INTERVIEW WITH MY FRIEND DAVE
My friend Dave has been an ardent gold lover for over 40 years. He stays abreast of any and all information about precious metals, and I consider him to be an expert. He owns a large amount of gold, most of which he purchased under $300 an ounce. We caught up with him at his residence.
Cook: You own a lot of gold and silver, and you’ve seen it go up a long way. Would you tell people to keep buying or should they sell?
Dave: If the choice is between fiat currency, i.e. the U.S. dollar, or precious metals, this is the time to turn dollars into gold and silver. Over 90% of my net worth is now in gold and silver.
Cook: So, you’re saying to keep buying?
Dave: Yes. The last gold and silver bull market lasted for 11 years. The current bull market is just a few years old and should continue into the 2030s.
Cook: What factors make you so bullish now?
Dave: The breakout is just beginning. Goldman Sachs says gold will hit $4900 in first half of 2026. Billionaire Ray Dalio says buy gold now. ETFs and central bank buying is accelerating. Gold is up over 51.65% in the past 12 months, and it has outperformed the S & P 500 for the last 25 years. Some analysts see gold topping out at anywhere from $5,000 an ounce to $25,000 an ounce. But what that really means is the dollar will virtually collapse. An ounce of gold is an ounce of gold. It doesn’t change. What changes is how many dollars it takes to buy an ounce of gold. In 2000 it took $252 dollars to buy an ounce of gold. Today, it takes $4,000 dollars to buy the same ounce. You are witnessing the slow-motion collapse of the dollar.
Cook: What are the technical factors for silver?
Dave: Silver has just broken out of the 45-year cup-and-handle technical formation. These are the strongest bullish formations you can find, and this cup and handle formation goes back over 5 decades. We have never seen anything like it. Silver is ready to explode and for the first time ever, has broken above $50 an ounce. The last time silver hit $50 was in 2011 but for silver to equal the 2011 high it would have to rise above $200 an ounce. It is very early in the bull market.
Cook: How high could it go?
Dave: Silver could easily reach $100 by years end. And gold should be closing in on $5,000 by Q2 of 2026.
Cook: Gold seems quite high. Are you sure people should be buying it at this price?
Dave: Gold is not expensive; the dollar is weak. As long as the government continues to spend and borrow and the Fed continues to create trillions of new dollars out of thin air, gold will continue to rise – or more accurately the dollar will continue to lose value.
Cook: What else do you see in the future?
Dave: Years ago, I used to follow the advice of my friend Ken Coleman who published a newsletter titled “The Fed Tracker.” His general theme was to always follow the Fed. The Fed is now cutting interest rates and as soon as the stock market starts to correct, they will revert to QE (buying the debt and creating money out of thin air, which further dilutes the value of the dollar). All of the major central banks are buying huge amounts of gold – China, India, Russia, Poland and Saudi Arabia just to name a few. Central banks have stopped accumulating dollars and are buying gold. For the first time, major U.S. brokerages are recommending to their clients to put 20% of gold into their portfolios. That will steer trillions of dollars into gold. Gold has never been more important to mainstream finance.
Cook: Don’t you think it’s long overdue for a correction?
Dave: No. Not yet. Remember gold is not an investment, it is financial insurance. Why would you sell your financial insurance in a world that is facing wars, and the destruction of the U.S. dollar? All assets go up and go down, but the trend is what is key. And the trend for both gold and silver is up.
Cook: You are a true believer.
Dave: $4,000 gold is an all-time high. This is gold screaming at us that the global monetary reset is accelerating (away from dollars and into gold). It is not too late to add to your positions. Faith is eroding globally in the U.S. dollar. As the Fed continues to cut interest rates while inflation is rising, then you know what will happen to the dollar. Central banks are moving their reserves from dollars (U.S. Treasuries) to gold. Central banks have purchased gold in 27 of the last 28 months. The People’s Bank of China has increased its official gold holdings for the 10th consecutive month. We are witnessing a global movement away from the dollar and into gold.