you're going to count your your your net worth in ounces. Um, so price does not matter because silver is going to go through a failure to deliver. And when that happens, you either own silver and have it or you don't. You're either in or you're out. And if you're out, you'll never be able to get back in. You'll never be able to get in. There won't be physical metal for you to buy with fiat. Fiat is not going to be accepted for physical metal. Don't worry about price.
Just get capital out of the system into metal. Metal can't bankrupt. The system is bankrupting. >> Welcome to Gold Silver News, your go to destination for all things economics and finance. Whether you're an experienced investor, an inquisitive student, or just someone who wants to stay ahead in today's everchanging economic landscape, you've come to the right place. Now, we'll show you the best scenes of the latest interview. But first, smash the subscribe button, hit the like button,
and send us super thanks if you find our daily recaps valuable. Enjoy the episode. >> You're asking me about the the markets today, gold and silver. Uh, and they are markets plural. When I say plural, I'm talking about the paper market and the physical market. Uh, the paper markets are becoming irrelevant, if you will. I mean, you've got $75 silver in New York, in London, yet you've got 80 plus dollar silver in Shanghai, uh, higher in Japan, higher in, uh, UAE, Dubai, uh, all over the world, the physical
market is trading above the cash market. I'm sorry, above the futures market, the paper markets. uh when a spot price trades above the futures price, it's called backwardation. That should never happen because how could an ounce of gold uh be valued today less in the future than it is today? It can't be because there has to be some time value of money. So that's a very rare occurrence. But what you're having happen now is you've got backwardation between markets themselves. The cash markets are
trading above the futures markets, the paper markets, and that's people, investors, buyers. Uh, and it this is not about stackers, uh, silver, the the big demand is is coming from industrial use. But the the point I'm trying to make is you have the paper markets and the physical markets separating. If you want to call that backwardation, you can call it backwardation. Uh but what it tells me is that the paper markets in short order are going to become irrelevant. I would ask you to to go
back and remember what happened in uh April of 2023 when those three banks in California went down on a Thursday or Friday. Um, I was on a short trip. Uh, turned out really not to be a trip because the phone started blowing up. People were scrambling to buy metal. And by Monday morning, no dealers had any metal left in stock. And I mean, we were taking orders uh with the promise to deliver in six weeks. So, what I'm getting at is this can happen very quickly. And it I've I'm on the record
that this will end up as a failure to delivery or to deliver and I believe that will will begin or that will happen first in silver. It'll be followed by gold probably within 24 hours. Um you you mentioned squeeze. Squeeze is that looks toward price. So have we been in a squeeze? Yeah, absolutely. The price is going higher. But the danger is that there's more uh delivery demands than there are ounces in inventory to deliver. And that failure to deliver. Comx will issue force majour. They'll
pay people in cash. That way they can say, "No, we didn't default." But make no mistake, it is a default. If you bought a silver contract with the expectation that you could stand for delivery, get and get the metal and you don't get the metal, that's a default. From a technical standpoint, they can legally say it's not a default, but in the real world, that's a default if you don't get your metal. Uh when we were in the 70s, 80s up to 120, I mean, that was a no-brainer. you buy silver and at a
later date you sell the some silver and swap back the gold and you'll get more ounces than what you would have had you bought the gold outright to begin with. Uh, so as the ratio comes down, I've I've said that I think people need to move in tanches, if you're looking to move x amount of dollars or x amount of percentage of your portfolio, I would do a quarter at 40 at 50, a quarter at 40, a quarter at 30 to1, and then the last quarter you do as a uh just a gut field trade. um you're not going to be able to
pick the bottom, but if you do it in tanches, you can't be wrong and you can't be right, but you'll be better. Uh you'll end up with more gold ounces than you would have if you didn't do that. Yeah. As long as the and the ratios come down, but still at 55 56 to1, um I've said that people should be at least 7030 in favor of silver with an eye toward swapping silver at a later date for gold. Um, and I told people for the last, you know, five plus years that if you want to be 100% silver, I don't have
a problem with that. Um, but when all is said and done, you want to have more gold than silver. I mean, optimally you want 60 70% plus in gold versus silver during normal times, but we've not had normal times or a normal gold to silver ratio, you know, probably for 30 years. Silver has been the target. Uh silver is where I believe the failure to deliver will happen. And the bottom line is once it fails to deliver, you're either in or you're out. You're not going to be able to alter
your position. You won't be able to buy gold. You won't be able to buy silver. If you don't have it, you're locked out. >> Gold and silver are currency. The reason you see gold and silver is because they are forms of money that cannot fail. And the system that the system is unsustainable and we will pass through insolveny uh collapse. The system itself is in the process of failing. So you want your wealth outside of that system and in something that cannot fail. and that something should be money, gold,
and silver. All I know is we're in a structural shortfall. It appears there's going to be a failure to deliver in paper markets. And when that happens, it's game over. If anyone gives you time and a price, they're full of because nobody knows. And just understand that when this thing melts, when the entire system melts down, all the leverage is going to snap. I mean, stock markets, bond markets, property markets, they're all propped up with leverage. But guess what? That same leverage was used to
suppress the value of gold and silver. So the way to close the gold and silver positions for these institutions, they have to buy. When that entire system freezes, like you mentioned, there's there really is no price for the metals because people don't want to sell. Yes, there is. There's a price for metals. Look at the cash markets. Look at the Shanghai market. Look at the, you know, look at the cash exchanges versus New York or London. Those two are paper exchanges. And you've got, you have a
split between the paper market and the cash market. Um, the answer to your question is when silver fails to deliver, gold will be right behind it. And we're talking about derivatives now. That is over well over a two quadrillion dollar market. when all the assets on the planet earth are what 300 400 trillion. So there's far more wagers than there are assets. Everything's going to that will destroy everything. It will destroy trust. It will which thus destroys confidence. I mean across
the board it's going to be a massive deflation versus gold and silver because gold and silver are money. Real inflation or deflation versus nominal inflation or deflation. Nominal inflation or deflation would be in dollar terms or euro terms or yen terms. So it's possible that the stock market doesn't even move. And actually you're watching it occur. You've seen gold and silver surge over the last, you know, silver in particular over the last year, but gold and silver from the year 2000.
The top performing assets have been gold and silver. The world has been in a deflation price-wise versus gold and silver since the low in 2000. if they think or thought that they could do a door-to-door seizure, there will be a 100 deaths the first day. That will never happen. Um, what they'll do, in my opinion, what they'll likely do is just increase the capital gains tax to 90%. That probably made people shiver. But if you pay 90% of your your capital gain, and that's assuming we've got a you even
have a currency at that point, but if you pay 90% capital gain and everybody's lost everything, but you have your original cost basis, you know, plus 10% or whatever, who's who's the winner? I mean, you're you're still a winner. You have capital. And it's it's my thesis that when this thing breaks on the on and begins to rebound, when the system begins to correct itself, if you hold gold, if you hold silver, you're going to be like a bank because these governments are telling you that gold is
money. They're just now telling you that silver is money. So if it's money, uh I mean that's they can't go bankrupt. That's where you want your capital. And actually go one step further in in a system down, you know, in a collapse scenario. Is there really even going to be an IRS? People are going to be so angry because everything has been so deceptive. We've been misled every single day of our lives and the lies are getting bigger and bigger and bigger. The whole financial system is a sham.
And when people collectively begin to realize that I I don't know. I would just imagine people will say, you know, if I'm not paying taxes, I'm not doing anything. I just I think it's going to be a social breakdown. Beyond metals, the case broadens into a critique of leverage across the global financial system. Equity, bond, and property markets are viewed as heavily reliant on borrowed capital. While gold and silver have been restrained by that same leverage through derivatives. In this
framework, gold and silver are not investments, but alternative forms of money that cannot fail. The broader system weighed down by debt and derivatives far exceeding the value of real assets is seen as moving toward insolveny rather than cyclical adjustment. Physical metals by contrast represent final settlement with no counterparty risk. From a neutral perspective, these assumptions rest on the belief that structural shortfalls and confidence shocks will overwhelm institutional controls before reforms or
policy interventions can stabilize markets. They also assume that physical scarcity will prevail over financial engineering and that market participants will ultimately prioritize possession over liquidity as industrial demand rises and geopolitical uncertainty persists. The durability of paperbased price discovery will remain under scrutiny. If physical silver continues to trade at persistent premiums across major cash markets, how long can futures exchanges maintain credibility as arbiters of price and delivery?
Don't forget to like our video and subscribe for our channel.
Post a Comment