All right, everybody, welcome back to the deep
dive. Today we're diving straight into the deep
end of the pool with something that I know a
lot of our listeners are going to be interested
in, particularly those that have been following
along for a while. And that's this recent action
we've been seeing with gold and silver prices.
Absolutely. all over the headlines and it's hard
to miss. We figured we'd kind of take a little
bit deeper of a dive into it today and also look
at the idea that's kind of been floating around
out there for years about this potential price
suppression when it comes to gold and silver.
You flagged a really interesting article for
us. It's titled, Gold and Silver Break Free.
The End of Suppression. Pretty catchy title.
And this was published just recently, March 14th,
2025. So we're trying to stay on top of things
here on The Deep Drive. As always. So our goal
today is really to get... Beyond just the headlines,
you know, we want to really get into the historical
context of what's been going on with absolutely
silver Understand what's actually happening right
now? And also take a look at what this article,
you know suggests might be coming up on the horizon
for these precious metals Yeah, I think a key
thing today is to try and you know Look, we could
talk about this for hours and hours. Oh, yeah
and get really bogged down in all the details,
but you know As always, we want to try and provide
that clarity without, you know, overwhelming
everybody with too much. Yeah, and there's a
ton of information out there and we just want
to try and cut to the chase. Exactly. Okay, so
let's jump right in. The article kicks off by
taking a look back and the first thing that caught
my eye was this thing called the London Gold
Pool back in the 1960s. Right. And this was something,
I'll admit, you know, I had heard about it before,
but I never really understood exactly what it
was. So for those of you out there who maybe
haven't heard about the London Gold Pool or don't
really have a grasp on it, can you just give
us a quick overview of what exactly the idea
was there? Yeah. So the London Gold Pool essentially
was a cooperative effort by a group of central
banks. OK. And the idea was they were trying
to fix the price of gold. at $35 an ounce. Wow.
So can you imagine? Yeah, back then. That's crazy.
Yeah. It is crazy when you think about what gold's
trading at now. Yeah. So how are they trying
to pull that off? So they did this by pooling
their gold reserves. OK. And then. Basically,
they would actively intervene in the market by
either buying or selling gold to keep it at that
$35 level. So almost like trying to just put
a ceiling on it. A lid on it, yeah. Trying to
keep it contained. So it sounds to me like you're
almost trying to hold back something really powerful
with that. A powerful force, exactly. And so
what ultimately happened with that? I mean, you
can't just hold back the tide forever, right?
You can't hold back the tide forever, and that's
exactly right. as you can imagine, this demand
for gold, particularly at that time, there was
a lot of concerns about the US dollar. And as
faith in the dollar started to waver, that put
a lot of pressure on gold. So they were having
to use more and more of their reserves to try
and keep it at that level. And eventually it
just became too much. And in 1968, the whole
thing collapsed. Wow. So it couldn't be sustained.
They couldn't hold it back. They couldn't hold
it back. And that kind of shows you that, you
know, you can try and manipulate things, but
ultimately, the market's going to do what it's
going to do. I think that's a really interesting
takeaway from this historical example, because
it shows you that, you know, markets, and we
talk about supply and demand. Right. You know,
it's not just a theory. Like, actually, when
you try and, you know, sort of put artificial
controls in place, ultimately. Supply and demand.
Supply and demand went out. Went out. Yeah. And
what happened after the gold pool collapsed was
really interesting, because as you can imagine,
once that control mechanism's gone, the price
just exploded. So by January 1980, gold had reached
something like $850 an ounce. Oh, wow. So it's
this huge... Yeah, it's a big... Percentage increase
in a relatively short period of time. Yeah, huge
move. Huge move. Okay. So it kind of shows you
what can happen when these kind of mechanisms
break down. Yeah. Okay, so fast forward quite
a few years. The article brings up these allegations
by Andrew McGuire back in 2010. Right. And this
is something that... a lot of our listeners,
I think, will remember. And it seems much more
recent. It seems more relevant to the whole discussion
of potential suppression that's going on. Exactly.
So what exactly did McGuire claim was happening
back then? So McGuire, he'd been working as a
commodities trader. OK. And he... basically came
forward very publicly and made some really serious
allegations of manipulation in the gold and silver
markets. His main point was that - What did he
say they were doing specifically? He was saying
that major banks were using these huge quantities
of paper contracts. So things like futures and
options to artificially depress the price of
physical gold and silver. So instead of reflecting
true supply and demand, they were just... Exactly.
He was saying this is not about genuine hedging.
Right. You know, this is about basically keeping
the price artificially low so that they could
profit from that. OK. And so this all led to
a CFTC investigation, right? It did. The Commodity
Futures Trading Commission. Right. They launched
an investigation. And what came of that? I mean,
obviously, these things are kind of complex,
right? They are complex. And, you know, often
you don't get a huge amount of transparency on
these investigations. Yeah. You know, what we
have seen is that financial institutions have
faced penalties for manipulating commodity markets
in the past. OK. But not necessarily directly
admitting to, you know. You don't often see a
direct admission of, you know, this kind of widespread
conspiracy to suppress gold and silver prices.
Right. But certainly, Maguire's allegations.
I think really added fuel to the fire. Yeah,
for those who already suspected that something.
Exactly, for those who already had those suspicions.
Was going on. Yeah. And it makes you wonder,
right? Makes you question. If it's even possible
to manipulate things. You know how transparent
and fair are these markets? Yeah, it's a big
question. Big questions. Yeah. Okay, so that
gives us some really good background and historical
context. Yeah. Now let's kind of shift to what's
happening in the here and now. And the article
mentions some pretty significant price jumps,
both for gold and silver. It does. So can you
kind of walk us through what we've been seeing
lately in terms of the price movements? Sure.
So the article says that gold recently hit an
all -time high. It's broken above $2 ,900 an
ounce. Wow. Yeah, that's pretty remarkable. That's
a huge milestone. Yeah. And what's really interesting
is that the technical analysis that they talk
about suggests that once gold broke through these
key resistance levels... Okay, you can kind of
think of those as those price ceiling price ceilings
Yeah levels that it's struggled to break above
right in the past and once it breaks through
that once it breaks through that There's not
really a lot. Yeah, you know technically speaking.
Yeah, stopping it from going even higher Wow,
so potentially even beyond $3 ,000 so $3 ,000
is kind of a you know, it's a big big psychological
level psychological barrier Yeah, yeah. Okay.
So gold's been on the move gold's been on the
move and silver hasn't been slouching either.
Okay It's seen some pretty big moves as well.
Yeah. Yeah. So what about silver? What's been
going on there? So silver's climbed above $33
an ounce. OK. And the article points out that
analysts are seeing a lot of upside potential
for silver. So it could keep. Yeah, especially
if you buy into this whole suppression area that
we've been talking about. OK. Because the thinking
is that silver has kind of lagged behind gold.
You know, gold's had these huge moves. Right.
Silver's kind of been playing catch up. So they
think there's still room for silver to run. Potentially
a lot of ground that it could make up. Okay.
Yeah. The article also brings up this gold to
silver ratio. Yeah. And it says that it's currently
around 88 .9 to one. That's right. What does
that number actually tell us? So the gold to
silver ratio is basically saying, you know, how
many ounces of silver does it take to buy one
ounce of gold at the current prices? So right
now, you'd need almost 89 ounces of silver to
buy one ounce of gold. Now, historically, that
ratio has been a lot closer to around 65 to one.
So what that suggests... It's a little out of
whack. It's a little out of whack, yeah. And
it suggests that potentially... Silver is undervalued.
Silver is undervalued relative to gold. Interesting.
Based on their historical relationship. So if
that historical balance were to... come back
into play, then that could mean that silver has
a much bigger percentage increase potentially
than gold. Okay, so here's where I think things
get really interesting. The article then goes
on to talk about some of the real shifts that
are happening within the financial system itself
that might be contributing to all of this price
action we've been seeing. The first thing that
it mentions is this surge in demand. for physical
gold. It's not just on paper anymore. It's not
just people trading contracts. It's people actually
wanting to hold the metal. Yeah, they want the
real thing. You want the real thing. Yeah. So
what do you make of that? Well, I think it's
really interesting because the article highlights
this big increase in investors, particularly
in places like New York, big financial centers.
They're actually wanting to hold physical gold.
OK. So, you know, that could mean a couple of
things. I mean, maybe there's a lack of trust.
Yeah, a lack of trust in the system. In the system,
yeah. Maybe they're just worried about what's
happening in the economy and they want something
tangible, something they can actually hold. Makes
sense. And when people actually want to hold
the physical commodity instead of just a derivative
of it. That's going to put upward pressure on
the price. Right. Yeah. And it's not just individual
investors either, right? No, it's not. I mean,
the article talks about central banks. Central
banks are buying a lot of gold. They're buying
a lot of gold, like a lot. Yeah. I think the
article says it's one of the strongest periods
of gold buying we've seen in recent history.
What does that tell you? I mean, to me, that's
a pretty big deal. These are the institutions
that are supposed to be managing our national
reserves and making sure everything's stable.
And they're basically saying, you know what,
we want gold. We want real assets. We want real
assets. Yeah. Yeah, maybe we're not so sure about
these fiat currencies anymore. Makes sense. So
you've got individuals wanting to hold the actual
metal. You've got central banks loading up their
vaults. I mean, that seems like a pretty The
shift in... Fundamental shift in demand. In demand,
yeah. Yeah. It really is. Okay, so then the article
goes on to talk about what some of the major
financial institutions are saying about all of
this, and it specifically mentions Goldman Sachs
and JP Morgan. Yeah. So these are, you know...
pretty influential players. They're big players
in the market. Yeah, they can definitely move
markets. They move markets. So what are they
saying? So what's really interesting is that
they've actually, you know, they've revised their
outlook on gold clicks. It's bullish. Yeah, and
they've increased their price targets. Wow. So
they're saying... Yeah, so they're basically
saying, you know, we think gold's going to go
higher. Higher. Yeah. Interesting. So I think
that's a pretty big deal. Because they're basically
admitting that they might have been wrong before.
It's possible, yeah. Or that maybe the game has
changed. Or that the game has changed. Maybe
they're seeing something that wasn't there before.
Yeah. OK, so it seems like the article is making
this case that maybe this isn't just short -term
volatility. These breakouts in gold and silver
prices that we've been seeing, maybe this is
the start. of something bigger. Maybe they're
finally starting to move towards a price level
that reflects their true value. Would you say
that's a fair assessment? I think that's a really
good summary of what the article's saying. They're
saying, look, we've got all this historical precedent.
We've seen how hard it is to actually control
these markets. We've got this current price action.
gold and silver on the move. You've got this
huge demand for physical gold. You've got the
central banks buying it up. Right. And you've
got these major institutions changing their tune.
Yeah. So you put it all together. It does seem
like we could be at a turning point. OK. And
specifically for silver, the article reiterates
this historical pattern of silver really kind
of taking off once it starts a sustained move
higher. Yeah. So. historically silver has tended
to outperform gold in terms of percentage gains
when you have a bull market. So if gold really
is entering this bull market. If gold really
is taking off, silver could potentially see some
really big gains. Yeah, and it's interesting
to note that even some of the analysts and investors
who have been vocal in the past about this whole
suppression narrative, They're viewing this as
kind of a yeah, like it's confirming validation
of what they've been saying what they've been
saying all along Yeah, so it's interesting to
see how you know how the narratives evolving
right? Yeah, you know you have these guys who've
been saying for years Yeah, gold and silver are
undervalued. Yeah, because of all this manipulation
now. They're saying they're being proven right
well. This could be it yeah This could be the
moment. OK. So as we wrap things up here, let's
just kind of recap some of the key takeaways
from this article. Gold and silver break free.
The end of suppression. Really? So we've looked
at the history of attempts to control gold prices.
We looked at some of the allegations of manipulation
in the markets. We looked at these huge price
surges we're seeing right now in both gold and
silver. The fact that people actually want to
hold the metal, the physical gold, that central
banks are loading up their vaults and that these
big institutions are changing their tune. It's
a lot to digest. It is a lot to digest. But I
think the article does a good job of laying out
this argument that potentially we are coming
to the end of this period where gold and silver
have been artificially suppressed and that they're
going to start to move towards their true value.
And it makes you wonder, right? if all of this
is happening. It's a big if. Yeah, it's a big
if. But if it is, what does that mean for the
bigger picture? What does that mean for our understanding
of value? What is value? What is value? What
is money? What is money? What does it mean for
the stability of the entire system? I mean, are
we seeing this kind of reassessment of the role
of precious metals? A shift. Yeah. It's something
to think about. It is something to think about.
So I want to thank everybody for tuning in. Yeah.
To this Dipe Dive. As always. You know, we've
just kind of given you a snapshot here of what
this article is saying. Just a taste. Just a
taste. Yeah. But there's a lot more to explore.
There's a lot more out there. There's a lot more
out there. So keep digging. Digging. Keep asking
questions. Do your own research. Yeah, and you
know. Yeah. Let us know what you find. Let us
know what you find. All right, everybody, we'll
see you next time. See you next time. On the
deep dive.