Who’s Loading Up on All the Physical Gold? Part 2. (Uncut) 02-28-2025   

would you say that if we uh stayed on a gold standard not just uh in the US and in the UK you wouldn’t need uh Doge right now no because the government wouldn’t be able to spend money it has not got Friday February 28th 2025 Manco 64 home of alternative economics and contrarian views well Clive today we’re going to look again at who’s loading up on all uh the physical goal that’s going to the us we touched upon briefly on that last week and it’s interesting that U the Sunday after well last Sunday uh Burkshire halfway and

Warren Buffett came out with some comments so maybe you could elaborate on that well you know a week ago bar we on the Friday we speculated or rather you speculated that perhaps the buyer of all this gold could be and silver could be Warren buffo or rather Burk haway way um you know I went along with that because uh he’s got $300 billion sitting in cash and uh he’s come out of equities to some extent uh so it seemed possible uh but then you know I started Scouting Around on the internet uh I thought I’ll check

into this and the first thing I kep did was put it into chat GPT to find out what chat GPT has got as a answer and their response was the chance that b sh haway has invested billions into gold is quite low based on Warren Buffett’s historical investment philosophy Buffett has repeatedly criticize gold as an unproductive asset famously stating that it just sits there and looks at you and that he prefers businesses that generate cash flow so I thought oh that’s very interesting well perhaps there’s a story

there I’ll go look up what war buffets had to say about gold I started investigating I started going back and um I happened to have a couple books about Warren Buffett there’s that one and there’s this one called the snowball uh this is about 20 years old maybe or 15 years old uh so I started looking into this a little bit more to try and feel the story about Warren Buffett not being interested in gold and Bara hathway being the most unlikely purchaser of gold at all the trouble was the more I looked the more I came to the conclusion

Mario that you could well be right so let’s go back a little bit in history Warren Buffett was born in 1930 it was the Great Depression uh people were lining up outside the banks to get their money so these people were shuffling along from morning to night praying as they got closer to their desk I pray there’s some money left for me when it’s my turn and Warren Buffett’s father so don’t Warren would have been one years old or two years old at this time Warren Buffett father who whose name was Howard

homman Buffett was one of those who was trying to get his money out of the bank unfortunately for Howard he got to the bank and the doors were closed and the doors never opened again so uh in Howard’s case Warren’s father he never got his gold um Howard was a green grosser like his his father before him uh and the business was failing anyway because nobody had any money but Howard did he had two children at home to feed he did one of the craziest things you could ever do in the middle of a Great

Depression he decided to start a stock broking firm now you know that that’s that’s as crazy as you could get because back in the 1930s Great Depression nobody had any money and certainly no money to invest but he went for the stock broking firm and somehow somehow we don’t know how he made a su ESS of it later The Firm he initially the firm was a joint firm with one of his friends but later The Firm became known as Buffett and Co so it was his own firm uh and he was so successful that he could

buy a they could buy a bigger house they could get a servant in their home and by the time 18 uh Warren was about 18 years old uh his actually by the time his was about 180 13 years old uh um he could by himself or rather I would say by himself he was elected as a congressman and he served as a congressman for four sessions uh over many many years now one of the things which came out of all this was though he was a stock broker therefore a great lover of stocks and he was a like War himself he was a

value investor um Howard’s other passion was for a return to the gold stand in fact he was one of the most Advocate uh one of the biggest Advocates of the gold standard in all of North America so as a congressman he’d be making speeches about gold he’d be uh writing papers about gold he would be telling all his friends about gold and Warren as a young lad from the age of 13 onwards would be sitting around the dinner table hearing his dad talk to his friends about a return to the gold standard so all the Warren would have

heard as a young man would have been gold and I just want to quote a few things from Howard Buffett waren bu dad um these are some of his quotes in a free country the mandatary unit rests upon a fixed Foundation of gold or gold and silver independent of the ruling politicians our dollar was that kind of currency until 1933 under that system paper currency is redeemable for a certain weight of gold at the free option and choice of the paper holder paper systems end in collapse But First Let Me Clear AIT away a bit of the under

Bush I will not take your time to review the history of paper money experiments so far as I can discover paper money systems have always wound up with collapse and economic chaos before 1933 whenever people became Disturbed over federal spending they could go to the banks redeem their paper currency in gold and wait for common sense to return to Washington the gold standard acted as a silent Watchdog to prevent unlimited public spending I have not time to portray the end of the road of paper money

experiments it is worse than just high prices that You’ have heard about monetary chaos was followed in Germany by a Hitler in Russia by all out bolshevism and in other nations he talks about China later and other nations by more or less tyranny it can take a nation to Communism without external Li without external influences I this is the crucial part here uh I can find no evidence to support a hope that our Fiat paper money Venture will Fair better ultimately than such experiments in other lands because of our economic

strength the paper money disease here may take many years to run its course so Warren was living in a family where his father to all his din table guests would be talking about gold and return to the gold St talking about the Yar inflation of the 1940s uh and he also had a view uh which was widely held in the family because his sister actually said it embarrassedly when someone received a gift of a bond from the father uh that government bonds are worthless now you might think that Howard Buffett

might have been a gold hoarder but remember the after 1933 hoarding gold was illegal in America you couldn’t go out and buy gold or if you did you’d be risking prison but what you could sorry they he could have uh bought numismatics like I think uh for example in the 60s some people were buying sovereigns which were considered Mis man but we we but you’re right he he he didn’t um I think probably people were buying gold miners um that’s what they’re doing well in fact uh you I I did discover that he did

actually have the odd coin or two as well but uh that wasn’t what wasn’t really but what what what he was doing and what you could do was to buy gold bracelets so for his two daughters every year he’d be buying gold bracelets for his two daughters and Warren Buffett a young lad growing up to towards the age of 18 was obviously sitting there watching his sisters get this lovely gold and Warren perhaps the best he got was a toy train set I don’t know what he got but but you know I can imagine that there was a

certain amount of jealousy in those years but Warren was certainly born into a family where gold was part of the family and where Fiat money was going to deteriorate to nothing but Warr also learned a very valuable lesson from his father that there’s a if you can’t buy gold there’s another way to make money and perhaps an even better way CU his father was a stock broker and that way is to buy Common Stocks so War Buffett is frequently said that he prefers Common Stocks over gold but when I look back to see if

Warren Buffett had ever bought any gold uh I didn’t find that but uh I did find in the 1960s late 60s and uh this is uh from Warren Buffett himself is not uh someone else saying it in the late 1960s Warren Buffett made his first foray into gold as a private investment and and by his own mission why did he do it he saw that gold was going to be demonetized don’t think gold was still money for foreign Nations but it wasn’t for American citizens so he he would have bought gold but he couldn’t because it was illegal

so he bought the next best thing War Buffett bought a lot of silver for himself and he held it and watched it for 30 well 40 years for the years which followed but by 1997 now he’d held his goal Silvera for 30 odd years been watching every day and he made a decision on behalf of bsha heway to dive into the silver market now this is a man who’s reputed not to be very keen on precious metals which just sit there and look at you but nevertheless for for bsh hathway in 1979 1997 on 19 1997 he bought

129. 7 million ounces of gold silver sorry silver yes think that was 1297 of silver for bux paid between $5 and $6 an ounce now he kept that very quiet at the time but about a month or so before the annual report when perhaps he might have disclosed it in the annual report he came out with a press statement and that press statement basically said uh that yes we bought a bunch of silver we’ve had a number of inquiries about it and uh we we we’ve done it so it didn’t say he and he said we intend to carry on

holding it now they were asked about that at the uh shareholders meeting and it looks to me like Charlie Munga his partner in barkshire hathway was kind of trying to distance himself from the purchase um and I’ll just say what uh Charlie bua said when uh uh Warren was after about buying the silver Charlie bua said this is not a big deal for bsha we’ve got a line of activity where once every 30 or 40 years you could do something employing 2% of your assets this is not a big deal the fact that keeps Warren amused

and not doing counterproductive things and keep the fact is that it keeps Warren amused and not doing counterproductive things so then Warren apologizes saying well it makes me feel better about all those people are taking pictures of me because p uh in photography back in 1997 silver was used in photography and then Munga uh he kind of mocks War bit it’s more of a joke but he he’s he’s smiling at the audience and people are laughing and he says making fun of the fact waren has been watching Silvera for 30 40 years

since he first bought it he says think of the discipline it takes to think of something for three or four decades waiting for a a chance a chance to deploy 2% of your assets I’m afraid that’s where we are it means there will be some dull stretches in other words I don’t think it’s a good investment so bua was very much against the purchase of of the silver yeah Clive uh uh one thing you you’re speaking about earlier about Howard Buffett how gold disciplines government because uh you know the electorate or the public

can withdraw its gold from the banks if it thinks uh the government is overstretching uh so would would you say that if we uh stayed on a gold standard not just in the US and in the UK you wouldn’t need Doge right now no because the government wouldn’t be able to spend money it has not got so gold is doge is the ultimate Doge I would say uh the other thing Clive uh that I this is what you wrote on LinkedIn uh you said what you want to take a delivery for your silver and then it says but Burkshire uh

demanded delivery of the the silver this obviously caused some consternation amongst the shorts but by late 1998 rumors uh of uh barkshire silver foray were circulating it’s maybe then that Warren received a warning call from the regulator some of the shorts were possibly unable to deliver the silver they owed and it sounds almost like what’s going on today with gold and the lbma and Clive I’ve sent you some copies of this and uh this is a what uh Martin Armstrong he he was in prison at the time he used to publish

these reports on scribit and uh one of my friends at work who was also a gold bug he uh printed it out and he uh did this for me and as you can see here it’s from uh 2008 and uh if you turn to uh page 60 he actually talks about U the billionaires CL we’re not going to go too much into that uh the the and uh it what Martin Armstrong says and I don’t know if he’s ever talked about this now in public uh and uh on on YouTube is that um people like Warren Buffett and other billionaires sometimes they decide to

put on a trade and it has no chance of losing because they’re all in it uh which is uh I would say illegal as in in terms of The Regulators but um as to the physical which is really interesting Clive uh it says here uh towards the end and I’m just trying to find it exactly oh yeah uh this is on uh page 61 and this is Martin Armstrong uh writing he says because he was offered to be in this club Martin Armstrong to put his client’s money in that and he refused but he says to my shock my telephone rang it was a broker who was

not part of the club to let me know that the bank of England called a meeting in the morning of all silver Brokers so the uh what Martin Armstrong is implying is that the bank of England was concerned about this uh taking of delivery of physical silver and uh I’m going to ask you the question why will the bank of England be concerned about silver they don’t even have silver uh in their vaults uh silver has been demon demonetized for so long uh I thought Silver was not that important maybe you could uh tell me what you think about

that well obviously I think they they look after their own the lbma we’re talking about the lbma in the Bank of England is effectively as good as the same thing um the participants the lbma they you know the big Banks and the they’re the good friends they’re all buddies they all have lunch together and that sort of thing uh and if someone was taking delivery that’s very awkward for those who don’t have the silver and we mustn’t forget that the bullan banks love to play the short end of the market

by selling gold that they haven’t got lending it out that all gold and silver it doesn’t matter uh that that’s the game so when someone takes delivery of what they bought it’s unexpected so what was going on in 1997 bsha hathway was taking delivery where was he taking delivery he was taking delivery of the silver he bought on comc in New York he was taking delivery of it in London right so and Rec he was doing that I’m quite sure was to maintain some level of secrecy about what was going on so obviously at a month before the annual

report was due out when he might have uh told people that he bought silver I think he was forced to make a disclosure which is why they made this press release and uh there’s some very interesting words in the press release which I’ll just read you a couple of uh lines of it and I think this is why he was forced to make a why the bank of England was so worried these are his words if any seller that’s oh by the way he at the time he had 42.2 million out of the uh silver that they bought which was at that time not yet delivered in

other words they bought on comex its Futures it’s being delivered as it matures but 42.2 million had not yet been delivered so he said if any seller should have trouble making timely delivery bsha is willing to defer delivery for a reasonable period upon payment of a modest fee so here he is he’s giving a sock to the regulator don’t worry I’m not going to disrupt your Market if people can’t deliver I won’t sue them I’ll give them a delay they can pay me W fee so but my my real Point here is that here’s the man who’s

grown up in a world where his father was talking about gold it was illegal to own gold he bought the next best thing for himself as a younger man in the late 1960s later on he’s been following Silva B halfways by Silva a lot of it uh his best friend and co- uh owner of bway Charlie manga doesn’t seem to agree with that purchase but okay War’s having fun it’s keeping you out of trouble but obviously they had a little bit of an argument about it by the sound of it if you listen to them on YouTube

talking about it so for the next from 1997 through to now Warren Buffett has not been messing around to my knowledge with gold or silver and I know he’s quite right gold just sits there and looks at you so do silver uh it’s not it’s not paying any interest and uh we’ve been in one of the greatest bull markets in all of history for stocks but a year ago live can I just show you something I I I think uh I’m not sure if it was you who asked me about this someone asked me if I could do I think it was one of my

friends uh a chart of barkshire haway a class that’s the main stock of warm Buffett versus gold and of course in the 80s uh and ’90s uh it was the right time to own uh Warren’s uh company but if you go back to 1998 till now uh yeah uh his uh Company stock has gone virtually nowhere versus gold so may may I don’t know if he’s looked at this chart so just wanted to show you that and so important point to make Mario one of the criticism that bsha Hathaway has had about gold is that it pays no dividend they yeah who can you think of

pays no dividend B how way pays no dividend and the reason Warren Buffett uh has his policy and I’ve read about it I think it was a book I bought actually when I was working in Geneva uh it talked about Warren Buffett it was called the intelligent investor I think I don’t know if you have that one and he said grab yeah and he says that um the reason he doesn’t like paying dividends is because it’s not tax efficient so he he plows it bow the dividends into the company uh yeah Clive U I’ve got that I

think I interrupted you but so I’ll let you uh continue but I also want to ask you uh because uh last Sunday actually Warren Buffett came out and with a statement for the company maybe you can cover what he said at the time as well exactly so so from 1997 onwards for for the next 25 years or 24 years let’s say Warren Buffett and bar hathway didn’t touch precious metals I don’t know if they kept their silver position they probably did for a while but they didn’t touch because that would have created an

argument between Charlie and and Warren uh you know clearly Charlie bua was against that purchase and Warren didn’t want to upset him by buying anymore ever but Charlie manga died just over a year ago which means if War does decide to buy some precious metals there’s no who’s going to be upset about it at least not uh not running the company now we know that Warren Buffett about a year ago who the man who always thought that equities were the best thing started selling off some of his equities he still thinks equities are great are

great investment but he’s raised 350 something like that billion dollars of from selling equities and that’s sitting in cash it’s been sitting in cash for more than a year uh earning a modest rate of interest three and a half 4% that you get whatever you get on treasury bills um but is he really keeping a 100% of his money in Fiat the thing that his own father despised and he grew up believing that Fiat was a bad thing now I I I agree I think Warren Buffett generally historically thought that equities were

a better deal than than gold but does he think that gold is a better deal of fat well I think he does and the reason I think he does is when I read The Words which came out in the annual report that’s the shareholders letter A few days ago so this is from the shareholders letter uh which I think it came out on Sunday after we spoke Mario the 2024 annual report and it’s only one paragraph I’ll read it to you this is what Warren Buffett says paper money can see its value evaporate if fiscal Folly prevails

in some countries this Reckless practice has become habitual and in our country’s Short History the US has come close to the edge fixed coupon bonds provide no protection against runaway currency fixed coupon bonds provide no protection now War bu it at the 31st of December 300 and something billion dollars in cash and he’s saying if if I read those words he’s saying that’s a bad deal offers no protection so it it might well be that he’s in the market buying up some of that gold and silver there’s nobody to stop him

Charlie M’s gone yeah and he’s grown up in a household full of uh gold bugs if you like in a certain sense and uh he bought silver himself uh several times over three two or three times over historically uh you know he’s not against earning precious metals if there’s a profit to be made that’s my opinion so well I’m not going to exclude totally uh it might be it might be him yeah and uh looking you said run away uh currency you know debasement and I’ve got uh a couple of charts here I wanted to show the first one is U of the

runaway uh collapse or Deb basement of the the reiches mark uh back in yart Germany and uh just uh remember this chart because I’m going to show you another chart that looks very similar in my opinion and the time frames are different but there’s something in technical analysis C called fractals where uh you have the same pattern but a different uh size and different uh time frame it’s almost like a uh it’s something that happens in nature as well like uh you look at branches of a tree they they’re smaller and they get bigger

and they all look the same sorry they all look the same like a a small wave uh looks like a bigger wave right but uh notice here uh that in the summer of 22 uh well the the Reich Mark started really collapsing and this is how many paper marks you get uh for a a paper for a p a gold Mark I’m not sure what the weight of a gold Mark was but it doesn’t matter so you can see that after World War I it started uh you know it was should be one to one but uh it went up uh like let’s say here uh I don’t know

where that probably was around 50 corrected back to 10 uh and then it Consolidated for a couple of years uh try to break out this level came back down a little bit and eventually it broke out and uh this is a straight line but um uh and this is probably more like a monthly chart but but I can see uh on the way down that uh the the paper Mark had there was a lot of volatility in this in this market I’m going to wait for Clive because I was just looking for I had one of I I didn’t find I have one

of those U uh billion trillion Mark pieces I have some of them as well but what I was trying to say Clive this chart just keep this chart in your memory because I’m going to show another chart and the other thing Clive as I said it took off here in 22 so the re Mark started collapsing and I’m you know what you know what that reminds me of Mario when we were working the bosses would always ask about what the profit will be next year and we had a a chart which looked like that it was like a hockey stick go down a bit then go

straight up yeah the the other thing as well uh this is very smooth this chart but I’m sure there is a lot of volatility along the way and many people uh that were holding physical gold in Germany uh probably uh even here they probably said when it came down here they got rid of it because they said oh Gold’s finished um so I want to show you this other chart now uh and uh of course I can go back quite a bit this just to show you how I got these trend lines but if you come uh to like let’s say around here uh it

looks very similar to that German uh chart this is for example right after the war when uh we saw it go to 50 and then it corrected and then it Consolidated tried to break out a few times and now it’s finally broken out and uh if you look at this chart again I’ll bring it up here we’re we’re kind of like here I think Clive and uh what it tells me is that I’m not saying we’re going to go to a quadrillion the price of gold but I I think we could there’s still a lot of time or or a lot of room on the upside and I know in the last few

days uh uh gold has corrected but I think uh what do you think Clive do do don’t these charts look very similar in terms of the fractal um they do and of course as you said Mario during the Yar inflation we had many periods when gold was going down sometimes for a year or more but you know it wasn’t a straight line even though in your chart because it’s very compressed it looks like at times it was a straight light up um and you know where we are now we’ve got the American Stock Market uh teetering on the edge it

looks like it’s about to plunge and it as the American Stock Market goes down of course everything’s going to go down Bitcoin is going to collapse the gold price is going to collapse stocks are going to collapse but the trouble with that is those who are nervous Nellies they’ll be selling but they will be unable to get back in when the tide turns because at the bottom things always look much worse much more bearish than when you sold on the way down so I’ve seen I’ve been you know I’ve been investing money for 50 years and I’ve

seen my clients doing the same thing I have never yet seen someone who sold because they thought things were going down down they were sometimes right about them going down but I’ve never yet seen one of them manage to buy back at a lower price than they sold even though the opportunity existed sometimes for many years because when prices were lower people felt more bearish than they felt at the time they sold and they cannot make the decision because things look worse so what I’d like to say to

your listeners and viewers Mario is yes Gold’s going down at the moment but don’t be frightened don’t don’t allow yourself to panicked out because if you do you won’t end up you’ll never end up buying back when it hits Rock Bottom you’re going to feel far more negative at that moment in time so we have to you know ride it through and use this as an opportunity if you’re a go if you haven’t got enough gold use it as an opportunity this downward draft in stocks uh Bitcoin gold and anything else which is falling at the moment use it as

your opportunity to pick up a little bit more cheaply and if you be a if you’re a consistent buyer you’ll have bought some close to the bottom of this cycle I don’t know if this cycle is going to last a week a month a year uh probably not that long in my view uh but we’re obviously if you look at the way the money monetary system is going uh governments are absolutely out of control we’re seeing some uh Cuts in America but the tax breaks mean that they’ve given away far more in tax breaks than they’re cutting and spending

so that deficit is going to continue to grow and it’s going to and it’s going to go out of control so it’s only a question of time before the current dip we’re going to be seeing in the gold price will turn around and go back up and I I I would say those who think they can sell it down and buy back at the bottom they’ll they’ll miss the bottom absolutely they won’t buy back they’ll end up buying back at a higher price than today yeah and uh I I also think like U because in 08 Gold uh when the market crashed in September October with

Leman um gold went from just above uh a, in March and it dropped to like 680 um in the end of’ 08 there when we had the uh the culmination of the’ 08 crisis so it dropped quite a bit but it was still above where it was like in the beginning of 07 when the the crisis started uh and uh I remember really well because I was already involved in in gold for quite a few years I I was working in the city I I I did think and it would have happened Clive all those uh Wall Street Banks and London Banks they would have gone under we’re just

sitting there at work waiting for the next shoe to fall but then of course they came in and bailed everyone out but I remember you couldn’t uh you had to wait a long period of time and you you’ve spoken about that to get physical gold the premiums uh were really high so you’re not really buying physical gold at the the prices you’re seeing and but I think this time it might be a little different that in that the drop in gold and silver will not be as sharp as the General stock market and I just want to

show you here clap I was looking at this last night uh the chart of the S&P uh it’s not looking very good here uh of course today is the end of the week end of the month so uh it could rebound but I think it will be a key uh key day for the markets anyway um what do you think Clive um you know nvidia’s results which came out weren’t as brilliant uh I mean they had Nvidia would have had to bring out absolutely amazing results to keep that gravy train going the results were uh very very good but they weren’t as

amazing as the market would have liked and I think you know what’s happening is people are starting to pair back a little bit that growth you know they’ve had uh truly amazing growth expectations for the future not only Nidia we’re talking about all of the mag 7 with AI and everything else and that those amazing growth projectors are still there but they’re a little less amazing than they were and the reason is because a realization is setting in that when you have a huge profit somewhere and there is a huge profit for those

involved in the AI SC Arena competition will start to set in companies will from India from China from the UK and also from many places in America will start to emerge which offer alternative solutions to those who want AI Solutions cheaper Solutions faster Solutions more intelligent solutions all kinds of solutions so there’ll be competition and when you’ve got competition it means you can’t charge quite as much as you used to or rather the same amount of money has to be shared amongst more participants so

those profits whil they will continue growing they won’t be growing quite as fast as some of the most optimistic uh analysts were expecting and I think in the coming weeks we’re going to see them pairing back a little bit here and there their expectations those who’ve got the most outrageous op optimistic forecast will bring it back a little bit and come back into the middle of the pack the way you keep your job is always to stay in the middle of the pack I know that sounds crazy but that’s the way that’s

the way they think C uh just want before we wrap up uh I I’ve been following this a little bit and it’s just uh on investing.com they’ve got all the major indices they’ve got the prices but also the performance and and near to date you can see it’s only the Dow that’s up slightly uh S&P is going red NASDAQ is down almost 4% the small caps is down 4% and then I I also been following this here Clive which is Commodities uh and if you look at the metals and the performance uh yes they’ve been down

this week but if you look at year to dat with the exception of zinc they’re all up and gold for example is up almost 9% and silver is up about 7.3 U are you of the uh thinking that what happens in the first uh few weeks or first uh six you know first two months of the year uh how the markets go determines how they’ll uh perform for the rest of the year because it seems right now that that uh money is shifting on a relative basis towards hard assets and going away from uh Stocks by looking at that

performance U stat statisticians will tell you and I I think they’re right will tell you that the first few weeks of the Year tell you what the year is going to do whether it be in stocks or Commodities or interest rates or anything else so yes I I think we’re going to see uh we’re not going to see an outstanding performance from the stock market this year uh and I’m being kind of gentle there I’m not saying it’s going to crash I’m not but I do think it will go lower um I think we’re going to have a good year overall for Metals uh

that that seems to be the case but you know if I can just touch on another thing Mario um and that’s gold mining stocks gold mining stocks are still significantly lower in price than they were a decade ago over the last two years since the gold rally started they’ve just about kept pace with the rise of gold but since the 1 of January gold mining stocks have been slightly outpacing gold about double so Gold’s done about 8% or something like that uh gold minding stocks are up about 16% so we’ve had a

we are now in a situation where gold mining stocks are playing catch up and I think that’s a that’s a something which people should be looking at so what we’ll see if I give an example when the gold price goes up in general the there sales will rise faster than their cost so let’s say the costs for a gold bing company are Rising by 5% but the the sale price is Rising by 10 so give you an example let’s say the gold mining uh company was mining its gold at a cost of 95 and selling it for a 100 so it was making a five it was

making $5 an ounce now a year later the cost of mining the gold has gone up to 100 but the price of selling it has gone up by 10% and they’re selling for 100 110 they’ve doubled their profit their profit has gone up by 100% now we’re already seeing that in the results which are coming through from gold bing companies those which are reporting are generally reporting huge increases in their profits of some more than 100% year on year uh and that’s based on gold bing prices of up to the 31st of December when the gold price was a lot

lower than it is today so I think we’ve got very large profit increases coming through from gold bing companies uh quarter by quarter for this year and even more so uh next year and don’t forget when they’re reporting these profits there’s always a lag because most girl Bing companies have sold part of their production forward which means they sold some of this year’s production last year at last year’s prices but they’ll be selling some of next year’s production at this year’s prices which is a much much higher price than last

year so that will have a very leverag effect on gold bing companies profits now now it maybe slightly less leverage than some people think because uh if you’re a mining company uh when the gold price Rises you start to mine the less profitable grades of ore other words the the you you you don’t buy the your best grades you keep them reserve for the rain days so you start to buy the less profitable grades of all so you can just increase your profits a little bit uh more in a more guaranteed way but we’ve

had many decades at least a decade or more of no investment at all in the gold mining sector uh these large companies really need to increase their reserves and there’s a huge sway of small mining companies with lots of reserves and no money uh it’s a prime time for the large mining companies which are now all very cash-rich and or have no debt uh to go and buy some of these Junior miners which have got the gold but just don’t have the money yeah I just wanted to show you this Clive I I don’t know if

you remember this in 2020 uh he bought Warren Buffett bought into and barkshire halfway bought into Barrett gold but they quickly got got rid of it uh I don’t know why probably was a good decision because it hasn’t done that much since then uh and I also remember him buying uh mining stocks some years before so that he could be looking into that but the I I think uh the physical as we wrap up here Clive I think uh yeah it’s probably uh the probability is fairly high that he might get some physical gold with uh I think right now

his cash pile CL is 334 billion so yeah that’s the way I see it uh but even if it’s not Warren Buffett buying physical gold uh it’s very unusual for physical gold to actually be taken out of uh the comex uh and uh so we’re going to keep an eye on that yeah well look look somebody is taking delivery of 100 oun bars that’s what what KX is delivering 100 oun bars it’s not Mom and Pop okay this is the Whoever has taking that delivery is a big player you know we we know that Mom and Pop are not bu gold

because we look at the Gold ETFs and we can see quite clearly that over the last few years uh the amount of gold expressed in tons in the ETFs has been going down so no interest from the retail investor in the gold ETFs and also we’re hearing the stories now from the uh the gold smelters that uh coins and bars are coming back from the coin shops where normally the coin shops that they have gold comes they comes inard and they buy from the smelters buying coins to sell to their customers but now

they’ve got too much inventory the coins are coming back from the customers they now they’re taking sending them back to the smelter either on loan or uh to be melted down uh so that tells us that the retail investor is a seller but there’s big buyers out there buying and we know there’s big buyers buying because those gold bars are being delivered on comex and the price of gold is rising and we therefore we know it’s not the small investor it’s a big player or big players who are buying the gold so what happens when the small

investor starts to get involved in the market as well yeah and the other thing I would say about comx and I worked in the Futures market for years and I know this from experience and also from rafy Farber a few years ago him and other few other guys tried to take delivery of uh I think it’s a 5,000 ounce silver bar that’s the size of the contract for silver and they made it so difficult for him to actually take the delivery so yeah uh they’ll do the same if uh if uh Joe blogs or uh John Doe wanted to take

delivery of 100 o bar on on comx the broker would make it impossible for him but if if it’s a billionaire uh and it could even be the billionaire club uh Clive they’re all buying gold together who knows that’s more speculation so I’m going to wish uh the viewers a great weekend and uh yes Clive uh we’re going to talk on Sunday at the live stream any final words for the viewers well remember it’s SmackDown Friday they always try and depress the gold price on a Friday don’t get too worried about that that’s kind of what

happens every Friday um thumbs up to all your viewers yeah thumbs up