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But the fact that so many silver stocks are basically in bare markets when silver is trading at the second highest price that it's ever traded. It just shows you how quickly the sentiment soured just on a a sell-off. And remember, silver got down to about $46 and change at the low and now we're back up uh to 53 plus.
Uh, and as I said, 50 is no longer the resistance. I mentioned that on the podcast I did on Friday when I just got back from the New Orleans conference, and I mentioned that there wasn't a lot of uh exumemerism uh there. I mean, yeah, I mean, but it was tempered and there was a lot of people that were worried about a bigger correction, a lot of people talking about taking profits.
And what I was saying was the mistake that people are going to make in this bull market is taking profits too soon. Now, sure, you know, traders, you could have sold and bought back these gold stocks. They did have a big enough pullback. In fact, you could still buy back if you got out right at the top.
Uh but most people aren't going to get back in. They going to get out and, you know, they'll be waiting for a bigger correction. The corrections are generally very swift. maybe they're shallow and they're over with. A lot of people who probably bailed out aren't back in yet and the next thing they know we're going to be at record highs.
Now, certainly in the metals themselves, I mean, silver could easily hit a new record high this week. Uh gold, you know, is a little bit further from its high. Gold still has a couple of hundred to go because gold, I think, almost hit 5,400. Uh, so we need a bigger rally in gold than than we do in silver, but they're both likely to make new highs.
And I'm going to get into some of the fundamentals because there were a lot of very bullish uh news items um that we were getting in the market. I mean, of course, one of them, I think, is the end of the government shutdown. I mean, I mentioned that on the last podcast that it looked like it was getting likely that the shutdown would end and by Monday morning it was pretty much a done deal.
And and that was really the catalyst for the $100 rise in the price of gold. $100 plus was the end of the government shutdown. Now, a lot of people might have thought intuitively, well, wouldn't that be bad for gold? I mean, wasn't gold going up because the government shutdown was bad for the economy?
It was creating uncertainty and that that was benefiting gold. And so that once that uncertainty was behind us, once the government reopened and that was good for the economy, that would hurt gold. That's what a lot of people might have thought. But the opposite happened because the government reopening isn't bad for gold.
It's the government staying open that's bad for gold. Because when the government is open, it's doing bad stuff. It's spending a lot of money. It's borrowing a lot of money. It's printing a lot of money. The problem with the shutdown was we didn't shut down enough government. Maybe if we shut down a lot more government, that might have been bad for gold.
But the fact of the matter is it's business as usual in Washington DC. And that's good for gold because it means the reckless spending is going to continue. The money printing is going to continue. And so inflation is going to get worse. The dollar is ultimately going to crack and all of this is is bullish for gold and bullish for silver.
But before I get to some of the other uh things that happen, I also want to juxtapose what's happening in gold and silver right now to what's happening in in in crypto and Bitcoin and the whole crypto industry. And this is also happening in general because, you know, the Dow Jones hit another new record high today.
We're getting closer, right, to a 50,000 Dow, which doesn't really mean much in the context of $4,000 gold, right? The media won't talk to you about that, but we're at what 48,250 or so in the Dow. So, the Dow hit a new record high today, but the NASDAQ was flat to slightly lower on the day. Uh so you're getting more of a rotation continuing out of uh growth particularly technology stocks which have had you know they had problems last week and they're having more problems again this week.
So you're seeing some money coming out of the tech sector but before people started moving money out of tech they were moving money out of crypto is number one in crypto because the crypto bubble is deflating. There's a lot more air that's going to come out of this thing, but the country that leads in crypto is the country that's got the most to lose when the bubble pops.
So, because we're the leader in crypto, we're going to be the leader in economic damage done from the bursting of this bubble, right? There's going to be significant implications for the US economy, which is also good for gold because all of the losses and the malinvestments that are going to be exposed are going to help gold.
And of course, a lot of people that work in the crypto industry are going to be out of work. So, unemployment is going to go up. A lot of things are going to happen uh negative. I don't know if it's as as big or maybe it is bigger than the bursting of the dot bubble, but you know, if the AI bubble bursts and the crypto bubble, I mean, that's going to dwarf the dot bubble.
But I do think that the crypto bubble is bigger than the dot bubble all by itself. And we did get into a recession when the.com bubble popped, although we also had the September 11th um you know, terrorist attacks. Uh but I think we're already in recession. So I think that you know all the job losses and investment losses and remember you know people are going to react to this reverse wealth effect because I think if Bitcoin cracks this 100,000 I know it got below it last week got to 99 but you know they were able to circle the wagons and and prop it up but I think that if we crack and and and we really make a big drop in Bitcoin I mean even at like 50,000 which is still a really high price, you know, for nothing.
But, you know, I think the losses are going to be substantial. And of course, if Bitcoin goes to 50,000, a lot of these stocks that are down 70% are going to be down 95%. And of course, some of them are going to be down 100% because they're going to go bankrupt. And I think a lot of these Bitcoin treasury companies that bought up a lot of Bitcoin are going to be selling the Bitcoin they bought at big losses.
But when all these Bitcoin buyers turn into Bitcoin sellers, right, look out the way. And of course, the biggest seller of them all uh will be Micro Strategies. Now, I don't know how long Sailor can probably hold out more than most, but eventually uh he's going to be selling Bitcoin. Uh but it's this is a key thing to look at what's going on.
And I know for those of you who watch my podcast and yeah, you know, I've been saying this, I've been saying this. Yeah, I know Bitcoin's gone up a lot, but over the past four years, it hasn't. So, for all the people that were talking about the end of the bull market, there's only been one day that we've had a higher price.
Yet, despite that, there are plenty of silver stocks that are still in bare market territory. But people need to wake up and and smell the tulips here and realize that this trade is over, right? All the big money has been made. Now, the key is to get out. That's what they're trying to do. That's what all this stuff was about.
That's why they needed Trump in office. They needed they needed the US government uh to pump this thing up so they could dump. Get out. It's above a 100,000. You'll thank me later.
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