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 silver production from Mexico and Peru the world's two largest producers is at its lowest point in 14 years as gold breaks out to record levels igniting a new bull market for precious metals a major Supply demand mismatch is poised to to drive silver prices significantly [Music] higher hi this is Mike Maloney and I want to welcome you to the front porch of my little base camp Camp House up on my farm here uh where we're getting ready for any potential outcomes I mean we're getting ready for the you know

prepare for the worst but hope for the best and uh up here we grow a lot of our own food I've got my own water supply and I've got a bunch of solar panels and Tesla power walls we're completely off of the grid I believe that one of the greatest crashes in history is just around the corner now and it's coming up and I see it coming and I am bracing for impact and I'm buckling up and getting ready for it so let's take a look at what's going on this was a very impressive chart uh posted by Sam R uh

and it's the market cap of the largest stock so it's a single stock relative to the 75th percentile uh of stocks and so you see that Peak back in 1932 and other Peaks like in 2000 but we are off the charts here so that means that the stock market is very warped everybody's been going after just the largest stocks then if you look at uh the this article on Golds silver.com that was produced by my team uh gold has surged to all uh new all-time highs the NASDAQ and uh the S&P 500 Blaze to

record highs meanwhile billionaires are selling stocks a recent article from Forbes reported that Jeff Bezos Leon black uh Jamie Diamond and the Walton family have sold a combined 11 billion in Company stock so this is you know they're selling 11 billion dollar worth of their own assets and uh moving that to cash basically uh so moving on um these are the uh largest outflows ever from Tech funds so this only goes back to 2017 so I don't know if it's ever but uh major major out flows moving on uh

right now the credit card debt so the the you know average American uh is surviving on credit cards right now uh and you know they're using it as a backup but it's over a trillion bucks now that people owe on their credit cards so this is huge and it's dangerous and we're going into a worsening economy right now as I'll show you uh meanwhile the bank of Japan is considering scrapping it yield curve control program uh it'll stop its program to guide Benchmark 10-year government bond yields

to around 0% in an effort to normalize monetary policy and this could be as early as March 19th and so uh today is the Sunday the 10th and so that's just around the corner basically uh in the United States uh the currency Supply the M2 currency Supply is shrinking uh it's gone negative if you look at the times in history that it's gone negative we have the depression of 1921 it went severely negative after the big inflation uh for World War I huge inflation and then uh they shut off the

currency Supply spigots and there was this huge contraction then we've got the Roaring 20s here and the crash of 29 uh brought on the Great Depression so we had this this big contraction and the government responded with uh the Federal Reserve responded with all of this currency creation and the government trying to devalue the dollar and they did they took the dollar from uh $20.67 an ounce of gold or in other words um 12th of an ounce of gold to 135th of an ounce of gold in 1934 they uh banned private ownership of uh gold

bars and coins in 33 and then in 34 uh they allowed for a month they would allowed the exchange rates to change uh internationally and the free market and the will of the public internationally caused the price they would uh let it float the exchange rate would change a little bit and then they would Peg it again they would let it float and Peg it again they did this for about a month and the uh they they pegged it at 35 which more than covered the amount of dollars that had been created uh since

the Federal Reserve that weren't fully backed by gold so now it could be fully backed by gold again but then we had a recession within a depression this did all this currency expansion did not get us out of the Great Depression there was the Roosevelt recession of 1938 then it was uh World War uh two and the gold flows basically for World War II running up to uh World War II uh Europe took all of their young men turned them into soldiers nobody left on the farms and so they had to import all of their grains

and a whole lot of consumer goods uh from the United States and our gold stocks went way up and this is part of what lifted us out of everybody thinks that war is good for the economy it is not you're only building things that are going to blow up and and uh destroy uh many other very expensive things and you're making bullets that are going to kill other young men that could be working um and and then we had a couple of pretty good recessions back in the 50s but other than that the currency

Supply growth has been pretty constant since uh the you know since the late 50s and for the first time since the late 50s it is Contracting why what is causing the M2 currency Supply to contract well M2 is current is is largely made up of bank credit the dollars that are in the M2 measurement of the currency Supply is the currency and circulation portion of um of uh base currency uh so the dollars in your wallet paper dollars and bank credit and so if you take a look at bank credit it's also Contracting now it

contracted in the global financial crisis in 200 uh n and 10 it was Contracting um and what's interesting you know I uh wanted to look at this on the Federal Reserves website so I went and created basically the same chart this one though is quarterly to smooth the lines a little bit more but you can see the contraction uh that it was after this recession and this time there's a contraction and there is no official recession yet it's Contracting and there's no official recession but every

time you can you see this sharp drop drop uh it come caused by a recession this short drop uh predicted a recession and we had the recession this sharp drop was caused by a recession this sharp drop started before the recession so this is both a leading and a trailing indicator but every time there's a a recession the currency Supply is Contracting and this time it's negative and the only other time on this graph that it's negative was shortly after after the global financial crisis and

the recession that it caused so why is the currency Supply Contracting what causes Bank credit to contract well uh medium price homes are are sharply Contracting so what causes home prices to fall is that there's uh not enough buyers out there so there's fewer bu buyers and the price Falls which means there's fewer loans being made when Lo when there's fewer Home Loans being made than paid the currency Supply contracts when you pay the principal on your loan that uh borrowed that bank credit that

was borrowed into existence meets the uh debit on the balance sheet and they annihilate each other and so um this the the falling home prices is one of the factors there's fewer loans being made than are being paid so as we pay down those Lo loans it destroys currency and normally the economy keeps on growing and more loans are being made to make up for the loans that are being paid off so the the the falling home prices and the lack of demand for homes is causing the the bank credit to contract which is causing the currency

Supply to contract so uh here is the same thing with the recession bars in it let me go back to this one goes back to 1964 and mine also goes back to 1964 so this is the Fed data and you can see that when it contracts it can bring on a recession and it contracts and brings on a recession it contracts it brings on a recession here the recession had already started but normally the contraction is what causes the recession and look at the contraction this is the biggest contraction in measured history and so

so uh we are in for some big crash coming up sometime soon and then they you know after we get uh two quarters of so it's sometime like three it'll be nine months after a recession begins where they say oh the uh last prev two previous quarters were contraction that's when the recession began so their Declaration of recession is a trailing indicator um anyway uh in the last video that I made I showed you the inverse Head and Shoulders pattern so here it is the inverse Head and Shoulders but you know uh gold uh

was going up a little bit it pulled back it made this triple top with a head and two shoulders inverted and it predicted this big move a slingshot move well we sort of got that and we had I I said that we had had seven trading days up in a row that were up up and uh so it was sort of due for a pullback well now it's eight trading days in a row with no down days and so it is probably due for a pullback and I want to show you silver which only had six up days but notice this candle here this is called a dogee

and uh this is a red dogee where it it uh opened higher than it closed so it closed down but that often predicts a reversal uh and so here we have a dogee on Friday the 8th of March and it it very often like I said predicts a reversal uh this is where investors really can't make up their mind is it going up is it going down and uh now the next chart is a little scary for any silver investor this is the borrowing fee looks like someone is in a panic to borrow shares of SLV SLV is the exchange

change traded fund for silver the big one uh the borrowing uh fee nearly doubled in the last hour of trading a new high on the year uh and he just wants people to try and get this out so I'm helping him here get this out but look at the I mean this is huge going from there to there in one trading day so somebody is trying to borrow a lot of uh shares of SLV why do you borrow shares you only borrow shares when you're going to sell them into the market you're going to sell short uh when you sign up for a margin enabled

trading account so if you have a brokerage uh account and it's margin enabled uh you have given your broker permission to go into your account and borrow share your shares and not tell you so your shares may or may not be there this is one of the things I do not like about all of these ETFs it's Hocus Pocus High Finance Hocus Pocus and so they borrow these shares they loan them to somebody else who wants to sell short he sells it short into the market and now you have two people owning the same

ounces you think you've got ounces in your account your broker has not told you gone in there borrowed him loan them to somebody else who now has those ounces and sells them into the market so now there's a new owner of the same ounces that you own and uh that the borrower eventually has to buy them back but that that borrower is betting that the price is going to go down and you'll notice this happened uh toward the end of the day is what um what uh Bob Coleman says uh so if it's toward the

end of the day that's what made up that uh red dogee that we just saw the price closing down lower than the open now hi I just wanted to take a moment and thank you for subscribing and mention that if you'd like to help our Channel please consider my company goldsilver.com the next time you buy precious metals we're one of the most trusted names in the industry our prices are sharp delivery is fast and we have an insiders program where you find out exactly what I'm doing with my own Investments thanks for

making goldsilver.com your dealer and now back to the video this is nothing to worry about in the long term uh but you have to sort of buckle up and be ready for all of this and if you don't have a large enough position in silver you may want to uh consider buying this dip I I never give advice I just tell people what I see and what I do uh but I do think that there's a a little correction coming from the price explosion that we've had over the past few days but the silver production in Mexico and Peru uh

is is way down silver production from Mexico and Peru the world's two largest producers is at its lowest point in 14 years the combined output is now down 25% from its 2016 Peak levels and that's from my friend uh Tavi Costa and so uh as gold breaks out to record levels igniting a new bull market for precious metals a major Supply demand mismatch is poised to to drive silver prices significantly higher so we have all of this going for silver in the long term this Supply demand imbalance then and

the only thing that makes Supply meat demand is price that's that's the leveler um and so from Peter Spina of gold seek says uh silver prices are nearly 11% higher now in China so there is this Divergence and uh let me see I can I'm staring into there's a white cloud up there that's real bright um and so in China here here we have 2448 uh on the comx and 2667 on the Shanghai uh exchange for silver and that means that uh somebody can buy in the United States and sell a Futures Contract there and then ship the

you know take delivery of the silver ship it to China and so what this causes is gold and silver are currently flowing from the the West to the east which is tragic in my opinion because after this is all said and done uh the West is going to be a lot poorer and the East is going to be a lot richer uh so uh I showed you this in my last video from Jim biano uh where uh he says that uh the gold price in Orange and that's and the cumulative outflows of all 10 gold ETFs is in blue and there was a

Divergence that happened in late 2022 so there was there was a little bit of a Divergence right here that was shortlived but um uh Luke groman uh here's Luke groman uh this is the gold price and the tonnage in GLD the gold exchange traded fund and he's got these two circles where the tonnage was falling dramatically um in my opinion an interesting Bank Run of sorts is on our screen right now being shown by the black line below one where where's this tonnage this gold tonnage going in 13

through 16 it mostly went to China so here it went to China why is the gold uh why is the price of gold going up during this run on physical gold uh when it went down during the 2013 2016 period the people in China are buying that is the reason this is going up and so now I want to show you something that is happening in China right now that is quite amazing and I want to read to you from uh an excerpt from the uh chapter I believe this is chapter8 in my book but I'll I'll play this you can watch

segments of this while I read the book so we'll go back and forth from this to the book and uh and so Dan if you can um uh play this uh you know and then uh go back to the book text while I'm reading it but um these are people people in China lining up to buy gold and this is panic buying and it's it's happened before but not in China the last time there was a a big gold rush uh it was illegal to own gold in China that was under mauo and so here we are with excerpts from my book

to give you an idea of the emotion and psychology that was driving the gold price in 1979 1980 I've included an excerpt from an early draft of my first book so most of this got cut out of my first book Gold had started rising from $35 an ounce almost immediately after leaving the dollar but in 1971 anyone who said gold could reach $50 an ounce was considered crazy and anyone who said that $100 was possible was tied up hauled away and placed in a rubber room but in late 1978 it broke through the $200 barrier and something

changed changed in how gold was being traded and how gold was being viewed by the public gold was once again acting like money Time Magazine June 11 1979 Ingot we trust in the past two years a brand a a new brand of buyers has flocked to the market American institutional investors some us Pension funds mutual funds and Bank Trust departments are putting a portion of their assets into bullion now this has not happened yet this is uh uh something that still lies out there in the future uh there are very there's

when it comes to institutional investors almost none of them have any gold whatsoever so back to my story in 1979 people started lining up in front of coin shops and the phones were ringing off the hook at the Commodities exchanges Time Magazine October 1st 1979 the glitter that is gold from Zurich to Chicago from London to Hong Kong gold bugs are scurrying once again to buy into their favorite hedge against disaster with people battered by inflation and recession worried about oil and lacking confidence in leaders

and cures the Gold Rush of 1979 has turned into a Stampede in the past month silver has risen 65% while gold has gone up 23% the popularity of such tangible assets reflect a fast deepening distrust of all paper currencies essentially the price of gold is an index of anxiety and a barometer of fears back to my story gold had begun uh back to my story gold had begun September of 1979 at $315 and by October 2nd the day after this article it hit $426 a 35% rise in one month Gold languished for the next 2 months but

then on December 3rd gold surpassed its previous high and it was Off to the Races Time Magazine January 28th 1980 Stampede for precious metal last week gold left even its most frenzied boosters gocking in astonishment in five wild and erratic trading days it leapt by an incredible 34% it was one of the most dazzling run-ups in history and it underscored the enduring psychological lure of the yellow metal as the most consistently s sought after possession in times of strife and uncertainty Harvard social

psychologist Roger Brown compares the Panic to the rush on the gates of The Who concert in Cincinnati that left 11 dead says he the fear that they are going to be too late and left out causes people to Stampede in cities throughout the US and Europe people by the thousands lined up at jewelry and coin shops lured by newspaper headlines of IOP new prices for gold and silver and even by hourly news broadcasts on the radio again none of this is happening yet and but it will it's still out there

in the future so there is still time of course the rise reflects intensifying anxiety over the world's situation particularly the crisis in Afghanistan and Iran do we have a crisis in the Middle East right now the Middle East has been this constant sour spot but you know when they say Afghanistan here that's when Russia was trying to occupy Iran or Afghanistan I mean and we had a problem in Iran and so uh uh but now we've got these other crises going on in the Middle East uh and we are closer to

nuclear war than at any time in history uh you know even probably closer than the uh Cuban Missile Crisis in times of such uh grave concern people are moved to switch out of paper currencies and into objects that seem immune to political iCal travail observes alen Greenspan who by the way was not yet fed chairman and was a big supporter of the gold standard gold is a store of value that governments cannot seize devalue or easily confiscate still the US eventually May pay a high price if bullion keeps leaping if the dollar is

worth only 1 1800th of an ounce of gold then it seems to be worth almost nothing well today the dollar is worth1 2200 of an ounce of gold now back to my story I remember this fairly well I remember watching the local news broadcasts and being amazed at the helicopter shots of the line of people waiting to get into the a local coin dealer this dealer was only a few miles from my home located on a major city street in the center of the block with sidewalks about 15 ft wide and the line of people went out the

front door stretched down the block filling the sidewalk around the corner and up the side street the news media were interviewing people in line and the lines were being compared to those of Star Wars and Apocalypse Now adding it all up so now let's add it all up and try to estimate just how much currency could come chasing gold and silver in the great gold and silver Rush of the 21st century versus 1980 today we have 18 times more people around the world that can buy precious metals 55 times more currency

56 six times more millionaires 200 times more billionaires 220 times more available Consumer Credit 31.5 times more assets under management and 49 times greater Global stock market capitalization now the reason I mentioned assets under management and the uh 200 times more billionaires is because these are people that can literally steer in in at any moment they can steer a billion dollars here or a billion there and they have not been rushing into gold yet yet uh so I'm going to skip to the end and um read you

that but remember price means nothing value is everything so how much can you get for your ounce of gold I believe that for every ounce of gold and silver you own today you are going to be able to buy many many times more stocks bonds real estate businesses and just about anything else you want or need one day the precious medals are going to amaze everyone make sure you come back and reread this chapter once gold goes soaring past $3,000 $5,000 $110,000 per ounce and never looks back because the great gold and silver Rush

of the 21st century is absolutely going to take your breath away and now I want to end with this meme currency Wars are we winning well right now there is this uh transfer of gold from west to east and and we're settling in currency paper currency when this is all over with when is when all is said and done the East will be far richer the West will be far poorer uh I am getting ready for the greatest crash in history so I am bracing for impact I am buckling up and my safety belt is precious metals it is

gold and silver that's my safety belt what is your safety belt I want to thank you for watching please like And subscribe we'll see you next time