Episode Transcript
[00:00:00] Out of cycle Update.
[00:00:03] The brief smattering of warmth certainly did not last very long, did it? CryptoTalk FM. My name is Leister. I am your host.
[00:00:11] Silver is our topic for today. Lyster, CryptoTalk FM has been forewarning you for a lengthy period of time to consider precious metals of all kinds. That rhymes.
[00:00:24] But it is silver that we are specifically going to focus on because it occurred to me that some may not fully understand what's happening and why as well as what it ultimately is going to end up doing. From my perspective, and it's only my perspective and there are some that don't understand that I have every right to share my perspective because it's a perspective you are entitled to do your own research and encouraged to do so and come with your own perspective. Whether it contradicts mine or not is not the point.
[00:00:58] That's 1, 2.
[00:01:01] I was given information that leads me to believe that things that I said to be the truth months ago are actually coming and being verified by certain people.
[00:01:13] Now, I don't take a victory lap on this one because unfortunately the consensus has spoken that they don't want to hear that.
[00:01:22] But when I, when this was brought to my attention and I realized that, geez, these are just some dumb people, they're being duped and they don't realize how brilliant certain people are that are lying to them. Let's say they're being lied to and they're taking it on face because it's a sob story. I understand some people are not smart enough to interpret behind.
[00:01:51] I'm not going to speak further about that because it's not worth it. When we see silver going to the moon, do do do.
[00:02:00] To the point that silver became the second highest asset class.
[00:02:06] Whether that lasts, I don't think it will in the long, I don't. But for right now, silver is right behind gold climbing the ladder of success.
[00:02:18] The reason this is happening, there's a couple of different pockets of reasons I shouldn't put single. Reason because it's not really fair.
[00:02:26] Couple of pockets of reasons. Reason number one, everything that's happening international has got people nervous.
[00:02:35] There's chatter, there's all these collaborative efforts to try to devalue and remove reliance on the United States dollar. The United States dollar goes by another name, paper that connects to my second pocket paper with silver.
[00:02:56] For years did you realize that silver as priced was being suppressed?
[00:03:03] Not only was it being suppressed, there wasn't really any exchange of the asset happening. It was all being traded in paper form.
[00:03:12] With price suppression, I encourage you to do your own searches and researching to confirm what I'm saying, that the price of silver was fake. When you see gold in the $4,000 range and silver is in the two figures, remember, not that long ago, silver was $40 an ounce compared to gold's $4,000 an ounce, didn't that seem kind of suspicious to you? Because you probably took that and said silver ain't worth a damn when the fact is conductivity adds value to silver.
[00:03:52] Everything that we deal with depends on silver. All of the electronics that you use to some degree depend on silver. Silver has one of the strongest utilities of all of the precious metals, yet it has one of the lowest prices.
[00:04:08] This is a long time coming.
[00:04:11] We now are encountering the third pocket, the squeeze.
[00:04:16] What is the squeeze?
[00:04:19] In order to explain the squeeze cleanly, I want to help you understand what happens due to this paper and the chaos that is the paper.
[00:04:30] And it was the precursor to what we now see.
[00:04:36] What we see is the supply of silver, just the availability of physical silver, what's going to end up happening is it's going to be less available.
[00:04:49] There's always minting.
[00:04:52] I'm saying it's going to be less available. There's going to be a supply constraint. The supply constraint.
[00:04:59] There's demand that's here now.
[00:05:01] The demand, when you couple that with a supply constraint, almost always, not always, but almost always contributes to a price appreciation.
[00:05:13] Let me break that down. How this crunch, this squeeze really works, we see ultimately international is taking over with respect to precious metals and their control of the precious metal markets.
[00:05:32] A lot of the banks that were suppressing the price of the precious metals exist in the Western countries, including the United States.
[00:05:39] There has been all sorts of countless legal actions taken for this manipulation of that market.
[00:05:47] Because in their mind, if silver's price were where it really should be, it would put a strain on everything and they want to try to control it. We understood that, we understood how it worked.
[00:06:00] Remember that at some point a while ago, we were talking about the coins and the mint, United States Mint, and how they were going to consider certain coins no longer being minted. We're trying to get rid of the penny, we're trying to get rid of silver eagle coins, etc.
[00:06:17] Behind the scenes of all of that turmoil.
[00:06:20] The CME group analysis is done and turns out that they are going to need to essentially do some mass liquidations.
[00:06:31] We have to get the books back in order.
[00:06:33] We have to get everything back level back neutral. And that's going to result. People expect in significant amounts of liquidations over the next couple of months.
[00:06:44] Japan bond yields, Bond yields equal risk.
[00:06:51] When you have risk, what's going to happen? You're going to see treasury bonds get sold off in order to help mitigate the risk.
[00:07:01] What then happens? If such a thing were to happen, the Fed likely might try to overreact.
[00:07:09] They might go on some money printing mission possibly maybe.
[00:07:15] Now consider that Donald Trump president is trying to replace Jerome Powell as quickly as possible. Too late Powell and he's trying to get somebody in that's going to drop rates, get us back because he's trying to allay concerns of the regular public about the financial status and the economic status and the fact that he says that the market's good and the job market's good and there's no reason we should not drop rates. I actually agree with them. I actually agree with the idea that mortgages, the rates are a joke. I actually just did some shopping.
[00:07:46] If you want to do a cash out refi, they're still talking 5, 6%. That's a joke. I'm sorry. If you don't do cash out, you can get as low as four and a half or some odd. It's still a joke. I don't feel that mortgages should be more than 3%.
[00:08:00] So then I was having a conversation with someone about this mortgage rate business and they, and they were talking about well if you drop the rates it's going to raise the price of homes, right? And well this ties to silver and I'll get to it. But if you drop the mortgage rates, it raises the price of homes. They're correct. Basic macroeconomics. What they're missing is think of what that means.
[00:08:27] A higher priced home home but a lower interest rate.
[00:08:33] You're paying less interest to the banks but you're getting more equity. As you pay the home down, the equity benefits you, the interest benefits the banks. The real impact years ago when they introduced the mortgage interest deduction, it was designed to offset offset the increase in mortgage interest rates over time by giving you a deduction to help, you know, insulate that burden. If you drop the mortgage interest rates, you're going to have a lower deduction come tax time because you're not paying as much. The burden is not realized upon you up front. So you should no longer be entitled to the same amount of deduction on the back end.
[00:09:18] But people have become dependent on tax credits and deductions which are fakely escaping scam.
[00:09:23] And so there's going to be an impact. And that impact is going to be mostly on who the upper middle class.
[00:09:31] Largely the upper class, but I would say the upper middle class, the lower class will be impacted because subprime, subprime loans often have higher interest rates. The higher interest rates usually pair with plans and programs that are designed, they promote the tax deduction to help offset what it takes to afford the home. If you have a lower deduction, that's going to be less money coming quote back or less that you're claiming or whatnot. But some people are not insulated against that disruption and they may not be prepared for it.
[00:10:05] I actually think it's a good thing. I don't feel like interest rates should be over 3%.
[00:10:10] I don't. I think it's stupid. It doesn't matter if I can afford it. I think more money should go towards equity than to interest.
[00:10:17] The risk of my stance is a repeat of 2008 and the housing bubble. During the housing bubble, you saw equity skyrocket, you saw rock bottom interest rates, you saw no doc loans, you saw no down payment loans, you saw no inspection loans, no appraisal loans.
[00:10:37] That was risk.
[00:10:39] What I propose risks repeating that same.
[00:10:44] I'm not suggesting we should, I'm saying it risks doing so.
[00:10:49] Because of what I just described and all the other factors I talked about. There's an inherent devaluation of the United States dollar, our fiat backed system.
[00:11:03] If the value of our fiat declines to a point, silver is going to skyrocket simply because it's.
[00:11:12] It is that hedge, it is that alternative. It is where assets go to be insulated against the disruption.
[00:11:21] If money's just floating out there, being printed and printed and printed and debts being accumulated, everything else. And we are getting close to that bubble. I told you it connects. If we are getting close to that bubble, you're going to see a groundswell of money flow towards precious metals. That's number one.
[00:11:39] But number two, you're going to see the price of them absolutely go ballistic. Specifically silver, because it's not like with gold.
[00:11:49] Gold is largely at the price it should be. I would say it's a little bit suppressed, but it's largely at the price it should be. Silver is nowhere close to the price it should be. If we go strictly off of its, its ubiquity or not its use case, which is already proven how close it is to gold in the asset list. It's right behind gold in the asset list. There's no reason for it to be in double figures. It doesn't make logical sense.
[00:12:17] We have to see what that reset is going to yield and see how it looks.
[00:12:21] We also have to understand cryptocurrency and as a risk based investment that crypto is anytime there are these macro disruptions I talked about that increase risk, money tends to flow towards those precious metals as a hedge against that financial damage.
[00:12:41] If you choose to get into precious metals I said this on a past episode you may not have heard. I will share it here.
[00:12:47] If you choose to get into precious metals, in my assessment, I wouldn't touch gold right now.
[00:12:53] I wouldn't touch platinum right now. I would not touch palladium right now.
[00:12:58] Silver to me is steel. Even now, grossly underpriced copper I think is fair game.
[00:13:08] The bar of copper I'm staring at, I bought it for about 170 some odd dollars. It's now sell for $400.
[00:13:17] Despite what some YouTubers told you about the silliness of buying copper, because of its ubiquity, it is more ubiquitous than silver. It doesn't change how value proposition works and the perception of value. If you choose to get into precious metals, I am encouraging you to only pay attention for now to silver.
[00:13:40] You have to be careful.
[00:13:43] Premium, which you may not be aware of in the if you've never done it will always apply when purchasing precious metals. It's just what it sounds like. It is an amount of money you are being requested and required to pay above and beyond the so called spot price of said you can never buy at spot. It's I would say nigh impossible.
[00:14:06] How much premium and it varies from different shops online you can there's some precious metal shops, probably local in your town that you might get a better deal and you strike a relationship with them and do repeat business with them. And sometimes they'll offer you some kind of a deal like you have some gold, you want to trade the gold for silver for example and then just kind of arbitrage them that they might offer that and then say okay, we'll throw in a 2 ounce or something. So that's the thing to start is find the local precious metal shop. Don't do the online find a local one.
[00:14:40] Let them know you know you're trying to get in there, you're trying to learn more about how this works and you don't want to get ripped off so you figured you'd come local. What do you have to offer? If it's just fiat, it's just fiat. That's fine.
[00:14:52] Start small.
[00:14:53] Don't overdo it and please do not YOLO into it just because you're seeing green candles.
[00:14:59] You're going to have some dips. This is going to come back down in the short and then it's going to run again. I think it's going to have peaks and valleys over time.
[00:15:09] I think $100 imminent, my guess, but all I'm suggesting is do it local. Find a local shop. I almost guarantee you probably have one. Find a local shop, transact locally, do not do online. You're going to get ripped off if you do online, period.
[00:15:27] Because they need to make profit. There's overhead, there's the minting charges, there's salaries, there's insurance, there's shipping, there's all sorts of stuff. Stuff don't.
[00:15:36] It's not worth it.
[00:15:38] If in the oddball chance you don't have somebody local. Sure, you could do online. Just be mindful that premium is going to nail you. And the reason I'm harping on it, the premium is going to eat into whatever profits you might have expected, especially if you're dealing with small ounce numbers.
[00:15:55] So as an example, I have a 10 ounce of silver. It's a single point unit. I bought it for $500. They're selling silver now for a thousand dollars. So it didn't matter that I paid a premium at that time, let's say, what was it, five, six dollars? It didn't matter because it was so it's so much in the money that even if I were to say it doesn't matter, right?
[00:16:18] But if you're doing small off numbers, you're not going to be able to quick spot trade this stuff. It's like these are long play, they take time, they're cycles.
[00:16:27] I share that because there's going to be people looking at the candles and thinking that they should get in. And I'm not suggesting you don't. I'm saying that if you do go to the local store, learn this stuff, it's not the same risk as crypto, but you have to manage your expectations of profit. It's not the same quick profit at all.
[00:16:52] You have to be realistic about how much you're going to make in the short term.
[00:16:56] You have to understand the differences in types, you know, the rounds, coins, bars, kilos.
[00:17:04] You know, you have to understand what matters where. You have to understand how you would sell it. That's why I say go to a local shop.
[00:17:12] You have to understand condition. You might have to understand assay for gold.
[00:17:17] You might want to understand the different minting shops. And which ones to avoid. Like, avoid like I'll say, jam bullion.
[00:17:25] They have their own minting of things, but it may not be as appealing as Pamp Suisse as an example because Pamph Suisse is a dedicated mint, not partnered with a shop that might be in competition with other shops. You follow. So you need to learn that if you want to get in this, you need to learn this. And it's a completely different science critical that you understand it.
[00:17:51] Lastly, most critically, you're in the crypto world and you watch DaVinci. Jeremy, you may have seen him start talking about silver lockstep with bitcoin. Now this is the guy who's the bitcoin so called maxi as the kids say.
[00:18:10] But all of a sudden he's talking silver.
[00:18:13] Connect the dots.
[00:18:16] If he can understand that. You know what, Geez, I thought bitcoin was going to take over the world, but wow, this silver has got me jacked up. You have to understand this is not a, I don't think this run is going to be sustained.
[00:18:33] Like we could. Peaks and valleys is what I expect.
[00:18:37] But at the same time, I'm telling you from my lens, silver is grossly underpriced and has been for years.
[00:18:48] And anybody who is stacking prior to this in anticipation of what we expected, we're celebrating. But many of us are not selling because we know there's an opportunity even higher. Is silver going to surpass gold? I, I don't think so.
[00:19:04] But let's say silver gets to like in my case, if silver got to $1,000, I wouldn't be happy with it. And you're like, if Silver got to $1,000, I would not be happy with that number. If silver got to gold's price now for $4,500, I still wouldn't be happy. It would take for me to say I'm comfortable selling mine.
[00:19:31] I would, I would probably have to see a $10,000 silver. I'll give you a $5,000 silver. Maybe, maybe.
[00:19:43] I, you know, it's one of those, I would think about it, $10,000 silver and I'm at the shop selling because there's no way, there's no way it goes higher than 10,000 bucks. I don't think it goes to 10.
[00:20:03] I'm saying that if the system and the markets shock me, 10,000 bucks is my sell point.
[00:20:11] I would happily offload my gold.
[00:20:14] And if we had a, because consider if we had a $10,000 silver, the price of gold would be absolutely ballistic nuts.
[00:20:26] It'd be ballistic nuts at that. And I do have some gold.
[00:20:30] I would. I don't think I would sell all of the gold I have. I'd probably sell a couple pieces just to like some of my excess stuff.
[00:20:39] I have some platinum.
[00:20:41] I. If I have a $10,000 silver going off what I see at the current prices, the prices of platinum and palladium are going to go nuts.
[00:20:51] Would I sell the two that I have their gram size if I recall, man, maybe just for cleanliness sake, but $10,000 silver, I would. I'm like, I'm good.
[00:21:08] And it would not make me a millionaire. That wasn't the goal for me because I was not confident and still am not that it's gonna go too much higher than like a thousand, two thousand bucks. Like I for me, my price target max as I wrap up $2,000 silver. That's my peak. That's the top.
[00:21:28] And there's people out here listening or not, that will tell me that I'm crazy. I'm shorting. I'm like, no, it's gonna go way higher. I don't see anywhere any realm that silver can go higher than 2000 simply because in what I see of the numbers, it's nigh impossible.
[00:21:53] Time will tell. And I figured I would record the episode so I have it documented so people can hold me accountable, which is the way I work, not bullshit censorship. I believe in holding people to their word so you can come back and say you, yes, you had it right. I'm giving you your credit or no, you were wrong and I'm holding you because you said that this is going to happen. I'm accountable for it now it's out there.
[00:22:17] Please be smart. If you do decide to get into silver, do not FOMO off the green.
[00:22:24] But if you're smart and go to a local shop, they might be able to take care of you, get you in at a good point and start a journey that might actually lead to something amazing at some point in the future.
