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.