hi this is mike maloney and i've got jeff clark with me once again for a little bit of discussion on what's happening with the precious metals and the economy jeff how are you doing i'm doing great mike it's great to be back with you we got a lot of fun stuff and interesting stuff to talk about today but we want to start this video i understand with you uh saying a big thank you to all the people who wished you happy birthday yeah you know unbeknownst to me dan put out i believe a tweet


uh telling people that it was my birthday and asking them to make a short uh you know very short birthday wish for me uh you know a birthday video and uh it was just amazing um you know i um i went to an italian restaurant that i've found these amazing flavors at that i uh really like and i had eaten there the night before even and then i ate there uh last night as well so friday saturday and monday i ate at the same restaurant but um we went there with several people and then we came back to my


condominium here uh later and dan had two more presents for me a uh a jar of the original chi chi chili which is this awesome sauce that a friend of ours makes chi chi is her name and it's her grandmother's recipe and it's available on amazon and then also he had lined up just all these different tabs of one video after another after another after there were more than 30 of them it took close to an hour to watch them all and they were all between uh 30 seconds and uh two or three minutes


uh and it was just amazing i was blown away i want to say my heartfelt thanks to everybody that i couldn't believe uh how international it was and how it it cuts across all age groups there was uh one kid on there that was a very very young i have no idea how young but i mean uh um i i don't know four five something like that uh six and saying thank you uh i was just absolutely touched and amazed it was great yeah well from from myself and the whole gold silver staff and all your viewership mike happy


birthday where so thank you thanks for watching yeah 65 now i'm i'm on my 65th trip around the sun yeah there you go yeah very good okay well let's jump into some content here mike and get your reaction to some things and the article i wrote last week that i told you i was going to write the open letter to elon musk encouraging him to buy physical gold and not etfs and for those of you who haven't read that article there's a lot of uh good uh information in there not because i wrote it but it really is


a deep dive into why you want to buy physical and avoid paper products if at all possible we've talked a lot about that mike but the one thing i want to call your attention to is silver at the end of the article i outline how much silver tesla is going to need if they reach their goal of 20 in 2030 is producing 20 million evs that year they would need 31.45 million ounces of silver per year and that's just tesla's eevee you know production that doesn't count all the other eevee car companies that


doesn't count as energy businesses his uh aeronautic business and i had a little fun in that article and i outlined just how much he would have to spend to you know procure all this product if he bought it now at 25 silver it would be 786 million dollars but if he waits till 2030 and silver say a hundred dollars and of course it could easily be higher than that it would be which i think it will be yeah right but if it's a hundred dollar silver now he's gonna have to spend 3.1 billion


dollars to procure that product just for tesla uh him meeting his goals and this is industry-wide uh mike the you know ev production and solar are gonna be the two biggest industrial uses of the silver by far it's going nowhere but up the demand for this and of course the price is eventually going to go up as well so mike what's your reaction to all that and what's your reaction to silver kind of stuck in this training range right now uh well the stuck in the trading range just shows that the strategy of buying


the etfs is a bad strategy uh it's supposed to take silver off of the exchanges and it did but one of the things that you can do with an etf is you can short it and when you short it the um the broker is basically uh creating a share or borrowing a share from somebody else that is owed back uh there isn't in other words if you buy if you go along and buy silver on an etf and then uh somebody else shorts it yours your ounces of silver may be borrowed there's the title to the ounces the


shares borrowed and loaned to somebody that then sells them to somebody else that is going long in the market so his purchase has been neutralized his purchase does not drive up the price because now two people basically have titles of the same ounce the short seller must buy it back some time or another and return it and that's one of the things that causes a short squeeze but what's been really interesting uh you know both um there's two of the etfs that have come out and changed their prospectus changed


their the the rules that they play by have been amended and they're warning people that uh the these this rush into silver can cause and you know it said in the original prospectus and i wrote this in my book i'm not quoting it exactly i don't think but it'll be pretty close that uh that they caution people that due to certain market illiquidity conditions the price of the eye shares and the price the price of silver may fall may diverge and the eye shares may fall so in other words silver can go to the moon


slv can can go to the ground uh that's just one thing but one of the things that uh you know your article didn't talk about is they just announced uh at tesla that they um are going to up their supercharger networks uh so that they can create 10 000 supercharger stalls per year they've already got 20 000 stalls it's the largest uh chain of electric charge stations on earth they cover all of europe all of north america uh some of the middle east some of china uh most of japan a lot of australia


so they're they're very very global and they've uh just created a line for manufacturing the superchargers in china and they all have the new battery that they've come out with so all of these superchargers are going to contain silver they also make battery packs uh so that we don't have to continuously build power plants because uh the regular grid the electric grid has to be able to meet peak demand so plants they actually turn on plants and turn off plants uh with the usage cycle during the day


there's there's uh we have to have all this extra capacity you put in battery packs and you don't have to build a new plant because you're charging them up during the low consumption hours and then releasing all of that energy in the high consumption hours and so they're making these massive battery storage uh facilities and all of this will create require silver along with tesla being one of the world's largest uh solar panel manufacturers solar panels and their new solar roof


and so um with this yes they should be buying silver now elon musk had had talked about uh putting a certain percentage of their assets into gold but what would be far more important for tesla is to remove silver from the market at low prices now and you know when you say a hundred bucks name something that only goes to double it's 1980 high can you name anything on the planet right now with with the exception of like computer chips something that's technology driven where we've developed


that technology during this time frame can you name like a commodity or any other thing that's selling it at a discount to its 1980 price you can't uh and this manipulation that they have done which is an extraordinary feat of controlling the price uh they've you know there's been this huge demand and rush into silver and yet the price was smashed down it really exposes this pretty much criminal manipulation and uh and but they they are losing control over it very slowly or silver would still be


four dollars and something per ounce and gold would be 250 dollars per ounce but the fact that silver was 50 bucks in 1980 it's only 27 today is like insane and so a hundred dollar price i think is just um incredibly underestimating where silver should go if you talk about 300 or 500 those are sort of realistic estimates i think in a blow off top peak and it may be far beyond that it all depends on where gold goes to and that depends on whether or not we have some sort of crisis right which we think is pretty much


inevitable here at some point brilliant article by the way jeff and if if everybody hasn't read that article already please go and read jeff's article it really points out why you should be staying away from these uh these funds and the very fact that they changed the rules and one of them basically says that uh this this squeeze can disrupt things and and cause uh the availability so they've developed a product where they're afraid to sell too much of it if you play it it might not work


[Laughter] very good yes for those that don't know we'll talk about it later but sop did change their perspectives here just recently and they acknowledge right up front that the price of their fund may not match the spot price of silver they changed the rules basically because of what happened in the market so that's just one of many reasons you want to be careful and probably avoid you know a paper representation of well it doesn't match the spot price you know i generated a chart


and sent it to you of uh the ishares slv divided by the price of silver and what it shows is that since its inception uh slv shares have lost almost eight percent of their value against silver and so what what that means is that you are far better off if you're a long i mean i wrote in my book if you want to buy if you're a day trader buy slv and gld you're going to probably be all right if you're a long-term investor if you're looking for protection and everything else the etfs


they're a derivative and you're exposing yourself to a whole bunch of other risks plus these hidden management fees that they take by reducing the value of each of your shares yes exactly well mike on the tweet of the day and this is from uh my mentor at casey research louis james who i really like and and still have a great relationship with he put out this tweet the other day that says whoa forget winner inflation is coming very bullish for all commodities and this chart is basically the money


supply for both the us and china in this chart you'll see the money supply for the us is in white but look at the money supply for china in red it has exploded much bigger than the us has mike this money printing this currency printing thing right is is a global phenomenon and i don't know how we avoid inflation at some point yes it's really going to to to matter right uh so michael anyway what's your reaction to uh louie's chart there well uh i'll try and keep it short but


you know when i was writing my book i came up with my own measurement of inflation and it's based on the fact that every unit of currency created has to go somewhere and one of the problems that we have with the way the government measures inflation's inflation is they're not measuring everything you have to measure the stock market because it inflates the stock market or it inflates savings if velocity is slowing down it means that people are saving the currency that's being created


so that sector gets inflated or groceries or this or that and it sloshes back and forth between these different sectors and so we have inflated savings and we've inflated the stock market we haven't seen a lot of retail inflation but it is coming and uh the the reason that china's growth in their currency supply so far outstrips the u.s uh growth is because that's part of manipulating exchange rates if they want to hold down the uh value of the renminbi as their economy grows so that they can


sell more exports than they have imports and have this trade imbalance which by the way allows when if if they buy us treasuries to uh neutralize the uh which they used to do uh if they buy us treasuries to neutralize uh the inflation that would be caused by the the exchange rate uh changes that would be caused by uh this trade imbalance uh when they do that it allows the us to run these big huge bus ship budget deficits now they've stopped uh the buying but they're they're doing this printing so they're doing it at the


expense of their own population the raging inflation that's happening in china uh so um uh where this all ends it is a total disaster for pretty much anything and anybody that isn't connected with precious metals and perhaps cryptocurrencies in my opinion right right it could be uh quite traumatic at some point yeah everything does have to come back as inflation sometimes you can't create all of these units of currency without seeing inflation in retail prices eventually it's just that right


now it's like charged up other bat we were talking about batteries a little while ago you charge up a battery you can release the energy later that's what happens when you inflate savings accounts and you inflate the stock markets those assets can then be sold and purchase real goods later on so i would look i would look for hard assets to start inflating later on right now there if you compare the growth of hard assets to the growth of the all the paper assets uh then the hard assets are actually


deflating at the moment compared to the growth of the currency supply and so they are a bargain and uh and that will reverse this always does throughout history there there isn't any exception you can't create a whole bunch of currency without consequences and they're not looking at all of the cons potential consequences understatement of the year exactly like well on do chart of the day and this is from garrett gogan he says pslv is spiking higher sov is lagging silver stocks are up


across the board the comex price is becoming irrelevant physical silver demand is driving prices now and in his chart you'll see he has the price of slv here in green and the price of psov in white psob is the sprott physical silver trust um and you can see there has been a price separation now i will point out mike that pslb is a closed-end fund and so settlement can impact the price of that fund and that's what we're seeing right now it's rising more than the price of slv is so but mike what's your well one of


the things that you have to um when you when you said it's a closed-down fund a lot of people don't know what that means uh and what it means is instead of like slv where you can buy an unlimited number of shares and then they go out and find the silver to match those shares afterwards which they were unable to do on on one of those days with a big big volume they were unable to find the equivalent so there was a period of time where slv did not have the silver to match the shares but so slv


open end fund sells as many shares as the public demands and then they go and find the silver to back up the shares uh pslv the sprott fund is a closed-end fund where they have a certain amount of silver and the shares trade at either a net a premium or discount to net asset value and what was amazing today i was on their site and it was still selling at a very slight discount to net asset value um and so uh then when it goes too high they can go out and buy more shares uh and more ounces and add that up and the


price uh the price comes down but you've got more ounces backing up each share so anyway i trust the sprott fund a lot more than i trust uh slv and gld uh however it's still better you know i don't know can you short uh the sprott funds i'm not sure um but uh if if somebody has to buy an exchange-traded fund those are the ones that i would recommend uh and uh other than that uh it's better to buy physical and when you look at the degradation that you have over time in the price of slv


uh taking silver off the market the best way to do it is to buy physical in a storage account that's your own storage account where it's not being held in the same vaults that the commodities exchange and slv and uh all of these other big funds can do some accounting hanky-panky with right exactly uh bottom line is still better to hold the metal in your hand in your possession under your control some way like that then a paper representation of the real thing so well on to viewer comments here mike this is from


magixfx if i'm saying it right he says aren't dealers ordering many thousands of ounces and still selling to retail where's the shortage mike well you know one of the things if you look on our site where there's not very very many silver products because we just won't i don't know how to put it but we're not going to rape our customers we can get almost anything at some extraordinary spread where it's selling way way over spot and we just won't do that and so


we have a more limited selection than the other dealers right now there is a shortage and what that that has done is caused the spreads to go astronomical supply and demand will always be in equilibrium based on price and right now it's very tough for all of the dealers to source the precious metals but you can at some price or another and you're seeing the price of physical diverge from the price of the the paper price on the commodity exchange which controls the price of all these etfs and stuff


so uh physical right now is har is hard to come by the shortage is there uh you just don't see it but you know if if you look at our site you're going to see that there's certain products that you can't buy right now simply because uh we're not going to rip you off by charging you these extraordinary spreads over spot yes good point and and supply will come back we will be able to add more products back to the site premiums will hopefully soften here and that'll be your q when supply is


back and premiums are a little lower you want to jump on it because uh this is going to happen again and it's probably going to happen worse next time we're carrying the products that have the lowest spread and somebody could always buy those for now and get exposure to silver like buy 100 ounce bars get exposure to silver and then trade those later for eagles if that's what you want or something else that's currently selling at some astronomical spread and you will do much better right good


point um 100 ounce silver bars are available on our site right now as you and i talk and that is actually our second most popular product so those are still available if you want to order those right now so well mike as we wrap this video up i'll let you read the uh quote of the day but uh everyone remember if you have not read mike's book yet please download it he's giving it away for free you can read it for free and it's still just as pertinent today as it was uh when it was written yet


because the crisis that this uh book talks about that's being set up hasn't happened yet and so that's why the book is still relevant so download it for free the links below the video here so so mike uh we'll close out this video with you okay the quote the the meme of the day the quote of the day i want to make a comment on it first i was reading an article on foundation for economic education which is a phenomenal site everybody should go there and read some of their articles and one of the this one article talked


about uh the how ineffective congress is and that there were uh 8 820 bills introduced last year and only 105 of them passed and i put that in a a percentage calculator and they're they're able to pass about 1.2 percent of the bills and laws that are introduced and actually i think this is great because you don't want them changing the rules all the time this is the one one thing that's been happening that's been very bad it's like when you're trying to build a business


or uh or work or anything else where you're trying to create wealth and take care of your families and so on when the rules are constantly changing it's like trying to build a house on shifting sand but anyway this is an old quote from ronald reagan to say that congress is spending like drunken sailors is an insult to drunken sailors [Music] [Laughter] and i want to thank everybody for watching and uh please like the video give it that thumbs up subscribe to the channel and thank you jeff we'll see you next time


thank you mike we'll see you next time