I think the market is getting the sense of this. And certainly for private investors who feel that they've missed, they might have missed the gold boat, you know, having maybe taken profits at $2,000 or $2,70 when you remember that was a top trading range for some time, regretting it and thinking we got to get back in. But how do you buy how do you buy gold at $4,130 when you've sold it $100 or two sorry $1,000 or $2,000 below the current level? You know, this is um a psychological nightmare for investors.


So what do they do? Buy silver. It's far cheaper. [laughter] That way you get back in the ride, you know, with a little bit of self-respect. Financial analyst Alistister Mloud notes that the gold and silver markets have entered a critical turning point with mounting signs that the paperbased trading system supporting them is starting to fracture. He points to rising backwardations and unusual patterns like higher prices alongside flat or falling open interest as evidence that short positions are being


forced to cover. A sign of market stress rather than new speculative buying. Both Comx and London's forward markets now show a growing disconnect between physical metals and their paper counterparts. According to Mloud, this shift represents far more than a market correction. It signals the early stages of the fiat currency systems unraveling. He explains that silver's powerful rally stems from years of deep supply deficits where industrial and investment demand have outpaced mine output, forcing the


market to draw down from shrinking stock piles. Currently, LBMA vault liquidity is tight with most silver already locked into major ETFs like SLV. To keep deliveries flowing, large financial institutions are borrowing silver shares from pension and insurance funds at record premiums, a short-term fix that only worsens the structural imbalance. Mloud compares this to a payday loan cycle, a temporary solution that delays rather than prevents a larger crisis. With more investors demanding physical


silver and ETFs struggling to source new supply, he believes the silver squeeze is still in its early phase, not nearing an end. Looking forward, Mloud stresses that the current gold to silver ratio of around 80 to1 is unsustainable as trust in fiat currencies erodess. As the monetary system loses credibility, gold will reclaim its role as the ultimate settlement asset, while silver could see an even sharper revaluation because of its dual monetary and industrial demand. He suggests silver could surpass $100


per ounce, while gold moves substantially higher as capital flees paper assets. With many investors having missed gold's initial breakout, silver is now becoming the more affordable gateway into hard, tangible wealth. Now we bring you the clips from Alistister's interview. >> Well, I think I think what you've got to look at is the relationship between uh speculation and changes in the price. I mean, Comx is is is um an openly visible market on this one. When you see the price rising and open interest either


not following or even contracting, that is a clear sign that the bears are being badly squeezed. And if you look at the level of open interest in gold, it's around about 480,000 contracts, something like that. That's not overbought at all. Yet, we've been, as you said earlier, we've been hitting new highs day after day after day, you know. So, where's the overbought? You know, it's not overbought. Okay, you look at the RSI indicator. You know, chartists will say, "Oh, that's overbought." And all the


rest of it, but you know, they're looking at the wrong thing. Um, you know, man does not survive by charting alone. you've got you've actually got to look at the market. So this is a um this is this is a very very difficult situation for um market makers in particular uh you know in futures markets and also in the forward markets in London. I mean I think I think in the in the broader context what we're seeing is um if you like the relationship between paper and physical becoming very very


strained and I think it's a symptom of um the end of the fiat currency system. We are beginning to see uh that the fiat currency system is in huge huge great difficulties. of that there is no doubt and um fiat currencies don't last forever. Um they've always got a limited span and they always collapse and they always collapse in the same way. They collapse basically because um there's just too much debt you know the debt just mounts up and mounts up. I mean the whole point of a fiat currency is you


can issue the thing uh you know without constraint so obviously gets issued without constraint. So that means the current does come a point where the fiat currency can be no more. Um and um you know we've seen I mean every collapse of fiat currency is really from that sort of you know from the overloaded debt um the accumulation of debt and um you know the if you like the the um the dependence of governments on issuing yet more and more more currency. Basically the shortage of silver has built up over


a long period of time. I mean if you look at the silver institute's um estimates of supply and demand you can see that it's been supply deficit for what the last five or six years and uh it's in supply deficit this year and the difference is always made up on the silver institutees calculations um by drawing down on investment stocks what they call investment stocks. Um so you know the we've come to an end of that and uh you know the thing that makes it so difficult I think is you you know


you've got this very limited liquidity um the vast majority of silver in the LBMA vault is actually for silver ETFs. You look at the big silver ETFs I mean basically that accounts for most of it. So the liquidity is actually very very low the you know what's actually available. So what we see is authorized participants as they're known as the big banks if you like um who will be listed on SLVs for example um prospectors uh you know what they can do is they can sell their SLV stock for physical. So


what they're doing is they're going out and they're borrowing silver uh SLV stock um from pension funds, insurance companies, whatever wherever they can get hold of it. Um and um paying a huge great premium to do it and actually you know it's that there isn't any supply of SLB stock anymore. But um you know they then sell it into the market for bullion and then deliver it and they're left with a short position. They've got to cover that at at some stage in the future. So, you know, this


doesn't actually resolve the problem. It just deals with one bank's particular position short term. You know, it's rather like um you know, payday loans. You run out of money and you you know, you've got the bills to pay and you you know, you're not going to get paid until next Thursday or whatever. So, what do you do? you go out to payday lender and you pay 120% or whatever the figure is to you know finance your position for 3 days that's what that's all they're


doing um so you know this is just you know storing up continual trouble in the market I just don't see how this one can really be resolved because the problem is that all this is going into say into secure hands I mean you know people are hoarding the stuff effectively And now because this is so public um people are subscribing for guess what uh ETFs silver ETFs which is reducing I mean the silver you know the managers of silver ETFs have got they've got a problem because they got to now try and find


some silver um and there's very little available in the market. Please subscribe to our channel and hit the bell icon to stay updated on the latest developments.