Rafi Farber is an investor, economist, author, and securities analyst. Rafi is an expert in the gold and silver markets and argues that both gold and silver are money itself. His investing philosophy includes gold, silver, and various investment vehicles.

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Transcript

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be prepared for it to happen this year
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have enough gold and silver it wherever
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you need it to survive the immediate
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aftermath of a dollar collapse it could
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happen any time it could definitely
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happen this year I focus on the
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monetary philosophical aspect of these
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markets I mean I understand investment
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demand I understand industrial demand
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but monetary demand is a completely
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different thing which we haven’t seen
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yet I bifurcate between investment
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demand and monetary demand because
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investment demand is what silver
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stackers do it’s like we stack silver
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why because we know that something big
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is going to happen and whether we
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realize it or not what that big thing is
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is that an explosion of actual monetary
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demand and what is monetary Demand
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versus investment demand investment
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demand is when you when you stack silver
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in anticipation of monetary demand
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because you expect the monetary system
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to break down and monetary demand is
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different from industrial demand because
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everyone demands a money everyone needs
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money for something otherwise there is
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no division of labor so that’s a much
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more fundamental thing when we look at
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the Futures markets of silver priced
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whether it’s on the lbma or the Comax or
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whatever the contract is what’s the
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price of what we’re looking at we’re
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looking at the price of industrial
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demand and some investment demand but
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we’re not looking at the price of
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monetary demand because monetary demand
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is when everybody wants it to exchange
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against other goods and when that
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happens that’s when that’s when gold to
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Silver Falls to like 15 to 1 as it does
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in every monetary panic in history
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that’s what always happens why because
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most people can’t afford gold so they go
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to Silver which is already starting to
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happen but it has a lot more more to
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fall it fell to 15 to 1 in 1918 and fell
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to 15-1 in 1980 it’s going to fall to 15
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to 1 again and that’s when we are in a
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full-blown monetary crisis what I keep
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saying everyone sees prices going up
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everywhere in the world it’s not a Goods
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problem it’s a money problem it’s a
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money problem because we see basic
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necessities going up faster than any
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other prices so everyone’s focused on
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you know the broad inflation numbers
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they don’t matter they do not matter
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because in any hyperinflationary economy
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you have basic necessities going up
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really really fast and luxury items
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either not going up at all or going up
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much slower than basic necessities so in
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this kind of environment we’re seeing
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like the the developings of a financial
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crisis already coming into fruition
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we’re seeing like what is it but the
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tide comes in and you realize who’s
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naked so the Tide’s starting to come in
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and the people on the edges are you know
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they’re already naked whether it’s um
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the UK pension plans or FTX you know
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some kind of crypto exchange I mean
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these things are going to start
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happening week in week out now and
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faster and faster and eventually the
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central banks are going to have to
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reverse and when they reverse in the
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environment of inflation whether it’s
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eight percent seven percent six percent
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five percent they’re gonna reverse and
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then everyone’s going to attack the
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precious metals because that’s what
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humans do that’s what’s going to happen
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exactly when the central banks break and
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start printing again I don’t know but
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they’re going to because there’s going
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to be under humongous pressure to do so so
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when that happens I think Silver gets
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drained from all the centralized
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stockpiles comex lbma whatever silver
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fund happens to be holding silver
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unallocated in the Perth Mint or
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Switzerland or whatever it’s all the
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same stuff it’s just different piles
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they’re all going to be attacked at the
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same time and you can use any of them as
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a proxy for any of the other ones so
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it’s the same game over and over again
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when they run out they run out and we
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win because we’re stacking and we’re not
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selling
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um well we saw it once in July of 2020
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when um I think the the number of
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deliveries was higher than the amount of
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registered silver available and so I
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think JP Morgan rushed like it was like
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45 million ounces from its eligible pile
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into the registered I don’t know exactly
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why they did that because I think
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delivers going into the comics not out
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at that time but it was um at least on
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net so it was confusing what was
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happening but at least we see the
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mechanism of what would happen if
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registered supplies go to zero you’d see
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some bank or other with a whole bunch of
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eligible supplies put them into
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registered category because it’s
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happened before
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um but again the rule changes in the
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comics in 1980 they did them because
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they could the situation there was um we
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were already basically back on a gold
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and silver standard in 1980 at least in
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terms of the fed’s balance sheet because
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the valuation of gold at the time was
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enough to back all of the fed’s
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liabilities on its balance sheet by over
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100 that is the definition of a gold
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standard and the gold silver ratio is
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about 15 to 1 which is the general gold
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silver standard that we’ve had for
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hundreds of years before that so 1980
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brought us back in a gold and silver
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standard so since we were already there
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the comics had the ability to mess
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around with the rules but if they do
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that in this environment where the FED
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has absolutely no ability to raise
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interest rates anywhere near 20 forget
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it it’s impossible if they change the
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rules in this environment then all the
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demand would just flood into the
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physical markets and everyone would just
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ignore the comics and who cares what
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they say it doesn’t matter they won’t
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have the power because instead of
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dollars trading for paper silver on a
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Futures exchange you’d just have that
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Futures exchange ignored completely and
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physical silver would be exchanged for
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goods on some kind of decentralized
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panic you know the segmented Market
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where people would be trading physical
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coins or some kind of reliable backing
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of a certificate for them for actual
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goods and services which would be the
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end game that we’re all looking at where
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gold and silver become money again
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literally
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we’ve never seen in the history of the
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world a currency backed by a basket of
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Commodities that’s like a it’s a nice if
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people try to spin these uh intellectual
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um theories on money that we’ve never
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seen before I don’t think are possible
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look gold and silver are money baskets
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of Commodities are not money every time
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that some country comes up with uh some
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kind of scheme to use whether it’s a
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real estate or tobacco or whatever as
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money it doesn’t last long gold and
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silver are money and that’s it and as
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for the formation of bricks into some
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kind of a new currency it would have to
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be gold and silver backed in order to
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supplant the dollar which is what
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they’re gonna have to do but if they do
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that they’re going to have to become
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fiscally responsible you know Russia has
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the ability to do that Brazil and uh you
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know India I don’t see any fiscal
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responsibility in those countries so
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much uh maybe they can change I don’t
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see a Changing of the Guard by brics
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countries uniting and becoming
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responsible and changing the world I see
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the market going one way and then bricks
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following the market by inertia and
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force and then taking credit for it so
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the public is going to lead the market
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public in the streets trying to buy food
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in whatever City they are in the world
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when it comes down to it they’re backed
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by the dollar right now so when that
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falls they’re going to have to go to
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Gold and Silver and then the bricks will
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say okay we’re going to gold and silver
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because that’s where the Market’s going
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and they have no choice they’re not
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going to create a market they’re going
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to follow the public and then take
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credit for it look in terms of timing
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questions this is what I always say be
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prepared for it to happen this year have
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enough gold and silver it wherever you
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need it to survive the immediate
6:53
aftermath of a dollar collapse it could
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happen any time it could definitely
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happen this year is it definitely going
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to happen this year nothing is definite
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and there have been a lot of people in
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this industry a lot longer than I have
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been who’ve been in it for 30 40 years
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and haven’t seen the collapse that we’ve
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all been looking at all been waiting for
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but that said look all inflationary
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systems are exponential exponential all
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of them and they all head in One
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Direction Only One Direction they just
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go up and up and up until they go
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vertical and we’re on the vertical stick
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of that I mean they could theoretically
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stop and then just watch the pyramid
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fall and watch all their Banker friends
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just go bankrupt it’s theoretically
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possible they would do that they’re too
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greedy and stupid to do that they’re not
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going to do that when you’re up against
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evil you can just be sure that evil is
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going to continue until it’s a logical
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conclusion which is self-annihilation
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any kind of evil does that so that’s
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what’s going to happen here and right
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now the FED is trying to come off the
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exponential curve by stopping the
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printing and we see the money supply
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falling that’s going to last until it
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doesn’t anymore every time that’s
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happened they’ve had to reverse is it
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going to change this time is it going to
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be the first time in history of the FED
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doesn’t have to reverse after stopping
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printing no it’s not gonna be the first
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time in history everything that’s
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happened before is going to happen again
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just on supercharge and we’re just
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waiting for that turn and uh exactly
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when it’s gonna happen we don’t know but
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it’s gonna happen soon