Gold & Silver: The Master Plan – Mike Maloney

published on August 2, 2020

I see that there could be an even greater panic into gold and silver this time around than last time the world is in a lot more trouble today than it was in 1979 well gold and silver are doing a little

Bit of a pullback today and that is to be expected i mean gold has gone up for six or seven days in a row now and so it's time for it to take a rest and it came a breath away from two

Thousand dollars yesterday so uh it's put in some spectacular performance and as you'll see later in the video goldman sachs has uh has changed their target

On gold their target for this year was two thousand dollars an ounce and since it came a breath away from it yesterday they've changed it but there's some other big news in that story

So silver you know it makes sense for gold to come down and retest the 1900 level uh it hasn't quite dropped it went to 1908 so it could do another pullback tomorrow i have no idea but right now

It's on the high of the day as we speak so it's at 1956 now like i said this is normal here is silver and it's near its high of the day not quite on it but it went down to 22

Bucks and there are some previous peaks at like 21 and so on that have been that have taken place during this consolidation so it's not testing its all-time high

But it makes sense for it to come down and find a support level now some people want to rush into it all at once and you know the gold and silver get

Into the news and they want to just rush into it you know i developed a plan many years ago and i have been following my plan and my plan was slow and steady accumulation

And working the gold silver ratio to determine which metal i would buy i would buy the most undervalued of the two metals and so developing your plan is a very important thing we're going to get

Into that a little bit more later but gold and silver are in the third stage of their bull market like i said that happened yesterday with that breakout above 1900 and what's different i talked about

Investor sentiment this is monetary demand and it is monetary demand that is required people have to be moving back toward gold and silver as money as an alternative to the fiat

Currencies as uh the the safe haven and like i said the uh the big rally from the beginning of the century to 2011 was a greed driven rally yesterday and the day before this is beginning to

Become a fear-driven rally so it's it's a rally where people are seeking that safe haven and fear is by far the more powerful emotion between fear and greed so

I'll talk a little bit more about developing a plan but let's take a look at that long view so here's gold from 2001 to 2011 and just such a perfect bull market and then the secular bears

Cyclical bear market within the secular bull market and now it has broken out so it it makes sense to retest that but uh if you applied the gains that you had

From 2001 to 2011 to the bottom uh here at 1100 bucks you're coming up toward the 8 000 level now people will say that that's totally insane that

You know a lot of people especially if they're conservative but when uh gold was first when we ended the bretton woods system and gold was free trading back august 15th of 71

Economists all expected gold to drop because there was going to be no more demand demand from government no more central bank demand and so they all expected it to fall and

Anybody that said that gold was going to a hundred dollars was considered absolutely crazy it had always been 20 up until 1934 and then from 34 to 71 it was 35 bucks anybody that thought it was going to uh

A hundred was just absolutely nuts and it went to 873 was the actual top according to uh stock charts here so retesting that 1900 area is sort of important now i'm going to

Show you a couple of other things though the gold silver ratio and this is just for this century uh so what you can see here is that the average is somewhere around 60 or so 65 and we're still this is at

78 that was yesterday today we're back up at 80 and and uh if we really take a look at this the long view of this here's 50 years of the gold silver ratio

And what you see back here in 1980 when gold and silver peaked it dropped down to 14 and i believe it could even go lower than that 10 which means and it may not

I mean i don't guarantee anything it's just that i see that there could be an even greater panic into gold and silver this time around than last time the world is in a lot more trouble today than it was in 1979

And so um you know one of the things that i'm wondering how the federal reserve and the government are going to try to stop gold because if gold gets into a melt up

And it's really charging ahead that can actually create the end of a fiat currency that is what was actually happening in late 79 early 1980 it was in a melt up

And it took some real rule changes on the part of the treasury the federal reserve i mean paul volcker really uh he changed interest rates he put us into a painful recession

To try and uh get a hold of this he was involved in some of the changes that the commodities exchange made to the rules to try and break the hunt brothers i believe that they used the hunt brothers

As an example uh they they busted the hunt brothers who were there's this story that the hunt brothers were trying to corner the market they were protecting themselves from uh

Crazy currency printing we had only been off of gold for uh just eight years actually about uh four or five years when the hunt brothers really started

Buying gold and silver and the gold and so a lot of people that trade silver also trade gold and when you look at the commodities exchanges back then it was pits of guys

Standing in circles yelling and screaming at each other and doing hand signals and the gold pit is right next to the silver pit and so they changed the rules several times on the hunt brothers

Trying to stop them and squeeze them out and uh in on i believe january 18 1980 they changed the rules to liquidation orders only meaning you couldn't open a new futures contract

You could only close out the old ones and that is a rule by the commodities exchange that says until the price that in until this rule is lifted the price must fall that's the rule and

So they stopped silver at 50 bucks why would they do that because gold was in a runaway and gold can threaten the survival of fiat currencies when it's in a runaway like that and so

I'm wondering what the federal reserve will do i mean this has to be keeping them up at night uh right now this and all of the other problems they've got on top of it

But they've got to keep interest rates low because of the government debt and all of the currency printing and they want to encourage bank lending and stuff but if they keep interest rates this low

Then the safe haven of bonds doesn't pay and people turn toward things like gold and silver and if gold goes into a runaway that can cause the death of the dollar it's a real quandary for them

So i'm sure they're shaking in their boots right now anyway so one of the things that i want to say is go to my website and get my book just click on this little link right

Here and one of the reasons i want to get you i want you to get the book and it's free if you do it this way this is part of the book this is chapter 15 who are you

And what's your plan and in here you need a plan this is you know i had a plan of accumulating constantly and slowly over a period of time and using the gold silver ratio to

Determine which metal was the most undervalued and then buying that metal and in here you want to develop a goal you want to develop a strategy to implement that goal and then there's a

Tactic used to implement the strategy you know you wanna the the strategy is to reach that goal and then the uh tactic is the way you're going to do that

And then you need to develop a plan and you need to ask yourself some certain questions so go ahead and just download this book get it right now and in here i've even given you a little

Work area so you can put in your risk tolerance your how how involved you want to be are you going to be a day trader are you going to be uh an investor and just like i'm um

An investor that i i swing trade i've been accumulating for years and years and years and then my big swing trade will be when i think gold and silver are peaking i'm going to

Start selling in little tranches my insiders at goldsilvercom know more about that i i tell them a little bit more about what i'm doing your reason for investing do you need

Income or are you looking for future wealth your age and your portfolio size those are all very important things and a good team is part of a good plan and your

Team doesn't have to be like a team of people that you get together with physically it could be youtubers like me if you're watching this video maybe i'm on your team

You're getting information from me you can sign up for newsletters but getting some other viewpoints is very important like i say i don't give advice i just try to report

Facts and give as much information as possible and encourage everybody to learn as much as they can about this because the world is changing so fast and you you know we can only play the hand that we are dealt

And right now the world economy is in a perilous position and um uh so to protect yourself and have the possibility of making great gains as well is great but you know what i don't want to get rich this way i don't

The world that i see in the next few years is not the world of my preference with much there's there's some things that are changing right now

That uh that sort of uh put dampers on some of the plans that i had but you know what i know that i'm going to do very well uh compared to the average person that isn't paying

Attention to these things so back to goldsilvercom um the gold silver ratio is at 80 and the reason i point that this out is because um i i showed you the gold silver ratio just

Now uh in that long view and let's go back to that for just a second so this is uh since 1970 and you can see that it came all the way down to 14

Meaning silver's value was 1 14 of what gold's value is it took 14 ounces of silver to buy an ounce of gold today it takes about 80 if it goes to 10 that means gold will silver will have

Eight times the performance of gold if it goes to 20 it'll have four times the performance of gold even if it just goes to 40 which i i am absolutely confident you i'm not guaranteeing anything for you

You guys all have to make your own decisions uh and figure out your own plan but this is an area that i know it's going to so you can get double the performance of gold sell your silver and buy

Twice as much gold as you paid for and so that's some of what is behind my plan i've explained it a lot further to my insiders but getting back to goldsilvercom going down to the stories here uh uh

Trouble is coming uh warren's short selling legend who just cashed in 100 million dollar winning bet uh gold and bitcoin are going to rise jim grant says gold has a fairly bright future

After its recent rally and in that article he says that the federal reserve and the treasury have challenged the notion of scarcity i love that challenge the notion of scarcity with

All of their printing you know back in 2001 one of the things that set me off on the course of writing my book and making my book the way it was uh and developing my entire plan

There was a a paper that ben bernanke wrote uh titled deflation making sure it doesn't happen here and he sort of laid out what the federal reserve was going to do

And i based my entire i mean i based the next 20 years of my life off of that paper and in there he said the dollar like gold has value only to the amount that is

Strictly limited in quantity and they have just challenged that notion the notion of scarcity is gone and then later you know it says the united states will not recover rising taxes or

Printing currency isn't going to get us out of this but here goldman sachs raises gold and silver forecast on real concerns about the dollar as a reserve

Currency as the reserve currency now uh i have been giving lectures on this since 2009 or 10 the death of the global dollar standard is what i called it and i used to report on the nails in the

Coffin and you can't anymore because there's there's a whole bunch of them every week and this is one of them goldman sachs i think aren't they the world's largest

Uh brokerage uh this is investment bankers uh this is huge that goldman sachs is actually worried about the us dollar's decline as the world's reserve currency

And i've been warning about this since 2009 or 10 it's nice to see goldman sachs catch up with me sorry being a bit snobby there uh but uh nothing can stop gold deutsche bank projects fed's balance sheet

Will hit 20 trillion in the next few years it's it's currently at seven we're going to spend another like i said yesterday another trillion dollars that we don't have

And it's going to be hard to raise that money in the bond that currency in the bond markets uh if it's if they're trying to sell bonds with uh no return on them when gold is is

Putting in uh such spectacular gains and so uh the analyst at deutsche bank just sees this is the fed's balance sheet and they see 20 trillion dollars coming up in just a

Few years and so uh that is something to watch out for and to me it says that gold and silver have big room to run all of my analysis that i've been doing

For years basically suggests that 5 000 an ounce gold is just an absolutely absurd low price these prices are just like a gift from god

But you really should read jeff clarke's recent article on the purchasing power of gold so if we go back to goldsilvercom uh this is the secret to understanding gold's true value

That's the important thing it isn't how much how many dollars it's going to be worth it's how many shares of of the s p 500 or the dow or how many how many ounces of gold it

Takes to buy a single family median home things like that how much stuff will you be able to buy with it and then lastly we have this article that came out a couple of days ago stay the hell away from gold and um

I find things like this entertaining uh the guy has his own viewpoint uh i'm not going to get down on him or anything but you know he's he's warning people about the volatility of gold and that

You know you don't want to get in gold right now because it could crash but uh let's take a look at gold's performance over this century just sort of want to leave you with this chart i'm going to revisit this chart in

A future video here where i sort of cover the performance of gold and silver uh during the 70s and we'll make this into a horse race uh so down here we have your roller

Coaster ride of the s p 500 with uh you know losses here of uh basically 50 loss from its peak and this was um more than 57 this was like a 62 retracement uh from its peak up here uh but

We're only from from the beginning of this century we're only up 129 on the s p and we're up 5845 with gold so the moral of the story is

Stay the hell away from gold i want to thank you for watching we'll see you next time

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