1 00:00:00,480 --> 00:00:03,560 Speaker 1: Gold is up forty six percent in less than a year. 2 00:00:03,640 --> 00:00:06,320 Speaker 2: That's double the gains of the Nasdaq and the S 3 00:00:06,360 --> 00:00:08,400 Speaker 2: and P five hundred in the same period. 4 00:00:08,440 --> 00:00:10,160 Speaker 1: A historic bull run for gold. 5 00:00:10,280 --> 00:00:13,760 Speaker 2: But when gold moves like this, it's never just about 6 00:00:13,800 --> 00:00:17,799 Speaker 2: inflation or market demand. It means something is breaking in 7 00:00:17,880 --> 00:00:21,919 Speaker 2: the global monetary system, and most people have no idea why. 8 00:00:22,360 --> 00:00:26,079 Speaker 1: Here's the shocking part. This surge isn't just another rally. 9 00:00:26,400 --> 00:00:29,479 Speaker 2: It's a deeper crisis that's triggering the biggest shakeup in 10 00:00:29,520 --> 00:00:32,240 Speaker 2: the gold market in a century. So in this video, 11 00:00:32,280 --> 00:00:36,120 Speaker 2: I'm gonna break down what's really behind the gold price surge, 12 00:00:36,320 --> 00:00:39,520 Speaker 2: why the paper gold system is on the brink of collapse. 13 00:00:39,880 --> 00:00:43,120 Speaker 2: Two possible outcomes from here, and we'll look back to 14 00:00:43,320 --> 00:00:46,000 Speaker 2: history to see when this has happened before, and of 15 00:00:46,000 --> 00:00:48,599 Speaker 2: course what you need to be doing to prepare for 16 00:00:48,640 --> 00:00:51,040 Speaker 2: this now real quick. On Mark Moss, I'll built and 17 00:00:51,120 --> 00:00:54,560 Speaker 2: exit multiple tech companies, invested through several booms in bus 18 00:00:54,640 --> 00:00:57,720 Speaker 2: and today I'm a partner at a leading bitcoin venture fund. 19 00:00:58,040 --> 00:01:00,800 Speaker 2: I also write the Quantum Wave Investment Support where to 20 00:01:00,800 --> 00:01:03,640 Speaker 2: help people navigate the biggest shifts in tech and money, 21 00:01:03,760 --> 00:01:06,240 Speaker 2: and I make these videos to give you insights that 22 00:01:06,319 --> 00:01:08,440 Speaker 2: we're using so you can navigate. 23 00:01:08,080 --> 00:01:11,119 Speaker 1: And profit from these shifts as well. So let's go. 24 00:01:12,600 --> 00:01:14,399 Speaker 2: All right, we're gonna jump right into this. I'm gonna 25 00:01:14,400 --> 00:01:15,800 Speaker 2: try to get through this as quick as I can. 26 00:01:15,840 --> 00:01:17,240 Speaker 1: But I got a lot of charts and graphs. 27 00:01:17,280 --> 00:01:19,840 Speaker 2: But unless you've been living under a rock, you don't 28 00:01:19,920 --> 00:01:21,840 Speaker 2: look at the news or any kind of financial or 29 00:01:21,880 --> 00:01:25,280 Speaker 2: economic data. Then you already know that the price of 30 00:01:25,360 --> 00:01:28,360 Speaker 2: gold is completely surging. But what you don't know is 31 00:01:28,480 --> 00:01:31,399 Speaker 2: why and what is going on beneath the surface, the 32 00:01:31,400 --> 00:01:33,560 Speaker 2: fundamental system that's causing. 33 00:01:33,280 --> 00:01:35,040 Speaker 1: This to happen. Now, as I always. 34 00:01:34,720 --> 00:01:36,720 Speaker 2: Tell you, you can get the news from anywhere. What 35 00:01:36,760 --> 00:01:39,199 Speaker 2: I'm trying to do is give you the reading between 36 00:01:39,200 --> 00:01:40,560 Speaker 2: the lines what's really going on. 37 00:01:40,720 --> 00:01:41,640 Speaker 1: So we'll look at that now. 38 00:01:41,760 --> 00:01:45,440 Speaker 2: Of course, most people think that it's because central banks 39 00:01:46,040 --> 00:01:48,440 Speaker 2: are buying up massive amounts of gold, and they are, 40 00:01:48,640 --> 00:01:52,160 Speaker 2: They're buying records amounts. Central banks hunger for gold shows 41 00:01:52,280 --> 00:01:54,480 Speaker 2: no sign of being. 42 00:01:54,400 --> 00:01:57,000 Speaker 1: Quelled this year. This is just February. 43 00:01:56,480 --> 00:01:59,880 Speaker 2: Fifth, so there's no signs that they're appetite, their desire 44 00:01:59,920 --> 00:02:02,120 Speaker 2: for gold is gonna bequlled. So we have central banks 45 00:02:02,160 --> 00:02:05,160 Speaker 2: buying massive amounts. Now to put this, you know, I 46 00:02:05,200 --> 00:02:07,080 Speaker 2: would like to show you the charts and the graphs 47 00:02:07,600 --> 00:02:08,600 Speaker 2: so you can understand this. 48 00:02:08,600 --> 00:02:11,120 Speaker 1: This is central bank gold. Bye. 49 00:02:11,480 --> 00:02:14,880 Speaker 2: This goes back to twenty ten and you can see 50 00:02:14,919 --> 00:02:17,520 Speaker 2: how much they were buying here twenty eleven, twelve thirteen. 51 00:02:17,560 --> 00:02:19,440 Speaker 2: We had a little dip here in twenty twenty, twenty 52 00:02:19,480 --> 00:02:22,960 Speaker 2: twenty one. And look at how much this new baseline 53 00:02:22,960 --> 00:02:25,960 Speaker 2: we're at. This is over one thousand tons that they're 54 00:02:26,000 --> 00:02:28,320 Speaker 2: adding every single year right here. 55 00:02:28,400 --> 00:02:31,080 Speaker 1: This blue line is the average they are on. So 56 00:02:31,520 --> 00:02:32,440 Speaker 1: something happened. 57 00:02:33,160 --> 00:02:35,240 Speaker 2: These years twenty eighteen twenty nineteen were a little bit 58 00:02:35,280 --> 00:02:38,160 Speaker 2: of a bad average, but something happened right here twenty two, 59 00:02:38,240 --> 00:02:41,840 Speaker 2: twenty three, and twenty four and have changed the appetite 60 00:02:41,840 --> 00:02:44,360 Speaker 2: for gold from governments and central banks. 61 00:02:44,760 --> 00:02:46,960 Speaker 1: What could it be? Well two things. 62 00:02:47,639 --> 00:02:50,440 Speaker 2: Number one it could be you remember right here the 63 00:02:50,760 --> 00:02:55,600 Speaker 2: massive amounts of debasement, monetary debasement of government printing spending, 64 00:02:55,639 --> 00:02:58,360 Speaker 2: if you will, That happened right here. So in times 65 00:02:58,360 --> 00:03:00,919 Speaker 2: of massive monetary debasements, cent banks are going to do 66 00:03:00,960 --> 00:03:01,680 Speaker 2: what they do, which. 67 00:03:01,560 --> 00:03:04,240 Speaker 1: Is trying to protect their wealth with gold. 68 00:03:04,280 --> 00:03:07,680 Speaker 2: Also, what happened right around here twenty twenty two was 69 00:03:07,680 --> 00:03:11,240 Speaker 2: when the Russia Ukraine War broke out. The United States 70 00:03:11,240 --> 00:03:15,400 Speaker 2: and NATO decided to seize basically Russia's bank accounts, and 71 00:03:15,560 --> 00:03:17,920 Speaker 2: all the governments of the world were put unnoticed that 72 00:03:18,280 --> 00:03:21,400 Speaker 2: your savings in the financial system are not safe and 73 00:03:21,440 --> 00:03:23,240 Speaker 2: you might want something physical like this. 74 00:03:23,480 --> 00:03:25,760 Speaker 1: Two big catalysts that happened and change that. 75 00:03:25,800 --> 00:03:29,040 Speaker 2: And of course since we've seen that massive demand for gold, 76 00:03:29,360 --> 00:03:30,440 Speaker 2: we've seen the price. 77 00:03:30,240 --> 00:03:33,200 Speaker 1: Continue to go up higher and higher and higher. 78 00:03:33,200 --> 00:03:35,960 Speaker 2: Now some of you look at things way too short 79 00:03:36,120 --> 00:03:38,520 Speaker 2: and yes gold went down, and yes it went down, 80 00:03:38,520 --> 00:03:40,920 Speaker 2: and yes it went down, but you can see the 81 00:03:40,920 --> 00:03:44,000 Speaker 2: trend is going up. So if you're a long time investor, 82 00:03:44,160 --> 00:03:46,560 Speaker 2: long term thinker like I am, then you know that 83 00:03:46,600 --> 00:03:48,160 Speaker 2: you just want to continue to hold gold. 84 00:03:48,400 --> 00:03:51,000 Speaker 1: Here we are at almost about three thousand. 85 00:03:51,440 --> 00:03:54,360 Speaker 2: Now there is some things going on beneath the surface 86 00:03:54,400 --> 00:03:56,200 Speaker 2: that really show us what's going on. 87 00:03:56,240 --> 00:03:57,320 Speaker 1: I want to break this down for you. 88 00:03:57,600 --> 00:04:00,640 Speaker 2: What we've been seeing is that there's basically two big 89 00:04:00,800 --> 00:04:01,640 Speaker 2: gold markets. 90 00:04:01,760 --> 00:04:03,880 Speaker 1: Well now there's three, and we're going to talk about that. 91 00:04:03,960 --> 00:04:05,440 Speaker 2: But the two big ones that have been in London, 92 00:04:05,480 --> 00:04:10,040 Speaker 2: the London the LBMA London Boylan Market Association. That's LBMA, 93 00:04:10,200 --> 00:04:11,480 Speaker 2: and then we have in the United States, we have 94 00:04:11,600 --> 00:04:13,720 Speaker 2: the comics And what we've been seeing is that the 95 00:04:13,760 --> 00:04:18,479 Speaker 2: London gold market is facing unprecedented strain. Unprecedented is in 96 00:04:18,560 --> 00:04:22,200 Speaker 2: like historic, as in like never seen before, a rapid 97 00:04:22,320 --> 00:04:26,120 Speaker 2: outflow of gold to the US comics warehouses. So the 98 00:04:26,200 --> 00:04:30,240 Speaker 2: gold is flowing from London, and not just the LBMA 99 00:04:30,279 --> 00:04:33,760 Speaker 2: but also the Boe Bank of England is flowing from 100 00:04:33,800 --> 00:04:37,200 Speaker 2: there over into the US markets, the comics warehouses. While 101 00:04:37,240 --> 00:04:40,640 Speaker 2: the LBMA data shows two hundred and seventy nine million 102 00:04:40,680 --> 00:04:45,239 Speaker 2: ounces stored on paper, they show that there's two hundred 103 00:04:45,240 --> 00:04:47,560 Speaker 2: and seventy nine ounces stored at the London vaults as 104 00:04:47,600 --> 00:04:51,279 Speaker 2: of December twenty twenty four, only thirty six million of 105 00:04:51,279 --> 00:04:54,800 Speaker 2: the two hundred and seventy nine million the float are 106 00:04:55,080 --> 00:04:58,440 Speaker 2: theoretically available. So even though they show they have two 107 00:04:58,520 --> 00:05:02,520 Speaker 2: hundred and eighty million, theoretically there's only about thirty six 108 00:05:02,720 --> 00:05:07,039 Speaker 2: million available. That means there's short big time right, a 109 00:05:07,080 --> 00:05:11,479 Speaker 2: critical liquidity shortfall against an estimated three hundred and eighty 110 00:05:11,520 --> 00:05:17,480 Speaker 2: million ounces of outstanding spot cash contracts. The spot cash contracts. 111 00:05:17,680 --> 00:05:19,599 Speaker 2: That's gonna tell us where we have to go to 112 00:05:19,640 --> 00:05:22,120 Speaker 2: look next. So there's about three hundred and eighty million 113 00:05:22,160 --> 00:05:26,880 Speaker 2: ounces of demand in these contracts spot cash contracts, but 114 00:05:27,000 --> 00:05:30,080 Speaker 2: yet there's only two hundred and seventy nine on the 115 00:05:30,080 --> 00:05:33,479 Speaker 2: books on paper. But the reality is there's only thirty 116 00:05:33,560 --> 00:05:37,719 Speaker 2: six million. Do the math, it's about ten percent. Sort 117 00:05:37,720 --> 00:05:40,400 Speaker 2: of like a fractional reserve banking. And what happens if 118 00:05:40,440 --> 00:05:43,040 Speaker 2: everybody wants to pull their money out or their gold out, 119 00:05:43,760 --> 00:05:45,040 Speaker 2: well you see a run on the banks, and that's 120 00:05:45,080 --> 00:05:48,440 Speaker 2: exactly what we're seeing. The current crisis suggests much of 121 00:05:48,480 --> 00:05:52,839 Speaker 2: the vaulted gold is either pledged to central banks etsts 122 00:05:52,960 --> 00:05:55,600 Speaker 2: or foreign governments. So it's already pledged. That's why it's 123 00:05:55,600 --> 00:05:57,839 Speaker 2: not available. Of the two hundred seventy nine million, it's 124 00:05:57,880 --> 00:06:01,640 Speaker 2: not available. This is part of what is known as rehypothecation. 125 00:06:01,760 --> 00:06:05,000 Speaker 2: We'll talk more about that in a minute. Okay, Now, 126 00:06:05,400 --> 00:06:07,680 Speaker 2: the real reason that we see the price of gold 127 00:06:07,800 --> 00:06:10,640 Speaker 2: going up is yes, because there's a massive demand. 128 00:06:11,200 --> 00:06:13,400 Speaker 1: Why is their massive demand? We already talked about the debasement. 129 00:06:13,440 --> 00:06:15,599 Speaker 2: We already talked about being able to hold your assets 130 00:06:15,640 --> 00:06:17,920 Speaker 2: in a way that governments of the United States can't 131 00:06:17,920 --> 00:06:20,800 Speaker 2: steal from you. But really we see these central banks hoarding, 132 00:06:21,680 --> 00:06:24,520 Speaker 2: and we want to understand the dynamics of these things. 133 00:06:24,560 --> 00:06:27,680 Speaker 2: So why are central banks accumulating in large quantities. I've 134 00:06:27,680 --> 00:06:29,840 Speaker 2: already sort of given you some of this accumulty goal 135 00:06:29,880 --> 00:06:34,080 Speaker 2: to diversify reserves reduce dependency on the US dollar. China 136 00:06:34,120 --> 00:06:36,719 Speaker 2: in particular has been on a gold mining spree for 137 00:06:36,800 --> 00:06:41,680 Speaker 2: the seventeenth consecutive month. Now, nobody really knows how much 138 00:06:41,720 --> 00:06:43,719 Speaker 2: gold China has, because. 139 00:06:43,560 --> 00:06:45,440 Speaker 1: Nobody can really trust the data coming out of there. 140 00:06:45,920 --> 00:06:49,680 Speaker 1: Whatever they show us, it's probably three, five, maybe even 141 00:06:49,800 --> 00:06:51,440 Speaker 1: ten times more than what they have. 142 00:06:51,520 --> 00:06:53,760 Speaker 2: But we can see here the People's Bank of China, 143 00:06:53,800 --> 00:06:57,640 Speaker 2: the PBOC, continue to streak of gold purchases it's diverse 144 00:06:57,680 --> 00:07:01,920 Speaker 2: finance reserves away from the dollar. In February, China divested divested, 145 00:07:02,120 --> 00:07:06,200 Speaker 2: meaning sold off treasuries twenty two point seven billion in 146 00:07:06,360 --> 00:07:07,159 Speaker 2: US treasuries. 147 00:07:07,240 --> 00:07:09,200 Speaker 1: Sold the treasuries to buy gold. 148 00:07:09,440 --> 00:07:12,600 Speaker 2: Strategic move by China reflects a deliberate effort to reduce 149 00:07:12,640 --> 00:07:15,640 Speaker 2: its dependency on the dollar. Shoot, these treasuries could get 150 00:07:15,640 --> 00:07:17,720 Speaker 2: taken from us, like what happened to Russia. We should 151 00:07:17,760 --> 00:07:20,680 Speaker 2: probably sell those and buy an asset like gold that 152 00:07:20,760 --> 00:07:24,000 Speaker 2: can't be taken away. China is not the only country 153 00:07:24,040 --> 00:07:26,800 Speaker 2: doing this, and it's a massive move. 154 00:07:26,840 --> 00:07:29,520 Speaker 1: The PBOC required I'm sorry, acquired. 155 00:07:29,160 --> 00:07:32,120 Speaker 2: Two hundred and twenty four tons two and twenty four 156 00:07:32,160 --> 00:07:36,480 Speaker 2: tons of which and only sixty two tons in twenty 157 00:07:36,480 --> 00:07:39,560 Speaker 2: twenty two, So from sixty two to two hundred and 158 00:07:39,560 --> 00:07:42,240 Speaker 2: twenty four they have really stepped up the rate at 159 00:07:42,240 --> 00:07:45,160 Speaker 2: their buying. Now sort of again trying to understand the 160 00:07:45,160 --> 00:07:46,520 Speaker 2: differences of these markets. 161 00:07:46,800 --> 00:07:50,040 Speaker 1: We can see that again in London the LBMA and 162 00:07:50,120 --> 00:07:50,960 Speaker 1: now tap it. 163 00:07:50,920 --> 00:07:56,120 Speaker 2: Into the BOE that London's record gold outflow is going 164 00:07:56,160 --> 00:08:00,520 Speaker 2: into US stockpiles. Now this is record again, this is historic, 165 00:08:00,560 --> 00:08:04,080 Speaker 2: this is unprecedented. We can see here that shrinking by 166 00:08:04,120 --> 00:08:09,480 Speaker 2: the fastest amount on record as banks, dealers and speculators. 167 00:08:08,840 --> 00:08:10,520 Speaker 1: Fly boy on to New York. 168 00:08:10,720 --> 00:08:13,360 Speaker 2: So they're all taking it out of the BOE and 169 00:08:13,440 --> 00:08:16,480 Speaker 2: the LBMA hands and moving it over to the US. 170 00:08:16,800 --> 00:08:18,000 Speaker 1: So what is going on? 171 00:08:18,280 --> 00:08:21,160 Speaker 2: Why is all this gold moving? Well, part of it 172 00:08:21,200 --> 00:08:22,960 Speaker 2: is because the demand is so high. 173 00:08:23,000 --> 00:08:23,880 Speaker 1: We're going to get into some of. 174 00:08:23,880 --> 00:08:27,200 Speaker 2: This paper manipulation that's breaking right now, but it's also 175 00:08:27,400 --> 00:08:29,960 Speaker 2: been because and we can see I have another chart 176 00:08:29,960 --> 00:08:31,800 Speaker 2: here just to show you how big this is. I 177 00:08:31,840 --> 00:08:33,679 Speaker 2: love to show these charts so we can see this 178 00:08:33,760 --> 00:08:37,400 Speaker 2: is the gold inventories in New York at the comics, 179 00:08:37,600 --> 00:08:38,120 Speaker 2: and you can. 180 00:08:38,040 --> 00:08:40,760 Speaker 1: See that they are absolutely exploding. That's what we call 181 00:08:41,080 --> 00:08:42,200 Speaker 1: parabolic right there. 182 00:08:42,240 --> 00:08:44,719 Speaker 2: But to understand sort of these mechanics, what we kind 183 00:08:44,720 --> 00:08:47,040 Speaker 2: of want to understand is what's really been driving this 184 00:08:47,600 --> 00:08:53,400 Speaker 2: is China. China's insatiable amount desire for gold as well 185 00:08:53,440 --> 00:08:57,080 Speaker 2: as they're you know, continued buying as well as they're 186 00:08:57,200 --> 00:09:01,480 Speaker 2: divesting from treasuries to buy more gold. More specifically them 187 00:09:01,559 --> 00:09:05,680 Speaker 2: setting up this Shanghai Gold Exchange. And what's happened in 188 00:09:05,679 --> 00:09:08,760 Speaker 2: the Shanghai Gold Exchange is it's sort of meant to 189 00:09:08,880 --> 00:09:12,040 Speaker 2: break the grip of the paper markets at the. 190 00:09:12,080 --> 00:09:14,480 Speaker 1: US with the comics and London with the LGAM may have. 191 00:09:15,200 --> 00:09:17,800 Speaker 2: So gold investors, if you're a gold investor at Goldbug, 192 00:09:17,840 --> 00:09:19,600 Speaker 2: you know this. We're talking about it for years, how 193 00:09:19,880 --> 00:09:23,120 Speaker 2: manipulated this market is because of the paper gold that's 194 00:09:23,120 --> 00:09:25,960 Speaker 2: sold against it. And the reason why that's done is 195 00:09:26,040 --> 00:09:28,800 Speaker 2: because you can't really get the gold out of the market, 196 00:09:28,840 --> 00:09:31,440 Speaker 2: so you buy them through ETFs and so then they're 197 00:09:31,480 --> 00:09:34,800 Speaker 2: able to rehypothecate, meaning loan it out, loan it out, 198 00:09:34,880 --> 00:09:37,160 Speaker 2: loan it out over and over again, and really build 199 00:09:37,200 --> 00:09:39,520 Speaker 2: up the supply of gold on paper, even though it's 200 00:09:39,559 --> 00:09:40,959 Speaker 2: not physical. I want to talk more about that in 201 00:09:41,000 --> 00:09:44,720 Speaker 2: a second. But what China did is they launched their 202 00:09:44,760 --> 00:09:48,680 Speaker 2: Shanghai Gold Exchange and now it's physically settled. That means 203 00:09:48,720 --> 00:09:52,560 Speaker 2: that I can go actually redeem and receive my gold. Now, 204 00:09:52,600 --> 00:09:55,760 Speaker 2: what's what we're finding is that that physical gold. Today, 205 00:09:56,400 --> 00:09:58,079 Speaker 2: when you're worried about a run on the bank or 206 00:09:58,080 --> 00:10:01,120 Speaker 2: a default, you want the physical. We're seeing a massive 207 00:10:01,240 --> 00:10:05,280 Speaker 2: premium being paid for physical gold. So when I can 208 00:10:05,320 --> 00:10:08,120 Speaker 2: buy it for cheaper on one market and sell it 209 00:10:08,120 --> 00:10:10,760 Speaker 2: for a higher price on another market, that's called arbitrage. 210 00:10:10,840 --> 00:10:13,560 Speaker 2: That's what traders do, and that's exactly what's been happening. 211 00:10:13,880 --> 00:10:16,920 Speaker 2: One big factor pulling Western markets upwards, the price of 212 00:10:16,960 --> 00:10:21,240 Speaker 2: gold upwards, is the arbitrage happening in China, and it's 213 00:10:21,280 --> 00:10:25,560 Speaker 2: the fact that the Shanghai International Gold Exchange SGEI is 214 00:10:25,600 --> 00:10:28,720 Speaker 2: a physically settled market, which is different from the cash 215 00:10:28,760 --> 00:10:32,199 Speaker 2: settled markets in the West, the US, in London. So 216 00:10:32,480 --> 00:10:34,760 Speaker 2: you can do your options, you can make your bet 217 00:10:34,800 --> 00:10:37,800 Speaker 2: on gold, but at the end you get settled in cash, 218 00:10:38,000 --> 00:10:38,800 Speaker 2: not physical gold. 219 00:10:39,000 --> 00:10:40,199 Speaker 1: And China's changing all. 220 00:10:40,200 --> 00:10:43,679 Speaker 2: That with a physically settled market on the scene, and 221 00:10:43,800 --> 00:10:48,000 Speaker 2: with that market trading at a significant premium above what 222 00:10:48,120 --> 00:10:48,600 Speaker 2: the West. 223 00:10:48,960 --> 00:10:50,240 Speaker 1: The US and London. 224 00:10:50,200 --> 00:10:52,880 Speaker 2: Traders were able to buy up the comics or the 225 00:10:53,000 --> 00:10:57,080 Speaker 2: LBMA futures and then demand delivery. So I bought them cheap, 226 00:10:57,160 --> 00:10:58,200 Speaker 2: and I demand delivery. 227 00:10:58,240 --> 00:10:59,480 Speaker 1: I don't want just to cash. 228 00:11:00,120 --> 00:11:03,240 Speaker 2: And then they sell the physical into Shanghai. 229 00:11:03,400 --> 00:11:04,280 Speaker 1: This is what traders do. 230 00:11:04,679 --> 00:11:08,040 Speaker 2: Traders exploit arbitrage opportunities. It's sort of like to carry 231 00:11:08,080 --> 00:11:10,480 Speaker 2: trade in Japan. Right We're always trying to buy low 232 00:11:10,520 --> 00:11:12,520 Speaker 2: and sell high in different markets at the same time. 233 00:11:13,000 --> 00:11:16,760 Speaker 2: And China, by setting up this Shanghai Gold exchange, gives 234 00:11:16,840 --> 00:11:19,360 Speaker 2: us opportunity for these traders to now buy it for 235 00:11:19,440 --> 00:11:22,559 Speaker 2: cheaper in London in the US and sell for hire 236 00:11:22,600 --> 00:11:24,840 Speaker 2: in chat. Now why is it cheaper in the US 237 00:11:24,880 --> 00:11:29,000 Speaker 2: in London, Well, a couple of reasons. Number one, again, 238 00:11:29,360 --> 00:11:32,120 Speaker 2: we know that physical gold right now at this point 239 00:11:32,200 --> 00:11:33,000 Speaker 2: is more in demand. 240 00:11:33,000 --> 00:11:35,040 Speaker 1: The governments are like, I don't trust anybody else. I 241 00:11:35,080 --> 00:11:35,640 Speaker 1: want my gold. 242 00:11:35,880 --> 00:11:38,440 Speaker 2: Also, investors are like the same, doing the same thing. 243 00:11:38,800 --> 00:11:41,840 Speaker 2: And then what happens is when the traders start getting involved, 244 00:11:41,840 --> 00:11:44,560 Speaker 2: it starts to push that even more. All right, So 245 00:11:44,640 --> 00:11:47,439 Speaker 2: that is the mechanics that really started pushing this higher. 246 00:11:47,480 --> 00:11:50,400 Speaker 2: Now there's a lot of rumors about China wanted to 247 00:11:50,679 --> 00:11:54,520 Speaker 2: have a goldback currency. I've done videos talking about how 248 00:11:54,720 --> 00:11:57,360 Speaker 2: the US might even try to preempt China in that. 249 00:11:57,800 --> 00:11:59,600 Speaker 1: We'll come back to more on that in a minute. 250 00:12:00,000 --> 00:12:04,000 Speaker 2: Okay, Now what we're really seeing is the illusion of 251 00:12:04,080 --> 00:12:05,800 Speaker 2: the gold market is starting to crack. 252 00:12:06,520 --> 00:12:09,120 Speaker 1: The paper illusion. Now we don't really know. 253 00:12:09,360 --> 00:12:12,160 Speaker 2: I've seen estimates that there are somewhere between one hundred, 254 00:12:12,400 --> 00:12:16,920 Speaker 2: three hundred to maybe even five hundred paper ounces of 255 00:12:16,960 --> 00:12:20,719 Speaker 2: gold for every one single physical ounce. And again that's 256 00:12:20,760 --> 00:12:24,960 Speaker 2: because these funds, the ETFs, they take in gold the banks. 257 00:12:24,760 --> 00:12:26,839 Speaker 1: And then they loan it out, and then they loan 258 00:12:26,920 --> 00:12:28,040 Speaker 1: it out and they load it out. That's got a 259 00:12:28,040 --> 00:12:29,960 Speaker 1: re hypothecation. Let me explain how that works. 260 00:12:30,160 --> 00:12:33,600 Speaker 2: So let's say, for example, for easy use cases, I 261 00:12:33,760 --> 00:12:37,079 Speaker 2: have a candy bar, but I'm not hungry. I don't 262 00:12:37,120 --> 00:12:38,760 Speaker 2: want to eat it, so I'm going to loan it 263 00:12:38,880 --> 00:12:41,640 Speaker 2: to my friend. Now he has a candy bar in 264 00:12:41,679 --> 00:12:44,600 Speaker 2: his hand and he owes me one. So on my books, 265 00:12:44,960 --> 00:12:46,959 Speaker 2: I shall have a candy bar, but he decides he 266 00:12:46,960 --> 00:12:48,160 Speaker 2: doesn't want to eat it, and he loans it to the 267 00:12:48,240 --> 00:12:48,600 Speaker 2: next guy. 268 00:12:48,760 --> 00:12:50,079 Speaker 1: That guy loans it to the next guy, that the 269 00:12:50,120 --> 00:12:51,240 Speaker 1: guy loans to the next guy. 270 00:12:51,480 --> 00:12:55,679 Speaker 2: Now there's five candy bars in existence, the guy who 271 00:12:55,720 --> 00:12:57,480 Speaker 2: physically has it, the guy who's O. 272 00:12:57,679 --> 00:12:59,960 Speaker 1: One O one ode one, im ode one. 273 00:13:00,320 --> 00:13:03,920 Speaker 2: So now there's five candy bars on paper, but there's 274 00:13:03,920 --> 00:13:06,760 Speaker 2: only one actual physical one. But what happens if the 275 00:13:06,800 --> 00:13:09,560 Speaker 2: guy at the end gets hungry and eats it, Well, 276 00:13:09,600 --> 00:13:13,319 Speaker 2: now he's eaten one candy bar, but five candy bars 277 00:13:13,320 --> 00:13:14,680 Speaker 2: have now disappeared. 278 00:13:15,000 --> 00:13:16,000 Speaker 1: And so that's what we're seeing. 279 00:13:16,000 --> 00:13:18,839 Speaker 2: When we start to rehypothecate this gold, we start to 280 00:13:18,880 --> 00:13:20,839 Speaker 2: expanding supply without actually adding it. 281 00:13:20,960 --> 00:13:23,160 Speaker 1: So we have all these paper claims. What we're seeing, 282 00:13:23,160 --> 00:13:24,120 Speaker 1: as I said, is. 283 00:13:24,080 --> 00:13:26,520 Speaker 2: Now people were like, I want the gold, and so 284 00:13:26,559 --> 00:13:29,920 Speaker 2: we're seeing that gold buoyon has a premium over the 285 00:13:29,920 --> 00:13:33,600 Speaker 2: paper claims, and that's why it's starting to break this 286 00:13:33,760 --> 00:13:35,880 Speaker 2: cash set of the market. Now, there wasn't a mechanism 287 00:13:35,960 --> 00:13:37,120 Speaker 2: for this before, which. 288 00:13:36,960 --> 00:13:37,760 Speaker 1: Is why it's something new. 289 00:13:37,920 --> 00:13:42,360 Speaker 2: Now gold futures contracts opting for delivery are surging, So 290 00:13:42,400 --> 00:13:45,080 Speaker 2: we have something called backwardation and this is in the 291 00:13:45,120 --> 00:13:46,000 Speaker 2: options market. 292 00:13:46,080 --> 00:13:48,160 Speaker 1: And so what this means is that people. 293 00:13:47,840 --> 00:13:51,360 Speaker 2: Are paying more today than they could pay in the future. 294 00:13:51,760 --> 00:13:54,240 Speaker 2: I'll pay a premium to get it right now rather 295 00:13:54,280 --> 00:13:56,439 Speaker 2: than waiting for it, and that shows. 296 00:13:56,120 --> 00:13:57,240 Speaker 1: The urgency that's here. 297 00:13:57,360 --> 00:13:59,000 Speaker 2: We can see that there's been a surge in gold 298 00:13:59,040 --> 00:14:01,959 Speaker 2: futures contracts for delivery and the ord of twenty eight 299 00:14:01,960 --> 00:14:03,040 Speaker 2: percent of registered goal. 300 00:14:02,960 --> 00:14:04,560 Speaker 1: Will be required to fulfill orders. 301 00:14:04,640 --> 00:14:07,880 Speaker 2: So there's massive search for delivery. Everybody wants the goal. 302 00:14:07,920 --> 00:14:11,360 Speaker 2: They don't trust the markets. A small business owner, are 303 00:14:11,400 --> 00:14:14,200 Speaker 2: you buried in all types of work keeping you from 304 00:14:14,320 --> 00:14:16,800 Speaker 2: the real thing that makes you money? Well, that's where 305 00:14:17,000 --> 00:14:19,080 Speaker 2: just Works comes in. They're the all in one platform 306 00:14:19,120 --> 00:14:20,840 Speaker 2: that supports small business growth. 307 00:14:21,040 --> 00:14:22,160 Speaker 1: You can get all. 308 00:14:22,040 --> 00:14:25,240 Speaker 2: Their tools that help with benefits like payroll and HR 309 00:14:25,320 --> 00:14:29,360 Speaker 2: and compliance with transparent pricing. 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Yes, now, 319 00:15:02,680 --> 00:15:05,520 Speaker 2: the markets are set up to not have this happen, 320 00:15:05,840 --> 00:15:08,720 Speaker 2: so it's very difficult for a trader to actually get 321 00:15:08,720 --> 00:15:10,840 Speaker 2: the gold out of the market, and it's even more 322 00:15:10,840 --> 00:15:12,480 Speaker 2: difficult to get the gold back. 323 00:15:12,280 --> 00:15:13,000 Speaker 1: Into the market. 324 00:15:13,800 --> 00:15:17,000 Speaker 2: This is a piece that I've taken from Peruvium Bowl. 325 00:15:17,040 --> 00:15:19,560 Speaker 2: Shout out to Peruvian Bowl. We'll link to the full 326 00:15:19,640 --> 00:15:20,520 Speaker 2: article down below if you. 327 00:15:20,480 --> 00:15:21,800 Speaker 1: Want to check it out. Here did some really good 328 00:15:21,800 --> 00:15:22,240 Speaker 1: work on this. 329 00:15:22,520 --> 00:15:25,800 Speaker 2: To take physical delivery, a trader must one hold a 330 00:15:25,800 --> 00:15:27,760 Speaker 2: long position in a futures contract because you have to 331 00:15:27,760 --> 00:15:30,080 Speaker 2: buy the futures contract and you have to hold it 332 00:15:30,120 --> 00:15:32,320 Speaker 2: all the way till it's expiration. Usually they're trading these 333 00:15:32,320 --> 00:15:32,600 Speaker 2: things and. 334 00:15:32,560 --> 00:15:34,240 Speaker 1: Not holding them all the way to the end. Number 335 00:15:34,280 --> 00:15:36,240 Speaker 1: two issue a delivery note to the comics. 336 00:15:36,280 --> 00:15:38,040 Speaker 2: There's a lot of paperwork formllies have to be done 337 00:15:38,160 --> 00:15:41,520 Speaker 2: painting the butt. Three receive a warehouse receipt which represents 338 00:15:41,520 --> 00:15:44,920 Speaker 2: ownership of gold in an approved depository. Key piece in 339 00:15:45,000 --> 00:15:46,080 Speaker 2: an approved depository. 340 00:15:46,160 --> 00:15:48,560 Speaker 1: Another hurdle get to jump through. Four a range for 341 00:15:48,600 --> 00:15:50,640 Speaker 1: physical withdrawal if desired. 342 00:15:50,400 --> 00:15:54,720 Speaker 2: Which involves additional fees and additional logistics and additional paint 343 00:15:54,760 --> 00:15:56,160 Speaker 2: in the butt that makes it very difficult. 344 00:15:56,400 --> 00:15:57,360 Speaker 1: Five gold is. 345 00:15:57,280 --> 00:16:00,560 Speaker 2: Delivered and one hundred troy ounce bars, and an investor 346 00:16:00,640 --> 00:16:04,040 Speaker 2: must purchase contracts in multiples of one hundred ounces to 347 00:16:04,080 --> 00:16:04,680 Speaker 2: take delivery. 348 00:16:04,760 --> 00:16:08,080 Speaker 1: This is not for small players. There's a hundred ounce minimum. 349 00:16:08,640 --> 00:16:10,760 Speaker 1: You can do the math. This is a different amount 350 00:16:10,760 --> 00:16:11,280 Speaker 1: of capital. 351 00:16:12,000 --> 00:16:16,880 Speaker 2: Comics only allows deliveries from a few approved depositories. So 352 00:16:16,920 --> 00:16:19,320 Speaker 2: now if you want to take the gold out and 353 00:16:19,360 --> 00:16:21,160 Speaker 2: then you want to put it back in, that might 354 00:16:21,240 --> 00:16:23,000 Speaker 2: be a problem because they only allow it from a 355 00:16:23,000 --> 00:16:27,200 Speaker 2: few approved depositories such as Brinks, JP Morgan and Malcolm Emett. 356 00:16:27,680 --> 00:16:32,600 Speaker 2: Moving the gold out of these vaults requires additional approvals 357 00:16:33,000 --> 00:16:36,440 Speaker 2: and transport logistics and fees. So again you can only 358 00:16:36,440 --> 00:16:38,440 Speaker 2: get it out to a couple of places. But that's 359 00:16:38,840 --> 00:16:41,680 Speaker 2: even more expensive and even more time consuming and so forth. 360 00:16:41,960 --> 00:16:46,800 Speaker 1: Taking physical delivery is expensive, including storage fees, insurance, transportation costs. 361 00:16:47,000 --> 00:16:48,280 Speaker 1: If you don't know, gold is. 362 00:16:48,280 --> 00:16:51,119 Speaker 2: Heavy, so to take delivery of it is very expensive. 363 00:16:51,440 --> 00:16:55,680 Speaker 1: But then if the gold is withdrawn for personal storage, 364 00:16:55,800 --> 00:17:00,840 Speaker 1: it may lose its comics good delivery designation, the status, 365 00:17:00,920 --> 00:17:03,200 Speaker 1: making it harder to resell it at market prices. 366 00:17:03,200 --> 00:17:06,760 Speaker 2: So they do almost everything they can to keep people 367 00:17:06,840 --> 00:17:10,080 Speaker 2: from taking the physical out. Why because they want to 368 00:17:10,119 --> 00:17:12,160 Speaker 2: retain control of it so they can continue to having 369 00:17:12,160 --> 00:17:14,760 Speaker 2: it on the books to rehypothecate it over and over 370 00:17:14,880 --> 00:17:18,600 Speaker 2: and over. That's why ninety percent of trading is on paper. 371 00:17:18,800 --> 00:17:21,400 Speaker 2: They can sell naked shorts to depress the price all 372 00:17:21,480 --> 00:17:26,080 Speaker 2: these things. But again now they're seeing these huge withdraws 373 00:17:26,119 --> 00:17:29,240 Speaker 2: and it's moving, and we can see here that gold 374 00:17:29,400 --> 00:17:32,960 Speaker 2: says here bullion banks are borrowing GLD, so GLD. 375 00:17:32,760 --> 00:17:34,600 Speaker 1: Is one of the biggest gold ETFs out there. 376 00:17:34,760 --> 00:17:38,240 Speaker 2: Bullion banks are borrowing GLD shares and converting the units 377 00:17:38,280 --> 00:17:40,119 Speaker 2: to physical and. 378 00:17:40,000 --> 00:17:42,800 Speaker 1: Gaining control over the metal. 379 00:17:43,359 --> 00:17:45,760 Speaker 2: So they're borrowing that they're buying and they're trying to 380 00:17:45,760 --> 00:17:49,159 Speaker 2: convert as fast they can. GLD ETF alert. The borrowing 381 00:17:49,200 --> 00:17:52,719 Speaker 2: fee on g GLD ETF has gone vertical today. 382 00:17:53,760 --> 00:17:56,320 Speaker 1: Why because of the demand for everyone borrowing. 383 00:17:56,320 --> 00:17:58,760 Speaker 2: They'll try to fix the system, where I should say 384 00:17:58,800 --> 00:18:01,880 Speaker 2: they're trying to paper over the system, which I'll show 385 00:18:01,920 --> 00:18:04,600 Speaker 2: you the two options we have for that in a second. 386 00:18:04,680 --> 00:18:06,040 Speaker 2: But we can see the price of gold set a 387 00:18:06,040 --> 00:18:09,640 Speaker 2: new record high on Friday's data showed stockpiles in London. 388 00:18:10,480 --> 00:18:15,520 Speaker 2: Data showed stockpiles in London shrinking by the fastest amount 389 00:18:15,680 --> 00:18:16,880 Speaker 2: on record. 390 00:18:17,119 --> 00:18:20,159 Speaker 1: So again getting completely drained speculators fly boy on to 391 00:18:20,320 --> 00:18:24,400 Speaker 1: New York. London's gold fixed today above twenty to thirty five. 392 00:18:24,400 --> 00:18:25,080 Speaker 1: We don't work about the. 393 00:18:25,080 --> 00:18:28,000 Speaker 2: Pricing, but we can see that it's these discrepancies the 394 00:18:28,040 --> 00:18:31,160 Speaker 2: traders are going after. This is a really cool charge 395 00:18:31,400 --> 00:18:34,679 Speaker 2: from shift shift gold. And we can see this is 396 00:18:34,840 --> 00:18:37,600 Speaker 2: gold for deliveries, and so again you can sort of 397 00:18:37,600 --> 00:18:41,840 Speaker 2: see this baseline of how much gold is out for delivery. Now, 398 00:18:41,880 --> 00:18:45,240 Speaker 2: typically January is a very low month. And look at 399 00:18:45,240 --> 00:18:47,880 Speaker 2: this record that we've set for January twenty twenty five, 400 00:18:48,520 --> 00:18:51,000 Speaker 2: way above normal, way above. 401 00:18:50,800 --> 00:18:53,119 Speaker 1: Where we see January. And so we can see there's 402 00:18:53,160 --> 00:18:57,359 Speaker 1: this urgency. People are freaking out. 403 00:18:57,680 --> 00:19:01,480 Speaker 2: They're paying massive premiums to get hand on the physical 404 00:19:01,920 --> 00:19:07,440 Speaker 2: Why is that? That's because the entire fundamental market is shifting, 405 00:19:07,600 --> 00:19:10,000 Speaker 2: all right, So what's next? Where do we go from here? Well, 406 00:19:10,040 --> 00:19:13,280 Speaker 2: I really see two options, two ways out. Now, this 407 00:19:13,400 --> 00:19:16,960 Speaker 2: is a fundamental transformation of the entire gold market. 408 00:19:17,200 --> 00:19:19,240 Speaker 1: But we only have to look back to. 409 00:19:19,280 --> 00:19:22,200 Speaker 2: History to see when this has happened before. In about 410 00:19:22,240 --> 00:19:24,119 Speaker 2: eighty years, you know, about every eight years we have 411 00:19:24,160 --> 00:19:27,200 Speaker 2: this financial revolution, and we can see exactly what happened 412 00:19:27,240 --> 00:19:29,200 Speaker 2: last time. So let me show you what history tells us. 413 00:19:29,200 --> 00:19:31,680 Speaker 1: Now. The first thing is scenario number one. They try 414 00:19:31,720 --> 00:19:32,840 Speaker 1: to patch the cracks. 415 00:19:32,840 --> 00:19:35,119 Speaker 2: Of course, they're going to how can we patch the 416 00:19:35,160 --> 00:19:36,800 Speaker 2: cracks in this scenario to make it look like we 417 00:19:36,800 --> 00:19:40,760 Speaker 2: don't have a problem. So this gold depository could on paper, 418 00:19:40,880 --> 00:19:43,119 Speaker 2: loan more to this gold depository so they could double 419 00:19:43,160 --> 00:19:44,280 Speaker 2: count them for example. 420 00:19:44,440 --> 00:19:47,200 Speaker 1: They can borrow back and forth. But the problem is. 421 00:19:47,680 --> 00:19:51,480 Speaker 2: Now we have a physically settled market and this is 422 00:19:51,520 --> 00:19:54,520 Speaker 2: what changed everything. So as I already showed you there 423 00:19:54,880 --> 00:19:57,760 Speaker 2: in the LBMA has two hundred and seventy nine supposedly 424 00:19:57,760 --> 00:19:59,360 Speaker 2: available on their books. 425 00:20:00,000 --> 00:20:01,400 Speaker 1: There's only thirty six. 426 00:20:01,320 --> 00:20:04,600 Speaker 2: Million available for draw but there's over three hundred million 427 00:20:04,640 --> 00:20:05,200 Speaker 2: in demand. 428 00:20:05,880 --> 00:20:09,399 Speaker 1: When that starts to be physically settled, then we have 429 00:20:09,480 --> 00:20:10,000 Speaker 1: a problem. 430 00:20:10,080 --> 00:20:11,879 Speaker 2: So what happens is in the beginning, they try to 431 00:20:11,880 --> 00:20:13,960 Speaker 2: patch the cracks, they try to loan to each other, 432 00:20:14,119 --> 00:20:16,720 Speaker 2: they try to show that they have it to maybe 433 00:20:16,800 --> 00:20:20,120 Speaker 2: bring some confidence back into the market right now. It's 434 00:20:20,160 --> 00:20:21,520 Speaker 2: like if there was a run on the bank, you 435 00:20:21,600 --> 00:20:23,600 Speaker 2: need to show everybody, hey, you don't need to pull 436 00:20:23,600 --> 00:20:23,960 Speaker 2: it out. 437 00:20:24,119 --> 00:20:26,560 Speaker 1: It's very expensive, it's very hard, it's very time consuming 438 00:20:26,600 --> 00:20:28,240 Speaker 1: to get it out. It's better to keep it here. 439 00:20:28,280 --> 00:20:29,400 Speaker 1: Look how safe we are. 440 00:20:29,880 --> 00:20:33,640 Speaker 2: But we can see that they're also trying to help 441 00:20:33,640 --> 00:20:35,000 Speaker 2: each other out as best as we can. Here we 442 00:20:35,040 --> 00:20:39,919 Speaker 2: have US demand squeezes, India's gold supply leasing rates rise 443 00:20:40,040 --> 00:20:42,760 Speaker 2: to records, so they're leasing it, they're borrowing it, they're 444 00:20:42,800 --> 00:20:44,280 Speaker 2: putting it on their books to make it look like 445 00:20:44,280 --> 00:20:44,720 Speaker 2: they have it. 446 00:20:44,880 --> 00:20:47,639 Speaker 1: Now what we can see, why is it all moving. 447 00:20:47,400 --> 00:20:50,719 Speaker 2: From London, the WMA and Bank of England over to 448 00:20:50,960 --> 00:20:53,399 Speaker 2: the US. Well, the US is also trying to prepare 449 00:20:53,400 --> 00:20:56,000 Speaker 2: for this, so they're all trying to patch the cracks. 450 00:20:56,040 --> 00:20:59,280 Speaker 2: But again, history gives us so many valuable lessons and 451 00:21:00,080 --> 00:21:03,639 Speaker 2: shows us what happens in the gold markets when they 452 00:21:03,440 --> 00:21:07,720 Speaker 2: become over manipulated and they're trying to patch the cracks. 453 00:21:07,880 --> 00:21:10,720 Speaker 2: So we can see back here something called the London 454 00:21:10,800 --> 00:21:11,600 Speaker 2: gold pool. 455 00:21:11,960 --> 00:21:13,040 Speaker 1: Now you might. 456 00:21:12,960 --> 00:21:16,000 Speaker 2: Remember in nineteen forty four we had the Bretonwood's Agreement 457 00:21:16,000 --> 00:21:19,399 Speaker 2: where the entire world went onto a gold back standard. 458 00:21:19,440 --> 00:21:21,320 Speaker 2: The US dollar would be the reserve currency of the world. 459 00:21:21,720 --> 00:21:24,680 Speaker 2: It'd be pegged two gold, so thirty five US dollars 460 00:21:24,720 --> 00:21:27,040 Speaker 2: would equal one ounce of gold. Then the whole world 461 00:21:27,080 --> 00:21:28,520 Speaker 2: would peg to the US dollar. 462 00:21:29,000 --> 00:21:29,880 Speaker 1: But the problem is. 463 00:21:30,000 --> 00:21:34,240 Speaker 2: Pegs never work. Traders are always going to exploit those pegs, 464 00:21:34,280 --> 00:21:37,280 Speaker 2: and we also have the problem with humans and governments 465 00:21:37,320 --> 00:21:38,880 Speaker 2: wanting to always print more. 466 00:21:38,880 --> 00:21:39,840 Speaker 1: Manipulate the system. 467 00:21:39,880 --> 00:21:42,160 Speaker 2: And so we can see this is exactly what happened 468 00:21:42,840 --> 00:21:46,320 Speaker 2: back in the nineteen sixties. We had the London Gold Pool, 469 00:21:46,520 --> 00:21:48,879 Speaker 2: and so basically this is the same situation, a very 470 00:21:48,880 --> 00:21:50,920 Speaker 2: similar situation to what we're seeing now. And it was 471 00:21:50,960 --> 00:21:53,640 Speaker 2: the pooling of gold reserves by a group of eight 472 00:21:53,800 --> 00:21:57,480 Speaker 2: central banks, so the United States and seven European countries. 473 00:21:57,600 --> 00:22:00,400 Speaker 1: So they all pooled their gold to try to help 474 00:22:00,400 --> 00:22:01,280 Speaker 1: each other's. 475 00:22:01,000 --> 00:22:03,520 Speaker 2: Books, to show that they had enough liquidity so they 476 00:22:03,560 --> 00:22:07,480 Speaker 2: wouldn't break the system down, all right, So on November first, 477 00:22:07,600 --> 00:22:10,919 Speaker 2: nineteen sixty one, they cooperated in maintaining the Bretonwood system 478 00:22:10,960 --> 00:22:12,879 Speaker 2: that was set up in nineteen forty four. It was 479 00:22:12,960 --> 00:22:16,119 Speaker 2: already breaking apart in nineteen sixty one, that's how quick 480 00:22:16,440 --> 00:22:19,440 Speaker 2: these things fall apart, the system of fixed rate convertible 481 00:22:19,480 --> 00:22:22,639 Speaker 2: currencies and defending this is the whole thing, defending the 482 00:22:22,640 --> 00:22:26,600 Speaker 2: price of gold at thirty five dollars per ounce. And 483 00:22:26,640 --> 00:22:30,080 Speaker 2: so they did all these interventions in the London gold market, 484 00:22:30,320 --> 00:22:34,680 Speaker 2: the LBMA, all right, the central banks coordinated, concealed, I'm sorry, 485 00:22:34,680 --> 00:22:38,600 Speaker 2: concerted methods working in unison, working together of gold sales 486 00:22:38,800 --> 00:22:41,280 Speaker 2: to balance spikes in the market price of gold. 487 00:22:41,440 --> 00:22:43,240 Speaker 1: So when the price of gold was spiking in. 488 00:22:43,240 --> 00:22:46,080 Speaker 2: Different markets, they would work in a concerted way, in 489 00:22:46,359 --> 00:22:50,439 Speaker 2: in a group way, to dump more gold, more supply 490 00:22:50,480 --> 00:22:53,479 Speaker 2: into the markets to bring those prices back down. But 491 00:22:53,520 --> 00:22:56,520 Speaker 2: the problem is, again is that traders will continue to 492 00:22:56,520 --> 00:22:57,440 Speaker 2: exploit that, and. 493 00:22:57,400 --> 00:23:00,399 Speaker 1: The problem is you start to run out of gold. 494 00:23:00,440 --> 00:23:01,640 Speaker 1: And that's exactly what happened. 495 00:23:01,800 --> 00:23:05,040 Speaker 2: The price controls were successful for six years until the 496 00:23:05,119 --> 00:23:09,800 Speaker 2: system became unworkable. They could no longer suppress and manipulate 497 00:23:09,800 --> 00:23:14,160 Speaker 2: the price. So China set up their physically settled gold 498 00:23:14,240 --> 00:23:18,719 Speaker 2: market years ago. We're seen coming to an end just 499 00:23:18,760 --> 00:23:21,760 Speaker 2: like it did here. It says the price of gold 500 00:23:22,160 --> 00:23:24,760 Speaker 2: peg was too low and after runs on gold, the 501 00:23:24,800 --> 00:23:27,919 Speaker 2: British pound and the US dollar occurred. France decided to 502 00:23:27,960 --> 00:23:31,560 Speaker 2: withdraw from the pool. The London Gold Pool collapsed in. 503 00:23:31,480 --> 00:23:34,960 Speaker 1: March of nineteen sixty eight, so a few years after 504 00:23:35,000 --> 00:23:36,439 Speaker 1: they set it up. But think about this. 505 00:23:36,480 --> 00:23:38,280 Speaker 2: Here says that the price of gold was too low, 506 00:23:39,040 --> 00:23:40,840 Speaker 2: so the price of gold needed to come up because 507 00:23:40,840 --> 00:23:44,280 Speaker 2: there was more demand. And after runs on gold, the 508 00:23:44,320 --> 00:23:47,719 Speaker 2: British pound and the US dollar occurred, and so runs 509 00:23:47,720 --> 00:23:49,560 Speaker 2: on gold everyone was trying to get as much gold 510 00:23:49,560 --> 00:23:51,760 Speaker 2: as as they put out of the system as well 511 00:23:51,800 --> 00:23:53,639 Speaker 2: as runs on the pound and the dollar. 512 00:23:54,280 --> 00:23:56,680 Speaker 1: They had to go ahead and drop it says right here. 513 00:23:56,800 --> 00:24:00,200 Speaker 2: But this gold window collapsed in nineteen seventy one finally, 514 00:24:00,560 --> 00:24:02,480 Speaker 2: so the controls followed with an effort to suppress the 515 00:24:02,480 --> 00:24:04,960 Speaker 2: gold price. They tried to keep the game going for 516 00:24:04,960 --> 00:24:07,520 Speaker 2: a little bit longer, but it closed officially. Nineteen seventy 517 00:24:07,600 --> 00:24:10,240 Speaker 2: one with the Nixon Shock resulted in the onset of 518 00:24:10,280 --> 00:24:12,480 Speaker 2: the gold bowl market, which saw the price of gold 519 00:24:12,520 --> 00:24:17,040 Speaker 2: appreciate rapidly to US eight hundred and fifty dollars by 520 00:24:17,240 --> 00:24:20,240 Speaker 2: nineteen eighty, So nineteen seventy one it was thirty five 521 00:24:20,280 --> 00:24:23,239 Speaker 2: dollars and by nineteen eighty nine, years later it went 522 00:24:23,280 --> 00:24:27,680 Speaker 2: from thirty five dollars to eight hundred and fifty dollars win. 523 00:24:27,760 --> 00:24:31,440 Speaker 2: The concerted effort, the London Pool win. The manipulation broke. 524 00:24:31,800 --> 00:24:36,480 Speaker 2: And what broke it the physical demand of that gold. Okay, 525 00:24:36,680 --> 00:24:38,520 Speaker 2: now what does this mean for all of us? Well, 526 00:24:38,760 --> 00:24:42,199 Speaker 2: this means that gold is surging. I expect gold to 527 00:24:42,240 --> 00:24:44,560 Speaker 2: continue surging for the reasons we've already given you. 528 00:24:45,240 --> 00:24:48,520 Speaker 1: Mainly, governments don't want to hold US treasuries that could 529 00:24:48,520 --> 00:24:50,800 Speaker 1: be seized from them, like what happened to Russia. Number two. 530 00:24:51,359 --> 00:24:53,159 Speaker 2: The entire world, not just the US, but all the 531 00:24:53,200 --> 00:24:56,640 Speaker 2: central banks are doing massive monetary stimulus and will continue 532 00:24:56,680 --> 00:24:58,560 Speaker 2: to increase that monetary stimulus, and. 533 00:24:58,480 --> 00:25:00,560 Speaker 1: So gold will be that inflation hedge. 534 00:25:00,880 --> 00:25:04,800 Speaker 2: Then we add on top of it the fundamental breaking 535 00:25:05,000 --> 00:25:08,720 Speaker 2: of the system and this cash settle market doing that, 536 00:25:09,000 --> 00:25:11,800 Speaker 2: and so we expect gold to go higher. Right, So 537 00:25:11,880 --> 00:25:14,520 Speaker 2: what the smart money doing is doing is moving to gold. 538 00:25:15,040 --> 00:25:16,920 Speaker 1: You and I were considered dumb money. Hate to break 539 00:25:16,920 --> 00:25:17,199 Speaker 1: it to you. 540 00:25:17,200 --> 00:25:20,920 Speaker 2: The smart money is the institutions, the funds, and yes, 541 00:25:21,240 --> 00:25:22,880 Speaker 2: central banks, they're all moving to gold. 542 00:25:22,920 --> 00:25:24,240 Speaker 1: I already showed you the record. 543 00:25:24,000 --> 00:25:27,440 Speaker 2: Demand, and what we're seeing is that physical is much 544 00:25:27,520 --> 00:25:29,760 Speaker 2: more in demand than paper at this point, as I've 545 00:25:29,800 --> 00:25:32,359 Speaker 2: shown you, they're willing to pay a massive premium for 546 00:25:32,440 --> 00:25:36,200 Speaker 2: the physical over paper in the system because that paper 547 00:25:36,359 --> 00:25:37,800 Speaker 2: might not be there. So if you have a bunch 548 00:25:37,840 --> 00:25:40,280 Speaker 2: of paper gold, you might want to consider moving that 549 00:25:40,320 --> 00:25:42,800 Speaker 2: into some physical gold that could at least be stored 550 00:25:42,840 --> 00:25:46,240 Speaker 2: in a vault somewhere else like that. Also, gold mining 551 00:25:46,320 --> 00:25:48,480 Speaker 2: socks should continue to do good. I mean, if they've 552 00:25:48,480 --> 00:25:49,960 Speaker 2: they've been struggling in the last couple of years. 553 00:25:50,000 --> 00:25:51,760 Speaker 1: Inflation has pushed costs up super high. 554 00:25:51,880 --> 00:25:53,600 Speaker 2: The price of gold hasn't been moving that much, but 555 00:25:53,680 --> 00:25:56,640 Speaker 2: with the demand for physical moving up, we might see 556 00:25:56,680 --> 00:26:00,000 Speaker 2: an increased demand for gold mining. Also, what we're seeing 557 00:26:00,160 --> 00:26:02,800 Speaker 2: is a massive demand for bitcoin, which is digital gold. 558 00:26:03,080 --> 00:26:05,639 Speaker 2: And bitcoin is not just in demand by retail like 559 00:26:05,720 --> 00:26:08,879 Speaker 2: US now, it's also wall streets, institutions, and even central banks. 560 00:26:09,119 --> 00:26:10,640 Speaker 2: I think we have twenty one states in the United 561 00:26:10,640 --> 00:26:13,360 Speaker 2: States doing a bitcoin reserve or working on one other 562 00:26:13,440 --> 00:26:16,120 Speaker 2: nations as well. We've seen bitcoin move up I think 563 00:26:16,320 --> 00:26:20,080 Speaker 2: five hundred percent over gold in that same timeframe. And 564 00:26:20,080 --> 00:26:23,400 Speaker 2: then most importantly, think about the long term. All Right, 565 00:26:23,440 --> 00:26:25,160 Speaker 2: as I showed you that gold chart in the beginning, 566 00:26:25,480 --> 00:26:27,520 Speaker 2: nothing moves up or down in a straight line. 567 00:26:27,600 --> 00:26:29,000 Speaker 1: This will not be a smooth path. 568 00:26:29,040 --> 00:26:32,159 Speaker 2: We're talking about the change of this eighty year old system, 569 00:26:32,200 --> 00:26:35,159 Speaker 2: this financial revolution cycle coming to an end, and an 570 00:26:35,320 --> 00:26:39,080 Speaker 2: entire new system being introduced. But when this all happens, 571 00:26:39,119 --> 00:26:44,120 Speaker 2: expect the price of gold to pop ten twenty thousand dollars. 572 00:26:45,000 --> 00:26:45,800 Speaker 1: I don't think it's if. 573 00:26:45,800 --> 00:26:47,399 Speaker 2: I think it's a matter of when and if you 574 00:26:47,440 --> 00:26:49,240 Speaker 2: want to find out more about that. I did a 575 00:26:49,280 --> 00:26:51,960 Speaker 2: whole video on this to show you why I think 576 00:26:52,000 --> 00:26:54,159 Speaker 2: the US will do this and circumvent it. 577 00:26:54,240 --> 00:26:55,600 Speaker 1: Let's go ahead and put that video right here if 578 00:26:55,640 --> 00:26:57,239 Speaker 1: you want to watch that. Otherwise, let me know what 579 00:26:57,240 --> 00:26:58,040 Speaker 1: you think about this video. 580 00:26:58,160 --> 00:26:59,800 Speaker 2: Thumbs up if you like it, thumbs down if you don't, 581 00:26:59,800 --> 00:27:01,640 Speaker 2: that's okay. At least tell me why in the comments. 582 00:27:01,840 --> 00:27:04,240 Speaker 1: And that's what I got. Right to your success. I'm 583 00:27:04,240 --> 00:27:04,440 Speaker 1: out