Again, silver is 4861, up 65. Copper is 497, up 3. WTI is up 30 at 60, 17. Natural gas is up another 9 cents. That’s over 2%, for those of you counting, at 389. Bitcoin, still getting hit. Data grand at 102 and change. Ethereum, 3358, down 65. Platinum, palladium, softer today. Palladium down 16, 1405. Platinum, 1562. Down 3. Gold, silver, softer again, as you can extrapolate. And grains are all down with wheat leading the crowd lower. Okay. We’re going to talk about AI today, a little bit. We’re going to talk about gold, of course, but we’re going to talk about AI, too.

So here’s the front page. We haven’t sent any story out this morning because we will be talking about AI. We’re also going to talk about, very briefly, I want to just give an observation on an update on the supply chain moving from west to east, from the US and Europe to China and the BRICS for gold and silver. And we’ll take a look at that as well. We’ll look at some charts as well because I think today’s rally is more significant for me than yesterday’s rally in establishing that gold is at a new higher trading range.

Let’s start with the AI stuff, though, because I think it’s going to be significant if it’s not already for our purposes. So yesterday, Deutsche Bank was announced by the FT that they’re reportedly hedging their growing exposure to the AI data center boom after exhausting, I’m sorry, extending billions in loans to the sector, according to the Financial Times. The bank has finance firms servicing major hyperscalers like Amazon, Microsoft, and Google, whose spending on AI infrastructure has exploded. Now, we’ve talked about this bubble stuff here, right? They’re spending on commercial real estate. It’s the new bubble. They’re spending on data centers, Make America Great Again.

This is the way they’ve chosen to do it. This is where they’re placing their bets. Now, internally, executives at Deutsche Bank are weighing strategies such as shorting AI related stocks or using synthetic risk transfer derivatives to limit losses if the market turns. The concern is that AI infrastructure spending could become a modern bubble driven by debt, hype, and rapid depreciation of assets leaving lenders like Deutsche Bank vulnerable to a sudden slowdown in CapEx. Rapid depreciation of assets leaving lenders, they give you an asset for collateral, and it just goes down to price. So that’s basically what they’re saying.

The reason, I mean, it’s interesting, right? I mean, it’s our economy, and everyone has exposure to it, whether we know it or not. But Zero Hedge covered it, and that’s a premium post by them. And they smartly pointed out that Deutsche Bank was one of the more important banks in identifying the big short bubble. So the character played by Ryan Gosling, that was a Deutsche Bank employee who actually was a bank sales trader. So they were creating credit default swaps for their clients during that time. So you’re looking at a situation that, like the title, could be a big short 2.0.

And if announcing it, I think, well, anyway, forget my opinion, but announcing doesn’t seem very smart, but there you have it. And this is now you’re going to see a lot more talk about this. And what we noticed is that here’s one of the firms that we like, Dario Perkins at TS Lombard. He argues that artificial intelligence shows all the hallmarks of a classic speculative bubble, like railways, dot coms, and housing before it. A.I. has produced massive capital flows, exaggerated expectations, and circular financing. That chart, that’s going around of the circle, jerk, is what they’re calling it.

The firm identifies seven warning signs. Monetary tightening. Let me see if I have that slide. Do I have that warning sign slide? No, I don’t. Monetary tightening, earnings disappointment, insider selling, vendor financing. That’s a dot com thing. Retail frenzy, fraud, and falling trading volumes. Perkins concludes that the bubble is likely advanced, but not yet bursting. A sharp correction within the next year would hurt equities, but probably stop short of triggering a financial crisis. Unless today’s largely unleveraged cap expo evolves into a leveraged credit board. So everybody’s throwing money at CapEx to jump on the building boom, right? It’s like, you know, data centers to nowhere if it doesn’t work out.

And at some point, it’ll start attracting people that bought. We talked about this yesterday, or we talked about the fact that people, companies will say, well, I need to get the CapEx deduction. I’m going to change the name of my company from Philly Cheesesteaks to phillycheesesteaks.ai. And when we build our new cheesesteak place, it’ll be, we’ll call it an A.I. data center. And then you get CapEx and all that stuff. People start caving the system. And they’re saying that people aren’t caving the system yet, but people are aware of it. Bubbles, they say, are a history or a function of capitalism.

If you have capitalism, you have bubbles. And that’s something that you’ll see left-leaning pundits say. And there’s some truth to that. But bubbles are a function of federal reserves, too. Bubbles are a function of government policy that encourages money to go to a certain place as an off-ramp, or we want people to invest in the United States. So we’re going to give them, find out what works, and encourage them to do it. Anyway, yeah, there’s the, when will the A.I. bubble burst? That’s their analysis. We’ll be putting that, putting something together on that, something more formal, and sending it out later on today.

The other thing we want to point out about gold is we’re waking up every morning with a new news item. You know, we have an item we want to talk about, and then there’s another item. And so we started looking through the stories, and we just threw a couple together. On the fifth, breaking, Cambodia chooses China to hold gold. That’s a breaking news story, you know? On the third, China tightens its grip on silver. And on the second, LBMA silver-squeezed now China’s problem. Now, what do they all have in common besides gold? Well, they have China in common, right? If you go a step further as a news reader, as someone who reads research, they’re all new stories when I wake up at five in the morning, right? And that’s the news cycle for gold starts in Asia now.

Now, why is that significant? Well, it’s significant because you used to read about stories in the U.S. looking for a kernel of something good in bed, in couched in some bad stuff. And then it would go to Asia, and there’d be news, and you wouldn’t hear about it. There would be events, or there’d be pricing. I would put to you that this is another sign of the loss of control of pricing gold globally. And here’s what I mean. You’ve heard me say this before, so I’ll say it. I’ll say it one more time. The demand went east.

And when the demand went east, it started pulling supply east. And when the supply went east, they built vaults to hold the supply. And the businesses moved east with the salesmen and the bankers to facilitate trade in the area because that’s where the growing wealth was. And then the pricing starts to move east. But the pricing is the last thing that totally moves east. But there’s one that I missed, and it’s the news cycle. The news cycle starts in Asia now, and we read about it the next morning. That’s why I have so many recently, so many breaking stories.

And you can see this going back about a year. I started to see the Bloomberg stories. They were written by Chinese, by Singapore, people out of Singapore, people out of China. I said, wait a minute. So the news is originating over in Asia now, and that’s really not good if you’re trying to have a control of the narrative. I would put to you that you won’t read a headline of what I’m about to say ever, at least in the west, until it’s too late. Gold pricing is at least equally controlled by the demand at the east now.

And the west’s ability to manage price, whether up or down, I don’t care, is greatly diminished. And now that the trade – here’s another point for you. Let’s pull the chart up for this part. Now that the trade deal is over, or what it was is really just kicking the can down the road, the overnight cycle has gone from – it started with China buying, Europe doing nothing, U.S. buying. That was U.S. retail buying, right? China buying, Europe doing nothing, U.S. buying. Then as we approached the actual event, China stopped buying, almost like they were being nice.

Europe started selling, and the U.S. bought a little bit, and then they started selling. We got down here. And now, post the event, you’ve got China’s buying again, premiums are rising in China, Silver’s being depleted from their vaults, China’s just back to business. We’re just going to keep buying it because we want it. And the U.S. is using more and more rhetoric to steer money away from precious metals, like Bitcoin’s great for the dollar, stablecoins. These are all valid things, but the more rhetoric I hear coming out of U.S. officials, the less confident I am in their ability to keep a lid on pricing.

And so, we’re going to probably start seeing, if I’m right, more China buying, nothing crazy, right? Europe selling at specific moments so they can get their shorts back, and then the U.S. will do what the U.S. does, either they’ll buy because the dollar’s weaker or they won’t buy because the dollar’s stronger. Just saying, you know, another mile marker, sidepost, whatever the expression is these days. Next, moving to the chart. Yesterday, I had said in the morning, I said, we have one, two, three, four moments where we have a potentially new forming ledge. And I went to sleep thinking, this ledge is good if we don’t go down and test it tomorrow, meaning I don’t want us to reverse again because that would just be horrible, right? What I’d like to do is I said to myself, self, for this to be alleged, I want this to trade the range.

I want it to go up. I want someone to have sold it here and get stopped that higher. And lo and behold, we’re 30 higher today and I’m really ecstatic. So I will declare, knock on wood, this is a new ledge, right? This is a new ledge. But let’s say we can’t penetrate it, but this is a new ledge. This is a new range and I’ll throw some lines up here for you. Do I still have those lines? What happened to them? There they are. So I have new lines down, these yellow lines down at the bottom.

They were from the last ledge. Here’s our here’s our ledge. I would be happy as long as it, if it broke it, as long as it stayed above here, I expect it to be sold at least once over here. And this is where I think the BIS echo is. Now I’m making a big thing out of this because it’s very early, but it’s very similar. To when this started. Oh, sorry about your eyes there. This started now may not look exactly the same to you, but I had a conversation with Robert, CEO technician, then he’ll be airing that I think today or tomorrow.

And he, we were talking about similarities between this and that. And he pointed out one that I did not see. He said the 40 day moving average. I think you’re looking at the 30 and 50 day. That’s what I have. The 40 day moving average touched in here, right? You can see the 50 days touching there. And according to him, the 40 day touched in here as well. So you can see what’s happening. You have a spike, a cap, a trading area, right? You have something that gets, that gives you a reference point. Maybe it’s a 40, right? Robert’s number.

He has a, by the way, he has a gold finger sub stack website. I’m a subscriber. We’re mutuals on that stuff. But anyway, the line. We could be in a new trading range folks. And those are my lines for now. We’ll say I get bullish above here and I get ridiculously bullish above here. Right now, by the way, I have a butterfly and knock on what it’s working. Catch you later. Well, thank you Vince. And as always for this morning’s show and giving us all posted on the swath of things that are happening in the precious metals markets.

And hopefully you found that helpful at home and I’ll thank you as well for being here. She’ll appreciate you spending part of your day at the Arcadia economics YouTube channel, learning about gold and silver. And just before we wrap up, I did want to mention one of the companies that helps make this possible each morning, which is Dolly Varden Silver. Obviously, a company that has great exposure to silver has done quite well throughout this rally. And as they mentioned, just about two weeks ago, they have completed their 56,131 meter drill program, which covered 84 drill holes in their 2025 Kitsil Valley exploration program.

Sean Kuntun, who you’ve seen on the show several times and who is doing a call with David Morgan that we’ll have for you next week. He’s been really happy with it, as you can see his commentary here. Although I’d like to play a clip just of what he said after they got their best set of drill results in the history of the company as part of this program. In one of the largest drill programs the project has ever seen in a single season. It’s a 55,000 meter drill program. And we’ve put out arguably the greatest result the property has ever seen from a grams and meters basis.

So we hit, you know, 1400 grams of silver over 21 meters at the Wolf Fane. And so we have identified a lot of silver, we’re finding a lot of silver, and we’re finding it at grades that I would say are second to almost none. And we’re doing all this in a safe jurisdiction where you have certainty with the locals, whether they’re First Nations indigenous locals or they’re the local communities they want us there. They’ve been experiencing mining operations for 100 years. So we’ve got a high grade project, we’ve got a large project, it’s in a safe jurisdiction.

So thank you to Sean, thank you to Dolly Varden, and thank you for watching at home. Do hope your day is off to a great start and we will look forward to seeing you back here tomorrow. [tr:trw].

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