➡ The U.S. bond market is at risk due to a dangerous financial strategy called the Basis Trademark, which hedge funds are exploiting using borrowed money. This could lead to a financial crisis, forcing the Federal Reserve to intervene with more money printing, which could devalue the dollar and increase the value of real assets like gold and silver. The situation is worsened by offshore entities using tax havens to hide large leveraged positions in U.S. debt, creating an illusion of demand and stability. If this artificial demand collapses, it could trigger a major financial meltdown.
➡ The basis trade, a popular Wall Street strategy, is becoming a major financial risk. This strategy involves buying long-term US Treasuries and shorting treasury futures, using high leverage to profit from small price differences. However, this can lead to huge losses when market conditions change. The scale of this trade is now so large that it could cause a systemic financial crisis if it unravels, and it’s difficult to track because it’s hidden in complex financial structures.
➡ When the financial system faces trouble, people often turn to hard assets like gold and silver. This is because these assets hold their value and can’t be created out of thin air like paper money. The article suggests that due to current economic conditions, including high government debt and the potential for inflation, silver could become a particularly valuable asset. It also highlights that silver has a history of increasing in value during financial crises, and the current economic situation could lead to a significant increase in its value.
➡ The text discusses the financial risks of over-leveraging and the lack of regulation in the system, which could lead to instability. It also highlights the increasing demand for silver due to its use in technologies like solar panels, electric vehicles, and AI infrastructure, with supply struggling to keep up. This could lead to a scramble for silver in the event of a financial panic. The text also mentions the potential for market fluctuations and the importance of technical analysis in predicting these changes.
➡ The article discusses the current state of the silver market, highlighting that large institutions are quietly buying up silver during market dips. This strategic accumulation is a response to global financial instability, with silver seen as a safe, undilutable asset. The article also notes a growing distrust in paper markets and a potential shortage in physical silver supply, as more silver is being moved from COMEX warehouses to London due to better pricing and liquidity. The article concludes by suggesting that when the general public realizes the value of silver, the supply may already be depleted and prices could skyrocket.
➡ The article suggests that the gold-silver ratio, a key market indicator, is signaling a potential surge in silver value. It argues that silver has been undervalued due to market manipulation and is poised for a significant increase, potentially outperforming gold. The article also warns of a looming financial crisis, suggesting that investing in silver could provide financial security. It encourages readers to prepare for this potential shift and to seek professional advice before making investment decisions.

We will be 40 trillion before the year end. And who are these big buyers? They are being financed by Repos. Overnight daily repo funding and the money market system. You just get the future move away from the cash markets and they will not have the margin to hold it up. It becomes systemic, too big to fail. Fed has to stand in it’s a long term capital markets parallel as well because they put the entire. A tiny Caribbean island with a microscopic economy just got exposed for holding $1.8 trillion in U.S. treasuries. Let that sink in. This island’s GDP is barely a blip on the map yet it’s supposedly financing nearly 5% of America’s national debt.

But the truth is far more dangerous. That number isn’t a mistake, it’s a signal. A signal that the entire US bond market is a Ponzi scheme on the brink of implosion. The so called robust demand for Treasuries is nothing more than a hyper leveraged illusion. And now the cracks are beginning to show. Veteran market sniper Francis Hunt is sounding the alarm. Comparing today’s setup to the calm before the subprime crisis. At the center of this ticking time bomb is something called the Basis Trademark. A risky arbitrage play that hedge funds have been quietly exploiting using borrowed money from the repo market.

It’s a trillion dollar carry trade held together by razor thin spreads and blind faith in Federal Reserve backstops. But that faith is fading fast. The bank for International Settlements has already warned that this trade has become so crowded, so dangerous that it threatens to detonate the entire repo funding system. If that happens, the financial contagion could spread in seconds, locking up credit, vaporizing confidence and forcing the Fed into yet another emergency bailout. And when the Fed steps in, there’s only one thing you can count on. More money printing, more debasement, and an even bigger flight into real assets.

Gold will move. But silver. Silver could explode. Hunt believes the coming fallout will send silver beyond anything we’ve seen before. Not $50, not $100, but possibly $1,000 and beyond. This isn’t just about precious metals anymore. This is about a systemic event so massive it could reset the entire financial order. And it all starts with a crack in the US bond market’s biggest lie. It’s an incredible story, Elijah. And like you, I have my suspicions. As much as I don’t wish any ill on America, I have my suspicions surrounding comment about robust. A great auction for Treasuries again today.

You get a lot of this. All these people Talking about, you know, the dollar’s under threat, look how well demanded the treasuries have been, etc. Etc. And there’s, there’s been recent revelations, but it’s worth also putting why these recent revelations have come out. There was an event in April that was very specific to the gold market and I’ll tie all this back to gold. I don’t want people to think that we’re just going on a journey in the wilderness. This is a gold story in the end and a silver story very, very strongly. So in April, at what we called and named Peak Trump Tariff Tantrum, which was when the very first time he was getting super aggressive and levied triple digit type tariffs across the broad spectrum of nations.

But you know, the ones on China being probably the most significant due to the trade relationship that is held there. We ended up getting an event that saw treasury spike down in value, rates spike disproportionately up. And I will show you that event on the charts when we refer to the technical section in the second half of our chat. But I want to put that landmark for everyone to remember and of course what also happened which brings us back to gold. And I will be tying, once I’ve taken you for a little bit of a walk in the wilderness, I’ll be tying this all back.

Gold ran having done our target of 2,900 and 3,000 that we had suggested when we were down at 2,000 on your channel, gold had a surge from the 2, 900 smashed right up to 3,500 and that was its peak. And then we got put into an April till September continuation pattern that recently broke out and led to the 3350 runs right the way through for another thousand dollars to the high end of 4350s. And then we’re having our pullback. But going back to that April moment that the super, super violent, what was really behind that, we called it Pete Trump Tariff Tantrum.

And the great irony about that is Donald Trump came out and said without being prompted, I don’t know how this came out, but ended up saying we weren’t worried about the bond market. Now what’s happened since then is the bank of International said behind the headlines and buried in footnotes, a silent army of offshore entities has been propping up the US treasury market. And now we know why. That $1.8 trillion position from the Cayman Islands isn’t an anomaly. It’s part of a much larger pattern, a hidden network of hedge funds and financial institutions using offshore tax Havens to disguise massive leveraged positions in US debt.

These aren’t real investors. They’re intermediaries in a shadow system engineered to fabricate demand, conceal risk and and keep the treasury bubble alive just a little longer. But the illusion is starting to collapse. You see, the offshore treasury buyers aren’t buying with real money. They’re borrowing it, usually short term, from the repo markets and plowing it into long dated US bonds to capture tiny spread profits in what’s known as the basis trade. On the surface it looks like a harmless arbitrage, but under the hood, it’s a financial powder keg. These positions are so heavily leveraged that even minor shifts in interest rates or market liquidity can trigger forced unwinds.

And when that happens, the whole illusion of demand disintegrates overnight. The reason this offshore buying has been allowed to balloon is simple. It creates the image of strong global appetite for US debt, which keeps rates low, government borrowing costs manageable and Wall street comfortable. But the truth is these trades are nothing more than synthetic demand manufactured through short term borrowing, repackaged through offshore accounts and magnified by leverage. The real buyers, the ones with actual capital, are disappearing. And in their place stands a brittle system built on debt derivatives and misdirection. Now that the veil is lifting, the implications are staggering.

If this artificial demand unwinds, US bond prices will collapse, yields will spike and liquidity will vanish. The treasury market, once considered the deepest, most stable financial arena on earth, could become ground zero for the next great financial meltdown. And if you think that’s just hyperbole, consider even the Fed is struggling to trace where the risk actually sits. Because when you hide trillions in leverage behind shell companies and repo flows, you don’t just lose transparency, you lose Controlmans, which for those that aren’t familiar is a Swiss based central bank. To all central banks highlighted that there is a crowding out and real systemic risk brought about by a very crowded trade, a very highly leveraged crowded trade.

And that trade is what’s known as the basis trade. So a top line everyday man’s explanation of the basis trade without losing ourselves too much in fin speak and gobbledygook jargon is basically the following. Leveraged hedge funds buy Treasuries. They do so with great leverage. So they’re typically putting 1% and 2% maximum down. They are being sleevered up essentially 100x and are holding this. They are then pledging it as collateral and then they are securing further leverage. They are shorting the futures Markets which typically trade higher than futures are basically, particularly on bonds, it’s just fiat, but it’s fiat with a delayed delivery.

So it’s all about fiat. Even debt markets aren’t really debt markets, they’re fiat markets. We say we merge the two back together. They Siamese twins with a one and the same. But it’s just delayed delivery, Fiat, a bond, that’s all it is. With a, with a, with a, with a maintenance cost. So in essence they are shorting futures on the basis. By the time the expiry comes, the futures typically come back down and meet spot on delivery day. There’s no point in buying a more expensive future for delivery the same day if you can buy a spot cheaper.

So invariably they come down. So they’re shorting the higher line that comes down and, and buying the undervalued assets. So many will say, well technically they hedged because they’re long the same assets that they are short. The problem comes in is most markets have what’s called contango. That means the future delivery costs more than the present ownership. There’s in things like gold and oil, obviously there’s storage costs. When you’re talking about paper money that is all digitized. It’s more about opportunity cost and also interest rate costs and, and maybe a little bit of inflation that creeps in there as well being priced in.

So they are getting a very meager return. It’s not a great trade particularly, it’s a very meager return. How do you maximize a meager return? You apply a huge amount of leverage on it. But there’s also costs. And in the financial running of this basis trade system, they are pledging the collateral. They’re even. So what exactly is this ticking time bomb they’re all betting on? It’s called the basis trade, a Wall street favorite that’s quietly become one of the most dangerous financial maneuvers in the modern era. On paper, it looks harmless. Hedge funds buy long term US Treasuries and simultaneously short treasury futures, capturing a tiny difference between the two prices.

But what makes this trade so seductive and so deadly is the leverage. We’re not talking two times or three times, we’re talking 50 times, sometimes even 100 times leverage fueled by short term repo borrowing. Imagine putting a down payment on a skyscraper with pocket change, then betting the wind won’t blow too hard. That’s what these funds are doing. They’re counting on tiny price movements to deliver steady profits so long as everything stays calm. But markets don’t stay calm when Volatility spikes when bond yields shift or when liquidity dries up. That leverage flips the trade upside down and losses multiply at lightning speed.

The explosion risk isn’t theoretical anymore. The bank for International Settlements has already flagged this trade as a systemic threat. In 2023, we saw echoes of stress when US debt ceiling debates rattled confidence and repo rates spiked out of nowhere. Back then, the Fed smoothed things over quietly. But in 2025, the scale is orders of magnitude larger. Trillions of dollars are riding on a trade that only works in a low volatility, high liquidity world. And that world is disappearing fast. What makes the basis trade uniquely dangerous is its invisibility. It’s buried in hedge fund balance sheets, masked by offshore entities and financed in the shadows of overnight lending.

No one knows exactly how big it is. No one knows who’s exposed. And that’s the real problem. If the unwind begins, it won’t just hit one fund or one bank. It will ricochet through the entire financial system, draining liquidity, collapsing bond prices and forcing a chain reaction of margin calls. And the second that happens, silver is no longer just a safe haven, it becomes a lifeboat. Because when a hyper leveraged illusion starts to implode, the rush into hard assets becomes violent, letting go of ownership for it for a while. And financing with the repo markets, which brings in the intricate plumbing.

Repo markets are the interbank lending, where excess deposits can be lent to other banks at a low, low liquidity levels overnight just to shore up a short term cash need. So you have all of this interbank plumbing that typically doesn’t affect you and me in the streets. Of course it also extends into money markets. Now, as a just an aside not specific to the basis trade, Warren Buffett is getting a lot of attention for having one of the biggest holdings in the money markets. I think he has in excess of 300 billion in the money markets where he’s earning around 4, possibly a bit more percent on that on an ongoing basis because he’s unhappy with equity valuations.

So he is providing liquidity to 10 technically via the money markets for interbank lending. His bank can make up those excess deposits available to other banks that might be short. And all of this is a funding mechanism for aggressively levered through the primary dealers who are facilitating the hedge funds for putting this trade on. And I compare this to subprime. The only differences is subprime. You and I as man in the street got to see we saw, we had a friend at the dinner table who had 10 apartments but didn’t, you know, didn’t have the money for one.

He just put a good faith deposit, a very menial one down. Some had even got 100% finance or even beyond 100% finance. We could see there was something odd going on. This is all inside the bowels of institutional banking, primary dealers, repo markets, money markets that most people don’t understand. And there is excess leverage building up there that’s likely to cause a repo crisis or a money market crisis. And this is so systemic. The point of BIS that brought this out about what’s going on in the basis trade. That prompted the Fed to reassess how much Treasuries are truly held by the Cayman island and saw that an already big whale in Treasuries was understated by 20.

It was only 25% of the position they truly had. In other words, 4x the true value. So here you have a tiny Caribbean island. You’re talking about a spec of an island that has 7.1 billion as of 2023 GDP. Now let’s just say 7.1 billion GDP is the equivalent to a man’s income for a year. Just before we get going, we just launched the official Silver News Daily Telegram. To kick things off, we’re running a 10 ounce silver giveaway. Yes, real physical silver, not a voucher, not digital credits, actual bullion. This telegram will be our new home for real time silver discussions, market insights, collection picks and everything.

Precious metals. It’s where the community truly comes alive. Here’s how to enter the 10 ounce silver giveaway. Be subscribed to Silver News Daily on YouTube. Turn on the notification bell, comment 10 ounce giveaway on three separate videos. Be an active member of the Telegram group and say hi. Once we hit 500 Active Telegram members, we’ll pick one lucky winner to receive 10 ounces of silver shipped directly to you. If you were on 250,000 a year Elijah, you would have according if and you were the Cayman islands. So your 250,000 is equivalent to 7.13 billion. They have 1.8 trillion in U.S.

treasury exposure. That could be the same as you with your quarter of a million annual GROSS Salary having 68 million bond portfolio. Now I think you would be thinking that if you were on that income you might have a bit of gold, you might have a silver to be quite unlikely that you’d be deep in the seven digits on anything. On a quarter of a million you have a bond to pay of other expenses, et cetera. On a Quarter of a million but 68 million bond portfolio is deeply improbable with that level of income. That is the scale to which the Cayman Islands has become this bottomless pit buyer of what I consider to be Ponziinomics, which is 1 trillion every two months.

We’ve just crossed into 38. We did. It was two months ago. We crossed into 37 and it’s escalating. We will be 40 trillion before the year end. It starts with a 4. And who are these big buyers? They are being financed by repos overnight daily repo funding and the money market system. And it’s a crowded trade and all you need is for futures to go into backwardization instead of contango. They are so leveraged and they consider it such a certainty and they’ve all been jumping into the space and getting these returns. You just get the future move away from the cash markets and they will not have the margin to hold it up.

It becomes systemic, too big to fail. Fed has to stand in it’s a long term capital markets parallel as well because they put the entire system at risk and therefore you create the next two bailouts for it’s not even for retail socialized cost on the rest of us major profits. The people who will gain out of this folly though and how do we ensure ourselves is gold. The point at which we had this event in April. It’s worth showing you what gold did when all of this had its wobble that has led to all these recent exposures that we are now.

The warnings are no longer just whispers in dark corners of finance. They’re coming straight from the top. In late 2024, the bank for International Settlements released a chilling analysis. The global financial system is dangerously exposed to a surge in leverage tied directly to U.S. treasury markets. And at the heart of it all, the very same basis trade that’s been flooding offshore books with borrowed billions. According to the bis, the scale of these positions has reached subprime like proportions. Except this time the risk isn’t tucked away in housing loans. It’s in sovereign debt. What’s especially alarming is how this threat is camouflaged.

The leverage doesn’t appear on balance sheets. It hides in repo agreements, in hedge fund derivatives, in swaps and rollovers that recycle debt through the same few institutions over and over again. It’s a daisy chain of fragility built on the assumption that nothing will ever go wrong. But something is going wrong. Repo market stress is rising. Short term funding is becoming more expensive and cracks in bond Liquidity are already beginning to widen. The Fed’s recent emergency injections into repo markets were a clear sign. The system is no longer self sustaining. Liquidity must now be artificially manufactured to keep the machine running.

And every time that happens, confidence erodes just a little more. Remember what triggered the 2008 crisis? It wasn’t just bad loans. It was the realization that risk had been mispriced and misunderstood. Today we’re staring down the same abyss. Except this time the collateral is government debt, the leverage is deeper and the fallout will be global. And this isn’t just a theoretical stress test. Real capital is on the line. When repo markets lock up, when basis trades unwind, and when Treasuries suddenly can’t be offloaded without tanking the market, it all circles back to one brutal the illusion of control breaks.

In that chaos, traditional paper assets will hemorrhage value. And where will that capital run? History has shown us time and time again it runs to hard assets. Gold will rise, yes, but silver, with its dual role as a monetary and industrial metal will move faster, harder and further. Because in a leveraged system collapse, it’s not just about safety, it’s about survival. It was this period here that saw this huge run up. Doesn’t look huge now given what’s happened since, but we had a surge from the two nines to 3, 5, $600 on $2900. That was literally a 20% move.

And they quickly went into many behind the scenes crisis. Many of people aren’t even familiar that much was going on. But Trump did make that rather telling statement. Did you have concerns about the bond markets? It’s worth also showing you what the benchmark U.S. tenure did of which housing finance is so reliant on Elijah but and that was this period. You should see it immediately pop. This was $Gold at 2,900, Bang Gold at 3,500. And as much as there’s been talk of cuts and everything is recessional and soft, which it is in my opinion. You have yet to make the pre basis trade wobble lows.

We’ve been in a long slow comeback with terrible news on employment. We’ve had some shocker non farms. We didn’t get a non farm because of closure last month but before it we had two in a row, very very hard hits. You’ve had Trump putting pressure on all of that. You’ve yet to get back to the rate level on 10 year treasuries that you were at here just prior to the basis trade. Wobble. So this just goes to show the sensitivity and to complete this, I want to show also the Dixie. And then I’ll hand back to you because this has been a long narrative that I’ve unloaded on you.

But that what was, was what happened to the dollar index during that same period. The harshest part of the adjustment, it had already started at March a little bit. You could see it as soon as we hit April. That was a very, very violent sell off. Dollar went down, Treasuries went down, rates spiked. Gold. And this is a gold story. I told you I’d bring it back. 2,900 zip. Suddenly 3,500. So let me get back to you and let you come back at me Anyway. So how does the Fed respond when the system begins to crack? The same way it always does, by printing.

But this time, the stakes are higher than ever before. With over $40 trillion in government obligations hanging in the balance of and a collapsing illusion of global demand, the Federal Reserve has no choice but to step in and absorb the fallout. That means unlimited liquidity, renewed quantitative easing, and interest rate cuts that will drive real yields deep into negative territory. But here’s the catch. We’re not in 2008 anymore. Back then, the Fed had room to maneuver. Inflation was low, trust in the dollar was strong, and the public still believed in central bank omnipotence. Today, it’s a different world.

Inflation is sticky, the labor market is softening, and every intervention only digs the hole deeper. A bailout now doesn’t just restore confidence, it shatters what little remains of monetary credibility. Investors aren’t blind. They’re watching the Fed dilute the currency in real time. And they’re looking for the exits. This is why the silver thesis becomes so powerful in this moment. Because unlike paper assets that rely on trust in central banks, silver is real. It’s tangible. It can’t be printed into existence or rehypothecated into oblivion. And as the Fed reopens the monetary floodgates, silver isn’t just catching a tailwind, it’s getting shot out of a cannon.

Every dollar the Fed creates to rescue the treasury market adds fuel to silver’s ascent. And the scale of the response needed is unlike anything we’ve seen before. We’re not talking about a few billion in repo support or modest rate tweaks. We’re talking about trillions in liquidity injections to stabilize a market built on fictitious leverage. And when the Fed floods the system again, it will send a crystal clear message to the fiat Money is broken. That message won’t be ignored. It will trigger a global revaluation of real assets. And at the center of that revaluation will be silver surging, not just as a hedge, but as the ultimate escape from systemic failure.

Your next major financial crisis may have this theme. On basis of what my research has shown me, and I’m not the only one by the way. There’s other people that you can follow that have picked up on this and I did get some X. Which profile was it? There it is. There’s a gentleman here who’s also been covering it I think is worthy of a mention and that is Jeffrey of graphical. He’s been putting it out and I’ve been reading his takes on top of our substack takes and he’s bang on. And the interesting thing is this is a very useful formula.

I like how he summarized this. The US government spending 2 trillion more than it collects. Yes, yes, yes. Hold on, where’s the one I’m looking for? This is the key thing. The more bonds are issued, let me just put this in the pink box here so that it pops for everybody. The more bonds issued, the more leverage buying is needed through the basis trade. The more demand for repo loans because they don’t have the money to buy the bonds. They’re such big amounts, they are hyper overvalued. They should be trading a lot less with much higher interest rates.

The bubble and the controlled market is the debt markets, nothing else. And debt fiat is the foundation. Everybody wants to talk about stock markets and everything else. Those all sit like layers off of the foundation. The debt fiat system is the foundation. The more bonds issued, the more leveraged buying, the more demand for repo loans. Upward pressure on short term repo rates, that is makes it very hard for rates to go a lot further down because you’ve got this liquidity suction that is being put on the repo markets and that builds systemic risk. This part of this tweet as well that the gentleman Jeffrey did put down highlights that this and I like some of the phrases.

I’m just going to change glasses for the reading of it. This is the biz. The government’s bond markets at its center and asset managers of various stripes as key intermediaries. As a result, the key risk today is liquidity stressing in government bond markets. Hedge funds in particular become key providers of pro cyclical liquidity in government bonds markets, often employing high leverage relative value trading strategies by using government security as collateral in the repo market to borrow Further, so haircuts have gone to zero. So haircuts are when you require a kind of a deposit, you take something, they’ve gone to zero and even negative so you can actually pledge collateral and get more lending back.

Just think about this, Elijah. Imagine I took your. Every time the financial system stumbles, silver has a habit of coming back with a vengeance. It’s the metal of chaos, ignored in calm markets, but explosive when things fall apart. Just look at history. In 1980, silver skyrocketed from under $6 to nearly $50 as inflation surged and trust in the dollar collapsed. In 2011, during the aftermath of the global financial crisis and quantitative easing gone wild, silver surged again, this time from $9 to almost $50 in just three years. Both times, silver didn’t just rise, it obliterated expectations.

And now we’re on the edge of a crisis far bigger than either of those moments. What sets today apart is the scale. We’re not just dealing with inflation or banking stress. We’re talking about a full blown sovereign debt bubble, supercharged by invisible leverage and propped up by artificial demand. This time the dominoes aren’t mortgage backed securities, they’re Treasuries. And when the world’s most trusted financial instrument turns toxic, the rush into hard assets doesn’t trickle in, it floods gold. Of course we’ll move first. That’s the usual pattern. But silver always follows. And when it does, it doesn’t just catch up, it overtakes.

Why? Because silver is the smaller, thinner market. It takes far less capital to move. And once momentum kicks in, the price can launch vertically. We’ve seen it before, and this time the setup is even more violent. But here’s the this isn’t just about monetary panic. It’s about history repeating itself with even greater force. The volatility, the distrust in fiat, the scramble for safetyall the conditions that fueled silver’s past super cycles are here again, only amplified. And with the added pressure of industrial demand and vanishing inventories, the spring is wound tighter than ever. So when this new crisis erupts, when the Fed hits print, the bond market convulses and fiat currencies begin their descent, silver won’t just react, it will detonate.

And if the last two explosions took it to $50, what happens when the crisis is 10 times larger? That’s where 1000 Silver stops sounding like hype and starts looking like inevitability. House and wanted to get you leveraged and it’s worth $500,000. And I say pledge your house. I’ll give you $600,000, go buy another house. You buy another $500,000. You still have 100,000 left over. I’ll give you another 600,000 for your collateral. You are slowly accumulating. Instead of buying 500 grand houses, you now start buying 600 grand houses and you’re still cash flow neutral. So by getting negative haircuts means they’re allowing people to borrow more than against that collateral.

So this is complete non underwriting standards much like which is why I compared it to the Autobot signing on NINJA loans in subprime. But it also has a long term capital vibes about it because it’s systemic of risk. That was one of the first that brought systems haircuts have gone to zero meaning the creditors have stopped imposing any meaningful restraint on hedge fund leverage. So they’ve gotten complete pamps down on regulation. And of course you don’t have to co opt SMP and Moody’s for this because none of that is being regulated by the, the, the ratings agency.

This is dealers brought about hedge funds and primary dealers directly. This high leverage leads the broader market more vulnerable to disruptions. And even slight increases in haircuts can trigger poor selling and amplifying financial instability. So we are, we are watching in my opinion the next stage of gambling the entire system for the eventual for maintaining the existing Ponzi basically which is treasury purchases. There is no one with a trillion every two months. Nobody has that kind of income. Even China with all its trade doesn’t have the means. I think they topped out in total around a trillion and they sub a trillion today on all time accumulation of treasuries and there’s a new trillion every two months.

So where who’s been the buyer? Well we also had the, the French and the uk I call them the slave nations that are tied to the post of the western hegemony. The only thing that’s good for the collapse for America is that they won’t be alone because they’re going to drag down the entire western world that is bought into the same Ponzi. And that’s where we, that’s where we are. I don’t know if that helped give you some more color but, but it is the financial leveraging of the system has created fake demand for an asset that is of dubious quality and for which there appears to be very little regulation in between.

And they are putting the entire system at risk. Silver’s industrial engine is no longer just a side note in this story. It’s the accelerant. Unlike Gold, which is hoarded and stored, silver is consumed. It disappears into solar panels, electric vehicles, medical equipment, and AI infrastructure, never to return. And right now, global demand for these technologies is erupting, while mine supply can’t keep up. This isn’t just a bullish setup, it’s a structural failure in the making. Start with solar. In 2024, photovoltaic manufacturing accounted for nearly 20% of all silver demand, up from just 5.6% a decade ago.

Governments are throwing billions at clean energy mandates, and solar installations are scaling at historic rates. But here’s the Silver is irreplaceable in high efficiency solar cells. No metal matches its conductivity. There is no alternative. So as solar demand soars, so does the need for physical silver, year after year. Then there’s the EV revolution. Electric vehicles consume two to three times more silver than internal combustion cars, requiring 25 to 50 grams per vehicle. With global EV production on track to more than double by 2030, the demand for silver is locked in. Automakers, battery giants, and tech manufacturers are all drawing from the same finite supply, and they’re not stopping.

Add to that the relentless expansion of 5G AI servers and advanced electronics, all of which require silver for circuit integration and thermal regulation, and you begin to see the full picture. Silver isn’t just a financial hedge anymore. It’s a critical input for the technologies defining the future. And every ounce that goes into an EV or a data center is an ounce that’s not coming back to market. Meanwhile, supply growth is stagnant. Global mining output rose just 0.9% last year, barely keeping pace with rising industrial demand, even with new projects. And by product recovery, silver deficits are forecast to persist into 2026 and beyond.

Warehouses are being drained, inventories are thinning, and the margin for error is gone. So when financial panic hits and investors rush to buy silver, they’ll be competing not just with each other, but with factories, automakers, and energy giants who need silver to function. That’s the real squeeze. A scramble not just for investment exposure, but for physical survival in a world that’s running out of options. Current movements. So we were going up exceedingly quickly, Elijah. I mean, the rate and pace of it and also the gain in market cap was substantial. Was absolutely substantial. We mentioned. Let me use a slightly smaller line than that.

We mentioned this breakout was going to be a key opportunity. It was one of the best since our 2000 to 3000 core, and it ended up. It gave us a fake run here that caught us out. We, we had a little bit of red and then we came back and we leveraged long here. This has been an outstanding trade for us and it’s been a major run up but it did start to go up excessively quickly and we’ve had, we’ve had a pullback. So we’re on the daily time frame I can say for the day. We washed out to the low and it’s been bought back up.

This is a little bit of a hammer now. You’ve already had one hammer here. Let’s, let’s make this a bit more visible. It’s reduced the history and so that no one has to look through magnifying glasses to see what I’m saying. You did get a bit start of a hammer and it slowed there but you still fell a little lower. We had reasons to believe that this is going to play out. This was quite a violent sell off there given that you’d done so much. But this, I don’t think there’s too much more. There might be one more selling leg potentially.

So when we put our, our technical analysis on this, we are highlighting by the way that you have sell offs all the way along and back. You’ve had 10% in April after the 3500. You had over 10% correction as well and that ended up setting up a continuation pattern. So if we look at the. Sometimes you get three waves of selling. The first one was ignored, you rallied all the way back. You could, that could be your second and then you’ve had a grind down low of third. That could be one way of reading it. We think that’s possible.

We can’t say for sure because maybe the selling only started. This went so high. This was double top. So we felt that there was a down leg to here that got made. You then had a continuation pattern developed there. So I mean to a degree I’m explaining what’s already happened, which is typical of technical analysts. But the key point is it drops key levels for you along the way. So if I draw that inverted HVF structure, we felt that you were going to fall a little lower. So in our community updates we said you got to run that target down here.

That’s now been done. So you’ve made a double top pattern break on a target, you’ve got a rally that sets up this continuation pattern which is still a bear trend short term on this time. Just before we get going, we just launched the official Silver News Daily Telegram to kick things off. We’re running a 10 ounce silver giveaway. Yes, real physical silver, not a Voucher, not digital credits, actual bullion. This telegram will be our new home for real time silver discussions, market insights, collection picks and everything precious metals. It’s where the community truly comes alive. Here’s how to enter the 10 ounce silver giveaway be subscribed to Silver News Daily on YouTube, turn on the notification bell, comment 10 ounce giveaway on three separate videos, be an active member of the telegram group and say hi.

Once we hit 500 active telegram members, we’ll pick one lucky winner to receive 10 ounces of silver shipped directly to you frame. We’re talking two hourly certainly not weekly monthly daily and that squeezed and broke and that’s also made its target so we think you’re going to be choppy. We’re not yet ready to call a bottom but we think you’ll be choppy A little bit of a rally Having made some targets there was one wild card. I don’t think it’s a strong likelihood. It’s not my base case but we almost glad that this traded deeper here than there.

It would have been more dangerous had we supported here that 3950 but there was a slight possibility at that point for a possible head and shoulder. The trade lower here by not accentuating any support has almost to a degree been better. Had we bounced here and put a weak rally it would have opened up the possibility of a far larger reversal. I think we’ve to a degree negated that but there’s still we’ve still got to sit this one out for a little bit. I think it’s great time for dollar cost averaging and accumulation not for leverage long trading yet.

I don’t want to catch a falling knife but I at most I would if even in our worst case scenario I think you if you rally here you might have a third. We typically have three waves of selling and the interpretation is probably the the we can’t count this first hit so maybe that’s just the first wave of selling and that’s the second. So we could have a rally and then one more dip. Typically the the cell here was less aggressive than the first one so it’s already reducing by amplitude. So we’re not calling a bottom yet but you have just run a technical target and I think the chances of it being a bigger head and shoulder are greatly reduced.

It’s worth doing silver as well even though gold is the leader but it’s nice just to get a little bit of a feel. Also on silver we drew the same thing with the possibility of a head and a shoulder but we don’t think this one’s coming. This is again a very small left shoulder. So the same if. If gold did break down into that head and shoulder, Silver would have a pretty similar one. But this is quite disproportionate. It’s rare that you get such a big head and two tiny shoulders like a. So again, gold will be the determinant.

But we’re not ready to absolutely say that it’s a bottom yet. I just think it’s a great opportunity for accumulating. But this head and shoulder is not my base case. I think with Silver you have had three waves of selling that which did give a head and shoulder, by the way. We generated that target and that target has also been run. So that’s the head and shoulder there. That was a nice little bear flag. We pointed this point out to our community and we were actually getting out over there. We didn’t like it because you’d had expanding volatility in here.

So it did look toppy at this point and we managed to miss at our leverage trading. Thankfully, that big sell off. Again, a little bit of continuation also set up some form of a target. Those have all now been made and now you’re getting a little bit of rally. Not quite ready to call the bottom yet on it. I will show you platinum as well because it seems to have diverged a tiny. While the retail crowd remains distracted, the real money is already moving. Institutions aren’t waiting for headlines, they’re positioning. In 2025 alone, silver backed ETFs saw over $40 billion in inflows during the first half of the year, surpassing the entirety of 2024.

Hedge funds, sovereign wealth funds and private capital pools are quietly accumulating silver exposure not in flashy headlines, but through relentless buying during every pullback. This isn’t speculative gambling, it’s strategic accumulation. And they’re not doing it blindly. These investors see what’s coming. They see the debt spiral, the repo risks, the fragility of the global bond market, and they’re hedging accordingly. Look no further than Comex. In October, physical deliveries surged 28% month over month, hitting over 12 million ounces. That’s not just paper shuffling. That’s metal being pulled off the exchange and locked away. The big players understand that in a true systemic crisis, paper claims mean nothing.

What matters is ownership of assets that can’t default, can’t be diluted and can’t be frozen. And silver, with its small market and high industrial utility, becomes a prime target. It’s thinly traded, volatile and massively undervalued relative to gold. That’s a dream scenario for institutions looking to front run a breakout. And they’re using every tool at their disposal. Long positions in futures, direct physical purchases, strategic investments in mining companies and private contracts for industrial supply. They’re even exploiting the price dislocations between COMEX and London where arbitrage opportunities have emerged due to shipping costs, tariffs and geopolitical uncertainty.

This stealth accumulation is a classic move. Smart money moves early, accumulates quietly and waits for the storm. And when retail investors finally wake up to the silver squeeze, they’ll find that the supply is already gone, the price is already running and the institutions are already locked in. Because the people with the most to lose from a fiat collapse are also the ones with the best tools to prepare. And right now they’re making their move. But let’s just do that platinum and minus the O there it appears to be a tiny bit stronger. And I, I think it’s the next once we based and we surge I think we’re going to get another period of outperformance here from platinum.

If we look at it from its worst moment to where it is now, that was its high and it’s very rare. It’s only 7.84% down. If I take you back to that silver chart, let’s do some measurement for you. How far Isn’t it ironic? You know bitcoin’s been trading more than teens double teens down from its high. But everyone on gold and silver at about 7% down is calling the fact that there’s a big trade rotation, I always find that interesting. So silver is 13 and a half percent down, platinum is less so and I think that’s a relative strength indication of it.

Also very thin market in it and we are seeing there was for example one South African platinum mine has been closed because the price isn’t higher enough. They won’t reopen it until prices are significantly higher. And platinum is South Africa and Russia generally as a corner. Gold is 9.41%. So the, the interesting part of this is platinum is a relative over performer in this downleg period. And I think the next surge it could be a star again. So it’s worth watching. So gold 9.4. Let’s get the number on bitcoin shall we? Because as I say there’s been quite a lot of algo forensic chatter from the bitcoin group of friends.

You’re about the same percent down, you’re 8.6 versus 9.4. Now I will concede that bitcoin is a higher beta, so it should typically be harder down and harder up. But that’s not a big significance, a relative outperformance performance, especially when you highlight how parabolic gold was moving in terms of its performance. And I think year on year you probably got gold beating bitcoin. I must check my facts on that one. I will have to do that maybe later and confirm. So yeah, wait a bit. If you’re investing unleveraged dollar dollar averaging absolute winner and stacking now good prices now you don’t have to pick the exact bottom and also probably not as wild the mania queues to stand in.

There have been some queues at some places and premiums will be less so that would be my technical take, just quick flyby. I don’t know if you want to come back on anything there Something strange is happening beneath the surface of the silver market, something that only makes sense when you realize how fractured the global financial plumbing has become. Over the last year, millions of ounces of silver have been drained from comex warehouses, not because demand has disappeared, but because the metal is being relocated. It’s heading overseas, particularly to London, where pricing dynamics, tariffs and liquidity arbitrage are driving the shift.

But this isn’t just a matter of shipping logistics. It’s a sign of growing distrust in paper markets and a brewing shortage in physical supply. In October alone, COMEX deliveries jumped 28% month over month. At the same time, registered silver stocks, the portion available for delivery, have dropped significantly. This isn’t normal behavior in a healthy, balanced market. It’s a stress signal, a quiet exodus of real metal as participants hedge against the possibility that they may not be able to get physical delivery when they need it most. And here’s where it gets even more serious. The paper silver market is built on the assumption that most contracts will settle in cash.

It’s a fractional system where a mountain of paper claims rests on a shrinking base of physical inventory. When traders start taking delivery en masse, the entire model strains and eventually snaps. The moment someone calls the bluff and demands metal that isn’t there, the scramble begins. We’ve seen this story before. In 2021, the Reddit driven silver squeeze pushed physical premiums through the roof, exposing how little metal was actually available. But that was a dress rehearsal. Now the stakes are much higher, inventories are lower, industrial demand is stronger, and geopolitical risks are pushing investors out of the system.

Every ounce that leaves comex weakens the foundation of a Market already under pressure from institutional demand, falling supply and rising distrust. And this trend won’t reverse easily. Once physical silver leaves the vault, it doesn’t come back. It goes into private storage, long term contracts or industrial use. Often in jurisdictions where it’s no longer accessible to the western exchange system. So when the real panic begins and everyone rushes for physical silver, they’ll find a market already drain dry. And that’s when price suppression breaks, volatility explodes, and silver starts to move in ways most investors simply aren’t prepared for.

100% nowhere near the top. You can never be certain. So I just committed a crime by illustrating. So I’ll change it down to 99.99%. Here’s my reasons why you can’t even possibly be close to the top. One of them is this Cayman Islands narrative. A massive Ponzi that still has to clearly blow up and will leave absolute collateralized damage on everyone. That’s shown to be preservation of capital trade gold. The other reason is gold silver ratio. There hasn’t been a silver bull market officially yet. Until silver starts out performing, you’re still in the range of the mid-70s to 80s on the gold silver ratio.

In fact, you might have had with silver going down more, you’ve had the gold silver ratio probably creep up in favor of gold recently, so it’s even going the wrong way. This is the first leg of everything. You have to think how far are we on debt truly being marked to market for its true value and inflation which is much higher in my opinion. We’ve spoke about the liar stats of labor and we’ve said the next expose will be on the fraudulent inflation numbers which are clearly illustrate that bonds are not paying sufficient yield. They’ve been over proliferated and deeply, deeply suspect of value.

So in all things, how much safer is the system until you get the system which is completely deleveraged. And now with confidence, all the rubbish has been burnt out, all the brushwood has been burnt out by the great fire that the grass can grow back green again and you’ve cleared decades a 40 year financialization of everything from 1980 to 2020 which has reversed into the gold epoch now. And that’s the financial investment time. We are the first innings or two in a 913 innings game in my opinion. And I see and I will repeat a single digit overreactions dip in the gold silver ratio as the first moment that I will start rotating out of silver.

Sitting here in the 80s, we’re a long, long way from anything like that. And I think not only does silver clear our targets, and I reiterate our 333 first target, not final target, and the fact that we will make the 90s and there’ll be a pause just before running the hundred as very aggressive calls. We see a four digit for silver and I think people are going to be shocked by what gold will be. Literally, I think it goes beyond the hundreds of thousands before this entire crisis is over. So this is properly early innings and you should expect a number of events like this as this whole thing plays out until literally Europe, America, the western world is on its fiscal knees and everyone is talking about the redrawing of the power matrices in the world.

You haven’t got there yet. And it’s sad that it has to come with the death. We’re all westerners in a way as European, you know, heritage people, but that’s how, that’s how it’s got to go. And that’s. Gold is our only savior in all of this. It’s our only smiles in what will probably be a humil humility event. For most Western nations, the gold silver ratio has always been one of the market’s clearest warning lights. And right now it’s flashing bright red. For years, this ratio hovered in an unnatural range, propped up by distorted pricing mechanisms and endless paper suppression.

But in 2025, something broke. The ratio, which had stubbornly sat above 90 to 1, finally cracked below that key level and kept falling. That shift might seem subtle to the untrained eye, but to seasoned investors, it’s a screaming signal. Silver is about to outperform. Historically, when the gold silver ratio collapses after long periods of divergence, silver doesn’t just play catch up, it surges. In 1980, the ratio fell from over 40 to below 15 in a matter of months, as silver exploded to $50. In 2011, the ratio dropped from 80 to 30 during silver’s last massive bull run.

And now, as gold pushes toward new all time highs and silver lags behind, the setup is eerily familiar. But this time the setup is even more skewed. Gold has been bid up by central banks, sovereign wealth funds and Safe haven investors, hedging against inflation and geopolitical risk. Silver, on the other hand, has been held back, suppressed by paper markets, overlooked by mainstream analysts and ignored by retail speculators. That divergence has created a slingshot effect. And the moment it snaps, silver could rocket past anything we’ve seen before. This is why the ratio matters so much. It doesn’t just tell you about relative value.

It tells you where the next move is likely to be most violent. And right now, all signs point to silver. Gold is doing its job, rising slowly and steadily. But silver is the pressure cooker. It’s the thin market with the industrial tailwind, the shrinking supply and and the institutional FOMO starting to kick in. And when this ratio really collapses, when it reverts toward historical norms of 40 or even 20, that reversion won’t happen gradually. It will come in violent bursts, driven by panic, short covering and the sudden realization that silver has been the most underpriced asset in the entire financial system.

This isn’t just a setup for a rally. It’s the ignition sequence for a detonation. Real opportunity to ensure that you and your offspring can secure yourself financially. Unfortunately, there is an overreach by statism phase going on as the ability to issue debt, which was taxed by sleight of hand through inflation, has been removed. They have to become more aggressive and more totalitarian. The most affected by this are the western nations which most of us are that are watching this material and you can expect tax scavenge mode. Our whole reason for existence is supporting people like you to secure greater wealth during very unique opportunities.

The scale of the crisis is also the scale of the opportunity. For those that are correctly positioned, it is going to be a polarizing event. Those that understood what’s going down and acted and those that didn’t. And you really need to get this decision right. This is the game that you have to our whole YouTube channel and our community is focused about securing your wealth, protecting that wealth and buying yourself real arbitrage and freedoms across multiple jurisdictions during this totalitarian major macro reset period. That is our reason for existence. I was born for these times, you were born for these times.

And you can play a blinder, run this obstacle course, bring your family along with you. You only need one person to have acted prudently and taken action and maximized. And just for people that think just stacking is enough, the accelerated ability to accumulate through your stacking using HVF method and what we do through trading has advanced the wealth of our community substantially. With many taking six and seven digit sums out of the market in the most recent run up in gold that they’ve then converted into accelerated stack. And that’s what I want for you. Secure your entire generation’s wealth, that’s what we’re focusing on doing.

And buy yourself freedoms, utilize that wealth to secure yourself options in countries outside of the West. The illusion is cracking. And the truth can no longer be hidden. For decades, the treasury market has been sold as the world’s safest asset, backed by unshakable demand and infinite liquidity. But now the mask is slipping. The exposure of $1.8 trillion in US debt held by a tiny Caribbean island wasn’t a footnote. It was a confession. A confession that the entire system has been propped up by synthetic demand, shadow leverage and financial sleight of hand. And as the base’s trade unravels and repo markets seize, the real weight of $40 trillion in obligations is becoming impossible to carry.

The Federal Reserve can’t stop this. Their only weapon is liquidity. And every drop they inject into the system only deepens the rot. Each bailout confirms what the market is beginning to realize, that fiat is a rigged game and the rules are collapsing. In this environment, silver isn’t just a trade, it’s a revolt, a tangible rejection of a financial order spiraling into chaos. We’ve seen what happens when the veil of confidence is torn away. In every crisis, silver has moved with speed and violence, crushing expectations and punishing disbelief. But this time, it’s not just fear driving the rally.

It’s fundamentals. Industrial demand is soaring. Inventories are vanishing. The gold silver ratio is breaking, and the institutions are already in position. When the masses finally catch on, they won’t be early. They’ll be too late. Silver at $1,000 might sound outlandish now, but history has a habit of making the impossible inevitable. The pressure is building. The cracks are widening. And when the final break comes, silver won’t just rise. It will redefine what’s possible. If you see the storm coming, prepare accordingly. If you’re still waiting for confirmation, it may already be behind you. Make sure you subscribe for more insights into the coming financial reset.

And remember, this is not financial advice. Speak to a professional before making any investment decisions.
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