What’s up with GOLD and SILVER? Are Bitcoiners getting left behind?

What’s up with gold and silver? And are
bitcoiners getting left behind? The
answer is no. Bitcoiners are not getting
left behind. But I will tell you what’s
up with gold and silver. Now, if you
want the much more detailed explanation
with charts and graphs and really good
narrative from somebody smarter than me,
you should listen to the Jack Morers
show. J A C Morers M A L L E R S. He is
CEO of two companies. One Strike S R I K
E and the other 21 uh the number two and
one. Anyway, he does a weekly podcast.
It’s best to do it on YouTube because
it’s got a lot of visuals and he
explains it all in the last couple
episodes. He’s done a lot of explanation
of what’s happening with gold and silver
and Bitcoin. So, I recommend those. But,
let’s assume you’re not going to do
that. Then, I’ll do my best to explain
it anyway, even though he does a better
job than me. First of all, you have to
understand why is gold up? Gold is up
because central banks are buying it.
Now, the logical question is why are
central banks not buying Bitcoin instead
of gold if Bitcoin is superior? A couple
reasons. One, Bitcoin is new. It’s only
17 years old. Most of these central
bankers had their professional jobs
before Bitcoin was even invented. To
them, Bitcoin is new. It is scary. It is
unknown. And even at the World Economic
Forum in Davos, you could see based on
the comments made by central bankers,
they still don’t understand Bitcoin. Uh
the French central banker was like, “I
just don’t trust money that’s issued by
a private bank.” And Brian Armstrong
corrected him. Was like, “You realize
Bitcoin is not made by a private bank.
Like how do you not understand that in
2026?” And obviously Brian Armstrong was
really really nice about it. But the
short take is central bankers still do
not understand Bitcoin. They are scared
of Bitcoin because they can’t control
it. And so they go back to what they
know, which is gold. Now, why gold?
Well, there’s two there’s only two
things in the world that are big enough
right now for central banks to buy. And
by big enough, I mean they have enough
liquidity. Liquidity is important
because you need to be able to get
something into it and out of it without
completely crashing the price or mooning
the price. So, for example, let’s say
you needed to land the moon on the Earth
and you thought, you know what, we could
land it in the Pacific Ocean. We could
land it in the Atlantic Ocean uh or the
Indian Ocean, all of which are big
enough. But somebody has the bright idea
that, you know, fresh water is so much
better. Why don’t we land the moon in
the Great Lakes? And of course, the
equivalent here is Bitcoin’s like the
Great Lakes. It’s fresh water. It’s
better. You’d much rather have the moon
in fresh water than in the ocean, in
salt water, blah blah blah. Guess what?
It’s too small. The Great Lakes are way
too small. There’s only three oceans in
the entire world that will fit the moon.
It is the Pacific, the Atlantic, and the
Indian Ocean. So, you just don’t have a
lot of options. Well, the equivalent of
the Pacific Ocean and the Atlantic Ocean
um are US Treasury Securities, which is
US government debt, and gold. Those are
the only assets that have tens of
trillions of dollars in liquidity, which
means you can buy a trillion dollars of
it and then you can sell a trillion
dollars of it. And you might move the
price some, but you can actually do
that. It’s actually possible to do that.
You cannot buy or sell a trillion
dollars of Bitcoin right now. Even if
central banks decided all of a sudden
they wanted to adopt Bitcoin, only about
12% of all the Bitcoin is on exchanges
for sale right now. Which means if you
wanted to buy as much Bitcoin as
possible, you can only buy like a
hundred billion dollars of Bitcoin
before the price goes to infinity
because you basically bought up all the
Bitcoin that’s for sale. Now, over time,
maybe it’ll take 5 seconds, 5 minutes,
or 5 days, people will log in and feel
like they’re rich, and they’ll sell some
of the Bitcoin they have, and it will
create additional liquidity. But you
cannot buy a hundred billion of Bitcoin
without radically jacking the price way
up. You know, right now, if somebody
bought a hundred billion overnight, the
price would go to $500,000 at least, if
not a million, if you bought it that
fast. Now, you can buy it. You just have
to you can’t buy it that fast. But
central banks need to be able to sell or
buy a hundred billion dollars of
something. The only two things you can
do a hundred billion dollars of
something quick is US Treasury
securities and gold. Uh US Treasury
securities have tens of trillions of
dollars in liquidity. But the problem is
as of the Ukraine war when the United
States took away uh uh Russia’s US
dollar reserves, they basically just
liquidated Russia and took their money
away because it was US dollars and they
could freeze it and seize it and give it
to Ukraine. It communicated to the
entire world that your money is not safe
in US dollars because if you get
crossways with the United States, we’re
just going to take your money away. So,
as of either 2022 or 2023, I think it
was 2023, whenever that happened, uh
countries have been reluctant to buy US
Treasury securities, US government debt,
even though tens of trillions of dollars
worth of liquidity, they view it as a
dangerous asset class because the
government of the United States can just
take it away from you on a whim, unlike
Bitcoin, which they cannot take away
from you. Okay? So that leaves exactly
one asset that has tens of trillions of
dollars of liquidity and a non-s
sovereign asset which is gold because
Bitcoin is less than two trillion. So
again, you just cannot buy trillions of
dollars worth of something that’s only
that’s worth less than two trillion. Now
longterm you will be able to long term
the price of Bitcoin, you know, when
it’s a million dollars per coin will be
21 trillion. Yeah, when Bitcoin is 21
trillion and you want to buy a hundred
billion or sell a hundred billion,
you’ll be able to do that. But right now
you can’t do that. You can buy and sell
a billion dollars, but you can’t you
can’t buy and sell a hundred billion
dollars in a day in the Bitcoin market.
It’s just the ecosystem is too small.
So, as a result of that, uh, central
banks piled into gold because gold was
the only thing that had enough liquidity
that they could buy and sell hundreds of
billions of dollars of it on a whim,
which is what they did. They’ve been
hoovering up ridiculous amounts of gold
for the last few years, trying to
diversify out of US government debt. So
they’re basically dumping US government
uh money uh whether it’s in the form of
US dollar cash or treasury securities
which is US government debt. They’re
dumping those and buying gold instead.
So that drives up the price of gold. So
why is silver going up? Not because
central banks are buying it. Because
central banks are not dumb enough to buy
silver. Um it’s going up because gold
went up and because gold and silver in
the past hundreds and thousands of years
ago were both used as money. And there’s
a bunch of people that think when gold
goes up eventually silver is going to go
up after it, which is what happened.
It’s a self-fulfilling prophecy. So,
gold went up and then silver went way
up. Now, the problem with being a silver
investor is that it’s temporary. Gold
actually has monetary properties. They
are not as good as Bitcoin, but it does
have them, and it has 5,000 years of a
track record. Silver has very poor
monetary properties. So it is an
industrial metal just like copper or
zinc or you know lead or you know
whatever iron etc. It is a metal so it
it does have value because you can do
stuff with it but it does not have value
anywhere close to the current price of
silver on the marketplace. Meaning, if
you’re buying silver now, eventually
silver will crash because it does not
have the monetary properties that make
it desirable to be bought by central
banks or major institutions and it’s not
going to compete with gold in the long
term on that case or with Bitcoin. So,
at some point, silver will return to its
utility value as an industrial metal,
which is a price radically lower than
now. But in the meantime, the narrative
is, well, silver is way up because
gold’s way up, and if gold goes way up,
then silver goes way up. even though
historically that’s been poorly
correlated. And silver is used in
photovoltaic, you know, solar panels and
AI chips, although you can also use
other metals. So, don’t get too excited
on that front. So, eventually silver
will crash. Gold may stay high depending
on how long it takes for central banks
to switch from gold to Bitcoin. And
Bitcoin will eventually outrun all of
them as it always has done the last 17
years. It’s just a matter of time. So,
if you want a better explanation with
charts and graphs and visuals and video
recordings of Scott Bessent, the
Treasury Secretary, and all this other
stuff, go watch the last couple
episodes, the last two or three episodes
of Jack Malers on the Jack Mer Show.
He’s got a much better explanation than
the one I’m giving here. I’m just trying
to summarize it off top of my head. But
the short take is gold and silver will
cool off and then a huge amount of the
capital that is in gold and silver will
rotate into Bitcoin and Bitcoin will go
on its own meteoric rise and you’ll wish
you owned a lot more of it than you do
now which is what always happens and the
narrative is the same every time which
is everybody says I wish I had known I
wish I had bought more. I should have
seen that coming. It was so obvious in
retrospect blah blah blah and here we
are. So go buy as much Bitcoin as you
can. Hold on to it for as long as
conceivably possible. As always, not
financial advice, not accounting advice,
not legal advice, not tax advice. This
is just friend to a friend sharing what
I recommend to myself that I do. So, um,
anyway, Bitcoin’s time will come. Only a
matter of time. It’s going to be
euphoric when it gets here. And until
then, be patient.