Ah-huh! Aw, $20! I wanted a peanut! $20 can buy many peanuts! Explain how! Money can be exchanged for goods and services! Woohoo! Hey, gotta get a cuckoo out! Hey guys, Raf here from the Endgame Investor and Gold is starting to pull away from the station. It’s starting to go faster and faster now. We’re seeing triple digit moves in a day, in consecutive days now. And in this video, I wanted to deal with three issues. First of all, Basil III, which has absolutely nothing to do with Gold’s price direction now. Nothing! Absolutely nothing! Nothing, LaBoltke.

Nothing. It doesn’t have anything to do with the fact that Gold is rising. And I’ll explain to you very simply why. And that anyone who says that it is has no idea what they’re talking about. I also wanted to talk about the Gold to Silver ratio. Why is Silver lagging so badly? Why is Gold leading so tremendously? And when does that change? I’ll give you a simple reason why and why it will only change the last minute before the Endgame finally kicks in. So you should bless the fact that Silver is lagging Gold right now because I believe that is the only thing that is keeping the monetary system together.

But it will not last forever. The other thing I want to discuss is, if you want to keep stacking, if you don’t have enough Gold yet, or you believe you do not have enough Gold yet, is there still time to stack? And my answer is yes. Because in the Endgame, relative to stocks at least, Gold has about an order of magnitude to go. And I will show you this in a very simple chart. And regarding the Gold to Silver ratio, I’m going to do something that I don’t normally do in these regular monetary videos. And I will venture into a little bit of what I do in the Patreon, which you can find in the link in the description below, where I give religious lessons in monetary topics.

And I will give one for my whole audience in this video. And it’s about Silver and how it only rises in the last minute as the last step in the completion of a long process. Anyway, I wanted to start with Basel III. And the only one who I believe gets this right is Keith Wiener of Monetary Metals. And it is a great company. And they take your metal and they loan it out to jewelry companies, completely covered, very low risk. You can read about all their leases at the site in the link in the description below.

If you want to earn ounces on your ounces at reasonable interest rates of between two and four percent, some of them I recommend keeping with you in a Dirty Man safe. Because if the electricity goes down or the power grid goes down, whatever it is, you’re going to need some physical ounces on you that you can get to very easily if you need to make an emergency purchase of food or defense or whatever it might be when the Endgame finally kicks in. You can go get a Dirty Man safe at the link in the description below and use the code Endgame10 at checkout for 10% off and to support this channel.

Let’s begin with Basel III and Keith Wiener’s take, which I believe is the only correct view. And that is that Basel III has nothing to do with gold’s current rise and nor will it have anything to do with gold’s rise in the future. And by extension, Basel III has nothing to do with the fact that silver is lagging gold so badly right now. This is a page on the Monetary Metals website. Again, you can click the link in the description below if you’re interested in their service, which is earning ounces on your ounces of gold and silver in gold and silver terms.

So here we go. This is the most distilled version of Keith Wiener’s view on Basel III. And I believe it is correct because, frankly, when people talk about Basel III and they try to sound sophisticated, I have no idea what they are saying. But this I understand very easily. So it says here, and now we get to gold. And this is quoting an article written by Keith. Gold under Basel III. Gold is an asset. Under the new regulations of Basel III, gold is assigned a required stable funding of 85%. This is up there with equities. In other words, regulators see it as risky to hold gold.

So they want to make sure that banks fund it mostly using liabilities that cannot be pulled with expensive liabilities. So basically, if you have gold and you are a bank, you have to back that market value of that gold and dollar terms with 85% in short-term treasury bills and other very liquid assets as defined by Basel III. Basel III does not understand that gold is money and that treasury bills are only IOUs. They think gold is an asset, the dollar is money, and treasuries are closer to money than gold is. That’s why they require 85% backing.

What is the effect of that? Let’s go to the next paragraph. The gold community should not be cheering this as good for gold. We should be screaming bloody murder. Gold is not risky like equities. Gold has no default risk, and its price risk is not that high. In other words, very simply, gold is money itself. Money can be exchanged for goods and services. It has the lowest risk of any asset. That’s why it’s money. In fact, Keith continues, if a balance sheet holds a small amount of gold, it acts as a hedge. It reduces drawdowns. We plan to publish a paper on this soon.

The World Gold Council submitted comments to the Federal Reserve on the proposed rule, enhanced prudential standards and early remediation requirements. It argued that gold should be included in the decision of highly liquid assets, meaning it shouldn’t require 85% backing in terms of treasury bills and other highly liquid assets. It should be itself considered a highly liquid asset. He continues here, it should not require term funding under the net stable funding ratio. It makes no sense to back money itself with things that are less liquid. The World Gold Council, he continues, included quotes from the HSBC, UBS and other banks and banking associations, as well as the London Bullion Market Association.

They each argue for a low or zero required stable funding. Basel III assigns gold in 85%, which is the opposite of low. Thus, the final sentence is key. Thus, the net effect of the Basel III regulations on gold is that it now costs more for banks to own gold. What is the effect of that? If it costs more for banks to own gold because they have to back it by 85% of things that are considered more liquid than gold, which are dollar-based and other debt assets, then they cannot participate as much in the market-making aspects of the gold trading market.

Which means if you’re a bank and you want to buy from sellers and sell to buyers simultaneously, which was what a market maker does, it costs more to do that because you got to back it with a bunch of treasuries and other stuff. What’s the effect of this? The effect is that market makers pull out of the market. We saw that, I think, with Scotiabank a few years ago, just before or just about, or concurrent with the Basel III regulations, which came into effect in 2022. Now, the fact that there are fewer market makers and banks make less money, less dollars, making markets for gold trading, that means that gold liquidity goes down.

What is the effect of Basel III on gold? It doesn’t say that it goes higher or lower. It doesn’t affect the price direction. It affects liquidity. If there are fewer market makers in the gold market, there are less sellers selling to buyers and less buyers buying from sellers, which is what market making does. Therefore, liquidity goes down, so whatever the prevailing direction of gold is going to be, whatever the environment is, if there is a big rush for gold and the price wants to move up because there are a lot of new buyers in the market, the price will move up faster than otherwise because liquidity is lower.

So, too, if there’s a big crash in gold, for example, if there’s a liquidity crunch, which it still will be, and I believe it will bring gold and silver down one last time when we hit that final banking crisis, it’s going to be worse than it otherwise would be. If there were more market makers in the gold trading market, and there would be more if they required less backing by the 85% requirement that Basel III requires. So, what can we say that Basel III, what is the effect on gold? Its effect is to magnify the move of gold in whichever direction the market wants to push it.

Right now, that direction is up, and that’s why we are seeing such huge movement up. So, the other question is, how much farther does gold have to go before endgame? The answer is an order of magnitude relative to stocks, and I’ll show you that chart right now. Here we have the second chart. This is from gold charts, RUS Gold, colon. About an order of magnitude to go versus stocks. This is the gold to S&P 500 ratio going back to 1970. First of all, you can see that gold has outperformed the S&P since 1971. You didn’t have to buy the S&P.

You could have just bought gold ounces, and you would have been ahead of S&P 500 investors going back to 1971. Now, we see here that the current ratio, you can see this number, it says 1.59. I’m rounding it up to 1.6, and you’ll see why in a second. So, if you look at this number down in 1980, when gold maxed out at $872, that was a ratio of 0.16. Around there, I’m estimating, I don’t know exactly, but I’m just saying 0.16 to make a point here. It could be 0.17, it could be 0.175, 0.162, I don’t know.

But anyway, if we move from where we are now, 1.6, down to 0.16, that means the value of gold relative to stocks is going to move 10 times relative to the S&P 500. So, yes, there is time. And we have a trend line here going from 1980 to 2011 in gold relative to S&P 500. And we see that this trend line is going to break at about 1.1, 1.2, whatever that is exactly this blue line here. It has not broken yet. We have this triple bottom here to break first, and I think we’re going to break it very soon.

You can see here a zoom in of the right side of the chart here where we are. We’re about 1.5 on this here. It says here 1.59, so we’re about 1.5 actually. This is, I think, a day or two behind. It says this is from April 2025. I don’t know exactly which day, but 1.5, 1.6, it’s all a day apart. It’s all very close. So we’re very close to the 2020 low here, which is when gold was heading down with everything else, but heading down much slower. So we’re going to break this, and when we do, we’re going to head down much lower.

So finally, why is gold heading higher and silver not so much? Let’s just cut this to very simple terms. Gold is the rich people’s money. It’s the banker’s money. When banks are nervous, they buy gold. I mean, central banks, because central banks don’t get bailed out because they’re the money printers. They do the bailouts. When they get nervous, they buy gold. And very wealthy people, people who understand the trade system, who control huge amounts of capital in China, understand the effects of the tariffs and why that will destroy the dollar. So when they think that the dollar is being destroyed, they go after gold.

They don’t care about silver. They don’t need it. They have too much money, too many dollars, and they need a gold vehicle to store it in. Silver is the people’s money. And the people, the public, is always the last to wake up to reality. But collectively, they are much stronger than the rich people and the bankers and the central bankers, because there are so much more of them. And even the poorest person can afford a few ounces of silver. So since the public always wakes up last, we can expect silver to finally catch up to gold.

Evan! Hello! I love you! Doug, the red line is at the floor! When the public finally does awaken, I wanted to demonstrate this principle from the book of Exodus. And this is where my Patreon comes in. You can subscribe to that at the link in the description below for as low as $3 a month. I’m really not trying to make money on it. I’m just trying to prevent spammers. And you can get a once-weekly lesson, sometimes once every two weeks, on monetary policy, economics, and government from a biblical perspective. On the Patreon, I usually start in the Hebrew, and then I translate as I read this time.

Since there are more people watching, I will simply read the English translation provided by Safaria. This is a work called Shmoat Rabba. It’s exegesis on the book of Exodus. This is the very end of the book of Exodus when the tabernacle, which is made out of a lot of gold and silver, is being completed. Now, this is an episode that is repeated twice. In two portions in the book of Exodus, entirely repeated. It’s very verbose given that this entire thing is written twice. Now, the question is why write it twice? And the Rabbis try to answer that question here.

It says, quoting the first verse of this portion, the final portion of Exodus, these are the reckonings of the tabernacle. This is an accounting. He’s accounting for all the gold and silver that is being used because he doesn’t want to be accused, Moses, of stealing anything. Such and such was expended on the tabernacle while he was sitting and calculating. Basically, Moses is, Moshe Rabbeinu is the accountant here or the internal controller trying to keep tabs on everything that is being used, so nothing is stolen, nothing is missing. While he was sitting and calculating, he forgot the 1,775 shekels, silver shekels, I might add, this is silver, from which he crafted the hooks for the pillars.

He began sitting and wondering, now said, he said, now Israel will find justification to say that Moses took them. He’s missing a few shekels of silver and he doesn’t know what happened to them and he’s confused and he gets nervous that people are going to accuse him of being a thief. What did God do? He enlightened his eyes, meaning enlightened Moses’ eyes and he saw that they were crafted. The silver was crafted into hooks for the pillars. At that moment, all of Israel was satisfied regarding the labor of the tabernacle. What caused this? It was that Moses sat and satisfied them.

That is, these are the reckonings of the tabernacle. In other words, that this entire portion, which is repeating the entire construction of the tabernacle, the final piece of it were a few silver hooks crafted out of the half silver shekels that were donated by the people, a half shekel each, which means that the silver is donated by the public. Each of them had to donate one half silver shekel. And what do they create? They’re used to create the hooks that hold the entire structure together. Without the hooks, it would be separate parts.

It wouldn’t be a single tabernacle. And Moses himself forgets about the silver because it is the least precious of the metals that were donated to the tabernacle, but yet the most important, because it represents the public. The public donates the same amount, one half shekel for each person. But it can be very overlooked and it made Moses nervous, but he understood at the end and he remembered that he did not miscount anything that it’s all accounted for. The KGB is a circle of accountability, nothing more. And at the very end, you put the hooks together and you make one structure out of this entire thing.

Silver always comes last, but it is the most important material in the monetary system. And it will be again. This is Rafi the Ink Investor, and I’ll see you guys on Thursday for the Weekly Silver Report. Yes! Thanks for watching!
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