SILVER - We're Going 'Much Higher' Than $1,000: Michael Piccioni

Commodity Culture: Interview with Michael Pachoni – Silver & Precious Metals Market Analysis (January 28, 2026)

Key Concepts:

• Silver Price Surge: Rapid increase in silver price, currently around $114/ounce, exceeding bullish expectations.
• Four-Digit Silver: Prediction of silver reaching $1,000+ per ounce, potentially even $2,000-$3,000.
• Retail Participation: Increasing, but still low (less than 1% of North Americans own precious metals), with potential for further growth.
• Bank Manipulation: Allegations of historical and potential ongoing manipulation of silver prices by large financial institutions (e.g., JP Morgan).
• East-West Disparity: Greater understanding and acceptance of silver as money in Eastern countries (China, Vietnam, India) compared to the West.
• Gold/Silver Ratio: Current ratio of 45:1, historically ranging from 16:1 to 120:1, with implications for investment strategy.
• Central Bank Buying: Significant driver of gold price increases, with central banks reducing US Treasury holdings and increasing gold reserves.
• Goldbacks: Physical gold currency gaining traction, particularly in Utah, offering a potential alternative to fiat currency.
• Supply/Demand Dynamics: Silver supply shortages (approximately 200 million ounces annually for the last 5 years) contributing to price pressure.

1. Silver Price Analysis & Future Projections

The interview centers on the recent dramatic rise in silver prices, currently around $114 per ounce as of January 28, 2026. Michael Pachoni acknowledges the volatility of silver (daily fluctuations of 5-8%) but advocates for a long-term investment perspective. He believes a correction of 20-30% is possible, but unlikely in the immediate future, potentially occurring around the $200 mark. Pachoni is a proponent of “four-digit silver,” predicting prices could reach $200-$300 in the near term, with potential for significantly higher values ($1,000+ and even $2,000-$3,000) contingent on gold’s performance. He emphasizes that waiting for pullbacks could result in missing out on substantial gains.

2. Retail Investor Participation & Regional Differences

While retail investor interest is increasing (Can-Am Bullion experiencing increased foot traffic and sales), participation remains low in North America (less than 1% owning precious metals). A key distinction is drawn between Eastern and Western investors. Countries like China, Vietnam, and India have a long-standing understanding of silver as a form of money, while Western retail investors are largely unaware of silver’s investment potential. Pachoni believes increased Western retail participation could fuel the next leg up in silver prices, but currently views it as a relatively small component of the overall market. He notes a trend of some investors taking profits after long-held positions, particularly those who purchased silver at significantly lower prices.

3. Bank Influence & Market Manipulation

A significant portion of the discussion focuses on the potential for manipulation of the silver market by large financial institutions. Pachoni highlights JP Morgan’s past convictions for market manipulation and suggests banks may be shifting from short positions to long positions, driving the recent price surge. He notes rumors of banks closing out short positions and accumulating physical silver, with speculation about JP Morgan holding 750 million ounces. He cautions that banks could reverse course and re-establish short positions, potentially causing a price decline, but views this as a buying opportunity. The disconnect between the price of silver on the Shanghai Exchange (approximately 10% higher) and the COMEX is cited as evidence of market dynamics beyond Western influence.

4. Gold & Silver Relationship & the Gold/Silver Ratio

The interview explores the relationship between gold and silver, noting that silver has historically lagged behind gold in price appreciation. Pachoni explains that the current gold/silver ratio of 45:1 is approaching a more normal level after reaching a historically high 120:1. He suggests that silver is “catching up” to gold and anticipates further narrowing of the ratio, potentially reaching 10:1 if gold reaches $20,000/ounce. This dynamic suggests continued upside potential for silver. He notes a trend of some investors selling silver to invest in gold as the ratio normalizes.

5. Central Bank Activity & the Future of Gold

Pachoni identifies central bank buying as a primary driver of the gold market, emphasizing their increasing divestment from US Treasuries and accumulation of gold reserves. He believes this trend will continue, driven by a lack of confidence in fiat currencies and the US dollar. He anticipates a potential re-introduction of gold into the monetary system, citing the BRICS nations’ efforts to create a gold-backed currency and potential US initiatives involving gold-backed bonds and blockchain technology. He suggests a Trump administration might be more likely to revalue gold and strengthen the US position. A revaluation to $20,000/ounce could significantly improve the US balance sheet, although he doubts the US would sell its gold reserves to pay off debt.

6. Goldbacks & Alternative Currency Systems

The discussion touches on Goldbacks, physical gold currency gaining acceptance in Utah and other areas. Pachoni views Goldbacks as a positive development, offering a tangible alternative to fiat currency and potentially increasing mainstream awareness of gold’s value. He acknowledges the higher premiums associated with Goldbacks but sees them as useful for smaller transactions and as a hedge against systemic risk.

7. Can-Am Bullion & Precious Metal Storage

Michael Pachoni provides an overview of Can-Am Bullion, a currency exchange and bullion dealer based in Windsor, Ontario. The company offers a range of precious metals products and services, including online sales throughout North America. He discusses the company’s storage options, utilizing Brink’s vaults in Canada, the US, and Switzerland. While acknowledging the preference of some stackers to hold physical metals directly (“if you don’t hold it, you don’t own it”), he emphasizes the security of Can-Am’s storage facilities. He cautions that vaults could be vulnerable to government seizure in a crisis.

8. Actionable Insights & Key Takeaways

• Don't fear the price: The current silver price should not deter new investors.
• Long-term perspective: Precious metals are a long-term investment.
• Diversification: Diversify your portfolio beyond stocks, bonds, and real estate.
• Silver's potential: Silver has significant upside potential, potentially outpacing gold.
• Monitor the gold/silver ratio: Use the ratio to inform investment decisions.
• Be aware of bank influence: Understand the potential for market manipulation.
• Consider storage options: Evaluate the risks and benefits of storing metals yourself versus using a secure vault.

Notable Quotes:

• “Long-term, the upside in silver is enormous.” – Michael Pachoni
• “If you wait for a pullback and wait for a pullback, and if you were doing that the last few months, you would have missed this entire move.” – Michael Pachoni
• “The retail market is such a small component of the overall silver market.” – Michael Pachoni
• “The banks are obviously either going long or closing out their short positions. And I think that's what's driving the market right now.” – Michael Pachoni
• “This is the biggest transfer of wealth in history. And I think it's also the biggest opportunity.” – Michael Pachoni

Technical Terms:

• COMEX: Commodity Exchange Inc., a futures and options market.
• BRICS: Brazil, Russia, India, China, and South Africa – a group of emerging economies.
• Fiat Currency: Government-issued currency that is not backed by a physical commodity.
• Short Position: A bet that the price of an asset will decline.
• Long Position: A bet that the price of an asset will increase.
• Goldbacks: Physical gold currency.
• Bullion: Physical gold or silver in the form of bars or coins.
• Ratio (Gold/Silver): The number of ounces of silver required to purchase one ounce of gold.

This summary aims to provide a detailed and accurate representation of the interview, preserving the original language and technical precision of the transcript.