When The Mag 7 Fall… Gold Explodes!

Added: 2026-05-26

[00:00:00]Good morning and welcome to the new week's join the dots.

[00:00:05]Um, I might make this a shorter show because we have some editing issues. So, um Let's have a look. First of all, macro.

[00:00:12]Macro, macro, macro. And I've got a link here from JP Morgan. It'll be link number one.

[00:00:18]And [snorts] they talk about they say that gold is on a back burner at the moment cuz everyone's extremely excited about paying 300 times earnings for Tesla and a load of other rubbish that they can't see the end of its bull run.

[00:00:31]That's how That's how crashes work. It's how they develop. No problem.

[00:00:37]So, JP Morgan says they see gold 6,000 by the year end and they see an average of 5,200 through this year. I'll link that article so you can have a look at it.

[00:00:48]To me, it's explaining X's inverted pyramid.

[00:00:52]Because when people wake up to Tesla not being worth 300 times forward earnings, when they wake up to the S&P at 28 or the magnificent seven at 28 times earnings, when the historical average is 16, so that's a 50% fall allowing for a bit of overshoot, then the money will spill over and come looking for gold and silver. We know that story, X's inverted pyramid. Go back and watch the show if you haven't seen it. It's brilliant.

[00:01:20]Brilliant. Not the show, X's pyramid.

[00:01:22]Okay, the show's quite good though.

[00:01:24]Right, link number two, China Deepseek, the Chinese AI. What are they doing?

[00:01:30]They're doing what they always do.

[00:01:33]They're cutting the price by 75%.

[00:01:36]Can you imagine the cash flows for these tech companies that believe they can sell AI to an impoverished population for a million pound a day?

[00:01:48]Now, Deepseek are reducing it by 75%.

[00:01:52]The Chinese do this with everything.

[00:01:55]They smash the market, take the market, increase the price over time. It's a very simple business plan.

[00:02:04]So, what are our 28 times Magnificent Seven 28 times PE Magnificent Seven going to do when the share when the sale price of their product falls by 75%?

[00:02:15]>> [laughter] >> It's not going to be good, is it? Come on, let's join those dots.

[00:02:20]Nothing gets away with the massive spend that's been spent without problems. And the problems are going to be pricing because the competition can't be controlled, can it?

[00:02:31]I mean, the Magnificent Seven can't sit in their normal way, ring each other up in California, and say, "Hey guys, let's put the price up to this because we can."

[00:02:39]And no one in the Senate will stop us because we're paying them. So, it's not a problem.

[00:02:43]But when China comes in and says, "Well, we'll reduce prices by 75% for deep sea."

[00:02:48]How's that going to react?

[00:02:51]It blows their It blows their cash flows out the water, doesn't it?

[00:02:55]And they've now got so much debt, so much debt, the risk reward is just totally wrong.

[00:03:03]Not saying it will definitely happen.

[00:03:04]I'm just saying the risk reward is against you. So, why would you pay 28 times forward earnings?

[00:03:10]You must be mad.

[00:03:13]Or you're a trader. You can trade it.

[00:03:15]And you might get it right, you might get it wrong.

[00:03:17]Um Right, miners, I just want to come on to this because a lot of people talking about miners. And I have I've invested my money in miners as I've told you, and it's better than the the actual metals at the moment. Who knows?

[00:03:30]I believe it will work better in the long run. But the thing that's coming to the fore is location of mines. You must ensure your miners are located in safe jurisdictions.

[00:03:42]What we're seeing in Africa, particularly Burkina Faso, Mali, Niger, we're seeing resource nationalization.

[00:03:50]And of course they will.

[00:03:52]Some Some of the South American states it'll happen. Some of the Asian countries it will happen.

[00:03:57]You must have your minds in safe jurisdictions. To me, you need a miner that is colossal. You need a miner that has huge positive cash flows. You need a miner that has no debt.

[00:04:11]Then you have a journey.

[00:04:14]Otherwise, you have possible nightmare as some of these assets are stolen by governments.

[00:04:22]Um that is in a piece called Business Insider Africa. So, you can look that up if you want. Look up miners under Business Insider Africa. I haven't linked it cuz we've got too many other links. And the third link is the most important in my eyes for you.

[00:04:37]And this is hantavirus.

[00:04:40]And what this is is Robert Malone breaking down what Robert Kennedy Jr.

[00:04:46]has just announced because the fear porn coming out the press, the media, the corrupted media, the anti-Trump media.

[00:04:54]It doesn't matter what happens, it's anti-Trump. They He could He could make everyone a millionaire tomorrow and they'd still criticize him.

[00:05:01]So, I don't believe the press when they just criticize for criticism's sake. I don't believe them. So, I look at Robert Malone and I read this piece and it's a huge piece on the difference between the PREP Act used for hantavirus and the PREP Act used for COVID. So, if you want the truth, not a load of lies that confirm your misbeliefs, if you want the truth on the use of the PREP Act by Robert Kennedy Jr., read this piece, okay?

[00:05:36]These are the facts. The media is the fear porn. What do you want? Facts or fear porn?

[00:05:43]Up to you. Link number three. Please read Robert Malone. You won't get a more honest, straightforward scientific review on what is happening. Remember he was co-chair of the AKIP committee before he resigned because he said it just ridiculous.

[00:05:59]The The institutional resistance to truth within the medical fascist community in America just said to him, "You know what? I'm over 60. I don't need this in the last period of my life."

[00:06:16]Great shame because he's a great mind and a great scientist.

[00:06:20]So, anyway, that's link number three. If you've got any questions on hantavirus, read it and understand it.

[00:06:29]Okay? Link four.

[00:06:31]Will gold reach its logical monetary value of $27,000 per ounce? Now, that is based on the world's M2 supply. So, if you've got money supply M1, gold would be if if gold was to match it dollar to dollar, it would be $1,050 an ounce. But if you use M2, which is generally the more regarded as sensible because M1 is just currency and notes in circulation, notes and coins in circulation, M2 is a wider uh valuation, and that comes up with gold at 27,000. Do I see gold at 27,000?

[00:07:08]No, not not for a long time.

[00:07:10]To me, um a lot of false M2, in other words, M2 that hasn't really got a value, but is out there in the system, will be wiped out.

[00:07:20]Will be wiped out as we see property crash, equities crash from 28 times. As we see these things crash, then a lot of M2 will be wiped out. So, to me, I would put it, I don't know, 10 to 15,000.

[00:07:33]I'll be very [snorts] happy with 10 to 15,000.

[00:07:36]So, I see the extremes of 1,000 M1, 1,050 27,000 M2, but half of M2 will be wiped out.

[00:07:45]So, I'm in the 10 to 15,000 range. Then, I'm in the 10 to 15 times gold silver ratio range, and then I'm in the 1,000 to 1,500 silver range, aren't I?

[00:07:56]By deduction. So, there we are.

[00:08:00]And also, remember, when you have a panic, that really does reduce the amount of M2.

[00:08:07]And Ecclesiastes pyramid, where does the M2 go? It runs into safe assets.

[00:08:15]Okay, now I've got a piece here by Donagan.

[00:08:19]Um I will try and read some of it.

[00:08:23]Um this is Donagan interviewing Ed Steer. Now, Ed Steer is a very solid guy.

[00:08:27]Um no problems with Ed Steer.

[00:08:30]Let's see if we can get it. It's here.

[00:08:33]So, what does Ed Steer say? I'll try and run through this. He says, "A year ago, the big eight shorts were quietly covering their traditional shorts. In other words, the big eight bullion banks. Then, speculators came in and joined the party. That caused a severe price rise and the need for the big four to come in and smash the market. One week after the fall, the big eight still had 45,000 short contracts.

[00:08:57]And while at the lowest, they're still short. So, they are low, but they're still short.

[00:09:02]Friday's traders report, this is Friday just gone, Friday's traders report short position might show the lowest shorts, but the funds are not going to sell their longs or take short more shorts.

[00:09:14]So, prices should rally.

[00:09:16]So, from here, Ed sees us at record lows and the most wildly bullish setup in Ed's 25 years.

[00:09:28]So, you can go and watch that if you wish.

[00:09:30]Um I'll do a bit more on it tomorrow, but I want you to keep this short because we have editing issues. So, thank you very much for watching Join the Dots. Have a great week and cheers from Mike and and Craig and Mr. Pugley.

[00:09:44]Thank you.

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