Summary
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Charts flipped, perspective flipped – We turned those financial charts vertical to get a clearer view of how wild the ride has been between stocks and gold over the past century.
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Dow vs. Gold – a century-long tug of war – Sometimes it costs more than 10 oz of gold to buy one Dow share (especially in bubbles), sometimes way less — in historic crashes, as little as 1–2 oz did the trick.
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We’re at 12.75 oz today – So historically speaking, the Dow is still expensive when priced in gold. Not at bubble peak, but still far from cheap.
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Silver’s the drama queen here – Unlike gold’s 40x swings, silver has gone nuts with 125x moves over the past two decades. Super undervalued today.
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Back in 2001? 2,500 oz of silver bought a Dow share – That’s bananas. Today it's still high, around 1,300 oz. The silver side of this ratio is begging for a comeback.
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Aussie housing vs. bullion? Buckle up – In Sydney, Melbourne, and Brisbane, house prices have tripled since the 2008 crisis — but in gold and silver terms, they might collapse by 2/3rds or even 90% in real value.
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Commodities always come back – Gold’s already making moves, silver is still sleeping — but when silver wakes up, things tend to go vertical. Just like in 1980.
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Inflation may be the “reset” tool – Some experts are warning that the U.S. might wipe out its massive debt via a short, sharp burst of hyperinflation. Sounds crazy? Maybe. But also plausible.
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It’s happened before – From silver demonetization in the 1800s to currency collapses globally, history shows us this isn't new — we’re just watching the next chapter unfold.
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SilverSqueeze energy is still alive – To end on a high note, the silver stacking community is growing and getting louder — and last week's online celebration proves people are waking up to real money again.
Where House Values May Melt –90% vs Silver Bullion
My mom and dad had a gold bullion?!
Mate?
All right we'll get back to that hard hitting analysis in a minute.
First I'm flipping these charts vertical so can visually see the wild swings in relative values between stonks and a gold bullion tucked away somewhere safe.
The line running through is about the middle or median in terms of swing up and down, now left and right here vertically.
Over the last 100 years of United States financial history, just under half the last century the Dow / Gold has hovered above 10 oz of gold bullion to buy 1 share of the Dow. Peaking in the 2000 tech bubble where delusionary stock prices of the then Dow rotating company component index cost just over 40 oz of gold per share.
Whereas for a bit over half of last 100 years of time.
It has cost less than 10 oz of Gold to buy one share of the dow. And when it does break hard right on this chart, the past two times, it has bottomed between 2 oz to as little as 1 oz of gold briefly affording the Dow Jones Industrial Average.
Today, we closed this ratio at 12.75 oz of spot gold to afford a share of the still well overpriced US mega-corporate Dow.
The Silver side of this long term swing trade is of course more volatile and manic, depresso.
Right now silver is again depresso, spat upon by ignorant normies.
We can go all the way back to the 1890 Sherman Silver Purchase Act, there have been times in US financial history when as little as 20 ounces of silver bought a share of the Dow, the spike low in 1980 being obvious most recent far right extreme.
Cut back closer in time to two dozen years ago in May 2001. Then it cost over 2,500 oz of silver to buy one share of the overvalued Dow stock bubble at the time.
Everyone yuppie thought they were a day trader, it was a clown show.
Once it crashed, I got my diploma. Welcome to the real world kid. Good luck.
Considering gold vs silver over the large somewhat recent swaths of time.
Instead of a swing of factor of more than 40 for gold, silver has seen swings of 125 multiples in just over two decade within most onlookers lives watching this very video.
The one omnipresence in markets is that they swing from fair value, to overvaluation, to extreme undervaluation. In terms of bullion versus the present day US stock market, they are both still undervalued. Silver still to depresso extreme currently costing nearly 1300 oz of spot silver for the overvalue Dow.
Without silver you AI delusions cannot come about, and now I'm not dumping 2 and half mint cases of silver bullion sovereign coins for your overvalued bubble. Maybe when you again humbly cost a few tubes we can talk.
Back to this hard hitting Aussia Gold news break.
Nervous laughter melting away just like your currency and housing bubble is to gold and then now silver to come.
The let's check in on the 3 largest Aussie metros and their overpriced debt laden housing bubble shall we.
Here's Sydney, "Naw mate, can't afford to live their. Not cheap as chips at all."
Since the 2008 GFC, debt fueled housing prices on a nominal basis have three folded.
In gold and silver bullion terms through, the story is bit a bit different.
Look for Sydney houses to get 1/3rd'ed by the end of this building gold bullion mania phase, as the bubble built gets melted down by gold accounting.
Silver, the story is slower until it isn't. It is possible that a house in Sydney in real terms loses something like -90% to silver bullion a coming mania phase.
Keep laughing jokers, you're the dumb money now, so sit back in your overpriced house, and transfer your real wealth to the bullion owners.
You're not getting out of here Melbourne.
Doubled you nominal house prices from the post 2008 GFC residential debt explosion.
How about we throw some bullion on it?
How about 75 oz of gold for you shack or 2000 oz of silver for your shanty by the year 2033.
Is that a good conspiracy?
Brisbane, your not getting out of this hard money look in the mirror either.
Nearly two an a half nominally priced higher housing since the 2008 GFC.
Oh yea, time to bust through with some relative Brisbane house vs bullion value charts.
Looks like you house price could be halved and or quartered valued by gold bullion from now to perhaps by the 2030s.
The silver side, you get a repeat of 1980 where nearly commodities multi-folded no Hunt Brother scapegoats required.
You could see a relative silver valuation loss in your house by over -90% as well.
I know it sounds nuts, that's why I am showing you this with damning data painted on these charts.
You see from time to time, a few decades to a few decades, commodities and especially precious metals move from severe undervaluation to over valuation relative to all good and services within economies.
Here, state side, gold just recently broke out and is consolidating relative gains before running again.
Silver is still in slumber mode, but just like in Australia now your nominal silver price has broken beyond your 1980 and 2011 nominal price highs. The same is coming US state side. If what I am going to show you on the other side of this break comes true.
Well 1980 will end up seeming so very quant and cosy in comparison.
Stick around.
The silver and gold markets sold off this week with Chinese precious metals trading closed for local holidays.
The spot silver price finished just over $32.00 oz bid and the spot gold price finished close to $3240 oz bid on the week.
The spot gold silver ratio ended the week still triple digits historically high at 101.
The World Gold Council just reported the highest gold demand for Q1 to begin a year since way back in Q1 2016, when gold was about 1/3rd its current nominal price of today.
Even though gold jewelry sales are down, unsecured gold ETF demand and gold bullion buying especially in the east India, China, Japan, Korea, Vietnam, you name it gold demand is strong with the ongoing structural trade changes afoot.
That's apparently how much large denomination note Chinese fiat yuan cash it take now to afford just 1 kilo of gold bullion. That pile is going to grow bigger in time.
Here's a fun little data fact on the US ubiquitous iPhone.
In its launch in early 2009 as QE1 was just getting underway, the spot silver was $11 oz.
The retail iPhone price has 3X'd in its fiat $USD price $500 to $1500 now, but in real value terms it costs only 1/3rd in Silver Bullion today vs what it did back then.
Yea so, not just overvalued bubble stonks or debt laden mortgages. But near ever good and service you can think of, is going to melt in value versus bullion to come.
Long time real estate and US bank analyst Christopher Whalen, has been out in the media promoting an update to his book entitled, 'Inflated'.
I'll get his updated book in the mail soon, but I want to take you through some of the many points he has made that have stuck with me for some 10 days from watching them here on Youtube.
Pause, because that sounds glib and hopefully far out in the future if somehow it never comes to pass. But think about it, if when the time is right to wipe the deck clean, you can wipe the USA's current record debt pile clean by 4 consecutive months of 50% inflation per month. So do the math, $36 trillion becomes $18 trillion, then $9 trillion, then $4.5 trillion.
So in real terms you can knock out about 90% of the balloning debt in real terms by a whoopsie hyperinflation lasting 1/3rd of a hellish year hopefully never coming to pass.
The best expression of what that is like to live in, is simply going to same restaurant each morning ordering the same thing each day, but having to ask what the new higher price is for your meal.
I know arrogant listeners the $200 trillion in unfunded liabilities coming due the decades coming won't cause us to increasingly monetize our balloning debts that only happens elsewhere, sure.
How about forcing the banking system to again have to hold secular bear market financial repression US bonds on their books akin to post WW2 USA?
Chris suggests that's coming too.
In another interview Chris gave a shoutout to the ridiculously high spot Gold Silver Ratio at the moment. Suggesting that it will come roaring back lower.
Yes, they bought gold because silver was demonitized and their burdensome outstanding debts were denominated in gold, not silver.
Baron Rothchild in the French Monetary Convention of 1869 literally said the following. "The suppression of silver would amount to a veritable destruction of values without any compensation." Then he and his City of London bankster buddies basically got the US to demonitize silver about a decade later and all hell of a sheeple shearing and bankster consolidation on the midwest and west ensued. California was mostly spared thanks to their ongoing gold rush.
Google's AI played dumb until I shook a source out of it for the quote, another book purchased today. More on the silver demonitization history another time.
We are likely hell bent on a path as a nation towards the possibilty of blowing this version of the fiat greenback away.
Silver and gold will be there again to account for that destruction by rapidly increasing in value to come.
This is just the historic rhyme in time repeating again.
And no it's not the 1970s, the underlying situation here and abroad is way worse than then and most places.
Inflation on a massive scale is the likeliest way out until a new system and potential new US currency unit might be required.
Well, I'm not going to leave you with that scary taste in your mouth tonight.
We'll end with some highlights from last Wednesday's final trading day of the month Twitter X SilverSqueeze flood the zone celebration. Including an 8 hour marathon spaces with like minded bullion stackers to celebrate the day and month of adding ounces of real wealth to our lives.
That will be all for this week's SD Bullion Market Update.
And as always, take great care of yourselves and those you love.
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