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In this episode, Andrew Sleigh breaks down the latest developments impacting the silver price and gold price, including interest rate policy, inflation risks, and global financial instability.
Physical Gold And Silver Vs ETFs: Why Investors Continue To Buy Gold And Buy Silver
In this episode of the Ask Andrew podcast, Andrew Sleigh joined Kellen Ainey for a deep discussion about the growing importance of physical precious metals ownership and the increasing concerns surrounding the global financial system. The conversation focused heavily on the difference between physical ownership and paper investments such as ETFs, while also exploring inflation, currency devaluation, central banking, purchasing power, and long-term wealth preservation. Andrew Sleigh explained why many investors are now reconsidering their exposure to traditional financial markets and instead choosing to buy gold and buy silver as a form of protection against economic instability.
Andrew Sleigh stated that one of the biggest reasons people choose physical precious metals over ETFs is direct ownership and immediate access. He compared physical metals to holding cash at home versus having digits on a bank screen. According to him, if banks experience closures or systemic issues, physical assets remain accessible while digital or paper assets may become inaccessible. He emphasized that “physical metal in your hand is here” while ETF positions remain dependent on financial institutions and counterparties. He also warned against relying on safety deposit boxes, noting that banks are not responsible for their contents. Throughout the discussion, Andrew Sleigh repeatedly stressed the importance of eliminating counterparty risk by owning physical bullion directly. He explained that ETFs are still paper trades and are mainly designed for short-term traders rather than long-term wealth preservation. He described conversations with clients who now regret purchasing ETFs because they are facing large capital gains taxes when trying to convert paper positions into physical metals. He explained that many investors are only now realizing they “actually are in a paper trade.” The discussion reinforced why investors continue to monitor the gold spot price and the silver spot price while increasingly choosing physical ownership instead of paper exposure.
Gold Spot Price, Silver Spot Price, And The Risks Of The Financial System
The conversation expanded into broader concerns about the financial system, banking stability, inflation, and the tokenization of financial assets. Andrew Sleigh referenced David Webb’s work “The Great Taking” and discussed statements from BlackRock CEO Larry Fink regarding the future tokenization of financial assets. According to Andrew Sleigh, tokenization could eventually result in investors losing direct control over their assets. He warned that if the banking system encounters major disruptions, investors holding ETFs could face severe liquidity issues because selling requires buyers and functioning banking infrastructure. He explained that if banks close, wire transfers stop, and ETF holders could effectively become trapped in their positions. In contrast, he described physical gold and silver as “universal money around the world.” He held up a silver Maple Leaf coin during the discussion and explained that bullion is recognized internationally without needing currency conversion. Andrew Sleigh argued that precious metals maintain intrinsic value while fiat currencies rely entirely on confidence and acceptance. He compared modern fiat currencies to historical hyperinflationary currencies, including Zimbabwe’s one hundred trillion dollar note, emphasizing that paper money has no backing beyond public trust. The discussion repeatedly circled back to inflation and the ongoing erosion of purchasing power, with Andrew Sleigh warning that inflation is likely to accelerate further. He suggested that eventually consumers may need to spend their wages immediately because waiting even a few days could significantly reduce purchasing power. The episode highlighted why many investors continue to monitor gold spot price and silver spot price charts while looking for long-term stores of value outside the traditional banking system.
Buy Gold And Buy Silver During Currency Devaluation And Inflation
Another major theme throughout the interview involved inflation, currency devaluation, and the long-term purchasing power of precious metals. Andrew Sleigh explained that while the dollar value of gold and silver changes over time, the actual purchasing power of metals remains remarkably stable. He used Venezuela as a key example, describing how the country has repeatedly removed zeros from its currency after periods of hyperinflation. According to Andrew Sleigh, despite the massive changes in the quoted currency value of silver, one ounce of silver continued to purchase roughly the same amount of groceries throughout the period. He explained that at one point a silver Maple Leaf coin was worth hundreds of millions of Venezuelan currency units, and after a currency reset it became worth tens of thousands, yet the practical purchasing power remained nearly identical. Kellen Ainey noted that the hedge itself was not changing — rather, the currency being measured against silver was weakening. Andrew Sleigh agreed and emphasized that silver and gold maintain value while currencies eventually devalue. The discussion also compared Canadian and U.S. dollar purchasing power, with Andrew Sleigh stating that both currencies have lost substantial value over time even if exchange rates fluctuate. He argued that gold and silver continue to buy approximately the same amount of goods they purchased decades ago, reinforcing their role as long-term stores of wealth. This section of the conversation strongly emphasized why many investors continue to buy gold and buy silver during periods of inflation, rising debt, and monetary instability. Investors searching for physical bullion products often look toward options such as gold bars and coins and silver bars and coins as part of a long-term wealth preservation strategy.
Precious Metals, Interest Rates, Mining Stocks, And Wealth Preservation
The episode also touched on interest rates, market manipulation, mining stocks, and broader economic expectations. Andrew Sleigh commented on the relationship between oil prices and precious metals, suggesting that oil price increases often strengthen the petrodollar, which can pressure gold and silver prices lower in dollar terms. However, he added that during a true currency collapse or hyperinflationary environment, all major assets could rise simultaneously as the dollar weakens. He acknowledged that market manipulation exists but explained that trading dynamics fall outside his primary area of expertise. Later in the discussion, the conversation shifted toward Federal Reserve policy and interest rates. Andrew Sleigh speculated that future economic weakness could force major interest rate cuts, particularly if markets experience sharp declines. He suggested that governments ultimately want currency devaluation because it reduces debt burdens, though he warned this also increases the cost of living for ordinary citizens. Throughout the conversation, Andrew Sleigh consistently returned to the idea that physical precious metals represent peace of mind. He explained that after decades working as a financial advisor and mutual fund broker, he personally moved entirely away from paper assets and now only owns physical gold and silver. He stated, “I haven’t held any paper assets since, and I only buy physical metal.” He added that unlike paper investments, precious metals ownership allows investors to avoid constantly worrying about market volatility. The discussion concluded with a warning that future economic turmoil could create major wealth transfer opportunities for those holding hard assets, much like previous historical depressions and currency collapses. Andrew Sleigh argued that during severe financial crises, holders of physical gold and silver may be able to acquire undervalued assets while fiat currency holders struggle financially. For investors researching long-term precious metals ownership, educational resources such as invest in silver for beginners, the best gold and silver bullion to buy, and cheapest silver coins for sale continue attracting strong interest from investors looking to better understand the precious metals market.
Why Investors Continue To Invest In Gold And Silver
The overall discussion between Andrew Sleigh and Kellen Ainey centered on one core theme: preserving purchasing power and protecting wealth during periods of economic uncertainty. Andrew Sleigh repeatedly emphasized that physical ownership removes counterparty risk and provides direct control over assets in ways that paper investments cannot. Throughout the interview, he encouraged viewers to think beyond short-term market fluctuations and instead focus on long-term purchasing power, monetary history, and financial resilience. As inflation, debt levels, and concerns surrounding the global banking system continue to rise, many investors are increasingly looking toward physical precious metals as a hedge against uncertainty. Whether monitoring the gold spot price, silver spot price, mining stocks, or broader macroeconomic trends, the discussion reinforced the growing interest in tangible assets that historically maintain value during periods of financial instability. Investors looking to diversify and protect long-term purchasing power continue to buy gold and buy silver as part of their overall wealth preservation strategy.
Kellen Ainey (00:00)
Hi there everyone and once again, welcome back to the Ask Andrew podcast. We're here joined by Andrew Sleigh. Andrew, thank you for joining us again.
Andrew Sleigh (00:08)
you're welcome. Thank you very much for having me back.
Kellen Ainey (00:11)
So why don't we just dive right in? So Andrew, our previous Ask Andrew episode was a huge hit and we'd like to sincerely thank all of our viewers for the incredible support on the videos and reels we've been putting out to you. The engagement, comments and shares have been amazing to see and we truly appreciate everyone tuning in and being part of the conversation.
Andrew, you had shared a lot of great insights in that video. But for our viewers who may be newer to precious metals, what would you say is the biggest reason someone might choose someone might choose physical gold and silver over ETFs? And if you even want to take a brief five to 10 minutes and kind of explain the differences and the strengths of physical as opposed to the paper trading side.
Andrew Sleigh (00:51)
So when these things, when this financial system gets into real trouble, banks are in trouble, et cetera, which that's all coming down the pipe, there's no stopping all of that. It's very similar to, I'm gonna do an analogy. If you have 10,000 cash in your drawer at home, or you have $10,000 in digits on a screen at the bank, and when the banks close, you lose what's at the bank. And the 10,000 cash is still there.
and you have direct access and direct control, you can go out and use it instantly. So looking at that, you apply that to the ETFs and versus the physical metal. You should have a certain portion of physical metal under your direct immediate access. And when you reach your limit of that, then you have to do a secure storage anywhere but the banks and the safety deposit box.
they're not responsible for the contents. And when the banks close, you lose what's there. So never hold anything valuable at a bank. now, on the ETF side, whatever company doesn't matter, these are all still paper trades and they're really designed for short term, you know, the day traders, et cetera. But if you're a long-term holder, what you're going to find out is, you know, people that
You know, we have, I have clients now that are faced with, bought ETFs, you know, many years ago, and some of it's not in a tax sheltered category. And they've got huge capital gains to get out of it because now they're realizing they actually are in a paper trade. And when the system goes down, they may or may not have it. And that's making them nervous enough that they're now wanting to cash out their ETF.
pay a capital gains and then move over to metal, which they're now saying, I should have done that in the first place. And you wouldn't have any of this capital gains to deal with. So at the end of the story, it's ⁓ physical metal, you know, that's in your hand is here. And a paper trade is at a financial institution somewhere. And you may or may not have access to that. And I wouldn't bet that you do now.
There's lots ⁓ of literature out there on this. David Webb on The Great Taking has discussed this at length and ⁓ Larry Fink, and David Webb's a good guy and Larry Fink's a bad guy from BlackRock. And he confirmed a few years ago that all financial assets will be tokenized in the future. And that's underway now as we speak. There's lots of stuff ⁓ rumbling around the internet on that.
So why are they tokenizing this? so the answer there would be at some point when they flip the switch on this, these assets are going to be transferred away from you and you won't have access to it anymore. Furthermore, when the banks finally do shut their doors, and that's, I believe, fast approaching, ⁓ how do you sell your position just on a banking crisis alone?
So forget about anything else. Just if the banks close on Monday, for example, ⁓ how do you sell your ETF to get your cash, your investment into your hands? And you can't because in order to be ⁓ selling a thing, there has to be a buyer. And if the banks are closed, nobody can wire money to do a purchase. So your position is locked where it is and you're not going to get out. ⁓
So that's why there's such an importance of having physical metal. ⁓ There's no conversion necessary. When this gets ugly, this is universal money around the world. No exchange necessary. And this is, ⁓ I'm holding an old silver maple coin. So I can take this anywhere in the world and it's recognized as money. No exchange necessary. All the countries of the world have signed off on bullion, silver and gold.
With currency, you have to do a conversion, not acceptable. So in our own countries, wherever you are, you will be able to use this as a form of barter and paying for stuff because intrinsically it is money. does have value. Paper, as in the stuff that I've shown before.
the hundred trillion dollars in Bob Wave note.
What is that worth in Canada? So then what is the difference of this versus the 20 dollar Canadian bill? It's both paper. It's both ink. What's the difference? It's just acceptance. It's just acceptance. That's all it is. You know, this would be, you know, this is nothing more than a tool of teaching for me.
Kellen Ainey (05:49)
Not much, if anything.
Well, the government backing. Exactly.
Andrew Sleigh (06:13)
And I bought a whole series of this stuff in plastic sheets and I paid 20 bucks for them. All the sheets were more money than the bills. And so it's purely a piece of paper with ink and there's nothing backing this and there's nothing back in the Canadian dollar and there's nothing back in the American dollar. It's just acceptance and confidence in the currencies. That's all it is. And people are going to realize that as we go along further because
Inflation is about to get a lot worse and when it starts to get at a fever pace That's when people start waking up and going I have to I have to buy all my groceries the afternoon I get paid because if I don't I can't You know two days later. I can't I can only buy you know, I know I buy 10 % less groceries than I used to you know, whatever the case is so ⁓ Anyway This you never have to convert
So if you have an ETF, you're trying to convert it into cash, whatever country you're in, and then you're taking the cash and then you're buying this. If you already buy this, there's no conversion necessary. There would be, as the dollar system is still intact, there are people that are selling the physical to go back to cash to pay for something that's currently still working in the cash system. But when the
When the banks are shut down and we go to a stable coin scenario, there's going to be an awful lot of people that want to transact in this because it's freedom. And the currency, the digital currency will not be, but that's another rabbit hole. So I hope I answered the question. That was.
Kellen Ainey (07:57)
You did you did I honestly expected you to go even more so into counterparty risk and whatnot, but you kind of went right for even past that I'd say
Andrew Sleigh (08:07)
Yeah, I think so. ⁓ Yeah, so you're right. So just in case anyone. So this I own and this is in my hand and there's no counterparty risks to this. I own it. It's in my hand with an ETF. The counterparty risk is it's at a financial institution and you have no control of it. If you think you do, you really don't. And at some point that will become realized.
Kellen Ainey (08:22)
Exactly.
Well, even the fact where I think a lot of people don't realize that they're buying into a fund backed by the metal, not actually the metal itself. And when you really explain that whole relationship between the conversion rates, redemptions, all of it, it really starts to show and I'm sure you've had this experience before with clients where they almost have an epiphany on the phone with you.
Andrew Sleigh (08:59)
Yeah, it's quite often it happens. ⁓ so then they're turning around and making phone calls and ruining their broker's day and whatever the case is. But at the end of the day, it's their money. They need to do what they need to do to save their assets. The financial institutions and financial advisors of the world do not understand this, unfortunately. And it's no ⁓ slight on them because I've been in that business for a long, long time.
I didn't understand this until 10, 10 or 11 years ago. And so now ⁓ I think the risk is so great having monetary assets in the system. I don't know why anybody is, is there at all? You know, I really don't like day traders. I'm not addressing them because they're sitting in front of the screen, day trading all day long and they're in and out. But those that are wise in that business still have their core holdings in physical metal.
Kellen Ainey (09:42)
Yes.
Andrew Sleigh (09:58)
and everything else they can write off if they have to. Those that are just investing and then going to their day job and a week or two later or a month later, they look at their portfolio. Those kinds of investors right now are going to be in really ⁓ perilous water here soon and they could get caught and then it won't be pretty for what they lose and don't invest any more than you care to lose. ⁓
Kellen Ainey (10:25)
No,
exactly. Exactly. I think a lot of people tend to forget that rule.
Andrew Sleigh (10:31)
Let's remember what Eric is doing. mean, he's 5 % in, in, uh, uh, mining stocks and he's 95 % roughly in physical gold and silver and holds nothing in ETFs.
Kellen Ainey (10:43)
Exactly. No, you are you you are right. I just think a lot of a lot of the average investors haven't yet woken up as you would say. Why don't we move on here and it is actually kind of getting into more little bit more geopolitical but
We do have a question from a viewer. Have you noticed the recent inverse relationship between oil prices and precious metals? It seems that when oil rises, gold and silver tend to weaken, and when oil falls, precious metals strengthen. For long time precious metal investors, this dynamic feels unusual. Do you think large institutional or macro traders are increasingly using oil and precious metals as opposed trades?
Andrew Sleigh (11:25)
well, that's entirely possible. mean, that question is really pretty outside my wheelhouse since I don't do trading of any sort like that. ⁓ But ⁓ I'm sure it's entirely being done. The ⁓ manipulation in the market is ⁓ very high. And I do agree, like when oil seems to go up, that also strengthens the dollar, the petrodollar.
So that's one of the reasons why gold and silver go down because it's measured in dollars, US dollars. So that's one of the reasons why there's that strange correlation that keeps happening. Eventually when it breaks, I think you're going to see all these assets ⁓ going up at the same time. So, and that's a measure of the dollar collapsing. So stock prices will go up, gold and silver goes up, oil goes up, everything goes up. But I think that's further down the road. ⁓
during the hyperinflation type of scenario.
So I can't comment too much more beyond that because ⁓ it's all manipulation and it's stock trading and whatnot. That's not my area really of comment.
Kellen Ainey (12:35)
No, of course, I think at the same time, they just wanted to get the perspective from yourself with more so the precious metals background, specifically the silver background even. ⁓ Nonetheless, we can move on here. So our last question actually. So the Iran war has erased expectations that the Fed would cut interest rates this year, with more investors now forecasting actually a rate increase instead.
Higher interest rates are typically bearish for gold, it more expensive for holders of other currencies. Do you possibly see the Fed to increase interest rates? And if so, how will this position gold and silver, if differently at all?
Andrew Sleigh (13:24)
The new Fed chair that's coming in, Walsh, ⁓ he is talking about trying to, he's a guy that wants to do lower interest rates for the president. And most times they can't, they have to follow the two-year bond rate, I believe they have to follow. So they don't have a lot of power. They just do what that is doing. Now, when they do intervene, it has to be a crisis. And I think that's what's playing out right now is that
They're trying to get the stock market to take a pretty large move downward and justify a real slash in interest rates from the new Fed coming in. ⁓ So if that occurs, and that could be anywhere over the next number of months, ⁓ it's really, I don't have any idea. ⁓
I think you're going to see, ⁓ I also want to say that the correlation of a new Fed coming in typically is followed by a downward trend in the market.
So ⁓ I just heard that the other day and I'm like, ⁓ okay. I don't pay attention to that stuff all that much. so when a new Fed comes in, usually there's a market downward trend. It doesn't mean it's the day after the week after it could be weeks or a month or two or three. don't know what it is. So we're going to have pressure on the market to go down.
which will put pressure or an excuse for the Fed to really like cut rates. And when they do, it's going to be, I believe, massive cuts. It's not going to be like a half point. That's not going to do anything. I don't believe. Again, not my area of expertise. It's just my opinion. ⁓ so the president wants to have, know, he wants to devalue the currency. So they admit they want to devalue the currency.
Of course, most people don't really understand what that really means, that means all you do, you keep doing that. Every, all your goods and services go up. If the cost of living goes up, you're paying your ability to pay bills gets more difficult. So ultimately they're trying to devalue the dollar. It's a race to the bottom. So in that environment that's coming and has been in existence at different phases over the last number of years.
⁓ That's another reason why the safe haven is just holding gold and silver. ⁓ If you want to hold assets and not worry about what's going on, unless you're like a day trader who's doing that kind of stuff, but just for the average person that's not wise to the market and understand it all, which is the vast majority of people, ⁓ you just stack physical gold and silver and you don't have to worry about the metal. ⁓ Pardon me, worry about the markets.
Strangely enough, you know, and I've may have said this before, you know, as an advisor, I've been for 35 years and had my own business as a mutual fund broker. I've never felt more peace with my assets than when I got out of that stuff 10 years ago, and I haven't held any paper assets since, and I only buy physical metal. And I don't really care what happens to the market. can go, it can go to zero. I still have ounces.
Kellen Ainey (16:48)
Yep.
Exactly. You have a tangible currency. So you have that level of security even.
Andrew Sleigh (16:58)
You know, I have this, you know, and, ⁓ and that doesn't change. Now this goes up and down in value, but I still have ounces. and that brings me to a point about up and down. ⁓ at some point we're not going to measure, you know, silver and gold and dollars, cause it won't matter anymore. And to clarify that, I mean, you know, let's go back to our favorite test case, Venezuela, where, you know, at the beginning of January of this year, it was 350 million of the, of the current currency for one ounce of silver.
And by the end of January this year, it was 28,000.
Now what happened? Well, in the last 10 years, Venezuela has switched currencies three times. Every time they do, they drop a number of zeros. So what happened this January of 2026 was ⁓ they went from the ⁓ Boulevard Verte back to Sovereign Boulevard and they dropped five zeros off the currency. Okay.
Kellen Ainey (17:43)
Yeah.
Wow.
Andrew Sleigh (18:04)
And that's the third time they've done that in 10 years. Okay. So, to clarify this one ounce silver maple for the last 10 years in Venezuela buys roughly months worth of food. It hasn't changed at all. And the currency has gone up and down, up and down, up and down. So at the beginning of January, this coin was 350 million.
Sovereign Boulevard pardon me Boulevard verte and it bought me one month's worth of groceries roughly and at the end of the same month it now was 28,000 Sovereign Boulevard and it still buys me a month's worth of groceries. What's That's it You know who in Venezuela is paying attention to how much currency this is worth because the currency is worth nothing They go to the store
Kellen Ainey (18:47)
Exactly, it has the same buying power.
Nobody. Exactly. No, it's that the
hedge on the silver itself is changing, not the value of the silver.
Andrew Sleigh (19:06)
Yeah, I think so. I think it's right. So in dollar terms that's changing and ⁓ But not in purchasing terms and
Kellen Ainey (19:15)
Well, no, what I'm what I to clarify what I said, the the asset that the silver is hedged against is weakening making silver the stronger of the two, right? And that's in that scenario, the Venezuelan dollar, can you say the currency once more?
Andrew Sleigh (19:34)
⁓ the sovereign boulevard now and it was the boulevard verte earlier
Kellen Ainey (19:39)
Exactly. So the value of the silver isn't changing. It's just the value. It's, it's when it's compared to the different currencies that it has that big kind of silver is worth X amount of this dollar X amount of that dollar. But again, realistically, the buying power of silver silver has remained the same.
Andrew Sleigh (19:58)
That's it. And we can go right back to Canada, US. Gold and silver still buy the same as they did 50 years ago. And yet, why is gold in Canada like whatever it is, 6,500 bucks, 6,500, whatever it is, and in US, 45, 4,600? Why is it that much?
Kellen Ainey (20:06)
Exactly.
what all it has to do is just the exchange and then the buying power of the dollar that you're buying with. So in this scenario, the Canadian dollar has a well, significantly lower buying power than the US dollar.
Andrew Sleigh (20:30)
That's it.
Yeah, compared to the two of them, yes, in our own countries, they've lost the same amount of purchasing power. So both countries, the dollar is seven tenths of a cent. So we're not even a penny anymore in purchasing power, we're seven tenths of a cent. And that's why gold is 7,000 bucks and that's why gold in US is 4,600, 4,700 bucks. But yet the gold will still buy whatever buys and then
Kellen Ainey (20:44)
Yes, yes.
Andrew Sleigh (21:06)
As we go along and the hyperinflation starts and ⁓ everyone starts to really struggle, assets will drop in price tremendously against gold and silver, just like they did in the Great Depression. And this is the key, absolute key for wealth preservation is right here, as I'm about to say, is ⁓ the currencies will all pass and die and devalue to nothing. And people will be impoverished that hold currency.
And those that hold metal will still have wealth and they'll be able to buy the assets of the people that become impoverished because there's going to be everyone loses their house, loses vehicles, tractors, trucks, you name it. Everyone's going to be struggling to be able to feed themselves and all these things will be bought ⁓ for pennies on the pound. As in the old saying goes, one or two ounces of gold for a city block or a house.
you know, less than a hundred ounces of silver for a house, 65 ounces, whatever the exchange rate is. And that's coming again. And so that's where you position yourself and then wait for the storm to go by. And it's going to be very imperative. People really understand this soon because we're getting there.
Kellen Ainey (22:24)
Yeah, we're getting kind of to the to the ninth hour, I guess.
Andrew Sleigh (22:29)
Yeah, thanks again, Kellen. So sorry guys, a little rant from me. So call the toll for number 1-888-861-0775. My extension is 230. And if you get my voicemail, just leave a brief message and I'll call you back as soon as I possibly can.
Kellen Ainey (22:49)
Beautiful. Thank you so much for your time today,
Andrew Sleigh (22:52)
Thank you.
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