➡ Ralph and Phil from the Endgame Investor discuss their differing views on silver’s role as money. They also share their thoughts on tetanus shots, debunking the myth that rusty nails cause tetanus. Additionally, they talk about their experiences during the 2020 global shutdown and how it affected their views on the financial system. Lastly, they express their concerns about the future if the current system survives.
➡ The discussion revolves around the belief that banks sell contracts without physical coverage to intentionally lower the silver price. The speaker argues that this isn’t a significant factor in determining the silver price. They also discuss the creation of the futures market in 1974 for gold and silver, suggesting it was created to suppress gold prices. The speaker believes this is due to a corrupted invisible hand, not a secret group controlling everything. They also discuss how bullion banks operate, suggesting they aren’t speculating on gold and silver prices, but profiting from the spread between buying and selling contracts.
➡ The discussion revolves around the trading of gold and silver, particularly the use of futures contracts. The speaker suggests that when these contracts are created, they artificially increase the supply of silver, which temporarily lowers its price. However, there’s disagreement about whether this is actually happening, with some suggesting that for every contract shorted, an equivalent amount of silver is bought. The conversation also touches on the potential for manipulation in this system, but no definitive conclusions are reached.
➡ The discussion revolves around the concept of short selling and futures contracts, particularly in relation to gold and silver. The speaker suggests that bullion banks might manipulate the market by issuing more shorts when the price goes up, leading to exponential growth in futures contracts. However, there’s disagreement about whether this is actually happening, with some arguing that banks might just be profiting off contracts backed with physical gold or silver. The conversation also touches on the idea that the price of gold is kept down due to everyone being tied to the dollar.
➡ The discussion revolves around the instability of the market, particularly in relation to silver and oil, and the potential for a market collapse. It also touches on the wealth of the baby boomer generation, suggesting it’s largely based on a Ponzi scheme and could be lost as the system cracks. The speaker believes that the wealth will eventually transfer to those holding gold. The conversation ends with a reflection on the potential misuse of capital and the challenges that may arise from it.
➡ The speaker discusses the challenges of managing large amounts of capital and the potential future of industries that may not be financially sustainable. They also express concern about the perceived illusion of wealth among the older generation, suggesting that their assets may not hold value in the future. The speaker advises investing in gold and silver and preparing for a shift towards more self-sufficient lifestyles, such as backyard farming. They also mention the difficulty of maintaining relationships with older family members who do not share their views.

Is like when Spock had to fight Kirk on Star Trek. Best friends forced to do battle. Hey guys, Ralph here from the Endgame Investor with this month’s edition of the Bitter Endgame draft. And I’m glad Phil is here because I got so many commenters cursing me out. Where is Phil? Why don’t you bring Phil on? What’s wrong with you? So just to shut these people up, we brought Phil on because there’s actually a topic that we disagree on and we’re gonna duke it out and fight to the death and it’s gonna be glorious. Goodbye, Jim. And whichever one of us wins doesn’t really make a difference because silver is gonna be money anyway.

And we’re pretty much equal on the. Or on the same page on the divestment thesis. So whatever, whatever causes silver to go down doesn’t really matter, but we’re gonna, we’re gonna fight it out anyway because it does affect people’s mentality on what they think is real because they’ll chase fantasies and all that. And you should know that before we started recording and I thought I should share this with everyone just because I think it’s important information. We were talking about tetanus shots. I’m a little bit of an anti. I’ll bleep that out before, before I publish this.

So what if my, my daughter stepped on a spike? I think like just a regular spike, not like even a middle spike. And then everyone’s telling her to get a tetanus shot. But the thing about tetanus shots is that, that spikes don’t cause tetanus and rust doesn’t cause tetanus. Tetanus is a bacteria that lives in feces. And so in the 19th and early 20th centuries, if you. There was about a lot of horse drawn carriages in cities and there were nails that were keeping the horseshoes in. And one of those nails, those rusty nails covered in horse feces was on this was on the road and you stepped on it and it impaled your foot.

Then you had pieces of horse feces in your foot. That could give you tetanus because they’re very hard wounds to clean. And that kind of morphed itself into nails. Cause tetanus or tetanus grows on nails, which it doesn’t. So you, all you have to do is pretty much wash the wound out, make sure there’s no feces in your foot, and you’ll be fine. But the myth that every rusty nail has tetanus on it gets people to inject and re Inject and re. Re. Inject tetanus shots. And who knows what that does to you over the long term when you don’t need them.

But anyway, now that that’s out the window, how are you doing, Phil? Do you have tetanus? I do not. You. You roped me into another. You wrote to be out of the bunker. You’re, like, knocking on my bunker door, like, come on out and do a show with me. So I actually, I have a question from a friend of mine who’s in the bunker with me for you. He’s a viewer of yours. He said, where does. Does Rafi just know all the memes that he posts? Or do you have to, like, go searching for memes to add? Like, do you just know all these movie quotes? And you can, like, mentally think, okay, I want to use that meme.

And then you summon that video out from your memory. Okay, so. Okay, so I’ll say how it usually works. It’s like a 60, 40 thing. And then there’s maybe. It’s like, maybe like 60, 30, 10. So 60% of the time, it works every time. See, like, that’s exact. See that? That’s exactly how it works 60% of the time. Right? 60% of the time, it works every time. That doesn’t make sense. 60. I didn’t mean to do that, but it actually. It’s a perfect demonstration. So 60% of the time I’m saying something, and then a movie quote just goes off in my head as I’m saying it, because I have an audio memory and I hear the voices of actors in my head when I say certain keywords.

Like. Like, what just happened? And then when I. When I’m editing and I hear myself say it again, I’m like, oh, yeah. Like, I look for that thing and then I put it in. That’s most of the time. The, like, the other, like, 30% of the time is I would plan it because I have an idea in my head. So I make sure that I say the keyword, and then I’ll. I’ll have it prepared. And like, 10% of the time, I’m like, there should be a meme here, but I can’t really think of anything. So I go to getyarn IO and I type in a keyword, and I, like, I see if there’s anything that I remember that fits, and I’ll put it in.

Okay, so there is a meme search a bit, but a lot of it’s just triggered from your extensive Futurama library. Yes, but It’s. It. I. You know, I remember these jingles, and I just remember certain keywords and certain phrases that had a big part of my childhood and into my adulthood. Yeah, that’s. That’s how it works. And it’s. It’s. I never knew this would actually help me maintain an audience or make money, but apparently. Well, do you know, that’s the fact that maybe you’re chasing people away. Maybe everyone’s like, who’s this dork? Like, I’m on a serious.

I want a serious video on metal. And I’m getting this. If I’m chasing those people away. Good. Because then I’m attracting the people who like it. And also, if I didn’t do that, I’d have a really boring time because I don’t want to just talk about gold and silver. I want. I want to entertain myself. Yeah. Are you. I’m honestly shocked. Like, once Hormuz closed, I was like, well, that’s it. So much for the Bitter End Game draft. We’re not doing any more of these. Like, I’m shocked. We’re still intact right now. Oh, yeah. Well, do you remember 2020, when the world shut down? Like, I remember you told me the story when, you know, right after we first met, like that.

That this is public story because you said it. So I can say it again, that you. That. That you saw some kind of episode where I was on. On Arcadia on Chris Marcus’s channel at the beginning, and then something clicked, and you realized that silver was money. And then you had a nervous breakdown, and you were trying to explain it to. To your psychiatrist who gave you Xanax or whatever it was. Right? It was the general practitioner. It was like, the nerd. It was the nurse practitioner or something. I’m like, you don’t understand. Silver’s money. Like, we’re so.

Yeah, I still have it here, actually. I keep. I have the. This is the Xanax right here. I keep it. I keep it on. Okay, just. Just turn. I took, like, one pill. A few moments later, I took, like, two. Oh, okay, wait, you keep it right at your tape right there, like, the whole time. Like, all of your memento. So next to my silver. Next to my silver trophies and things. That’s really. That’s. That’s, like, kind of creepy. No, no, it’s like. It’s not. It’s not creepy in a bad way. It’s, like, creepy in a strange way that.

That of your mementos, like, all of your Bitter Draft videos. There’s a bottle of Xanax right next to you that you don’t ever touch. Yeah, I don’t. I took like two. I. That you did the initial days after. And then I just started building a bunker. Okay, well, anyway, that’s what happened to me in 2020. I started like sputtering and like, and saying like, this, this has to be it. Like what I was saying to my wife, like, okay, like, as. As gold was crashing to 1450 and as all of my, all of my golds and mining stocks that I’ve had, that I had since like 2012 were like crashing to almost to near zero, and my portfolio was looking like it was it.

I was losing my entire net wealth. And I was just, I was just saying like, no, no, they’re shutting down the world. It has to be it. This has to be it. They’re. They’re going to print trillions. It’s going to be like. I was like sputtering. It was like shaking. And they did preach it. Yeah, but. But that we’re still here and it’s 2026. I really thought that was going to be the end game. And, and then when, when things stabilize, I’m like, okay, hold on, wait a second. I got to like, regroup and like, think about this.

The system’s a lot more resilient than we thought. And here we go again. Like, Hormuz is shut and things are still functioning, but at some point they’re not going to. I don’t know what that point is. Please let it be this. Like, I don’t want another five years. I. I know, I know. I mean, can you imagine. Can you imagine the woke after, like just all the. After this, if it survives, like, how bad it’s gonna be? What can that, what else can they do? They’re like cutting off children’s genitals and transing everybody. I mean, what else? There’s nothing left.

I mean, they used to be a lot worse in the middle ages. Yeah, they would draw on quarter people. I was thinking about draw being drawn in quarter because I was stretching today. And that’s not a, that’s not an inflation thing. That was just like a criminal. That was criminal justice stuff. Well, it’s the same lack of respect for humanity that central banks have. Yeah, I don’t know. I don’t know. We’ll see. But let’s hope that’s the end anyway. Speed of the central banks and games. You want to get to our first topic? Yeah. So you believe that paper.

And a lot of people believe this to varying Degrees that the paper price or that contracts are sold by banks without being covered by physical. For the purpose of pushing down the silver price intentionally to some degree. And I would hold that that’s not what’s, that’s not what’s happening. I don’t, I’m not saying it can’t happen, but I’m saying it’s not a significant factor in the discovery of the silver price at all. That’s my position. Can you explain yours? Yeah, sure. So I’m not, I think this is happening, but I’m not wedded to it. So you might, you might convince me.

By the end of this, by the end of this episode, I’ll say, oh, I guess I was wrong. But yeah, I do think the futures market did not exist before. What, 1987, is that correct? 1974. 1974, okay. For gold and silver. For gold and silver. Yeah, the gold, silver futures market did not exist. I think maybe the silver market existed before, but I think the gold futures market. Okay, so the gold is steel. That’s fine. The gold futures market didn’t exist before 1974. And so the question is, well, why didn’t exist? And that’s because gold was honestly valued as money reasonably.

Well. It’s also because gold was illegal to own. Yeah, okay, that’s. But what determined, you know, what determined the price was the interest rate, right? The interest rate is the interest rate for the money. Good is the futures contract. Right? If, if gold. Let’s, you know, hypothetically, if gold is a hundred dollars an ounce or sorry, the dollar is a hundred dollars for one ounce of gold and I borrow a hundred dollars from you at 10 interest, I owe you 1.1 ounces of gold at the end of the terms of the, of the loan. And that’s a futures contract, right? I sold your futures contract from gold.

So that makes sense. After we go, after we let the gold, gold, after we go off the. Close the gold window, going to a floating exchange rate. It, you know, the futures contract, the futures market was created and it seems like it was created to suppress the price of gold, to keep the, to keep everybody doing other things like investing in Apple stock or you know, whatever else. Not in the, in the late 70s, early 80s. That’s why I think, that’s why I think it exists now. I do want to caveat. I don’t think it’s a cabal of mustache twirling villains who get together and smoke cigars and laugh at how they’ve duped us all into using their paper and, you know, I think it’s a.

The invisible hand is a very powerful force, but we’ve corrupted the invisible hand. So everybody is incentivized to. I’m sorry, I live near a fire station. It’s very annoying. I barely hear it. Okay, what was I. When the invisible hand is corrupted, then the question people are still incentivized to go do, you know, to maximize their profits, maximize the utility. But the invisible hand is corrupted. So they’re leading, they’re being led off into weird directions so they’ll be let off into investing in Bitcoin or something else and away from going to money. And because I think part of it is just so much, so many dollars have been moving in, we’re moving into the, you know, investment side that just if gold and silver just kind of sitting there, you know, doing this for 50 years, the, the people, you could, in real terms, they were going down, right? Because, you know, inflation’s going up every, you know, you know, inflation’s going up and, you know, the assets, the assets are massively outperforming traditional money.

And so you could short, you know, you could, you could ride these little fluctuations of the gold and silver doing that and short them, reasonably sure that they weren’t going to do, you know, spike up and catch you in a short squeeze. So that’s what, that’s what I think is happening. I think it’s just a corrupted invisible hand. I don’t think it’s a, you know, I don’t think it’s the cabal of Zioju’s or whatever running everything. Okay, so, so how does, how, how does it work mechanically? Like, let’s say the, if the gold price is spiking or the silver price is spiking, does a banker say, or somebody in the cabal, even though they’re not twirling their mustaches, say, okay, we have to sell a bunch of silver contracts to get silver down? Or are they saying, wow, this is a great opportunity to sell a bunch of silver contracts because the price is so high and it’ll probably fall.

How does it work? Well, I don’t, I can’t speak to motivation, but what I think is happening is a bunch of silver contracts get sold and that shifts, that artificially shifts the supply of silver. Who sells them? It would be the bullion banks, wouldn’t it? The bullion banks. Okay, yeah. So, like, go ahead. So here’s the problem. And people will disagree on this and they’ll call me an idiot and all this stuff. But, but Bullion banks, how they work is they’re, they’re market makers. Like they buy and sell and they do two legs at the same time, right? They’re not speculating on the price of gold and silver.

They, if they want to sell a contract, they have to own the metal. Now people will say they don’t really own the metal, even if their, their bylaws or their regulations or whatever is making them do that. Any, anytime someone on a bull, a bullion bank, trading desk has people operating it. Like, you know, they’re, they’re clicking buttons and they’re deciding what the bank is going to hold. So if they want to go short a contract, they probably, but by the, by the way that JP Morgan works, they have to buy simultaneously on their side in London.

Now the argument is the stuff in London doesn’t really exist or the stuff in London is promised 25 different people and hoping that it’s not going to be delivered. But that’s speculation, right? I’ve never seen any proof, any hard proof that that’s actually the case. Okay, so when people say something like there’s 200 notes for silver above the actual, for each individual piece, you think that is not a true statement. I’ve never, I’ve never seen evidence that that’s the case. I mean, I’ve seen charts, I’ve seen people say it, I’ve seen people like make graphics of it, but I’ve never seen like, here’s the source of this thing has this many silver or the bay or in London there’s this many silver bars and here’s all the claims, and here’s all the proof that these all, all the claims on that bar.

I’ve never seen that. Have you? Yeah, I can’t speak. Yeah, I, I’ve never dived into the technical aspects of a bullion bank, so I can’t, I cannot speak to it. I’ve been, I’ve been taking it as gospel. So, so, and it comes down to it, like if they did that for oil, right? If. How it works in oil is someone is going to, someone owns a tanker, right? And this is how Keith Weiner described it in one of his. He had a webinar or something. And if, if the operator of a tanker is going to buy oil that’s coming straight from the Gulf somewhere and you know, past Hormuz, like up near Kuwait, and he like parks his tanker there and they just like vacuum the oil in and he get.

And if you buy like a Costco, you’re going to pay Less, right? So if you buy an entire tanker of oil, you’ll get it at a cheaper price. But if you’re going to buy that, you buy the contract to buy this, to fill up your tanker with oil in the Gulf, but simultaneously you sell a contract to deliver it in, I don’t know, in Chile, whatever. So you’re profiting off of, you know, you bought, you bought oil here at a discount. You’re selling the contract, sell it there at a premium and you pocket the spread. There’s no, there’s no speculating.

They’re not saying, oh, I think oil, so I’m going to buy a contract. They’re, they’re moving the oil through, cut through buying and selling contracts and profiting on the spread. Right? So that, that’s exactly what is happening in gold and silver. Because if it wasn’t happening this way, there’d be a shortage right there, there’d be, there wouldn’t be enough silver, there wouldn’t be enough gold for whatever industrial purposes. But we never see that. And now, yes, there’s a monetary price and there, and there’s a, there’s an industrial price for gold that just happens to be. Because gold and silver are money.

And that, that just means that when everyone wakes up, there’s not going to be enough gold and silver because everyone’s suddenly going to want it because the dollar doesn’t work. That’s a separate thing. The exchanges, I believe, like you tried to get a bar off a bar of silver from the comex, right? And you failed. So the people, the, we are not allowed to stand for delivery, only the, only the other bullion banks. And I think there might be something of a cartel. So maybe I’m, maybe that is a little bit of mustache twirling in the room.

But I think they, I think that since, since, since the system can’t be attacked from the outside, it’s just this internal system of these like 12 bullion banks or however many there are that they’re willing to cash out. People like, you know, if you, if you show up, you get cashed out. And so if, when they, when they make a future, if this is, if they are playing games, when they make a futures contract and they create all this silver onto the market that doesn’t really exist, they immediately short it. And then the market, you know, a lot of people, the retail traders say, oh, silver’s shit in the bed, I’m getting out.

And so the short, you know, there’s no squeeze. Wait a second, that doesn’t make Sense. That doesn’t make sense. Futures contract. Sorry. The futures contract increases the supply of silver. Right. The artificial increase of the supply of silver causes the price to go down temporarily. Now, obviously, the way this gets attacked is people say, okay, I’ve got my contract. I actually want the silver. So, you know, give me the silver. Then it turns out they got to go out in the open market and buy the silver. Correct. I don’t think that’s what’s happening at all. You don’t think that’s what’s happening? No, I don’t think that’s what’s happening at all.

I think every. Every contract that they short, they simultaneously buy silver on the other side. So you’re saying there’s zero futures? There’s. There’s zero unsupported futures contracts? No, no, I think there are some. No, no, I’m not saying there’s zero, because I could, I could, for example, I could short a silver contract in my, in my brokerage account. I’ve done that before because I had to to get rid of the contract. I could do that without cover. I could do that without covering with physical silver, but in my, in my, in my brokerage, I would have to have the value of that contract always in my account.

And if my account goes below that value in dollars, they would force me to close the position and then I’d be out of it and my whole account would be liquidated. Right. So everything has to be covered notionally. And there are going to be some speculators that don’t actually have the physical, but people that are spread trading, which is most of the open interest, like, I’d say like 90, 95% of it would be covered physically. Okay, so you’re just, you’re saying this is like an edge. The naked futures contracts are edge cases, what you’re saying? Yeah, I think they are.

And then is there a way we could test this? Is there a way we could verify? I wish. I mean, AI is not going to help you because they just spit back what exists on the Internet, which is all about the Oracle of Delphi. You’re consulting the gods themselves when you ask AI? Yeah. Okay, so we’re sort of speculating here, right? So what you were saying before, I’m just trying to like. All right, so let me zoom in on it a little bit. And, and then, and then you respond to this. So let’s say I’m a boy.

I’m a. Is J.P. morgan a bullion bank? I believe it is. Right? Yes. I’m J.P. morgan. I. I’m a J.P. morgan metals trader with a, with a great deal of swag over the company. Like I can really push. So I’m Let’. Make. Let’s make a thousand contracts for gold or something. A market moving number of contracts for gold, couple thousand maybe. So the supply and. But I don’t actually have the gold. So I’m just like, I’m just gonna. This is just gonna be a market game. So what I do is I make. Make all these futures contracts that shifts the supply out and that drops the, drops the price down because the market is saying, oh wow, there’s a lot more gold out here than we thought there was.

Right? Okay, just, just stop there for a second. So when, when they’re selling those contracts, right, for every seller there’s a buyer. So let’s say JP Morgan is selling gold at 5,000 an ounce. 5,000 an ounce. Right. They sell that contract. Let’s say they sell that contract for 5,000 an ounce. And now they have to deliver that or they, or close it out. So. Okay, not yet we’re not. I’m going to. Then, then, then they sell another one and another one, another one. And then. But as they’re selling it, before they get a buyer, the price, they have to find a price where there’s going to be a buyer.

So, so it’s not like they sell a thousand contracts at $5,000 and then all of a sudden the price moves. They’re profitable on all those contracts that they sold. And then it doesn’t work that way. Let’s say they sell, they sell one at 5,000 it goes. And then they’re trying to sell a second one and then they only find a buyer at 49.95. And then they sell a third one. They only find one at 4,990. So they have one. They sold at 5,000. One. They sold at 49.95 when they sold at 49.90. And then in order to win on those contracts, it has to keep going down below what they, what they sold what they sold for the last one.

See what I’m saying? So you’re saying at the. You’re saying it’s because, because they’re selling so many contracts, it’s moving the actual price. It’s like the price of the, the market is changing as well. Like yeah, there’s, there’s, there’s no, there’s no delay. It’s the actual offering of the contract in the market that is going to have to find a Buyer at a certain price and that’s what’s going to move the price. So they’re risking a lot of money. It’s not like they can sell 1,000 at $5,000 and then, oh well, there’s going to be like a six day delay until the price falls because of those thousand contracts that we just sold.

I don’t, I don’t think it works that way. So I’m not sure, I’m not sure if this ruins my plan or not or my explanation. Let me continue as if you didn’t say all that stuff. Okay, you can interrupt me. So I think they’re selling, like I said, I think they’re selling the contracts and that shifts the supply out, driving the, driving the price down. Now maybe, maybe that, you know, like you said, maybe they’re not selling them all at the same price and then it like goes, goes down like this. Maybe they’re riding it down and they’re having to sell more contracts.

And you know that those final contracts at the end are very much, you know, marginal profit makers because what they’re doing at the same time is shorting. So as they, as they increase these, these, as they issue these contracts, they start shorting them as well. Now, now they’re making if. Now someone, you know, someone has to take the other side of that short as well. For every short there’s a long. Just like, just like for every buyer of the contract there’s a seller. I’m assuming the market is, you know, there to meet those needs. What would happen is that people will stand, you know, the, the, the, the short is profitable, right? So they use, let’s, let’s say the price goes down and state the market is intimidated, successfully intimidated.

The price of silver goes down for a bit and you collect the profits on the short and you use that to pay off the futures contract and then spread the difference. That sounds convenient, but it sounds too simple to work. All you would need is a whole bunch of capital. And there’s a lot of billionaires that have a bunch of capital. That’s all you have to do to have a guaranteed profit every time or until the system collapses. I just, yeah, until the system, yeah, but I, I don’t, I don’t think that’s possible. And I don’t even think that’s what’s happening here.

So here’s my. Well, look, I don’t have enough evidence to prove what I’m saying is right or to prove what you’re saying is wrong. I’m just trying to Think of what makes more sense. But what here’s. Well, here I think there’s something we might be able to test later. Let me. Let me go in the other. So let me continue on. But you may have noticed the price of silver has been going up as of late. So the question is, are the. Did the short get. Get a lot of people? Were the people shorting? Did they get caught with their pants down? I’m desperate, Mr.

Valiance. Can’t you see how much I need you dabbling in watercolors, Eddie? And so what would. What would happen if you lost this bet? Let’s say. Let’s say you did. You issued a thousand contracts for gold and then you shorted it, and then the price went up anyway. Well, now issuing the contracts is the shorting. No, the futures contract is not a short. If you sell a futures contract, you’re selling it short. Is that so? Yeah. I thought a short was a separate. You could. You could make a separate bet that the price is going to go down.

Yeah, but that’s just leveraging the bet that you already made. Okay, so you can do a leverage. Maybe I’m thinking of a leverage short. Rather, what I was trying to describe was a leverage short then. But even just selling the futures contract. All right, so let’s say you issues the futures contract, but for whatever reason, the price goes up anyway, right? The market overwhelms your attempt to manipulate it. Now you’re on the hook, right? Because now you have to cover the short at higher prices and show up with the actual gold. So what does a bullion bank do in that situation? Since it can issue all these naked shorts, it’ll just double down and keep issuing more shorts.

So what I would expect to see is an exponential growth in the futures market. If. If my theory is correct. If my theory is correct, I would expect to see exponential growth than the number of futures contracts. Because they get it wrong a lot too. They get it wrong. Maybe even more than they get it right. There is an exponential growth in the future. In the future. There is not. No, not that I can say. Oh, then. Then maybe I’m wrong. Okay. No, the. So the. This. The selling short of the contracts, if it’s not covered, that is selling short.

It’s literally selling the contract short because that. You have to deliver it now. Right? That’s the. That. That’s the short selling. Okay, okay, so the. If you could leverage that too. But fine. So I mean, even JP Morgan has a brokerage that. And they. They’re subject to Margin calls too. It’s all just a ring of. Of margin. Right. So here’s what I think. What I think is happening. Okay, that looks. That looks a little exponential. Is it the middle one, the open interest in the volume? No, at most, it’s like arithmetic. Right? It’s. This is. This is volume.

This is volume. The middle is open interest. Okay. Open. Open interest has been pretty steady since 2005. Right. For about 20 years. It hasn’t really gone on net anywhere. Well, let’s look at. But look at the price from that same period. I mean, except for recently. So maybe. Maybe it’s like a. Maybe it’s about to slingshot higher. I don’t know. Okay, so we have that. And that looks a little exp. It looks a little bit. Little exponential. No, no, no. It. Exponential would be a lot crazier. Like in the. In the nineteen. In the late 1970s, early 1980s, the first major gold bull market.

We have open interest here of about, let’s say, 200,000 when things get really picked up. And this is when price is rising here in the 70s and just going up. Right. And then we have. Open interest is steady. Open interest is steady. Where if your theory is correct and open interest being steady would mean that the price goes up, but open interest is pretty steady here from 1980 to 2003. Right. And the price pretty much goes very little, doesn’t move much. That would only be correct in a cetera’s paribus. Right. And there’s. There could be other market forces that were suppressing the price as well.

So I, you know, I don’t necessarily say that it must go up, but not shorting it would. Or not issuing futures contracts would. Would have a. Would have a positive effect, but it might be overwhelmed by extraneous negative effects. Yeah, I just think they’re using the contracts and backing them with physical in London or wherever they’re getting it from, just profiting off. That’s what I think is happening. And there was one other chart I wanted to show you. Here is it. I was in Silver. Okay. Yeah. So I’m gonna go to Silver. So let me. Well, actually, we can wait till after the grab.

I was just gonna ask what you think game. What games you think are being played? Because you said you think there are some games being played. Yeah, I think they’re minor, like spoofing. Spoofing. What the banks do when they put in orders that they intentionally do not fill. Like they. Why is. Why is gold not like $50,000 an ounce, right? Now like what’s keep something’s keeping the price of gold down from where we think it is going to be the fact that every, the fact that everyone is tied to the dollar and they can’t escape it until it goes to zero.

Okay. So it’s just, it’s just the credit system. Okay. Okay. So here you see the interaction between, let’s put it on a 20 year chart between silver open interest in the price. Right. So this could, this kind of could be interpreted in terms of your theory. Right? Open interest in the green goes up in silver and the price goes down. Right. From, from 2011 right until 2020, this bottom over here and you have price going down from 50 to about 11 and open interest over that time trending higher and higher from about 100,000 to 250,000. Okay, so that would anecdotally fit with what you’re saying.

And then from here at the top of 250,000 right before the lockdowns, open interest starts trending down. Now we’re at 100 and 100,000. Right. We just broke 100,000. Today we’re at 99,000. And the price goes up as open interest goes down. So you could say fine, that, that anecdotally fits on both directions. However, you have this, this here from 2008 to 2011 where open interest is going up from 85,000 to 160,000 and the price is going up from about $8 to $50. So that doesn’t fit. You could say, well that’s in spite. Maybe it’s in spite.

But here, here’s, here’s my theory and why I think it fits with all this. So I think there’s a certain amount of silver in London. It goes up and down, right? It doesn’t just stay there. So the more silver that exists that the more futures contracts can be sold against it according to their regulations or whatever they have to do. If the bullion banks have to cover because they’re spread traders, they’re not speculators. If they have to cover every silver short contract that they sell with physical silver in London, then the more silver that exists in London, the more they can sell short and open interest would go up.

And now if the supply of silver in London is really going down and there really is a problem with the supply which we’re, we’re, I hear rumors of that. I can’t really substantiate on this. I don’t, I don’t, I haven’t opened up the vaults. I don’t know what the hell is there? But if the supply is going down and they can’t sell as many contracts short, then they, they can’t sell them short. They have to wait for the price to rise to be able to sell it short, because that, the, the price rising would entice more silver into London and then they’d be able to sell short at a higher price.

But if the silver isn’t there, then they can’t sell short and therefore the price would rise. Okay, I think. All right. I think I. Like I said, I’m not, I’m not entirely wedded to the idea that. And it’s not, it’s not required that this scam exists to, to have us enslaved into this debt system for so long. Yeah. So. Yeah. I’m sorry. Yeah. Oh, I mean, I can I. Your argument’s pretty persuasive. Maybe there isn’t any games going on under the scenes, but maybe there is. I don’t know. I think there are. I think there are minor games, but I don’t think there’s like a major.

I don’t think there’s a whole bunch of naked shorts and that. That bullion banks just dump paper on the market to save the monetary system or something like that, or that they have the power to do that, or even if you’re going to take a less maximalist view. But what I think is important is not to get stuck in the mentality. And a lot of the more conspiratorial gold and silver bugs get stuck in this mentality that the bullion banks control everything. It black pills people. The bullion banks control everything and they can, they can just dump whenever they want.

And, and you know, the gold and silver bugs will never win and the dollar will keep ripping us off forever because the bullion banks are just so powerful and they can put gold and silver prices wherever, wherever they feel like. That’s. I think that’s a very damaging mentality and it will, it’ll just drain you. And I don’t have that mentality at all. Yeah. If, if they were, they will. At some point, if my theory is correct, they will. At some point either, either the, the, the markets will fail. Like, you know, people will say, someone will say we need the silver that can actually open the vaults and can’t be turned away.

And it turns out there’s, you know, the empty. In that case, the market collapses. Or the vaults. The market never fails, but people just walk away from it. The physical premiums would just skyrocket to infinity. So you Know, the spot price might be 4,000, $5,000, but you know, to actually put metal in your hand is 20, $30,000, you know, so, you know, either way, they’re power. I think that’s going to happen. That’s, that’s probably going to, I mean, look what’s, what’s happening in oil. Once the, once Hormuz was blocked, you have the spot price of Brent being like $30 or $40 more expensive than the future.

But doesn’t that show a paper, Isn’t that evidence of a paper game? I don’t think it’s evidence of a game. I think it’s evidence of somebody. Try like a trader again, the owner of a tanker was trying to pocket the spread between what he would spend on the oil and Hormuz and what he would sell it for in Argentina or whoever he’s shipping it to. And then he can’t ship the oil, so he has to close out. So he has to close out the oil that he can no longer ship out of Hormuz and sell it, but he can’t sell it for a profit because nobody wants it because he can’t get it out of Hormuz.

And therefore then he’s got to buy back the contract in Argentina that he sold for really, really high because they need oil there and they don’t have it. So you have this wild price differential that just warps itself once the, the oil can’t leave Hormuz. And then you have this crazy backwardation and that because, because Argentina is like begging for oil right now because this guy can’t sell it to them. And so the price of their contract goes way, way up. And then you have this, this, this pocket, this big space between spot and futures. And.

Okay, so it’s not necessarily a game. It’s just, it’s just the existing contracts are not able to be satisfied. Right, right. So sort of like, like when it had, when, when silver went to 120, it wasn’t like the, the coin shop owners were like, whoa, it’s too expensive. I’m not going to sell. I want to keep my whole stash because the dollars, it’s not, it’s not that. It’s that they can’t hedge because the price is going so wild that they can’t figure out what they’re supposed to sell this for and everything shuts down. It’s, it’s just the way that, the way the system works is that it will shut down when things start going haywire.

And that’s what’s going to happen with gold and silver, and it could resemble, you know, a default that you can’t deliver. But I don’t think it’s because nothing was covered unless the, the contract, the, the silver in London really is being claimed by four or five, six people each bar, which, if you could show me evidence of that, I’d say, fine, you’re right. But I haven’t seen it. It’s above your NMI pay grade. I mean, we fundamentally, we completely agree. And I don’t even think it affects the time. It doesn’t really affect my timeline or any of this is just a.

This is an intellectual curiosity of people who are just waiting for the. Waiting for the end game to freaking hit. Yeah, yeah. So I just, I just say the most important thing is don’t get caught in the mentality that the bullying banks are all powerful. They’re not. They’re not. They’re not. They’re not. Do you want to go to the second topic? The. The why the boomers. Boomers. Why the boomers are so rich and why their wealth is fake and why they’re going to lose everything, but it doesn’t really even matter because most of them are, like, in their 80s anyway.

Yeah, well, it doesn’t. I mean, I’m trying to. I have boomer family members that are just. They, you know, pat me on the head. No, you’re a nut, Phil. You don’t know what you’re talking about. I’m gonna go. I’m gonna go swim in my third pool, like. So one side. The. The monetary system is a Ponzi. It is a Ponzi scheme. And one side effect of a Ponzi is the early adopters of the Ponzi get paid with the wealth of later adopters. So the boomer and before them, the silent generation, the ones who grew up post Depression, Post World War II, they got to experience all the benefits of the inflation.

And now that the system is really starting to crack, millennials and Gen Z are the ones who are like, wait a second, where’s all the wealth we were promised here? Right? So the. In the way this looks like in the real world, right? So when the inflationary system started, it went into. Especially after. In the 1970s, we’ll start in the set. We’ll start after the Gold Window closed. One thing you could do in 1971, 72, 73, you could buy Apple stock, right? I mean, right on the ground floor, right when Wozniak and Jobs were, you know, just leaving their garage, you you could buy Apple stock.

There was one critical thing, though. You had to be alive in 1971. In fact, you had to be old enough and have some money enough to actually buy Apple stock in 1971, right? Or, you know, in the 1990s, you could have bought Amazon stock, right? These in these stocks inflated to, you know, enormous, enormous sizes. So if you were an early adopter of buying into these things, you got extraordinarily well. Even if you just bought a few shares, right? Even if you just bought a few shares, you could probably get a house off of what you, off of what you invested in the early 1970s.

Now, I mean, imagine, you know, imagine people like you and me in the 1970s. We’re like, Guys, this is a Ponzi. I’m not participating in this. I’m just going to sit on my silver, right? I mean, imagine if you sat on your silver from 1970 to 2000. You would look like the biggest fricking idiot in the world. Everyone. You’d be the laughing and you’d be broke, right? You’d be laughing stock, right? It took, you know, an enormous amount of time for that, for that trend to be reversing. So all the boomers, you know, what did they see? What did they empirically see? They saw gold and silver, the bed.

And they saw, you know, we don’t need that anymore. You know, Apple stocks and, you know, tech stocks and, you know, that kind of stuff is what you really want to be in. And so trying to reverse that mentality for people who are in their 70s and 80s is exceedingly difficult. The problem is all it does at the end of the day, when Ponzi’s blow up, it doesn’t matter how early you were in adopting the Ponzi, your wealth is still revealed to be false. In fact, you know, a Gen Z who adopted the Ponzi, he only had, you know, a couple years of his life, a couple years of his wealth ruined.

But a boomer who had his entire life’s wealth in, wrapped up in that Ponzi loses everything, right? Lost, lost the accumulator. Now, now they’re completely broke at 80 years old. And all that wealth, all that, all that perceived wealth is going to transfer over to the gold holders. Well, is there any wealth destruction, though? That’s, that’s the question. Well, the wealth destruction already happened because of the misallocation of resources. So like, you know, the example I was, you know, I’m talking about like a brewery or something in my examples that I was talking about. Donegan. I’m like, well, the brewery should have been a textile.

You know, we don’t know. We never know what the, what the next best alternative will be. We only know what exists. But we could theoretically say, okay, you know, on an honest gold standard, we’d probably be making our own clothes in America. You know, we wouldn’t be importing clothes from Bangladesh and Indonesia. Maybe we would, but, you know, maybe we make him locally. Oh, so wait, so here, so here’s the, here’s the thing. Then maybe it’s not, it’s not wealth destruction. It’s just like capital being so warped. Like, okay, now we have these mega farms and these mega clothes.

They, they turn gasoline into shine clothes and all these like huge garbage producing crap. So the gold holders will be the inheritors of all these massive pieces of capital that shoot out a bunch of garbage. And then we’re gonna have to go into these big capital places and say, what the hell are we gonna do with this crap? Yeah. And so it’s like, it’s, it’s more like not wealth destruction, but capital. Capital warping to such gigantic proportions that will be totally unusable that the gold. But we discuss this a lot. It’s just, I don’t like to think about it this way because it’s very daunting task to have to take over huge portions of capital that I have no idea what the hell I’m supposed to do with them.

And should I just like, you know, bomb them and then use them for raw materials and then turn them into a mine or cut them into little pieces? But you need real capitalists to figure the answers out to this question. We’ll be inheriting the enormous pieces of capital that the boomers spent all their time consolidating and concentrating to create these mega industries that nobody will be able to finance anymore. Yeah. Have you, do you have any boomer family you have trouble convincing? I don’t really talk to my boomer family that much about this stuff because they think I’m totally nuts.

Yeah, well, okay, so they think you’re nuts and they don’t. I kind of lost touch with them in during COVID Like I can’t, I can’t talk to them. I don’t take them seriously anymore. They’re like, like a bunch of weird cartoons to me. I know. I talked, I talked to my parents. But yeah, you know, they’re, they, they, they understand me at least enough to take me seriously. Yeah, yeah. I’ve had some luck with some of my. I mean, not much luck. But I’ve had some luck with some of my. Some of my boomer relatives where I’m like, you really need to stack something, even if you think I’m insane.

Because they remember, like, they remember silver currency. This is what blows my mind. I’m like, you saw silver currency in daily use, and you’re still like, oh, it’s fine. We don’t need a silver money. Like, whatever. What were they thinking when they took the silver out? Why would they not like, this is. This is ancient Rome collapsed currency debasement. Just because the debt. It’s just because the debt kept it going. Yeah, because they. They see that society is getting richer. I mean, 1960s was a huge growth time in terms of what you could see, like buildings and technology and air conditioning and this kind of stuff.

I mean, who needs that when your life is getting physically a lot more comfortable? And so in your. So your quarter looks a little bit, you know, crappier from 1964 to 1965, but, like, who really cares? Yeah, it still blows my mind. And there were people sounding the alarm bell. I mean, Rothbard was alive at this time. There were people absolutely sending the alarm bells. Yeah. He came out with man economy and say 1962. That was like the prime of his career. And then, of course, you know, you know, like, Milton Freeman was like, you know, the.

The counter. He’s like, you don’t need. We don’t need that. We just need discipline, brutal discipline at the central banks. We’ll be fine. Yeah, maybe he was like, he. Maybe Milton Friedman was like the, the ultra. What do you call the. The super villain. Yeah, I think so. I think I. It’s funny because, you know, he gets a lot of props in libertarian circles because he said all that’s what makes him a super villain. Yeah. Oh, wait. Yeah. So anyway, no, go ahead. No way. Sorry. Just my final point was that the boomer’s wealth is illusory.

And, you know, I. It. It’s going to. To. There’s gonna be a lot of window jumpers if they can get their walkers over the window. But, you know, it’s. It’s. It’s just gonna be so okay. You know, they’re all living in, like, these like, gated communities, you know, that are not gonna have a lot of mark. You know, there’ll be like this, you know, 55 plus communities with the golf course right in the middle of it. I’m like, that’s gonna be turned into agriculture. You guys are gonna be farming in that golf Course, in a couple of years, Right.

There’s this place in northern Florida where it’s like camp for retirees where they just have activities for you all the time. And it’s like summer camp for, like, 80 year olds. Like healthy 80 year olds that can do activities. Yeah. And like, a lot of them are childless. And it’s like the saddest thing I just heard this story from. Oh, by the way, I just wanted to say before that I had this. I had this idea in my head that you said that from 1971 to 2000, Silver defecated the bed. So if I just wanted to say if you were in bed with silver and it defecated the bed and you got impaled with a.

A feces covered silver nail, you should get a tetanus shot. You don’t need it because silver’s antimicrobial. I don’t think it’s that antimicrobial that it would magically kill all of the tetanus bacteria. Depending on the layer, it’s pretty good. It’s pretty good. It’s. It would depend on how. How deep the. The feces was. Well, here’s a question, then. Layer it could probably do it. If, If. If silver is silver, then why does an overdose of colloidal silver give you Argyria, which turns you blue? Hey, what smells like blue? I feel like that would be. It’s the silver in your skin is not reflecting the light correctly.

I think it’s the layer of skin itself is, like, interfering with that. You’ve looked this up? Yes. Well, I looked. I looked up what, that. I saw your Twitter post, and I looked it up and I was like, oh, wow, that guy looks weird. But, yeah, apparently if you ingest a bunch of silver powder, well, you turn it like smurf blue. Like a little darker than a smurf. That’s weird. It’s. It’s. Yeah, it’s very strange. All right. Any other. Any other topics? I think we covered it. I would just. If there’s any boomers watching. Put your wealth into gold and silver, you’ll lose everything else.

You ain’t gonna be doing summer camps. I promise. We’re gonna be. We’re gonna be farming and, like, backyard farming. Yeah. And if. If you’re on the. If you’re on Team Gold and Silver, be prepared to buy up enormous pieces of capital and slice them up. I have no idea what to do with them. Yeah. What am I gonna do with a golf course in the apocalypse? All right. Anything else, Rafi? Or is that good for this week? This month? I should say that’s good for this month. I mean, tomorrow’s May. Do you want to do the next? Yeah.

I don’t know. We’ll see. I. I’m hesitant to even come out of the bunker now. It’s so. It’s so close. I hope so, because if not, you look like an idiot. And so will I. It’s all right. I look like an idiot already. Okay, Take it easy, man. Bye.
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