Dealers, Stackers, EVERYONE’S GETTING OUT - the days of silver bullion ARE OVER

Summary

The video highlights the changing dynamics of silver stacking and gold investment strategies. It explains how dealers now prefer to use the silver-to-gold ratio, allowing them to acquire large quantities of silver without paying premiums. With silver prices stagnating and the gold market showing new all-time highs, the video emphasizes the importance of smart investing, especially in gold companies with large, undeveloped deposits. The featured sponsor, Axcap Ventures, is presented as a promising investment opportunity due to its undervalued gold resources and strong insider confidence in the company's future growth.

Takeaways

• 😀 Dealers no longer need stackers to walk into the store to buy silver; they can use the silver-to-gold ratio to acquire silver without paying premiums.
• 😀 The silver-to-gold ratio is currently at 101:1, meaning one ounce of gold can be exchanged for 101 ounces of silver.
• 😀 Silver prices have been stagnant at around $32 to $33 for almost a year, causing many stackers to stop buying silver.
• 😀 The market for silver stacking has significantly changed in recent years, with fewer people actively purchasing silver from local dealers.
• 😀 Many dealers are now using gold to acquire silver at favorable ratios, which is more profitable than selling directly to stackers.
• 😀 Silver has experienced slow growth, and many people believe that silver is 'dead' due to its lack of significant price movement.
• 😀 Despite a stagnant silver market, gold prices have seen substantial increases, with gold having risen by 1,233% from 2001 to the present.
• 😀 The gold mining industry faces a crisis, with a decline in exploration budgets and a lack of major discoveries since 2016.
• 😀 Global gold production is expected to drop by 17% by 2030, signaling a potential supply crunch as existing mines deplete faster than reserves are replenished.
• 😀 Axcap Ventures, a company with substantial gold resources, is seen as a strong investment opportunity due to its undervaluation compared to its peers in the industry.

Q & A

What has changed about the way people are getting silver compared to two years ago?

The method of acquiring silver has changed significantly. Previously, stackers would walk into local coin shops and purchase rounds regularly. However, dealers now no longer rely on stackers to walk into stores as they can trade gold for silver directly, utilizing the silver-to-gold ratio to obtain large amounts of silver at no premium.

How do dealers benefit from the current silver-to-gold ratio?

Dealers can exchange one ounce of gold for a large amount of silver (101 ounces) without paying a premium per ounce. This allows them to acquire silver at lower costs, making them less reliant on stackers to sell them silver.

Why are stackers not buying silver currently?

Many stackers have stopped purchasing silver because its price has been stagnant at around $32-$33 for nearly a year. The lack of significant price movement has led some to believe that silver may be 'dead' as an investment.

What historical patterns have been observed in gold's price movements?

In past bull markets, such as in the 1970s and 2000s, gold reached multiple all-time highs. The current bull market has seen 74 new highs, while gold’s spot price has appreciated over 10 times since the early 2000s, despite some stagnation in recent years.

What challenges are faced by the gold mining industry?

The gold mining industry has been facing stagnation in exploration and a sharp decline in new discoveries. From 1990 to 2023, only 29 major deposits were discovered after 2010, and no major discoveries have been made since 2016.

What is the projected outlook for global gold production?

Global gold production is expected to decrease, with projections indicating a 17% drop by 2030. Existing gold mines are depleting faster than new reserves are being discovered or developed.

How has the performance of gold mining companies compared to gold prices?

While gold has appreciated by 75% from 2011, gold mining companies, represented by the GDXJ index, have seen a 63% depreciation in value over the same period. This highlights the underperformance of mining stocks compared to the actual price of gold.

What recent investment has been made in the gold industry?

Legendary hedge fund manager John Paulson acquired a 50% stake in the undeveloped Donland gold deposit in Alaska for $1 billion. This is seen as a significant move indicating potential value in underdeveloped gold assets.

What is Axcap Ventures, and why is it significant?

Axcap Ventures is a company focused on investing in gold projects, particularly in the distressed gold industry. Their assets include 5.57 million ounces of gold equivalent resources, valued at only $5 per ounce, significantly lower than the industry average. This represents a potential opportunity for significant appreciation in value.

Why are insiders buying stock in Axcap Ventures?

Insiders at Axcap Ventures have been purchasing significant amounts of stock recently, signaling strong confidence in the company's future. This buying activity, including purchases by company co-founders, is seen as a positive indicator for potential investors.