Today Gold and sliver news 122

The US banks appear to be long. The European banks appear to be the ones left holding the bag. JP Morgan appears to have gone wickedly long. Over 750 million ounces closed out its short position. Things are happening at a level we've never seen. And to see millions upon millions upon millions upon millions of ounces coming into ComX every single month tells me that the people pulling those strings, they are the most wellunded. Yes. But more importantly, the most well-informed traders on the globe. People should pay very, very close attention to that. As far as >> you're watching Silver News Daily. Subscribe for more. What if I told you the biggest silver player on the planet just flipped the table? Not quietly, not gradually, but in a move so violent it may have already sealed the fate of the entire paper silver market. For decades, silver has been treated like a controlled asset. A market where price didn't reflect reality. where shortages could exist without consequence and where the same names always seem to be on the right side of the trade. But now something has changed and the change is so dramatic that it's forcing people to ask a question they've never seriously asked before. What happens if the largest suppressor of silver becomes its biggest hoarder? JP Morgan, a bank long accused of leaning on silver prices through massive paper shorts, has just done the unthinkable. Not only have they exited an enormous short position, they've gone in the opposite direction in size, scooping up physical silver on a scale that borders on unbelievable. We're not talking about millions of ounces tucked away for trading convenience. We're talking about hundreds of millions of ounces of real metal, removed from circulation, taken off the board, and locked away as if someone with inside knowledge is preparing for something the rest of the market still refuses to see. At the same time, silver is vanishing from comics at a pace that makes normal explanations fall apart. Tens of millions of ounces gone in days. Registered inventories drained, deliveries exploding. And while this is happening, the price is rising not because of hype, not because of retail speculation, but because the physical market is quietly screaming that supply is no longer keeping up. This isn't how a healthy paper market behaves. This is what stress looks like right before something snaps. And here's the most unsettling part. This isn't happening in isolation. Industrial demand is relentless. Governments are locking down supply and geopolitical blocks are treating silver not as an investment, but as a strategic necessity. The system that relied on infinite paper promises is suddenly colliding with a world that wants the metal itself. When the biggest player decides it would rather own silver than sell it, the message is clear, even if most people aren't ready to hear it yet. Because when the smart money stops betting against silver and starts hoarding it instead, the question is no longer whether the price moves higher, the real question becomes how violent the repricing has to be before the paper illusion finally breaks. >> I mean, and you have JP Morgan and Black Rockck as the custodian of the world's largest silver trust SLV. The same company who paid a $920 million fine to the Justice Department for suppressing or spoofing the metals market is allowed to be the custodian along with their pals Black Rockck of the world's largest silver trust. You would think it would be far easier um and more palatable for the world when they look at the world and say what all we did was close SLV. You know, unless you have a basket, which would be millions and millions and millions and millions of dollars worth, these are the people that actually fund the account typically like the commercial banks, none of us can take possession of it anyway. So, it's an asset that tracks the price or it's an ETF that tracks the price of silver. um and not even that great at that. But it is the largest silver trust in the world. And it would be far easier for JP Morgan to close that account, pay everyone their fair share of what their account was worth at the end of business on Friday and say to the world, we all we did is what the perspectus allows us to do. Now you're sitting on a huge stockpile of silver without breaking any laws or infringing any civil liberties. And you know, it gets interesting when we talk about JP Morgan. By the way, the Economic Times just came out with a report saying that they hold over 750 million ounces of physical silver. Um, and that's worth more than $40 billion. And it would be the largest stockpile on the planet if that were the truth. Um, the the report is very interesting. It it says they didn't just stop shorting silver, they actually flipped and became the biggest long in the market. Um it said that in 6 weeks JP Morgan added 21 million ounces while closing a 200 million ounce paper short position. So by removing that paper short they remove the pressure that keeps the price down and while buying the physical metal well this is going to push push push push push uh prices up much higher. They also mentioned that they took 16.6 million ounces out of the registered inventory. Um, and it left COMX completely gone. We don't know where it went. And when 16 million ounces leaves Comx, it ain't coming back ever. That would be my guess uh an industrial um silver is what's called a gif and good. What gif and good means is the higher the price goes, the greater the demand. Most assets don't work that way. They say they care for high prices are higher prices. uh not with silver because you have the industrial component of it where you need it to make your Tesla, you make your iPhone, to make your solar panels, and Samsung, which is one of the things you and I talked about offline there. Uh the rumors are that yeah, they've been flying around um or or Samsung flew to Mexico and to strike a deal. But this is what a gift and good would be if you need that silver and it's called inelastic, by the way. silver is inelastic, which which basically means you only need a, you know, 30 bucks worth of silver to make a $1,500 iPhone. You don't care what the cost of silver costs. You need it. And it represents a very small price or a little bit in a in a high-tech, you know, relative in terms of its cost. A few hundred ounces maybe in a in a in a military grade missile that sells for $5 million. You don't care what it costs. You must get it. And so you get all of these these entities fighting with one another, so to speak. A battle. >> For years, silver has lived in a strange financial twilight zone. A market where the numbers never quite lined up with reality. Demand kept rising. Inventories kept shrinking. Yet the price was always pushed back down as if an invisible hand refused to let silver behave like a free market commodity. Investors were trained to believe this was normal, that silver was boring, abundant, and somehow immune to the forces that drive every other scarce resource on the planet. But that illusion only worked because of one thing, paper. The silver market became dominated by paper contracts, layers upon layers of promises to deliver metal that almost no one ever asked for. Banks learned that as long as most participants settled in cash, they could sell silver they didn't have over and over again, creating the appearance of endless supply. This wasn't a side effect of the system. It became the system. Price discovery moved away from physical metal and into a derivatives casino where volume mattered more than reality. And year after year, the same names showed up holding massive short positions, capping rallies, crushing momentum, and reinforcing the belief that silver simply couldn't break free. What made this even more effective was how subtle it became. There was no single moment where suppression was obvious. Instead, every rally faded. Every breakout failed. Every shortage story was dismissed as temporary. Over time, investors internalized the message. Silver spikes were meant to be sold, not trusted. Physical demand was treated as irrelevant noise compared to the paper market's dominance. That conditioning is powerful because it keeps people passive right up until the moment it stops working. But suppression only works as long as the suppressors are willing and able to play their role. It requires confidence that metal will remain available, that contracts won't be challenged, that no one important will demand delivery in size. The moment a major player decides that paper exposure is no longer safe, the entire structure starts to wobble. And that's what makes the current moment so different. The entities that once benefited most from this system are now quietly backing away from it. When a bank that spent decades leaning on silver suddenly abandons the short side, it's not a technical adjustment. It's a philosophical shift. It suggests that the risk has flipped. that the danger is no longer being long silver, but being caught short when physical metal is no longer easy to source. That's when suppression stops being a strategy and starts becoming a liability. And the market hasn't fully processed this yet because it never had to before. Silver investors were conditioned to expect disappointment, to expect intervention, to expect that rallies would be crushed. But conditioning only works until reality overwhelms it. The paper system can hide stress for a long time, but it cannot erase it. Pressure accumulates quietly, invisibly, until one day it becomes impossible to ignore. The real shift isn't just that silver is rising. It's that the mechanisms that held it down are beginning to fail from the inside. And once that process starts, it doesn't reverse smoothly. It accelerates. Just before we get going, we just launched the official Silver News Daily Telegram. To kick things off, we're running a 10oz silver giveaway. Yes, real physical silver, not a voucher, not digital credits, actual bullion. This Telegram will be our new home for real-time silver discussions, market insights, collection picks, and everything precious metals. It's where the community truly comes alive. Here's how to enter the 10O Silver Giveaway. Be subscribed to Silver News Daily on YouTube. Turn on the notification bell. comment 10O giveaway on three separate videos. Be an active member of the Telegram group and say hi. Once we hit 500 active Telegram members, we'll pick one lucky winner to receive 10 ounces of silver shipped directly to you. So, get in early. Stay active. >> I generated uh number one. Number two, I found a lot of flaws and and material flaws in what he was saying and and I'll certainly go over that. But when we talk about the way gold was confiscated in 33 during the Great Depression, um it was done because the gold standard was tied to monetary policy. It wasn't about environmental or energy policy. It was monetary policy. It was a much bigger deal back then. Uh I looked up HR 9847. It's a law with mandatory private reporting. Excuse me. That's what he's saying. It is law with mandatory private reporting with strategic metals tied to energy infrastructure. That that's not the case. In fact, what HR9847 is is creating early childhood leaders act and it will amend the higher education act of 1965. So first of all, the bill number is not correct. And what had happened with metal being classified as strategic or critical mineral, it was done by executive order. It was not done by a bill that was submitted to Congress. It was it was um an executive order by President Trump. And and you know, if if you dig through the bill, uh if you dig through the executive order, it it it it focuses on agency actions to expedite permitting and energy infrastructure projects. It does not include provisions requiring mandatory rep reporting by private companies or government acquisition of private resources or reserves. And in other words, I believe it was if anything misinterpreted. Now he says things in there that are just flatout not true. He talks about a form 8300. Now form 8300 would be if you brought your whole family Kaiser to Nordstrom's and bought everyone, you know, their their whole wardrobe for the year um and paid over 10,000 in cash. You pay 11,000 bucks in $100 bills. Nordstrom's is going to issue a form 8300. Or if you go to a Ford dealership and say, "I want to pay as much cash as I possibly can." Um, you know, well, they might say you can pay up to $10,000 with no reporting, but anytime you go over that, you will get a form 8300. And and that's in any retail capacity. Uh, that's just where did the cash come from? Um, what's your social security number, the number of the bills that you're using, and it's it's it's it's an ugly form. I filled it out for clients before, but if you have, you know, uh, a income stream that you report through your taxes that would match your ability to come up with that kind of cash, you'll probably be largely ignored. It's the people who don't have that who all of a sudden show up to spend $20,000 on something that may get uh questioned. >> The moment JP Morgan started unwinding its paper short position, the entire silver market quietly crossed a line it can't uncross. For years, those paper shorts acted like a lid, a constant source of artificial supply that appeared whenever silver tried to run. Every rally ran into the same wall because that wall was built out of contracts, not metal. But when roughly 200 million ounces worth of paper shorts get closed, that wall doesn't just crack, it disappears. Think about what that really means. A paper short isn't just a bet, it's a promise. It's an obligation to deliver silver at some point in the future, even if that silver doesn't exist yet. As long as the system functions, that promise can be rolled, offset, or settled in cash. But closing a short of that size isn't a bookkeeping adjustment. It's an admission that maintaining that promise has become too risky. It means the bank no longer wants exposure to a scenario where silver prices spike and physical delivery becomes unavoidable. What's critical here is timing. This didn't happen during a quiet overs supplied market. It happened as inventories were tightening, as deliveries were surging, and as industrial demand was accelerating. In other words, the exact moment when being short silver becomes most dangerous. If JP Morgan believed silver was abundant and easy to source, staying short would have been profitable and safe. Walking away tells you they don't believe that anymore. When a short is closed, that artificial supply vanishes. It's the equivalent of removing hundreds of millions of ounces from the sell side overnight. And unlike retail traders, a bank of this size doesn't act emotionally or impulsively. These decisions are made months in advance, modeled across scenarios that include extreme stress. So, if they're exiting paper exposure now, it suggests they see outcomes where paper promises collide with physical reality in a very ugly way. This is where the psychology of the market starts to shift. Other participants notice when a dominant player leaves the short side. Liquidity thins. Volatility increases. The confidence that rallies can be capped fades. And once that belief starts to break, price no longer behaves politely. It starts to move in jumps instead of steps. What's even more telling is that this exit didn't coincide with a collapse in silver prices. In the past, massive short covering usually came with engineered sell-offs designed to scare longs. This time, silver held firm and kept grinding higher. That alone suggests the usual playbook isn't working anymore. Strong hands are absorbing supply, not dumping it. So, the paper exit isn't just about JP Morgan protecting itself. It's a signal flare to the rest of the market that the risk profile has inverted. Being short silver used to be the safe trade. Now it's starting to look like the most dangerous one. And once that realization spreads, paper markets don't unwind gently. They scramble because when too many players try to exit the same door at once, the price doesn't ask permission before it moves. >> Lynch pin of all of this where, you know, their their their paper claims are backed by very little metal. Somewhere around 2 billion ounces of paper claims backed by about 140 million ounces. And that used to work when no one asked for delivery, but now they are. And this is a big big problem. Um, and there's something that caught my eye because I've talked about this a lot. I've talked about Tom Lango's theory that um, and I I like to give him credit because he's the one who came up with it, but when I think about it and put all these pieces together, I'm thinking to myself, man, it's it's it's interesting. Now Tom says, you know, that Trump was upset with the European aristocrats because he believes and and the Bank of England that they were involved in election interference 2016 or 2020 rather uh and the color revolution all all aimed at, you know, keeping Trump out of office. And I want you to think about a couple things and tell you what I see right now. And and again, this isn't my theory, but when I put the pieces together, some of these I didn't hear from Tom, but I I think about them and and put them in, I'm like, "Yeah, wow. That that's got legs." So, let's just pretend he is mad at at the Bank of England. He's trying to stick it to him. Uh and the European banks, uh the old money, right? Um because one of the things he is trying to do is take money creation away from the Fed. And we'll get to that in a moment. But anyway, so the first thing that he did was to bring all this gold and silver back. Now, for years, gold and silver has flown back and forth between the Comx and the LBMA, and these Western banks were in concert together to suppress the price of gold and silver. Now, silver, I would argue, was suppressed for the military-industrial complex. That wasn't just the United States. It was France, it was England, it was all of the, you know, uh, all of the western countries that had strong militaries that used that to keep their thumb on the world, so to speak. And at the same time, gold was used to hold down the price of gold largely through futures contracts where they go short in in New York to drive the price down and go long in London to offset their books and metal would flow back and forth. And this was done in cooperation between all of the banks in the West. Gold was held down because of something called Gibson's paradox, which speaks to the inverse relationship between real interest rates and the price of gold. So if the West suppresses interest rates for 30 years to create an illusion of prosperity in our 401ks and our house values and keep everyone, you know, borrowing from the bank, uh using currency, buying bonds, all of the things that the Western bankers would want, you step on the price of gold, right? So this has been going on forever. Well, Trump says, you know, we we need we need to bring all of this gold back because there's tariffs and silver. So said, you know, don't worry, it'll all flow back. Well, the tariffs aren't there for this. This was about reshoring, right? So, all of this metal has come back, leaving the Bank of England rather vulnerable in terms of the LBMA. >> Closing the paper shorts would have been shocking on its own, but that wasn't the real tell. The real tell was what came next. While most of the market was still focused on charts and headlines, JP Morgan was doing something far more important in the background. They weren't buying contracts. They weren't trading volatility. They were taking delivery quietly, steadily, relentlessly. They were accumulating physical silver on a scale that completely rewrites the supply picture. 750 million ounces. Let that number sink in because it's hard to grasp what it actually represents. That's close to an entire year of global mind production sitting in the hands of a single institution. Not spread across ETFs, not promised on paper. Real bars, real weight, real metal that can't be rehypothecated once it's locked away. When someone controls that much physical silver, they're no longer playing the same game as everyone else. They're stepping outside the system. This is where the narrative really changes. Paper positions are flexible. They can be closed, rolled, hedged, or erased with a keystroke. Physical silver is different. Once you take it, it's yours, and the market has to live with the consequences of that removal. Every ounce held by strong hands is an ounce that can't satisfy industrial demand, can't meet delivery obligations, and can't be used to calm a stressed market. Physical accumulation doesn't just express a bullish view. It creates one. And it raises a disturbing question. Why would a bank with access to more data, more insight, and more influence than almost anyone else choose to hold silver this way unless they believed availability itself was becoming the problem? You don't warehouse metal at this scale unless you expect it to be difficult, expensive, or impossible to replace later. This isn't about chasing upside. This is about securing supply before the door closes. What makes it even more telling is that this accumulation didn't happen overnight. It happened as inventories were already declining. As deliveries were accelerating and as industrial demand was tightening the noose, instead of easing pressure, this hoarding amplifies it. It concentrates risk for everyone else while insulating the holder from chaos. In a market built on confidence and promises, physical control is power. This is why comparisons to historical corners keep coming up, but they miss the point. This isn't about forcing a squeeze through leverage. It's about quietly removing metal from circulation until the system can no longer pretend it's abundant. There's no announcement required. No drama needed. The math does the work on its own. And the market hasn't fully adjusted to this reality yet. Prices are still trying to reflect a world where silver flows freely, where inventories can be replenished, and where paper claims are interchangeable with metal. But when one entity is sitting on a horde of this size, that assumption becomes fragile. Every new demand shock hits harder. Every delivery request matters more. Every missing ounce echoes louder. This is how structural breaks begin. Not with a crash, but with accumulation. Not with panic, but with preparation. And once enough metal is locked away, the market doesn't get to vote on whether it likes the new reality. It simply has to adapt. >> Continues to leave the ComX, and when it does, it's gone. Completely out of the system. Um, and as metal keeps draining, COMX does what it always does. It raises margins. And now, because prices are running too hot, or not because they're running too hot, but because the delivery pressure is is is becoming too much, it's building. And so, higher margins force levered traders to sell, people who are on margin. And it would typically shrink open interest. meaning open interest is who's got long contracts that could stand for delivery. And you know, one of the things that to me it I if you look at it as a kind of a pressure uh release valve for physical delivery, it's not about the price. That's what people think it's the price is getting too high. No, not this time. I think it's more about all of the deliveries and the people on margin who stand for delivery. They have to unwind their position. But you know the idea is get rid of paper claims faster than the real metal leaves right and but it's not working. It's not working even with lease rates right now around 7% which are way above normal. It's because the people that are buying this stuff right now are not on leverage. People that are buying this stuff have lots of money and they're standing for delivery. It's kind of like, you know, if you live in a in a in a really fancy neighborhood in a gated community down here in Florida. uh and there are a lot of them. People coming in to buy houses that are not taking out mortgages. They're coming in and paying with cash. And that's why higher mortgage rates doesn't affect the property in those areas. It's the same thing here is that rising lease rates only affect those on margin who are trying to use leverage to to achieve what they're trying to do. But that's not happening here because the buyers that matter, well, they're not leverage traders and um they're industrial users. They're long-term holders. They're sovereign wealth funds. They're central banks. And so all this really did was move the silver from the weak hands to the strong hands who came in and bought it. And you can see that because normally when they raise margins, price collapses like that. Not this time. In fact, it came right back up and and here we are today. Uh you this happened on Friday and here we are today. Silver's up over two bucks again to uh six over $64. And so um what was supposed to scare the market just turned in, you know, to kind of a shakeout rather and the the leverage got cleaned out and the available silver got tighter and the price floor got stronger. Uh something to think about. Um and this is happening at the same time rates are rising in London again lease rates there lease rates there about 8%. Um, and again, you're talking about how London Silver has been the >> Once you understand what's happening with physical accumulation, the next place you have to look is comx because that's where the paper market pretends everything is fine. On the surface, inventories are reported, numbers are updated, and the system looks orderly. But when you dig into what's actually happening to the metal, the picture becomes uncomfortable very quickly. This isn't normal draw down. This is stress. Comx doesn't just hold silver in one big pile. It's divided into categories and the most important one is registered inventory because that's the metal actually available to meet delivery obligations. That's the silver backing the contracts. Eligible metal might exist in a vault, but it's not for sale. Registered is what matters when someone stands for delivery. And lately, registered silver has been bleeding ounces at a pace that defies every historical norm. Tens of millions of ounces have vanished in days, not months, not years. Metal is being reclassified, pulled out, or shipped away faster than it can be replaced. This isn't retail investors buying coins. This is large, informed players removing silver directly from the exchange mechanism itself. When registered inventory collapses, the exchange loses its buffer. It loses its margin of safety. Suddenly, every delivery request becomes a test instead of a formality. What makes this even more revealing is how quietly it's happening. There's no panic headline, no emergency announcement, just a steady drain that tells you those closest to the system don't trust it to function smoothly under pressure. If comx silver were plentiful, there would be no reason to rush metal out or reclassify it away from deliverable status. The fact that it's happening now suggests that availability is becoming a concern behind closed doors. And this is where the paper illusion starts to crack. Comx pricing is built on the assumption that contracts vastly outnumber deliveries because most people won't ask for the metal. But that assumption only works when inventories are deep enough to absorb surprise demand. When registered stock shrink to uncomfortable levels, the leverage embedded in the system becomes dangerous. Too many claims, not enough ounces. Every ounce that leaves registered inventory tightens the system further. It increases the odds that future delivery requests collide with scarcity. It forces exchanges to rely more heavily on cash settlement delays or incentives not to take metal. Those tools work until they don't. And history shows that once confidence in physical availability is questioned, it doesn't come back easily. This is why the inventory drain matters more than price moves. Price can be managed. Narratives can be spun. Inventory is binary. Either the metal is there or it isn't. And right now, the direction of travel is unmistakable. Silver isn't flowing into comics to calm the market. It's flowing out as if the smartest players want distance between themselves and the paper system before the next wave hits. Because when inventories fall far enough, the market stops asking what silver should be worth and starts asking whether it can even be delivered at all. And that's the point where everything changes >> between the industrials and the um the investors. Um, so when you see that kind of metal actually move and leave the marketplace, um, it's it's something to to watch and and be very cognizant of. They also talked about the fact that they moved somewhere in the neighborhood of like 166 million ounces of of silver. They moved it uh 169 million ounces of silver and they moved it into what's called a non-deliverable vault. Now, this was something that was new to me. I I dig in a little bit because I thought either it is or it isn't in the ComX ecosystem. And it technically these 169 million ounces technically they still exist on paper and and could be moved into COMX but it's legally removed from the delivery system and it cannot be used for COMX settlement unless it is re registered. So, you know, not only have they accumulated 750 million ounces of silver, and they have forever always been the biggest short, um, but they've flipped from short to long, they they um added 21 million ounces while closing a 200 million ounce paper short according to this article. And then at the same time, 16.6 million ounces left the registered category, left the building. Goodbye, silver. and 169 got moved into vaults outside the ComX deliverable status. Um, this is not defensive posturing at all. This is intentional removal of metal from the delivery pool. And if it is true, it marks a huge shift from suppressing silver with paper to accumulating physical metal. And you want to talk about bullish at the same time. And you can stop me any time here. You know, COMX deliveries have been unusually large all year, Kaiser. In November, which is typically not a delivery month, we had almost 17 million ounces of silver and about a million and a half ounces of gold that were delivered. Uh, in both cases, gold and silver, it's not a delivery month. By just the 12th of December, deliveries have already reached 58 million ounces of silver and almost 3 million ounces of gold with contracts still being added daily. Now, ask yourself this question. And this is what I've been trying to scream to people. I don't care what the price is doing. It doesn't mean anything. What does mean something is that the people who in just a handful of days deliver um you know 58 million ounces of silver and almost 3 million ounces of gold. Who's got the money to do this? You're talking billions and billions and billions and billions every single month. Right? Since November. 13 months we've seen this. since last November. Um the people at this level who throw around that kind of bread, they don't do it just for the hell of it. They know what's coming. Um they do and they position ahead of the crowd. Now, one way that they're trying to stop the run on all of these deliveries because there are some banks that are off sides to slow things down when registered silver. As comics inventories are being drained, something else even more revealing is happening at the same time. And this is where the story stops being theoretical and starts becoming impossible to ignore. We're seeing delivery numbers that simply don't belong in a paper dominated market. Month after month, contracts that are supposed to be traded and closed are instead being turned into demands for real metal. This isn't casual behavior. This is what conviction looks like. In a typical silver market, deliveries are modest, predictable, almost boring. Most participants never intend to take metal. They're trading price, not ounces. But now that pattern has broken. Delivery volumes have surged, even in months where deliveries are usually quiet. Tens of millions of ounces are being claimed, not deferred, not rolled forward, but physically removed. That tells you the buyers on the other side aren't leveraged speculators. They're strong hands with no interest in paper promises. And notice how price has responded. In the past, exchanges could cool things down with margin hikes, sharp sell-offs, or sudden volatility designed to shake out weak longs. This time, those tools are barely working. Price dips are being bought. Volatility resolves higher. That only happens when the buyers don't care about short-term price swings because they're not trading, they're acquiring. When someone stands for delivery, margin doesn't scare them. They already have the capital. What they want is the metal. This is a subtle but critical shift. It means the dominant force in the market is no longer leverage. It's possession. And possession changes everything. When enough participants insist on physical settlement, the exchange stops being a price discovery mechanism and starts becoming a bottleneck. Each delivery draws down inventory. Each draw down increases stress and each increase in stress raises the risk for anyone still relying on paper exposure. What's especially telling is who isn't being shaken out. These delivery surges are happening despite higher prices, despite volatility, despite every reason a speculative buyer would back away. Instead, demand is intensifying. That's a hallmark of informed positioning. It suggests these buyers believe silver availability is more important than silver price because price can be renegotiated later. Availability cannot. This is how a market transitions from complacency to confrontation. At first, deliveries rise quietly. Then inventories tighten. Then confidence erodess. Eventually, someone asks for metal and discovers it's harder to get than expected. That's when premiums appear, spreads widen, and the official price starts losing credibility. You don't see that in charts at first. You see it in vault reports and delivery notices. And this is why the delivery data matters more than any headline. It's the physical heartbeat of the market. Right now, that heartbeat is accelerating, not slowing down. The metal is leaving faster than it's coming in, and the buyers taking it don't look like they're giving it back anytime soon. When a paper market starts behaving like this, it's usually because the people closest to the truth no longer trust paper to protect them. They want certainty. They want ounces. And once that mindset spreads, the market doesn't unwind gradually. It reaches a tipping point because a system built on the assumption that most people won't ask for delivery only works until enough people do. And it looks like that line is getting closer every single day >> through November and December. where US banks appear largely if not entirely out of the silver shorts leaving the foreign banks and other commercials with most of the remaining exposure. Um and so if this all blows up, the US banks have gone long. The European banks are the ones that are exposed to all this. So thinking about what Tom Luango says, all of these things negatively impact the Bank of England, the LBMA, and all of the European aristocrat or or old money banks. So just something to think of. Almost done. Um starting January 1st, 2026, silver exports will require state trading licenses from the um authorities in in Beijing. Um this matters because China roughly refineses about 70% of all the world's silver not just from its own mines but from Dora imported globally refined in in China and then historically reexported to western markets. that pipeline shuts down in less than two weeks. And um if you look at everything happening at once, this is way bigger than monetary policy or investment demand guys are what we are seeing as a strategic resource competition between great powers with industrial demand that is slamming into a constrained physical supply. You got supply shocks from export restrictions like we're seeing stress inside of the major exchanges like we're seeing. and at the same time the largest player in the market flipping from short to long. Um and and that makes this very different. This isn't financial. This is geopolitical. And this is about who controls the materials needed to build the the modern infrastructure. So, I know on one hand I'm saying JP Morgan just got all this silver as a US bank, but on the other hand, is JP Morgan more US or are its roots more in the European side of things? All I can say to you is this that that the US banks appear to be long. The European banks appear to be the ones left holding the bag. JP Morgan appears to have gone wickedly long. Over 750 million ounces, closed out its short position. Um, things are happening at a level we've never seen. And to see millions upon millions upon millions upon millions of ounces coming into ComX every single month tells me that the people pulling those strings, they are the most wellunded, yes, but more importantly, the most well-informed traders on the globe. People should pay very, very close attention to that as far as I'm concerned. >> Just before we get going, we just launched the official Silver News Daily Telegram. To kick things off, we're running a 10oz silver giveaway. Yes, real physical silver, not a voucher, not digital credits, actual bullion. This Telegram will be our new home for real-time silver discussions, market insights, collection picks, and everything precious metals. It's where the community truly comes alive. Here's how to enter the 10oz silver giveaway. Be subscribed to Silver News Daily on YouTube. Turn on the notification bell. Comment 10 giveaway on three separate videos. Be an active member of the Telegram group and say hi. Once we hit 500 active Telegram members, we'll pick one lucky winner to receive 10 ounces of silver shipped directly to you. So, get in early, stay active. >> Yeah, you know, the bricks are expanding. Um I think they right now have uh 50 countries have expressed interest in joining the bricks. 23 have formally submitted uh membership applications and 28 have expressed informal interest. Uh we are seeing right now an expansion of the Shanghai Metals Exchange um network. The first one was built in Hong Kong. The reason that that is important is because when gold leaves China, it has to leave via Hong Kong. And what they are doing is internationalizing their yuan. That's what they're telling us they're doing. Um, but it's in essence they are building the rails of of the unit, the bricks uh settlement currency, which was just in essence activated a week or two ago. We saw the first trade on the unit over the Embridge network um between United Arab Emirates and um China where it is a crossber settlement system that is the Mbridge where it trades in 7 seconds outside swift interference at a 98% reduction in fees. Swift is not compatible with it. In other words, no sanctioned risk. Um, and it will trade this thing called the unit. Now, the unit is 40% gold back deliverable to central banks on demand, 60% basket of bricks plus currencies. What's interesting about it is that the the currencies will be measured in gold ounces, not gold measured in currencies. It's it's it's a new way of looking at things. In other words, gold is the benchmark in this new system. But anyways, they're calling it the internationalization of the yuan. The bricks will slide right onto this the their unit currency. But what the Chinese are trying to do is build all these vaults, the first one in Hong Kong. So if China were to buy oil from Saudi Arabia and pay for it in digital yuan, trade over the Mbridge platform, settles just like that, they can Saudi Arabia can take that digital yuan and send it back to Shanghai and request delivery out of Hong Kong, take metal right out. And China has made the yuan immediately convertible into gold without converting back into dollars. They have in effectively said it our currency is as good as gold. Not backed by gold, but they're allowing instant conversion without switching to dollars. First, the second vault is is now underway or in in construction in Saudi Arabia. Now, that's a big deal. Saudi Arabia was also the fifth participant in the Mbridge technology which is the crossber payment system that sidestepped swift and they plan on internationalizing these vaults all around the belt road initiative um and expansion all around you know the southern hemisphere so countries will trade in local currencies settle any trade or currency imbalances and gold in all of these multi-jurisdictional vaults and take possession if they want the unit currency will slide on top of that which will be used for settlement currency for central banks and very large institutions. Bricks. >> At this point, the silver story stops being about traders and starts being about necessity because industrial demand doesn't behave like investment demand. Investors can wait. Factories can't. And that difference is what turns a tight market into a crisis. Silver isn't just another raw material anymore. It's a critical input embedded deep inside the modern economy. And the demand for it has become stubbornly inelastic. When prices rise in most commodities, demand falls. Consumers substitute, delay, or walk away. Silver doesn't get that luxury. If you're building solar panels, electric vehicles, medical equipment, military hardware, or advanced electronics, you don't get to say, "We'll wait for cheaper silver." The amount of silver used in each unit is small in dollar terms, but essential in function. That's why higher prices don't destroy demand, they confirm it. Silver has become what economists call a gift and a good, something that remains desirable even as it becomes more expensive. Look at the green energy transition alone. Solar installations continue to hit records and every single panel requires silver. Not a lot per panel, but multiplied across millions of units. The numbers explode. Electric vehicles are the same story. Each one uses silver across batteries, wiring, and control systems. and production targets keep rising regardless of metal prices. These industries are locked in. They've already committed capital, infrastructure, and policy support. Silver shortages don't slow them down. They force them to compete harder for supply. And here's the part most people miss. Industrial buyers don't hedge years into the future the way banks do. They secure supply when they need it. And when availability becomes uncertain, they change behavior fast. They bypass exchanges. They go directly to refiners. They pay premiums. They lock in long-term contracts. That metal disappears from the spot market and never comes back. This isn't speculative hoarding. It's survival buying. This is why rising prices are actually a warning sign, not a relief valve. They tell you demand is price insensitive. They tell you shortages won't self-correct easily. And when industrial demand collides with investment demand in a market with declining inventories, something has to give. The price can rise, but if supply isn't elastic, rising prices don't fix the problem. They expose it. What makes this moment especially dangerous for the paper system is timing. Industrial demand is hitting records at the exact same moment inventories are being drained and major players are hoarding physical metal. That means there is no buffer. There's no excess supply waiting to come online. Mine production can't ramp fast enough. Recycling can't fill the gap. and substitution isn't viable at scale. So while traders argue about charts and targets, the real fight is happening behind the scenes. Where buyers who must have silver are quietly securing it at any cost. And once that mindset takes hold, price becomes secondary. Availability becomes everything. This is how markets break. Not when demand spikes suddenly, but when demand becomes non-negotiable. When buyers refuse to step aside. When higher prices fail to bring relief. And silver is rapidly entering that territory where the question is no longer how much it costs but whether you can get it at all. And when a market reaches that point, every remaining ounce becomes exponentially more valuable. >> Pay is the B2B side, the retail side, where if you live in Brazil and travel to China, you can immediately use this credit card or this app and bang, it just allows seamless purchases. That it too is being expanded to the belt road initiative. This is not just a brrics endeavor. They're opening all of this stuff up ultimately to the rest of the world with the exception of the um United States, uh, Great Britain, and the European Union. So, it is, you know, one of the blind spots that the naysayers have is, yeah, it's not big enough. Yeah, it is big enough. You're opening it up to 90% of human population and the belt road alone is 75%. where the bricks bridge which is central bank to central bank will operate through this whole ecosystem settle in balances in gold through all these multi-jurisdictional vaults same thing with the bricks pay where it will start with the uh belt road initiative where they are now opening up an infrastructure that's 75% of human population as is anyways that's growing but then something popped up so I want to lay that foundation there was a report a unpublished draft of US national security strate strategy that is circulating out through Russia or excuse me through Washington and it's it's uh and according to Politico this is where I read it in the political um website that the idea is something called the core five and although officials have kind of denied that there's a formal plan the fact that the idea surfaced at all is very revealing to me it's very revealing and the proposed Those core five this is coming from the white house would include the United States, China, Russia, India and Japan. And the idea is not about shared values. It's about scale related to population and economic weight, military power, energy demand and geopolitical stuff. So, you know, uh even if it never becomes official, to me the message is clear that the US no longer sees the G7 as a place where maybe real power is managed. Um and for the rest of the G7 in particular, Europe and Canada, this is a full-scale demotion. Um it's also an admission in my mind that the bricks have already won the argument about you know multi- plurality instead of uno unipurality where or uni where everyone is in essence using the United States currency and um uh unipolar uh where they're using the US currency and the treasuries. This is about everyone using their own currency, settling over a system that is not swift imposed or or or swift compliant and trading imbalances in gold and and saving in gold instead of in treasuries. So the debate now in my mind is you know whether the world um in terms of whether the world has changed to me that's already happened and and this says it. To me, it's more along the lines of who writes the rules. Um, and I think when you see gold in all of this, it is the neutral asset of choice. Just whether it be by the massive amount of gold coming into the US, every single month we're net importers. Billions every month and billions. And you can see it as underpinning what's happening in the global south. Um, it won't be because of a dollar outright collapsing, but because the world no longer wants to rely just on on one single issuer and that issuer has the ability to sanction you and freeze you out of the system if they don't agree with you. Um, and so this is happening and all of these things point to why if you save in dollars, Kaiser, you're destined to go broke. Um, and and I think gold and silver, you don't buy them to get wealthy, you buy them because >> just as industrial demand is becoming non-negotiable, the global supply chain is being hit from the other side. And this is where the situation turns from tight to dangerous. Because while the West is arguing about prices, China is quietly tightening control over the flow of silver itself. And when the world's largest refiner starts closing doors, the ripple effects are unavoidable. China doesn't just mine silver, it refineses it. A massive portion of the world's raw silver passes through Chinese refineries before it ever reaches the global market. That gives China leverage most people don't fully appreciate. When new export controls and licensing requirements are introduced, it doesn't look dramatic on the surface. There's no outright ban, no headline screaming shortage, but functionally it slows everything down. It adds friction. It prioritizes domestic needs over global ones. And in a market already running lean, friction is enough to tip the balance. From China's perspective, this makes perfect sense. Silver is essential to their manufacturing base, their solar dominance, their electronic sector, and their strategic industries. Why export refined silver cheaply when you know global shortages are forming and domestic demand is only going to rise? By restricting exports, even indirectly, China ensures its own industries are insulated while the rest of the world scrambles to compete for what's left. This is where Western markets start to feel real pressure. If refiners slow exports, buyers elsewhere have fewer options. They can't just flip a switch and refine at scale overnight. Supply chains don't reconfigure instantly. And when you combine export restrictions with rising industrial demand and falling exchange inventories, the system starts to choke. Silver doesn't disappear. all at once, it just becomes harder to source, slower to deliver, and more expensive to secure. What's especially important here is timing. These restrictions aren't coming during a glut. They're coming during a multi-year deficit when inventories are already depleted and delivery demand is accelerating. That means every ounce withheld has outsized impact. The global market is forced to rebalance around a smaller pool of available metal and that rebalancing doesn't happen politely. This also changes behavior. Buyers stop relying on spot markets. They start stockpiling. They sign longer contracts. They pay premiums to guarantee delivery. That removes even more metal from circulation, reinforcing the shortage. It's a feedback loop. And once it starts, it's very hard to stop. So, while most people are focused on what silver did yesterday or last week, the real story is that one of the most important supply valves in the world is being tightened at the exact moment demand is exploding. That's not coincidence. That's strategy. And it puts enormous strain on a paper market that assumes silver will always be there when needed. Because when supply chains are weaponized, even subtly, price stops being the main control mechanism. Access becomes the real currency. And the countries and institutions that understand that are already positioning themselves accordingly. This is why the pressure on the silver market keeps building even when price pauses. The forces underneath it are structural, geopolitical, and slowm moving, which makes them far more dangerous than a speculative spike. And once those forces fully express themselves, the market won't have the luxury of adjusting gradually. >> Look, Saudi Arabia bought a huge chunk of silver, and ironically, they bought it through SLV, but the amount that they bought allows them delivery um ability. Um India has been the largest importer of silver in the world for the last several years. Um, rumors are they have as much as 800 million ounces. Uh, China, as we know, is the second largest producer in the world. David Morgan went on a a mine tour there and the authorities said, "Yeah, we're number one." But let's just say they're number two. Mexico's number one. It's interesting that supposedly um Samsung was in Mexico now. They came out with that solid state battery um technology over a year ago. We we're talking about that. So the fact that they're now saying this, it's it I wonder if it's true and he his sources were in the logistic industry who have never been wrong. I I you know I don't know if I believe that or not but I do believe that there will be disintermediation and how can I say that? Well, China as an example and this isn't rumor. I've spoken to mining executives Sean Kungun from Dolly Varden. Yeah, Andy. The Chinese have been flying into Peru and into Mexico and taking metal be in the pre-production stage before it's even called silver. They're buying Doré and concentrate. So, China, the number two largest producer in the world, flies all the way to Peru and Mexico. The number one and three largest issue producers of silver in the world in the world. Mexico, China, Peru are one, two, and three. and they're buying doray, which are bars that are crudely refined by the producer or the miner and then sent in for full refining to a refinery. Uh, and and and the concentrate is a sludge byproduct of the mining process. They're buying this stuff paying twice what the West will, shipping it back to China to refine it themselves. If the second largest producer in the world does this, then there is no reason to believe that maybe or to not believe that maybe Samsung is doing this too. The the metal that left the Comx ecosystem um the 16 million ounces that just left, who who bought that and why did it leave? Could it be Tesla? Could it be Sony? Could it be Samsung? Hell yes, it could. And this is the concept of give and good. As the price goes higher, they're like, "Dude, we if we don't get this stuff, we we're not making cars. We're not making phones. we're not making computers. Go get it. And so, yes, this will happen. And I remember talking to Keith Newmier not too long ago, uh the CEO of um First Majestic. This might have been a year or so ago where he said to me it was the first time he had seen industrial users like these companies and automakers go to the mining conferences that you and I have been to before speaking at and disintermediating the marketplace. go right to the source. And so, yeah, I think it it is highly probable, but um I wouldn't I wouldn't. So, anyways, the bottom line is China, uh Saudi Arabia, uh India, Russia publicly said they're adding it to their strategic stockpile. And when they said that, there hadn't been a government to ever say that. The European Union, by the way, made silver critical in 2023. We just did it. And now China is in essence doing the same thing and and limiting exports. So I think while they haven't made it um gold will be the backbone of the monetary system, silver is critical to build a digital um ecosystem. One that also is needed in military componentry and in and in solar panels and in of course electric vehicles. So the realization I think quietly is and they've been using the suppression of the western price forever to to be >> once you zoom out beyond exchanges and supply chains an even bigger shift comes into focus because silver is no longer being treated purely as a commodity. It's being reclassified quietly by nations themselves. Sovereigns are starting to behave the way institutions do right before a structural break accumulating metal not for profit but for security. And when countries start thinking that way, supply disappears for good. Across the BRICS nations and aligned states, silver is increasingly viewed alongside gold as a strategic resource. Not something to trade, but something to hold. These economies are building industrial capacity, digital infrastructure, military technology, and energy systems that all rely on silver. At the same time, they're actively reducing dependence on Western financial systems. That combination naturally leads to one conclusion. Secure the inputs. Don't rely on the market to provide them later. India is a perfect example. Demand has surged. Imports have exploded. And the metal isn't being flipped for quick gains. It's being absorbed into industry reserves and long-term holdings. Russia, facing sanctions and financial isolation, understands better than most that paper claims can be frozen overnight. Physical assets can't. China, already tightening exports, continues to build stockpiles quietly while dominating downstream manufacturing. This isn't speculative behavior. It's defensive positioning. What makes sovereign accumulation so powerful is that it's price agnostic. Governments don't care if silver is $50 or $100 an ounce if the alternative is strategic vulnerability. They're not chasing charts. They're securing supply. And once metal enters sovereign hands, it rarely re-enters the market. It's not leased. It's not rehypothecated. It's effectively removed from global circulation. This creates a structural asymmetry. Western markets still treat silver as something that will always be available at the right price. Bricks nations are treating it as something that might not be available at any price later. Those two mindsets can't coexist indefinitely. One side is relying on liquidity. The other is draining it. And here's where this feeds back into the broader market stress. Every ounce accumulated by a sovereign is an ounce that industrial users, investors, and exchanges can no longer access. It tightens supply invisibly, steadily, without triggering panic headlines. The market doesn't feel it all at once. It feels it later when availability suddenly becomes an issue and no one can quite explain where the metal went. This is also part of a larger geopolitical shift. As settlement systems fragment and trust in financial intermediaries erodess, physical assets regain importance. Gold gets the attention, but silver is the workhorse. It's essential, versatile, and increasingly scarce. That makes it strategically valuable in ways the price alone doesn't capture. So, while commentators debate targets and timelines, sovereigns are playing a different game entirely. They're preparing for a world where access matters more than quotes, where supply chains are politicized and where physical control equals leverage. And that behavior accelerates everything else we've been talking about. It amplifies deficits. It worsens exchange stress. It makes shortages harder to resolve. Because when nations start competing with industries and investors for the same limited pool of metal, the market stops functioning like a market. It becomes a battleground. and silver is being pulled into the center of it ounce by ounce long before most people realize what's happening. >> I mean that that becomes this is a race to secure it all. That same AI character made a very interesting point about what's happening with the refiners. Now I I do believe this to be true what he said and that's why some of what he says is interesting. In that video he said a lot of the dealers are out of product. I don't believe that. But what he did say was that one of the reasons that you're seeing the prices or the availability will ultimately become tough to get is that the refiners who take in all of this metal, let's say a refiner has $50 million of silver, they have to hedge that silver the way we do, right? So they take the opposite side and sell short in order to offset what they have long in their manufacturing process. And I don't know how long it takes to go from door to to full refined in a in a deliverable form, but if you have $50 million of silver in in production and you have shorted the other side to offset your risk, so you're market neutral, if silver moves up very quickly, as it has been, two bucks, three bucks, four bucks, five bucks, you're going to get a margin call like that and they're going to say, "You owe us millions of dollars. We need it right now." if if if not um we have to close out your position. Well, they don't have the money yet because the silver's in production, so they can't take new business. Um but but I do think that um the this is what will happen. It it this is the concept of given good as well where higher the price goes, the more demand because people start to freak out. They took for granted that it was always there and always available and because the west suppressed it was always cheap. Now it's disappearing and it's getting expensive and that is going to have a be a problem if we don't have the silver to make our solar panels, our Teslas, our iPhones, our you know whatever. Yeah, I think that will become an issue Kaiser and it starts out slowly and then gradually you know really starts to become an issue and I think the entire supply chain is fragmented from um the refiner all the way up to the the mints. unlock the equity within the metal itself. And you know, if that's something you want to do, you'll find most people who own gold and silver would rather bite off the tip of their pinky than sell it if they didn't have to. And this is a way to do it. Um, and look, I trust Rick with my life. Um, there have been very few people that I've ever met in my career that have been as instrumental to my learning and my success. and he's been a mentor, a friend, and I trust him implicitly. Um, I think there isn't a better a better guy to do a program like this. But yeah, that's exactly right. I mean, look, counterparty risk is a big deal. Metal is in your own possession is has no counterparty risk. Um, it's an asset that, you know, is simultaneously no one else's liability as Doug Casey likes to say, and that's true. Um, but you know, if you want to unlock the equity in it, then it has to be held and at a place and that's why I partnered with Brinks because they're the premier name in the industry and and I've had 16 years worth of great relationship with Brinks and and never getting angry or raising my voice. They're above board and very regimented in their rules and and that's what I want. I don't want any gray area. And um so yeah, this this is a very cool program. And um but it look you don't need to hold all your metal in in a facility. You hold as much as you can at home and hide it, bury it in your backyard or, you know, become a midnight gardener wherever you put it. But if if that doesn't work, then I think our storage program is as good as any in North America. In fact, maybe better than them all because of the exclusives that we have been awarded through Brinks. So yes on Battlebank I like Brinks that would be secondary to holding it yourself however if you have the luxury of doing so. >> We had you then further questions on um about the US moving to digital currency and uh how that would work. >> So that happens I wrote down the date actually what you're talking about is the Genius Act. The law go went into law on July 18th 2025. its rules kick in on the earlier of the two dates, 18 months after in enactment, which would be January 18th, 2027, or 120 days after federal regulators issue final implementing regulations. In other words, the law could begin applying as soon as early 26 if regulators move quickly or by January 27th at the latest under the standard timeline. And really what it is is an ability to create synthetic demand for the US Treasury. Uh because they will all be >> when you stack everything together, the short exits, the physical hoarding, the delivery surge, the export controls, the sovereign buying, a single theme starts to dominate the silver market. And . that's deficit. Not a paper deficit that can be massaged away with accounting tricks, but a real physical shortfall that has been compounding year after year. This isn't a one-off imbalance. It's a structural problem that's been building quietly in the background, and now it's too large to ignore. Global mine supply simply isn't keeping up. New discoveries are rare. Development timelines stretch over decades, and capital investment has lagged badly because silver spent so many years being undervalued. Most silver isn't even mined on its own. It's a byproduct of copper, lead, and zinc mining, which means higher silver prices don't magically translate into higher silver output. Miners can't just turn the tap on. Supply is rigid, slow, and unresponsive. Exactly the wrong characteristics for a market facing rising demand. At the same time, consumption keeps setting records. Industrial use alone now absorbs the majority of annual production. And that demand isn't cyclical anymore. It's structural. Green energy, electrification, digital infrastructure, defense, medical technology, none of these trends are reversing. Layer investment demand on top of that. Then add sovereign accumulation and the math stops working. Every year more silver is being consumed than produced and the gap is being filled by inventories that are no longer there. That's the part that changes everything. Deficits are survivable when stockpiles are deep. But after multiple consecutive years of shortfall, the cupboards are bare. The easy ounces are gone. What's left is either locked away in strong hands or already committed to industrial pipelines. And when deficits persist under those conditions, price doesn't just rise gradually. It has to rise enough to ration demand to force someone out of the market. But when demand is inelastic, rationing becomes brutally expensive. This is why the current price still doesn't reflect the true tension in the system. The official quote assumes silver will keep flowing, that above ground stocks will somehow reappear, that supply will respond eventually. But reality is moving in the opposite direction. Each year of deficit tightens the system further, reduces flexibility, and raises the risk of sudden dislocation. And here's the most dangerous part for anyone still short silver. Deficits don't announce themselves with a single dramatic moment. They creep. They lull markets into complacency. Then one day, a delivery fails, a premium spikes, or a buyer can't source metal at any price they consider reasonable. That's when confidence breaks. And confidence is everything in a leveraged paper market. So while the price action grabs headlines, the real story is that the foundation beneath the silver market has been hollowed out. Supply can't respond. Demand won't retreat. Inventories are gone. And once those conditions are in place, the only variable left that can adjust fast enough is price. The market can ignore that reality for a while. It can argue, delay, and deny. But deficits have a way of asserting themselves eventually. And when they do, they don't negotiate. >> Backed by all the movement of dollars will be backed by stable coins that will be backed by treasuries short-term, which will push interest rates on the front end of the curve low, make it easier to borrow money, provide synthetic um funding for the US government. Anytime money moves anywhere, whether you buy a pack of gum or a new car or whatever, each time you do so, stablecoin is created. when you pay and it gets to the end recipient, said stable coin is burned. The interest on the treasury, however, is not transferable. It's kept by the issuer. Uh like USA Tether will be the primary beneficiary, and they've been buying gold at a level no one's ever seen before with all of their excess reserves. They have more gold than just about anyone but a central bank, almost 14 billion worth. And that fits into the theory that I've talked bet on your dad show over and over and over again of of devaluing the dollar, debasing it. Uh, and there are reasons behind it from paying down the debt and maybe bringing back manufacturing. And and you have to hear the whole thesis before you poo poo the bringing back manufacturing. But in essence, that is what they are doing. And it's funny because Bo Hines, who is the CEO of USA Tether, was Trump's cryptosar until August. and now he's the CEO of this new Genius Act compliant stable coin that will back the movement of money. But you'll see all sorts of stable coin issuance and and you won't notice any difference when you look at your Bank of America or Morgan Stanley or whatever account. You'll see money when it moves. It'll be like moving money through Zel or Venmo just like that. You go buy a new car, you don't have to leave and go and send money by wire, go into the bank and do it. You'll just transfer the money instantly. The way people will notice it, it will get rid of checks and wires right away and will just be instant movement of money. But you're not going to see stable coins because as the holder of the stable coin the interest that is backing it synthetically to drive down rates and to fund the government and to devalue the dollar through, I believe buying more gold with with with that with the proceeds of those interest rates because they're not transferable to the holder of the stable coin. So, um, anyways, yes, it's coming and it will happen no later than January 2027 at the latest. >> By the time you reach this stage of the story, the spotlight inevitably turns to who is still trapped on the wrong side of the trade because someone always is. And right now, the most vulnerable players in the silver market aren't the retail shorts or the speculators. It's the European banks and legacy institutions that never adjusted, never exited, and never believed the physical market would actually matter. For years, these banks treated silver shorts as routine balance sheet tools. Low volatility, predictable behavior, easy carry. Silver was the afterthought metal, something you could lean on without consequence because the market always seemed liquid, always seemed controlled. But that confidence was built in a very different environment. One where physical inventories were deeper, global supply chains were open, and dominant players were willing to suppress price through paper. That world no longer exists. As JP Morgan exited its shorts and shifted into physical accumulation, it didn't just remove selling pressure. It removed a backs stop. The bank that had the size and influence to manage stress is no longer playing that role. And that leaves other shorts exposed in a market where delivery demand is rising and inventories are shrinking. European banks, many of which still hold legacy short exposure, are now facing a nightmare scenario. Rising prices, tightening supply, and increasing risk that paper obligations collide with physical scarcity. This is where short squeezes stop being theoretical. A short squeeze isn't just about price going up. It's about optionality disappearing. It's about finding out that rolling positions is no longer easy, that liquidity dries up when everyone needs the same exit, and that counterparties start asking uncomfortable questions about delivery. When that happens, shorts don't get to negotiate. They get forced to react. And unlike equity markets, where shares can be issued or borrowed relatively easily, silver has hard limits. You can't print it. You can't rehypothecate it endlessly once the physical pool dries up. If a bank is short silver and needs to cover in a market where metal is being hoarded, exported less, and demanded more, the only lever left is price. Higher prices force sellers out. Higher prices entice metal back into the market. But that process is violent, because it happens under stress, not calm. This is why European banks are often mentioned in the context of being left holding the bag. Not because they're reckless, but because they were slow. They trusted a system that had always worked before. They assumed silver would behave the way it always had. And now they're discovering that the rules have changed midame. As prices rise, their risk doesn't increase linearly. It accelerates. Margin requirements rise. Marktomarket losses compound. And if physical delivery becomes part of the equation, the danger multiplies. At that point, the short position stops being a hedge and starts becoming an existential threat. This is how squeezes cascade. One institution covers, pushing price higher. That stresses the next one. Liquidity evaporates, spreads widen, and suddenly the move feeds on itself. And in a market as small and thin as silver, it doesn't take many forced buyers to create outsized price moves. So, while the narrative often focuses on upside targets and price forecasts, the real engine of the next phase may be fear. Fear of being the last short standing. Fear of not being able to source metal. Fear of discovering that the exit everyone assumed would always be there has quietly disappeared. And when fear takes over in a leveraged market with physical constraints, price doesn't creep higher. It jumps. >> Digital. I mean, it is, but it isn't. You won't notice it. It's the background that is digital. It's just how fast it moves on a blockchain network. And and um it does. It's like a central bank digital currency in a stable coin clothing issued by private uh enterprise that is being monitored on the on-ramp and the off-ramp by the feds and using the the interest to you know that is generated or the sales of treasuries on the front end generated to run the government synthetically. It's it's a scam if you ask me more than anything but you won't notice it. Uh but what will happen is is that when you hold down interest rates but create all of this inflation, there is no pressure valve. Uh and that pressure doesn't vanish. It just shows up somewhere else and it'll be not in higher yields as they're held down synthetically, but in higher prices, inflation will become the release valve. and you know with spending still out of control and now the Fed is drifting back towards liquidity injections and getting rid of uh QT um at at 150% above their inflation target. It's no surprise that we're seeing confidence in US debt starting to crack. But I I digress. Uh bottom line is is that it's not moving to a full cashless society even though we're moving slowly in that direction. It's just about how fast money will move. that will be the convenience of it at the same time providing synthetic demand for US debt uh short term. Um so you know as far as the states are concerned these states are um like I think Texas is leaning the way with what it will look like. Texas, you'll deposit American gold eagles or silver eagles or whatnot into your account at at like the Texas Bullion Depository and they will issue an app that will allow you to buy stuff using your app or like the Glint app, which is a a Mastercard. They'll give you something like that. Uh there will be no capital gains tax in the state of Texas when you use it for commerce um if there were any or any of the states, but federal still has to get on board with this. So that's the one drawback is that they don't care. They'll still want their tax unless we get to a point where they remove capital gains on purchases of legal tender in this respect. So um in essence, you're not going to go doortodoor with gold eagles, I don't think. In essence, you'll put them into a vault state sponsored and be given some form of a digital app to transact on. But you know when you have gold and silver outpacing the dollar's down 9% against the dollar index bad measuring stick because of Triffin's dilemma all those currencies deflate or they devalue their currency against ours. Um we use gold and silver as a measuring stick. The dollar's down 60% against gold and 100% against silver. That's a better measurement. So, as you're, you know, yeah, you're you might be paying tax to sell this stuff, but you're appreciating so much that you're coming out ahead holding your money in gold and silver. >> Well, Andy, uh, we've got a ton more questions, but I know, uh, you've got other, uh, appointments to get to you giving us. >> Yeah, I would love to stay and do this, but I'm on with Sarah West all four minutes ago, so we got to let you go, but I need to run. Yeah, but I I like the Q&As's. I love the questions, and it's nice to see you, too, Kaiser. been too long, but uh uh say hi to the family for me and uh thanks for having me on. Happy holidays to you and everybody out there and uh it's coming close here to Christmas and the New Year's and whatnot, but uh um happy Hanukkah. I think it started yesterday. So, look forward to doing it again with you, my man. And all the best. Thanks for having me. And stay >> when you pull all of this together, the picture becomes impossible to ignore. JP Morgan didn't just make a trade. They made a statement by abandoning massive paper shorts and locking away physical silver. They signaled that the era of easy suppression is over. At the same time, comx inventories are draining, deliveries are accelerating, industrial demand is becoming non-negotiable. China is tightening supply. Sovereigns are hoarding metal. And legacy shorts are being cornered in a market that no longer forgives complacency. These aren't isolated events. They're pieces of the same puzzle snapping into place. This is what a structural repricing looks like before it shows up in the headline price. It's not driven by hype or retail frenzy. It's driven by necessity, scarcity, and fear. Fear of not being able to source metal. Fear of being caught short when delivery matters. Fear of discovering that paper promises don't function in a world where physical silver is treated as strategic, not speculative. And when fear replaces confidence in a leveraged system, moves don't come in neat increments. They come in violent gaps. That's why numbers like 100, 200, or even $500 an ounce no longer sound outrageous in this context. They aren't predictions pulled from thin air. They're the kind of prices required to force metal back into a market that's been drained, hoarded, and locked away. Price has one job in the end, and that's to ration demand and expose who really controls supply. The longer that adjustment is delayed, the more extreme it becomes when it finally happens. Most people will only notice silver when it's already repriced, when headlines are screaming and access is gone. By then, the quiet accumulation phase will be over, and the opportunity will have shifted into survival mode for institutions and industries that waited too long. This is why understanding the flow of physical metal matters more than watching daily price swings. The smart money isn't guessing, it's preparing. If you want to stay ahead of what's happening in the silver market and understand these shifts before they hit the mainstream, make sure you subscribe so you don't miss what comes next. And remember, this is not financial advice and you should always speak to a qualified professional before making any financial decisions.