Is Gold About to Trigger the Next Financial Crisis? (Uncut) 02-24-2025

Is Gold About to Trigger the Next Financial Crisis? Industry Expert’s China Theory (Mike Maloney)

Gold derivatives may become the epicenter of the next financial crisis, the next great crisis. In such an event, demand for physical gold would spike further, as would prices. And the Global Precious Metals Emergency continues from Doug Casey’s International Man.

Did you know someone in the U.S. recently took possession of approximately 30 million ounces of physical gold, equal to over 11% of the U.S. government’s reported gold reserves? No, I didn’t. And 30 million ounces is quite a large sum. That is just under $90 billion.

So is it possible that it’s not someone but some thing, such as a large bullion bank with the initials JPM or somebody like that? 11% of the U.S. gold reserves, that is really something. Make Gold Great Again says top Singaporean bullion dealer says three of its major suppliers have now stopped taking orders for one kilogram gold bars. It just won’t stop.

Another 331,000 ounces delivered to the Comex Vaults. Rand Paul is requesting an audit of Fort Knox, and I wish they would stop saying Fort Knox. They need to start saying U.S. gold, period.

We want all the gold audited simultaneously, and we want bar numbers, purities, weights, hallmarks, and title. Who owns that bar? That is the important part. GLD is the bullion bank’s physical gold piggy bank.

While retail investors are putting gold bars into GLD, bullion banks are borrowing GLD shares and taking those gold bars out. It reminds me of that Bugs Bunny cartoon. If somebody could put in the notes which Bugs Bunny cartoon because I am a Bugs Bunny aficionado actually.

But when you buy shares of GLD for every 10,000 shares, they purchase a basket of gold, it’s called. A basket is 10,000 ounces. It’s not 10.

It isn’t a one-to-one ratio anymore because GLD leaks. And so the price of the doesn’t equal the price of the. But anyway, to redeem those, you have to buy, if you want bars out of GLD, you have to buy 10,000 ounces.

That is a basket. And when you buy those 10,000 ounces at $3,000 an ounce, you’re talking about $30 million. So anybody that doesn’t have $30 million to pony up to the table and take delivery of their real bars has to just settle in cash.

GLD does not have to have all the gold required to back it up. So the bullion banks that are in trouble can always go to GLD and borrow a bunch of, and when they borrow, they’re borrowing it. So your broker, if you’ve got a margin-enabled trading account, you’ve made an agreement where they can go in and borrow your shares.

And so they can borrow shares and redeem those 10,000 ounces at a time. And so it’s part of the way that the public is bailing out the bullion banks. This great article in the Epoch Times, Gold Expected to Shine in 2025, ends with some gold industry observers have argued that there is evidence that a handful of large banks that issue most of the gold derivatives, contracts, derivatives, futures, forwards, leases from central banks, that’s a derivative.

GLD, SLV, those are derivatives that these large banks have acted in concert to manipulate the price of gold. An illegal pricing cartel among the banks would not be unprecedented. The public discovered similar practices in the mortgage-backed securities fraud leading up to the global financial crisis and in the manipulation of LIBOR, the interest rate at which banks lend to one another, uncovered a few years later.

Now you remember things like mortgage-backed securities, MBSs, collateralized debt obligations, CDOs. Those are derivatives. The recent sharp rise in gold prices may put pressure on these banks and lead to instability in any price-fixing arrangement.

If the cartel unwinds, it could come quickly and violently. Do you remember the day you woke up it was a Monday and Lehman Brothers had gone under and they were not going to bail them out? There would be winners and losers and potential contagion into other markets. In other words, the gold derivatives may become the epicenter of the next financial crisis, the next great crisis.

In such an event, demand for physical gold would spike further, as would prices. No, Sherlock. So James Anderson asks, so where did all the Swiss to USA gold flow from? In January, the Swiss gold exports, so their exporting to the United States, was 193.4 tons.

Well, where it came from is the rest of the world sort of shut off. Actually, the rest of the world still had demand, but the Swiss gold refineries weren’t selling to them. They were only selling to the United States.

Look at this. China, 0.2 tons. The US, 193.4. Now, we are going to dig into this a lot deeper in a moment, but I want you to remember China, 0.2 tons.

Remember that. I’m going to dig into it. Got a couple of things we got to clear up first.

This is the World Gold Council global mine production for gold. Here’s the map. China, by far the world’s largest gold producer, followed by Russia, Australia, Canada, and down here, the United States.

China produces two and a third times more gold than the United States. Remember that. Largest gold producer in the world.

China secretly buys a large amount of gold, Goldman Sachs, 10 times more than official reports. So, this is Swiss gold imports. In other words, it’s the people they are buying from.

These bars are the people that are selling to the Swiss refineries, and what you see is the United Arab Emirates and the United States, and that’s January of 23. February, the United States, Russia, Canada. March, United States, Russia, Canada.

April, UAE and the United States. May, the United States. June, the United States.

July, the United States. August, the United States. September, the United States.

October, oh, September is double counted here, so now these buttons get out of sync, these links. October, Nick, you’re going to have to fix that someday. Sorry to put some extra work on you.

October, United States. December, United States. Now we go down to, uh, I’m sorry, that was November, United States.

December, UAE, United Arab Emirates. January, United States. February, United States.

March, United States and the UAE. April, the United States and the UAE. May, the UAE.

June, the United States. July, the UAE. August, the UAE and the United States.

September, the UAE. November, now, UAE, and, I’m sorry, that was October, and November, the United Kingdom, so they’re pulling a lot out of the UK. Now, we’re going to go over to where they’re exporting to, Swiss Gold exports, and so we go back to January of 23, and it’s going mostly to Turkey there.

Now, what I want you to look at from now on, this bar of China, conspicuously present, absent on the supplying Swiss refineries, very present when it comes to taking from the Swiss refineries, buying from them, so I want you to pay attention to this bar and the United States here. The United States was the major supplier, and now China is going to be the major consumer from the Swiss refineries, but so that was February of 23. March, China.

April, China, a little bit of the United States. May, China. China, in this case, Turkey.

China and India. India has a wedding season, and so, annually, they need a lot of gold. China, China, India, India, China, China, China.

Now, take a look at this. Here’s China at 69 times the U.S. at 0.5. China is taking this, that month, China took 138 times more gold from Switzerland than the United States. That’s March.

April is very, very similar. May, China, China, China, India, India, the U.K., now needing gold in October. November of last year, the U.K., crisis is starting, and then, or that was October, and then November, India again.

Now, that button was for December. It gives me November data. What happened to December? Well, I’ve got those because Nick Laird emails them to me.

64 and a half tons in China dropped down to just four tons, so China shutting off their purchases or being refused by the Swiss refineries so that the U.S. could get supplied, and then December, 193.4 tons going into the U.S., China at 0.2, two-tenths of one ton into China. Where did all this gold come from? It came from the rest of the world not getting any, and all the world’s gold that’s coming through the Swiss refineries going to the United States only. Now, what would happen in China if suddenly there wasn’t any gold on the exchanges? The Shanghai exchange is instant delivery.

It’s delivery the same day. It’s a cash market, basically, and so if they couldn’t deliver gold, there would be a panic, and the price of gold would spike worldwide. If the shops that sell gold around China ran out of gold, there would be a giant spike in the price, and it would set off a worldwide panic, so what is happening here? The world’s largest gold producer and the world’s largest gold importer that’s just gobbling up most of the world’s gold has gigantic reserves of gold that they’re not telling us about, and they are probably now supplying.

This is my theory that they are probably now supplying the exchange and keeping all of the gold shops with inventory and so on. They’re supplying the raw gold that all of the refiners and jewelry makers and everybody else uses so that there isn’t a panic. Why would China do this so that the price of gold remains low? They do not want gold up at $10,000 an ounce or even higher because of what it would cost.

They’re trying to accumulate enough gold to be on, you know, when there’s a monetary reset, which everybody seems to be getting ready for, then they want to be on some sort of level playing field at parity with the United States. They don’t the United States. He who owns the gold makes the rules.

So this is Swiss gold exports for the entire year 2024. Remember, 64.5 tons came from just December, so it was only 37 tons to the and 350 or 36, I mean, and 354.8. So basically, until December, it was running almost 10 to 1 there. And then let’s take a look at UK imports.

Where did the UK get its gold? It got it from Canada, the US and Switzerland. Let’s look at UK exports for 2024. China and Switzerland, and we know that more than half of the Swiss gold goes to China.

And so the UK is selling it to Switzerland. You can cut off a little more than half this bar and stack it on top of that bar, and it’s right off the top of the charts. That’s where it’s going.

Look at how much went from the UK in 2024 to the US. Then we’ve got 25 years of data here, 1999 to 2024. And China really didn’t start buying until, I mean, they weren’t a big buyer back in like 1999.

But you still have to take this Hong Kong bar, stack it on top of the China bar, and then take half of that Switzerland bar. So this bar is only up to like here and pile it on top of this one. So basically, a bar almost this tall would be China.

So it’s China shutting off their demand or the Swiss refineries refusing them. That’s where all of that came from. But there’s even more.

Now, this is also from Nick Laird at GoldChartsRUS, Comex Warehouse Gold deliveries. And this is the COVID panic, the spike up to 5.5 million ounces. We’re now up at 7.36 million ounces last week.

However, I much prefer the way Nick has expressed the same data, but in dollar value here, we have about 9.7, 9.8 billion dollars was the highest peak, the highest week during the COVID panic. And now we’re at 21,617,000,000 dollars worth of gold delivered off of the Comex last week. Now, this was like a dress rehearsal for this.

We went from these averages down here to this sudden giant spike in Comex deliveries. So what is happening right now? Well, I did a lot of research on that, and it’s free. You can download this chapter, you go to GGSR21.com and then click online chapters and go to chapter nine and click that.

And here it is. It’s only three and a half pages long. Please read it, download it if you want, email it to anyone you want.

It’s free. So the big value, though, I believe is silver, where there was 21 billion dollars taken delivery of off of the Comex. There was last week, there was only 723 million.

And that is because the silver market is so incredibly small. Now, bald guy money says, don’t forget how precious gold and silver are. This is the estimated amount of gold and silver per person.

And the data comes from the Royal Mint of England. Paper is paper. They’re called precious metals for a reason.

There are 8.1 billion people in the world right now. There’s 3.1 troy ounces of silver per person, 1.2 troy ounces of gold per person. That works out to 2.5 troy ounces of silver for every one ounce of gold.

In other words, the physical quantity gold silver ratio is at 2.5, where the price gold silver ratio, the price of the gold silver ratio, silver is currently selling at one ninetieth of gold’s price, but it’s only 2.5 times more abundant. And the gold silver ratio as far as the price is at 90. This will get resolved someday in the future.

But for now, who do you think is winning? This is currency wars. It’s a real old meme that was around like 10 years ago or 15 years ago. I want to thank you for watching.

We’ll see you next time.