Gold, Silver Hit ALL-TIME HIGHS! How Much Higher Can Metals Go?

0:00Hello, everyone. The government's inflation numbers are in and it proves that economists were wrong. once again, the metals manias taking gold, silver, copper, and nickel higher, and NVIDIA's Jensen Huang, he says that one day there's going to be a god AI. We're live today from the desk of Anthony Pompliano.

0:26Before we get started today, I need your help. We currently have 41 ,859 different subscribers, but with your help, we're going to get to our goal of 1 million. Hit the subscribe button, tell your friends, and let's get into today's show. Our first question today is, the government reported inflation at 2.7%. Do you believe that number? The short answer is no, I don't, but there's a lot of details here that I think are worth paying attention to. The first is the Bureau of Labor Statistics. I have gone very deep into the methodology of how they collect the data and how they calculate inflation, and I see a lot of red flags.

0:57One example is when they are looking at housing, they will call people up and they will say, I know you own the home, but what do you think you could rent your home for? Obviously, people have no clue and they report whatever they aspire to be able to rent their home for. That is part of the issue of collecting this data. On top of that, the BLS still sends hundreds of people into grocery stores with physical tablets and has them manually punch in the prices they see on the shelves. There is a very high likelihood that there is manual error when you are putting in those numbers into the tablet.

1:26So when you look at the collection of the data, there's obviously issues. But then if you go and you look at the calculation of inflation itself, one of the things that's very concerning is right now, 40 % of all of the inputs into that formula, they're actually guesses. The BLS is telling us they don't know what the actual number is. They're doing the best they can to estimate 40 % of the numbers. That means four out of every 10 inputs are literally things that the government is saying. We don't know the actual answer. We're doing the best we can. And so if you collect data incorrectly and your calculation is flawed, but obviously the output is likely not to be accurate.

2:00Now you can compare the CPI number from the government to something like truflation. Truflation is the measurement that I like to look at for inflation. This is a real-time alternative metric. And what they basically use is the internet to calculate every single day what they think the inflation rate is. They will look at in real estate, as an example, the homes that recently sold, what are the prices and how has that changed? They'll look at renting and they'll say what homes or apartments have rented and what has been the change. for food prices. They will go on to grocery stores online and they will look to see what the food is actually being sold for.

2:31That real time measurement is giving them a more accurate approach. So the government's CPI number is 2.7%. Truflations is 1.7%. It's a hundred basis point gap. Now, I think truflation is likely more close to the actual inflation number than you're going to hear from the government. But the thing is that when you hear 2.7 % or 1.7%, you may say to yourself, that's not what I feel every day. It feels like everything is too expensive. It is unaffordable to live a normal life today in America. Well, the reason is because actually you have something called a personal inflation rate that is different than the one size fits all number that's being reported, 2.7 or 1.7.

3:11That is the number that these companies or the government are trying to come together on for 330 million different Americans. But actually the thing that's important to you in your life is your personal inflation rate. Take food as an example. If you buy a lot of eggs and eggs have high inflation, then your personal food inflation rate is going to be higher than somebody who doesn't buy a lot of eggs. On top of that, if you happen to live in an environment or in a local community where there is really high housing inflation, then you're probably going to experience higher personal inflation than somebody who doesn't live there.

3:43And then lastly, take something like gasoline. If you don't drive and you live in a city where you can walk everywhere, gas has a much lower impact on your personal inflation rate than somebody who has to drive 30 or 45 minutes to work every single day. And so naturally your personal inflation rate is going to be very different depending on who you are, where you live and what you buy. And so your personal experience with inflation may be different than what you're reading in the headlines. Now, the thing that you are gonna read in the headlines that I think is important is you are gonna read that inflation isn't as big of a problem as it was before.

4:12That's true. Inflation over the last couple of years was as high as 9%. Today, it's anywhere between 2.7 to 1.7%. But the thing is that driving inflation down is coming because gas prices are going down, home prices are going down, and food prices are actually going down in certain sectors. But ultimately, those decreases in prices, frankly, are just too small. You're unlikely to be able to feel it on a day-to-day basis. And so the data is telling you one thing, but your personal experience is telling you something different. Both things can be true. The data can be improving. Inflation can be coming down.

4:45but you also can feel like your personal life is unaffordable and you simply can't get ahead. It's important to understand the data, but at the end of the day, we need politicians, central bankers, and the U.S. Treasury to pay attention to what the personal experience of the everyday American actually is. Our second question today, gold recently hit a new all-time high of$4 ,600 per ounce. What are your thoughts on gold? Now, first up, I think that everyone who knows about gold knows it's a timeless asset. This asset has sound money principles. It means it's outside of the financial system and no one can create more of it.

5:18You can't debase gold. And so those timeless principles make gold something that's been valuable for thousands and thousands of years. I think that's really important because I don't think that's going to change going forward. The second thing is that gold's been on a generational run. It was up like 70 % last year. And I don't think gold is going to go away. I think that central banks like it. I think that banks like it. I think that rich people like it. And the other thing is that gold has momentum. Now, winning begets more winning. And so whenever you see an asset that has momentum, more and more people pile into it, driving the asset higher.

5:49So gold, in my mind, will always be a great asset. It's something that a lot of people are gonna put in their portfolio. And I think anyone who's attacking gold and saying that gold is stupid, they don't know what they're talking about. Now, the other part of this story, though, is that there is a broader metals mania that's underway. Gold is a part of it. But actually, as Binance Research points out here, things like copper, nickel, and silver, those have done even better than gold has. And the reason that Binance points out is that the stronger the rigid production demand of these metals are, the stronger the asset performance has been.

6:21So the way to think about this is that current capital flows are heavily skewed towards hard assets with industrial utility rather than pure traditional safe haven assets. Now, of course, gold is used in things like jewelry, et cetera, but things like copper, nickel, silver, those are used much more with industrial utility than say something like gold. And so if you were to break these down into two different buckets, there's kind of a tier one. Think of these as things with high industrial rigid demand. Nickel surged over 10 % in a single day this week. Copper, that's obviously been propelled much higher and it hit a historic high exceeding over$13 ,387 per ton.

6:58Those are the tier one assets that have really high industrial utility. Now there's also these tier two ones. So things like gold and silver, they are rising and they have been pretty explosive, but they're lagging behind the industrial metals. Think of things like data centers, AI, all these big stories that you're hearing. Things like copper and nickel are much more needed for those than say something like gold. So ultimately this brings us to the hierarchy of the metals mania. You can think of copper as being in the top spot, then something like silver, and then finally gold. That price hierarchy, it reflects a market trading on the logic of re-industrialization, the reshoring, the manufacturing of America, the rise of AI data centers and electrical infrastructure.

7:39This idea of a re-industrialization is obviously going to drive much more investor demand than simple currency debasement fears, which are driving something like gold. So gold's done well, but the metals mania, it's much broader than that. And I think that investors who are interested in any sort of metal, they should pay attention to copper, silver, nickel, and gold. All four of them are likely to continue to do really well over the coming years. For our third question today, Jensen Huang recently talked about the prospect of a god AI being built. And he thinks it's a very long time away. Would this be a good idea?

8:13And will it happen in our lifetime? Now, the first thing is, yes, I do believe that this is going to happen in our lifetime. A huge reason why I think people are underestimating artificial intelligence is because of this idea of exponential production. Now, what do I mean by that? Right now, what we know is that people are able to write software at a much faster pace. And so if you have no technical knowledge, you now can become a developer. You just simply use natural language, English. You tell one of these systems what you want to build, and it goes in and writes the code for you. But if you are an engineer, you now can become a 10X or 100X type engineer.

8:44A great example is something called Claude Cowork, which just came out this week. Claude Cowork is basically the idea of Claude Code, but it's used for non-technical people. The most interesting part of that development to me is that one of the developers who helped build it said that Claude or Anthropic, they built it in a week and a half, And 100 % of the code was written by artificial intelligence. So that is the idea of exponential production. If somebody wrote code to create artificial intelligence that can write code, cloud code. Now they are using cloud code to write more and more software over time.

9:16And so you get this exponential growth of the production of software. That type of growth, both in software and in hardware, is ultimately what is going to drive massive innovation. That's why Elon Musk is saying GDP is going to go over 10%. And that's why I think during our lifetime, we will see something like God AI. Now, if we go back to Jensen's comments here, he specifically said, I don't see any researchers having any reasonable ability to create God AI. The ability for AI to understand human language, genome language, and molecular language, protein language, and amino acid language, and physics language, all supremely well, that God AI just doesn't exist.

9:53I don't disagree with Jensen here, but what I think is going to happen, and again, who am I? Jensen's the godfather of AI. I'm just some guy who's trying to figure out the world alongside you. But my thought process is that we're actually going to get a bunch of finely tuned models. So there's going to be one for biology. There's going to be one for chemistry. There's going to be one for finance. There's going to be one for health, et cetera. And not only are you going to get one, you're likely to get very high competition in every single one of these sectors. And so if somebody wants the equivalent of a quote unquote God AI, what's actually going to happen is you're going to put together a bunch of these.

10:24If you're in science, for example, you may put together something in material sciences, chemistry, biology, et cetera, tie them all together, be able to talk to it, and then orchestrate answers among every single one of those different models. That is gonna get us closer to something like God AI than maybe somebody just comes and builds one single model that can do everything. Now, the other thing that I'll say here is that Jensen has recently come out and said that we're all underestimating just how pervasive AI is already. He says that there are 1.5 million AI models, not agents, models, things like OpenAI's ChatGPT, O1 Mini, et cetera.

10:571.5 million of them. We're only three or four, maybe five years into kind of the consumer adoption of this technology. And so if you extrapolate that out, there are going to be tens of millions, hundreds of millions of models, agents, et cetera, all operating in society. And so I believe that this is a, as Elon calls it, a supersonic tsunami that is going to hit every single industry. And Jensen also believes that the doom and gloom influencers who are trying to negate AI, call for a bubble, or say that this technology is going to ruin society. They're actually just negatively impacting themselves.

11:31They sound stupid. And I think looking back, we're all going to have underestimated artificial intelligence, its importance in the world, and ultimately what it is going to be able to do for each one of us in our daily jobs and trying to make us happier, healthier, and wealthier. And I think that AI is here. It's not going anywhere. And every single person, the most bullish person you know, is probably underestimating it. That's it for today's show. Thank you guys so much for watching. Please remember to subscribe on YouTube and I'll see you guys live tomorrow from the desk of Anthony Pompliano.