The Battle For Gold & Silver: Manipulation Vs. Fundamentals!

Key Concepts

• Coordinated Price Slams: Deliberate actions by large market players to drive down the prices of gold and silver at specific times.
• Big Money Entry: The strategy of "big money players" (institutional investors) using price slams to acquire gold and silver at lower prices.
• Undervalued and Underinvested: The assertion that gold and silver, despite record nominal prices, are still not sufficiently allocated by investors compared to historical norms and their potential.
• Resource War: A geopolitical situation where nations prioritize securing essential resources, including precious metals.
• Investing Pro: A market analysis tool from investing.com used for tracking portfolios, comparing stocks, and identifying undervalued assets.
• Warren AI: An AI tool within Investing Pro that analyzes company financials and trends to provide price predictions.
• Backwardation: A market condition where the spot price of a commodity is higher than its futures price, indicating immediate supply tightness.
• Mining Stocks: Stocks of companies involved in the extraction and processing of minerals, particularly gold and silver.
• Pullbacks: Temporary decreases in the price of an asset after a period of increase.

Summary

Warning and Market Recovery

The video begins by referencing a previous warning issued on September 30th about "big money players" coordinating "price slams" in gold and silver markets. The objective of these slams was to acquire these metals at opportune moments, as these players allegedly do not possess sufficient quantities. The core message was to disregard market volatility and not be deceived into selling gold and silver, as these dips were intended for large-scale accumulation.

The presenter had predicted a market recovery by October 9th, coinciding with China's return from holiday. This prediction proved accurate, with both gold and silver experiencing significant upward movements. Notably, silver surpassed $50 per ounce for the first time on October 9th and has remained above this level despite at least five subsequent coordinated price slams. These slams, followed by rapid recoveries driven by institutional buying, have propelled silver to the sixth position on the top 10 investable assets list (excluding real estate and bonds) and it is now challenging Google for the fifth spot. Combined, gold and silver now constitute nearly 58% of the total value on this list, nearing their April high. This indicates that, despite the frenzy in tech and AI, gold and silver are primary targets for major institutional money, even with the acknowledged volatility and potential for temporary pullbacks in metals and miners.

Undervaluation and Underinvestment of Gold and Silver

Despite reaching record nominal prices and experiencing substantial gains in 2025, the presenter argues that gold and silver remain undervalued and underinvested. This is contrasted with the stock market, which is described as overvalued and overinvested.

Data from top-down charts, shared previously, shows that institutional investors, primarily through ETFs, only began significantly increasing their exposure to gold in the latter half of 2024 and have intensified their buying in 2025. However, the share of gold ETFs within the total US-listed ETF market is currently less than 2%. This allocation is approximately four to five times smaller than during the peak gains for metals between 2009 and 2011, and is comparable to allocations in 2006. This comparison strengthens the argument that the current market for gold and silver is analogous to the 2003-2006 period, with substantial future gains anticipated.

When measured on a per-decade basis since the collapse of the Soviet Union (a period that saw countries selling gold reserves to align with the US), gold's price gains are still underperforming those from the 2000s to 2010s, when central banks began shifting back to gold and became net buyers. Based on available data, a minimum average price of $5,500 per ounce for gold over the next four years is projected.

Silver's demand is growing due to industrial needs, and it is also making a comeback as an investment asset, with the Saudi Central Bank adding silver to its balance sheet in August. The potential for silver to surge is at its highest since the end of the gold standard in 1971. The metal has significant ground to cover due to massive price underperformance, coupled with robust demand and supply tightness. Data suggests an average price for silver in the neighborhood of $89 per ounce over the next four years.

Backwardation and Supply Issues

An update on the "backwardation issue" (where spot price exceeds futures price) highlighted previously indicates that this gap is narrowing. This suggests that large bullion banks and refineries are likely cooperating with the LBMA to alleviate supply constraints that caused the spot price to rise significantly above the futures price. While this issue may not be fully resolved this week, it is expected to close in about two to three weeks. This reinforces the advice for viewers to be prepared to buy pullbacks in gold and silver, as these dips are anticipated to be temporary, with remarkably higher prices expected for both metals in 2026.

Mining Stocks and Upside Potential

Addressing viewer questions about the sustainability of the current run in mining stocks and whether it's too late to invest, the presenter uses the projected average prices of $89/ounce for silver and $5,500/ounce for gold to analyze the potential of a mining stock.

Using Pan-American Silver (which has already gained nearly 100% in 2025) as an example, and leveraging the Investing Pro Warren AI tool, the analysis explores the stock's potential if silver reaches and sustains $89 per ounce. The AI, after considering current silver prices, company margins, earnings, and other factors, suggests that Pan-American Silver could surge to between $90 and $15 per share, more than doubling its current price. This indicates significant upside potential for silver stocks, even after their recent run, as both metals and miners catch up with their historical underperformance.

The AI also warns that higher silver prices could necessitate new investment for Pan-American Silver, including mine expansion and new mine development. Considering these factors, the AI suggests a more plausible price range for Pan-American Silver between $60 and $75 per share, assuming the market perceives $89 per ounce for silver as a sustainable level. This implies that large miners could still see 50% or more upside, and smaller producers, which the presenter has largely kept in his portfolio, could experience even larger gains due to their faster market movements.

Conclusion and Call to Action

The presenter advises investors, whether already in metals and miners or considering entry, to ignore price slams and pullbacks. These are seen as opportune moments for those not yet adequately prepared for the coming years (2026 and beyond). The rationale is that "big money" is preparing, and smart investors understand that the most significant gains for metals will occur after a stock market crash, which has not yet happened. Therefore, maintaining a purchasing schedule is crucial.

The video concludes with a thank you to Investing Pro for sponsoring the content, emphasizing its utility in identifying opportunities and understanding the market. Viewers are encouraged to click the provided link in the description and pinned comment to view the special offer (50% off plus an additional 15% off with the presenter's link, ending October 16th at 12:00 p.m. New York time). Clicking the link is stated to be helpful for the channel and can lead to future sponsored videos. The presenter reiterates the value of the tool for informed investing. Finally, viewers are encouraged to like the video, provide feedback on bonus midweek videos, and are reminded to take care of themselves and each other.