Gold and Silver Flow East (Uncut) 02-07-2025

Gold and Silver Flow East – LFTV Ep 209

There’s only one solution to restore gold market equilibrium. That’s a gold price reset. They now have to keep printing while we crash.

We’ve got this ticking time bomb. Talking gold with the one and only Andrew Maguire. Welcome to Live from the Vault.

All right, welcome to Live from the Vault. My name is Shane Moran, and I’m thrilled to be your host for this episode. And from the entire Live from the Vault team around the globe, we extend a heartfelt thank you for your unwavering support.

And as you imagine, our community keeps expanding week after week after week, and we couldn’t be more excited about what’s happening here, Live from the Vault. And we’re in the midst of historic times, as you know. And today we’ve got the one and only Andrew Maguire in the vault, and our very own precious metals expert and whistleblower, and he is going to be 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 that you simply won’t find anywhere else.

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Just click it right now, and you’ll be notified. So without further ado, let’s cross over to the UK for some in-depth gold talk and talking gold with the one and only Andrew Maguire. All right, Andrew.

Now, we recorded our last episode one day before Trump took office there. And the speed that he began to impose tariffs and move since then, we’ve had so many questions from our community relating to the reports of the gold and silver shortages and the spiking lease rates. You’d drawn attention to this, of course, and how this would expose to the extent of the gold and silver paper to physical imbalances.

You know, we keep on saying it’s the paper to physical. And I know that you’re in the front lines of this battle. You’re there every day.

Can you update us on what you’re seeing right now? You know, Shane, it’s brilliant to have you here, my friend. And so we’re back in business. And yeah, so Shane, yeah, thanks for collecting these questions and getting them all organized.

But in a nutshell, I think in a nutshell, and there’s a lot of confusion about this. But while tariffs have actually served to expose just how undersupplied the US gold and silver coffers are, it’s the aggregation of all of the tonnages of gold that have been flowing east that is ultimately responsible for causing local London shortages. And we’re talking about this for specifically all the way through 2024 is the amount of gold that is just exiting the west.

And as we indicated in our last episode, the liquidity providers continue to affirm that gold priced under 3000 bucks is perceived just way too cheap. So what we’re going to look at is while this gold continues to flow on a one-way journey into physically settled eastern vaults, the US is now competing to also secure physical bullion to back the huge imbalance evident in the fractionally held stocks, gold stocks, which are now being, and when I say stocks, vaulted stocks, which are now being demanded actually for physical delivery. Now, while late to the party, this gold is needed to address an inevitable gold price reset.

Now, we’re recording this on the Wednesday the 5th, and every two weeks we do this market update. So, and so really, this is Wednesday. On Monday, we woke up, on Monday morning, we woke up to the risks, the evident risks of paper to physical, exchange for physical spreads, i.e. the price in the Comex versus the price in the deliverable spot markets.

We noticed these EFP spreads are at risk of instantaneously expanding to unknown levels because it only needs one comment from Trump and it’s on, it’s off, they can, it’s so volatile. And, but they, when they expand, what we’re seeing is it’s getting ever closer to tripping off really, it’s so extreme, a series of bid only Comex market halts. There is circuit breakers that could trigger that.

Now, potentially that’s exposing the intermediaries to unlimited losses, i.e. the guys that make the markets between spot and futures. And I guarantee one thing, every single trading entity compliance officer has now shut down this risky trade. This leaves the Fed and the Bank of England to make markets.

And given that the foreign exchange spot markets are NSFR delivery compliant, the gold price has to be reset at a higher price. Now, by their own admission, and as we’ve, as reported in Reuters, the UK through the LLBMA and the US through the CME, so UK LLBMA, US through the CME, they are liaising on the large EFP spreads with the panic LLBMA trying to disingenuously spin that London gold stocks are not only liquid, they remain strong. And we’ll dig into that in a minute.

But in reality, as every central bank, sovereign and institutional facing massive delivery market participants, they know they’re facing massive delivery delays. And they know the massive paper-to-gold physical gold imbalance. It’s revealed to them on a day-to-day basis because they’re facing now in some cases up to 12-week refinery delays and unprecedented over 10% lease rates to borrow central bank gold.

Now, if this was just an LLBMA, CME issue, if it was siloed as it was historically before the physical markets were being settled outside of their little ring fence, then the paper-to-paper abyss, which it is, could be papered over long enough to allow these 10-to-12-week 400-ounce refined tequila bar refinery backlogs to catch up because they would simply just flywheel the paper until it caught up. Now, such is the spin from industry apologists. That’s what they’re telling us.

But these Western blinkered assumptions, which we’re supposed to buy into, that there are dealers standing for delivery in New York, and these guys will ultimately end up with an imbalance oversupply in the US. They’re trying to spin that versus an undersupply imbalance against undersupplied London. That is disingenuous and completely false.

What New York dealers are facing is the realization that the usually cash-settled COMEX EFP mechanism has become a gateway to actually obtain undervalued US gold, and it’s headed east, which is not what they wanted. We have direct evidence, actually, of two dealers acting as central bank sovereign proxies, having taken physical delivery of their full 6,000-lot maximum amount of positions you can hold on the COMEX, which is 18.6 tons, taking delivery of the full allowances that they’re allowed. Now, they not only saw that in the January contract, we’ve also seen it in the February contract already unfolding, as well as having secured April gold to their maximum allowable allocations.

In other words, these are not going to be cash-settled contracts. They are leaving the COMEX. Now, clearly, these are not the only dealers standing for delivery of their 6,000-lot allocation.

The point we’re trying to make here is that in the US, stocks are being, the US stocks are actually being openly targeted. And also, every morning, 5 a.m., we make calls around the Asian desks, and it reveals the RBMA, CME attempts to counterintuitively tamp down gold. We see it on a regular basis.

They’re fully anticipated and very short-lived into offsetting reports of very, and I mean very strong, central bank sovereign and institutional physical gold and silver demand. Now, while the Bank of England and the US are doing their utmost to gloss over their attempts to repay underwater gold leases, gold has now PM-fixed today, just now, sixth, seventh time, actually, above all-time high NSFR-compliant, first-tier, physically-deliverable spot gold at 2,800. That was breached.

Today, Wednesday, we evidenced the first fix above 2,850 spot. This is where the central bank buy stops and bids live. Now, while tariffs had exposed the extent of the paper to physical imbalance, it’s been the bullion flowing east that’s caused the current global physical shortages.

I cannot make that more clear. And as liquidity providers have consistently been reporting throughout all of 2024, any NSFR-compliant gold FX fix or price sub-3,000 that is put on offer is going to continue to attract central bank sovereign and institutional first-tier capital bids. This telegraphs much higher fiat gold prices in all currencies, with dips being jumped on by a physically starved market.

In fact, on aggregate, most first-tier liquidity providers now assess 3,500 bucks by the end of the fourth quarter. Hey, Andrew, speaking of all-time highs, you know, on our very first episode of 2025, you’d kind of gone out on a limb to say that we would see $3,000 gold for the first time in history by the end of the first quarter. Now, can you update us on what you’re seeing now? Yeah, let’s sum up the actions since our last market.

I can’t believe it’s only two weeks ago, on the 19th of January. And most importantly, as you say, what to expect as we head into what looks like $3,000 gold, likely to be achieved well ahead of the end of the first quarter estimate. Now, with refiners reporting between eight to 10-week delays, and actually as long as 12 weeks to obtain any size of refined gold bullion, the Bank of England is having to step in to lease gold to try and flywheel the massive supply deficit.

However, these lease costs have risen by another 8% above where we were just two weeks ago. They’re in excess of 10%. And while these Bank of England leases are 100% hedged with risk exposure of further higher lease costs, these are laying on the books of the central banks, of basically the US and the UK central banks.

And the BIS is long gold, and every other central bank is long gold. The only problem lays with the imbalance between the COMEX and the physical markets. Ultimately, the COMEX, as we said last time, has to become compliant at some point.

So yes, the LBMA vault statistics evidences there’s 8,710 tons of gold supposedly available immediately, with about half owned by central banks. But the reason we’re not evidencing much outflows from the LBMA of the non-owned central bank gold is because Eastern demand is so strong and the higher prices are being anticipated, which means very little of this gold is put on offer because they’re expecting higher prices. At current prices, that is, there will always be plenty of gold and silver on the market at a fair price.

It’s not a fair price. The unprecedented physical shortages are actually telegraphing the physical supply demand equilibrium gold price is significantly underpriced. And this is serving to drive more refiners, wholesalers to lock in NSFR compliant FX gold to meet backing up orders at current prices.

After rinsing imbalanced hedges into the expanding spot to futures market EFP spread, the Bank of England lease fees to borrow April delivery gold get reflected in the expanding spread, rising as high as $60.60 when gold approached known waiting central bank buy stops at 2,800. And it was just, it was an attempt to cap it from touching these buy stops. They tend to be at a round number.

And when it crosses it, they’ve already got orders waiting to buy. It was, and you can see the extent of that $60.60. I mean, that is COVID like extremes. We haven’t seen that since that time.

And really, so what they were doing was just capping it ahead of its first ever upside breach of spot 2,800. And so we captured it here in this link. So let’s take a look.

Now, as we’ve been tracking, let’s roll back to where what we’re talking about here. We’re talking about after gold had been going sideways at about 2,000 bucks for quite some time, gold broke up $800 higher after China threw down the Shanghai Futures Exchange Comex attack gauntlet, as we called it at the time. And if you recall into this spike higher, the industry apologists just right now, they came out to say that this spike higher was an aberration.

And yes, there was plenty of LBMA gold sitting at 2,000 bucks. So they suggested this was just a short it or stand aside before gold retrace back to this level. The truth is that if physical demand stays elevated long enough to defeat a historical monthly paper wash and rinse cycle.

So in other words, you get a rinse cycle, rinse cycle, but secure at a higher stair step is because central banks tend to buy at round numbers. And once a central bank buys at any round number, there is no going back, which is evident by this series of higher stair steps into where we are at the moment. I’m just recording this on Thursday morning.

Now, what have we just witnessed? We’ve just witnessed a similar event to what we saw back in March 2024. And we’ve marked it on the chart much as we marked that Shanghai Futures Exchange point back in March of last year. So now what’s happened is these higher physically supported central bank physically supported higher gold stair steps are going to continue to be anchored during 2025 at ever higher levels into an absolute minimum of 3,000 to 3,500 bucks.

And while we will continue to evidence some continued defensive Fed pushbacks, we’ve seen a few, but they’re getting bought pretty quickly. And we saw that after an $800 rally into the end of the year. No big surprises here.

What it did was get rid of all the froth and enabled gold once again to start to clean out any of this froth to start. And then each time pinning underpinning itself at a higher physical support stair step. And that’s pretty much what we saw.

The Shanghai Futures Exchange sudden demand, what it did is expose the EFP scam and tariff tail risks have once again exposed it one more time. And as we evidenced into the $800 rise into October, 2024, and despite throwing the absolute kitchen sink at gold into the end of 2024, we still evidenced a final close at the end of the year where the BIS squared its last positions. Sorry, where the Fed squared its BIS borrowed positions at the end of December.

And we still saw an over $600 final settlement into the 2024 close. So while it took the Shanghai Futures Exchange launch to expose the massive LBMA CME paper gold fraud in April 2024, tariffs have simply exposed the fact that there is not enough physical gold liquidity to paper over the fact that Western gold is no longer in the hands of the cartel and the scope of any such paper-driven counterintuitive dips throughout 2025 will once again, as we saw in 2024, be limited to rinsing out an ever dwindling group of speculators willing to risk betting for or against gold for that matter. And many of the momentums who have historically controlled up to 75% of all the cash settled COMEX open interest, they left, anchoring their boat to Bitcoin.

Wow, Andrew, we’re definitely living in exciting times. We’re living in historic times. And given the, let’s say the Trump tariffs driven volatility that we’re witnessing here, and it’s likely to continue for now.

Can you expand on what you’re seeing in the physical markets here? Yeah, so given the next layer of very large spot central bank buy stops at spot 2800 have been tripped off now, driving the least cost to borrow gold from the Bank of England significantly higher, further tightening supply, expanding the EFP spread to COVID like extremes, but not in just a flash move. It’s settling in to COVID like extremes, because whereas during COVID, it was refineries were shut down, and that was it. But now we’ve got refineries open, but there isn’t enough bandwidth to even refine the bullion that’s on order.

So we’ve got lengthening refiner queues. So that’s why we’re seeing these spreads. And what it’s doing is drying up the offer to sell gold at current prices, that is risking large market maker hedging losses, not evidenced actually since COVID shortages.

And there’s only one solution to restore gold market equilibrium. That’s a gold price reset. While such a reset is already happening by stealth, if we experience a geopolitical driven black swan event, a hard reset would likely be set for a weekend, would not be pre warned, it could happen at any time.

Given every central bank is exchanging debasing dollars, euros, pounds, yens, for bonds and first year gold, further breaking deeply embedded historical inverse correlations that usually related to those crosses, it’s impossible to estimate a real fair market value. But likely 3500 would be the lowest probable support. And several liquidity providers are now estimating it would take $5,000 gold before sufficient physical gold was put on offer to meet refiner demand and close the EFP gap.

So to answer the subscribers question chain, to shed a little light on the physical to paper market imbalance, one only has to look at some of the very recent losses that these official arbiters has had to absorb. The last of the delayed 1.9 tons of January lots were commanding a massive 122 bucks per ounce over spot, settling at about $108. It was actually $108.60. And that was the EFP premium at the delivery point.

Now with confirmed reports of two entities, as I mentioned, having stood for delivery of their 6000 lot maximum allowance, efforts to synthetically rinse out the central bank size positions during January completely failed. Now liquidity providers affirmed these liabilities 100% lay in the hands of the Fed. Now also we saw 242 tons of expiring February open interest went into first notice on Thursday.

And given we had liquidity providers reports of several traders were also standing for a load out of their $6,000 lot 18.6 ton maximum allowances, it was no surprise to evidence an unprecedented first delivery date record of 92 tons of physical deliveries on the first delivery day of the February contract. Now, given there are still an almost identical 90 tons still standing for delivery, it just telegraphed that these EFP premiums and high spot prices would remain elevated. And as of last night, which was Tuesday, 140 tons have actually stood for delivery with 49 and a half tons still waiting to be squared.

Now, I suspect a good percentage of these yet to be delivered contracts are going to be a float around as warrants, whereas the bulk of the 140 tons already delivered are headed east. So the expired February contract spread should have been zeroed at this late stage. Even here on Wednesday, it’s still trading at evidencing a premium to spot.

So again, to fully answer your question, Shane, bottom line, these widening EFP spreads in both gold and silver have exposed the unsustainable paper physical imbalance and telegraph even higher prices. And bear in mind, China’s only just come back into the mix with our liquidity advisor reporting Chinese wholesalers were undersupplied and will be forced to pay large premiums to divert tight supply. Along with gold, every other currency in gold is rising.

Also, CNY gold is commanding all time fresh highs. No surprise there. Now, Andrew, talking about fair market value, you know, we’ve got a lot of questions from our life from the vault community and our silver stackers about the silver’s underperformance.

Can you shed some light on what you’re seeing here with silver? Yeah, most certainly the action has been extremely counterintuitive because silver is in even tighter supply than gold, well below its free float threshold that we looked at last time and with unprecedented spot to COMEX EFP spreads as high as a buck 46 ounce on Friday. Think about it, a buck 46 an ounce. Captured it here in this link that you’re looking at here.

And so that means that somebody to the tune of how many contracts, we don’t know, got caught out to the tune of 7,300 bucks per contract. That was the imbalance. So the silver short squeeze, it’s just, it’s no longer possible to hide it.

And while March, the March EFP, the current front month contract, which is going to settle at the end of February here, while the March EFP settled at about 94 cents per ounce, when the last 20 and a half tons were of last minute January lots got loaded out of the back door COMEX vault, it was still at that level. Now it’s reduced a little bit to around about 60 cents today, and we would expect it to contract. Should be contract, it should currently be around about 12 cents.

Now these expanded COMEX premiums have made, actually, most people don’t realize this, but these expanded COMEX prices have made air freight viable. And we know that people are shipping by air now to get their silver there in case tomorrow Trump says, by the way, Mexico is being tariffed, or Canada is being tariffed, or could be anything, we just don’t know. So clearly, the risk is you don’t have the physical on site.

Again, you’ve got a problem. So almost every liquidity provider is assessing a minimum of 38 bucks in spot silver. And I mean, talking about in short order, and the next rally leg, that is going to be the next rally staging point.

A medium term, it’s going to be impossible to contain silver below its all time 50 buck highs. Now we’ve been exposing the disingenuous club of LBMA CME paper market traders, they call themselves the professional trade. We’ve been tracking them very closely since 2008.

And they’re so deeply embedded in their synthetic bets that have built up over time, and their synthetic bets against gold. And even into current shortages, they’ve driven the gold silver ratio to 87 to one. But it’s perceived to be a breakpoint at this level, facing the tightest silver market since COVID refiner shutdowns.

And with free float decimated below official threshold levels, this is because refiners are backlogged with more profitable gold orders. So they’re putting silver orders right on the back burner. Makes sense.

And what this means is they are only taking forward locked in foreign exchange spot orders for silver. And these will ultimately be put through for delivery. But as with monetary gold, even though silver is not NSFR compliant, when a buyer is locked into a monetary FX gold silver price, it’s spot index at that price.

They own that cross against the dollar or euro, whatever it is. And even if silver rises to say 50 bucks above where you might buy it today at 33 or whatever it is, this buyer is hedged. It’s completely happy to take delivery at 50 bucks, 100 bucks, it doesn’t matter because he’s locked in.

And the point is that higher price won’t make him sell it because he’s locked in and he will take delivery. And this is a kind of setup in silver as a gold price revaluation is underway. Just think how a gold price revaluation is going to impact silver.

There’s going to be some bankruptcies out there. And the cartels breakpoint is actually 35 bucks, which would easily be run through triggering a bid only short covering spree that would obliterate the synthetic ratio bubble, ultimately exposing really people will then start questioning, well, what should it be? Well, it would expose the real 10 to 1 ratio. I mean, I’m not saying that’s going to happen because it’s unlikely because we’ve got a more viable level.

But I mean, but if you think about it, a 10 to 1, 3000 gold would be 300 bucks an ounce. But the aggregate liquidity provider estimate is that the ratio will close the gap to its 2011 33 to 1 level, which would value silver right now at this price at 90 bucks. Now, I’m not saying this is going to be achieved in all one in one fell swoop.

Of course not. But liquidity providers do anticipate a range of 50 to 200 bucks an ounce once gold breaks out of its capped range. Well, that’s incredible.

Andrew, what’s going on now? Last year you were focused on how the Fed having to buy back the gold that they borrowed from the BIS at significantly higher prices. And now you’re kind of suspicious here on what they’re really, if they’re trying to hide just how wrong footed, just how offsided they’ve become here now. Can you share your insights on this topic? Yeah, I think it’s best to go back and look at what we drew attention to last year to remind our followers where we marked on the charts the exact point where the Fed had borrowed gold and how in every instance they were forced to buy back these positions at much higher prices.

So let’s go back to the four hour more granular chart and take a look at what we’ve had been witnessing and using the Bank of International Settlements own data. And 100% certain the Fed is the only central bank that has actually been seeking to cap gold in dollars from rising by borrowing physical from the Bank of International Settlements because they don’t have it. So here are the points we drew attention to when the BIS swaps leases were added to or cut.

And so now our feet and this is we see it here, here, here, here, here. Note that they are closing their borrowing gold at lower levels and then having to pay it back at higher levels and then reducing their exposure at higher and higher levels. Now, yes, we saw a little bit of a pullback into the end of December.

But actually, we think something here was fudged. And our feedback suggests the Fed tried to double down to borrow more physical gold from the Bank of International Settlements to try and cap the rising new year gold price, but got caught out by the spike higher in lease rates. Now, looking at the larger picture, it was no coincidence the BIS swaps report was delayed even by a day.

This has never happened before. And by their own admission, the Bank of England and the CME are working together to manage the situation. And this failure to deliver that report on time suggested that the minuscule three ton reduction from 81 tons to 78 tons was actually fudged and had not gone unnoticed by foreign central banks, sovereigns and global facing institutions.

Underscoring our liquidity of our assertions that the joint US and UK LBMA COMEX-enabled price suppression policies are folding. The EFP spreads telegraphed the COMEX has to become Basel III compliant or it’s going to have to fold. There’s too much to lose to fold.

It’s not going to happen. Raising margins to meet compliance will have to follow the US Treasury, at least partly or ahead of the US Treasury, at least partly revaluing US gold reserves. Doing so will likely force an unwanted Treasury audit, because after all, if you’re going to revalue gold, when was the last audit in the 50s? I mean, it’s ludicrous.

Of course, no, it would have to be audited, but that would likely be dragged out as long as long enough to buy time to go to market to buy back rehypothecated US Treasury gold. Now, revealing this run of vulnerability into BRIC central banks in particular, the PBOC, from locking in spot gold to exploit the buyback of these swaps is driving the price higher. They know what’s going on.

Of course they know. And no one really knows the degree of rehypothecation relating to this 8,000-odd tons of US gold. Of course not, because no one’s audited it.

Therefore, it’s not possible to estimate how much gold has to be bought back at market to repay these double ownership positions. But one way or the other, EFPs have exposed the paper-to-gold abyss, and the offer price to sell real physical gold will rise to an equilibrium level, significantly higher than a current paper prices, paper diluted prices. There’s a massive gap to fill here.

And up until the 1st of January 2023 Basel III compliance, spot gold, FX gold, had traded on an unallocated basis, like silver at the moment. And it was being largely cash-settled. And as with every other foreign exchange cross, long or short positions could be cash-settled amongst the LBMA market-making bullion banks, with only a tiny percentage of hundreds of tons of FX gold traded every day being ever physically delivered.

And that’s the mistake that they seem to think will happen now. This is absolutely then failing to grasp. You’re now dealing with a first-year asset class.

And by design, the shuffling of unbacked paper gold settled inside the books of the four banks previously privileged to have gold, who do still have gold accounts at the Bank of England, was a legacy that really followed Nixon’s removal of the dollar cold peg in 1971, where dollar-denominated foreign exchange gold could no longer be actually exchanged by foreign central banks for a fixed weight of physical gold. However, the removal of the gold dollar peg had not stopped foreign central banks from exchanging their unbacked, rapidly devaluing dollars for gold in the open market. So they were happy to pay ever-larger premiums over the 35 bucks treasury price.

So in December 1974, the US Treasury moved to take control of the gold market by creating the Synthetic Futures Settled Gold Contracts. And these highly leveraged cash settled gold contracts were opened up for trading on the COMEX exchange, joining cash settled silver markets, which had been trading on the exchange since 1933. And this move gave the Fed control of both monetary metals for this period of time, up until 1983.

Now let’s pop on to the daily chart. And this is spot gold. This is not futures, this is spot gold.

And after 49, this is 49 years later, on the 1st of January 2023, everything changed. The Bank of International Settlements reclassified foreign exchange gold into a first-year asset class, reopening the window for foreign central banks et al. to be able to exchange over-the-counter traded foreign exchange gold, enabling the fulfillment of a guaranteed T plus one, that means one-day delivery, NSFR physical delivery contract.

Meaning gold was no longer the unallocated gold, had to be backed by physical if you wanted to take delivery of it. And this is when central banks just took advantage of that window and continue to do so. So really, by no coincidence, the reopening of the gold window followed the Bank of International squaring up the last 500 tons of over 50 years of accrued gold.

And they did it right here, just two months before they did it on the 3rd of November. That was less than two months ahead of revaluing gold as a first-year asset class on the 1st of January 2023. Now, relinking the convertibility of dollars and all related foreign exchange crosses to physical gold instantly reset the global monetary system, but has to date been deliberately ignored by the Western mainstream media, while conversely been embraced by every single global facing central bank actively capitalizing on the window to swap depreciating devaluing debt-backed foreign exchange currencies for gold at the market price.

And because spot gold represents one side of a global multi-currency foreign exchange cross, where as with every other foreign exchange cross, one side is long and the other side is short, Basel III NSFR compliance provided the conduit to exchange the full global suite of rapidly devaluing unbacked fiat currencies for physical gold, deliverable into a regulated T plus one protocol. And we’d noted the implementation of Basel III as the inflection point where the Fed split rank from the Bank of International Settlements, propelling every other global facing European and global south central bank to also began to move as fast as possible to back their foreign exchange currencies with freshly revalued first tier capital gold. The only remaining outlying central bank is the Fed, and who through control of the siloed non-Basel III compliant cash settled COMEX futures exchange, alongside non-compliant ETFs and billions of dollars of bearishly structured unbacked office OCC bets, which is the office of the compiler controller bets, which are published every quarter.

These guys have continued to single handedly double down on their short gold, long fiat dollar bets basically. And while these very clear counterintuitive price suppression footprints are obvious, physically settled Asian market buying directly followed by Western unbacked paper market selling is under this noise. It lays what it does is lays an unsustainable paper to physical abyss.

It’s exposed it. Unlike the SGE, where to open a long or a short trade, you have to own a specific number physical bar before trading it. The Fed only owns a fraction of the gold it trades.

So they’ve borrowed BIS gold to try and tamp down gold. But what cannot be offset against fiat and really offset against the fiat settlement process and the actual dwindling open interest that’s already evaporating around the market, it actually forces them to actually buy back these levered bets at market, higher mark prices to meet NSFR T plus one compliance, further tightening up global supply while driving prices even higher. Now, this is when reality really bites and is precisely what is forging the series of higher physically driven stairsteps, each of which has forced the Fed to short cover borrowed BIS bullion at higher prices.

And a final note on still unknown tariff so while it’s unlikely that monetary gold and silver will be effectively sanctioned. If it was to rolled out, Canada and Mexico would simply reroute their gold and silver reduction to Swiss, UK, UAE refineries, alongside direct shipments to BRICS countries. The US does not have sufficient production to meet their needs.

So we’ll be unable to divert US production to assist in receiving global in actually allaying global shortages. They won’t be able to get it. And however, and especially with if there’s a tariff on it.

So it’ll circle back and it’ll come back to them without tariffs. However, as we’re drawing attention to the COMEX provides the window to access the US nation’s gold and silver holdings. So unlike the EFPs, unlike when the EFPs expand to even larger spreads over the spot global price, or the CME removes the EFP conduit, which they don’t think they would dare do, US bullion will be drained.

Either way, gold and silver is going higher. Now the only question that remains is, are you coattailing what the global central banks are doing by protecting your wealth too, with physical gold and silver guys? Help spreading the word about this channel by hitting that like button. If you haven’t already hit the like button, hit it right now.

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