hi i'm mike maloney and i'm joined by adam taggart once again adam how are you doing i'm doing great going to try to fill in for jeff clark again as host i got to tell you my shoes are real big but going to do the best i can well you've done a great job so far oh thanks it's been a lot of fun well look mike we got a lot to plow through today and i think we got a lot of folks probably watching because at the end of last week uh just to start with the elephant in the room uh the precious


metals took a big hit on friday and then they took a really big hit as the futures market opened on sunday night so can we just dive right in and explain what just happened for folks uh yeah i there will be more data available when the commitment of traders comes out on thursday or friday uh it it you know when you have a level two trading platform you can see all of the uh bids and asks that are on there you can see the cell stops you can see a whole bunch of different information than a consumer


can see on a brokerage platform and uh and so the big boys there's a lot of people that have to get out of their short positions uh to before gold and silver start a big rise and so part of this is running stops part of it they're blaming on uh you know liquidity and uh and the options expiration and stuff like that part of it's blamed on uh real the interest rates so uh tell tell me your take on it well from what i understand and this happens from time to time in the precious metals market why it's


allowed i have no idea um but uh four billion dollars worth of gold futures were basically dumped uh at the open in the asian markets uh sunday night uh america time uh when the markets are much more thinly traded and it just blew through the bid stack it basically was just put out there as an open market order and uh just you know dive through the bid stack trying to find uh you know as many orders as needed to uh to fulfill that four billion uh place uh placed order and the the the crazy thing about that is nobody who


was uh price sensitive or cared about getting a good price for their gold would do something like that they would sell it more gradually over time they wouldn't dump it all in a matter of minutes right so that's what happened and people are saying oh maybe that was triggered by the big payroll report that came out on friday in the u.s uh you know what happened in response to that it said hey unemployment's going down uh u.s treasury rates went up a little bit uh basically the logic being that oh the


fed may have to taper or tighten sooner and therefore um treasury rates are going to go up and therefore real rates are going to start rising and that's not good for gold but as you and i we'll talk for in a moment mike i mean this reaction is incredibly disproportionate to what we just saw on friday uh yeah uh one of the things that i would uh come back with though this flash crash that happened how much the price of gold is still lower than before the flash crash so if somebody dumped four billion dollars on


the market in super thinly traded hours when they could see all of the bids and they could just run those bids and they knew when they dumped the four billion dollars worth of gold how far down the price would go well there's been a whole lot of buying that has happened between then and now you know you've got quite a bit of trading that happened once the market's open at a far lower price than gold was so if that same entity had a whole lot more uh short position a huge short position so


they sell which increases their short position but uh if they've got a whole bunch more shorts already there and they push the price down they can actually make a profit by losing four billion dollars yeah and mike i mean that just it's very hard not to see this as just blatant manipulation you know whatever the reason is because they want to make money on their shorts or they want to bang the price down and then buy it you know more at lower prices or maybe even both right and uh you know we will see uh


when the commitment of traders report comes out uh later in the week uh how many how much covering there was at these lower prices uh if the covering at the lower prices offsets the uh four billion dollars that was lost then they got to run all of the uh bid stack like you said and uh they knew where the price was going because you can see how many bids there are out there for a certain quantity of gold that you're going to dump so you can see where the price is going to go when you're such a whale in the room during these


super thinly traded hours uh so it was blatant manipulation yes yeah all right so i've got a number of fob questions on this mic and you've been following this market a lot longer than i have i'm going to ask you what might be a rhetorical question here but you know how is this allowed to continue it's gone on for you know the 15 years i've been following this market it's it's a chronic sort of feature of this market that these big whales get to push stuff around and there really


doesn't ever seem to be uh you know any enforcement of the regulation of these exchanges that that comes and penalizes these guys uh do they just have so much power and and so many political connections that uh the cops are just asleep on the beat or what's the story here well you know i i sort of like it it got crushed down uh i'm hoping it goes down a little bit more i've got some targets uh where i will accumulate i will increase my position but the only way to beat it if it doesn't you know if they don't somehow


uh figure out what the conflicts of interest are going on here and uh eliminate this type of trading if they if they don't correct this and i doubt very much if they will then the way to beat it is to own physical i don't feel like i yeah the price of gold went down and silver went down but i don't feel like i lost anything it's just an opportunity to accumulate more because these are all short-term manipulations where they're just grabbing some cash very quickly out of the markets the


rest of the small investors become somewhat complacent and so these big boys figure out how to take them for a ride and empty their pockets but if you just have a physical position and you're not playing futures and options and things like that you haven't lost anything you've just been provided an opportunity to increase your position because what i'm betting against is the dollar i'm betting against the increase in the currency supply i'm betting against central banks i'm betting


against modern economics and the way the economy the global economy is run i just think that ultimately there is a big failure on the part of these entities coming up and it's going to show up as spectacularly high gold and silver prices and i might mention you know i have been sort of doing this now since two october of 2003 is when i started investing and so for anybody that is not like in a positive position this is sort of a long-term thing but when it comes to financial to to monetary crises


everything goes along at a certain trajectory i'm i'm trying to flip the chart here and then it it 80 of the move comes in the last 10 of the time and so uh you're going to see fireworks uh someday i don't know when i've been waiting for it since 2003 but my gains in just being in this sector have far surpassed what it could have been in stocks well really well said and i i love how your mentality you know in regards to sort of the unfairness of the short term um wanging around in the market that the big whales


do uh really to me sort of sounds like a judo move like where you're using their momentum to your advantage and when they bang the price down um rather than fret about it you just see that as a you know a better buying opportunity than you you had beforehand and as you said just let the long-term trend take care of you with the expectation that when this thing really gets into high gear most of the gains are going to be coming in that that last you know remaining eighty percent plus uh of the move


um well look you also answered one of the other questions i was going to ask you which is how is this affecting your personal trading if any sounds like you just mentioned you have some targets just as a reminder to folks we do share mike's specific trades when he places them with our insiders at gold silver so if you are not a gold silver insider yet uh you should sign up for that this uh what we've been talking about does relate to a video uh presentation i did that you released on wealthy on


and uh and basically you know that's uh the video was how high may gold the gold price rise but it's also about the looking at the macro looking at the long term of the fundamentals of the markets i'm not a great what we've been talking about this flash crash is just that it's a flash crash it's a blip in the middle of this uh giant bull market that we're we're basically in uh you know we've we've had this little pause in it but i consider uh 71 to 80 a single bull market with a bear market


correction with a correction in the middle that it's all one bull market we're still in the bull market that started in 2001 i believe and what we've been through for the past uh you know almost a decade is a correction only uh uh you know it's a mid-cycle correction the rest of the move has yet to come uh but i would suggest that people go and watch the wealthy on video because you're going to you know it's got some questions at the beginning and the questions sort of set the fundamental


economic structure that we're in and then uh one of your viewers had asked the question uh you know or yeah asked me the question has any uh reserve currency central bank reserve currency ever gone into a hyper inflation because when they ask that question people think they're catching me on something and they aren't you've got to watch the video to see why uh there you know there was a reason that uh all of the uh central bank the reserve currencies or the predominant currencies had never gone


into a hyper inflation up until 1971 and then that reason vanished so by the way watch that video we've got a big anniversary uh coming up on august 15th this coming sunday so watch that video and it gives you some perspective on what's going to happen on sunday august 15th yeah and just to call that out that sunday august 15th that is the 50th birthday of the u.s fiat dollar uh i put a little video out on that only because i turned 50 a week ago uh so the us dollar and i are almost irish twins here um uh but uh


mike that video that you created uh that we're running on wealthy on it is just phenomenal i really cannot tell you uh how overwhelming the feedback's been on that so folks if you're watching this video but you've not seen uh the presentation that mike's talking about here just go to youtube.com on watch it there it's the featured video there um mike does a phenomenal job as you just said kind of really laying the foundational argument for you know why you really want to be in precious metals so if for


any reason the recent action in you know the precious metals getting banged around uh has you at all a little bit nervous this will put you to rest uh and then uh in addition to his phenomenal answer to has a world reserve currency ever hyper-inflated he then actually goes into his calculations for exactly how high that he thinks gold should be able to go given current currency supply and the numbers that he comes up with uh given current supply not even where we think it might be going are pretty freaking


staggering given today's prices so um you know if you've got at all any sort of unease in your gut go watch that video it will totally put that to ease those numbers that you call staggering are just if history repeats and the uh gold and silver go into the same balance that they were uh in in 1980 uh with the same balance with the currency supply uh and so the you know i love ratios and ratio charts uh to me they foretell they they show you what fundamentals are and they foretell where the long term where


uh with the direction that things are going to go all right so if history is going to be any guide and usually history is right um go watch that video and see where mike thinks the price is supposed to be um okay real quick just to move on here mike let's get to the tweet of the day uh which is a chart here um and this sort of underscores a comment that i made earlier um this is a chart um basically showing uh you know the the real rates right now and you can see there is a tiny little blip up


in the long macro trend of real interest rates becoming more and more negative over the past couple years tiny blip up recently and people are using that to justify the you know 10 percent plus decline in gold 20 approximate decline in silver uh that we've seen over the past few days and as i used the term disproportionate earlier but this just sort of seems to be totally blown out of the water as an excuse and mike let me ask you this where do you think rates are going to go from here higher or lower


uh well eventually higher uh except there's a crisis coming they're going to try and prevent it as long as they can and uh when it happens you're going to see them try you know the the fed to keep rates low they have to uh purchase u.s treasuries when there's a crisis uh if another enough investors are rushing toward what they consider the safe haven investment of bonds rates uh stay low then but if if the investors stop buying then it's the federal reserve buying up all these


treasuries that are being issued just to keep the price the rates down so because they see this that when the rates are low they see it as stimulating the economy when you prevent any savers from actually uh being able to to save for retirement and uh you you cause people to spend to borrow and spend when rates are low more people borrow so more currency is created and that causes bubbles to develop wherever that new currency is spent first usually it's in something like real estate uh you know the stock market because of


margin trading and so on so when rates are low uh we go into warped economies and uh bubbles when they're artificially low when they're not set by the free market but the whole point of this chart is that little arrow and that little square this is supposed to be the thing that caused the flash crash and it's absurd so yeah all right mike let's end on the thought of the day here which i find really really interesting um let's bring up the uh the image here um it's a an image from uh


apple with some of its rock stars there uh back i think in 2008 why don't you set the context for us here about what you think this image is telling us well so here's steve jobs and his crew introducing iphone sdk which is software development kit for developers so if this didn't happen there would be no third party apps there would only be apple apps on your iphone this opened up the door it doesn't matter what operating system your mobile phone is using uh you know maybe there would have been third-party


developers uh introduced later but this is what started the trend of all of these wonderful apps built by individual companies all over the planet and when you look in your phone it's probably 80 to 90 percent third-party apps not apps that are provided by uh the uh company that that makes the phone or makes the uh soft your uh operating system software on the phone so uh this was an event that is probably actually bigger than the introduction of the iphone and i count 21 people in the audience


it says came across this photo of apple launching iphone sdk in 2008 jobs and his guys on stage a ton of empty seats seems key moments from the for the future seldom have an audience and if you're fortunate enough to be there don't expect fanfare or validation yet and that's very much how the precious metals sector has been for all of these years so uh but there is a big payoff in the end it's going to be spectacular it's going to be as big as this software development kit introduction it's just that the general


media ignores it at the beginning of bull markets i want to thank everybody for watching thank you adam great pleasure mike as always thanks