And now that the whole thing seems to be resolved, the gold that flowed into the US in the tariff bet is now slowly trickling out. Well, hello there my friends and happy Wednesday because there you go. Recording at 8 30 a.m. On Wednesday and as you can see the gold price not over 3,000 not over 3,100 not over 3,200. Well, yeah, I guess it’s over 3,200 but slightly over 3,200 now is another $83 move. This one really took off last night. You can see here we were at 6 p.m. eastern time 3,248 and seems like in the east they are interested in these yellow door stoppers so if you fit into the category of people who’s ever on described yourself as a long-suffering people might have called me a gold bug.

Well then today is your day because speechless on this one. We had a couple hundred dollar days last week. May have another one here today Wednesday. We’ll see where we end up and plenty to dig into though including I wanted to update you on the bank short positions that as I talked about all last week that we

expected that to see some short covering on that sell-off the week of the reciprocal tariffs which we did get and fortunately uh we’ll we’ll touch on that in a minute but here a look at silver just touched just crossed over 33 in the futures so I know we had the 35 49 I believe was the high right and silver was back over 35 bucks right as those reciprocal tariff announcements came out there you see 35 49 is the high that we reached a couple weeks earlier saw print down below 28 that was a brief one but there we are back over 33 and again not not to say that we knew it would exactly play out like this but hopefully something just for

your own mental sanity as we watch whatever these financial markets have in store going forward and I say that in the sense that you know we’ll see although given what is happening right now I mean certainly things could calm down but regardless of which direction the price continues to go in I think we’re going to be seeing a lot of volatility and we’ll see days where there’s uh silver price up over a dollar maybe more we will see days probably where it is down equally large amounts although I think just as I grow older and hopefully a little wiser maybe a little more mature I’m working on that one too but I think the day-to-day

handling that at least that’s something that’s made this a lot more fun and enjoyable for me where and I and I would say to ask yourself this question if you’re holding physical bullion even on a day where the price may be down a bit 10 years from now do you think the price of silver is going to be higher lower than 33 and then if you’re still worried about what it’s doing on a given day then well you’re on your own or you could write in maybe we’ll get a silver therapy line going hopefully that won’t be necessary and let’s take a quick look here’s the dollar index below par again having another another tough day as you might expect

and fortunately uh for the treasury and scott percent the yields are relatively steady we’ve seen some volatility though here uh that’s back in march 16th and you can see we’re basically right back to where we started so had that big spike has come in a bit uh now this was when you really saw the stock market selling off and money was flowing into bonds we’ve seen stock markets continue to sell off for the most part let’s take a quick look at the smp there’s a nasdaq still below 17 000 and that’s just something i would suggest to keep an eye on if you see days where the stock market is down quite a lot but the bond market does

not rally then perhaps that would connect with some of the themes that we’re going to dig into so you can see stock markets did have that monster day i believe that was a record i don’t remember seeing anything um quite as significant as that and leveled off still lower uh quite a bit lower from february and with that said let us dig into the news because quite a bit happening here we see bloomberg on top of it i got my bloomberg subscription back was without that for a while although i’m digging it now got a nice deal on it and uh interesting to see directly what i would say bloomberg uh unofficially at least in my mind feels a little

bit more of an institutional audience perhaps than uh cnbc and here they’re talking about gold rising on trade tensions and their quote from evy hambrow thematic and sector investing global head at blackrock that’s quite a title i wonder how you fit that on a business card but mentions i’d love to have a pound for every time someone said it’s a record high in gold in the last few weeks can certainly associate with that feeling and in terms of why that might be happening well obviously you have gold edges higher this was a couple days ago as traders react to expanding trade war which they continue to believe there’s going to be one

day where there’s some agreement now do golden silver prices just plummet back down at that point i don’t think so and we will touch on why although here it’s interesting they were noting the goldman sachs upgrade goldman calling for a rally to 4000 by mid 2026 interesting target i could see that out i could also see things getting a little bit out of control before then and in either case just to the degree that bloomberg is publishing goldman sachs giving a 4000 target i think has its impact also how fortunate for the banks that they were able to cover a lot of those short positions on the co-max before this latest leg of the rally took off

and let us do a recap there we posted this on the arcade economics golden silver deli sub stack on friday if you’ve not checked that out feel free there’s a free version too where you get at least one column a week sometimes more and we cover a lot of these things that i feel are worthwhile to keep an eye on so again this was the reporting week that covered the tuesday before the tariff announcements on the second i believe it was and through the following week so that that wednesday thursday and friday when silver was going down below 28 gold below 3000 kept mentioning that will be interesting to see what was happening

and sure enough there you see the banks on the gold side closing out 20,338 shorts adding 2800 long so that’s about 23,000 contracts there in this middle bar you can see this is the bank short the bank position if it’s below this purple line which is zero that means they are short now in gold you can see we just recently earlier this year hit a new record for the most short the banks have collectively collectively ever been and i will offer the caveat there are different views of how hedged they are with offsetting positions in london i’ve heard some assert that they’re essentially neutral not sure i buy that i’ve heard some say

they’re completely naked and they have nothing i would lean maybe 75 towards that direction then they’re fully hedged maybe somewhere in between we don’t know exactly yet to the degree that there are still some strong correlations between the short positions and some of the price movements which we will not dig into today i think there’s a couple hundred videos on the channel where we’ve done that already so but maybe another day yet in either case you can see here they were they were pretty darn short and gold they started covering a couple weeks earlier although if we take a look at silver there they covered 7 000 shorts

at 150 longs so bringing the silver position back in quite a bit now silver had gotten to the second most short so they were more short than um the peak hit last year in the fall and aside from july 2016 uh that was the year silver went from 14 to 20 and then came back down as i’m sure many of you remember some of you uh maybe hopped in after that so ask ask one of the old timers about that someday yet in either case you can see quite a bit of short covering interesting timing given that that happened the week after robert gotlieb of jp morgan talked about how big these short positions were said that a bank may be very

exposed then you have the tariffs which i still think the actual announcement may be a little more severe in tariff levels than expected but i mean it wasn’t like we just got blindsided with some unexpected news yet anyway banks covered a lot of shorts prices are back up and now that the whole thing seems to be resolved the gold that flowed into the u.s in the tariff bet is now slowly trickling out let’s go figure that especially odd given that don’t believe there were plans to place additional tariffs on england so why that was necessary we’ll leave aside for today but some interesting comments tens of billions of dollars worth of

bullion flowed into the country so much so that it distorted u.s trade data and pushed komex inventories to an all-time high so there you have the price hitting all-time highs well the actual komex gold alleged inventory was hitting an all-time high too again a reminder things are not going to always be linear in the golden silver market similar to how just because people are buying or selling on retail level does not mean that’s you could argue whether you think it should or would be better but does not mean that’s how the komex futures are going to respond fortunately which since we’ve seen a ton of selling on the silver retail

level for the past year or two which i think has finally slowed a bit yet price was rallying even in the face of that so anyway they mentioned the gold that flooded into the u.s futures exchange warehouses in the tariff driven arbitrage trade is now slowly trickling out now where could it have gone oh well there’s simultaneously a gold trading frenzy erupting in china as tensions escalate here we see china saw an explosive surge in gold trading last week as metal hit successive records the tensions rose shanghai futures exchange saw trading volumes hit the highest level of the year last week demand for gold is strengthening

vince lancey on our morning show the other day talked about how the allocation for insurance companies to start investing into gold was less of a suggestion becoming a bit more of a mandate here you have goldman sachs again with their increased uh gold target ubs with an increase earlier this week and then here’s the key one buying frenzy in china has seen prices move to a premium of around 20 an ounce over international prices reversing a discount it saw for the majority of the past year when domestic demand was weak so the metal came there to the komax now it’s trickling at we’re seeing a surge in demand we’re

also seeing the price last night jump during far east trading inflows to chinese gold etfs hit successive records us etfs have hit have been quite strong recently here you can see i won’t go through the article money metals was not making it up but there’s been a lot of gold coming into the us etfs so a lot a lot of things that when you see them all they fit together and fortunately you might say well how could one keep on top of such a thing and really my secret is that i got access to this guy and just take a listen to this like flipping pac-man look at mandarin vince going through the markets is there anything my man can’t um and

fortunately he he talked about this one the other day but along with everything else that’s happening we have india considers gold silver imports from the us to bridge the trade deficit so we’re taking more the us taking more from india than sending back and what might they fill that gap with oh but that shiny gold and silver over there is this and i know vince talked about it yet somewhere in there it hit me where it’s like if if that ends up going through i mean are we going to see the us have its gold and silver drained is that what’s happening here i mean that sounds like that was what was happening when you see bloomberg

reporting it while china is going nuts eating everything in sight india is considering importing gold and other high value items including silver take some of that too to address washington’s concern of a significant trade deficit so washington’s concerned and now this was from a source requesting anonymity so factor that in as you will it’s also possible that this is someone who sitting there and all this did take place and can’t say that publicly so i’ll let you make your own conclusions there but the us is a leading producer of gold silver and platinum and india can easily source a sizable quantity of these valuable items from the us well

komex has a whole pile gist of these door stoppers lying around and apparently the us is miffed by the trade deficit one of the reason they’re slapping tariffs although so far we have not heard the us side of the story or where they’re at on this one but we’ll see what the payment mechanism is here because india exports 76 billion and imports 41 billion with a deficit of 35 billion and they want to increase that trade to about 200 to 500 billion by 2030 so seems like a lot to get done and at least the discussion how would we settle it is sending the gold and silver to india so different perspective in the brix nations which may sound

familiar from last year because again it’s not just now here’s india talking about taking gold and silver and it’s not just them because last year russia central bank to acquire silver reserves we talked about that quite a bit when that came out still looking to see if there’s any concrete numbers there but now hearing different things mentioned on a governmental level which is a change especially if silver continues to be included so a few last notes before we wrap up here gold fund net inflows have hit a record 80 billion year to date that is two times more than the previous high set in the full year of 2020 investors are pouring

money into gold at a record pace as the market has skyrocketed touching on what we mentioned just a moment ago about the etfs this one from peppy escobar who i’ve talked about quite a bit in the past and still hope to find a way to track down one day but he’s in shanghai beyond electric and the tariff emperor is being relentlessly mocked all across china so i think peppy has a fair track record of international experience and just not saying this to mock anyone but just pointing out that he is reporting that suggesting that is the tone in china of how they’re feeling about what is going on which again just worthwhile as you make

your own expectations and assumptions of what may happen with this tariff war and then lastly luke groman one of my favorites highly recommended love his uh premium service bit expensive bit more expensive than the average newsletter although well worth it and he mentions the u.s military ultimately backs the u.s dollar and u.s treasuries and that is true but as you can see in the chart below chinese components back the u.s military and chinese factories make those chinese components and the u.s is terrifying those chinese factories do you see the problem yet and that’s one of the things i think luke does a great job of

pointing out i agree and if you want to go to war but you need them to build your parts to go to war and oh okay there we go i didn’t even see this one you have u.s tariffs on china hit 245 percent so it seems like things are going in the right direction but if you see all of that and you’re not sure what to do when in doubt just get yourself a silver chopper ben the silver collectible you’ve always dreamed of that’s 26 ounces of three nines fine silver that is so cool can you even see his his tie flying in the wind while he throws out hundred dollar bills look at him getting ready to throw that money out there i see that because that’s what it

looks like so at least if you’re going to have a gold mania going on with silver following in the wings we’ll take one last look at the price there we are 32 28 and my dear beloved silver let’s take one final look 3306 so silver chopper ben rising in asset value today which is good news for all of the silver chopper ben inventory holders and link to get one of those bad boys in the description field below and hope you’re having fun out there appreciate you tuning in today go smile certainly if you’ve been following this for a long time hope this feels good for you and i’m honored to have been part of that journey and at any point along

the way but we’ll wrap up for now and if you want to see the rest of himky and halter giggling about the silver chopper ben well that one is coming your way right now
[tr:trw].

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