gold news

 this is is coming to an end and this is how you get ready uh you know governments have been trying to uh tell you that gold is this barbaric relic for years but they're buying but we're still buying exactly i i'm mike maloney and i'm joined once again by jeff clark and adam taggart so how are you guys doing i'm doing great mike it's great to be back with you this week and adam thanks again for joining us hey it's my pleasure it's my favorite show of the week so thanks guys

well listen we have all of our regular segments this uh this week uh plus a meme of the day we want you to stick around to see that so we're gonna jump right in so this first item here this first article of the day is on zero hedge but it's written by jim rickards if you don't know he's a very pro-gold individual and he says that the war on cash the next phase on the war on cash has begun and he's referring to uh cbdc central bank digital currencies that he thinks are coming

it may not be imminent to him but he thinks this is coming and it will be instituted because governments will refuse to give up on their control of currency he refers it to it as money but he's actually means currency um so what do you guys think central bank digital currency it's on the way mike what do you what do you think about that yeah absolutely i've been saying this for quite a number of years now and uh he actually covered everything uh that but he did it in a very uh succinct format it's a it's a very well

presented argument for this it's absolutely true uh everything in it is uh something that i've been saying for years but he's left out something that um uh that i had missed and then uh george gammon uh did a a segment on this and included that the currency is programmable when you've got uh a digital currency you can make like it's just like the smart contracts on ethereum you can make a certain set of conditions that this car that has to be met before the currency can answer actually be

transferred or spent and so they don't uh need to track you quite as much they don't have to have somebody actually looking at what you're doing and spying on you all they have to do is give you crap they don't like you if you if you don't have the social credits that you might have to accumulate if you're a chinese citizen they go on a you know they're going on this social credit system um your cash can be programmed so you can't spend it 50 miles from home uh you can't buy a

plane ticket to certain places so you can't you know they can control you without having to spy on you all the time and see what's going on afterwards they'll be able to determine what you're able to do in life beforehand uh and then if uh you're able to do something uh outside of what they want they will be able to punish you but the scary thing that i've been saying for uh many many years now is that they can turn you off as a citizen just with a switch they can freeze you

out of the economy and the only thing left is to uh beg and and you know to try and barter to to trade with people but they can freeze you out of the financial system completely if they don't like what you're doing i think this is very scary jim rickards has created a great article here that sort of wraps it all up ties it together into a very succinct uh very clear thought but uh the one thing that he did miss in here is that the central bank digital currencies can be programmable where certain

conditions have to be met before it can be spent and so it's a pretty scary world coming up but i like uh the closing statement if cash is gone there is only one way to escape digital surveillance of wealth physical gold so what do you think adam um so i agree with all your points there mike i i think it's a little bit spooky because we were actually we touched on this briefly in last week's discussion we talked about how uh governments love the concept of uh c uh cb dc's for many many reasons

but one is that they uh every transaction they visibility into every transaction they know where all the currency is and so when it comes to tax time they can they've got 100 visibility so there's a fair amount of the the economy right now that's still handled in physical cash that the government does not have visibility into you know mike if i want to give you know your nephew you know 40 bucks for mowing my lawn i can do that and you know government's none the wiser most of the

time uh they'll be able to have visibility into every single transaction and to make sure that they collect their cut on every transaction going forward so we were mentioning that last week and that's just one small example of both the loss of privacy but also the loss of control that you were talking there about mike you know if the government thinks you owe it right if they think you've done your taxes wrong or whatnot they'll just take the money they'll take the taxes they think they're owed and

then you're gonna have to follow up to appeal right so you're guilty until proven innocent um also if they suspect that you're doing something they don't want you to do you know it's just like today's civil forfeiture laws they'll just they'll just freeze your accounts and again it's going to be up to you to have to do all the legwork to try to prove your innocence and get access to that money um and as you talked about the money being programmable for certain things

um i want to note that um this is not you know in theory jim's piece was talking about the us might come here in a couple years but china is actually piloting this right now there are actually millions of of yuan that have been shared out there where they're actually having people you know experiment with it in real time and one of the things the government's done there is some of those digital one um they are making um they put an expiration date on them and so this is a way if the government wants

to increase the velocity of money if it wants to boost spending it basically forces you to do that with a spear tip at your pack because if you don't the the money is going to expire so this is a central planner's wet dream and i see how it's great for them and they're going to sell it to us because it's more efficient they're you know lower transaction costs they talk about increasing the stability of the system but i think really those are all just excuses to get us to line up to do

what's in their best interest in the long run yes i agree and you know um uh for i was watching uh your wealthy on interview with luke grohmann uh today and he's talking about going into inflation uh arguing against deflation but uh he did agree i believe there's gonna be a very short-term deflation when the markets will crash there's going to be the banks will get scared they're going to stop rolling over loans they're not going to be making new loans because interest rates can go

down to zero but if they're not loaning any currency it doesn't really matter they can't control velocity right now as long as there is cash they can't control velocity but once they have uh this ability uh when they can control everything that you can do with the currency and yes making it expire or nibbling away at it with hugely negative interest rates in your wallet the interest rates are built into your phone wallet and cash is vanishing at a certain percentage per month to get you to go out and spend it

right away instead of keeping it in your wallet uh so yeah this is uh i i still believe though that we're going to experience this short-term dip and then they're going to overreact it's all in uh episodes six and seven of hidden secrets of money uh the description of what velocity is and how uh this affects it but the uh this digital cache this is really a dangerous thing it really is well it's good input you guys i think i'll continue to denominate uh a large portion of my savings in

physical code and silver in light of all this so well on to uh tweet of the day this is from galactictrader endeavor silver which is a primary silver producer down in mexico withholds over 500 000 ounces of their mine production uh silver from the market he's referring to the q1 report from endeavor silver which just came out in anticipation of higher prices the ceo there is brad cook who i actually know i've been to uh most of endeavor silver's projects down there in mexico he has done this before and he's doing

it again because as a galactic trader says he's anticipating higher prices the total is over 500 well about 530 ounces of silver most of it's in dory form which is like a bar some of it's in concentrate and by the way concentrate is like a powder that is uh end up being sent to industrial users that's what they use but the point is that mike that he is withholding selling some of his production almost 45 percent of his production from q1 might because he thinks higher silver prices are coming

adam what do you think uh ceos of silver producers withholding selling some of their production for higher silver prices yet to come yeah so i think this is really just a great example of you know watch what they do and not necessarily what they say right you know when when the boots on the ground operators are they're in the business of selling precious metals when they actually hold inventory back it's because they are the closest to the heartbeat of the demand for their product and what they're seeing is that they see

higher enough higher demand down the road that they want to hold on to that right now to be able to sell into that higher demand later and that's not an easy decision so when you see operators take steps like this it is a very bullish sign where prices are headed and you know pundits like us we look at a lot of data you know we try to connect as many dots as we can but we're not as close to the heartbeat as those guys running those companies and so i think this is a really important and very bullish tell it is

because he has conviction obviously that prices are going to be higher because again this is almost 45 percent of their entire quarterly production so he's very convinced higher silver prices are coming so well if you're liking this video please hit that like button for us there down below and be sure to subscribe to our channel also down below so well guys on to tweet of the day and this is from dan papasku if i'm saying your name right dan uh this is great because it's a chart of

the official gold reserves from the country of hungary and you'll see that they just announced here recently they're going to dramatically increase just how much gold they're going to put in their reserves and they're going to go from 30 let me get the exact number they're going to go from 31.5 metric tons all the way up to 94.5 metric tons so they're going to triple their exposure to gold and in their press release they said that the decision was based on uh long-term national and economic policy strategy

objectives gold is one of the most crucial reserve assets worldwide because it carries no credit and no counterparty risk so this is a huge uh jump in reserves for this country in fact it's one of the biggest central bank purchases in many years so mike what do you think of this uh the country of hungary tripling their gold reserves um well it if you go back to uh back to q1 of 2018 q2 they were down at 3.1 tons at that point and so it isn't just a tripling this is 30 times not three times this is 30

times from 3.1 to 94.5 tons another thing in this graph when it's flat they're lying because they can't accumulate that much all at once without causing an enormous price uh spike in gold uh so they're buying month after month saying oh it's the same as last month oh it's the same as last month those to say they're reporting this same as last month this is what china has done for decades they've been accumulating every single month but reporting what they what they've

been reporting for the last several years and then suddenly they disclose what they have accumulated now this graph here ends in q1 of 2021 which is over with so have they already accumulated the 94.5 tons or is this target that they have no i think they have already purchased this amount yeah okay but you're right mike what they do is is they don't just go out and buy it all at once many of these central banks do the same thing like china's been doing yeah where they accumulate and then they make

an announcement once so if you draw a straight line from that v-dip back in 2016 to the 94.5 tons that's a more than well if you go to the bottom of the v-dip this is more than a 30-fold increase but it's it's more than 30 times from 3.1 to 94.5 and it's it's uh much more like the real accumulation is much more like a straight line from those two points but it also makes me question is uh 94.5 really the stopping uh they're probably going it's going to go flat for a little while

and then they'll announce that they've actually accumulated more uh what have you got uh adam as far as an opinion on this yeah i just say my earlier point um you know politicians they'll say anything um what you got to do is actually watch what they do and uh you know as you've said you know these countries oftentimes will be mum for years then all of a sudden now it's a tremendous jump in in uh holdings right and so you know what we need to do is just look at the trajectory and i think mike you've done

a good job of underscoring it you know we're seeing what a 30 times increase from you know 10 years ago or so um so uh you know what this is telling us is that um you know governments uh central banks etc are out there accumulating gold and there's a good reason for that and if they're doing it we should be doing it for the same good reason yeah they know something is up uh we're getting to the end game of this fiat currency uh deficit spending nightmare that we're trapped in uh this keynesian

nightmare uh this is is coming to an end and this is how you get ready uh you know governments have been trying to tell you that gold is this barbaric relic for years but they're buying but we're still buying exactly right well if central banks are aggressively accumulating gold so should we i think so well on to reader feedback guys this is from silent bliss the perth mint is having a huge problem to deliver physical silver to their customers since last week offering customers thousand ounce bars

from china from a chinese refinery instead of their own bars and this is happening uh beyond just the perth mint it's happening with some of our other uh competitors as well and basically this is referring to unallocated metal an allocated meadow means it's not allocated to you and in many cases they actually don't have the metal so this is becoming a increasingly serious problem mike what do you think well this goes back uh you know way over a decade i warned about this in my book uh and i so i was writing about

this stuff in 2006 and now uh people are actually getting trapped in this they they you know they bought in they were being sold a boatload of crap basically sorry um uh pool accounts are very often nothing but futures contracts you're getting some price exposure you just want to stay you want to make sure that you're in at least an allocated account if you really want to go secure you go segregate uh but you want to go into some place where there is gold allocated to you on the books it's physical it's insured

and that's the reason that back in i think uh 2007 i went and made a deal with brinks in salt lake and i was one of the first dealers to open up storage accounts where it's a third-party vaulting service that is not part of the banking system that where the guys with guns are guarding your gold that's what you're paying for and uh and it's fully insured and highly liquid you can sell it at any time and then uh the cash is back in your account uh usually within 48 72 hours uh sometimes when there's a a rush on

things uh brinks gets behind on their paperwork it might take another day or so for the cash to show up in your account but it's as liquid pretty much as stocks i was surprised the last time i sold stocks out of my uh brokerage account it took long like you know another day or two longer to have the cash in my account than what i can have if i uh sell some and i you know i did sell some gold and silver back uh in 2017 i sold everything was out of it for a month and then rebought to start the clock

ticking again for the irs since i've got uh some special tax advantages here in puerto rico anyway um yes this is just something to stay away from pool accounts it's dangerous i warned about it in my book back in 2000 six seven book came out in 2008 so adam got any uh uh comments on this yeah just quickly it's the classic warren buffett line of um you don't know who's swimming naked until the tide goes out and you know that that happens with these pool guys right which is um you know the danger is is that they

keep taking customer orders once they begin having trouble actually getting the inventory themselves and then they get in this hole where they've sold so many orders they can't deliver on them because they're not getting the inventory in time and then that can create kind of a vicious cycle this happened earlier in the bullion industry it's probably a slightly different variant of it but you might remember the firm tulving that imploded which was one of the bigger retail providers out there and literally

they went down overnight because of this where they had just sold way too many orders and they actually had the physical inventory to back up and um you know the companies we're talking about here are bigger companies are probably going to make it through but but it is this similar type of risk and so that's why when you own precious metals you know you want to have some in your hot little hands right as safe the most dependable way for you to get your hands on it and if there's some

sort of armageddon type situation you you can really count on that but otherwise beyond a certain amount you want to have it held elsewhere and if you do you'll want it to be allocated if not segregated and mike i've sent a lot of people and a lot of capital over to the platform that that you use and uh i sleep very well at night knowing that they sleep well at night having that type of solution yeah you know uh we recently introduced something called instable where it's allocated gold and silver on

the books but it's fractional ownership of the cheapest form of gold and silver that we can possibly source and so uh what you're getting is full price exposure and more than that you actually own physical gold and silver but at these very low spreads and then later on if uh sales uh if the rush into gold and silver uh subsides the spreads on things like silver eagles which you know for a long time uh we stopped selling silver eagles because it was just uh almost a crime to sell crazy premium

yeah eagles at 12 bucks over spot and stuff like that these enormous premiums it just felt wrong and it wasn't something that uh i felt that my customers should go into now you can go into very inexpensive silver watch the price move and then if sales slow down and those premiums come way down you can convert to whatever form you want 100 ounce bars rounds silver eagles whatever you want same thing for gold very good guys well next up uh mike i understand you would like to say something about adam's new youtube

channel wealthy on uh yeah well you know i was just watching the luke groman interview uh it was wonderful i want uh to tell everybody that they really should go over to the wealthy on youtube channel the quality of uh people he gets to interview is quite amazing so take a look at that it's it really does have a very good way of just asking the right questions and then letting the person tell their story so great interviewer and great interviewees on this channel so everybody should go take a look at it

that's very kind of you mike thanks so much and all i'll say folks is if you want to go check it out go to youtube.com on and i'll continue to try to deserve the praise that mike just uh gave me you've had some great guests on there i think adam talks to everybody so there's some big names that are on his channel so check it out well on to our meme of the day so mike tell us about this meme you want us to see well uh this is basically uh our country being remodeled by the federal reserve that's the name of the

contracting company the federal reserve this is what our country looks like the economy and the stock market i want to thank everybody for watching goodbye jeff goodbye adam hey mike i'll see you mike and adam next time