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Summary
➡ The article discusses the decreasing supply of physical silver, which is causing concern among investors. The supply in vaults is dwindling, and the demand for actual silver is increasing, causing stress in the market. The article also mentions a giveaway of physical silver and discusses the gold holdings of various countries’ central banks. The article concludes by warning of a potential crisis if the supply of physical silver continues to decrease.
➡ The text discusses the struggle between the common man and powerful entities, likening it to the David and Goliath tale. It highlights the impact of inflation on these entities, making them less flexible and more vulnerable. The text also emphasizes the importance of understanding inflation and investing in anti-inflation assets like gold and silver. It ends by discussing societal breakdown due to financial collapse and the potential for rebirth through a return to sound principles, money, and relationships.
➡ The text discusses the importance of family bonds and the role of silver as a stable asset in uncertain times. It suggests that the current financial system is failing, and investing in silver can help preserve wealth and prepare for the future. The author encourages people to stay informed and take action, hinting at a future where those who have invested in silver may become unexpected leaders in a new economic era.
Transcript
I don’t really know how to approach them, because it’s tough to criticize the Trump administration, knowing what the alternative could have been, which would have been horrific. This, at least, is like, entertaining in its uncertainty and there’s some kind of hope attached to it, but, like, it’s all just a clown show and you don’t really know what else to say. The end of Fiat isn’t coming. It’s already here, and almost nobody is ready. As currencies melt and trust evaporates, the elites are dumping paper and grabbing what’s real. But silver. Silver is different. It’s not just a hedge anymore.
It’s becoming the last true safe haven. And it’s being targeted in a final short squeeze that could detonate the entire system. Raffi Farber’s warning couldn’t be more clear. The moment physical silver breaks free from its paper chains, there won’t be time to react, only. Only time to regret. This isn’t a market cycle, it’s a collapse. And as the fiat foundation crumbles beneath our feet, those holding silver won’t just survive, they’ll lead. So the question is simple. Are you stacking or are you standing in line with worthless cash, hoping someone still accepts it? So open interest is the main.
One of the main metrics that I follow. It shows how many people have bets open, either on the long side or short side. They always equal, equal each other out because every long is a short. How many of those contracts are open? So how much notional value of gold is being traded? Any one time? And the lowest that we’ve gotten post 2008, 2008 itself, the dip of that crisis, I think it went down into 300,000, maybe in the high 200,000, if I remember correctly. I don’t remember exactly, but the lowest that we’ve gotten since then has been about 400,000, and we’re just above that now at about 450, 460 or something like that, and that’s a very low number.
And before this rally, you could say it started in January, February. If you look at the, the interplay between price and open interest, usually they go up together and down together and then open interest resets and then you start another rally. It’s like, you know, a ratchet. So the price keeps going up, but as it goes up open, it just goes up and then open interest goes down again and the gold price goes down a little bit, but then ratchets up again to go higher. Is that sort of movement? And so when we see something like open interest Falling, you know, 100,000 contracts, 150,000 contracts, I don’t know exactly how much it’s fallen since January, something around there, but the price going higher anyway, that means that the shorts are closing their contracts.
They’re buying back their short positions either through, either with dollars or with deliveries. They can close their contracts by delivering gold and their dollar positions don’t really change. So that’s what the bullion banks do. So that’s how they hedge. Right. So if they’re short a contract, doesn’t mean they’re shorting gold outright. It means they’re shorting the futures. And then they bought the physical somewhere and I think that’s where the deliveries come in. It’s the bullion banks that are delivering gold into so that it doesn’t really affect their accounting. They can do that as long as there’s enough gold to do it.
And so far there is. So I think the fact that open interest is so low and a lot of it is down because of these deliveries, every time a contract is delivered, that open interest is erased. Right. And that means that the amount of speculation in gold futures now, not for delivery, but just to speculate on the price is very low, otherwise open interest would be higher. And because it’s so low, that means that there’s room for it to move higher because the speculators that drive price on the margins are not in the market right now.
They’re gone. I think they were in a little bit when we hit 3,500. But even then, open interest was still pretty low. I mean, we can get as high as 600,000, 650,000 before it really gets into the nosebleed section. The highest we ever gotten was right before the 2020 Covid crisis. I think around January Fe 2020, it was like 850,000. That’s abnormal. But a high number would be around 600,000. We’re nowhere near that. There’s plenty of room to run in the rally. The fiat system is crumbling, not because of one event, but because of decades of decay that have finally reached a breaking point.
Governments have gorged on debt, Central banks have printed money with reckless abandon, and the very concept of value has been hollowed out. Raffi Farber doesn’t just see this as a financial crisis. He sees it as a moral one. When money is debased, society follows. Families fall apart, trust disappears, and communities fracture. Fiat currencies aren’t backed by gold. They’re backed by nothing but confidence. And that confidence is collapsing fast. Inflation is just the symptom. The disease is a system that rewards consumption, punishes savings, and pretends consequences don’t exist. Farber draws the line. If money has no integrity, how can anything else in society? The evidence is everywhere, from the staggering cost of living to the rising tension in everyday life.
The moment people realize their money is dying, they act. And when they act, they run not toward stocks or bonds, but toward the one asset that has never failed. When fiat collapses. Physical silver. But before that stampede begins, there’s still a sliver of time left for those who see what’s coming on. Gold Charts. R Us is a service that I use a lot and I recommend it. I’m not affiliated with them, but it’s really good. If you want to track these things. I think it’s Nick Laird owns it. And what I do is I show the bars of open interest in accordance with the price on the top and I draw rectangles so you can see that every time there’s a local low and open interest that usually correlates with a local local low in the price.
Not every time, but it’s pretty reliable. So then I would say for that reason that if there’s going to be a further sell off in gold, it will either be a little shallow in price, meaning it won’t go much lower than it is now, or, I mean, you could have a very brief blip. I don’t know. I’m just saying a number, just to pick a number. 3,000 or whatever, which used to be, you know, a big high watermark a few weeks ago. And now it’s like, oh, my God, 3,000. Gold’s crashing. You know, everything’s changing so fast now.
No, keep up with the reality. Yeah, so that could happen. But if it does happen, that would. That would be the bottom and then we’d be on our way up. So either either short in the any continued correction for would be short in time or shallow in price. All across the world, the quiet rush has already begun. It’s not in the headlines, but it’s happening in coin shops, online dealers, and local meetups where cash is being converted into silver fast. Families that once trusted their savings in banks are now stacking silver bars in kitchen drawers and safes.
Not as an investment, but as a lifeline. They’re not waiting for official confirmation of collapse. They’re acting on instinct. And that instinct is survival. Raffi Farber calls it the desperate scramble. A point in time where people finally realize paper isn’t protection, it’s just paper. And when trust in fiat vanishes, people don’t hesitate. They dump cash, raid their bank accounts and move into anything tangible. But it’s not gold that’s disappearing off the shelves. It’s silver. Cheaper, more divisible, and still wildly undervalued. Silver is being hunted by those who understand what’s coming. And with premiums beginning to rise and delivery times stretching, it’s already clear this isn’t just stacking.
This is front running a system that’s on its knees. What was once a niche movement has become a quiet revolution. And those who wait for validation from Wall street will be left standing outside watching the vaults empty the thing. Well, I don’t know if delivery has anything directly to do with the amount of gold on the exchange, you’d have to actually take it out because delivery, I mean, I’ve done delivery before, I’ve gotten physical delivery, but the word is kind of false. It’s not physical delivery. It’s sort of physical delivery in the sense that you have, instead of the notional right to, let’s say 100 ounces of gold in the, you know, in the ether, you have a right to one specific 100 ounce bar, which they could say was that one with that serial number.
So there’s your physical delivery, but you can’t get it unless you, unless you are, you have like a million dollars in liquidity and you have special permission and you’re connected to a bullion bank or whatever it is. It’s possible, it’s just not for, it’s just not for retailers. So the physical delivery has to do with warrants being exchanged, doesn’t have to do with gold leaving, leaving any of the vaults. But that could happen. I mean, deliveries could, could correlate with the supply going up or down. It just doesn’t have to. So right now what I’ve seen is that, that the gold supplies mean the amount of bars that are in, either eligible or registered, they’ve kind of they hit a high, high mark, I think it was like 42 million ounces, maybe 43, something like that.
I could be off by a few million. But the point is, wherever it is, it’s been edging down slightly now. So either they’re being pulled out of the vault or they’re going back to the UK or to Switzerland, I don’t know. The thing is, I’m not looking at that directly right now. I was curious because I wanted to see how high they would go and I think, think it has to do with tariffs because in the atmosphere of uncertainty, nobody knew for sure if gold bullion was going to be tariffed. So if the bullion banks were going to be forced to close their short positions through delivery, they had a risk, right? If the price is going to go up and they couldn’t satisfy it through delivery without paying like a 25% tariff or whatever, then they, they’d be screwed, basically, because they wouldn’t be able to save their dollar positions through delivery.
So they had it front loaded and just brought to New York beforehand. But now that bullion isn’t going to be tariffed anyway, it doesn’t really matter. So it’ll probably head back from here if they can get reassurance from the Trump administration that he’s not going to mess with bullion, which I don’t know. I don’t know if you can count anything as While most investors stare at charts and debate interest rates, the real crisis is happening behind the scenes. In the vaults. The supply of physical silver is thinning out, and the signs are everywhere. Comex vaults, once brimming with metal, are bleeding ounces by the week.
Registered silver, the kind actually available for delivery, is shrinking at a pace that signals something deeper than normal market movement. Raffi Farber has warned about this before, but now the data backs it up. We’re not just seeing tightness, we’re seeing stress when premiums on basic silver coins surge while spot prices remain flat. That’s not a market functioning, it’s a market suppressing bullion. Dealers are placing limits on orders. Wait times are stretching from days to weeks. And quietly, even institutional players are taking delivery, pulling bars from the system rather than rolling contracts. Why? Because they know the paper silver game only works when nobody calls for the metal.
But that game is ending. The infrastructure that has propped up artificially low silver prices is cracking under the weight of real demand. And once enough people ask for the metal instead of the promise the system won’t bend, it will snap. The physical market isn’t just tight, it’s signaling that the fuse is already lit. Just before we get going, we just launched the official Silver News Daily Telegram. To kick things off, we’re running a 10 ounce silver giveaway. Yes, real physical silver. Not a voucher, not digital credits, actual bullion. This telegram will be our new home for real time silver discussions, market insights, collection picks and everything precious metals.
It’s where the community truly comes alive. Here’s how to enter the 10 ounce silver giveaway be subscribed to Silver News Daily on YouTube, turn on the notification bell, comment 10 ounce giveaway on three separate videos, be an active member of the Telegram group and say hi. Once we hit 500 Active Telegram members, we’ll pick one lucky winner to receive 10 ounces of silver shipped directly to you. So get in early, stay active. Pretty funny that you’re asking me this question because right before I signed into this interview on Riverside, I was uploading a video. I haven’t published it yet but I just finished and then when it finished I signed in here and I talk about the central bank holdings of gold from different countries.
I looked at trading economics. They have a good setup and now speaking of inflation, now they’re charging for membership some kind of nominal fee but still I had to pay them and I never did before. So now I pay them okay and I looked at their list of countries. The top 1520 bullion holding by central bank and China was in there and the only ones that I saw that are that are buying gold right now. Of course I don’t know this. The data is only only good through Q4 of 2024. So we it doesn’t account for the rally from February to now so anything could happen.
Nobody has that information yet and when we have it it’ll be incomplete. But what I’ve seen is that the two central banks that are buying the most are actually Poland and India. So India has been buying consistently and Poland as well. Turkey has also. They’ve been up and down. I think they’re at a new high in their gold holdings, but they buy and they sell every month depending on what their currency does or how desperate they are. So I don’t really rely on them. But China isn’t buying much or hasn’t bought much through Q4 2024. Russia hasn’t bought any significant since 2020 or at least not that they’re telling us.
And Japan bought a bunch in 2021 but hasn’t done anything lately. So there isn’t that much going on at least up to Q4, 2024, except for Poland and India and I think India has been more aggressive. Now I don’t know enough about the gold market dynamics to tell you if, if the buying between Poland and India is enough to push the price higher. I would suspect not because there are also sellers. For example, Kazakhstan, which also showed up in the list. They, they were strong buyers up from I think like 2018 to 2022. Then they maxed out and they’ve been selling ever since, not like huge amounts, but enough to, to cancel out some of the demand from Poland and, and India.
So we’re going to have to see what the numbers are for Q1, 2025 and it could show some significant buyers there. Some central banks getting nervous on the Trump tariffs, who knows? I don’t think that, I just want to clarify that. I don’t think that central bank buying of gold is really that important. And I don’t mean that it doesn’t, I don’t mean that it’s not going to drive the price. It will. But in the end, any central bank that has gold, it’s not going to be enough. It’s not going to save their currencies because they don’t see gold as money.
They see it as an asset through which they can manipulate the value of their currencies, which are the money. That’s how they see it. In order for gold to be money for a central bank, they’d have to stockpile it and then stop printing and then let their banking systems all collapse and none of them are willing to do that. So it’s all a game for them and it doesn’t really matter how much they have. Eventually in the end game it’ll all, it’ll all go into our hands, hopefully. And the central banks won’t have any because they’ll be busy selling it to try to save their currencies and then fail.
That’s, that’s how that would be the best for us. It would be very traumatic for users of currencies, but that would be the best outcome. The silver short squeeze isn’t a theory anymore. It’s a slow motion detonation waiting for the final spark. For years, bullion banks and institutional giants have shorted silver through the futures market, creating a massive overhang of paper claims on metal that doesn’t exist in the volumes promised. But here’s the catch. Every short contract must eventually be closed, either by buying it back or by delivering physical silver. And according to Raffi Farber, that’s where the pressure is Building open interest on the COMEX is unusually low, yet prices are rising.
That means shorts are being closed not by buying futures, but by delivering real metal. Every time a contract is satisfied with physical silver, it disappears from the system and every ounce delivered is one less available to defend the price. This isn’t just bullish, it’s a warning shot. When open interest falls while price rises, it tells us the market is running on fumes, speculators are gone, the metal is vanishing, and the banks are trying to escape before the walls close in. Farber calls it the final short squeeze for a reason. Because this time the silver isn’t there to back the bets.
And when the crowd realizes that they won’t just buy, they’ll panic. The only question left is whether there’ll be any silver left to get. Well, instead of, instead of history, we let’s look, just look at culture and, and just general patterns in history and you know, villains, villain, slash hero tales and books, how they’re portrayed. It’s, it’s usually that, you know, the whole David and Goliath metaphor, you know, the Goliath was also used I think by, by Brett Weinstein, who I listen to a lot to describe the, the interplay of the deep state versus the common man and the fact that a few people on podcasts were able to call out the big networks and how the big networks can’t really portray any news anymore.
That isn’t just propaganda. So we see this sclerotic nature of the big huge Goliaths and how they can’t really move and they’re at a severe disadvantage. They are the recipients of inflation, so they get bigger and bigger as the money supply inflates because it goes to them. But even so, when inflation is at its maximum, it always gets worse until it all falls. And now that it’s at its maximum, we see that they’re getting even less flexible and less of an ability to move around and survive and make any sense. So we’re already seeing, I mean from what I experienced and what we all experienced in 2020, 2021, 2025 is a breeze.
I mean, for us, if you’ve been stacking gold since then, and you understand, and you understand inflation, you understand that in the end you can protect yourself by just understanding what inflation is and getting the anti inflation assets, which is money itself, which is gold and silver, you will do fine as long as you keep your head together. And that’s what’s been happening. I mean, I’ve been having a pretty good year. I’m not talking about financially. I don’t really do anything with my stacks or anything. It’s like they represent a certain amount and now they represent a different amount.
But it doesn’t really change my lifestyle. But I’ve been feeling a lot more optimistic just about the human spirit lately, you know, like, just like an alcoholic would feel optimistic when he finally admits that he has a problem and now he’s like, okay, okay, we have a problem now let’s, let’s try to deal with it. So people are realizing that we have a problem and that’s a great thing. And yeah, there’s a lot of work to do and a lot of people are going to suffer. But suffering isn’t such a bad thing when you know you need to get through it.
Like again, the alcoholic, when he, he knows that he’s got a lot of tough times ahead of him, maybe some delirium tremens or whatever it is, maybe he’s got a, you know, be at a hospital for that. But he’s not, he’s pained in a certain way, but he’s not, he, he’s not like dreading it because he knows on the other side it’s much better. That’s how it always is. The, the, the big, the, the big evil players cannot survive because they rely on theft, on theft to continue. And once the theft ends, they stop. This isn’t just another.
According to Raffi Farber, this is the endgame, the final squeeze that breaks the illusion of control. In past cycles, silver was suppressed, then rallied, then reset. But this time there’s no reset coming. The infrastructure that kept this game going, endless paper contracts, trust in futures delivery, and a deep pool of available metal is deteriorating. Open interest is near crisis lows, vault inventories are edging down, and the few institutions still shorting the market are now racing to cover. Not because of market mechanics, but because confidence is gone. Farber points out that even the paper price action has become decoupled from open interest, a rare phenomenon that suggests physical silver is being drained faster than new supply can enter the system.
And when that physical drain becomes visible to the public, when premiums spike, inventories vanish and retailers run dry, the exit door will slam shut. This is why Farber doesn’t just say silver might break out. He says it must, because the very mechanisms used to suppress it are now self destructing. This is the final unwind of decades of artificial control. And when it unravels completely, silver won’t move. It will leap. And those without it will be locked out for good. Okay, I’ve got a good one for you because I’ve been discussing this with my wife for the last few weeks and.
Okay, so there was this phenomenon or this article in a mainstream Israeli newspaper about how the current generation, like the equivalent of the boomers in America, they’re just deciding to spend whatever savings they have because Loma Gielahem, the saying goes, like, the new generation doesn’t deserve their money and they don’t want to just give it to them so they can piss it away. So they’re just spending all of it. And then I said to my, this is inflation. They might not be acknowledging this, but the value of their currency is falling. And they just see it as futile to give it to their kids or their grandkids.
And so they’re just spending it. But that’s what hyperinflation really is. It’s just everyone not saving, even for the next five seconds. You know that that’s the ultra extreme of it. But this is, this is a symptom of that. But it, it, it’s not just that, oh, well, the, the value of the money is falling and therefore we’re just going to spend it. And our kids, you know, they can go screw themselves or, you know, not, not that extreme, but they can fend for themselves. And they probably rationalize it, like, let them do the hard work that we did.
I don’t want to, you know, spoil them. Whatever. You can give all these kinds of reasons, positive or negative, but really you’re supposed to save for the next generation. We all know that that’s normal. But when did this process really start of the separation of generations where the older generation no longer really cares for the younger generation? And that’s when the inflation process started and got worse. Because if a father cannot support his family on one salary or one honest job, then what happens is the woman has to work too. Then there’s nobody at home for the baby, and then they have to send the baby to daycare where people that don’t really care for it.
I’m not saying they abuse the kid or anything like that or anything untoward happens, but if a baby from, let’s say six months until you stop getting maternity leave, or three months even until it’s like two is seeing mostly strangers and alcoholic smells of wipes and these artificial smells and doesn’t recognize the smell of its mother, they’re going to grow up less attached to their parents. That’s just what’s going to happen. I mean, we are, we are animals. We are apes. We, we attach to our parents on these visceral smells, just like all other animals do.
We don’t realize it because we’re, we’re more, you know, superego creatures than they are, but it still, it affects us. And so that starts the ripping apart of the family. And the Farber’s message goes beyond charts and trading desks. Because what we’re facing isn’t just financial collapse, its societal breakdown. Fiat money is more than a currency. It’s a system that shapes behavior, values, even relationships. When that system fails, everything built on it starts to fracture. And while panic and chaos grab the headlines, Farber sees something deeper, the possibility for rebirth. He argues that in the ruins of fiat, people are forced to rediscover something.
That paper money destroyed real value. When hyperinflation renders cash worthless, families stop outsourcing responsibility to the state and start depending on each other again. When institutions fail, communities form. It’s painful, it’s raw, but it’s also healing. The collapse forces a return to sound principles, sound money, sound ethics, and sound relationships. Farber believes silver plays a role in that return, not just because it holds value, but because it represents the shift from illusion to reality. As fiat fades, silver remains, and with it, the foundation for rebuilding. In the end, the crisis doesn’t just mark the death of a system.
It marks the beginning of something older, stronger and more grounded. And those who see that shift coming have a chance to prepare, not just with assets, but with mindset. The children not responding to parents and not taking their parents seriously, and parents not knowing how to talk to their kids. Well, what do you think is going to happen if you’ve been away from them most of the day and you only see them at 6:00 at night, for dinner, at most for a few hours a day, and then you’re off to work again and nobody’s at home.
Like, this is how they rip families apart from the foundations. And then at the end of the process, you have the older generation saying to the younger generation, go fend for yourself. I don’t care. This is how it happens. So it rips apart the fabric of the family. Now, if you are attached to sound money and truth, I see the exact opposite in my family. Because my kids, they want a helper out in the house or they do something for me that I wasn’t expecting. I say, oh, great, here’s a dime. And I give them a silver dime and they’re really happy for it.
And each have their box, you know, in the safe in the attic. Where they keep their little silver stashes. And they take our advice seriously to expand a little bit further. My wife was talking about how attached she was to her grandmother because she cared for her when she was a little kid. When she was a baby, her grandmother was her babysitter. And so she became very attached to her grandmother, and her grandmother became very attached to her. And that leads to stronger families. But now the grandparents don’t want to deal with it because they’re tired.
Why? Because they spent all their time working and not taking care of their kids. So they’re not used to hanging out with small children. They don’t have the energy for it anymore. And then you rip those generations apart. It’s a subtle thing and it keeps getting worse. But if you return to sound money, you can keep your family together and make them stronger as the rest of society tears apart. But even it can only go so far until the whole system stops. And then families have no choice but to care for each other because things are desperate.
And then that repairs a lot of the damage. Doesn’t repair all of it, but it repairs enough that you can start the next generation on a better footing than these generations were. The silver short squeeze isn’t just a market event. It’s the tipping point of a dying system. Fiat currencies are collapsing under their own weight. And silver is emerging as the final escape route. Not just for wealth preservation, but for rebuilding what comes next. Raffi Farber’s warning is clear. This isn’t a drill, and it’s not reversible. Those stacking now aren’t speculators, they’re survivors. Once the squeeze ignites and the world realizes paper silver is worthless, the price won’t just rise, it will redefine value.
If you’ve made it this far in the discussion, you already know what’s coming. The choice now is action or regret. So prepare, stay informed, and if you found this valuable, make sure to subscribe so you don’t miss what’s next. Yeah, that is. But again, what you were talking about before and how I’m more optimistic than most people in this space. I’m not claiming that I am. I’m just saying that that’s what people say about me. The whole process of losing hope leads you to the hyperinflationary crack up boom, which is I need to preserve whatever purchasing power I have left by buying whatever is real.
And it attaches you to anything that’s real. Through that loss of hope again, it leads us back into a circle where we have to start over again from a level now that the inflation has cleared out. Now we can rebuild again. So we feel empty, but like, okay, well, now it’s over. Well, now what do we do? And we can start over from there. Not easily, but with no alternative because there’s no more money to finance evil. So then you’re kind of forced into the path of good, even if you don’t really. Even if you might not even want to be there.
Like, you have to work now. Okay, we’re going back there. Everybody is the people that profited from inflation, the people that didn’t profit from inflation, because the only difference is the people that didn’t profit from inflation and that were wise enough to stack. We’re going to be on the other side of that equation because society is going to be a mess and we’re going to be like, okay, I have all this capital now. What am I supposed to do with it? And we’re not going to be capitalists. We’re not going to be very skilled in that, but we’re going to have it because we stacked and the prices of capital are going to fall and fall to tiny fractions of what they were in real money terms.
And then all of a sudden, we’re going to be capitalists and we’re not going to know what to do. And then we’re going to figure it out. Just like during the COVID times, we had to be truth tellers and podcasters and try to get the truth because the medical establishment was failing and this establishment was failing. And all of a sudden we have to speak out about things that we’re not really experts in because we see lies everywhere. But okay, we did it. You know, it took us a few years to get it, to get it through, but.
But we did it. And now we’re in a different era. So I’m waiting for the era where the stackers that are not capitalists are forced to become capitalists and see what we can really do with the situation. It’s going to be fun, it’s going to be terrifying, and it’s going to be very. It’s going to be a big personal growth for all of us. And some. Some of us will succeed more than others, but I think we’ll be fine.
[tr:tra].
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