DOGE to Expose Real Gold Price (Uncut) 02-21-2025

DOGE to Expose Real Gold Price – LFTV Ep 211

If the audit uncovers anything close to what we think, then we could see a hard weekend revaluation price reset. They now have to keep printing or we crash. We’ve got this ticking time bomb.

Talking gold with the one and only Andrew Maguire. Welcome to Live from the Vault. Welcome to Live from the Vault.

My name is Shane Moran and I’m thrilled to be your host for this episode. From the entire Live from the Vault team around the globe, we extend our heartfelt thanks for your unwavering support. As you might imagine, this community is expanding week by week and we couldn’t be more excited.

Welcome to all of our first-time viewers as well. We’re in the midst of historic times here, as we’ll be talking about again today. We’ve got the one and only Andrew Maguire in the vault, our very own precious metals expert, whistleblower, and he’s here because he’s talking gold.

So buckle up. This is going to be an incredible episode. Now, Live from the Vault brings you weekly exclusive insights and updates you simply won’t find anywhere else.

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So hit that like button right now. And without further ado, let’s cross over to the UK for some in-depth gold talk with the one and only Andrew Maguire. All right now, Andrew, so much has happened since our last episode recorded only 2 weeks ago.

It seems like it’s been a lot longer than 2 weeks ago, but back on the February 5th, what is of particular note, as I remember, is that your estimate that a gold revaluation was imminent and how this would force an unwanted audit of the US Treasury gold. And it’s now mainstream, it’s all over the media. Let’s talk about this.

You know about this whole revaluation thing, it kind of went viral and it really was instigated when the industry apologist, gold-hating Financial Times, they suddenly injected the idea that the newly appointed US Treasury Secretary, Scott Besant, may be considering such a US gold price revaluation. Now, this was clearly something that had to be put in and it was something that couldn’t be hidden. And this discussion intensified after Besant stood in Trump’s office right on video and pledged to monetize the asset side of the US balance sheet.

So, and that was really, it’s kind of to focus on assets as much as liabilities was kind of the spin, and while also promising to lower 10-year Treasury yields. And since the gold revaluation mantra has now gone fully mainstream, underscored last week with a Bloomberg intelligence interview with the Bank of America revealing that this gold revaluation process is in underway. Now, this is, these are all, these are planted to actually create a backdoor now.

And I’m not talking about a rinse here, we’re talking about the necessity to revalue. And there’s, we will explain how this, why and how shortly, but now currently, if you think about it, Treasury gold is valued currently at 42 bucks. And okay, so if we revalued at today’s price, well, actually we were above 2,900, we’ve just made all time highs again, despite attempts to knock it back down.

So, even if you picked arbitrarily 2,900, that would inject around 900 billion into the Treasury general account, that would be via repurchase agreement. Now, the suggestion as this may offset the need to issue quite so many Treasury bonds this year, so on from a high level, but if planning to issue long-term gold-backed bonds, well, why not 3,000 or 5,000? So, you know, why not is the question. And as we looked at in our last episode, the embedded paper to physical exchange for physical spreads, what they do is telegraph the US as represented by cash settle COMEX market, that is, has to become Basel III NSFR compliant, meaning it has to be physically backed by the 1st of July deadline to comply, or it’s going to have to fold one way and it’s not going to fold.

Now, the paper to physical EFP spreads have expanded because shorts, well, simply they’re unwinding their bets. And while this should be allowed to kind of play out, this undersupply is too large to square at current prices. It’s pretty much that simple.

In fact, with shorts competing to buy back underwater bullion leases, now bear in mind you borrow gold or you lend out gold, you get a return, somebody buys that gold and sells it and tries to, obviously, their incentive is for it to not to rise from that point. But they’re going to have to, because it’s risen, they’re going to have to buy back these underwater bullion leases against global central banks and fresh as yet untapped institutional gold buying that’s coming in. These are people that have never bought gold before, which has expanded.

And as this open interest comes in, people say, oh, well, yeah, hang on. Look at that speculator open interest. That’s easy to rinse out.

I’m sorry. No, they’re coming in. They’ve never been in before.

This is not rinsable. This is what we call the sticky category of speculator long, speculator open interest. You can pull bids, you can play games.

They’re not selling, they’re buying. In fact, what they’re doing is buying is just coming in. And we’re talking about since the last two to three weeks, this fresh money, looking at the price of gold, looking at their other investments, noting it’s first here.

And it’s these spreads that has drawn their attention. Otherwise, it might have just continued under the radar. And most liquidity providers that face them and us assess it’s going to require $3,500 to $5,000 gold price to bring enough gold to market just to bring the LBMA and CME into Basel III compliance.

And so really to answer a slew of fresh subscriber questions this week, I’m going to expand on how an impossible to avoid global gold price revaluation is expected to actually roll out. And with Senator calls now for Doge to conduct a full audit of Treasury gold and empirical evidence of multiple ownership claims on the Fed managed portion of the US Treasury gold. When it’s revealed this mismanagement of gold assets may end the Fed as we know it.

And at what price this revaluation is likely to be anchored into the various scenarios that we look at. Now, but blindsided by the race to bring physical gold into the US, what it does is expose the LBMA CME physical delivery default, which is occurring under our noses in London. And not even the Bank of England can address this supply enough bullion to address this.

Instead, paper gold warrants for future delivery are being issued instead of bullion in an attempt to buy time to deliver. In fact, these paper gold contracts are coming at a discount because nobody wants them anyway, because they are not going to get delivery at them. However, because these are forward contracts, if it was an FX contract, it’d be deliverable.

There’s a lot of gaming going on here. However, this has driven what’s all this has done is driven an even larger race to buy bullion before gold is revalued. Now, Andrew, before we started recording today, you drew our attention to the desperate LBMA attempt to try to play down the physical supply shortages.

They presented a video that attempted to spin the idea that these shortages were temporary and purely tariff related or tariff rumor related. But just as we looked at last time, we know that these shortages are the results of years of Western gold flowing from the east or to the east from the west here, which has left no bullion to meet the unexpected US demand. However, the video that they put together generated quite a few questions.

Can we start right here? Yes. And here is the link. So we’re putting that link in, obviously, in this episode here.

And what it does, it parachutes you into this cobbled together, globally blinkered, in-house, apologist generated video. So there we are. So you can you can look at it yourself now.

But basically, I mean, as I say, if you can be even bothered to endure a wasted hour of disingenuous spin, just trying to justify these 12 week delivery delays up to 12 week delivery delays to obtain bullion, they were simply caused by the requirement to just remelt some 400 ounce bars of which there was lots of these standard bars that are in London. They had to be remelted into 100 ounce comex standards. And this was really the sole cause of diverting refiner’s capacity.

Hence, oh, it’s just short term refinery backlogs, essentially. Well, and then, of course, this is these things are sort of orchestrated exactly five days later. Last Friday, it was no coincidence.

We evidenced a rigged a rigged sell off of the basically of a 75 dollar sell off following the highest ever spot gold fix, which was at twenty nine thirty eight oh five. So they waited till it affixed in central bank demand, then pulled the bids and and and tanked it seventy five bucks. However, these desperate measures are not fooling everyone.

And it was definitely coordinated. And least of all, it’s not fooling the central banks. Hence, the paper gap got quickly closed on that.

And we’re talking about it this morning is Wednesday, the 19th, and it got closed completely. So the gap down got closed. Why? Asia buys and the West sells, but Asia buys more than the West sells.

So the elephant in the room is that the London physical trade is just no longer recognized as the globally centralized physical trading hub that it was before Basel three NSFL compliance enabled decentralized physical T plus one delivery, meaning if you buy foreign exchange gold, it is T plus one next day deliverable has to be backed under these Basel three standards. So so basically, before Basel three was instigated, they could just keep on doing this, but it’s now become decentralized. And and so it’s no longer in their sticky little hands.

And so really, this then enables gold, Western gold orders and largely Western gold orders to directly flow into physically settled brick centric global exchanges. Now, no matter which way you spin it, global shortages are evidencing bullion banks racing to cover Comex shorts. And despite the fact that the 400 ounce standard bars of equal nine nine five purity can be settled on the Comex without actually ever leaving London, nothing in this presentation explains how spiked higher lease rates to lend gold are actually not incentivizing fresh gold leasing.

There is a race to repay existing leases. Nobody wants to take on this sort of risk. And notwithstanding fresh institutional inflows into the eligible category of the Comex, i.e. it’s not tradable.

It is in it is in your name at the Comex. It’s not traded or into privately vaulted physical and also into exchange traded fund gold. I mean, a lot of funds can’t really deal in physical, but they can buy ETF.

So it’s forcing. And what they’re doing is seeking to richly to gain exposure to the only other alternative first year asset class, which is gold. And of course, all of this is happening outside the CME LBMA bubble.

Now, central bank sovereign physical gold buying is increasingly being sourced directly from producers and refiners with the bulk of of fiat foreign exchange gold, i.e. unbacked gold. These physics gold physical conversions are actually flowing directly into bricks facing exchange exchanges and alchemized. Furthermore, given that central bank sovereign monetary gold purchases do not require reporting, an increasing percentage of these Western gold outflows are settled outside of the swift messaging protocol.

They don’t even get recorded. In fact, to escape sanctions and freshly instigated tariffs, a large barter trade is evolving into which no better fungible barter benchmark is than gold. What else could you benchmark better? And the point we’re underscoring is that U.S. gold stocks are being openly targeted and New York dealers are face facing the realization that as fast as they are, they air freight Bank of England LBMA gold in it’s being freighted right back out east almost as fast.

In other words, the cash settled COMEX exchange for physical mechanism has become a gateway to obtaining undervalued U.S. gold supply, just as New York dealers are being short squeezed against their asymmetrically imbalanced short futures positions where they’ve taken a short position essentially against a long holding, but they’ve sold way more shorts than they held in physical form. So that’s simple as that. But every central bank, sovereign and institutional gold buyer understands these dynamics and are actively capitalizing on buying into the Fed Bank of England driven paper market attempts to trick out.

Really, all they’re doing is tricking out a shrinking volume of tailgating paper market naked, naked long paper market for us. So in other words, yeah, you see a lot of momentum, the skies, and they will simply see that they’ll chase momentum. And but they’re reasonable.

So really, all that’s happening is just these guys that are getting rinsed. Sometimes an illustration is best. And this is exactly and we captured it here.

And actually, we’re just recording this just for the record on Wednesday between the pit open and the PM fix. So we this is exactly what we witnessed out of the blue at the pit opening last Friday. And despite multiple efforts to try and call a technical top in gold, evidencing speculator money actually moving to the sidelines.

But we also saw several technical traders dutifully reporting they’ve gone short after after Friday’s bid pulled gold rinse. And it but it didn’t go unnoticed by physical market participants that spot gold quickly recovered as soon as Asia came in on Monday morning, illustrating its strong physical demand that is calling the action. And spot gold is now fixed above 2900 for its 10th time out of the last 13 fixes.

And and it’ll be 14 out of four. Sorry, it’ll be 11th time out of 14 at the PM fix, because this is where the round number equivalent is. And what it does is illustrate no matter how much paper gold is thrown at the 99.9% paper subtle COMEX market, its strong physical demand that is now calling the action.

And this is just Wednesday. And notice from the pit open all the way to the market close was we actually evidenced 130,000 contracts. That is over 400 tons of paper bullion successfully cleaned out.

And what it did was actually get rid of the fresh speculator longs added after the first fix on the 10th, which was here, the first fix above 2900. It got rid of all of them, basically just rinse them all out, which is actually constructive. So into this wash and rinse process, really gold has already recovered and is being heavily purchased by central banks, sovereigns and in fresh institutional buyers who really care not about twenty nine hundred, three thousand or thirty five hundred.

They want gold. But note, Asia buys the West sells. It’s the same mantra that we’ve been watching for quite some time.

It’s tiring and it’s about to stop. Now, with officials severely on the back foot, we don’t count out more bid pulled attempts, which we just looked at to try and chart painted top. However, each of these froth rinses brings in offsetting fresh gold investment demand, assisting in carving out higher stair steps, just like we evidenced after the Shanghai Futures Exchange launched back here.

And I always bring come back to this chart because it illustrates we saw about an eight hundred buck rally. Then it settled six hundred bucks higher by the end of the year. And this is why we stopped.

We actually when we we actually drew this similar circle saying this is the same sort of input that we saw when the Shanghai Futures Exchange launched. This is another huge rally in the making. And we’ll keep this chart regularly to bring so that to provide good context.

And if you remember when this Shanghai Futures Exchange launched, it also blindsided the paper market actors who were at the time spinning that shortages were short term in nature. We all know how that turned out for them. Daily phone calls around all the desks continue to evidence first tier liquidity providers reporting the real action is physically driven and that there is insufficient bullion being made available to deliver at current prices with Asian facing physical gold and silver demand is consistently overrunning available supply.

So while shorter term, we always expect some healthy paper market consolidations. None of these wash and rinse cycles serve to add any bullion to meet supply. And if anything, fresh dip buying demand will tighten supply even further.

So what we’re witnessing is this Asia, the West sells, Asia buys, West sells is serving to drain dwindling paper market liquidity into the globally settled physical markets. And that’s exactly what we’re seeing in silver too. Again, Asia buys, West sells, West sells, Asia buys.

Okay, now, Andrew, you had mentioned some of these so-called bullion flows from London to New York are not physical. Can you remind us of how this can work? Yeah, what’s flying under the radar is that inter-similar bullion supply shortfalls during COVID, and you’ll remember this, Shane, from our March 2020 episodes, the LBMA and the CME had sanctioned the launch of the 400 ounce Loco London LBMA bullion bars contract that could be settled against COMEX contracts without shipping it. And these were called enhanced delivery contracts.

They still exist. And these GC4 contracts as they’re called, and they can comprise of a mixture of stuff, it can be a 100 ounce bar with three one kilogram bars, or one accumulated certificate of exchange, which are called ACEs, where each 400 ounce bar is equivalent to four ACEs. So essentially, the ACEs are used for delivery, just like a regular warrant is issued against 100 ounce bars or kilogram bars.

But here’s the rub, here’s the rub with that, is that the rule change meant that 400 ounce bars can remain in vaults in London, still counted as there, while ownership is actually transferred to New York, enabling spot and futures exchange for physical EFPs to converge. So spreads to converge because it looks like, well, hang on, there’s a better balance than you think. No, this is paper.

So what is happening is simply the buyer receives an electronic warrant, not gold in their inventory, while the seller receives an electronic transfer of funds. Well, the problem is that this time, these enhanced delivery contracts are insufficient to close this paper to physical EFP spread, because there’s just not enough unspoken for physical free float to bring to market at current prices to meet this demand, hence the spiking high lease rates. And even then, no one wants to take that offer.

Bottom line, the LBMA attempts to point how very little 400 ounce, which is one of the points they make in the video, well, there’s not much bullion that ever flowed out of the vaults. No sugar, Sherlock. They’re saying it’s not leaving, so there can’t be a problem.

But what it deliberately glosses over is the fact that these local London 400 ounce bars can remain in vaults in London while ownership is transferred. That is not known. It is not discussed.

And by the way, those reports do not even disclose the flywheeling of the less than 14 day forwards. We talked about this multiple times. You can actually keep rolling a 14 day forward without registering it anyway.

We even went to the Houses of Parliament and talked about this as an issue. And it enables exactly the same as these other contracts do, where you really don’t have to move the physical. It’s just a bunch of paper shuffling around.

Now, here’s a link. These shuffling enhanced delivery contracts currently evidence around, well, currently 125 tons of eligible in the JP Morgan vaults. I think it was 58 tons in the Brinks vault, 16 tons at HFDC.

I mean, look, this is way under what’s needed to square naked short bets against physical gold, especially when you add in all the forward stuff that’s going on. Now, worse, into the scramble to repay gold leases, the China National Financial Regulatory Administration, which is the NFRA, began stepping up their gold purchases. Nice timing.

They initiated a program aimed at integrating insurance funds into gold investments. Now, this was the next strategic. This is as powerful, if not more powerful than when the Shanghai Futures Exchange launched.

What it does, I mean, these insurance funds, allowing these insurance funds into gold investments, it opens up a potential $1 trillion of investment potential, close to. And this provides more evidence that China is just actively backing its currency with gold. This fresh gold demand caught the attention of some very large hedge funds, banks, and family offices looking to diversify into gold.

And this was the trigger, figuring this is the way to move forward. You need to diversify into gold. And this was subjectively backed up on Friday, last Friday on our Bloomberg terminal, reporting that the Bank of America had sent out an advisory to its clients to buy gold with a target price of $3,500.

And a key takeaway from this advisory, and actually I’ve got a quote here, just because I don’t want to misquote it. For gold to hit $3,500, investment demand would need to rise 10%. And China, they refer to China’s incentive to let insurers invest in gold.

That’s talking about potential 300 tons of additional demand, which would be about 6.5% of annual global market. So with so few funds as yet invested into gold and starting to come in, it would be pretty easy for their projected residual 3.5 investment potential to be fulfilled to make it 10%. However, this fresh demand competes with the necessity for the Fed and the UK to buy back naked short bets against gold ahead of an inevitable gold price revaluation, adding validity to our current liquidity projections of between 3,500 and 5,000 gold.

Now, Andrew, that leads nicely into your anticipation that gold, that there’s a gold price revaluation that’s imminent. Now, over the last few months, you’ve been warning that this will lead to an audit of the U.S. Treasury gold, which would have to be completed ahead of the U.S. COMEX Basel III compliance being enforced on July of 2025. So can you bring us up to speed on what you’ve uncovered here? Yeah, Shane, and as we’re all too well aware, a buy stealth gold price revaluation is already well underway.

However, word is that Musk’s doge plans to audit the Fed would have to include the percentage of gold that the Fed manages on behalf of the U.S. Treasury. Now, empirical evidence points to rehypothecation, triple ownership, double ownership, triple, who knows how many times these, in fact, if we go all the way back to Brown’s bottom when gold was around about 250 bucks, it was being leased out at that price and disappearing into the marketplace. So you’re talking here about a long standing rehypothecation of these reserves.

And if the audit uncovers anything close to what we think, then we could see a hard weekend revaluation price reset that is possible. Now, we did actually talk about how that would roll out in the last couple of episodes. For some background, Gatter kindly drew attention to Daniel Oliver’s Miracashen Research publication.

This is an excellent gold revaluation analysis and we are linking it. It is well worth a read. It’s on the Gatter website, but we’ll put up the link.

Now, here’s some, I just want to say, because I looked at the whole, it’s a long document, but I just the pertinent part for talking about the revaluation part, there’s some interesting takeaways from this piece. And I think, again, I don’t want to misquote, but basically just taken from this, the governor will not willingly allow the Fed to collapse. In attacking the Fed, the market must consider the treasury gold, whatever the legal distinction between treasuries and Feds balance sheets.

Just because the treasury will instinctively defend the Fed does not mean it will not eventually surrender to the market. However, indeed, if defending the Fed allows Congress to continue to propagate spending, then like the gold pool in the 1970s, the treasury efforts will unleash the financial forces that will overwhelm it. Now, this is when legal distinction between Fed and treasury and treasury and owning gold versus owning a claim on gold will manifest itself.

The US has already allowed two precious previous central banks to dissolve. Why not shutter a third if supporting it becomes too costly to maintain? Good question. And what a wonderfully populist move it would be to allow the Fed to fail.

Now, the US could issue a currency directly in the form of a gold-backed treasury note. Does this ring anywhere to what is being discussed right now? A gold-backed treasury note and allow the Federal Reserve note to disappear. Well, maybe not fully disappear, but it certainly could back a long-dated one.

But then they go on to say the indebted will be relieved, obligations to foreigners will be wiped out, wealth will be redistributed towards the productive and away from legacy holders of claims on assets. And the debt system that enriches the few will disintegrate. A modern jubilee.

Just one more concluding paragraph. This is more or less what an uncontrolled unwind of the dollar system would look like. Perhaps not a terrible outcome for a populist like Trump, though it would come with much risk and collateral damage, such as the end of the US empire and exorbitant privileges.

These are all good points. However, if we think about it, the talk of monetizing US treasury gold is backed up by well-connected first-tier liquidity providers. And the necessary audit to do so will expose the full degree of how much the Fed is on hook for double ownership claims.

Which, although it’s a long shot, this may ultimately provide Trump leverage to end the Fed. We all know that that was a a goal which seems an impossible goal, but if you’ve got corruption, if you’ve got mismanagement, there’s leverage. Whichever way you cut it though, if the requirement to repay all of these deeply underwater gold leases, loans, swaps, would have to be concluded by the 1st of July, which is the latest date Basel III NSFR standards have to be adopted, there’s only in these paper bets that infest this 8,100 tons of US gold reserves and related non-compliant Bank of England gold loans, they’ll have to be bought back at full market price.

Hence, the reason it’s going to have to be revalued higher. Ahead, what would be ahead of an inevitable gold price reset. So while the Fed has hidden beneath trillions of dollars of paper market promises that are backed with paper, backed US treasury derivatives, the problem they are now experiencing is that there’s a shortage of physical supply at current prices.

Which is worsening the run on these gold derivatives as lenders demand borrowers buy back these bets to return them the bullion that they lent them. The trouble is the bullion is simply not there, which is triggering a race to buy this gold back into an exponentially rising market price. In turn, it’s drying up the offer to even sell gold, risking a more severe bid only short covering rally.

That even rising lease returns is not incentivizing lenders to double down on these bets and defer prior delivery obligations by just keeping on adding more leases. At best estimate, the equilibrium price is $3,500 to $5,000. All right, Andrew, just as you predicted in our very first episode in 2025, that’s the episode back in January.

All the pieces of the puzzle are finally coming together and it amazes me how few people understand that despite gold making all time highs again and again, even today, all time high, it’s still grossly undervalued. Now for our new subscribers and for the Live from the Vault community members, can you encapsulate why gold is so undervalued even at these prices? Absolutely, Shane. Actually, it’s really quite straightforward because gold used to trade as a foreign exchange cross against the dollar.

So the gold market has historically been manipulated by the United States to maintain the dollar’s dominance in global reserves. So namely keeping gold financial reliance on the debt-backed US Treasury securities. It was competing.

However, in a nutshell, and as we’ve been following for two years now, all this changed on the 1st of January, 2023, when the Bank of International Settlements reclassified gold as a competing first-year asset class. For the first time in history, gold challenged the dollar’s over 50-year exorbitant privilege, providing global central banks a sufficiently liquid alternative dollar investment vehicle restricting the Fed’s ability to fund its growing budget deficits. And this was the exact point the European Global South facing Bank of International Settlements short-covered the last remaining 500 tonnes right there of accrued gold swaps and leases, leaving the US and the UK central banks as the only remaining central bank trying to cap gold against the dollar into continuing efforts to tamp down a rising gold price rivaling the US dollar.

Up until the 1st of January, 2023, Basel III compliance spot FX gold had traded on an unallocated cash settle basis and, as with every other foreign exchange cross, long or short positions could be cash settled amongst the LBA market-making bullion banks with only a tiny percentage of these hundreds of tonnes of foreign exchange gold traded every day ever physically delivered. And the reason the remaining two central banks, which is the Fed, the Bank of England, have not yet been able to comply with freshly instigated global Basel III NSFR structure, physically backed structure, where all FX gold positions have to be physically backed basically, is because 50 years, over 50 years of accrued price suppression, which required central bank physical gold to be borrowed and sold into the marketplace, has been scooped up by global facing central banks on a one-way journey out of Western exchanges, never to return. It’s gone.

Worse, historically, instead of buying back the gold at a higher price and repaying these leases on a timely basis, it was common practice just to double down, borrow more central bank bullion in the hope of swamping the market with enough bullion to rig buying back lower. And you could do that before China came in and said, no way, baby, we’ll take it. However, every ounce they sold into the market has completely disappeared.

And as we highlighted in granular detail in our last episode, these Bank of International Settlement leases had to be repaid to the Bank of International Settlements at ever higher prices. But there was no way of buying enough bullion to repay 50 years of accrued, severely rehypothecated US and related Bank of England gold leases without triggering this revaluation event. Now, look, no one knows the degree of rehypothecation relating to this any 100 tons of US gold.

People say, is it even there? Well, it’s probably there, but who really owns it? That’s the question. Therefore, it’s not possible to estimate how much gold has to be bought back at market to repay these double ownership, triple ownership, quadruple ownership positions. And of course, there was no audit since the 70s.

So how does anyone know? One way or the other, unprecedented paper to physical exchange for physical spreads have exposed the paper to gold abyss. And the offer price to sell real physical gold will have to rise to an equilibrium level significantly higher than at current paper diluted prices. There’s a massive gap to fill.

However, in reality, as every central bank sovereign and institutional knows, trader knows, the massive paper gold to physical gold imbalance is exposed by these up to 12-week refinery delays, defaults there, defaults. And even an offer of 10% lease rates to borrow central bank gold isn’t incentivizing anyone to take that trade. Look, not even the ability to employ these GC4 contracts and forward promises allowing double ownership of local London bullion to remain in the vaults has adequately closed these EFP spreads.

Yes, they’ve closed a bit, but there’s a huge gap to fill. And if this was just localized between the LBM and CME, and you didn’t have a global market sucking this physical out, then the paper to physical abyss could be papered over long enough to allow maybe a 10, 12-week, 400-ounce kilobar refinery backlog to catch up. And such is the spin from industry apologists.

However, their Western-blinked assumptions that dealers standing for delivery in New York will actually ultimately end up with an imbalanced oversupply, which is when they’re trying to spin, there’ll be way too much gold there, and that they’ll be able to cash settle this imbalance against an undersupplied London. This is disingenuous, and it is just historically ridiculous, notwithstanding that central bank demand is evidencing global bullion flowing east. The reason we’re seeing refiner backlogs for 100-ounce bars versus paper settlement is they need to ship these bars to New York to cover the shorts ahead of the fast approaching.

I mean, think about it, 1st of July, Basel III deadline, that’s not long when you’ve got this kind of a hole to fill. And obviously, US markets have to comply at this point. Hence, all the remaining asymmetrically imbalanced, non-compliant COMEX shorts that are not fully hedging, fully compliant foreign exchange structures that are deliverable, these shorts have to be covered.

And into this by stealth, de-dollarizing effect, the more global central banks that back their individual foreign exchange currencies with gold, the less dependence they have on the dollar as a means of exchange. And we’ve looked at this before, even if you don’t have a formalized BRICS currency exchange, and believe me, that is not dead. Aside from that, the more an individual central bank backs its fiat foreign exchange currency with gold, the higher up the FX league exchange table they move with the valuation of their currency, what it will buy.

Notwithstanding sanctions, tariffs and swift and dollar confiscation, de-dollarizing risky risking drivers forcing people to basically buy gold and silver and swap their dollars or not use dollars because of these issues, the highest per GDP percentage gold back BRICS currencies are China and Russia. So a lot of non-dollar barter trade between nations are valued by anchoring these foreign exchange trade by buying the yuan or the ruble. And then by using these benchmarks to value non-dollar denominated commodity trades and investments in each other’s currencies.

So to add insult to injury, there’s talk of Musk joining the campaign for sound money. Wouldn’t that be cool? And by the way, just as a little note here, Goldman Sachs came out a couple of days ago, Bloomberg, and they’re all over Bloomberg. Yeah, 3300 gold is where we would see it this year.

All right, Andrew. And if you’re seeing that in gold, what the heck are you seeing in silver? Yeah, yeah, I think, Shane, last week’s Live from the Vault, Peter Kraft’s silver episode. You know what? He does an excellent job of summing up where silver is in the medium and the longer term and why he’s poised for a significant rally.

I think we should put a link in because that was really, really good if you missed it. Peter sees 35 bucks in silver, you know, I’m talking about short term, based upon just based upon the overhang of short interest to massive supply deficits. Now, the majority of liquidity providers that we face at the moment are indicating the next pause will be 38 bucks.

Now, Bloomberg is now raising the odds of silver moving higher to saying, keep an eye on silver as it starts to pick up versus gold. That’s hardly an incentive to double down on a silver price suppression, is it? So here’s the link for that. And for the record, shorter term, despite last week’s bid pulled sell event, no technical damage was done in silver or gold for that matter, into what is perceived to have resulted in just a simple gap close.

And as we discussed in our last episode, the cartel’s breakpoint is widely considered to be about 35 bucks, which is kind of Peter’s level where we might see a pause, which would easily though, if it breaches that, if it was run through beyond that, it’s going to trigger a bid only short covering spree that will obliterate the synthetic ratio bubble, which is currently at a ludicrous 80 to one, which is ludicrous. Now, silver has been lagging gold, but shortages in silver are even more extreme, especially as refiners are deferring orders for silver so as to focus on refining more profitable gold orders at maximum capacity. So, you know, no, thank you.

We’ll just carry on with what we’re doing more profitably. What this means is that they’re only taking forward locked in foreign exchange orders for silver. So you can go and buy an FX spot order, and these will ultimately be put through for delivery.

So you can lock yourself in. And so basically, we kind of discussed how that works. So essentially, as with monetary gold, even though silver is not NSFR compliant, when you lock in into a monetary FX silver price, it’s a foreign exchange price that is indexed at that price.

So as I say, even if silver rises to 50 bucks, for example, you’re still hedged at the price you bought it for. And of course, you’re happy to take delivery. So so while shorter term, silver is far more inversely correlated to the stronger dollar.

And you see where you see gold rising with the dollar. And sometimes you see silver to rising with the dollar as a risk of trade. It is far more inversely correlated.

But the underlying shortages into a free float that’s below threshold levels, evidence is silver coiling for a very large catch up move. Now further draining available supply, the expanded exchange of physical premiums have made air freight to the US extremely possible and extremely attractive. Further sucking out supply out of London.

So the aggregate liquidity provider estimate is that upcoming physically driven shorts, the short squeeze that will be upcoming inevitable, short squeeze that will be upcoming will ultimately close the ratio gap to where it was in 2011 at 33 to one. Now, it may be 36, but it’s somewhere in the 30s, which would currently at 33 to one that would currently value silver about 90 or 100 bucks. But just think how a gold price revaluation is going to impact related silver liquidity providers anticipate a range of between 50 and $200 an ounce.

Once gold breaks out of its cap range. Now, if we do see gold actually capitalized or monetized at a higher price to cover these massive rehab of positions, and it is not 2900, it’s 3000 or 5000, then you start to look at the upper end. So silver resistance is perceived to be at its breakpoint level now facing the tightest silver market since COVID refiner shutdowns, and with free float decimated below critical threshold levels is very, very, very close by.

So really to wind up this episode into all of the geopolitical and tariff uncertainty, it’s clear, there’s only one reserve currency in the world, and it can’t be printed. The only question of course, is left to ask our loyal subscribers is, are you ready for a gold and silver price revaluation? In other words, are you positioned to protect your wealth as the dollar, the pound, the euro, the yen, etc, the value against gold and silver? All right. Thank you, Andrew McGuire for another fascinating discussion and episode, as we promised.

Now, remember to our Life in the Vault community, buy physical, understand the critical difference between what Andy calls the casino paper gold and silver markets and the actual physical gold and silver markets. They’re not the same. Don’t be fooled.

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