Canadian mint, you have you have other refineries like we had mentioned Scottsdale, but even then it's just it's very, very difficult for lack of a better term when stuff finally hits the fan, like you're saying.

Andrew Sleigh (27:40)
Yeah, absolutely.

Kellen Ainey (27:44)
All right, Andrew. Well it seems like we've answered all of our questions. Do you have any final message you want to give to our viewers? is there anything that you've been working on, taking a look at that we didn't really cover today?

Andrew Sleigh (27:57)
I gave most of it away in one of my answers with regards to Pontus being launched in Europe and and Tether, which was been a huge gold accumulator, 146 tons, so they're now in a big play there, now starting to buy silver. And that's that's huge news because I mean they'll put a lot of capital into that and that's just one more drain. So there's a lot of a lot of big money flowing into metal at an institutional end. And I think one of these days we're gonna be in a shock to see what happens with

the availability of silver and maybe gold as well. I don't know. But so those two things, C B D C officially here in Europe, and with bank to bank transactions, soon to be everywhere else, maybe for January for people or two or February, who knows. And and I expect the same thing in the US that all of a sudden in a new year there'll be, you know, stable coins will be enacted and then

I wonder if it's going on in the States. It's probably gonna happen in Canada too at the same time. So so, you know, you know, my spider senses are are tingling for the end of this year. I think we're gonna see some pretty explosive things ha happen. Pardon the pun, you know, war and then there's the the market exploding and popping and and I'm buckling up for for that and so I'm just waiting and seeing what happens next few weeks.

Kellen Ainey (29:26)
Alright, that sounds good with me at least.

Andrew Sleigh (29:32)
Ha ha

Kellen Ainey (29:32)
Let's

how can our clients reach you?

Andrew Sleigh (29:36)
sure thing they can call the toll free number one triple eight eight six seven zero seven seven five. My extension's two hundred thirty. If you have something else that you want to discuss with me or get a point of view on something, just give me a call. You can also reach me by email is death of the dollar at sprottmoney.com.

Kellen Ainey (29:53)
once again, thank you, Andrew, for joining us on the Ask Andrew podcast. We'll be back I would say in the next few weeks with regards to and and some additional questions from our great viewers.

Andrew Sleigh (30:04)
Great. Thank you, Kellen