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I don't know the central banks. I know they have a lot of money and we have to pay attention to what they're doing. And at the moment, if they're buying silver, aroay, I own silver. I bought more silver recently, too. I'm not selling my gold. If gold goes down, I will certainly buy more gold. Even technical analysts that tend to push these movements from a momentum standpoint are beginning to see the probably greatest cup and handle we've seen in history that is still not you know have not ended.
The debate around precious metals often centers on timing and value and recent insights suggest the spotlight is swinging heavily towards silver. While gold continues to hit new highs, silver remains far below its historic peak, down over 40% from all-time levels. That discrepancy alone has caught the attention of seasoned investors who argue that the metal is fundamentally undervalued.
Silver, being a smaller and more volatile market than gold, often experiences sharper swings both up and down. But when momentum finally breaks to the upside, the moves can be explosive, delivering gains in a matter of days that take years to develop in gold. Jim Rogers, a veteran of global investing, highlights that the valid key lies not only in the metals themselves, but in the miners behind them.
Selecting the right projects with strong leadership, proven reserves, and profitability potential can yield outsized returns compared to holding the metal directly. But as he warns, choosing poorly can wipe out capital just as quickly. Tavi Costa, known for his work on macro cycles and debt dynamics, notes that the broader backdrop of loose monetary policy, mounting deficits, and global complacency is a setup ripe for higher inflation.
History has shown repeatedly that when governments inject easy money and avoid tough decisions, tangible assets like gold and silver become the ultimate hedge. Despite holding both metals, many investors are now leaning heavily towards silver, seeing it as a cheaper opportunity relative to gold. Meanwhile, the dollar, still viewed as a haven by many, remains in a precarious position.
If global confidence shifts decisively, America's significant debt load could lead to gold and silver reasserting their role as the world's most trusted safe havens. If you enjoyed this analysis, don't forget to like this video. Subscribe for more updates and share your thoughts in the comments below.
Well, I bought more silver recently. I did not I own gold. I didn't I've not sold any. Didn't buy any gold. It's making all-time highs. Silver's still down substantially from its all-time high. So, I have bought more silver recently. I'm too lazy. If you are not lazy and if you know what you're doing, oh my gosh, you can make staggering amounts of money.
If you buy the right miners, if you buy the right people and the right mine at the right place, you'll make much much more than if you just buy silver or gold. But you have to know what you're doing because if you buy the wrong mind, you're going to lose everything. Well, many of those stocks have already had big moves.
I mean it's not as though you are not the only person noticing what's going on. I mean many markets, many stocks around the world have had moves already. Mhm. This this bull market has been going on since 2009 and many companies around the world have have had good moves and are having good moves. I repeat, I am not selling short.
Maybe I should be but I have not started selling short yet. Well, many people have done studies that show you lots of easy money has got to go somewhere and it usually goes into goods and prices go higher. Lots of loose money, easy money has often led to inflation. It probably will. I suspect it will again.
I certainly would not sell inflation short. If anything, I expect more in the future. All of the above. I mean every country nearly every country in the world nobody is trying to cut back on the economy or on growth or on prosperity. No, I don't know of any country that is trying to cool things off.
Everybody is happy happy and that's great. I like being happy. I like for everybody to be happy. But I know when everybody is happy, we ought to start asking questions. It hasn't been historically. Normally, if you throw a lot more kerosene onto a fire, it usually have a hotter fire. And everything I can see, it means we're going to have more inflation in the world, not just in the US going forward because most governments in the world will have lots of free money, lots of easy money now.
And when everybody has easy money, that historically has usually led to more inflation. And if you ask me, it is going to lead to more inflation. Again, don't sell your silver. I am worried. I have a lot of cash, a lot of US, and it's US dollars, not other currencies. And because normally when there's a problem, people look for a safe haven.
Many people in the world still consider the US dollar a safe haven. It's not. The US is the largest debtor nation in the history of the world. But most people still consider the US dollar a safe haven. So I own a lot of US dollars. If and when problems come and the dollar goes up, I hope I'm smart enough to sell it.
Now your next question should be, okay, where will you put your money? And Danny, I don't have an answer. For one time in my life, I don't know where to put my money if I sell my US dollars. I don't see another currency at the moment. I own gold. I own silver. Sure, I can do more of that. But I am looking for a currency which is going to compete with the US dollar and I don't know what it is yet.
Theoretically, it would be the Chinese currency, but it's not a convertible currency yet. It's getting more convertible, but it's still not a fully convertible currency. So, you cannot have an international currency that's not convertible. So, I don't know. We have had basket currencies in the past.
Historically, they have not worked. Hooray. I hope it works. I don't own whatever the basket currencies going to be because I'm skeptical knowing the historical precedents. They usually don't work. I see currencies, the things that become money or the safe haven are usually a single focused currency or product such as gold or silver.
That's what historically has happened. I own silver and I own gold. It's just that silver is down. Silver's down 40% from its all-time high. Gold is making all-time highs. I own them both. But if I were buying one today, I would buy silver because it's it looks cheaper. Who knows if I know what I'm doing, but I'm just telling you the numbers would indicate that silver's cheaper.
I don't know the central banks. I know they have a lot of money and we have to pay attention to what they're doing. And at the moment, if they're buying silver, hooray. I own silver. I bought more silver recently, too. I'm not selling my gold. If gold goes down, I will certainly buy more gold. Silver's long-term technical picture is starting to resemble one of the most powerful setups in financial markets.
The classic cup and handle formation. Historically, this pattern develops over decades, marked first by a huge runup, then a deep correction, and finally years of basing before a renewed breakout attempt. That is precisely what silver investors are now witnessing. After its peaks in 1980 and again in 2011, silver endured painful drawdowns and a long stretch of stagnation.
But unlike the collapse of the 1980s, the recent decline was far less severe, leaving the groundwork for a more durable rally in the years ahead. What makes this moment unique is the strength of accumulation occurring beneath the surface. Even on days when gold falls, silver has shown resilience, often outperforming and attracting new buying interest.
That kind of behavior signals growing conviction. Analysts predict that silver will retest the $50 highs within the next 6 months, followed by a breakout to new highs within a year. The old saying that there are no triple tops underscores the probability that once silver revisits that level, the barrier will finally give way.
For miners and investors alike, the most significant risk in this setup isn't the market itself, but rising energy costs, which account for a substantial share of mining expenses. Companies with strong cost structures and efficient projects will be best positioned to capture the upside if silver breaks out as expected.
Let's get back to the interview. I think we'll see new highs in the next uh 12 months and I think we'll retest the highs in the next six months. So retesting meaning 50 in the next six and then breaking out to new highs in the next 12 months. I could be wrong on the timing, but it certainly seems like that that's a very intriguing timeline to follow because of the volume we're seeing of purchases on post days of declines.
We're seeing clearly the outperformance of silver even when gold is falling and uh the reaction that even technical analysts that tend to push these movements from a momentum standpoint are beginning to see the probably greatest cup and handle we've seen in history that is still not you know have not ended.
you know, we still need to see the other side of that handle uh really break out. And I do think from all technical formations, that is one of the most powerful ones that you tend to see. You know, the you know, if you think of how a cup and handle is formed, initiates with a large movement that is usually unprecedented, which happened in the 70s and then peaked in the 80s.
And then you have this complete loss of faith and a peak of a bubble. And that goes on for a long time 20 30 year 20 years or so of which was the case until the late 90s. And after we saw that that was the very bottom of that market. So, we went all the way up and created the beginning of another cycle, which was the early 2000s, until we retested the highs of of the prior bubble.
And so, investors look at those two things and say, well, that looks like, you know, that same issue we had in the past. And so, the selling becomes more pronounced at those levels. And it's normal to see that type of pressure creating another long-term decline. The difference is that this decline wasn't although it was very difficult for those invested in in in this industry.
I wasn't involved with the industry personally but I I you know clearly that decline really shaped the industry in a big way as well but it wasn't as deep and steep as we saw in the 80s. So that decline although marked you know in a huge way the history of silver it was it was definitely you know much easier to stomach relative to the 80s and so now you know we're seeing another movement to push again to that same level that we saw the peak of the bubble in prior times.
The thing is there's so much energy behind this to see the price breaking out. You know, there's a a joke that we say in markets, there's no such thing as triple tops. And there we have it. You know, approaching a triple top. There's going to be maybe a moment where we hit that 50. And nobody knows if that's going to be the case, but there's a very high likelihood that we may hit the 50 and people will say, well, that might be it.
We might hit a a peak here. I don't think that would be the case because cup and handles break out. And so, we may see a short-term movement. This is why I said six months to get a 50 12 months to go break it through it. But I do think regardless of the timing of how this whole thing will resolve, I think the resolution is we're going to see much higher prices.
So if you're investing in the space and you have that view, you can apply that in markets. You know, look at the the the the you know, if you're running a mining company, you can see this. All right. Well, you know, there's there's a clear path that we may see a break of silver prices. What is my biggest risk here?
One, that I'm wrong. You could always be wrong, but two, how do I secure my margin? Because that's the biggest thing. That's your biggest treasury. So, this is why I'm urging people in the space to say, protect your margin because your biggest risk right now is energy. It's not the stock market, it's energy.
And in some cases, investors may have issues with maybe labor costs and others. So depends on the structure of your cost, but usually energy is about 30% of your of your cost, particularly coming from open pit projects. And so yeah, that's the way I'm I'm envisioning this whole thing. And as an investor, if you are in that side of the market, then you know, act act accordingly.
you know, think about companies that will be in a great position if prices reach those levels and plan for that. You know, really try to plan for it and yeah, that's the way I I invest. That's the way I do my things. And uh you know, if things change and plans change and there's a another pandemic or something along those lines come and we have a major change in in markets, sure, I'm allowed to change my views.
But having a plan is important. And so that's how I'm trying to approach this as an investor. As silver approaches what could be a historic breakout, the implications extend far beyond just another price move. We're looking at the potential unraveling of decades of suppressed valuations, a reset of investor psychology, and a generational opportunity in precious metals.
The technical cup and handle structure that has been forming for years suggests that silver is coiling for something far greater than a short-term rally. Once the $50 barrier is tested again, the odds of a decisive breakout only grow stronger. Remember the saying, there are no triple tops in markets.
History shows that once this kind of resistance gives way, the resulting surge can be violent, swift, and transformative for portfolios positioned correctly. At the same time, fundamentals continue to support the trade. Central banks are already signaling their preferences by shifting away from treasury securities and toward tangible assets like gold and silver.
Investors at every level are recognizing that fiat systems are on borrowed time with debts spiraling and monetary credibility eroding. This backdrop is what gives silver such as potential, its downside appears to be limited. At the same time, upside could be dramatic, possibly taking us not just to $60 or $70, but well beyond $100 in the years ahead.
For mining companies, the challenge will be controlling input costs, especially energy, while preparing for expanded production. For investors, the opportunity lies in holding steady through volatility, recognizing that the real rewards will come when silver breaks decisively higher. Diversifying across both physical metals and carefully chosen miners may provide the balance needed to capture gains while managing risks.
This is the kind of setup that doesn't appear often. Decades of patience, frustration, and underperformance could finally be giving way to a breakout that redefineses silver's role in global markets. Whether you're a seasoned trader or a cautious saver, this is a story worth following closely because the next 12 months may change everything.
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