but the important thing that I see here Beyond just the supply and demand issue this is huge and who are the people that are generally so good at shorting that they make profits at [Music] it hi it looks like there is something really important happening in the gold market right now and we're going to get to that and and alen and I are going to analyze this Alan how are you doing I'm great Mike thanks how are you great so um first there's some housekeeping items that I want to go over and the one thing


Dan can you put up my screen my book is back on Amazon it took a long time it was a couple of months now uh with the problems that we have with Amazon and the problems that we have with the Fulfillment house that stores the books and then ships them to Amazon uh and so we are overcoming those problems right now but the the book is back uh the other thing that I have is that uh if you applied for the assistant position and I haven't contacted you yet don't worry uh and don't send another


resume uh I am going through all of these this is something that's personal where I'm working with somebody so I actually have to be the one to go through all of these resumés and there were couple hundred submit misss and I just get very burnt out on them so I need an assistant to help me find my assistant but since I don't have an assistant yet uh it it is going to take a while I should be done with them like uh you know within a week and at that point I'll be contacting the uh the


finalists and having them down to Puerto Rico to get to know them better and then picking one so uh um please don't send any more resume uh and uh and you'll hear from me when I have picked one so that you'll know uh if you are one of the finalists or uh the position has been filled so Allan what do you have for me well Mike uh basically it all started with a tweet from Bob Coleman and he said I want to read it for you this came last week on October 19th he said very strange events happening with GLD ETF since the invent


since the events in Israel began GLD has seen outflows of over 500,000 ounces that's over a billion dollars in Assets in the meantime the price of gold has moved up $130 per ounce very suspicious on top of that the shares available to borrow that's for short sellers the shares available to borrow just went off a cliff it used to be 3 to four million shares now it's 150,000 shares and the borrowing fee is rising so this is suspicious it seems like an issue of supply and demand there's not a lot of


lot of not a lot of shares available to borrow and so if the demand stays the same or goes up the fee is going to go up to meet it Mike yeah uh you know the one thing I want to point out to people is that gldd is not gold and this the very fact that you can short it proves that uh you buy GLD and if you have a margined enabled uh account on your trading platform uh the uh you you buy what you think is a certain number of ounces of gold that you think you have title to and uh but you have shares in a


fund and that fund can be shorted and when you short a fund The Brokerage house borrows shares uh then he could you know if you're if you're long GLD some of your shares could be borrowed and sold short and so you think you own ounces but those ounces have been borrowed and sold again so two people think they own the same ounce this is one just one of the many reasons that GLD SLV these exchange traded funds for precious metals are not precious metals it's shares in a fund that and the fund


might have title to these precious metals if the fund has a problem and uh there's a force meure or something or uh you know some liquidity problem and all they're um prospectuses also say things like you know during certain Market illiquidity events the price of the ey shares May diverge from the price of uh of silver and fall uh stuff like that uh so uh just realize these are good instruments for day trading but if you're investing in Precious Metals it's something to run I mean you want to run


as fast as you can in the opposite direction this is this is not owning precious metals but let's go back to that again for a second because there was a series of these charts wasn't there yeah there's a series of these charts there's three of them which came as a part of three separate tweets from Bob Coleman so again shout out to Bob thank you for tracking this and and bringing it to everyone's attention but let me just explain quickly what's on this chart so that viewers understand uh


it is a little complicated and it's not very well labeled so it did take some dating exctly we were having an issue with this and that's what delayed it it wasn't until his uh second uh um posting on x.com you know formerly Twitter uh that I figured out that which line was which you and I figured out these things so because because of the poor labeling and then uh there was nothing describing which line was which I you know it's pretty obvious that the Gold Line in the background is the gold price but yeah so


so go ahead yeah exactly like you said the Gold Line in the background is the gold price but it's not labeled uh there is no y AIS here the y- AIS is a percentage but of course GLD isn't isn't a percentage it's points uh so it doesn't quite dropped to zero here it just was a temporary dip but then it recovered so that's the Gold Line the gray bars in the background are the shares that are available to borrow and the reason you would borrow these shares is so that you can short them and we can


see that they're dwindling in the last week or two finally the red and green candles in the middle uh represents the fee to borrow one of these shares so it's basically the price the cost of taking a short position and the candle spiked up recently and at the same time the number of shares available to borrow is dropping and this is really the red flag that Bob raised on Twitter and like and like Mike said uh just a second ago this this is only the first of three charts so let me move to the second one


and show you how this developed just four days later and then read his uh yeah yeah so here's the second tweet GLD ETF alert borrow fee to short sales excuse me to Short shares of GLD doubled from Friday so the cost to take the short position has now doubled over the span of four days and it's about to surp surpass the temporary Spike on August 30th and you can see this massive green candle here on the right side of the chart and it's just about to to pass this really high this intraday High uh


from about two months ago yeah for anybody that doesn't know a candle chart um you've got a an open the intraday and then the close and that uh big green Candle on the end the open is the bottom and the close is the top the previous August 30 where there's that Wick Stick sticking out of the candle that big tall Wick so it opened at the bottom it went all the way up to the top of that Wick and then came back down and closed at the top of the fat bar the fat part of the green candle just uh you know for


anybody that doesn't understand what that little spike is sticking out of it that was just something that happened in the middle of the day during trading uh and then it came back down but here we are closing in an uptrend and to me this suggest guess that something is up so what what else do you have to uh say on that chart yes exactly so we can also see the the gray bars dwindling close to zero meaning there's not a lot of shares available Supply is drying up and the price is moving up to reflect that so


let's go to the third tweet Bob finishes it up with another GLD ETF alert he says the borrowing fee to short GLD just moved to a three-year High a three-year High look how massive this this set of green candles is and notice that the candles are really skinny this is a longer time frame now yes exactly exactly exactly and point out the August 30th candle right here yeah right exactly so we have doubled that intraday high of the August 30th candle so that in other words there's just no no shares


available and people are paying a fortune now to be able to borrow them and sell short yeah exactly like the normal volume of shares available is somewhere between 3 and 4 million shares 3 and four million we're down to a 100 shares 100 shares it's like basically basically nothing so um where those shares come from uh I don't know what percentage the brokerage houses are able to borrow out of your account without telling you but if you have a margined enabled uh trading account on Fidelity


or Schwab or or you know um airit trade or something like that uh they can go in and and borrow their shares when you log in it doesn't show that they have been borrowed and then they can loan them out and charge interest in these fees to the borrower so it's it's basically fractional Reserve lending uh with and they're not really telling it's in the the disclosures are in uh the uh agreement for opening a margined trading account uh and I don't know what percentage The Brokerage house is allowed to borrow so


the number of shares available would be limited but the important thing that I see here Beyond just the supply and demand issue this is huge and who are the people that are generally so good at shorting that they make profits at it that's the professionals 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 and so uh the there is and when people go short if the price Falls there's a point at which they cover and then the price bounces so there are a lot of people here thinking that gold is going to fall soon do you get that from this yeah or or at least they've been betting that way for a


while and uh they're sort of running out of ammunition if they want to maintain that trade there there's not going to be any any shares available to to continue oh yes that's right because the uh Shares are dwindling the price goes up so they're uh they're already short but they're now paying more to stay short exactly that's how I interpret it okay well I interpret it uh that why why is the out are The outflows Happening why did the available amount of shares uh to go short


vanish uh some some PE a lot more people must be going short uh here unless the uh unless like is uh the number of ounces that the outflow that's nowhere near like 50% of what GLD is it's a very small portion when it comes to the outflow uh this is just showing this is sort of revealing the positions that people have long or short positions and um so anyway um have you got any other comments on this chart because I want to show you some other charts that I think uh also reflect on this yeah I guess the


last thing I'll say here is the outflows could be I mean I'm just speculating here but the outflows could be some of these um major institutional players that are actually redeeming their baskets of shares to take delivery and gold I don't know yeah um but could be that but in any way that it seems like a bullish sign no matter what explanation you come up with whether it's whether it's taking gold out of the ETF um and into storage or something else it seems like if it's going to be harder to take


a short position people aren't going to be able to bet against gold like they traditionally can so I look at this overall as a bullish indicator regardless of what the reasons are underlying it yeah uh I think you're absolutely right and the thing is is that uh if if I owned GLD or you owned GLD we can't redeem those baskets it You' you've it takes first of all I can't remember exactly huh 100,000 $100,000 100,000 shares shares shares and each share is uh what is the okay yeah so I mean it's it's huge


and then uh it's so it is mostly institutional uh it's mostly bullan Banks and very very large institutions that can actually redeem their shares and get gold out of GLD most people can't uh and but to me uh this also means that there could be a very short-term pullback a um a you know little flash crash or something like that uh where these people that are on the short side will make a profit but what happens what what stops a market from falling to zero are the short sellers they're making a profit on the


way down and they have to uh try to guess when that market might reverse and they need to cover their position and buy back their shares which is positive price uh pressure so when they buy back that causes the bottom to come in and the uh price to reverse and it rises again so it causes volatility in the market but if you know these people may end up making a profit who knows uh but uh the very fact that the same ounce can be sold to two different people is very uh it's it's immoral to me


anyway so uh I'm going to show you something so Dan if you could share my screen uh you know the this is the commitment of Traders report and so this is uh gold and silver Futures this one's silver let's cover gold first um and one of the things that you see here is that big rallies such as this one here come from uh fairly low levels of what is called the commercial net short now net uh it's you take the Longs and the shorts from the non-commercial mostly funds and you know like Pension funds


and things like that and then these non- reportables are small Traders and the non- reportables there's a black line in in behind the red area here the red bars so that's the non- reportables when you add the non- reportables to the uh non-commercial commercials the the red bars that equals the exact amount of commercial net shorts so you've got a certain number of contracts here uh 600 open interest uh last 440 uh and then you have to deduct if if commercials are both long and short and


they are and there's a reason these commercials a lot of them are the bullion banks that for instance you know when um when a customer when a a client of ours is making a large purchase of gold or silver we will lock in a price by buying or selling a Futures Contract and then uh we find the uh gold or silver and when we purchase the gold or silver we uh buy back or sell back the uh the Futures Contract at the same time and uh what that does is neutralize price fluctuations so uh the price can


uh go up or down by 10% in this during this time period and we can still make a 1% profit either way it doesn't matter whether you know if we uh quote you a certain price we're going to live up to that certain price whether gold goes up uh 10% and we have to buy it 10% higher the uh the Futures Contract will neutralize that we'll make a profit on the Futures Contract even though we're making a loss on the physical and so the industry uh a lot of the industry is uh in these trades and what we've just seen


lately is with this gold price rise up here we've seen the also note that the uh commitment of Traders report is like a week late on uh the the net position the the this uh that's a week late the gold price is not that comes up to today so as of a week ago that was increasing it probably kept increasing and so we are seeing something a little bit more live with those uh charts that you showed of the GLD outflows uh and the uh the position of the available short short selling shares now with what's what you see here


though when this reaches low levels that is when a big bull market can start we had fairly low levels here and we see this big price upswing uh if we go over to silver silver uh was actually at a commercial uh net long position right here and look at what happened it went from $18 up to $24 after it had been at that minimum uh and part of this is just caused by how many people are buying and how many people are selling and the position that the commercials have to be in because of the buying and selling uh and so uh we are


now at a position where there is room for a price pullback but just remember that is an opportunity it's not some you know it's it's short-term price noise the in the long term gold and silver are I believe headed for the moon compared to most other assets and uh I think that uh the uh that a lot of these people that are gambling with um day trading and so on when you're in in Futures you're leveraged and you're in paper gold and silver and there might be 300 people that actually think they own the


same ounce of silver or gold and when you you know there are times when it reaches uh that that number of paper ounces being traded on top of the actual physical that's in the vaults that's deliverable uh and when you're uh dealing with GLD uh if if somebody can sell it short it means that not all of the ounces that have been sold exist and so uh I steer clear of these things because I think that there is plenty of gains to made that you don't need to introduce leverage to win yeah absolutely and and to your


point there's there's one other thing that sometimes people Overlook which is for GLD or SLV uh the management fees actually come out of the precious metals so they sell a tiny bit of gold or a tiny bit of silver to pay management fees so even though when the funds start it's backed one to one by the metal over time it drops down more and more so originally it was 100% about 20 years ago in 2004 uh now it's down to only about 94% and and that's going to continue so the the way the management


structure and the fee structure works is that the ETF is actually designed to go to zero in terms of how much gold it will eventually be backed by now that might take a couple hundred years but eventually all that gold will be used to pay for management fees over hundreds of years and there won't be any gold left yes exactly so yeah I steer clear of them but I do believe that something big might happen soon because of the I look at this indicator uh that we just went over the the uh shares being sold short


and the fees as sort of a leading indicator that uh there is something big about to happen in the precious metals sector and either this was caused by the the outflows uh or it's caused by more people going short and that would be the professional traders that sort of had have an inside glimpse of the future yeah well all I can say is we'll stay on top of it we'll keep doing our research and we'll uh we'll bring exciting updates to people as they unfold okay thanks a lot Alan yep thank


you Mike and thanks everyone for watching yes please like And subscribe thanks for watching but this is by no means the whole story if you want the full story including my free online only chapters and companion videos there's a wealth of information at GG Sr 21.com thanks