We’re going to go over three reasons why it makes no sense that the surge in gold supplies from London or from wherever into the COMEX. The surge has been I think 12 million ounces so far. It’s the second strongest surge ever with 2020 still stronger. But we have deliveries tonight from an active February gold contract. They go to delivery tonight. We could see record deliveries and all of those drivers are probably into the COMEX. Why is this happening? It’s not tariffs. Here are three reasons why. And before we get into those three reasons, this video is brought to you by my sub-stack.

I discussed this step by step in the last post there. Check the link in the description below. Become a free subscriber and if you would like to support me before the dollar collapses, then become a paid subscriber for three times a week post. I try not to overdo it, but I do talk about important stuff there. I don’t think anybody else is. First things first, just to put this surge into perspective, this is the Brinks eligible gold stockpile. Eligible is not for sale against contracts. It’s privately owned by whoever banks or jewelers or whoever has gold, huge players.

So if you look at this chart very carefully, it’s very hard to see. But if you look at the number on top, it says 4,919,114 ounces. That puts this current supply of eligible gold in the Brinks vault to almost 5 million ounces. So I put a red line where that’s supposed to be. If you see here, the black line is a little bit thicker. So you can see the surge here going to about over here where the red line is. This was the COVID panic peak. That was the last time it was a surge like this.

This is almost twice as much gold flowing into flooding into the Brinks vault. Other vaults are also seeing huge amounts, including the JP Morgan vault, but not as much as the Brinks vault right now and eligible supplies. So this puts it into perspective. Something is happening here. I don’t think it’s tariffs. Why isn’t it tariffs? This is really crazy. So this is from Alistair McLeod’s substack. He puts forward a pretty obvious reason. He says in his substack, a moment’s thought allows us to dismiss targeted tariffs against Mexican silver and Canadian gold. They lose their identity when refined.

As for general tariffs, that is almost certainly nonsense as well, because Trump has always said tariffs would be imposed on manufacturing, not commodities. That is Alistair McLeod’s opinion. You can agree with it or not, but you’ll see that the second reason kind of reinforces this one, that the idea of tariff and gold and the fact that there would be such a huge flow of gold into New York because of tariffs doesn’t make sense. For this reason, there is no need to import gold in order to benefit from owning it. This is how the futures market functions.

This is how they stack more paper on top of the gold supply because you do not need to have the gold in the country where you’re in or benefit from the price protection for the inflation protection that it affords you. So first point, if Trump were to impose tariffs on oil, right, then you’d need to import the oil. Let’s say there is a tariff on oil going into effect on, I don’t know, March 1st. So then companies that use oil to process gasoline would need to import the oil before the tariffs take into effect because they need the oil to process it.

They need to import the oil before the tariff is imposed in order to use the oil. That makes sense for a consumable commodity. Same with any other consumable commodity. If you use the actual thing, then you’ll need to import it before the tariff takes place. If you use the actual thing, you will need to import that thing before the tariff takes effect. Third point, there is no need to import gold unless you are a jeweler. You can just own the title and keep it in London. Why would you need it in New York unless you’re a jeweler? And next point, the idea of jewelers panic importing gold bullion is ludicrous.

Why is it so ludicrous? Because gold supplies is the third reason we’re already double pre-COVID levels prior to the recent surge. You can see here. This is the total gold stockpile in the comics at 30.8 million ounces. So we’ve gone from about 18 million late 2024 to 30.8 million, about 31 million. It’s a big surge. It’s not as big as this one, but it’s a big surge. Pre-COVID, the total stockpile of gold in the comics is about 9 million ounces. Went up to 38 million, 40 million, something like that. Now, pre-surge, we were at the total 18 million ounces.

We were already twice as high as we were pre-COVID, pre-lockdowns. There is no reason that jewelers would have to suddenly stockpile huge amounts of gold to use in their industry if there’s already twice as much gold as there was back here. Makes no sense. Something else is going on here. Exactly what it is is hard to say because if you were to ask anyone what caused the huge influx of gold in 2020, some people have theories, they’re kind of convoluted. I don’t really understand any of them. People think I understand everything. I don’t.

I also don’t pretend to, but I do know that 2020 was a huge dollar crisis, a huge financial crisis, the entire world shut down and the result was gold flowing into New York. It is happening again. Something is happening in the plumbing of the financial system deep down in the dudges. We don’t know exactly what it is, but it is brewing. I suggest you don’t panic. If you are panicking, you have not been stacking. If you have been stacking, you are not panicking. Stay calm, stay collected, stay focused and understand that gold is money and the dollar is just its derivative.

To paraphrase the Muslims, there is no gold but gold and the dollar is its derivative. It’s getting exciting out there. I’ll see you guys soon. So your weekend was a total bust? No, I got to see Donald Trump waiting for an elevator. I heard you saw Donald Trump at your convention. Yeah, so I’m waiting for an elevator. [tr:trw].

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