➡ China is now the third largest trading partner for the U.S., with Asian countries being China’s largest trading partner. These countries are connected to a system that allows banks to trade freely with reduced fees. Meanwhile, silver is being rapidly withdrawn from the market, with over 100 million ounces taken out in the first half of 2025 alone. This, along with China’s strategy of acquiring silver through off-exchange deals, could lead to a significant increase in silver prices.

➡ The demand for silver is rapidly increasing due to its use in various sectors like solar panels, electric vehicles, and artificial intelligence, with no cheap substitute available. This is leading to a potential shortage as the supply can’t keep up with the demand. Meanwhile, job reports from the Bureau of Labor Statistics have been misleading, causing market reactions based on inaccurate data. Lastly, the government’s plans to issue stablecoins and control interest rates could lead to more inflation and a potential devaluation of the dollar, while the increasing demand for physical silver could reveal its true value.

➡ A new financial system is being set up in Asia, where transactions can be settled in gold, bypassing the traditional SWIFT banking system. This system, which is being developed by China, Hong Kong, Thailand, and the UAE, is expanding to include oil-producing countries and China’s major trading partners in Southeast Asia. Meanwhile, the value of silver is significantly undervalued compared to gold, and the high level of margin debt indicates a potentially dangerous market situation. Finally, the Federal Reserve is expected to cut rates, which could lead to a decline in the value of the dollar and a rise in the value of silver.

➡ The financial system is under stress due to a trillion dollars in margin debt and the physical silver market is being heavily drained. This, along with a weakening dollar and other factors, is creating a perfect storm that could lead to a sudden, drastic increase in silver prices. This situation could result in a significant wealth transfer for those who act early. However, this is not financial advice and professional consultation is recommended before making any investment decisions.

Margin debt just hit 1.008 trillion, the highest level in history. That’s more leveraging at the peak of the dot com bubble or the 2008 crash. It’s the most dangerous signal in the markets right now. MA and PA have virtually no exposure to commodities as the world’s commodity exchanges are being bled dry month over month. The largest deliveries ever, 6 billion in the first three days of this month. 8 billion in May. The largest silver delivery ever. In May, the largest gold delivery ever. And on and every month we’re seeing this. And the public has virtually none.

On the other end, the insiders are dumping stocks at record levels. Jeff Bezos, 6 billion worth of stock since June. He sold. Look at Jamie Dimon, look at Warren Buffett, look at Zuckerberg. They’re all dumping the institutionals. The big traders have been averaging 2 billion a week since June of sales. They’re all leaving the equity market. And. And you have the largest amount of margin debt ever and the largest allocation to stocks by the retail public in all time. What could possibly. You’re watching Silver News Daily. Subscribe for more. Wall street is balanced on the edge of a financial cliff.

And the drop below is deeper than anyone wants to admit. Right now, one deals $108 trillion in margin debt, the highest in history, is hanging over the markets like a live grenade. And the pin has already been pulled. Insiders aren’t waiting to see what happens next. Bezos, Buffett, Zuckerberg. They’re cashing out of stocks at record speed, moving their fortunes into safer ground while the public is still being told everything is fine. But here’s the twist almost nobody sees coming when this overleveraged machine finally buckles. It won’t just be stocks that get hit. The paper silver market, bloated, manipulated and built on promises that can’t be kept, will snap under the pressure.

And when it does, the rush into physical silver could send prices into the stratosphere. We’re not talking about a modest rally. We’re talking about the kind of moonshot that makes $500 silver not just possible, but inevitable. The wealth transfer is already underway. And the question is simple. Will you be on the right side of it when the fuse burns down? The physical metal is actually changing hands. Now, in terms of how much is leaving the exchange? A lot. Not all of it, but a lot is actually leaving the exchange. And August is one of the major months for gold.

And you typically see higher open interest in delivery volume. But the strong intent to take physical metal, where every single Contract has been stopped, meaning buyers aren’t shutting their positions, they’re taking delivery. This is ridiculous. I mean, it’s huge. But this is exactly what we’ve been seeing. The delivery volume and the vault withdrawals, the loadouts, it’s called. There’s been steady outflows suggesting that loadouts are occurring relative to deliveries more so than ever before. And so I think it’s really, really important. It’s not a one to one, but it’s pretty damn close. And so silver supply, same thing.

You know, we’re seeing huge deliveries. This isn’t a primary delivery month for silver, but still huge delivery and they’re leaving. We’re seeing huge inflows into the ETF’s massive demand for silver. And I think it probably is the most undervalued asset on the planet. But gold is getting the spotlight. Silver’s kind of in the shadows. I just think that, look, we’ve talked a lot about what’s going on behind the scenes where China is quietly stockpiling both gold and silver through unofficial channels, enabling it to purchase silver without affecting the silver spot market. I think that’s really where the mystery is, how much silver is being accumulated by countries like China.

I think they’re making a specific drive to accumulate stuff off exchange. Even though we are seeing a lot of deliveries because it’s a smaller market, they’re trying to keep it, I guess you could say less apparent to the rest of the world what they’re doing. So, no, it’s, it’s amazing the, the amount of gold that’s been delivered in just the first three days. But this is what we’ve been talking about now, every month since the beginning of the year. And it, it’s showing no signs of slowing down. In fact, it’s, it’s showing signs of margin. Debt isn’t just a number.

It’s the fuel for a market firestorm. When investors borrow over a trillion dollars to buy stocks, they’re stacking dynamite under the entire financial system. It works fine as long as prices keep rising, but the moment the market dips, margin calls kick in. Brokers demand repayment, and the only way to raise cash fast is to sell. Those forced sales push prices even lower, triggering more margin calls, more selling, and a brutal downward spiral that feeds on itself. We’ve seen it before in 2000 and 2008, and every time the collapse happens faster than most people can react to.

This time, though, the stakes are even higher. With debt levels at all time highs and valuations stretched to extremes. Even A modest correction could unleash a liquidation wave that sweeps across every sector. And while the average investor is busy watching their stock portfolio implode, the smart money will be flooding into hard assets, especially silver, before the crowd even realizes what’s happening. That’s the part of the play, but part of the playbook the public never gets to see until it’s too late. Yeah, it’s extraordinary. You know, we’ve talked about how significant the deliveries have been every single month.

It’s not an anomaly anymore. I mean, if you look at the COMEX delivery numbers, you go back to November, but look at them and they’re extraordinary. Someone or some institutions have a very, very strong desire for physical delivery. So far, just through the first three days of the August contract, we saw 20,126 contracts stand for delivery. That’s just in the first three days. That’s, that’s. Let’s just do the math. 20,001 26 times 100 ounce bars. So let’s do that math here. 20,126 times 102,012,600. Let’s just call it times 3,400 ish. That works out to $6,842,840,000 worth of gold in the first three days of the delivery contract.

Silver. This is not a major delivery month for it. We saw 1,064 contracts worth about just over 5.32 million ounces of silver. Each contract’s 5,000 ounces. So again, in platinum. 1,006 contract. Yes, that’s 50,300 ounces. Each contract is 50 ounces. What’s really significant, and these are very significant early numbers, especially with gold seeing huge delivery volume in the month already. This suggests strong demand for physical. And what’s really interesting is so far every contract that has been issued is settling in physical metal, indicating the real demand. And it’s like a one to one ratio. This is significant because you, you rarely see that happen in, in comex.

I’ve mentioned that to you in years before that. You know, futures contracts are usually closed out before delivery. They’re traded for profit or settled in cash. When contracts are stopped, which is what the lingo they use, that means when the richest and most connected players in the game start heading for the exits, it’s never by accident. In the past few months, insiders like Jeff Bezos, Warren Buffett and Mark Zuckerberg have been unloading billions in stock at a pace we haven’t seen in years. These are people with the best Access to market intelligence, the deepest understanding of economic cycles, and the the most to lose if they’re caught on the wrong side of a crash.

Publicly, they’ll smile for the cameras, talk about innovation, and downplay any risks. But behind the scenes, they’re converting paper wealth into tangible assets that can’t vanish overnight. Buffett’s Berkshire Hathaway has been trimming equity exposure and hoarding cash. Bezos has been liquidating stock in chunks large enough to make headlines. And Zuckerberg is cashing in at a time when tech valuations are stretched thick thin. This isn’t random portfolio rebalancing, it’s strategic retreat. And history shows what comes next. As insiders lighten up on equities. Capital starts migrating into commodities, the dollar weakens, and metals, especially silver, become the ultimate refuge.

What the public sees as routine selling is in reality the opening move of a far bigger shift in where the real wealth will be kept when the storm hits. You know, one of the things that I’ve been fortunate with, I mean, this, it’s weird, almost like I, you know, I often will joke around and I say I see all of these things in my mind. I see a pattern, I connect the dots. I used to call it a linear progression of events with you. I said that for years. And I have either the nerve or the stupidity, the idiocy to say it publicly.

Thousands of YouTube videos out there with me making these statements. And one of the things that I said to you a few weeks ago was the significance of the 11 Asian countries and the five Middle Eastern countries that have connected to Bricks Bridge and how this is something very big. We talked about how Sergei Lavrov, the Russian Foreign Minister, said, yeah, we’re opening up the, the bridge platform, the Enbridge platform to non brics nations, right? But we focus quite a bit on these Asian countries. And somehow, luckily, I guess maybe I really was onto something because there was an article that just came out of Forbes where they pointed out that China is now just the third largest trading partner for the United States and a distant third behind Mexico and Canada.

In fact, in the month of May alone, China was less than 6% of US trade, which was the lowest level in over 20 years. And then you look at the Asian countries, which is very interesting. These Asian countries that have signed up to Bricks Bridge, together, they have a population twice as large as the United States, over 700 million people. And these are also some of the fastest growing consumer markets in the world with, you know, their middle classes growing. And this group of countries is now China’s largest trading partner by far. Way ahead of the European Union in the United States.

This is coming out of Forbes. And so you have. Let’s just encapsulate this. You have China’s largest trading block, which has 700 million people, which is way more than we have. That is the largest trading partner that is now connected to the bridge system that allows these banks, central banks, to trade with one another free from swift interference in a system that settles in seven seconds at a 98% reduction in fees. And remember what we talked about last week, the BRICS pay, which is a B2B or a bank to consumer. It’s retail. Well, that’s hooked up into this system, too.

So all of these countries who are now working very, very closely with China, that have a much bigger population and, you know, twice, almost twice over, twice as much as the U.S. some of the fastest growing consumer markets in the world with a rising middle class is now able to. Silver is quietly bleeding out of the comics at a pace that should make every investor sit up and take notice. In May 2025. In 2025, the exchange saw its largest delivery month in history. Over 40 million ounces physically handed over. That’s not paper contracts changing hands. That’s actual metal leaving the vaults.

And the drain hasn’t stopped. In the first half of 2025, 2025 alone, more than 100 million ounces were withdrawn. And even August, traditionally a quieter month, opened with 1064 contracts delivered in just three days. Over 5.3 million ounces gone. Registered inventories now sit around 290 million ounces, down 12% year to date. And every truckload leaving the wareh tightens the noose on available supply. ETFs like SLV are soaking up metal, too, adding 15 million ounces in the second quarter alone. Analysts at JP Morgan say this is institutional accumulation, not retail speculation. Meaning the biggest players are locking in physical silver while they can still get it.

And here’s the key point. When inventories are shrinking this fast, price is the only lever left to ration demand. Once the paper market’s credibility cracks, the rush for what’s left will make today’s spot price holds look like a rounding error is because they are going. In my belief, they will allow. Any corporation that wants to issue stablecoins anywhere around the globe will most likely be able to issue them. And they will all be back with Treasuries. It’s not just the banks. They’ll let major corporations issue them in order to pay for things Easier in order to do cross border payments easier in seven seconds instead of three to five days.

This is a quiet play towards fiscal dominance. And look, the treasury needs lowered rates and they need a way to market the Treasuries when no one wants to buy them. How do you do that? Well, you create a synthetic demand by backing the front end of the curve with stablecoins. And then you allow all these institutions and corporations and banks to issue them in the name of convenience and liquidity and expediency. But what you’ve just done is create the most synthetic demand ever for the US treasury market, which is debt. And they call it a stable coin that’s backed by debt.

Does that seem stable to you? I doesn’t really seem that stable to me. And it’s, it just continues to go. The, the stable coins back the debt which enables you to buy more stable coins which backs more debt and on and on and on and on. And it’s kind of a house of cards. But the long end of the curve, which is the more important and so this keeps the engine running, will have zero coupon and redeemable in gold. And if you devalue the dollar by revaluing gold to a much higher level to relique the treasury general account to devalue the dollar, yes, you have inflation, yes, you have a devalued dollar, yes, it’s not good for the average person.

But what it will do is, will enable us at very, very inexpensive rates to bring our manufacturing back with that devalued dollar. It will enable us to have demand for our new exports. But what this says to me, then again, they don’t want to be the world reserve anymore. And that’s when you see Vance come out a year ago, almost six months ago and say being the world reserve currency at this stage of the game isn’t a benefit. 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. While Western investors debate whether silver is worth a second glance, China is quietly cornering the market off the books. Instead of buying on exchanges where large orders would drive prices higher, Beijing has been securing silver through mining deals and direct purchases of DOR and concentrate from producers in Africa and South America. In 2024 alone, official imports jumped 12% to 250 million ounces. But analysts estimate the true figure is far higher once these shadow acquisitions are factored in. By mid-2025, off exchange deals had already locked up another 150 million ounces, and withdrawals from the Shanghai Gold Exchange were up 20% year over year.

Rhona O’ Connell of StoneX believes China’s unreported silver stockpile could be between 1 and 2 billion ounces, enough to quietly tighten global supply for years. The genius of this strategy is that it keeps global spot prices subdued in the short term, discouraging other buyers. While while China quietly builds a war chest of physical metal, when supply tightens further and prices inevitably spike, they’ll already be holding the world’s most undervalued strategic asset in quantities no one else can match. Yeah, I mean, so I really do believe that what they are trying to do, what Besant is trying to do, is to peg the front end of the market, of the bond market, the stablecoin volume.

And it’s the, it’s the fact that the issuance of stablecoins, which I think will, will blow people away, will grow and grow and grow and grow. In fact, I think you’ll see corporations all over the globe issuing them, tied into the system and they’ll be able to, which will then all be backed by US treasuries. But he said stablecoins will create 2 trillion of demand for US treasuries. And his comment was, we are going big on digital assets. Now, it’s funny, you know the topic, the name of my podcast that I do personally, not the one with Michelle, but the one that I do, is little by little speaking to logarithmic decay.

Little by little by little, then all at once. But think back a few years ago, you know, I mean, yeah, bitcoin was there and now everything is here. And stablecoins, what were stablecoins a few years ago and, and now we’re going big on digital assets and you know, they’re going to load up all of those stablecoin, the backing of it, which will be treasured, all be short term debt less than Two years because the rates will be much lower on that. That’s how they keep the engine moving. And then we talked about revaluing gold to devalue the dollar backing the long term treasury with gold redeemable in gold as Judy Shelton says, so that the, the rates are very low, if not nothing, zero coupon redeemable in gold, which acts as the inflation hedge to reassure your manufacturing.

But you know, this is, this is, this is big, okay? This kind of leads to fiscal dominance because what it really does is it narrows the Fed’s dual mandate because it will be the U. S. Treasury that will track where and when U.S. treasury bonds are sold to deliver stablecoins. And so it will be a far greater impact for the US treasury than it will for the Federal Reserve who I think has a much greater say on things right now. And this from that standpoint is something that I think certainly the administration would like. But you know, look, this will radically empower I think the treasury and it will reduce the power of the Federal Reserve.

To me, that’s part of the reason they’re doing it. You know, they say end the Fed. Well, no, but what this will do. Silver isn’t just a safe haven metal, it’s the lifeblood of the modern economy. And right now industrial demand is devouring supply at a record pace. Solar panels alone are expected to consume 200 million ounces in 2025, thanks to a 25% surge in global installations last year and aggressive government mandates for renewable energy. Electric vehicles are another silver hungry sector with usage in batteries, wiring and onboard electronics pushing demand up 15% year over year.

Even the rise of artificial intelligence is adding pressure as data centers and high performance computing hardware require silver coated components to handle massive electrical loads. In total, industrial consumption is projected to hit 700 million ounces this year, nearly 2/3 of all global silver demand. And here’s the kicker. There’s no cheap substitute for silver in these applications without sacrificing efficiency or performance. That means even if prices double, triple or more, manufacturers still have to buy. This relentless industrial appetite isn’t just a side story. It’s one of the core drivers turning today’s tight market into tomorrow’s outright shortage.

I mean, you know, anything that comes out of the Bureau of Labor Statistics is a bunch of bs. It should not be bls, it should be bs. Everything they’ve talked about, everything that they do talk about the CPI data as an example. If, if true inflation was reported the way that it is, there’s no way anyone buy long Term Treasury Bond at 4 or 5%. However, you tell everyone and convince them that inflation’s just 2%, then you know, a 3% inflation adjusted return doesn’t look so horrible, does it? No, it doesn’t. But it’s just one big lie after another.

It’s a scam. So on Friday, June 6, the BLS reported 144,000 new jobs. In May, stocks rallied. Gold price fell by 28 bucks. On July 3, the BLS reported the US had added 147,000 new jobs. In June, stocks rallied. Gold price fell by $17 a night. Craig Hempke, I think wrote this. Thank you, Craig. So they revised the non farm payroll numbers and you wonder how the markets would have reacted if these numbers had been up to date at the time. They revised the 144,000 that we had in May to 19,000 and Junes from 147,000 to 14,000 out of 258,000 jobs.

I mean, you can’t even make it up. So you know, they say 73,000 payrolls increasing by 73,000 less than had been forecast. So okay, great. But then we find. So it’s bad. The numbers that just came out, the jobless rate rose to 4.2%, 73,000 less. But they lopped off 258,000 jobs from the last two numbers. And taken together, those numbers completely change the trajectory of recent trends. So the average. For years, the silver market could paper over its problems. But the structural deficit we’re in now isn’t going away, and it’s getting worse. In 2024, the world faced a supply shortfall of 184 million ounces.

And 2025 is shaping up to be just as bad. With projections calling for a 215 million ounce gap between what’s mined and what’s consumed. Global mine output has been flat for years, even as industrial demand keeps surging. Recycling can’t fill the void either. Scrap recovery has plateaued. And much of the silver embedded in electronics and solar panels is uneconomical to reclaim. Add to that the massive hidden stockpiling by China and institutional investors, and the amount of silver actually available to the open market is shrinking far faster than the headline numbers suggest. The result is a market that’s living off its remaining inventories.

And every bar that leaves a vault brings us closer to the point where supply simply can’t meet demand. When that moment comes, the scramble for physical silver won’t just drive prices higher, it will redefine what high even means. And it’s not going to stop. And I just want to mention two other things before I want to just go back real quick to Besant and real quick because I can’t get it out of my mind. But when I learned that corporations worldwide will be able to issue stablecoins which tracks the treasury bond flow, you’re talking about giving the treasury massive new power and a new mandate, narrowing the Fed’s new mandate or the Fed’s mandate rather.

And I just think people need to take a step back and realize the centralized control under, under the treasury under fiscal authorities. And this is not what what stable coins and this is not what cryptocurrency was meant to be. It’s been hijacked in my opinion. Some of this stuff has anyway buy by the government. And when you realize as I mentioned last week for those who missed it, the interview on BRICS pay, that the BRICS pay system has kyc, KYT and AML technology and we were talking about what is kyt, know your transaction. So all of this stuff comes at a price and that that price is your, your privacy is eroding.

It truly is eroding. And I think that people need to keep this in mind as well because this is it’s kind of like a wolf in stablecoins clothing, if you know what I mean. And I just think people need to be careful about that. And when you realize that the center more or less came out and he said that I want to read this to you because I didn’t really mention it well but he said he said this out loud. What I’m going to do is I’m going to go very, very short term. Wait until this guy, meaning Jerome Powell, gets out, gets the rate and we get the rates way down and then go long term.

In other words, he’s going to keep selling the lower interest short term debt. Then once Powell’s term as Fed chairman ends next year, the Treasury Secretary thinks he will be able to get the rates way down, at which point he’ll start selling long term debt to lock in lower rates or do Judy’s plan. It goes on to say this is a stunning admission by the Treasury Secretary and by extension the White House that they think they’ll be able to steer interest rates much lower through their new Fed pick next year. And coincidentally Besson is one of the obviously on the short list to run the Fed.

But why I want people to think about that is that given the Treasury Department and the White House plan to kind of make the Fed impotent, I think the next inflation cycle starts as early as later this year or early next year. In other words, they’re admitting they want lower rates. They’re telling you this, which is going to lead to more inflation. And I just think it makes really good sense to pay close attention to what they’re doing because it’s starting to me to look pretty obvious that they plan to print a lot of money starting next summer when his term is up.

That coincides with the issuance of the gold backed Treasuries. That would fit like a hand in glove with my feeling of destroying the dollar to support the bond market. Don’t be surprised to see more and more talk of gold revaluation. To devalue the dollar, to push gold up much higher, to peg to the long end of the curve, to have zero borrowing costs so we can bring that stuff back as the engine of StableCoin. And the 2 trillion that he thinks he can get through that runs the country. I mean, I don’t know of any other way they’d be able to do this, but I just think people need to keep this in mind.

I don’t mean something remarkable is happening on the comics. Institutions aren’t just trading paper contracts anymore. They’re taking the metal home. In August 2025, every single contract for silver was stopped for delivery, meaning buyers insist on actual bars rather than rolling their positions forward. This is a sharp break from the old game where large players kept trades in the futures market and avoided the logistical hassle of moving physical silver. Year to date, ETF inflows are up by 50 million ounces and CFTC data shows institutional net long positions climbing 20% from last year. The message is big money is positioning for a world where owning the real thing matters more than holding a promise.

On paper, this shift erodes the leverage of those who’ve suppressed prices by through short selling and paper contracts for decades. Once enough physical is pulled from the system, the paper market loses its ability to dictate the price. And that’s when silver’s true value, driven by scarcity, starts to surface for everyone to see. Trade brics pay free from any swift interference. And the banks, the central banks can trade across this rapidly growing consumer market free from swift interference in seven seconds with a 98% reduction in fees. So the fact that we talked a lot about it is big.

The fact that Forbes just said that they are their largest trading partner now, period, tells you just how big it truly is. And so what you can see is the infrastructure that is being set up right and now that we see that, you can take delivery in gold in Shanghai Exchange in Hong Kong right now. And the second one is being built in Saudi Arabia. Remember before the enbridge stopped being called enbridge because of the BIS interference and now it’s just called the bridge. Who was the fifth partner that signed up as a full member of the bridge technology? It was China, Hong Kong, Thailand, uae, they developed it with the brick with the BIS innovation hub.

And the fifth member, you remember Saudi Arabia, they signed up after as a full participant. Well, where’s the second vault being built? Oh my God, it’s Saudi Arabia. How the hell did that happen? So Saudi Arabia will sell their oil to all of these Asian countries. It’ll settle over the bridge network. The west will have no idea because SWIFT can’t even see it. Zero idea of how much they’re doing. It’ll settle in seven seconds without going through the Swift banks. And it will be then they’ll take all of those currencies of the Asian nations and they will settle in gold if they wish, at the Shanghai Exchange and take physical possession of it.

So this is just the very beginning of what I believe is a new system. And the way they are doing it is ingenious. They’re doing it in a way that is non threatening to trump because it doesn’t have the BRICS name after it, it just has China’s name after it. Right now they’re internationalizing their yuan and they’re internationally the ability to settle their yuan in gold without converting to dollars. Well, how hard will it be just to insert the unit instead of the yuan? It’ll be very easy. And so you are now opening up this trading platform to the oil producing countries and to China’s biggest trading partners in Southeast Asia.

And you are opening this up in a way little by little that when it is fully operational, will be nearly impossible to overthrow. It’s massive news done again. And it just keeps getting bigger and bigger and bigger. The gold silver ratio is one of the oldest market signals in precious metals. And right now it’s flashing in Neon. At 85 to 1 in August 2025, it’s still far above historical norms where the ratio often sits between 40 and 60 during Strong Bull markets. What this means is simple. It currently takes 85 ounces of silver to equal the value of one ounce of gold, suggesting silver is dramatically undervalued relative to its monetary cousin.

History shows that when the ratio gets this stretched, it doesn’t just drift back to normal, it snaps back hard with silver Vastly outperforming gold in the process. In 1980, the ratio collapsed from over 80 to under 20, sending silver prices soaring. In 2011, a similar move pushed silver from single digits to nearly $50 an ounce. With gold already flirting with record highs, a reversion to even the mid range of historical ratios could catapult silver past $100. And if industrial demand, supply deficits and institutional hoarding accelerate the trend, the ratio could overshoot to the downside, putting that $500 target squarely in the realm of possibility.

Margin debt is the total amount of money that an investor would borrow from their brokerage to buy stocks. So if you put in 10,000 of your own money, you can borrow another 10,000 from your broker. And now you control 20,000 worth of stock. But half of that is debt. And there’s a certain level where if it goes below that, you have to come up with a margin call to keep that from. It’s a speculation usually the higher the margin debt generally the more leveraged and dangerous the market is. Margin debt just hit 1.008 trillion, the highest level in history.

That’s more leverage than at the peak of the dot com bubble or the 2008 crash. It’s the most dangerous signal in the markets right now. And remember what we were saying last week. MA and PA have virtually no exposure to commodities as the world’s commodity exchanges are being bled dry month over month. The largest deliveries ever. 6 billion in the first three days of this month. 8 billion in May. The largest silver delivery ever in May. The largest gold delivery ever in May. And on and on. Every month we’re seeing this. And the public has virtually none.

On the other end, the insiders are dumping stocks at record levels. What’s his name from Jeff Bezos. Six billion worth of stocks since June. He sold. Look at Jamie Dimon, look at Warren Buffett, look at Zuckerberg. They’re all dumping the institutionals. The big traders have been averaging 2 billion a week since June of sales. They’re all leaving the equity market. And you have the largest amount of margin debt ever and the largest allocation to stocks by the retail public in an all time. What could possibly go wrong? The insiders are going heavy in commodities and dumping stocks as the public has nothing in the way of commodities and is the deepest in not only the stocks, but also margin debt of all time.

It’s a very, very bad thing. And it just. I mean if you’re a conspiratorialist or realize that the line between conspiracy and reality has grown thinner and thinner and thinner. Or you just realize that the big money, like the little man rule is always moving when the other group has no idea. And it’s. This is how it always goes. So should we expect. August is typically the worst month of the year for stocks. September is usually a bad one too. But should we expect something? Remember what happens in October. We’re at the part of the year where it’s typically very tenuous.

Yeah, choppy so. But at the same time, the biggest money in the world is jumping into gold and silver and no one knows it, no one understands it, no one sees it. It’s a big deal. Done again. And whether you’re talking unemployment, inflation, where the, I mean everything is pointing towards craziness coming up. And to me, the real demand for physical metal on comex underscores everything because that’s never happened before. When you see every the Federal Reserve is quietly setting the stage for the next leg of silver’s rally. And they’re doing it with the one tool guaranteed to light a fire under hard assets.

Rate cuts. With inflation stubbornly holding between 3% and percent and the economy showing cracks, the Fed has signaled a 50 basis point cut before the end of 2025. That’s a double hit to the dollar. Lower rates make holding cash less attractive and they accelerate the erosion of purchasing power. The dollar index is already down 5% year to date and silver has risen 20% just on the expectation of easier policy. This is classic currency debasement, the same playbook that has driven metals higher for centuries. Investors are watching the Fed pump fresh liquidity into a system already bloated with debt, knowing that every printed dollar dilutes the value of the ones they hold.

Gold will benefit, as always, but silver, with its dual role as both a monetary hedge and an industrial workhorse, has the leverage to turn modest dollar weakness into explosive price gains. In a world where fiat currencies are in a slow motion decline, owning silver isn’t just an investment. It’s insurance against the inevitable three month payroll gain went from 150,000 before Friday’s release to just 35,000. And so, I mean, I don’t even know how you how this cannot be. Then it gets weirder, of course. So the woman announcing this, her name was Erica Mc enter for Erica McEntifer.

The only reason I know that is because Trump fired her later in the day, claiming political bias on the BLS data. Now that’s silly. President Trump, with all due respect, that’s silly because, you know, it’s like not counting 100 million working age people who don’t have a job in our unemployment numbers because they fall off. Well, how about that? How about all of the stuff that we do, not including food, energy and housing in the cpi, not putting taxes in the CPI for all of us working. It’s our biggest expense. So look, I just think it’s interesting when us tinfoil hat wearing people talk about conspiracies and all this stuff and I say BS instead of bls.

How much more in your face do you have to know? This is what we saw during the previous administration and I’m sad to see now we’re seeing it here too. It’s like they’re guessing and then when they come back and revise it, you know how many people notice it? Not many. It’s the biggest revision in history ever. But it should be bigger news than than it really was. And while we’re talking these kind of things like the Fed and whatnot, looks like someone named Coogler will step down Aug. 8. Coogler, a former chief economist at the Labor Department, was appointed by Biden in 2023.

And Coogler now stepped down as one of the members of the Fed board. Fed Governor board. So that gives Trump room to put someone in now before Powell’s tenure is up. So things are going to start to get interesting real fast with whoever fills that spot before someone fills the governor’s spot. All the warning lights are flashing at once and the pressure on silver is reaching a breaking point. On one side, the financial system is straining under a trillion dollars in margin debt, with insiders abandoning stocks and parking their wealth and hard assets. On another, the physical silver market is being drained by record Comex deliveries, stealth Chinese accumulation, and relentless industrial demand that shows no sign of slowing.

Layer on top, a structural supply deficit, a gold silver ratio screaming undervaluation, and a Federal Reserve poised to weaken the dollar. And you have a perfect storm that’s no longer hypothetical. It’s already in motion. The tension in this setup is like a fault line ready to give way. It can hold for a while, but when it slips, the release will be sudden, violent, and impossible to reverse. In that moment, the scramble for real silver will turn from a slow burn into a feeding frenzy, and prices will have no ceiling. The system is primed, the players are moving, and all that’s left is for the first spark to set it all off.

Contract stopped. Every single one that was posted went to delivery instead of settling in cash. I mean, these are things you never see, ever and, and it’s continuing. So I guess only time will tell where this all ends up. But even like our allies are pushing back, you know, India is being threatened if they continue to buy oil from Russia with another tariff from Trump. Well, India said we’re not going to stop buying oil from Russia. So, you know, at what point does it piss off our allies so much? We keep poking them where they say, you know what, I’m glad I’m, I’ve set up an infrastructure with these guys.

And at what point does Saudi Arabia, who is a full member of the bridge technology and involved in all of these meetings in part, and setting up a Shanghai metals exchange in their country, all. What point do they say we’re done? I mean, this is the little by. Are they waiting out Trump? I don’t know, but you can see this. And we’re even aggravating Mexico and Canada and all of these countries that have been on our side. We’re putting tariffs on all of the European countries that were supposedly our allies. Maybe they really are trying, I think they are trying to lose the reserve status.

They understand it’s hollowed out our manufacturing. There’s no way back unless we stop being the reserve status. But focus on the legitimacy of our treasury market, that’s more important. And I think it’s a soft default on the dollar and the lesser of two evils. And everything I’m seeing, whether it be Trump’s actions, the market’s actions, the gold inflows, the central bank purchases, the repatriations, the. Everything is pointing to this everything. So, yeah, it’s, I think the worst possible place you can be right now is really, truly is, is a large dollar holding. And we haven’t even talked for a while about the banks.

We don’t need to today. But, you know, keeping your money in a banking system where if things go haywire, you’re an unsecured general creditor in a currency that’s lost 11% this year. And just accelerating the trend that we’ve seen since, you know, forever since the Fed came up and since 71, we’ve lost 90%. I don’t know, I just think it’s time to realize that we’re there. We are there right now with, with this new stable coin bill. You could argue it is a new monetary system that is happening, going from synthetic demand, or, excuse me, from organic demand to synthetic demand.

And that’s where it all starts. So loss of confidence, loss of trust, loss of value. Silver’s path to $500 isn’t a dream it’s the logical conclusion of everything we’ve been watching unfold. Wall Street’s record leverage, insider exodus from stocks, the relentless drain on Comex inventories, China’s silent stockpiling, an industrial appetite that dwarfs supply, and a monetary policy designed to debase the dollar have all converged into one outcome, a violent repricing of silver’s true value. When the paper market finally snaps under the weight of these forces, the rush for physical will be unlike anything we’ve seen in modern history.

Those who positioned early will watch the biggest wealth transfer of our lifetime play out in real time, while those who waited will be left chasing a market that’s already gone vertical. If you see the writing on the wall, now is the moment to act. Because when the headlines finally confirm what we’ve discussed here, the opportunity will have passed. Make sure you’re on the right side of this historic shift. And remember, this is not financial advice. Always speak to a qualified professional before making any investment decisions. SA.
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