Gold Silver to Remain Legal in Israel For Now – This Week in Metals

➡ The video discusses the recent attempt in Israel to phase out the 200 Shekel bill and potentially ban gold and silver ownership, which has since been halted. It also covers the current state of the gold and silver markets, including a failed attempt to lower gold prices and the potential for a similar situation to the gold price crash in March 2020. The video also mentions significant short covering in palladium and the current state of the platinum silver ratio. Lastly, it discusses the potential consequences of phasing out the 200 Shekel bill, including a weakened Shekel and strengthened dollar.
➡ The article discusses the current state of the gold and silver markets, highlighting a record high in short positions and a potential risk of a sudden drop in gold prices. It also points out a long-term bullish signal for gold versus stocks, suggesting that if gold outperforms stocks, people may shift their investments from stocks to gold. The article also mentions significant short covering in palladium and the potential for platinum group metals to initially outperform gold and silver. Lastly, it suggests that rhodium has likely hit its lowest point and may rebound soon.

And if, along with the cancellation of the $200,000 bill was the possibility of outlawing gold and silver, if the $200,000 bill will remain, then so will gold and silver. We are safe for now. I don’t know how long that now is, but right now there are other things to worry about, so let’s keep going! Hey guys, Raf here from The Endgame Investor and this week we’re gonna do the rundown of the gold and silver markets, a weekly review you could say on my channel here at my channel, which is my name. Say my name.

What’s my name? Say my name! Eisenberg. So we’re gonna begin this week with what is going on with the cashless attempt in Israel. Netanyahu wanted to phase out the $200 bill. Accompanied with that is a possible ban on gold and silver ownership in Israel. It looks like that is unraveling already. Thank God we’ll get into the articles and the rescue by the Bank of Israel of all institutions. Second of all, it looks like we have 14% to go on the repose to reserves ratio to get to the next repocalypse. We have another failed attempt at a gold price smash yesterday.

I’ll show you that in the open interest figures versus the sell-off. We have also a dangerous situation now in gold because the bullion bakes are at new record high short positions and the managed money is near the amount of long positions it had right before the gold smash of March 2020 with the lockdowns and it freaked out all the gold bugs. Not saying that’s going to necessarily repeat right now, but we are in a situation where it could and you have to be emotionally prepared for such an event. If it does happen, it won’t last long.

It’ll last a week or two, maybe even shorter than that, but it will be scary. And we have on the gold to S&P 500 ratio, the first weekly golden cross since 2001 when the last gold bull market began, excluding the 2020 jump caused by the lockdowns. I’m talking about more natural movements or as natural as they can get in a Fiat system just happened this week. And I’ll show you the close up. We have interestingly huge short covering in palladium. 46% of palladium shorts held by speculators have been covered last week.

An open interest has been cut in half as those shorts have been covered. And last but not least, we’re going to take a look at the crystal meth of precious metals, which is rhodium. I do not recommend ever buying any rhodium unless you just want it for completion’s sake to have all of the platinum group metals for some reason. But rhodium looks like where is at a firm bottom and where rhodium goes, the rest of the platinum group metals will go, which includes palladium and platinum. The platinum silver ratio is still at near all time record lows.

You can get a lot of platinum for a little bit of silver. I think the ratio is now about 30 to one. So with that, let’s get into the slides for this week’s silver report. But we’re going to begin with an article from Israel’s biggest newspaper, Ynet, and then I’ll read it in Hebrew because I can’t actually find it in English and I’ll translate as I read. So first of all, we have this article from September 20th. This one is in English. Next one will be in Hebrew. Kill Bill was a good movie.

I am going to kill Bill. Netanyahu pushing for quick phase out of 200 Shekel bank. No, because there’s nothing else. He’s got nothing better to do than worry about phasing out cash and putting us in a financial prison as we are in a major war with Lebanon. Yeah, let’s just spring this on the people and mess up the economy. Here is the subtitle as part fight against black market money officials considering eliminating highest domination of zero currency soon and gradually phasing out cash entirely plan includes voluntary disclosure campaign and lowering transaction approval threshold.

So Prime Minister Benjamin Netanyahu instructed top officials on Thursday to urgently discuss the immediate discontinuation of 200 Shekel bank note, the highest denomination of Israeli currency. The meeting is set to include finance minister Bitzalo Smotrich, who is one of the worst politicians in Israel. He was behind the Draconian lockdown plans. He wanted to lock every dissident in the medical arena, the medical era. And you know what I’m referring to? He wanted to lock them all in their houses permanently until they submitted to medical authorities. This guy is evil. Bank of Israel Governor Professor Amir Yaron, Prime Minister’s Office, Director General Yossi Shelley, and all these other idiots.

And here is the people that are recommending this. A team of nine economists proposed a comprehensive plan to blah, blah, blah, blah, blah. I’ve got here a 200 Shekel bill. Soon this thing will be worth about this much in Zimbabwean dollars, 200 Shekels, 100 billion Zimbabwean dollars, whatever. They’re who has stopped this plan. It might surprise you. The Bank of Israel was really not a big fan of this. I can’t tell you really why, but here’s what they said. The date on this is yesterday. Yesterday is September 26th. It says here, Bank of Israel announces finally or definitively that the cancellation of the 200 Shekel bill is not on the docket.

It is not being planned. Week after the Prime Minister advised to further the cancellation of the 200 Shekel note as a way to fight the black market. So here is the key sentence here. It says, that the Israelis started to change their 200 Shekel notes for dollars very quickly. And maybe this is what freaked the Bank of Israel out because if a bunch of Israelis are changing their 200 Shekel notes for, let’s say, $50 bills, which is about $55, that is going to weaken the Shekel and strengthen the dollar. And you don’t want to weak Shekel at a time when you’re at war.

So yeah, there’s going to be a whole bunch of unintended consequences to canceling out the 200 Shekel bill. And they say it’s not on the docket. It is not happening, at least not right now. And if along with the cancellation of the 200 Shekel bill was the possibility of outlawing gold and silver, if the 200 Shekel bill will remain, then so will gold and silver. We are safe for now. I don’t know how long that now is, but right now there are other things to worry about. So let’s keep going. And of course, if you want to hear the full story or a fuller story about the cancellation of the 200 Shekel bill, check out this video over here and it will be in the outro as well.

And so first slide today is a continuation of the repos to reserves ratio. This is primarily what I’m watching to time the next apocalypse. I can see here that their apocalypse is at 83%, 83.5% of repos to reserves. Repos are the cash that is exchanged for treasuries every night between banks and the amount of reserves, the amount of reserves that are available for these transactions. So if 83% of reserves are taken up by repos, then we have a apocalypse. We had it last time, September 18th, 2019. Where are we now? September 25th, 2024, about five years and one week later, we’re back up to 70% of repos to reserves.

We are about 14% away, which is maybe two or three months away exactly. I’ve counted the number of weeks before, but it changes every week because this is a little bit volatile, but the trend is clear. We are headed up. And once we hit about 83%, we should start watching for an imminent or apocalypse or something wrong with the plumbing, which will lead to the final printing round. The next slide here, we have another failed gold price slant delivery, Eve delivery Eve, meaning gold deliveries, uh, start tonight, Friday, September 27th, uh, because the weekend is the 28th and the 29th Monday is the 30th and the delivery start two business days before the next month.

So whatever’s left on the deliveries will be delivered come October. Uh, so to see that we had a smash attempt here, and I’ll show you how we had a high here in gold of 2708 in the morning at around 8 a.m. And then a smash and you see these volume spikes over here. Uh, we went down to about 2680 about two hours later. So about 2728 dollars in two hours or so. And then the price recovered. So how do I know this was a, an attempt at the shorts to suppress the price because the open interest went up again yesterday could see here that it closed at 558,000 contracts, which is 4,000 contracts higher than yesterday.

So more shorts were added as the price went down here, but it failed again. So the short positions are still all underwater, almost all underwater. Uh, we’ll see what happens from here, but they cannot suppress the price even on a, on a delivery Eve date when price usually falls to scare out the long so they don’t take delivery. Um, it’s still a dangerous situation in gold right now. Um, I wouldn’t issue, I wouldn’t initiate speculative positions here. This has no bearing on physical stacking because the premium is balanced it out, of course, but, uh, these two lines over here, first of all, you can see, I think this is the green line, um, that you have an all time.

This is an all time record high in short positions. You can see the number here. It’s hard to see, but it says 257,540 contracts short. These are the swaps, the ones that short sell gold in New York and go long to bounce out in London. And they are the ones that are getting caught here. Uh, and we have here the blue line, which is at 216,255 contracts long by the hedge funds. We were slightly higher than that over here in 2020 in March, 2020. And this, you see this little rectangle here and this, uh, move down in gold.

That was the freak out, which brought the gold miners to all time lows, uh, relative to gold over here. And it scared every gold and silver bug, uh, in the world and gold went down to 1450. So something like that could possibly happen. It will probably happen concurrent with the plumbing clog. Um, but they happen around these numbers in managed money longs. So just be careful here and understand that it could happen and don’t get wiped out. If it does, don’t put yourself in a situation where you could get wiped out.

If something like that happens again, I think it will happen one more time and it will be scary and it will be quick. And after that, I think we’re headed into the end game. Um, so now we’re going to look at the, uh, first golden cross, uh, of gold versus the SMP. This is the gold versus S and P 500 ratio or rather the S and P versus gold ratio. I flipped it around here. So the higher it is, the higher the S and P is relative to gold, the worst gold is performing relative to stocks.

The, uh, the golden cross is when the blue line, the 50 week moving average moves below the 200 week moving average. The last time that happened was at the very end of 2001 at the beginning of the gold bull market that began back then. And you see here, we hit a low here of somewhere below, uh, what is it that half or something or even less than half in September, 2011. And since then the S and P has outperformed. However, it looks like we have a head and shoulders top here, uh, is a shoulder over here and a head over here and a shoulder over here.

So it looks like we’re in a top formation and excluding this cross over here, which dealt with the March 2020 lockdowns, which weren’t exactly natural. We have another cross that is just forming this past week. First one since 2001, excluding the one in 2020 from the lockdowns. It’s a very encouraging sign. You can see here that the 50 week moving average is 2.27, the 200 week moving average is 2.27. If we zoom in, we can see that the 50 week moving average just goes back to June of 2023, this chart. So you can see exactly what’s going on.

50 week moving average at 2.272, 200 moving average is 2.273. The blue line has moved beneath the red line. We are in the first cross since 2001. This is a long term bullish signal of gold versus stocks. And that’s so important because once the average American Joe and the average Western, whoever his name is, sees that gold has been outperforming his stock portfolio, he’s going to pile out of stocks and pile back into gold. And gold is going to rise and especially silver by orders of magnitude from where we are now. Eventually, I think we’re going to reach that 100% backing ratio, which should bring gold up to somewhere around between 30 and 50,000, depending on the size of the balance sheets at that point.

It’s just going to be crazy. And it’s coming very soon. Huge short covering in palladium. I just noticed this. We have a move higher in palladium from about $800 an ounce to $10.50 now and a concurrent move down in open interest. So open interest has been moving inversely to the palladium price for a few years. I think two or three years now. We see a big move down in open interest from about 31,000 contracts, maybe 30,500 contracts, exactly what it is. We’ve got 18,700 now. This is from yesterday, but I think it’s 18,700 now.

So almost half of the contracts have been closed out. What is going on? It’s a lot of short covering. How do I know that? Because the blue line, which is in the entire short position, right? No, there’s 348 contracts for here, but most of the others, the producers, the merchants, and the others, they are not short. They are mostly net long here with the exception of that yellowish green line, whatever that is, 348 contracts. But the bulk of the short positions are in the hedge funds and they have covered about 46% of their short positions in one week.

The previous number was 12,391. Now it’s 6,652. You do the math and that’s 46% of all short positions held in palladium have been covered in one week. Something is happening in palladium. I don’t know exactly what, but I’ve been waiting for these short positions to reverse and I expect palladium and the other platinum group metals to outperform gold and silver on the initial announcement of the final printing round, though, over the long term, gold and silver will outperform the platinum group metals because their money in the platinum group metals are less so money.

They have monetary properties, but they’re not the perfect money, whereas gold and silver are. We can see here from rhodium that rhodium has gone down as much as it probably will. There’s a huge support. This is a rhodium ETC or whatever it’s called. It’s a derivative of rhodium. So we see here that the bottom is pretty firm at this $400 mark or 400 pound mark for this ETC or ETF or whatever the hell it is. And it’s the same number that we hit at the lockdowns in March 2020, same area. So it doesn’t look like palladium is going to go much, sorry, this is rhodium is going to go much below where it is now.

And we might have a trip back up and the other platinum group metals will follow rhodium, but rhodium will be on steroids. This is just a proxy to see where we are in the platinum group metals market. Now that’s what I got to talk about this week. Please sign up to be a subscriber to the Endgame Investor. There’s a free article in the link in the description below. You can always buy a dirty man safe to support this channel and use the code endgame10 for 10% off at checkout. You can store your metals with monetary metals in our interest in ounces on your ounces.

Use the link in the description below and you can become my patron on Patreon where I give a weekly biblical class in monetary policy economics. The last we did was a hint of the Austrian school business cycle theory in the book of Mika, in the book of Micah. To me, it’s pretty compelling having to do with dishonest weights and measures and whether a society during the boom phase of the massive theft that is inflation, can it really be success? And the answer that Mika says is no, it’s an illusion. This is Rafi with the Endgame Investor.

But this week’s wrap up of the gold and silver markets and I’ll see you guys probably on Sunday or Monday. [tr:trw].

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