Why Silver Prices Could Explode in the Next Decade

0:00Hey, Chicagoland. Wayfair's Memorial Day Sale is on at the Wayfair Store at Edens Plaza in Wilmette. From May 11th through 26th, you can score huge deals on everything home in person. Like up to 70 % off area rugs, up to 50 % off outdoor furniture, and up to 50 % off mattresses. Plus, you can take home the small stuff that day and get the big stuff shipped fast and free right to your door. Shop Wayfair's Memorial Day Sale May 11th through 26th at the Wayfair Store at Edens Plaza in Wilmette. Way fair, every style, every home. And I said, if gold reaches$5 ,000 and I use the 15 to 1 ratio, that's$333 silver.

0:37Well, we haven't made it yet to$300 silver, but we have reached$5 ,000 gold. And I, in fact, now think we're ultimately going to go well past even$10 ,000 gold.

0:54Hello, Robert Kielsock, and this is our radio show. And I'm broadcasting from Phoenix, Arizona, where it's heaven or hell. And right now it's heaven. It's just really, really nice weather. And I'm very excited. I'm interviewing a man I've respected for years. He has a great book, The Great Silver Bull. And I've been a silver bull since 1965. In 1965, I held up one of these coins here. and they were no longer silver. They were copper. And I realized it was called Gresham's Law. Gresham's Law states that when bad money or fake money enters the system, which we have lots of today, good money goes into hiding.

1:43So that's why today we're printing trillions of fake dollars, I think a trillion every 100 days or something like this, in the U.S. and the more fake dollars we print, the more valuable real silver becomes, plus gold and Bitcoin and other things. And so my guest today, somebody I looked up to, a fellow author, Peter Krauth. He's an author of The Great Silver Bull and I'm a hardcore silver advocate since 1965 and I've even been on like Neil Cavuto's show and a lot of shows on CNBC, and everybody was saying, what do you recommend? And I said, silver. Not gold? I said, no, silver. And the reason I recommend silver is because silver is an industrial metal.

2:37I mean, without silver, the world economy stops. You have to have it. And on top of that, it's a precious metal. So our dollars used to be, U.S. dollars, used to be silver certificates. and no longer. And today they're just fake. So we have fake money and the more, as Gresham's Law states, the more fake money we print, the more gold and silver go up in value. So Peter, welcome to the show. Robert, it is a true pleasure to be here with you. Thanks for having me on. Thank you. Thank you. So I love your book. I really do. Great silver bull. My first question is, again, I said the way I became a silver bull was looking at fake money, 1965.

3:28And I started going to the bank after that. I caddy. I was 17 years old. And I caddy. I got paid a dollar for nine holes. And I take that dollar into the bank, and I cash it in. And I go through all the silver coins and pull out the real silver ones from the fake silver ones. And little did I know I was following Gresham's law. So, Peter, let me ask this first question right off the bat. How did you become a silver bull, and why did you write such a great book? Well, becoming a silver bull was from doing research, frankly, which eventually, obviously, ended up in the form of the book. But having done the research and looking at the supply-demand fundamentals for silver, it was just it was just undeniable it was just so compelling and i have a an interesting sort of little anecdote people asked me in the last few months as you can imagine when silver ran up to you know 120 people said peter how did you know silver was cheap you know four years ago when you wrote the book and i said well that was easy nobody wanted to talk to me now everybody wants to talk to me and um yeah i mean you know if you had done the research and and you obviously did and from way back um understood the fundamentals it was very clear silver was undeniably unquestionably um way too cheap and the bullish case was just so compelling that you know i had to own silver and I had to write about it.

5:14So it's actually, I have to give credit to a former colleague of mine who was a financial editor who said, Peter, you have to write a book. And frankly, what happened was the way it happened was this would have been in early 2021. So we were about a year into the COVID pandemic and he kept, you know, egging me on. And I said, Bill, you know what, you're right. And I also realized that being in the middle of a pandemic, there could be almost no better time, right? You just put your head down, do the work. And I said, why let a pandemic go to waste? Write a book. And it took me about nine months to actually write and then a few months to get sort of the thing up and running and make it available.

6:00But, you know, I said in there, everything that I thought about silver, it's really a bit of a reference guide. I talk about the history of silver, the fact that it's been used as money for longer than gold has, the fact that it is likely responsible for more transactions globally, historically than gold, because it buys small amounts. And so in your daily life, you've, you know, until 50 years ago, as you pointed out earlier, silver was in our daily lives and we were using it to do regular transactions, buy groceries, you know, pay for fuel, pay for regular services. And so, you know, the book talks about that history.

6:47It talks about macroeconomics and why precious metals and silver in particular are so compelling and have been and have been our money for, you know, thousands of years. And the last, really the last 50 years is an experiment. As you know, Robert, it's not normal. It's not typical not to have precious metals backing our everyday money. And so I don't think this experiment is likely to end too well, especially if you don't own these metals. But, and then I talk about the supply demand fundamentals, how silver is used. It's both, as you pointed out, an industrial metal. We can talk about that. Actually, there's some interesting developments in the last few years on that, but it's an industrial metal and it's a precious metal, money.

7:36And really, you can't really say that to the same degree for silver, for other metals as you can for silver. It is exceptional. It's like a hybrid metal, really. Then I talk about how to invest in silver and silver miners, which is my focus these days with my newsletter. And ultimately we're going to go, like, I have some ideas about how, you know, this bull market will eventually pan out. I do think that this time will in fact be different. And I say that with reservations because nobody knows the future, but I do think the end game will be different. And so, you know, people will at some point want to, I think, cash out, especially from the miners.

8:22But we are a ways off, probably at least a decade from that. But it's going to be one for the record books. Well, the other thing I say is that iron was the metal for the industrial age. And silver is the metal for the information age. And so what's happening right now, the consumption of silver is going through the roof. with solar panels, water purification, medicine, EVs, and all this. Plus, every tomahawk missile, I think, carries about two or three pounds of silver in it. So when they go boom, the silver disappears forever. And I think that's one of the reasons I'm so bullish on silver, is because it's the metal of the information age.

9:14and its consumption is expanding, unfortunately, the supply is not. So I'm forecasting$200 silver. Of course, I'm like those big silver bulls from years ago when the Hunt brothers tried to corner it. And I'm such an optimist on silver, it hasn't hit$200 yet. But I've done pretty well over all these years. In fact, I started a silver mine in Argentina, and I made the mistake of selling it to Yamana, and they bought it. And it was one of those things, I wish I had not sold it. So that's how much of a silver bull I am, more than a gold, and I own gold mines also. And I love gold. I really love gold.

10:07But silver is the metal of today. more than copper, I think, in many ways, because again, it's a monetary metal. It's industrial metal and a monetary metal. So I'm calling for$200 silver. Again, this is not financial advice, so just take it with a grain of salt. Just remember, I'm a silver bull for years, and there's a lot of disappointed silver bulls all along the wayside, right, Peter? I mean, they know it's going to go up they know it's going to go up it doesn't go up exactly exactly well you know i like to say it took 45 years for it to take out that 50 level from 1980 to 2025 and then it took three months to double to 100 so when silver gets going i mean that's proof and I you know again never say never but I highly doubt we're ever going back below 50.

11:06I think that you know we are that will now be and even perhaps higher but I think that will form the new floor the previous ceiling is now going to be a new floor price sorry price floor and we look you know when it went to 120 it corrected very quickly in fact right around that time I I said, this is too high. It got here too fast. It's not realistic. It's going to correct about 40%. That's essentially what it did. It went to 67 intraday a few days later in late January or early February. And now we've not really meaningfully seen it below 70. And just a few days ago, we were well above 80. So I think this sort of 70, 80 dollar is the new base.

11:53And we're going to work higher from there. But to your point, Robert, about consumption for industry, what people need to realize is just five years ago, half of silver was consumed by industry. Last year, it was 67%. So it went from half to two thirds in five years being consumed by industry. Now, this is not optional consumption. consumption. The industry consumption of silver is necessary. It's very, very difficult. And in most cases, essentially impossible to substitute. So you have to have that silver, they need to buy it. And I think that, you know, I was said two years ago, that the silver people were asking, well, you know, we've been in a few years of structural deficit, how come the silver price isn't moving.

12:49Well, I did the research and I figured out that we had these big stockpiles, above ground stockpiles. People own it privately, but mostly in the futures exchanges, the COMEX, the LBMA, the Shanghai. And I said, the big consumers, the big industrial consumers, they have been able to go and buy, tap into these existing inventories and draw them down and buy that silver at the prevailing price, you know, at market price, which was somewhere between say 25 and$30. So they were not putting pressure on bringing new silver to market. They could buy what was already produced in the past and sitting in inventory.

13:31And at the time, this was two years ago, I said, we've been seeing these inventories draw down in a big way. Hundreds of millions of ounces have come out of the market and we've got 12 to 18 months left. So this was February of 2024. By last summer, so we were about the 18 months in, we saw silver start to take off. And there was relentless buying. And then it went through the$50 level in October. And then it had a small pullback and then just went wild after that. Well, if I could add to the thing, this is the biggest thing is that wasn't JPMorgan fined because they were playing games with it?

14:10Absolutely. Yes. I think they were fined$900 million or something. And the thing I want to say is that this, you know, a real silver coin today, I go into a store and I test the sales clerks. I said, this is a real silver coin. I'll give you this for$10. They go, it doesn't make sense to them. I said, but today, one of these is$10. And that's how much silver is going up. And that's why I'm so bullish on it. I think$200 silver is not out of, I'm not only guessing, so don't take my word for it, and this is not financial advice. I'll just tell you what I do. And I hold real physical silver. You know, it's kept in a safe in Liechtenstein, outside of Switzerland.

15:06I don't keep it near my home because you invite people over then but that's how bullish I am on silver because again it's an industrial metal it's very long time to bring a silver mine online it's harder to find it's generally a derivative of another you know they're looking for copper or something and they find silver and the biggest part about it is is people like JP Morgan the big banks are playing games with it. You know, they sell into the future silver to drive the price down so they can buy at a lower price and it comes back up again. So that's why eventually the games are about to end when the silver supply ends.

15:54And that's why I'm saying$200 silver. And I'm not expecting you to give a forecast. That's my forecast. It's just a guess, really. It's just because I'm a big, fat, silver bull. So anyway, what else would you like to add to the reasons for buying silver? Well, I'm going to give a guess too, which is, and I talk about it in the book, and it's not financial advice for me either, but my target is actually a bit higher. I think we're going to eventually see as much as$300 silver. And in the book, I give about four or five different examples, indicators that I used. Today is May 2026, and it's about$90 an ounce.

16:41So I'm calling for$200, and you're calling for$300? That's right. That's right. And I mean, you know, I looked at different indicators to come up with my forecast. And when I wrote the book, I looked at things like the gold silver ratio. And if you look at when we were at the end of that big mania in 1980, the ratio when gold was$850 and silver peaked at$50, essentially right around the same day, the ratio had dropped 15 to one or just below. So meaning it took 15 at that those prices, it took 15 ounces of silver to buy one ounce of gold. So I said, okay, if I look into the future and I make some guesses, hopefully informed ones, about where I think gold is going, I thought, and this is going to be interesting, Robert, you'll see.

17:39When I wrote the book, I said, well, you know what, looking out, you know, several years, I think gold can reach $5 ,000. Well, here we are. Here we are. And I said, if gold reaches$5 ,000 and I use the 15 to one ratio, that's$333 silver. Well, we haven't made it yet to$300 silver, but we have reached $5 ,000 gold. And I, in fact, now think we're ultimately going to go well past even$10 ,000 gold. So even if you get a 30 to one ratio, but you're at$10 ,000 gold, you're still at 300 and a few dollars for silver. I also looked at, I looked at the Dow to silver ratio. I looked at the average home price to silver ratio when silver hit that peak in 1980.

18:28And if you looked at average home prices in 2022, when I wrote the book, and if you looked at those prices then, and the ratio, if it were the ratio were to fall back to what it was in 1980, again, it was always pointing me to a price in the$300 range. And that's why, again, I didn't pull it out of a hat. it's by using different indicators, making certain assumptions, and that was the general range. If I could add one more thing is, I own silver mines and I own gold mines. My proudest achievements, I took a gold mine public on New York Stock Exchange, and that gold mine was in Utah. But the thing I found out about silver, it's really hard to find in many ways.

19:20I mean, it's less valuable than gold, but it's harder and harder to find, and consumption is going up, plus the national debt is going up. And there's a book by a friend of mine, Lawrence Lepard, who says the big print, and they're going to start printing money like crazy to cover the debt. And when they print money, that means the dollar goes down in value. If the purchasing part of the dollar the yen or the peso the euro goes down and the price of precious metals go up so those are some of the reasons i'm so bullish on silver and like i said it's an industrial metal as well as a precious metal so we come back we'll be talking to my i finally got to meet peter krauth he's my hero a great book the uh good silver bull and uh i am a silver bull big fat one but we come back We'll be talking more about Peter and what he sees for the price and the value of silver.

20:23We'll be right back.

20:28Most financial advisors won't tell you this. There's an asset sitting under$100 an ounce right now that Bank of America says could nearly quadruple. Rich Dad's been buying it since 1965. It's silver. Here's the lesson most people never get. Silver isn't just money anymore. It's the backbone of the modern world. Every electrical vehicle runs on silver. Every solar panel runs on silver. Every AI data center running right now runs on silver. The world is consuming silver faster than it can be mined. Global demand just hit a record high for the fifth consecutive year. Supply hasn't kept up. That's not opinion.

21:10That's supply and demand. And right now, the chart is screaming. silver around$80 today bank of america forecast$309 rich dad loves gold too gold above$5 ,000 jp morgan forecasts$6 ,300 by year end but if gold is the foundation silver is the opportunity hiding in plain sight rich dad's free info kit shows you one of the best ways to start investing in both right now. Visit richdadlovesgold.com to get your free info kit. Again, that's richdadlovesgold.com. The wealthy figured out silver a long time ago. Rich Dad figured it out in 1965. The only question is, when will you? Visit richdadlovesgold.com right now to get your free info guide.

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22:46I especially love how everything is auto-responsive and that I can customize the mobile experience the way that I like. Are you ready to create a website? Go to Wix.com slash Harmony. That's wix.com slash harmony welcome back uh my guest today is peter krau a man i've looked up to for years he's out of the book the big silver bull i'm a big fat silver bull and uh he's going to explain why i you know why we're so optimistic on silver and one one big reason i'm optimistic and silver is I own gold mines, I own gold coins. But the reason I buy what I call green boxes as silver eagles, U.S. silver eagles, and there's 500 each inside of them, is because when that dollar collapses, which I think it will, you know, and they start printing, then I'm going to start using silver as spending money.

23:50Whereas I wouldn't do that with gold. You can't go into a supermarket and it's like a$10 ,000 gold coin here. They won't take it. But silver is a little bit more walk-around money, I call it. And so that's why I'm such a big, fat silver bull. So they're called silver eagles. The silver, every country, not every mint produces them. They come in bars and coins and all this. So I don't recommend, I'm not an advisor, but we're not saying buy silver, but I definitely consider it. So Peter, what other reasons do you have for silver, your bullishness on silver? So Robert, you mentioned earlier about how hard it is to find, and I can certainly confirm that.

24:40So, you know, for your viewers, it's important, I think, to realize that only about 25 % of silver that comes out of mines comes out of actual silver mines. The other 75 % comes as a byproduct from mining other things like gold or copper or lead and zinc. So, you know, here's what's interesting. if a miner that produces silver as a byproduct not their main metal you know is happy to to get paid for the silver that they produce that silver is really not that important to them it's a small part of the revenue stream sometimes they hardly even report it so they're happy to accept a high price for silver but they don't go out of their way to try and produce more and I think that's one of the big reasons that silver production, silver, mined silver has not kept up with the pace of demand.

25:37So the last time or the highest amount of silver ever mined was in 2016. And it was about 900 million ounces of silver that year. We have not ever, so that's 10 years ago, we have not ever matched that level. So imagine silver demand has exploded. We have run deficits since 2020. And we're not producing more silver. So where's it going to come from? People are, you know, have said to me, well, there's lots of silver that's owned privately, you know, these private hordes. And if the price is high enough, it'll come to market. And perhaps, and to some extent, probably yes, but not at 40 or 50 or$60.

26:22It's going to have to be at much, much higher prices that some of that silver will start to come to market. And I'm not so sure how willing people will be to let go of that silver. So I don't operate on that assumption. I operate on the assumption that the market is going to remain very tight for many years. You know, just solar panels alone require 20 % of the annual supply of silver. That one application is 20 % of all of the silver produced every year. And with this war in Iran and oil prices having shot up, a couple of things have happened. We've seen lots of interest in things like EVs because people want to avoid cars that have to consume gasoline.

27:11We've seen people turning to solar panels because their heating oil, home heating oil, has shot up in price. You know, anecdotally, there's the largest electricity provider in the UK. It's called Octopus Energy. They saw solar panel sales jump 50 % in February and March. People are looking for alternatives. And I've said, you know, with these much higher oil prices, you've got countries, large manufacturing companies looking for alternatives to much higher oil prices. Not only does it wreak havoc on their planning when they have to suddenly pay much more for oil or not even be sure if they're going to get oil, but they look for alternatives right away.

28:02They want to make their supply chains more robust. It's very reminiscent of what happened during COVID. They want to make their supply chains more robust, so they're going to look at nearby sources of oil. They're going to look at alternatives for oil. and they're going to be willing to pay more for certainty. So they're going to lock in contracts that are going to span maybe five years, ten years, be willing to pay more for the certainty of the energy. Guess what? That's inflationary. And here's an interesting point. This is from Ember Energy. They do some great research. And they said, here's an example.

28:40You have$100 million and you need to generate electricity. You can generate with natural gas one and a half terawatts of energy. But guess what? It'll last you one year. If you spend that same$100 million on solar panels, you're also going to get one and a half terawatts of energy. But for 25 years, because you're not burning it up, you're buying panels that produce that energy. And that's their lifespan, 20 to 30 years. So the math is pretty simple. And that's why I think even with higher silver prices and silver being a big part of solar panels, I don't see the demand for solar panels suffering in terms of even with higher silver price environment.

29:28And with the price of oil going up, I recommend everybody getting an EV. That's true. And I have oil wells. I sell oil. But I still like EVs because I just plug it in. So the question is this. there's silver bulls and there's silver haters. So what are some of the complaints or the justification for silver haters hating silver? Well, you know, it's never going to go up. It's never going to go over 50. Now that it's over 50, it's soon going to go back below 50. People just, you know, love to be pessimistic. I don't get it. But I can tell you that I've read a few times that there's financial or economic behavior research that says that people who are optimistic actually are more successful investors.

30:21So that's something to keep in mind. And you know what, Robert, as you have, and you've been very patient, but also on the right side of the trade, I bet that the price you paid for some of your silver is almost insignificant compared to today's prices. I mean, it's barely a rounding error. It's been very profitable to be a silver investor in the last few years. And I think that there's this thing called recency bias. people always look back at the recent past and think oh well you know this is how things have played out that's how they're likely to continue to play out going forward and i think that's you know like kind of like sticking your head in the sand like an ostrich um i think i say do your research um then place your bets be patient and if you've done good work good research odds are good that your your thesis is going to play out and i'm not saying you have to you know allocate everything you have to this one trade, but at least have exposure to certain things.

31:30And again, this is not advice, but I think having some exposure on some level to silver is for everyone. One of the other knocks against silver is its volatility, right? It is absolutely more volatile. Both the metal and the stocks are more volatile than many other asset classes. more than gold, for example. But people can use that volatility to their advantage. You know, buy when it's come off. Sell if you want when it's run up and take some profits. If you're going to invest in the miners, start with metal is my view. At least that's the approach I take for me. Start with the metal. And then if you're going to get some exposure to the miners, if you have a lower risk tolerance start with the larger mining companies you know that companies like pan-american silver and wheat and precious metals these are some of the largest public silver companies in the market period globally and in the 2000s they both had different periods they both had run-ups over a few years of 16 times 1600 percent so you can get that with the larger companies in this space, you don't have to take the biggest risk with the small explorers.

32:52It's really something that can make for life-changing returns. My biggest thing is I look at the national debt. Is that going up or down? I think that's an easy answer. What is the demand for silver? It's going up. Whereas gold kind of remains neutral because you don't really need gold for industrially, primarily money and jewelry. But silver, like I said, there was iron that drove the industrial age, and silver was driving the information age. So that's why its consumption keeps going up. And a lot of the silver came from recycling and people going into selling their silver pottery and stuff like that.