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I think we may go up again and exceed the price of gold. So here you have an asset that has a large upside potential with a limited downside risk whereby limited is 30%. Compared to gold just about everything is quite cheap. But you have to understand gold has some qualities the others don't have. And the central banks not being particularly bright, they accumulate gold.
They don't buy platinum and silver. Mark Faber, a Swiss investor and market commentator known for his contrarian views and bold economic forecasts, believes that gold still has room to rise and may surpass its previous highs, presenting what he sees as a strong investment opportunity with significant upside and a relatively limited downside around 30%.
This outlook comes at a time when many investors might question whether gold has become overextended after its spectacular performance. The price of gold has shattered so many price records in recent years that it's almost become commonplace. Up by more than 90% since June 2020, gold has become much more expensive to invest in for beginners and much more lucrative for those who have already added the yellow metal as part of a small but critical part of a diversified portfolio.
When comparing precious metals options, Faber acknowledges that silver appears cheap relative to gold. But he emphasizes that gold possesses unique qualities that other metals lack. He points out that central banks, despite not being particularly intelligent in his view, continue to accumulate gold rather than silver.
Both silver and gold can function as safe haven assets, but gold tends to have a better track record over long periods of time. That said, over shorter periods, the specific dynamics of each market end up being more important to their respective returns. Central banks worldwide have significantly increased their gold purchases in recent years, creating substantial upward pressure on prices.
Poland has emerged as the largest buyer in 2023 and Q1 2024, adding over 130 tones to their national reserves. Before we dive deep into the video, don't forget to like and share it. Thanks to your incredible support, we've hit 1,000 subscribers, let's keep the momentum going. So, make sure to subscribe and help us grow even more.
Your support truly means the world to us. Also, if you have an exposure to Nvidia or an American company and you sell it and you want to take it home and exchange it back to say, I don't know, British pound. The only problem in that view is that the other currencies are not very desirable either. So the only way to exchange something that would be desirable would be essentially to sell holdings in dollars and transfer them into precious metals.
But this has happened to some extent. Not much yet among individuals. Individuals I mean in your circle you can go around sher and so forth and ask people they don't own any gold. They will say yes we own some gold. I inherited from my grandmother three finally. These are Swiss num they have some numismatic value.
But in general, people they own more Tesla and Nvidia and uh Facebook and so forth. And it's interesting although the price has gone up, the ownership in ETFs hasn't gone up. Normally, you know, I lived through the 70s, I can tell you in the 70s in Hong Kong, the big thing was London gold trading. Everybody knew 24 hours a day what the price of gold was.
Everybody was trading in gold. I was running the office of Drexler Bernham Lambert at the time and because we didn't have internet in those days and the facts just was coming up. Uh people came to your office at night there was a visitors gallery. We had a visitors gallery. Then people would sit down and trade with the traders the whole night.
Or if you go around America, you ask people, most people don't know what the value of a gold coin is in America. If you go to the street of Los Angeles or any city, you show them a coiner of say an ounce of gold. An ounce of gold is worth more than $3,000 at the site. You show them $20 bill. You tell people you want a $20 bill here now that I give you or the $50 or $10 or you want a coin of gold my here is physical is worth much more they will choose the $20.
I think we may go up again and exceed the price of gold. So here you have an asset that has a large upside potential with a limited downside risk whereby limited is 30%. Compared to gold just about everything is quite cheap. Yeah. Yeah. That's right. But you have to understand gold has some qualities the others don't have.
And the central banks not being particularly bright they accumulate gold. They don't buy platinum and silver. I mean best if he was so smart he should buy up the whole supply of platinum and drive up the price 10 times. That's what he should do. The treasury in America they should have bought gold for the last 40 years.
Yeah. And we don't even know they could issue money. They could issue dollars and buy gold. As gold continues its remarkable ascent. Mark Faber is turning attention to opportunities across the broader precious metal spectrum. He points out that mature investors often hold precious metals and while gold has seen significant gains, other metals like platinum and silver have not risen as much.
He notes that platinum is beginning to catch up and silver remains relatively undervalued. This perspective aligns with recent market analysis from leading financial institutions. Gold's price prospects are skewed to the upside over the next 18 months, while silver and platinum are projected to build on their recent strength through 2026.
According to precious metals analysts at the World Bank, the institution's research highlights the momentum building across the precious metals complex. Market performance data supports this outlook. Precious metal prices surged to record highs in the first half of 2025, building on a 20% increase in 2024, reflecting the sustained investor interest in these alternative assets amid economic uncertainty.
Let's get back to the interview. If you look at longer term uh trends in interest rates in particular in the 70s when the rate of inflation was uh what it was recently in the 70s we were already on the 10 years treasury over 6%. So the current rate of interest rate is not particularly high historically seen and in my view to push interest rates down at the present time as Mr.
Mr. Trump and Mr. person would desire to do would imply essentially an artificially low rate of interest that may trigger again uh inflationary pressures. The inflationary pressures are not over. They're still there and the impact of the tariffs on prices are still there. And so the bond market actually uh has reacted quite uh in an interesting way when um the announcement came that the package was signed and uh came through the bond market sold off.
So my view is that Trump he would like to have lower rates because obviously the interest expense that the government is uh paying on the debt is the fastest growing budgetary item. And over time, in my view, with the deficits such as we have over time, it's likely that the interest payments on the debt will eat all the tax revenues.
You understand? And that is then a situation which will be very difficult to uh prevent hyperinflation because you have to monetize that debt as it is already happening at the present time. So my view is that the uh the the intention by Trump and Bessant to lower interest rate is backfiring very badly and the more uh let's say mature people they own precious metals and precious metals have gone up a lot I mean not all of them gold has gone up a lot platinum hasn't gone up a lot yet but is now catching up and silver has gone up but not that much.
So, so we can measure relative to gold how are the other precious metals? I would say silver and platinum are relatively attractive at the present time. Well, if you ask me directly, I think it's almost inevitable because you have democracies. In democracies, the tendency for hyperinflation will be very high because the system is built on votes and you have to please people.
So the way to please people to vote for you is to promise them all sorts of um goodies, all sorts of benefits, subsidies, uh paying less for services and so forth and so on. And that these measures all create essentially a deficit both parties. So the incentive is actually in democracies to have budgetary deficits that increase the government debt and by definition this will then lead to higher inflation because someone has to pay for something.
Faber's investment thesis extends beyond gold's proven track record. Comparing them to gold, Faber sees both silver and platinum as relatively attractive investment opportunities at the current time. This view suggests that while gold has captured headlines with its record-breaking performance, other precious metals may offer better value propositions for investors seeking exposure to the sector.
The enduring appeal of precious metals lies in their unique investment characteristics. Precious metals like gold, silver, and platinum may not generate income, but they still hold a distinct place in investment strategies. Investors continue to turn to them for one reason. They behave differently when markets break down.
Gold continues to lead with strong gains, reinforcing its established role as a reliable store of wealth. In contrast, silver remains relatively undervalued, offering a compelling opportunity for investors seeking both value and growth potential within the precious metal space. Recently, the silver market marked a significant milestone with prices surging to a 13-year high of approximately $36 per ounce in June 2025.
This breakout represents the highest level since silver's run toward $50 during the major bull market cycle of 2011 to 2012. Will gold and silver continue their rally into 2026 and reach new all-time highs? Share your thoughts in the comments below. And don't forget to subscribe to help us hit our next milestone of 2,000 subscribers.
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