➡ The demand for physical gold and silver is increasing rapidly, causing a strain on supply and potentially leading to a crisis. This is due to investors and industrial users buying up these metals, fearing future shortages and price increases. Meanwhile, central banks are ending their practice of leasing out gold, indicating a loss of confidence in paper money. This situation could lead to a significant financial crisis, potentially worse than previous ones, as banks may struggle with bad debts and the value of the dollar could be at risk.

➡ The world is experiencing a major shift in financial power as countries like China and Russia create their own trade networks, reducing reliance on the US dollar. This change is driven by America’s unpredictable leadership and inward economic policies. As a result, silver is becoming a key asset, bridging both the monetary and industrial sectors. This shift is also causing a surge in silver’s value, as it becomes an essential asset in this new financial order.

➡ The global economic landscape is changing with Russia and China forming a new economic bloc, and the US focusing more on domestic manufacturing. This shift, along with the ongoing trade war, is causing uncertainty and driving investors towards safe assets like silver. The banking system is unstable, with high leverage ratios and declining commercial real estate values. As a result, silver, a tangible asset, is gaining strength and is poised to become a leading asset in this changing economic environment.

Some of this gold was leased gold which nor ordinarily would remain vaulted in the bank of England and merely be a book entry transfer. Because that has come out, it has alerted every central bank with balances in both New York and also London and I suppose to also Switzerland, to the risk from leasing. And I think it means that that leasing game is now stopping. I don’t think any central bank will lease gold from this moment. We have, I think, potential for a systemic problem arising from the lack of supply. In a market where the future value of paper currencies is diminishing.

Silver’s breakout is no longer a question of if, it’s a matter of when. Every pressure point we’ve explored, from the collapsing banking system and Trump’s economic warfare to the gold leasing freeze and exploding physical demand, has been leading to this moment. What we’re seeing now is the convergence of chaos, systemic distrust, geopolitical fragmentation, industrial acceleration and monetary desperation, all funneling into a single asset class that has been historically suppressed and chronically undervalued. That asset is silver. The dollar is weakening, supply chains are fracturing, and central banks are bailing out their own credibility with piles of physical gold.

But silver. Silver is the underdog that survives every crisis and thrives in every reset. It’s the only asset that bridges industrial utility with monetary protection. And now, as inflation proves sticky, as rate cuts loom, and as investors scramble for something real, silver stands ready. It’s no longer just a hedge, it’s becoming the core. If you’ve been waiting for a signal, this is it. The storm is no longer coming. It’s here. And those who position early will be the ones who understand the real value of silver when the dust settles. If you found this valuable, make sure to subscribe so you don’t miss what’s coming next.

And remember, this isn’t financial advice. Always consult a qualified professional before making any investment decisions. It ranges from central banks, through, you know, family offices, investment management firms, conferences, and so on. I don’t think I can really be that specific, but what I can tell you is that a lot of the gold bug community think that central bankers are idiots. They’re not. They’re actually entrapped in a political system over which they’ve got very little control and they’ve got mandates which they can’t really deliver. And they do realize this now. If you’re in the position of the Fed, you’ve got to deal with it.

I mean, you know, this is not easy, and I have great sympathy with them. Now, you know, I can rail about how their lack of understanding of, you know, the commitment to macroeconomics, which is non science and all the rest of it, but that’s not productive at all. Well, I can tell you that these guys actually have a greater understanding than perhaps we think and interestingly, minor central banks, some of which you wouldn’t even think think can spell gold, beginning to understand the difference between money and fiat currencies. And this I think is desperately important we’re looking at in this sense.

I’ve been talking to central banks, if you like, in some of the lesser nations, if you like, and I find that they are where they lack the knowledge, they’re very keen to get it. And this is the interesting thing. So there’s a big, big shift going on, if you like, in central bank thinking. And this is all part of the whole thing. And it gives me hope that while we’re doomed to make a huge great mess of things because of our politics, if you like. And I think to my mind one of the great sadnesses is that you have someone like Donald Trump who comes in and he’s actually very much, he’s got some very good ideas, he’s very sensible in certain respects, doing away with this wokeness, trying to get some morality back into people’s behavior rather than the state saying determining how we should behave.

He’s absolutely right about that. But unfortunately his grasp of economics is just about zero. He’s a businessman, not an economist. He’s a politician now, not an economist. And the problem is that because everybody else has screwed it up so much and they’ve been advised, if you like, by others who are still offering advice, if you like, to the establishment, the Trump establishment. He’s not listening. He doesn’t want to listen. I mean, you know, this business over tariffs is absolute classic example. And I’ve also corresponded with Americans who silver isn’t just rising in price. It’s becoming the battleground of a market awakening.

And nowhere is that more visible than in the futures pits. The CME Group’s micro silver contracts are lighting up with activity. Open interest is climbing. Daily volumes are spiking. These aren’t casual retail bets. This is the smart money hedging against what they see as an inevitable breakout. And for good reason. March saw nearly a 10% month over month price surge with silver closing at $34.61 per ounce. That’s not noise, that’s positioning. But it’s not just futures. Physical coin dealers are reporting shortages. Mints are running behind schedule and premiums are rising. Investors are turning away from ETFs and opting for actual bullion.

They don’t want exposure, they want possession. And while institutional players are still stacking quietly, retail is entering the market with urgency, signaling the early stages of a broader wave. The trading landscape is shifting, too. Options volume is heating up, particularly around key price levels like $35 and $40. Traders are betting not just on upside, but on volatility itself, a clear sign that the market expects a major move. And with the silver chart testing technical resistance near $35, a confirmed breakout could send prices into a vertical climb. It’s happened before, and the setup now is even more extreme.

We’re not watching a normal market anymore. We’re watching a coiled spring. Every futures contract, every bar disappearing from inventory, every spike in open interest, it’s all part of the same story. The quiet accumulation phase is over. The momentum phase is beginning. Yes, I think it’s a fair point. And you showing the bank of America share price is actually to the point. And the reason it’s green today, I guess, is because people have been shorting it fully aware of the problems that banks are likely to have. And today a little bit of a bear squeeze. They’ve been closing the position.

There may be a little bit of price management in there. I mean, who’s to know, who’s to say? But the entire banking system, I, if you look at the wider banking, you know, financial ETFs and so on, they have been extremely weak. And this does, I think indicate heightened fears, if you like, of systemic risk. And I mean, the American banking system is highly leveraged compared with the past, I guess that you’re looking at around about 15 times asset to equity. So bad debts doesn’t take a lot the way of bad debts to wipe out the equity and give you negative equity, if you like.

Worse than that. Of course, we’ve also got the Fed is already deeply into negative equity. And so how does the Fed actually rescue a commercial banking system or backstop a commercial banking system when it itself is deeply in negative equity? Well, I mean, the answer to that one is that either it prints the money, which of course we, you know, is, is if you like credit replacement and in a sense would just devalue the dollar even faster. Or alternatively it turns around to its government or its shareholders. And in this case, I think we, we assume it’s the government, though we’ll hear all sorts of things about how it’s privately owned and you know, so.

But it would turn around to the Government and say, look, we’ve got to recapitalize. And so you’ve got the prospect of a government in a debt trap recapitalizing its central bank. Is this going to sort of spread enormous confidence around the world about the outlook for the dollar? Well, questionable I would say. Moving on to other areas where there is very high bank leverage, higher than the United States in particular. You’ve got Japan, obviously, and you’ve got also the, the Eurozone, I mean Eurozone banks and Japanese banks typically have asset to equity ratios in excess of 20 times.

And that is something that’s really come about by banks expanding their credit in order to be profitable in times of negative interest rates. So the damage of negative interest rates, if you like, is still very, very much with us as to where the risks actually lie. I think we’ve already seen American banks try to move out of risk lending away from lending to corporates, in particular into lending to the government. And the lending to the government is very, very much short term lending, like T bills and so on and so forth. So I think in a sense behind the scenes, a physical silver crunch is intensifying and the mainstream has barely noticed.

For four consecutive years, the silver market has posted deficits with demand outstripping supply at levels not seen in modern history. Mine production is declining, exploration budgets are thin. And above ground stockpiles are vanishing as more investors demand physical delivery rather than paper contracts. But the most telling sign, the cracks appearing at the delivery hubs themselves. Take Comex for example. Physical deliveries have surged. What used to be a market dominated by speculative futures trading is now being rated for actual metal. In the first quarter of 2024 alone, gold saw a 4 times increase in in physical delivery requests.

But silver’s pattern is even more unnerving. The volumes are rising and available inventories are shrinking. We’re approaching a point where the exchange might not be able to meet demands without significant delays or premium spikes. The supply squeeze isn’t just coming from investors. Industrial users are locking in contracts early, worried that delivery time frames will stretch and costs will skyrocket. Meanwhile, retail investors are buying up silver coins and bars faster than mints can produce them. Premiums over spot prices are climbing, not because of market manipulation, but because physical silver is getting harder to find. And when supply tightens like this, it’s not just a pricing issue, it becomes a structural crisis.

We’ve already seen what happens when supply chains snap in other sectors. Imagine what happens when silver, the metal that powers clean energy, electronics and financial safety nets, runs short that’s not a market correction. That’s ignition. And also, of course, the other thing is that that brings into question the survivability of many companies. And also the banks. The banks will take bad debts on the nose. That is the way in which credit will be eliminated. The value of the credit is the other way in which credit is eliminated in, not numerically, but in terms of total value.

And it’s a process, as I say, which I just can’t see how the Fed can stop it. They can’t manage their way out of this problem. Furthermore, bear in mind that foreign investors have something like $14 trillion tied up in U.S. stocks. Are they going to really just sit there and watch these values go down? No, they’re going to get out. I wouldn’t say they get out of $14 trillion worth. I mean, apart from anything else, be worth a lot less by the time they start really getting out. But you can see that there is massive selling pressure going to occur from that quarter, particularly because of two things.

The first is that if you like the deep recession, and it’s going to be a deep recession, which is implied by collapsing stock prices, plus these trade tariffs, plus the loss of value in credit, which is the way in which the credit bubble will deploy itself, that’s going to lead to heightened risk, if you like, of owning foreign currencies. And consequently, the only way in which the dollar will be supported or could be supported is for the Fed to raise interest rates. And if the Fed doesn’t raise interest rates, then foreigners are just not going to go and buy U.S.

treasury debt and they won’t stop selling the dollar. So this is actually, I think, a very, very important moment in the history of fiat currencies. And I think it is actually the beginning of the end of this fiat currency period. Gold is making headlines, but behind the scenes, something far more telling is happening. Central banks are shutting down gold leasing. And that signals a seismic shift. For years, these institutions quietly leased out their gold to suppress prices and maintain liquidity in paper markets. But now that era is ending, physical demand is overwhelming the paper system. And central banks aren’t taking any chances.

They’re pulling their gold back, locking it down, and preparing for a world where confidence in fiat money is unraveling. That move alone should have sent alarm bells through the investment world. But here’s what makes it even more explosive. As gold becomes harder to access, silver becomes the natural next step. Physical gold is being hoarded, vaulted and removed from circulation at a rate not seen in decades. Major gold Depositories like London and Comex are reporting unusual outflows and massive spikes. In Stanford delivery requests. In the first quarter of 2024 alone, the rate of physical delivery was four times higher than the previous year.

That’s not normal, that’s panic. And as central banks stop leasing, they’re essentially betting on a complete revaluation of precious metals. They don’t want counterparty risk, they want the metal, silver, though it’s not yet in lockdown mode. And that’s the opportunity. The same systemic cracks forming in the gold market. Delivery delays, supply constraints, confidence erosion are already appearing in silver. But silver is cheaper, more volatile and far more responsive when markets panic. So while the world watches gold soar, smart money is already moving into silver, anticipating the next leg of the storm. And when that spillover begins, it won’t be slow, it’ll be violent.

Financial sector or the banks have de risked themselves. Now obviously we’re talking about the top level banks here. What goes on underneath that? I think there are a lot of banks still trapped with bad commercial real estate loans. I note that according to FINRA, there is something around about 900 billion. In other words, close to a trillion of margin debt in the equity market. That is going to be, I think, a problem for some. And on top of that, if I am right about the combined effects of a deflating credit bubble and tariffs, then a lot of the collateral that backs loans for banks is going to be underwater.

So we do have the potential for, if you like, a crisis. Which makes the great financial crisis look really like a tea party. I’m afraid so. I think in a nutshell, those are the problems. We’ve got a commercial banking system which is going to have to take on, or whether a lot of bad debt, which is undoubtedly going to put some banks into negative equity, they will have to be rescued or something happened to them. And at the same time you’ve got central banks themselves in negative equity trying to rescue a fiat currency system. And on top of that, as far as the Fed is concerned, they’ve got the problem that because the US and other economies are going into a slump, I’m calling it a slump, not just a recession, then government finances are going to go horribly wrong.

And that basically can only lead to one thing, and that is higher government borrowing, which means higher borrowing rates. The risks to people holding dollars I think are just going to escalate. And under those circumstances, if they’re going to hold their dollars, they’re going to need higher interest rates. But higher interest rates makes the Debt trap against the government. Worse. So what do we do? I mean, the Fed, I think, is in an impossible position on this. Silver is standing at a crossroads, caught between booming industrial demand and a looming global slowdown. And that tension is exactly what makes it so explosive right now.

On one side we’ve got an economic deceleration that’s raising red flags for traditional commodities. Manufacturing numbers are softening and recession fears are mounting across Europe, Asia and North America. Under normal conditions, that would hurt silver’s industrial narrative. But this isn’t a normal cycle. Despite macroeconomic headwinds, silver’s industrial use is surging. The world’s transition to electrification is non negotiable. Electric vehicles, solar panels and 5G infrastructure all depend heavily on silver. And not just any silver, but high grade ultra conductive metal that has no real substitute. Demand in these sectors is growing faster than economists can model. Even with manufacturing slowdowns in some areas, the energy transition and tech buildout are still accelerating.

And that’s pushing industrial silver consumption to record levels. But here’s where it gets wild. The economic slowdown is simultaneously fueling monetary demand. As central banks inch toward rate cuts and inflation refuses to die, investors are looking for hard assets with dual functionality. Something that protects wealth in a downturn but also participates in long term growth. That’s silver. Silver isn’t being pulled in opposite directions, it’s being propelled by both. And when you combine monetary panic with secular industrial growth, you don’t get a confused market, you get a supercharged one. Investors are waking up to the fact that silver doesn’t need a perfect economic environment to thrive, it needs volatility.

And right now there’s no shortage of that. Well, yes, that’s absolutely right. And I think there is a further point on that and that is that countries that would like to join, if you like, the China and Russia camp, are very often frightened of doing so because of the consequences for their relationship with America. Now, I mean, you look at India, India has lots of trade with America. It’s been looking at its position, I guess in the light of these new tariffs. Other countries are frightened, if you like, of American inspired coup d’etats. I mean, if you don’t believe me, go and talk to the Pakistanis.

Imran Khan, who’s a perfectly sensible, good man, if you like, is in jail. Why? Because there’s a CIA bat coup d’etat putting in the previous people who, guess what were the people who accepted bribes, bribing this, bribing that. I mean, they were as rotten as you’ve ever seen. And Pakistan has been plagued with this for decades. Why? Because we keep on buying their influence by bribing the politicians. And so Imran Khan gets in, who is who cannot be bribed, and actually sees Pakistan’s future as being very much tied, if you like, with what’s going on in the whole of Asia, which is, you know, a Chinese and Russian party, plus the fact that, you know, they have a common border with Iran along the sea, seaside, as it were, you know, that didn’t suit the Americans.

So he gets chucked out, he’s in jail, they tried to assassinate him. That didn’t work. A few of his supporters got killed instead. We forget these things, actually. But I can tell you that then, you know, around the world, I mean, they got. Various other countries have been watching this and, you know, they know exactly what’s going on. They’re now, I think, less frightened of America because of the signal of. On trade. America is withdrawing from the world. Oh, hooray. We can actually now advance our nations and we can do it if you like. I mean, honestly, Honestly.

And politicians, you know, don’t really go together too much, but at least more honestly than a situation where the politicians are bought and paid for by America and Britain. That is now hopefully coming to an end. And I think that because so many of these countries are going to be less fearful of us, then they will get on with business with China and Russia. And this is a major, major change. The global financial map is being redrawn, and silver is positioned right at the center of this tectonic shift. As US leadership becomes more unpredictable and economic policy turns aggressively inward, nations around the world are no longer waiting.

They’re actively building systems that don’t rely on the dollar. What began with sanctions and tariffs has evolved into something much bigger, a geopolitical realignment that threatens to permanently reduce America’s financial dominance. China and Russia are leading the charge, creating parallel trade networks and expanding bilateral settlements and local currencies. South Korea and Japan are exploring regional trade pacts that deliberately avoid the dollar. And throughout Asia, the message is clear. Dependence on the US is a risk. What fills that vacuum? Tangible assets with global recognition. Gold, yes, but increasingly silver too. Silver’s role as a monetary metal becomes more critical in a world seeking alternatives to dollar denominated assets.

And because silver is also a key industrial component, it bridges both the hard money and productive economy. This duality is unique and powerful in a multipolar world. Silver isn’t just insurance against fiat collapse. It’s A foundational asset in a new financial order. While central banks accumulate gold, private investors and institutions are starting to recognize that silver could be the next store of value in a system no longer governed by the Fed or Wall Street. It’s real borderless and trusted across cultures and centuries. And as this global shift accelerates, silver becomes not just relevant but essential. But I didn’t, I mean, yeah, I don’t think there’s anything further insofar as circumstances, whatever they may have been, drove huge great premiums on Comex which had the effect of sucking out liquidity because of the arbitrage opportunity, physical liquidity out of other cent, particularly London, secondly Switzerland and then some other centers as well that I think, I mean, obviously the premiums have diminished.

I mean there’s still sort of tend to be small premiums, if you like, on the futures market on Comex in New York. But you know, the big rush I think has basically happened. My reading of it is that you’ve got to think in terms of the stands for delivery which have yet to be delivered, which is still sitting in the COMEX warehouses. You can see the charts, if you like, of those totals over time and quite clearly you’ve got two peaks. The first one was just after the COVID problem when we had equally a crisis and it was a crisis which led to gold being moved from London to Comex.

You may remember that we have a second cris. It’s less obvious because we don’t have a Covid, if you like, driving it. But I have no doubt at all that it’s a shortage which will persist on top of that. I mean, we don’t know who’s been standing for delivery, but the rate of stand for delivery has increased roughly fourfold in the first quarter of this year over last year. And this is, you know, this as I understand it, as much of it is yet to be delivered. It’s a. I mean we’re talking about 400 tons in the first quarter.

So that has to be covered if you like, because otherwise if you don’t cover it as a bank, you’re at risk. And so I think that does explain that. But there is another factor and that is that because quite a lot of this gold was right now the gold to silver ratio is screaming buy and barely anyone’s listening. At over 100 to 1 earlier this year, it means you’d need more than 100 ounces of silver to buy a single ounce of gold. That’s not just historically high, it’s absurd. In previous precious metals Bull markets. This ratio has always collapsed violently.

In 1980, when silver last touched $50, the ratio dropped below 20 to 1. In 2011, when silver surged again, it fell under 35. The pattern is clear. When gold moves first, silver plays catch up. And it doesn’t just catch up, it slingshots past expectations. So why does this matter now? Because gold has already made its move. It broke through $3,000 powered by Central bank hoarding and fiat fear. But silver, it’s lagging far behind its historical pace. That’s the opportunity and that’s the danger. For those ignoring it, this kind of gap doesn’t last. The ratio always mean reverts.

And when it does, silver doesn’t just rise, it explodes. What makes this moment different is the setup behind the numbers. Central banks are stepping away from leasing, the dollar is weakening. Trade wars are destabilizing the global economy. And the supply demand imbalance in silver is more extreme than ever before. This isn’t just technical, it’s structural. The ratio is no longer just a number on a chart, it’s a countdown. And when it breaks, silver won’t just be playing catch up, it’ll be breaking out. Yes, indeed. I mean, this is a drum I’ve been beating for a little while.

You know, we’re top of the credit bubble and it’s the biggest credit bubble in history. And if you don’t understand the credit bubble, just think about the debt bubble. You will, I’m sure, confirm that we’ve never seen so much debt in the world. Credit is the other side of debt. This is the biggest credit bubble in history. And credit bubbles are reflected in stock prices. And when they go pop, they go pop, they go down. And I think that’s what we’re seeing. The situation is made worse by Trump’s tariffs because of timing. I mean, you know, at any other time, if we weren’t in such a bubble, these tariffs I don’t think would have such a great impact.

But the, the combination really of a debt bubble bursting and tariffs is exactly what we saw in 1929-32. And this time it’s even worse because the, the debt bubble is even bigger. And also the, the tariffs have a greater effect because back in 1929, basically, America was more or less self sufficient in terms of imports and exports and so on. Nevertheless, the impact of Smoot Hawley was really pretty bad. Today, of course, everything works on supply chains. You know, people like Apple and all the rest of it, they’ve got manufacturing facilities in Eastern Asia and all the Design is done in California.

If you read the blurb on your, if you can even read that fine gray print. Yes, that’s exactly what it says. Exactly. Yes, exactly. I think it’s designed for younger people than us. But as a serious point though, the combination of the two things I think is likely to be worse this time, potentially worse. And it’s difficult really to see what the Fed or the US treasury can do about it. We have, I mean, undoubtedly they’ll go into the markets and try and steady them. We might have seen a bit of that this morning, though I think there’s probably more to do with a bit of bear closing.

This is Monday, incidentally. What, the third, fourth day of Trump’s announcement on tariffs. But I think there’s a long way further down to go. I mean, I don’t make the comparison with 1929-32. Likely. It is exactly that. So I think we’re going to see a very significant fall in stocks, stock prices. Trump’s Liberation Day tariffs were supposed to make America strong again, but instead they’ve triggered the most chaotic geopolitical realignment in decades. And silver is riding the chaos. These tariffs aren’t just about trade. They’re economic weapons. When Trump slapped those massive levies on Chinese imports, China didn’t flinch.

They retaliated, launching a full blown counteroffensive with their own 34% duties. What followed was a global ripple effect that’s tearing apart the fragile post pandemic supply chains. But this isn’t just about higher prices at Walmart. It’s about the collapse of trust between global powers. Countries are beginning to hedge against American financial dominance. South Korea, Japan, China, they’re all now seeking tighter alliances and trade routes that bypass the US entirely. Russia and China are expanding their partnership into something resembling a new economic bloc. And silver is caught in the middle, but not in the way you’d expect.

You see, when fiat systems fracture, hard assets shine. The tariffs are disrupting industrial flow, which is squeezing silver from the manufacturing side. But more importantly, they’re creating macroeconomic uncertainty that’s driving capital towards safe havens. Gold has responded, breaking past $3,000 an ounce. But silver, still undervalued, still overlooked, is the sleeper giant. And as the trade war escalates, the appeal of silver, as both an industrial and monetary asset, only intensifies. We’re not watching history repeat, we’re watching it mutate. And silver is becoming the asset of the realigned world itself. And it will feel that it doesn’t need the rest of the world, I mean, this is the message it’s giving through its trade tariff thing.

It wants its manufacturing to come back home, it doesn’t want anything abroad. This is a very, very parochial and autarkic view, if you like, but that’s what we’re dealing with. Europe has a huge, great problem. It doesn’t know where to turn. I mean, they’re still, if you like, guided by their own propaganda. They believe their own propaganda about Russia and that’s something that will have to change. How long it’ll take them, I don’t know. But the longer they delay, the worse it’s going to be for Europe. And when I say Europe, not just the eu, but Britain as well.

Britain, I think, is trying to be a bit more realistic and it’s got more flexibility than, say, Germany or France or whatever, so. But nonetheless, I mean, what we’re looking at is the financial world. I mean, putting just Japan to one side out of this because of their intended new alliance with China and South Korea. But I mean, you’ve got the uk, which is the major financial center in Europe, you’ve got Europe itself as a major trading block and you have America. That’s where the disaster is in those nations. So from the point of view of China and Russia, why should they be involved with it? And I think the implications of this for the dollar are very stark.

We’ve been talking for a long time speculating about what currency BRICS is going to come up with. They need a new trading currency. It started off with the Eurasian Economic Union, Sergei Glazier being appointed to come up with this new currency, if you like, for the members of the Eurasian Economic Union to trade amongst themselves. And this would be the model for the wider bricks, whatever, all this sort of stuff. The problem now is not so much that story, the problem now is that buying, withdrawing from the world, the dollar is going to be, if you like, it’s going to go down its importance a lot more quickly.

And Asia now does need to find a replacement. Now, we don’t know what form that’s going to take. I know what I would do if I was involved with any policy committee, but I’m not. And it won’t surprise you to learn that. I think that the way forward, quite simply, is to reintroduce a system of gold standards, a credible where paper currency can be exchanged for gold at a fixed rate. That would be the way forward. And that was indeed the basis of the Industrial Revolution, first of all in Britain and then all around Europe and also America.

In the 19th century and up to the First World War. That is the only way to do it. Whether China, I mean China has got the gold reserves, Russia has got the gold reserves to do it. Quite a few of the other nations haven’t got the gold reserves. They could probably tie in with a more stable currency or a currency which has the gold reserves. I guess that the way in which central banks have been accumulating gold to sell fiat currency means that in policy terms, they’re already moving in that direction. The banking system is crumbling from within and silver is feeding off the wreckage.

What we’re witnessing now isn’t just another banking scare. It’s the exposure of a dangerously over leveraged global financial architecture. In the us, banks are sitting on a knife’s edge with leverage ratios as high as 15 to 1, meaning a mere 7% drop in asset values could wipe out their entire equity base. But it’s not just America. European and Japanese banks are even worse, boasting leverage levels of 20 to 1 or higher. That’s not sustainable. It’s a powder keg. And right at the heart of this crisis lies commercial real estate, where delinquencies are surging and values are collapsing in real time.

These banks are not just vulnerable, they’re already in silent distress. The Federal Reserve itself is in negative equity. Think about that. The very institution meant to stabilize the system is technically insolvent. As confidence in the banking sector deteriorates, investors are starting to flee toward anything with real intrinsic value. That’s where silver enters the picture. Unlike stocks or bonds, silver isn’t a promise. It’s a tangible asset outside the system and immune to the kind of accounting tricks that got us here in the first place. And while the mainstream media focuses on the symptoms, silver investors are watching the disease spread from the core.

Every fail bank, every emergency bailout, and every whisper of insolvency makes silver stronger. This is the crack in the dam and it’s only getting wider coming out of the bank of England. And because therefore a lot of this gold, or some of this gold was leased gold, which nor ordinarily would remain vaulted in the bank of England and merely be a book entry transfer, because that has come out, it has alerted every central bank with balances in both New York and also London and I suppose to also Switzerland, to the risk from leasing. And I think it means that that leasing game is now stopping.

I don’t think any central bank will lease gold from this moment. Now there are leases still running. And the problem with leases is that you lose possession, it may remain vaulted, but you’ve lost possession. And furthermore that gold may be rehypothecated into another lessor. So this is a situation which is actually very, very bad for any central bank wanting to protect itself against the ending, if you like, of the fiat currency system. As far as the market is concerned, the withdrawal of this leasing is going to withdraw a very important point part of supply of the supply which is necessary for the derivative system to work.

It needs the liquidity, if you like, of leasing in order to work that is now going. So what we have, I think is even though the premiums have gone from basically gone out of comex futures, now we have, I think, the potential for a systemic problem arising from the lack of supply in a market where the future value of paper currencies is diminishing. It really is beginning to mount up. It’s a number of things all coming together. I mean, there’s a film a long time ago called the Perfect Storm and I think it’s an apt description for what is basically developing in the gold market.

Bank stocks are tanking, central banks are quietly pulling the plug on gold leasing, and Trump’s trade war is spiraling into full blown economic warfare. Yet almost nobody is looking at the one asset that could benefit from it. Silver. Right now, while panic spreads across global markets and headlines scream of systemic collapse, silver is silently gaining strength, trading just under $35 and gearing up for a breakout that could leave gold in the dust. This isn’t just a short term trade, this is the perfect storm. With a 101 gold to silver ratio flashing its loudest buy signal in decades and central banks shifting away from leasing to full on accumulation, the stage is set for silver to rip higher in a way we haven’t seen since the chaos of 1980 or 2011.

But there’s more. Because what’s fueling silver this time isn’t just fear or inflation. It’s a global reset in how money, power and trade are structured. The collapse isn’t coming. It’s already begun. And silver, it’s not just reacting, it’s about to lead.
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