➡ The London Bullion Market Association (LBMA) and the Commodity Exchange (COMEX) are two major platforms for trading gold and silver. However, the LBMA allows more flexibility, letting buyers and sellers choose each other and decide whether to settle contracts with physical gold/silver or paper. This has led to concerns about potential manipulation. Recently, more entities are demanding physical delivery of gold and silver, putting pressure on these systems. This is similar to a bank run, but instead of withdrawing cash, big players are demanding their gold and silver. This is causing a shift in the market, with gold becoming more expensive in New York than in London, reversing the usual trend.

➡ The article discusses the current situation of gold and silver supplies, focusing on the London Bullion Market Association (LBMA) and its role in the global market. It explains that the LBMA is shipping out large amounts of physical silver, which is affecting the price of gold and silver. The article also mentions that central banks are lending their gold to the LBMA, which is then shipped out. However, there are concerns about the sustainability of this practice, as the LBMA’s silver supplies could run out in a few months.

➡ The discussion revolves around the unusual behavior of bullion banks holding onto large amounts of physical silver and not recirculating it as they typically would. The speaker suggests that these banks, being close to the Federal Reserve and U.S. Treasury, might be anticipating a rise in silver prices. They also discuss the workings of PSLV (Sprott Physical Silver Trust), an ETF that adds new silver based on its net asset value and market price. The speaker explains that if PSLV’s market price trades at a premium compared to its net asset value, new silver is added to the ETF.

➡ The PSLV market price is influenced by supply and demand, and currently, it’s at a discount. This means it can’t create new shares or buy new silver bars. Some banks hold enough PSLV shares to maintain this slight discount, preventing the addition of new bars. The system is predicted to collapse in a few months due to these irregularities, with physical silver being the safest investment.

I think the community, the silver apes and the gold bugs, whatever you want to call us, I think we’re starting to hone in altogether and seeing the same thing like this, whatever this is, whatever is going on, and none of us see the whole picture. Whatever is going on, I think there’s just, there’s just months left. There’s no more than that. The tentacle’s coming towards Earth and there’s no stopping it. King Kong’s too old to save us this time. Hey guys, Rafi here from the Endgame investor. And today I’ve got Eric Young on the line, the star on Twitter known as with the handle king kong9888.

He’s in Hong Kong, hence King Kong. I only just got that recently because I didn’t know he was in Hong Kong. Maybe asking how this interview came to be. Well, some one of his followers and co follower between me and him, he basically tagged me in a thread and said, you two should talk. And I was like, yeah, okay, I can talk. And Eric’s like, yeah, I could talk too. So we started talking. And that’s how it happens. Sometimes it really is that easy. And when things are that easy, you know, it’s. You know, it’s. It’s the right thing.

So we’re gonna, we’re gonna get talking here. Eric, how are you doing? I’m doing good. Rafi, thank you for having me on the show. Great. I’m really honored to have you. I, I follow you and I, I really value your comments and your insights. They. They focus on things that I don’t really focus on that much. So I’m, I’m really excited to finally get to talk to you and, and ask you these questions. So there were, there were two specific tweets that got a lot of attention and were sent to me about silver, what’s going on with silver, and there was one about pslv.

So I’m going to read the first tweet or actually your message to me about gold and silver price control. So I have a different, a slightly different view to yours. I think we could probably reconcile them. But let me read your tweet here and then I’ll tell you what I think about it. And then with both those pieces of information, I’ll just let you go. Those Daily Comex New York open Gold and Silver slams. This is how the banksters do it. First they open a crapload of paper gold and silver short positions at the comex. Then two, they buy a crapload of corresponding LBMA Unallocated promissory notes.

This is the exchange for physical basis trade. Three potentially get their proxy bankster buddies to sell a crapload of LBMA unallocated promissory notes that the LBMA gold silver prices don’t shoot up too much. These this way they get slam gold and silver. They can slam gold and silver prices and skim off the top at the same time. If gold and silver prices rise, who cares? The banksters still make money as long as their EFP spreads are positive. Also, the banksters would cover most of their COMEX shorts via EFP exchange for physical so that it is not short covered directly on the comex.

This way their short covering has minimal upward pressure on the COMEX gold and silver prices. I didn’t quite follow all of that, but maybe you can explain it a little, a little simpler to me, but I just wanted to comment that I do believe that there is some manipulation on the edges in the gold and silver markets. But my question about those who really focus on it and say this is a serious problem, we have to end this and this can’t go on is that if, if, if it was really disrupting the gold and silver prices like in a serious way, then wouldn’t we see gold and silver shortages? Like you go into a jewelry shop, there’s not enough gold or a dentist, if you want to buy a certain amount of gold for your fillings or someone who manufactures fillings, you wouldn’t be able to buy it because there’d be a shortage.

We see that when price is really controlled for any good or service, there’s either a shortage, if there’s a shortage, if the price is too low, we’re not seeing gold and silver shortages. If you want to buy coins, you can buy coins. If you want to buy bull and you can still buy bullion. So first of all, what’s your objection to that? Why do you think this is so serious? And can you just explain these steps a little bit simpler to me? Because I’m not exactly. I follow that to the middle and then I get kind of lost.

Okay, first of all, I look at it this way, right? The LBMA CallMax ETF system. That’s why I call it, because it’s a system. It’s all tied in together with EFPs exchange for physical. Don’t let let the name deceive you because most EFPs in the past were settled by cash. Cash settled. Nothing physical. But when dtb, as you probably know already Rafi, it can be physical. So what I Mean by that is you have the LBMA, you have the Commax, you have the ETFs, right? You have GLD and SLV. And as you probably know, the vaults for these entities somewhat overlap, especially with the ETFs and the LBMA and the ETFs and the Commax.

It’s essentially the same vault because the LBMA and the comex, they don’t have central voting. It doesn’t work like that. They simply certify the bank’s vaults, for example, and that’s a COMEX vault right there. That’s the lbm they vouch. So, for example, GLD and slb, they share JP Morgan vaux in London and in New York. Okay, okay, so that makes sense. So now you get the entire picture, right? Like this is like three different, you know, locations were gold and silver, physical gold and silver exchange, or like, you know, commerce, I guess. Right. But they’re tied together by this railway kind of thing, which is the EFPs.

Okay, so what, what, what do I mean by that? You know, you asked me a question, you asked me that, you know, if there’s a shortage of physical metals, why is it that people are still able to get metals? The answer is there, there wasn’t a shortage of metals. But what these guys were doing is that they were, they have metals at the LBMA, at the Commax and at the, at the ETFs, like, you know, GLD and SLV. And that metal would, physical metal would shift around these three places via EFP exchange for physical. Okay. And then normally, as you probably know already, Ralphie, in, in the past, I’m not talking about, you know, the last three months.

I’m talking about normally in the past. Most of the settlements at the LBMA and Comax were by cash. They were cash settled. So they, they basically created the perfect system to control the prices of gold and silver. Now some people ask me, they say, well, if it’s so controlled, how come the price of gold went up so much in the last five years? Right? Went from around a thousand to now it’s 3,000. That’s 3x. Why? Because you have China, India standing for physical delivery at both the LBMA and the Comax. So what happened is unless they wanted to have their physical drained, eventually they had to let the price go up.

So that was the, you know, east west physical metal drainage situation. Okay, so that’s, that’s, that’s why gold, you know, the gold price went up over time because China, India, they were continuously standing for Physical delivery over time. But back to your question about, you know, the manipulation. It’s very simple, Ralphie. Now explain the entire system roughly how it works. It’s all tied by efp. The banksters, what, what did they do to further suppress the prices of gold and silver on top of the, of the paper dilution? What they do is they buy a bunch of shots.

They have concentrated shop positions at the comex. That’s what everybody talks about. Ted Buffer, you know, Jim Sinclair, everybody talks about that. That’s nothing new to you, right, Ralphie? Right. Everybody talks about this. Concentrated shop positions, right, that they sit on. That the commercials sit on. Yeah. At the. Which the commercials are basically the Boolean banks and institutions, right? Yeah, those are, those are the, those are the swap dealers, right? I call them the swap dealers. Yeah, yeah, sure. Okay. So the swap guys, they sit on that I call them, Essentially most of them are bullion banks.

Right? So they sit on that at the comics. But what they do, they do at the same time, they long at the ldma. So they buy a long position at the LBMA for every short that they bought. Yeah, they have, they are, they are hedging, right? They call it legitimate hedging. Okay, that’s what they call it. Well, on an accounting basis it is, it is legitimate. But the question is, the long positions that they supposedly have to hed, are they real or not? That’s the question. No, they’re real. They’re real. They’re real in terms of paper.

Right. But the problem is this, this is the differentiation between what I tell people and what the banksters tell people. Because the banksters consider that paper promissory note at the lbma. They consider that physical. It’s not physical. If it’s physical, the LBMA wouldn’t be doing T + 60 right now and T + 90 for deliveries. Oh, you mean, you mean, you mean waiting, you mean a 60 day wait? They might, you might not even get it right. I mean, you have to understand how the LBMA operates. The LBMA is otc. It’s all the transaction is the private between buyers and sellers.

And guess what, Ralphie, is not an exchange like the Carmax that has a CFTC briefing on his neck. Right? At the lbma, the buyer can choose the seller, the seller can choose the buyer. You see that problem? They can choose buyer and sellers and they can choose whether or not to settle that contract by physical or paper. Isn’t that insane? You can’t do that at the comics, supposedly. Okay. You know, under, under the Exchange rules. Right. But you can do that at the lbma. Why do you, why is that, why is that insane? What, why is it, why isn’t it legitimate to pick your buyer or seller you see in pain to take if you do that potentially? I’m not saying that they are not saying that they are.

Okay, don’t want to, you know, get phone calls from people but like can you see that that is a lot more likely to happen if they allow to do that? Right, I can see you’re allowed to pick your buy and seller and you can, you can decide if that contract settle physical or paper. That’s a lot of control on the, on the buy and seller side. Right. You can do whatever the hell you want. Essentially. It’s, it’s like a wild wild west at the lbma. Yeah. Compared to the comics. You can, you can do that, you can do that with gold and silver.

But thing is you, what enables someone to do that? There’s something about gold and silver that makes it able to be manipulated in this way. Whereas for example, you can’t do that with oil or copper or, or, or wheat or something like that because those are consumed. They don’t have a two tier system either. Right. Think about it. With gold and silver you have a two tier system. You have an exchange in the US which is the comics, and you have a OTC market in London. So essentially what they did was they offshored all the manipulation, most of it, because I know you guys document the manipulation on the comma side.

But that’s really minor compared to the manipulation that is systematic. Okay. LBMA and con, top of that, they’re doing a lot of, you know, they’re just flooding the LBMA of paper. Most of the LBMA transactions of paper unallocated. Okay. Paper transactions, meaning never. There’s never any physical changing hands. Physical golden or silver. So that’s how they do it. They, they suppress COMEX by the concentrated shots. They balance out that, concentrate those concentrated shorts at the CarMax with the paper promissory note longs at the LBMA and then. Okay, so they have a bunch of logs, right. What they can do is they can just flood that LBMA with paper.

Buy and sell buying. So buy and sell, Right. They can’t do that at the, at the comments. You know what? Guess what? They can also cancel contracts. Yeah. In 2022 they did that with, what was it, nickel. Okay, they can do that in London, but they can’t do that on the CarMax. Okay. Or if they do it on the Comex is it’ll be worldwide news. But they do it, they can do in London. I mean it’s like part of the. Their own rules, right? Their own rules can be changed too because they’re private organization. It’s not like a government sanctioned, you know.

Well, it’s government sanctioned, but the government doesn’t govern it like the way that the CFTC governs the comics. Well, so I think. So this only lasts, this, this only lasts as long as people tolerate it because once they say, well, we’re not going to tolerate this anymore, then nobody cares what the LBMA says about gold price discovery goes away from there and then it’s irrelevant. And then people have to find a different exchange or a different market or just interact with each other. I mean the reason that this doesn’t work with oil, they can’t control the price of oil in this way is because oil isn’t just a trading vehicle.

People need to put it in their cars to drive and they need to use it to fuel industry. You know, the, the fact that this is possible in gold and silver is because that nobody needs the physical stuff. But if we take this down a level, the way I understand it is like it’s the same as a, same thing as a fractional reserve scheme in your bank, right? Your bank is fine as long as everybody stays within the banking system. And each bank, you know, you transfer an electronic payment of dollars from one bank to another bank and that bank transfers it to another one and they’re all within the same system, right? And the minute somebody tries to say, or too many people say, you know, I want my physical dollars, I want to, I want to hold a wad of cash in my hand and I want this stuff because I don’t trust what the banks are doing, then the entire system falls apart.

But it’s the same thing, just one level up between gold and the dollar instead of between, you know, deposits and physical paper dollars. But it’s the same, it’s the same idea. Well, like what you just said, Ralphie, it’s happening right now. What’s happening in the last couple months is that people or entities, big entities, are actually standing for physical delivery at both the LBMA and the Comax for both gold and silver. And it’s breaking the lbma, right, so breaking the lbma. Yeah, so it’s happening right now. Another thing, another way you could call this is instead of just a regular bank run where cus.

Where, where depositors go to their banks and they’re in a line and they say, I want to withdraw my cash. Instead of that happening, it’s big players coming to the central banks or whoever holds the gold supplies and saying, I want, I want this. You know, I want my money out of that vault or out of that bank. Because what is a bank? A bank is a place where you vault money. That’s what a bank is. And the question is, what is the money? Is the money the dollar, The. The derivative of the money is the dollar.

So you have all these little derivative banks, but the real banks with the real money are the central banks. And once you, Once you force a run on them, you take down the entire system. Okay, so you know what’s crazy that’s happening, right? Right now? In the last couple months, the US imported over 2,000 metric tons of physical gold. Yeah. Why? Why is this hap. Why is this happening? Why, why should I. I’ve. I’ve asked this to many people. I haven’t gotten like, a good, satisfying answer, but, like, I understand the mechanics of why it happens.

I understand, okay, gold is cheaper in London, more expensive in New York. Therefore, you, you buy, you buy the gold in London, you sell it in New York, and then you transfer the physical. I get that, and you. And then you pocket the difference. But why should it be? Why is it that now gold is more expensive in New York than it is in London? Why is that happening? It’s actually reversed, Ralphie. What happened is that the banksters, right, the bullying banks, they were shorting the. Like I said, they were shorting the commax and they were long, the lbma, right? So that works as long as the carmax gold and silver prices are lower than the LBMA price.

Right? Now it’s the reverse. It’s the opposite. So they’re losing money. Right? And what is crazy, I know this because I’m like, you know, reading what a lot of the banksters write. And I talk to a lot of people. A lot of people feed me information too, right? But what’s happening is that the buyers at the comex, they’re refusing cash settlement because in the past, all this can be settled by EFP cash settlement. But right now, what’s happening is a lot of these buyers are saying, no, we want the physical exactly like you said, it’s like a run on physical at the comex.

And because of that, all these EFP pairs, like they’re shorting the comics long. The LBMA that has to unwind by, you know, physical delivery, right? That’s why, you see, they’re draining the lbma. But the problem is that, let’s say they run out of physical, like they’re not our physical yet, because silver, you know, they’re shipping like a lot of silver from LBMA to the, to the comics, like around 500 to maybe a thousand metric tons per month. I think last month was a thousand. It was a thousand. The, the U.S. actually, like, you know, fruit ecomics import around 2,000, almost 2,000 metric tons of physical silver per month in the last couple months from all over the world.

And the LBMA is half of that, so around a thousand. So it’s a lot. Right? So it’s, it’s not like they don’t have any ship out. They’re shipping it out to the, from the LBMA to the comic. So that’s actually, that’s why you see the gold and silver price, actually, it’s not shooting up as much. It’s just going kind of flat right now. Okay, because they are able to get, they are able to get physical, you see, to deliver, to unwind the contracts. Right? But when you see like today when it shoots up, what’s happening? So maybe somebody.

So I’m, I’m sharing, I’m sharing the screen here, I’m sharing the screen here of the LBMA. LBMA supplies of gold and silver since 2016. Right. So what you’re saying. I’ve been, I’ve been tracking this also, so that, what, what seems dire here is the silver situation. Gold has been going down a little bit. And from the LBMA to what is this is in December 2020. I have to clarify this, right? They actually have zero free float of gold. 00. Because if it’s T + 60, T + 90, they have none. Okay? Like that number you see there is allocated, which means they can’t touch it.

Okay? It’s the same with silver. I think they’re showing like 22,000 metric tons. They don’t have 20. 22. 2,000 metric tons. Okay, okay. The bankster guys are saying they have around 7,700. And your followers, and my followers, they did the research, they subtracted all the ETF silver, and they found that they only have around 5,500 metric tons of free floats right now. Are we talking about gold or silver? What are we talking about? Silver. Silver is 500. The 5,500 metric tons of free float. Gold is 00. Okay? Because they can’t, like, you know, it’s T plus 60, T plus 90.

That, that means they have none. Okay, so, so then where, where are they getting the gold from that they’re delivering then central bank backstop. Okay. Central banks are lending them that physical gold. Like you know, unfortunate central banks like Argentina, Venezuela, any of these small countries. Yeah, sure. I mean they all, they all, you know, loan money from the IMF or Western banks and then they, you know, Argentina shipped the gold to the bank of England. Bank of England is a, is a, is a LBNB mount. So I’m just, this is all speculation. But what’s not speculation is that central banks are letting LBMA sellers borrow their gold.

That’s for real because Bloomberg reported it, Reuters reported it, the banksters themselves came out and the guy said it today. I don’t want to name any names, but it’s real time, it’s happening. Okay, I’m looking at gold reserves in Argentina. I don’t trust these numbers. I’m just telling you what I’m seeing that the goal. I’m on trading economics right now and I’m looking at the Argentina gold reserves and they’re at 60 tons. They’ve been at 60 tons since 20, 2012 and they haven’t moved much. Is it, are you saying that these 60 tons are being loaned out and rehypothecated or something? Are you saying this is a complete lie and this is, this is worthless information? First of all, do they only have 60 tons? You don’t know that.

I don’t know that because a lot of people, a lot of experts who are, you know, higher pay grade than both me and you are saying that a lot of these central banks underreport not only China, but a lot of central banks under record their physical gold holdings. So let’s say they have more. They have 100. Number two is, is it at the bank of England? Yeah, I mean it’s all for the news. They shipped it out. Number three is, is it rehypothecated? Who knows? Right? They’re not going to tell you that, Ralphie. That’s like top secret information between the Central bank of Argentina and the bank of England.

Okay, but then are they borrowing Central Banko? Yes. That I can say is not a, you know, speculation because we have Reuters reporting it, we have the Bloomberg reporting it, we have banksters saying it every other day. So, so that’s real. Right? So John, see a question. They are borrowing central bank gold. That’s the backstop. That’s why they’re able to ship that stuff out. They shipped out 70, 70 tons of gold from the, from the, you can see it on your charts, on your. Sorry. On the LBMA homepage. Right. If you take the previous month’s number and last month’s number is 70 tons.

So they shipped out 70 tons, probably to the comments. Okay, now is that all that the LBME shipped out to the comics? Probably not. Why? Because, like I said, the LBM is otc. What that means is that the LBMA vouchs only account for a portion of the stuff they should ship out. They can ship out off site. Like, people remind me this all the time. They can ship out stuff out that doesn’t go through that don’t go through the LBNB vault. And we will never know about that because that’s not part of the LBMA vault numbers, you see.

Right. But back to silver. This is exciting. Right? You were looking at that number. So your followers. My followers, they did the calculation. 5,200 metric tons. That’s the free float, right? Now think about that for a second. That’s crazy, because the US is importing around 2,000 metric tons per month and 1,000 from. From the LBMA alone. Well, then I’m gonna keep talking. I’m gonna try to. I’m gonna try to get up that chart. Yeah. Okay. So anyway, so if they’re importing that much from the lbma, that’s like. That’s only going to last four or five months, essentially.

Four or five months is not a long time. And then they’ll be dry. Right. Once they’re dry, there’s no central bank backstop for silver at the lbma, Right. They don’t have. Yeah. Nobody else have any silver. That’s the problem. I mean, let’s put it this way, right? You know, how much, Sophie, do you think the she and SGE combined have at any given time? Between 2,000 to 3,000 metric tons. Okay. Any given time. If they only have 5,000. Let’s say around 5,000 right now at the LBMA free float, and they’re down to below 1,000 in four months.

That’s really dangerous because nobody else have any silver to give them. Right. Okay, wait, hold on. I want to share the screen here. And, And. And so you can see this chart that I’m looking at. I’m. I’m seeing your beautiful face. I don’t see a chart. Hold on, hold on. You just have your beautiful. I am. I am beautiful. Don’t focus on the beauty too much. It’ll. It’ll turn you to stone. So you’re an Adonis. You’ve got beautiful features, lovely skin. You’re an prime of your life here. You should be swinging. So this is, this is from Gold Charts R Us here.

And these are monthly bars. So you see here, this is. This, this where my. The magnifying glass is hovering over. This is January 2025. Sorry, this is December 2024. January 2025, February. And this is March. So this is the total supply. So we have in January. Sorry. In December 2024 we have about 320 million ounces. And then about 370 million and then 410 million. So it’s about. It’s about like 40, 40 million ounces a month. Does that, do those numbers work out? Yeah, I think I. I was talking to someone. I mean people would track the Comax vault numbers.

I think you guys have around 13. Because I do it by measure times. Why? Because London does it by tons. Shanghai China does it by metric tons. So like when I do everything by metric tons it just kind of put things into context. Okay, right. So the US the last time I checked have 13,000 metric tons. Here. Here’s. Here’s a chart with metric tons. Here we go. Yeah, so. So Here it says 2025 around the turn of the year. Right here we’re about 9,500 metric tons. Yeah, now it’s 13,000. Now it’s 13,000 because that’s the last 14.

14,312 I have here. So. So even higher. 9,500 to 30. So let’s just say. Let’s just say 14, 500 now. So that’s about 5,000 metric tons. Yeah, the numbers work at. Yeah, that’s about right. See so like my numbers are actually right. So that’s a lot of silver that the. That the US is sitting on. Okay, so I guess at this stage of the game, Rafi, you gotta ask yourself this question. In the past when the registered and the eligible vaults at the Comax have that much silver, that shot usually reverses eventually because like they will just let like they registered, you know that like for example when people get a warrant, they put the stuff, they put the silver or gold into the register vault.

Doesn’t mean that they withdraw it. Withdraw is a different thing. Yeah, I know. I’ve been through it. I’ve been through it. Right? Yeah. I stood for delivery on a con on the silver contract. I got the contract. I was not able to load out. I know there’s. You got a warrant. I got the warrant, I couldn’t load it out. But guess what? Listen to what I’m going to tell you next. It’s going to blow your Mind. Okay, what the chart is telling you, the chart you just gave me from Nick, from Gold Rust or whatever. What it’s telling us is that this time the people who holding warrants, they are not allowing that physical silver once imported into the US to recirculate within comics.

Isn’t that wild? Why is that? Why is that? That’s not regular people. I mean, I like somebody else smarter than me. Okay. Just recently looked at the managed money. I know you guys could do cot, you know, analysis all the time, right? Right. Yeah. Even with all the managed money guys, because those are the most finicky buyers, right? You know, the, the price drops. They get rinsed every single time forever since the beginning of time. Even if you account for all their positions, it doesn’t account for the enormous physical silver that is in the comics vaults right now.

All right. Okay, like, like they know I’m not talking about. Because of course, paper is more than physical. Right. I’m talking about the normal, their normal physical allocation percentage. Right. If you take that into account. Right. Like, I mean, it’s just somehow somebody is sitting on a crap load of silver at the comex and they’re not letting the silver recirculate at the comics. You know this, you know this game because you were part of it. You played it. Somebody’s holding on to that warrant and say, f you, I’m holding on to it. I’m not recirculating it.

Why is that? Right? Well, I mean, it was, it was because, I mean, the technical answer is that I was, I was using a brokerage that didn’t allow loading out. Theoretically, if I had, you know, over $1 million in capital, which I don’t have, then I could have applied for a brokerage that would have allowed me to load out. And I have heard of people do it. I don’t think it’s absolutely impossible. I just think it’s very difficult for someone of my means, which is less than a million dollars, to actually pull it off. Yeah, but these are bullion banks.

I mean, I look at the issues and stocks report, which is basically just the Carmax delivery reports, okay. And all it tells you are the clearing firms that handle the selling and the buying. And the clearing firms are essentially just, they’re just Boolean banks, HSBC, JP Morgan, bank of America, etc. Etc. Etc. You don’t, you don’t see the actual customers. That’s confidential information. But you see the house and you know, customer account destination on the, on the clearing firm name. Okay. I mean, even let’s say I, I, I’m naive enough to believe that all the customers are non bullying banks.

You see, as you probably know Ralphie, I’m not again I’m just hypothetical situation. I’m not accusing anybody of anything. Right, okay. Going to put, put that disclaimer out there. Let’s just say, you know, a bank wants to conceal is involvement in purchasing something they can surely use a special vers Special purpose vehicle spv. Right, right. That’s what the Fed uses. They copied it from the commercial banks in the U.S. okay. That’s where they took the idea from. So what I’m trying to say is that let’s take that out the customer accounts and just look at the house accounts and even that is humongous.

So why would the bullion banks be sitting on that much physical gold and silver and not be willing to put it back into circulation to make money like they always did in the past? Why do you think? I think for gold, I think the, the importing that goes on behalf of the U.S. government. Okay. It’s that simple. I think for silver because the inside, this is what I think by the way. Okay. So it’s not fact, it’s my analysis based on all the facts that I’ve seen for silver. I think like the Tantalian effect. They, they are, they’re the closest to the power source to the, to the Federal Reserve and the, and the US treasury.

So they know what’s going on. So they are thinking if gold is going up, silver is going to go up eventually. I’m talking about the U. S Bullion banks. Right. So, Right. So they’re probably buying silver for themselves, their clients and the industrial players. Okay. That’s what I think is happening with silver. Yeah. So yeah, yeah. So I just want, I want to interject with one thought here. And then I wanted to move on to PSLV. I know you have about 10, 15 minutes left and I wanted your thoughts on this. So first of all we should, we should all be aware that when the London gold pool fell.

Right. And that was, that was a conglomerate of banks just like we have a conglomerate of banks now that were conspiring basically to, to keep the gold price stable. Right. When Bretton woods was starting to fall apart in the late 60s and it ultimately completely fell apart in 1971 as we know, in 1968 when the, when the, when the London gold pool just basically gave up and broke apart. That, that was the, on the, I forgot what month it was, but it was 1968. And the gold to silver ratio hit 15 to 1 again. It hit, it hit 15 to 1 in 1919, after World War I.

It hit 15 to 1 in 1980. Sorry, in 1968. And then in 1980, those are the three times. So we do know historically at the last time a gold conglomerate or a gold cartel broke up, that was when silver hit 15 to 1. And I think it’s going to happen again. And I think they know it’s going to happen again. So if you’re right, they could be stacking silver for this reason, which is why I stack silver. Which is why when it hits 15 to 1, I’m going to sell or I’m going to buy whatever I can.

Yep, I think that’s it. Ralphie, you nailed it. Right? So that’s what I’m waiting for. And, and unlike, unlike a stock price or, you know, Nvidia or Tesl or whatever tech stock it is, which doesn’t have, doesn’t have a ceiling, there’s no ultimate target for what these things can do. The, the gold to silver ratio does have a ceiling, and it’s not an absolute ceiling. I’m not saying it’s impossible to go even lower, but historically, 15 to 1 is as high as it ever goes. So I, I do have, you know, a concrete objective measure for where this game ends.

And it ends there. Yep. So you put out, you put out a really interesting tweet and I really don’t understand how PSLV works. I’m just going to read it and there’s two key questions I have that I don’t understand. So you say here in this tweet, the banks just can’t borrow PSLV shares to redeem for physical like SLV. That’s how PSLV works. 2. You say the bank. The banks are shorted PSLV to prevent PSLE from buying new physical silver for its inventory. How does it work? PSLV only adds new physical silver when the net buying of its shares are positive.

Shorting simply means borrowing PSLV shares from others to sell. Now then, the more selling pressure now means that even if there are more buyers of PSLV shares now, the net buying is probably flat or negative. So my, my basic question is, I don’t understand what net buying and net selling means because buying volume and selling volume always has to equal out. What, what does it mean, net buying and net selling? You can’t have more selling than buying. You can’t have more buying than selling. So what are we talking about? Well, Basically. Okay, first of all, I just want to say PSLV right now is sitting on 178 million troy ounces of silver, which is around 5,500 metric tons.

Okay. And it’s custodian by the Royal Mint of Canada. Okay. The rmc. And to answer your question, first of all, we got to understand what the net asset value of PSLV is. So net asset value of pslv, it essentially tracks the spot price of silver minus the custodial cost, et cetera, because there’s a cost to run a etf, and that’s the NAV of tslv. Okay. So my explanation for the on X is actually really simplified. It’s not exactly how it works, because it works like the pslv. The, the way it asks new silver into the. Into the ETF revolves around the NAV and the market price of pslv.

Okay, okay. So what happens is, let’s say the market price of PSLV is trading at a premium compared to the NAV or pslv. The NAV is just whatever the silver price is divided by the number of shares, right? Like the total silver that you hold. All right, so I’m looking at. I’m looking at a chart here of Sprott PSLV Fund versus NAV Premium. I don’t quite understand. Corrective. Correct. That’s very good. So I’m telling. I’m explaining now. Right. Okay. So basically, the navigation, like I said, it’s just spot price minus the custodial fees. And then divide by number of shares.

But just go online and find the exact equation, because I’m telling you this on the fly. It’s not going to be exact, but there’s an exact equation you can find on Sprout. It’ll allow you to calculate nav. Okay, but it’s based on the spot price of silver. The market price of PSLV is just supply and demand, like you said. Get it? Like. So if you have a whole bunch of people shorting, which is selling and not a lot of people buying, then it’s going to. The PSLV market price might be in a discount. Not only that, it’s not going to have a premium.

It might be in a discount. Okay. Of the nad, Right. We see that it is at a discount. Now it’s at a discount of 1.63%. It’s been that way since 2021. Crazy. So let me tell you this. When. When it is at a discount. Ralphie, by the rules of pslv, on this Prospectus, it cannot create new shares and it cannot, therefore I cannot buy new silver box. Okay, okay. Because like the tslv, the way it works is when it is trading on a premium, okay. I’m talking about the market price versus the navigation. Right? Right. Yeah.

So if we’re looking at this chart over here, right? If we’re above the zero line, then it has to add new bars if we’re below. Exactly, exactly. So it’s above, so it has to add new bars. Right. How does it do that? It does this thing called the ATM which is just all it means is at the market. That’s all it means. Okay, at the market. New share offering. So it just does like print out new shares and then once it has those new shares, it’ll go out and buy the equivalent NAV amount of physical silver bars.

Simple. That’s it. That’s all it does. So when you’re sitting on a lot of shores on pslv, it cannot by definition buy new bars. Right. So a lot of people say why wouldn’t the advancers just do what they do with SLV and, and gld, right? Borrow shares of PSLV and redeem physical silver from pslv. It cannot do that because on the prospectus of PSLV it says that unless you’re holding unencumbered shares, which means there are no claims. Not borrowed. Right. Non borrowed. Well, by definition unencumbered is unborrowed, not borrowed. So you cannot borrow. That’s it. So if you are a bullion bank or, or a authorized participant, you have to own a crap load or PSLV because they do it in 10,000.

The minimum withdrawal amount is 10,000 ounces which is 10 lbma 1,000 ounce bars. Right? Same same at the CLX. 1,000 ounce bars or two contracts worth. About two contracts. Two contracts. Okay, so yeah, like guess what? Those APS are sitting on a whole bunch of PSLV shares. They own a lot of PSLV first, like somebody disclosed that. So basically because they can’t borrow shares to use PSLV as a physical silver piggy bank, they are just sitting on some shores so that it’s perpetually at a slight discount. 1% like you said, is like you have to chart perfect looks.

Awesome. I mean not awesome in the sense that it’s suppressing. Suppressing like pslv, but awesome in the sense that we actually see it right in the graph. Right. It’s perpetually 1% in discount, therefore it cannot add any new bars. Simple as that. Okay. Wait, do you, do you know if, if PSLV trades at a premium, do they have to. Do they have to get rid of bars? No, if they trade at the premium, then they add new boss. Rofi, you’re talking about at the disc. Sorry. Sorry. Yeah. If they trade. No, no, no, no. If they trade a deep discount, they do not sell any boss.

Okay, on the prospectus. Yes. Got it. All right, so the banks are just sitting on enough. Not, Not a lot, because, like, I mean, I think it’s less than 10% of all total outstanding shares. Their, Their short position, but it’s just enough to push it below, like, you know, that what, like have that 1% discount and that’s enough to, to stop it from adding new. New boss. So some people, you know, they’re talking on X, they’re saying, why not just all of us, we call our broker and tell them not to lend out our PSLV shares because, by the way, I also own PSLV myself.

So do I. I do too. So. So, you know, call my broker and say, hey, don’t, you know, I don’t want anybody borrowing my shares. So supposedly that will limit the, the short position on pslv. But like, like we just discussed, it doesn’t take a lot to put it in negative territory, so I don’t know how effective that would be. So if somebody asked me now, like, what do they buy? I think at the end of the, at the end of the day, I’m sure you agree Ralphie is probably physical silver. Yeah. I mean, that’s probably number one.

Yeah. I wouldn’t worry too much about being the people that participate in the process that ends the entire system. I mean, look, Silver Squeeze one was very impressive and I participated in it. I’m proud of it. But like, this, this system is, Is so gargantuan and unwieldy that it’s gonna fall by itself anyway. And, and from what I’ve heard from you, if the, if the silver keeps flowing from the LBMA to New York, then we’re about five, four, five, six months away, whatever it is, from, from erasing the rest of the float, which is about 5,500 tons.

And we saw those charts. The numbers are. Seem to be correct. So I’m, I’m looking at. While you’re looking at the, the, the bullion wholesale stuff, I’m looking at the plumbing deep down in the recesses of the, the dollar monetary system. And I’m seeing that in four, in. In. In less than that or maybe around four to five months. Also, the. The amount of repos that get traded between American banks every night is going to exceed the amount of bankruptcies that are available. So that’s going to. These things could happen at the same time. They might be connected, for all I know, in some kind of causal way that I don’t quite understand.

But I think. I think the community, you know, the. The silver apes and the gold bugs, whatever you want to call us, I think we’re starting to hone in all together and seeing the same thing like this, whatever this is, whatever is going on, and none of us see the whole picture. Whatever is going on. I. I think there’s just. There’s just months left. There’s no more than that. I agree, Ralphie. I mean, like, I’m. You know, the stuff you talk about, I. I looked at it a little bit, but it sounds like you know a lot more than me about the, like, actual banking system side.

But this LBMA comax thing, like, that’s what I, you know, that’s what I basically lived and breathed in the last four months. Yeah. So I know that your focus. I have my focus, but we’re looking at the same animal. That’s clear. Right? Okay. Yeah. So, yeah. Yeah, I think. I think we, like, something has got to give at some point and. And it’s just abnormal. Like I said, these guys, they’re sitting on these warrants. It’s not recirculating from all the evidence that I’m seeing. It’s not. It never really happened like this before in the past. They always eventually reversed this.

Right. All right. It’s not happening this time. So that’s it. Follow him on Twitter @King Kong9888. It’s very much worth a follow. Thanks for coming on. I really appreciate it. Okay. Thank you, Ralphie. It was a pleasure. Thank you.
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