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Silver as we often talk about is gold on steroids. So silver will move probably two three times as fast as gold in the coming year and years. And therefore as I said, you must buy silver with two hands because it's a most incredible investment opportunity that you will encounter during your investment life.
And I repeat, hold your metals safely. This is your foundation of your wealth pyramid. In that environment, I would essentially recommend people to own some gold. Although I don't think that the gold price is cheap today. I think it's gone up a lot. But equally with Trump, I guarantee you that there will be money printing.
He has no respect for debts. He has no respect for anything. He will print for to stay in power. The recent pullback in precious metals has created intense debate among investors, but long-term trends continue to point toward major shifts in global markets. While short-term volatility can shake confidence, periods of correction often emerge during powerful secular bull markets and can create opportunities for patient investors.
Marc Faber, a veteran investor known for his contrarian market views, and Egon von Greyerz, a long-time advocate of wealth preservation through precious metals, argue that the current financial environment remains heavily influenced by debt expansion, monetary intervention, and structural imbalances across the global economy.
Their outlook centers on the belief that excessive money creation and growing fiscal pressures will continue to undermine the purchasing power of paper currencies while supporting hard assets over time. Silver receives particular attention because of its historical tendency to outperform gold during strong precious metals bull markets.
The argument is that silver's volatility works both ways, but once momentum returns, price movements can accelerate far more rapidly than those of gold. Recent weakness is viewed not as a sign of a broken trend, but as a normal pause within a larger upward cycle. Gold, meanwhile, continues to be seen as the foundation of wealth preservation.
Despite substantial gains over recent years, the broader thesis suggests that gold remains undervalued relative to financial assets, especially when compared with highly priced equities and technology companies. If monetary expansion persists and government deficits continue growing, both metals could benefit significantly in the years ahead.
; The opportunity to buy silver with both hands has now arrived. Let's have a look at gold. Gold is the king of the metals. If we're looking [clears throat] at the chart of gold for this century, gold has gone from $300, where we bought it for ourselves and for our investors, and is now around $4,200, having been around $5,000.
As you can see, gold had a correction, which has looked massive for some investors, but really, if you look at the move from the beginning of the century or even if you look at the move in the last 2-3 years, gold has doubled in the last 2 years. So, this correction, which is from an exponential move, remember, is just a normal correction from a big move, and it is soon going to be retraced and go to multiples of the current levels.
So, please, don't worry about the correction. If you don't have enough gold right now and keep it for the long term, because gold is going to go up by multiples from here. And it's the same with silver. Silver has gone from $4 this century to as high as $120. If you look at the end of the move, when it crossed $50 and up to $120, it's It's an exponential move.
It's impossible to time a correction of these type of moves. All you we can see is that as a percentage of the total move up from $4 and even from the $20 just a few years ago, this is a small correction and it will end very soon. Maybe here, maybe in a couple of weeks time, but when it turns, it will be violent.
Please don't wait to buy silver at $100 because you wanted the confirmation or at $120 because you wanted to go make new highs. Buy it here. Buy it now. Buy it at $65. If you didn't buy as I said when we recommended 25 years ago or if you didn't buy when you recommended it at around $20, please buy now because now is another opportunity where you can combine wealth preservation with massive investment gains.
If we look at silver the other way around, it's as we know, it's not silver going up. It's the dollar and the currencies going down. The dollar has lost about 94% of its value against silver since the beginning of the century and that loss will continue to a total loss of the value of the dollar. It could take 5 years.
It could take 10 years, but that's what happens at the end of every single monetary era and this is just another one in a chain of many, many where every currency has always gone to zero. Coming back to gold, the king of the metals. Now we think you can be overexposed to silver so you can maybe have 30% in silver of your total precious metals and 70% in gold.
So how much precious metal should you have as a percentage of your total assets? Well, we are extremely worried about virtually every investment market and we will talk about that in another video, but we think that stocks, bonds, property and many of the bubble markets and other investment markets will go down by at least 75 to 95% against gold and some of them like bond markets where there'll be defaults, it could be both sovereign defaults, and it could obviously be defaults by other parties.
That obviously leads to the bonds going down to zero. And that will be in combination with very much higher interest rates than we have today. So, if we look at gold here, I have this cube, total gold that has ever been mined in the world is 32 trillion dollars. Compare that to the 12 biggest companies in the US currently, and they had up to 30 trillion dollars.
So, all the gold in the world is worth just a little bit more than just the 12 biggest US companies. That shows you gold in relation to stocks is massively undervalued. Of course, it also means that stocks are massively overvalued, and will come down dramatically. Central bank gold today is just over 5 trillion dollars.
Just one US company, the third biggest, of course, Nvidia, is valued at over 4 trillion dollars. Can you imagine, the total gold held by all central banks is worth virtually the same as Nvidia, one US corporation. That is just not correct, and that relationship will be changed dramatically in the next few years.
Again, I could see Nvidia going down in this bubble of AI stocks by 90% or more. So, you could see the undervaluation of gold in relation to these bubble assets. And as I said, silver, as we often talk about, is gold on steroids. So, silver will move probably two, three times as fast as gold in the coming year and years.
And therefore, as I said, you must buy silver with two hands because it's the most incredible investment opportunity that you will encounter during your investment life. And I repeat, hold your metals safely. This is your foundation of your wealth pyramid. So, therefore, you must hold them in a way that they are absolutely safe, safe jurisdiction, safest private vaults in the world, and you obviously must have direct access to.
Thank you. There's a great misunderstanding, in my view, about what is economic growth, you know? And this is a As you say, we don't have enough time to talk about, but let's say you have an economy that grows on paper by 7% per annum. But what if the debt of that country grows by, say, 10% per annum?
How much real growth is there, you know? Very difficult to tell. All I can say is that there are two systems. Say, if I look at the 19th century, and for me, the 19th century America is the most amazing time you can imagine. There was also horror. The Civil War was one of the most horrible experiences anybody could have.
I mean, the destruction during the Civil War and the cruelty that was applied by the great generals, including Sherman and so forth, was horrible, horrible. But anyway, despite of all that, America developed from, say, 5 million people to 100 million people in 1900, and we had tremendous growth, and prices fell.
They were in 1900 no long and no higher than in 1800. Some prices, like transportation, of course, it was cheaper to ship something from the East Coast to the West Coast once you had railroads, and you didn't have to carry things on That's why I watch Western movies to see these columns of car horse carriages traveling through the continent.
It was horrible experience for the pioneers, horrible. But anyway, I think the growth at the time was so huge. And why did so many people come from Europe to America? Because the conditions in America were much better than in Europe. They didn't come because of social security. There was no social security.
There was more uncertainty in America than in Europe, but despite all that they went to America. They took the risk because there was the opportunity. No other country had that kind of opportunity. Because in Europe we still have had the royalties and so forth. So, anyway, that was in my opinion true economic growth.
What we produced in the last 40 years is largely illusory wealth. And I mean, and American economists do do not agree with everybody everything he said, Irving Fisher, because he was a eugenic. Right. He was the president of the eugenic society, but he he coined the expression the illusion of wealth.
And I have a book here called The Penniless billionaires. This is where we're heading to. Rich people You will have a billion. I will have a billion. Everybody will have a billion, and it money will be worthless. And in that environment, I would essentially recommend people to own some gold. Although, I don't think that the gold price is cheap today.
I think it's gone up a lot, but equally with Trump, I guarantee you that there will be money printing. He has no respect for debts. He has no respect for anything. He will print for to stay in power. More. And every government throughout history has printed money. A major concern highlighted throughout the discussion is the condition of the global financial system.
Massive debt levels, persistent fiscal deficits, and reliance on central bank intervention have created what many view as an increasingly fragile economic structure. Markets have become dependent on liquidity, and policy makers often respond to slowing growth with additional stimulus measures rather than allowing imbalances to correct naturally.
The expectation is that future economic challenges will encourage even more monetary expansion. As governments face rising obligations and political pressure to maintain growth, currency debasement becomes a likely policy response. Under such circumstances, traditional savings instruments and fixed income investments may struggle to preserve purchasing power.
Gold and silver are therefore viewed as financial insurance rather than speculative trades. Another important theme is the possibility that many conventional assets remain significantly overvalued after years of easy money. If stock markets, bonds, and real estate experience prolonged adjustments, capital could gradually rotate toward tangible stores of value.
Based on that perspective, the current correction in precious metals may ultimately be remembered as a temporary interruption within a much larger secular trend. Now, let's get back to the interview. They thought the whole system would break down by the end of the '80s. And you know, people sometimes ask me, "Mark, what has surprised you in life?" I studied economics.
I didn't study much, but later on I became interested and I read a lot of books and so forth. And in Switzerland, we were talking a lot about an economist Silvio Gesell because he is a nutcase. He wasn't Swiss, but he was thrown out of Bavaria and went to Switzerland and lived in a mountainous area, which is very poor.
But he wrote about and he also had a paper newspaper. I have still here some samples. He wrote about negative interest rates because he said thought, "If you have negative interest rates, then people will spend money and that will stimulate the economy." He was kind of actually Keynes. He wrote about the Silvio Gesell and said that he had very original ideas to get because Keynesian economics is about spending, whereas the more traditional economics, the Austrian, the old school, because America in the 19th century didn't have any economists.
That's why the country grew so rapidly in the absence of economists. The Austrians, they emphasize growth through capital investments, savings. You must save so you have money to build a bridge. You must save so you have money to build a railroad and so forth. Anyway, to make a long story short, this team, they thought the system would collapse by the end of the '80s.
And here, you and I were sitting and it's still functioning. I mean, it's not functioning very well, but if you go to Wall Street and you go to the private equity guys and so forth, they live in luxury. They will tell you, "You, Noble and you, Mark, you're completely wrong. We can keep on printing money forever." And this they will do until the breakdown occurs.
Now, I happen to think that this breakdown has begun and I want to tell you why. Last year was a very important year for asset markets. After 2010, the US stock market, specifically the seven magnificent seven stocks and the semiconductors and another 20 stocks, they went ballistic and the S&P has outperformed just about everything.
But last year was a big event in the sense that European markets and value began to outperform the funds. And you talked about the TLT chart and so forth. The TLT this year is down 1.6% and the fund stocks are down, say, 9% or 10%. So, you you know, there's a big change in the world also I came to Asia I've seen Eastern Europe and Russia before in the 60s already actually the first time I went to communist country is in the 50s I was about 7 years old because we went to Yugoslavia on a holiday to Dubrovnik in Croatia beautiful place anyway I've seen the poverty in Eastern Europe and the communism and I've seen the relative prosperity under capitalism but when I went to Hong Kong an American businessman rich from Chicago he came and asked me Mark why is it that Asia is so poor I laughed at him I said yes but it's going to be rich
and I'm in Taiwan in 1973 when I went the first time was really a poor just country now it's one of the richest societies the same for Singapore the same for South Korea at the other day a South Korean here is swimming in money they made a lot of money and I mean it's the huge changes so when I look at history 1950-1960 the dominant power in everything is America coming out of World War II now they are being challenged the first big challenge was when you started to work the 1970s Japan and then came Taiwan South Korea and the big event 1978 the opening of China that unleashed an incredible economic growth we've never gone China was [clears throat] 2% of world's consumption of industrial commodities in 1970 now it's 50% or more they produce more cement than the rest of world combined same for steel is that people in Switzerland they cannot cannot imagine the size of the Chinese market and India is now similar.
So we have big changes and I think you asked me what should people do? I think Americans should invest more in emerging economies. Beyond precious metals, the discussion explores the broader transformation taking place in the global economy. Economic power is gradually becoming more diversified. Asia's rise over recent decades is presented as one of the most important economic developments of the modern era, challenging assumptions that Western economies will permanently dominate global finance and industry.
At the same time, concerns remain about asset bubbles fueled by years of artificially low interest rates and abundant liquidity. Looking ahead, the outlook remains firmly centered on wealth preservation and purchasing power protection. The expectation is that monetary authorities will continue relying on money creation whenever economic pressures intensify.
If that scenario unfolds, gold could eventually move to substantially higher levels than today, while silver may outperform due to its smaller market and greater volatility. Although timing such moves is impossible. The long-term case presented is that hard assets remain among the most attractive defenses against currency depreciation, excessive debt accumulation, and structural instability in the global financial system.
Investors who focus on preserving real wealth, rather than chasing short-term market excitement, may be best positioned for the changes that lie ahead. . Mhm.
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