Are Gold and Silver About to Crash? Shocking Predictions

Last week, gold price closed above $4,300 an ounce and silver price closed right around 64. But what will happen if the Fed does in fact raise rates this week? And what about these forecasts? Is gold really supposed to go up to $6,000 an ounce this year? Before I get into the video, I want to let you know that I have an amazing sponsor coming up that is a gold producer and Eric Sprott is a major shareholder of this company. Their name is Gold Group Mining. More on them later. Thank you so much for watching. I do sincerely appreciate it. Gold price is currently sitting at $4,347 an ounce and it is actually up about 200 bucks over the last three months. So it is trending higher. Meanwhile, silver is sitting at $64.37 and if you compare that to the three-month low of right around $54, I would say silver is doing pretty good as well. But is everything about to change? Look at this headline. Hot inflation data sets up a Fed rate hike. Currently, it is looking like the Fed is on track to raise rates this week, which typically would be bad for gold and silver, but it actually goes deeper than that. The Cobacy letter recently shared this. The shift we are seeing right now is extraordinary. Markets now see a base case of four interest rate hikes by July 2027. To put this into perspective, at the start of 2026, markets saw four interest rate cuts during this time period. That's a difference of 200 basis points between interest rate expectations now and nine months ago. These are by far the most hawkish Fed policy expectations since the Fed began raising interest rates in March of 2022. It's clear the market believes higher for longer is back and inflation is here to stay. Wednesday is going to be an eventful day. All eyes are going to be on the Fed meeting September 15th and 16th to see what they do with interest rates and how this is going to affect the markets. The one thing I will say is that the markets are forward thinking. So with Wall Street expecting rates to go up, I would guess that this has already been baked in to gold and silver prices. And so when I see all of these individuals and banks predicting gold to go much higher, I don't even flinch. I mean, every single one of these predictions you're looking at here would send gold to a new all-time high. Gold has never even been to $5,600 before. Let's dive into a few of these. How about Bank of America's Michael Hartnett, who says the trade is still long gold? Hartnett linked the renewed demand for gold to his broader anything but dollar investment theme, which focuses on assets that could benefit from or provide protection against declining confidence in the U.S. currency. And maybe that is why we are seeing China and countries around the world deciding to go with gold over U.S. dollars. If we just look at China, you could see People's Bank of China gold holdings have risen to 2,345 tons, making China the world's fifth largest official gold holder and accounting for around 7% of global official gold reserves. Gold holdings have increased 20% since 2022, and at the same time China's holdings of U.S. treasuries have fallen 41% since 2020. That pairing is more important than either number alone. One reserve asset is rising while the other declines. But here's the thing, it's not just China that's doing this. In the World Gold Council survey, 84% of reserve managers expect gold to represent a larger share of global reserves over the next five years. This is up from just 76% in 2025. And here's the kicker, 89% expect global central bank gold reserves to increase over the next 12 months. So yeah, I would say Bank of America strategist Michael Hartnett's prediction of $6,000 seems pretty reasonable. Here is a French bank also predicting $6,000 an ounce by the end of 2026. They're actually calling this a conservative estimate. Jordani Research is predicting only $5,000 an ounce by the end of this year, but they are predicting $10,000 gold by the end of this decade. That is a bold prediction. And even JP Morgan has come out and said they expect gold to hit $6,000 by the end of this year and possibly even go up to $6,300 next year. But what about short term? Well, Rashad Hajiyev recently put this out, saying his next four to six week target is $4.9 to $5,000 gold by early to mid October. So let's bring this all together. How could these predictions become a reality? Well, the CEO of the Scottsdale Mint recently shared this. When you realize that politicians can keep taking on insane debt loads because they just ask for more printer, please, you realize that inflation is a policy. We can no longer vote our way out of this. If you understand this, it makes your moves easier. Now, beyond all of that, there's something even crazier going on right now. The World Gold Council and Metals Focus put Q1 2026 industry all in sustaining cost at $1,785 an ounce. So that right there is the cost to mine one ounce of gold and margins hit a record $3,076 an ounce up 134% year over year. This is peak operating leverage. This perfectly segues into what I want to talk about next. Billionaire mining sector legend Eric Sprott remains a notable shareholder of gold and silver producer Gold Group Mining Incorporated, who is today's amazing sponsor, trading on the New York Stock Exchange American under the ticker symbol G-O-R-O. Based on public filings, he invested approximately $6.75 million Canadian dollars in March 2025 via private placement and added $1.5 million Canadian dollars in the subsequent private placement in August of 2025. He then acquired an additional 325,000 shares in the open market on August 14, 2026 for approximately $1.27 million Canadian dollars. Gold Group Mining produces gold and silver at its Don David and Cerro Prieto mines and is advancing its San Francisco project toward a potential production restart. And they have a large-scale gold-rich volcanogenic massive sulfide or VMS development project in Michigan. The company is an active gold producer, so that creates an interesting combination. There is current production, there's infrastructure and operating experience, there are opportunities to improve existing operations and potential for additional resources through exploration. Gold Group has also reported a cash balance of $59 million U.S. dollars and no material debt on a pro forma basis as of June 30, 2026. And by the way, the CEO of the company is the second largest individual shareholder. Following Gold Group's merger with Gold Resource, the company now controls four 100% owned assets across Tier 1 North American mining jurisdictions. So let's dive into their cornerstone assets. Number one, we have the Don David Gold Mine in Mexico, which is Gold Group's flagship underground producing project. The operation features fully installed modern infrastructure producing high-value zinc, lead, silver and copper gold concentrates. Don David has provided steady dependable cash flow that supports Gold Group's corporate activities. Their second producing mine is the Cerro Prieto Gold Mine in Mexico. It's their 100% owned open pit heap leach gold operation and it has been in production since 2013. Now this mine is a big deal because it may provide Gold Group with operating leverage to changes in the gold price as heap leach operations typically require lower sustaining capital than more complex mining methods. And then we get to their first development asset, the San Francisco Project, which is also in Mexico. Now the San Francisco Project is a formerly producing heap leach gold operation similar to the Cerro Prieto Gold Mine and it's currently being evaluated for a potential restart. Gold Project's second development asset is the Back40 Project in Michigan, USA. This advanced stage project is also 100% owned and as I mentioned before, Back40 is high-grade gold-rich volcanogenic massive sulfide or VMS deposit that contains gold, silver, copper, and zinc mineralization. The company's strategic vision is to build Gold Group into an intermediate gold producer. None of these outcomes are guaranteed and each requires successful execution, but that is precisely what makes the next stage of Gold Group's development important to watch. Make sure you do your own homework and find all relevant important disclosures below in the video description. Thank you for watching and be sure to check out Gold Group Mining once again ticker symbol G-O-R-O on the New York Stock Exchange American. To finish out the video, I just want to say I know that a lot of eyes are going to be on the Fed this week to see what they decide to do, but no matter what they decide, I know that a lot of individuals and banks are still predicting gold and silver prices to go much, much higher, so I have an eye towards the future, but I want to know where do you think the metals are going to go from here? Let me know down below in the comment section. Thank you so much for watching and I will see you all in my next one. Silver Dragons, out.