You’re watching Silver News Daily. Subscribe for more. Ten years from now, that $4,000 a month will buy a thousand dollars in goods and services. In other words, they will inflate away the real value of the obligation while paying the nominal value of the obligation. Anybody who lived through the decade of the 70s watched this happen. In real time, that is. I don’t see any way out, Dunnigan. This is just for me. An inescapable mathematical silver is standing at the edge of something colossal, and barely anyone’s paying attention. While the media fixates on stock market fluff and political theater, a quiet storm is forming.

One that could send silver past $500 an ounce and leave the financial world stunned. The signs are all around us. Inflation isn’t gone, it’s lurking. The US is drowning in over $36 trillion of debt. And while the Federal Reserve hesitates, the cost of living keeps grinding higher, eroding the dollar’s value month by month. But this isn’t just another inflation story. No, this time it’s different. Because silver isn’t just a hedge. It’s the metal the modern world can’t live without. From solar panels to electric vehicles, silver demand is climbing fast and supply just can’t keep up. Inventories are falling, mines are struggling, and the industrial sector is thirsty for every ounce.

Add in a brewing crisis of confidence in fiat currencies, downgraded US Credit, and geopolitical uncertainty, and you get a setup so explosive even seasoned analysts are whispering numbers they never dared say before. $100? Try $500. This isn’t a moonshot. It’s a fuse waiting to be lit. So what exactly is happening behind the curtain, and how close are we to the detonation point? Stick with me, because what comes next will change the way you see silver forever. I think that’s a really interesting topic, and I should start with the headline answer. I don’t know. It is interesting, I think for two reasons.

The Fed and the politicians would prefer lower interest rates, and they’re doing everything they can to buy down the front end of the curve. For the last 40 years, buying down the front end of the curve has worked. The lower end of the out end, the long end of the curve lower. That’s not happening anymore. So it would seem that we’re seeing the return of what Clinton termed the bond vigilantes, which is to say that the market seems to be controlling the long end of the yield curve rather than the politicians, which is an interesting set of circumstances.

I suspect that if interest rates were left to the market that interest rates would be much higher. Dunnigan, we’ve discussed on your show before the interplay between the deterioration of the purchasing power of the US dollar and interest rates. If you believe that the CPI stated rate of inflation at 2.5 is accurate, then a 5% long term yield is adequate. You’re getting a what? 2.5% real yield net of inflation in a riskless asset. If you believe, like I believe that the deterioration of the US dollar, the purchasing power of the US dollar is more like 7.5 or 8%, then current yields still aren’t sufficient.

You’re being paid 5% in a currency that’s deteriorating in terms of purchasing power by seven and a half to eight, which is to say you are losing 2.5 or 3% on your money. It would appear that both private savers afraid of this math and foreign governments both afraid of the math, the math and tired of the weaponization of the US dollar are less aggressive buyers of U S Treasuries than they were in the past. Where does this end? The truth is I don’t know. We’ve had 40 years, the period 1982 to 2022 of very benign times for the US dollar and the US political system.

My suspicion is that that’s over for a while. My suspicion is that things become more turbulent and interest rates, in addition to being subject to political manipulation are really a function of confidence. And enough confidence still exists that people still tell you with regards to equity markets as an example, buy the dips for myself, I wouldn’t buy a 10 year treasury or a 30 year treasury at any interest rate that didn’t offer me a 200 basis point or 2% real yield in excess of what I see as the decline in purchasing power of the dollar. Which is to say, I wouldn’t buy a 10 year or a 30 year that didn’t have a yield that was nine and a half or 10.

I’m way off market myself. For years we’ve been told the system is sound, the dollar is strong and inflation is under control. But the numbers tell a very different story. Since 2020, cumulative inflation has made everyday life nearly 24% more expensive. Think about that. What used to cost $1,000 now costs almost $1,240. And that’s with official numbers. Many argue the real erosion is even worse. In April 2025, inflation sat at 2.3%. Seemingly tame, but it’s the slow consistent burn that’s eating away at purchasing power. This isn’t just economic data. It’s a silent crisis in confidence. And when trust in a currency breaks down, people don’t wait around, they flee to hard assets.

In the 1970s, the US dollar lost 75% of its value and silver rocketed from $1.50 to nearly $50. Now, with inflation running stubbornly above 2% for years and central banks walking a tightrope between rate hikes and political pressure, we’re seeing a familiar pattern. Reemerge. Tariffs are back. Trade wars are simmering. Consumer sentiment is plunging. The cracks are spreading. People are beginning to understand what economists have whispered for decades. When a fiat currency starts to lose credibility, there’s only one way to protect your wealth. That’s why investors aren’t just buying gold anymore. They’re turning to silver, the underdog with a vicious upside.

Because when fear takes hold, silver doesn’t walk, it runs. And with the erosion of confidence already underway, silver’s time may be coming faster than anyone expects. Oh, you’re not thinking right. The government doesn’t particularly care about the rule of law in a bad situation. If the coins that you’re storing have melt value in excess of their stated value, then except for the problem of liquidity, which is to say you have to transfer them for something that you want, which is an extremely inefficient process, it is important that you maintain liquidity in US Dollars too. I know this sounds odd because there is a risk, I think a risk in the very long term of a currency reset.

The problem is that we have to live right now. I maintain substantial US dollar liquidity even though I know that having those dollars invested in very, very short term obligations, certificates of deposits from solvent banks, US short term, US treasuries, although I know that I’m getting paid 4.3 or 4.4% interest in a currency where the purchasing power is deteriorating by seven and a half or eight. I know too that I have to maintain liquidity. I’ve lived through several episodes of illiquidity, including that famous panic of 2008 and having the cash give both the tools and the courage to take advantage of that circumstance rather than being taken advantage of by that circumstance.

So by all means, save in gold. By all means, if you are concerned enough save in silver coinage without any sense that the government will back that coinage because of their quote promise. But also maintain liquidity in the currency that your life is denominated in, which is to say the US Dollar in very short term obligations don’t go up past three years on the Yield curve Debt isn’t just a problem, it’s a ticking time bomb. As of March 2025, the US federal debt has surged past 36.5 trillion cutbash trillionaire with over 26 trillion owed to the public and and another 12 trillion locked in intra governmental IOUs.

That’s more than the entire US economy produces in a year. And it’s not just the size of the debt, it’s the speed. We’re now adding around $4 trillion annually, compounding faster than we can count. Every day that passes, the government sinks deeper into a hole it can’t dig out of. And now, with the debt ceiling reinstated at 36.1 trillion in January and extraordinary borrowing measures projected to run dry by late summer, we’re staring down a potential default crisis. In May 2025, Moody’s responded, downgrading the US credit rating, citing an inability to address ballooning fiscal deficits. That downgrade wasn’t just symbolic, it was a warning shot.

Higher borrowing costs are already creeping in, pushing 30 year treasury yields back above 5%. That means servicing the debt now costs over $726 billion annually, 14% of all federal spending. But here’s the part the mainstream won’t tell you. As trust in US creditworthiness crumbles, so does trust in the dollar. Investors are scrambling for cover. And historically, when confidence collapses, silver shines. It’s not just a hedge, it becomes a lifeline in a world where fiat credibility is on the ropes. Silver doesn’t just protect your wealth, it could multiply it. And with debt spiraling and default no longer unthinkable, that moment may be closer than anyone dares to admit.

The question is, what might one buy? The US dollar, I think will do relatively well compared to many other fiat currencies. I believe that savers probably need to build a diversified base of short term currency savings accounts, more than one. I am heartened by the fact that there’s still a lot of liquidity in the system. And if that liquidity decided to come into any particular segment of the market, that segment would do well. There are literally trillions of dollars sloshing around looking for a home. In answer to the question, which is to say if people become afraid of the stability of the US economy, the first thing I have to say is where will they go? Perhaps they just go on strike and save.

I remember very well the period 1968 to 1982, the last period of serious debasement of US purchasing power. And with the exception of gold and resources, not very Much did well. We had a 14 year period where equity markets were stagnant and bond markets got clobbered. Is that going to happen again? I don’t know. I, on the one hand, am afraid of the fact that we are going into a period of increasing volatility with much higher government debt. That part scares me. At the same time, we are going into it with an immeasurably stronger private economy.

The increases in productivity that we have achieved from technology is spectacular. We can do more with less capital. I suspect that these two countervailing features, the incredible strength of our private economy and the incredible stupidity around our public economy, will interact with each other the way two great big weather systems interact with each other. That will have an awful lot of volatility, an awful lot of sound and fury. I wish I could tell the questioner how it’s going to end up. I don’t for myself, I try to buy the equity of very high quality companies that I understand.

I don’t buy the market, I buy individual companies. I do a lot of savings in gold, a financial asset that isn’t simultaneously somebody else’s liability. I also maintain liquidity in several currencies, currencies from countries that I invest in or like to visit. And I invest in two sectors that I know extremely well personally, conventional financial services and natural resources. Whether or not this is an optimal strategy, I don’t know. It’s the only one that I personally am comfortable with, and it’s the only one that personally goes to my strengths. Inflation is no longer a temporary nuisance.

It’s become a structural force, reshaping every corner of the economy. Even with the Federal Reserve holding rates steady in 2025, inflation has clung stubbornly above 2% with cumulative price hikes since 2020, pushing the cost of living into uncharted territory. But while the headlines might celebrate the cooling inflation rate, the reality on the ground tells a harsher story. Essentials, food, housing, energy have not come down. And now fresh tariffs are lighting a new fire under consumer prices, threatening to send them even higher. But inflation isn’t just about rising prices. It’s about eroding trust in the currency you earn, save and spend.

That loss of trust drives behavior. It drives investors into hard assets that can’t be printed, inflated away or manipulated. Historically, gold takes center stage when inflation runs hot. But silver. Silver is the explosive sequel. In both 1980 and 2011, when inflation anxiety peaked, silver’s price didn’t just rise, it soared, delivering returns far beyond gold. And with inflation now baked into the system. Thanks to years of money printing, trillion dollar deficits and geopolitical shocks, the setup for silver is nothing short of extraordinary. What’s more, central banks have quietly become net buyers of gold, signaling what they really think about inflation.

Meanwhile, individual investors and institutions are starting to see silver for what it truly is. Not just a precious metal, but a levered bet on inflation breaking free. And when the dam finally bursts, silver won’t just hedge inflation, it’ll ride it like a tidal wave. So if you stole all their money, not taxed them, stole all their money, you would solve the problem. Not the debt, just the increase in the deficit. You would fund the federal government for less than two years. So what do we do? Do we say to old guys like Rick Rule who paid into the system for 60 years, too bad, so sad.

No benefits, strong letter to follow. I think we fiddle around the edges, actually. I think we change the eligibility requirement. I think we make old fat rich guys like me pay Social Security on their full income as opposed to merely on the first 160,000. I think too, we means test Social Security. And so although we steal 6.2% a year from the Rick rules, we don’t give them any money. I mean, I think we do that. It becomes redistributive, but it doesn’t matter. Playing around the edges does not matter arithmetically. It just does not matter. What we do is we inflate away the net present value Rick Rule has been promised, whatever it is, 4,000amonth or something, and Social Security.

They will continue to give this old, fat, cranky libertarian $4,000 a month. But by the, you know, five, 10 years from now, that $4,000 a month will buy $1,000 in goods and services. In other words, they will inflate away the real value of the obligation while paying the nominal value of the obligation. Anybody who lived through the decade of the 70s watched this happen. In real time, that is, I don’t see any way out. Dunigan. This is just for me an inescapable mathematical truth. And I think it’s really important that this person asks this question because I think your viewers need to understand that the Commonwealth isn’t going to look after you despite their promises, you have to look after yourself.

It’s just simple arithmetic. If you think that retiring on a million dollars today is going to fund you sufficiently over 10 years because you can generate a 5% nominal yield, $50,000 a year, understand that that $50,000 10 years from now is going to buy you $12,500 worth of goods and services today. Ask yourself how you’re going to do on $12,500. Now, here’s where it all tightens. The supply crunch. Even as demand explodes, silver supply is hitting a wall. Global silver mining output is struggling to keep pace, weighed down by declining ore grades, underinvestment, and geopolitical disruptions in key mining regions.

In 2025, for the first time ever, industrial fabrication alone is expected to surpass 700 million ounces. While total global demand is projected to stay near 1.2 billion ounces. But production, it’s falling short. This mismatch is not a forecast. It’s already happening. The silver market is running a structural deficit year after year. Inventories are being drained above ground. Stockpiles that were once taken for granted are shrinking. And the physical market is getting tighter by the day. This isn’t just about temporary bottlenecks. It’s the result of years of underinvestment in exploration and development. Miners can’t just flip a switch.

New silver production takes years to come online and the pipeline is dangerously thin. The consequence? A market walking a razor’s edge. When industrial buyers can’t secure long term contracts, when retail investors flood in during a panic, when mints run out of blanks, prices don’t just go up, they spike. This is the kind of setup that catches everyone off guard. Because when a hard asset is in both financial and industrial demand and there’s simply not enough of it, price becomes the only balancing mechanism. And in silver’s case, that mechanism is about to snap. Endless debt is not an asset.

But the problem will resolve itself slowly over time, the same way the problem resolved itself in the decade of the 1970s. In the 1970s, according to the Congressional Budget Office of the United States, then called the Office of Management and Budget, the purchasing power of the US dollar declined by 75% in 10 years. The nominal value of debts, including government debts, stayed the same. But the net present value, the real value, fell as a consequence of the deterioration of the dollar. It’s important to note that, and I suspect that’s what happens this time. Let’s look, just for fun, at the arithmetic.

The aggregate private net worth of American citizens according to the IRS is $141 trillion. Pretty good. We’re rich, right? The on balance sheet obligations of the US Government. Just the US Government. Not federal, state, pardon me, not state or local governments. Not private debt, not corporate debt. That number’s 36 trillion. About to be 37 trillion by itself. That’s likely manageable the off balance sheet liabilities of the US Government, however, Medicare, Medicaid, Social Security, federal pensions, military pensions, all that stuff, that’s $100 trillion. Add those two numbers together, 36 and 100, you come with 136 trillion. Now subtract that from the aggregate net worth of Americans, 141 trillion.

The number that you have left over is not a big number, but it gets worse every year. The on balance sheet liabilities of the US government get worse by $2 trillion a year. And the off balance sheet liabilities, the net present value of looking after old folks like me increases by 2 trillion a year. In other words, that 136 trillion dollar number gets worth by $4 trillion a year. I’m going somewhere with this. By the way, Kaiser, this isn’t just Iran. The big thinkers in Congress say tax the billionaires. Increase the taxes on the billionaires. Here’s their problem.

Here’s another problem. The billionaires have an aggregate net worth of $6.7 billion. Just before we get going, we just launched the official Silver News Daily Telegram. To kick things off, we’re running a 10 ounce silver giveaway. Yes, real physical silver. Not a voucher, not digital credits, actual bullion. This telegram will be our new home for real time silver discussions, market insights, collection picks and everything. Precious metals. It’s where the community truly comes alive. Here’s how to enter the 10 ounce silver giveaway. Be subscribed to Silver News Daily on YouTube. Turn on the notification bell, comment 10 ounce giveaway on three separate videos.

Be an active member of the Telegram group and say hi. Once we hit 500 Active Telegram members, we’ll pick one lucky winner to receive 10 ounces of silver shipped directly to you. So get in early. Stay active. Interest rates were supposed to cool the fire, but instead they’ve fanned the flames. After slashing rates aggressively in 2024, the Federal Reserve has held steady in 2025, refusing to act as inflation proves stickier than expected. As of late May, the 30 year treasury yield is hovering just over 5%, levels not seen consistently since 2023. That might seem like a stabilizing move, but in reality, it’s a trap.

High rates are crushing government budgets, raising the cost of debt service and pushing America’s already unsustainable fiscal position closer to collapse. But here’s the paradox. While higher yields might sound like bad news for precious metals, silver refuses to follow the old rules. That’s because rates are no longer just an economic tool, they’re a political battleground. Every tick higher increases pressure on Washington. And every hint of economic slowdown brings the threat of renewed money. Printing markets know this. They know the Fed is boxed in. And when the next crisis hits, whether it’s a debt ceiling standoff or a sudden slowdown, the pivot back to monetary expansion will be swift and silver will be the first to react.

Meanwhile, silver’s industrial side insulates it from the worst of the rate pressure. As long as infrastructure spending continues and electrification ramps up, the metals utility keeps it in demand even when safe haven flows waver. And in a world where monetary policy is driven by fear and dysfunction, silver thrives not just as a hedge, but as a bet on policy failure. This is no longer a game of inflation versus deflation. It’s about trust versus collapse. And silver is increasingly seen as a weapon in the fight for financial sovereignty. Unlikely that it goes to zero. Fiat currencies have utility.

And outside a fairly small circle, many of whom listen to Dunnigan Kaiser, most of society is unaware of the concerns that we express. Remember that as Doug Casey describes the dollar, it’s a floating abstraction. It is a medium of exchange that’s supported by faith. And it has a lot of faith if you compare it with other fiat currencies, not in an absolute sense. Again quoting Doug Casey, it’s the prettiest mare at the slaughterhouse. The US dollar doesn’t go to zero. The US dollar didn’t go to zero in the 1970s, but it did lose 75% of its purchasing power.

The minimum wage debates that we’re seeing right now are a wonderful example of that. The min in 1970, I think was a buck and a was a dollar and 25. In other words, five silver quarters. Five silver quarters today would yield you 21 or $22. That isn’t merely a means to advocate for silver. It’s suggesting the pernicious ongoing deterioration of the purchasing power of the US dollar. But I don’t think that the US dollar goes to zero. That doesn’t mean that you should hold US dollars long. They lose enough of your purchasing power that you need not to chase the yield curve.

You need to confine your maturities in US dollars to one years, two years or three years, nothing longer than three years. And you hold US Dollars only to maintain your liquidity. If silver itself is the canon, the then silver miners are the gunpowder. And in a bull market, they ignite fast. Historically, when silver moves, mining stocks don’t just follow, they multiply. In past cycles, top tier silver equities have returned 3x 5x even 10x the gains of the metal itself. And right now, many of these companies are still trading at depressed valuations, priced for a market that no longer exists.

Here’s why that matters. As silver’s price rises, miners see their margins explode. Production costs stay relatively stable. But selling prices climb, turning barely profitable ounces into high margin windfalls. This leverage is why silver equities are often the most aggressive way to ride a Silver Bull. In 2011, as Silver approached $50, certain mining stocks went parabolic, delivering returns that left gold miners and even the metal itself in the dust. But it’s not just about price leverage. It’s also about scarcity. The number of quality silver miners is shrinking. Decades of industry consolidation and underinvestment have left a small pool of pure play opportunities.

That scarcity, combined with growing demand from ETFs, institutions and momentum traders, means any breakout in silver could send miners into orbit. Of course, the volatility cuts both ways. These stocks are not for the faint of heart, but for investors willing to stomach the ride. The potential upside is unmatched. When silver moves, it doesn’t just lift its own price. It sends shockwaves through the entire mining sector. And with the setup we’re seeing now, the tremors may already be starting. Rate taking is a contingency as opposed to a certainty, and my suggestion is that you face greater risks that you need to address with more urgency.

The greatest risk for most investors, and I’ve learned this by grading tens of thousands of portfolios, is their own naivete, their own lack of work. In other words, your greatest financial risk is conveniently located to the left of your right ear and to the right of your left ear. To be concerned about the great taking is something that you should address after you have addressed other things. Are you living within your means? Are you saving and investing prudently? The delta between your production, which is to say what you make, and your consumption, which is to say what you consume.

It’s all very well and good to say I’m afraid of Biden or I’m afraid of Trump. The truth is that neither Biden nor Trump know that you exist. The biggest determinant of your success and your failure is going to be you. So address the things within your control before you worry too much about the big picture aspects. Certainly, if you are concerned about the taking, really concerned about the taking, then you have to do something. You have to, as an example, perhaps buy physical gold and store it outside the United States so that you can protect yourself from the Depredations of your own government.

That is ensuring against a contingency. But remember to pay attention to what you can control. And what you can control is you. The delta between what you produce and what you consume is called savings. There needs to be some. Society is not going to save for you. They’re going to redistribute as much of what you have already saved as they possibly can. So you need to increase your savings, you need to safeguard your savings. And you need to invest in your own education so that you can invest those savings prudently to guarantee a future that society won’t guarantee you.

The gold to silver ratio isn’t just a statistic, it’s a signal. And right now it’s screaming. In May 2025, that ratio stands above 100.1, meaning it takes more than 100 ounces of silver to buy a single ounce of gold. Historically, that’s extreme. Over the past century, the average has hovered closer to 50.1. And every time we’ve seen a ratio this high, a massive silver rally wasn’t far behind. This ratio reflects one simple truth. Silver is undervalued, wildly undervalued. And markets don’t let such imbalances persist forever. When the ratio reverts, and it always does, silver tends to outperform gold by a wide margin.

In 1980, it fell to 15.1. In 2011, it dropped below 40.1. And each time, silver didn’t just catch up, it sprinted past, leaving gold in its wake. But here’s what makes today different. This isn’t just about mean reversion. Gold is already near record highs, driven by central bank buying and geopolitical fear. That tells us the metal narrative is alive and well. Yet silver, with both monetary and industrial demand surging, is still lagging. That disconnect is the opportunity. A reversion to even 50.1 with gold at $3,000 implies $60 silver. A drop to 30.1, that’s $100 silver. And if the financial storm intensifies, we could go even lower.

Traders, institutions and long term holders are watching. They know the ratio is unsustainable. They know what happens when silver starts to move. And if history is any guide, once it starts, it doesn’t just balance the ratio, it blows it apart. I see it as a factoid. I see it as, other than psychological, irrelevant. The idea that the relative presence or absence of either gold or silver in the earth’s crust relative to each other has some impact on their value doesn’t make any sense. To me, as an example, most gold is produced from gold mines, so the input costs are well known.

Most silver is produced as a byproduct of base metals production. Often the silver stream on a copper mine has negligible cost. There are utility differences, too. So while I think that the gold silver ratio has psychological value, that is, it has value in the near term because people think it has value, I’m not sure what the ratio has anything to do that the ratio has anything to do with the relative utility or hence the relative price of either commodity. What the gold silver ratio would be useful is in a speculative situation where the silver price tripled.

If the gold silver ratio were to fall from 100 to, say, 35, the pundits for silver could say it’s still undervalued. It could still go to 16 to 1, which is the ratio suggested by their relative abundance in the Earth’s surface. In other words, it’s a factoid useful for traders. Irrelevant. Otherwise, all it takes is a spark. In a world teetering on the edge of economic instability, the right geopolitical shock could be the catalyst that turns silver’s quiet climb into a vertical launch. And 2025 is packed with fuses. Trade tensions between the US and China are back in the headlines.

Tariff escalations are already stoking inflation fears. Meanwhile, political uncertainty looms, with elections approaching, populism rising and fiscal policy swinging between chaos and collapse. At the same time, central banks around the globe are scrambling. Inflation isn’t playing by the rules, rate hikes aren’t curing it, and monetary policy has turned into a guessing game. The Federal Reserve’s cautious wait and see stance reflects just how fragile the system really is. One wrong move, a credit event, a banking hiccup, a failed debt ceiling negotiation, and the market could snap. In that kind of chaos, liquidity flees paper and runs to metal.

Silver doesn’t just rise in these moments, it surges. But there’s more. Policy shifts aimed at accelerating the green transition. Subsidies, infrastructure spending, tax credits are doubling down on silver’s industrial use. Every headline about renewable mandates or EV rollouts is another notch in silver’s favor. It’s rare for a single asset to be driven by both fear and innovation, by both monetary panic and industrial ambition. But that’s exactly what’s happening now. Silver is sitting at the crossroads of financial fragility and technological transformation. It’s not a question of if one of these wildcards will hit, it’s which one will strike first.

And when it does, the silver market could respond In a way we haven’t seen in decades. Yes, traditionally, silver needs to establish the momentum for silver stocks to run, just like gold needs to establish momentum for gold stocks to run. What has happened in prior bull markets I lived through three is that as the silver price exceeds or outpaces the inflation in the inputs to produce silver, then the margin in silver producers starts to increase. That is to say, they earn more money. At the same time, the multiple increases too. Because the silver narrative has been justified by silver’s price action.

This combining increased earnings with an increased multiple yields really truly quantum improvements. Donegan, we’ve talked about this on your show before, but it’s worth repeating. In the silver equities, a little bit goes a long way. You don’t want to over invest in silver equities because you don’t know when they’re going to run. And they subject you to incredible volatility while you wait. You run a huge risk if you’re not a professional investor in getting shaken out. Sort of like a person running a concession stand at a rodeo, jumping on a bull, you know, it’s just not a good idea.

When they go, they really, really, really go. It’s. It’s really difficult to describe if you haven’t seen it. I remember in the Decade of the 70s, Coeur d’ Alene Mines, 1970 was a 10 cent stock. 1980 was a $65 stock. I was too young, too dumb, too poor to take advantage of that circumstance. Although I sure noticed it, by 1989, 1990, I was ready for that market. We prepared a couple ways. One, Silver Standard Resources, $0.72 to $45. The other, the aforementioned Pan American, $0.50 to $45. So by all means, buy yourself a portfolio, a small portfolio, one where you can psychologically and financially afford the volatility that you’re going to enjoy, if that’s the right phrase.

Knowing that if we see a bull market like we’ve seen in the past, that that portfolio of high quality silver stocks could yield you tenfold returns. All the forces are converging. Runaway debt, persistent inflation, exploding industrial demand, and a brewing storm of geopolitical and monetary uncertainty. This isn’t just a perfect storm for silver. It’s a historic setup. Analysts once whispered about $50 silver as a ceiling. Now they’re beginning to ask, what if there is no ceiling? What if in the chaos of a financial reset, silver doesn’t stop at $100 but keeps climbing? What if $500 isn’t fantasy but inevitability? Because in the face of eroding fiat trust, supply chain breakdowns and and structural shortages, Silver isn’t just a metal anymore.

It’s insurance. It’s leverage. It’s an escape hatch from a system that’s running out of rope. And as that system buckles, the rush into hard assets could be unlike anything we’ve seen before. You won’t hear this from Wall street. You won’t hear it from the mainstream media. But the signals are loud for those who are listening. So if you see the signs, don’t wait for the headlines. Silver’s next move could be violent, fast and historic. And those who are positioned early will be the ones who benefit the most. If you found value in this discussion, make sure to subscribe so you never miss an opportunity in these unfolding financial shifts.

And remember, this is not financial advice. Speak to a licensed professional before making any investment decisions. I don’t think you need to go beyond the majors. The truth is that if we have a silver equities bull market, and I believe we will, the majors will give you four or five or six fold returns with very little operational risk. The penny dreadfuls will have outliers that give you 20 fold returns, 30 fold returns or 40 fold returns. Will you do enough work yourself to learn how to differentiate between the good, the bad and the ugly and the penny dreadfuls? Because a portfolio of penny dreadfuls over time will go to zero.

That’s what will happen. An ill chosen portfolio of penny dreadfuls in any commodity will go to zero. For most people. Dunning and I’ve graded tens of thousands of portfolios over the last 25 years. And what I’ve come to learn doing this is that for most people, people who have lives, they like to read books, they have jobs, they like to play with their grandchildren, they like to garden, they don’t like to study the manisha of penny dreadful silver stocks and familiarize themselves with local politics in Guatemala or Mexico. For those people buying the biggest and the best, the highest quality guys, the lowest cost producers, the people with the best balance sheets, the people with a cultural history of effective reinvestment of capital, when those stocks in a bull market, ones that exhibit minimal operational risk, can generate 4 or 500% returns over four or five years, the idea that somebody would wreck one’s life or risk needing psychological help to get a 10 bagger or a 12 bagger, one wonders.

Now understand, I do a lot of work. I don’t have a life. And so I do have a portfolio of what I consider to be the best of the best penny dreadfuls. But for most people, owning the highest quality silver companies and being prepared to stomach volatility and remembering, by the way, in a silver bull market, where your mind is giving you every reason to owe them, that to make the money you must take the money, which is to say, at some point in time in the market, you have to sell these things. That’s, for most people, the best course of action.
[tr:tra].

See more of Silver News Daily on their Public Channel and the MPN Silver News Daily channel.