➡ The article discusses the unusual activity in the gold market, with a significant amount of gold being moved from London to New York. This is due to the belief that physical gold is becoming more valuable, leading to increased demand. There are concerns about the reliability of the London Bullion Market Association (LBMA) as it is highly leveraged and much of its gold is in paper form. The article suggests that this could be a sign of people realizing the importance of owning physical gold, especially in uncertain times.
➡ The text discusses the importance of gold in the economy, arguing that despite its use in jewelry, its real value lies in its stability and slow price change. It suggests that gold is still a crucial part of the monetary system, even though it’s not always recognized as such. The text also mentions a possible shortage in the wholesale gold market and speculates about a future revaluation of the system. Lastly, it touches on political issues and the influence of certain groups on senators.
➡ The discussion revolves around a confirmation hearing that is seen as a public spectacle rather than a genuine process. The speaker also discusses the future of gold and silver prices, suggesting they will rise and the purchasing power for stackers will improve. They predict that gold will be distributed globally, with central banks around the world holding a significant amount. The conversation ends with a critique of current political figures and a hope for a better future.

It just seems like the people in charge of the system, at least the front facing people, are just so monumentally dumb. Who, who actually understands how the world functions? Is there somebody who understands within the system that gold is actually important? I mean, I’m thinking maybe Jamie Dimon or maybe it’s just like these people that are in a hut petting ca really is the main question that Fiat enthusiasts cannot answer. If gold doesn’t matter, why is it worth anything? Still just. Yeah. Hey guys, Raf here from the endgame investor and I got Monaco 64 on the line because there’s a lot of weird things going on in the gold market.

If something is going on a la 2020, when we saw gold flood into the COMEX all of a sudden, I think it was something like close to 40 million ounces in a few. In two or three months. We’re not seeing that extreme of a move of gold from London into New York right now, but we are seeing the second most extreme move ever. And now there’s these rumors going around that it might be tariffs. I don’t think it’s, it’s tariffs because I don’t think Trump said he was going to tariff commodities. And the second reason I don’t think it’s tariffs is because there was already like twice as much physical gold in New York before this surge started as there was before 2020.

And why would, why would jewelers need to transfer gold from London to New York? All these things I don’t understand. So what I wanted to ask Mario is I understand the mechanism of why gold goes from London into New York. For some reason, gold gets cheaper in London and physical gold gets more expensive in New York. So you buy the spot contract in London, you sell the futures contract in New York, you profit from the spread and then you move the gold now. But why, why is that happening now? And we. I heard from you that there, and I heard from other people also that there’s.

That the bank of England is essentially Rene. Not reneging completely, but delaying delivery. The sort of thing that we saw in 2020, if you wanted to order a whole bunch of coins from a retailer, they would say, oh, delivery in like two months or something because they didn’t have supply. So it’s the same thing going on now, but it’s. Except instead of like let’s say shift gold or Miles Franklin saying two months till derivative, it’s the bank of England saying it. What is going on? Can you explain this? Well, I think one of the reasons that is being given is because of the tariffs.

And even though you said Trump hasn’t said anything about commodities, but people are still concerned. And this story that came out yesterday about the bank of England, I think it’s serious because spot is usually two to three days delivery of the physical, maybe one more day or so, and now it’s taking four to eight weeks. And the other thing that’s going on is that a lot of the gold that’s held at the bank of England is held for the LBMA members. And I was reading David Jensen, who does really good work on the lbma, and he said a lot of gold in the LBMA is, they call it.

The float of the LBMA is actually held for allocated, you know, allocated funds, people who want to claim the gold. It’s not, not unallocated, and also for the ETFs, like the GLD and others. So, for example, he, he was saying in his latest report that the LBMA says they, they have 279 million ounces of gold in the London vaults. But this float, if you take away the ETFs held at the bank of England and also the. The gold held for, you know, allocated accounts, this 279 million becomes only 36 million, which I think it shows how leveraged the LBMA market is in London.

That a lot of, even the spot contract, a lot of it is like paper. And I think since the election, as the article in the FT yesterday said, since the Trump election in November, there’s been a flow of about 400 tons out of the bank of England of real physical gold. And I think they weren’t expecting that, Rafi. And so does that, does that mean actual blocks? Actual, yeah, yeah. Are moving from London to New York? Yeah, yeah. So 400 titles to them, but the actual stuff. Yeah, yeah, yeah. Because if it was just the title, then they wouldn’t have the problem of delivery.

And I think you, if you remember well, this, after the Trump win, gold dropped like, down like 150 bucks. It dropped to 2550. And I think knowing of what’s happened now through this article, I think the bullion banks and the central banks, they probably were panicking and they just smacked the gold, you know, the paper price down to try to kind of try to stop this flow, people wanting physical gold. But I don’t think it’s worked. And even if they don’t come up with tariffs, I think this shows that the float in the LBMA is a lot less than most people think.

A lot of it is just paper and credit and that’s for the spot contract, according to David Jensen. And I think, even if we don’t see, as I said, these tariffs come up, I think, at least for us, that follow gold very closely. And I, I’ve been looking into this for over 20 years. The people who woke me up about this were people like Bill Murphy from GATA and others. They were saying, like, 25 years ago that the LBMA was highly leveraged, that a lot of it was paper. And right now, it’s still not really highly divulged for the bigger investment community.

People don’t really understand. I saw that Andrew Bailey, the governor of the bank of England, he testified yesterday in front of a committee in Parliament. And someone asked me, asked him about this flow of gold to New York, and he was very dismissive. He said, well, gold is, you know, if this was a hundred years ago, yes, it would be really serious, but gold’s not important anymore. It doesn’t matter. And unfortunately, the MP didn’t ask another question, like, if gold is not that important, how. How come you’re so involved in gold? So I think, yeah, this could be the little snowflake that triggers the avalanche.

And the avalanche is like the, the public in investment class waking up to the fact that a lot of the activity in gold is not real gold. It’s paper. And so let me. So let me ask you this. What. Why would someone, I mean, okay, let’s assume it’s not a jeweler, that they need blocks of gold to make necklaces or something. I don’t think that’s what’s going on here. Why would someone interested in monetary gold, why would they be interested in moving it from. Why is there a demand to move from London to New York now? And why would they do that? I think it’s because some people are realizing that you need to have the physical gold.

I think a lot of hedge funds and a lot of big investors, if they want to have an exposure to gold, they just buy a spot contract with the bank, like say, JP Morgan or they buy an etf. And I think they’re concerned. They want to have their own storage. They want to be their own central bank. And I think the other thing that is affecting gold in London and New York is the fact that the Chinese are buying also a lot of gold, not just publicly. We. We’ve seen since November they announced that they’re buying again.

They’d stop officially in May, but yeah, Neuenhaus has done a lot of research about the customs numbers in London and Shanghai that A lot of gold is flowing from London, physical gold, to China. So, yeah, I think that’s the other reason why. And I think people are concerned about the political situation in the US Domestically, even though I think what’s happened with the new administration, a lot of it is good, but there’s a lot of opposition as well. So things are very uncertain in the US So people want to have physical and also. Let me just sharpen the question.

I’m sorry, I. I want to interrupt your train of thought. I’m just. This is occurring to me. It’s important. So. Okay, so you’re saying that. That big actors, hedge funds interested or whoever, they are interested in monetary gold. They, they’re so interested in it that they’re moving it from London to New York. Why aren’t, why are the people in London selling them this gold if we’re in such a, an uncertain period and they’re giving up on it, why. Because they want that, why are they selling it to New York? Why is there a discount in London? Well, because London is the biggest gold bullion market in the world, so people come here to buy and sell.

So there’s people buying in London too, but I guess there’s more interest in buying from London. And yeah, maybe the people in London haven’t woken up to the, the fact that it’s so important to hold gold. I’m not sure. Or maybe in the US there isn’t enough gold either for. So they have to come to London. That, you know, that’s the only thing I can think of that really is the ultimate question for anyone who believes in fiat and believes that the money. I don’t believe that the monetary system is fiat. I think it’s just a derivative of gold.

It still is, but, you know, we’re clear on that. But that, that really is the main question that Fiat enthusiasts cannot answer. If gold doesn’t matter, why is it worth anything? Still just. Yeah, it shouldn’t matter. You don’t do it. You. Okay, you do stuff with it. You make jewelry. And that’s another, another thing. I always, it always annoyed me and I never really tried to answer the question, just straight out. And I want to make a video about this. Like a big, A big objection to gold as money is. Like, how could it be money? All you do is you like wear it on, on your neck or you make a ring out of it or who cares? It doesn’t really matter.

And you know, the truth is, it’s true. You don’t need jewelry to survive an economy doesn’t need jewelry to survive. But the thing what makes gold money is not the fact that it’s jewelry. It’s the fact that whatever you’re using it for, it changes price very, very, very fluidly and very slowly. It just happens. Like, there’s a reason that you use it as jewelry, because you can bash the stuff and you can hit it and you can whack it with a hammer, and those are all the same things. Yeah, whatever. You can go. So you could do anything to it, and it will not change.

That’s why it’s good jewelry. It doesn’t matter that it’s jewelry. It matters that it doesn’t change prices relative to other things very quickly. That’s what matters. Yeah. And you can change it. You can take the jewelry, while you could in the past to the mint, and they turn it into a coin for a little. For a fee, which is called the seigniorage. Yeah. And I mean, ultimately, gold is money. Yeah. It can be used as jewelry, but. Yeah. And money is supposed to be something that you don’t consume. And that’s why gold has been money for thousands of years.

And like you said, it doesn’t. Unless. Unless you burn it to a really high temperature or you use aqua regia. Yeah. It’s really difficult. Something. Auric acid or whatever. Yeah, yeah. So I mean, like you said, you know, we never really went off gold. Gold exchange system of the Bretton woods, because Richard Nixon said here he was just suspending the convertibility of the American dollar into gold temporarily. Yes. It’s been almost 54 years, but, like. And there’s a statutory price for gold in Congress of $42.22. So that’s the big secret that the central bankers and the bankers don’t want people to know that gold is still really important.

And that’s why they still hold so thousands of tons of this stuff. Okay, so two more questions. What’s going on in the bank of England? And there’s a. There’s a delivery delay, and I don’t know, you took a picture, you put it on Twitter. You were in front of some kind of lorry. What. What is going on? Where are you. What are you trying to. You know, the second thing is, did this kind of thing happen in 2020 where London wasn’t able. There was a delivery delay from London to New York and they were saying, oh, it’s going to take six to eight weeks or whatever.

Look, I mean, I’m watching the confirmation hearings of rfk and, you know, I’M rooting for the guy. Like, it’s really exciting, but like to see the, it’s sort of, it’s a sickening mix of corruption, evil and just profound stupidity and grandstanding and mixing human emotions in ways that are just like unholy. And the people in this chamber, and I mean the Republicans and the Democrats, right now, the Republicans happen to be a little bit more tasteful because I think for accidental historical reasons, they happen to be more on the right side now. But I’m not giving any of them personally any credit.

It just seems like the people in charge of the system, at least the front facing people, are just so monumentally dumb. Who, who actually understands how the world functions? Is there somebody who understands within the system that gold is actually important? I mean, I’m thinking maybe Jamie Dimon or maybe it’s just like these people that are in a hut petting cats and directing everything, you know, without us, without anybody ever knowing like what, who is in charge of anything anymore? Well, I mean, I’d say Ron Paul knows about gold, but he’s not in Congress anymore. And as for my photo, I went out for lunch today with my wife in London with a friend because last year I bet with him that gold would go to 2600 and it was at 2200 at the time.

And he said, oh, if it does, I’ll take you out for lunch. And he, he’s into gold too. So we went out for lunch and it was near the bank of England and there’s a back gate to the bank of England where they bring in the gold. And that, that’s where I was standing and half of the gate was open and I just took, my wife took, she was on the other side of the road. She took a picture of me and I said this very little activity here, you know, and a few weeks. Did you run in there and look for a bar? No, I couldn’t.

You know, there’s security guys there. But a few weeks ago I went there again and there was a security guy there and I went up to him and I, I joked and I said to him is, you’ve been very busy. Said, oh, it comes and goes, you know. But I have a lithograph from the 19th century and that gate, it’s on Lothbury, which is the back, back of the bank of England. It’s a road and this lithograph of. And they’ve got like a coach, like with horses coming and says gold from California arriving at the bank of England, mid 19th century.

Yeah, yeah. So after the gold rush. But yeah, I was just joking about it, but it’s always. It’s pretty much quiet there. But I guess if you see a van or a truck go in there, it means they’re probably taking gold in or out. But in 2020, what I heard is that there, there was like almost panic and people were flying gold to New York from London. I’m not. I don’t know if it was taking four to eight weeks to deliver it. And I think, like you said right now, the, the shortages in the wholesale market, the, the retail market, there is no shortage.

There’s plenty of gold. So. But I, I think the wholesale market is what matters in the end of the day. And I think it will eventually permeate to the retail market. And there, I think the premiums will increase first and then there will be. Will be tough to get. Yeah. You’re saying this record high, it’s in the, it’s in the big players. It’s not in the retail market. Yeah, and also I think the retail market in China is pretty active. But. Yeah, because if you look at the last three and a half years, the central banks, like, of the Global south, you know, Poland as well, they’ve been buying a lot of gold, I mean, record levels since the end of World War II, net buying of gold.

So I think these people know there’s something coming that we’re going to need some kind of revaluation to back the system. And I think Trump could be the guy that does that, because these, you know, anything’s possible. He will do things that no one expects, as we’re seeing already. So I think that’s what’s going on. Maybe we are near the end game. Rafi for Fiat currency. Yeah, well, I hope so. It’s, it’s, it’s just, it’s so fascinating to live in. And thank God that I can kind of keep my distance from it a little bit and, you know, live in the middle of nowhere.

I sort of live in the middle of nowhere. I sort of live in the middle of a war zone. It depends how you want to see it. Look, I’m, I’m. I wake up every day and I’m like, oh, what’s gonna happen today? You know, who’s gonna be. You were talking about rfk. I, I watched a little bit the hearings yesterday and today, and I told you, I think on an email or message that I actually been following him way before, not 2020, because I had an interest in what he had to say. And I think the senators, not all of them, but it’s blatant that they’re bought and paid for by certain groups.

And never, never has it been so obvious. And it was great right in front of you. And he, he was, he’s been good because he hasn’t, you know, he’s been very calm and they’ve been, you know, really rude to him and he just takes it and, and it’s amazing. Like, they want to ask him a question and then they don’t stop asking the question. He goes, do you want me to answer the question? It’s just crazy. I hope he gets confirmed. Yeah, but this, this is, this is all, it’s all a stupid show for like, for the public because everyone, everyone has already decided how they’re gonna vote and.

No, nobody’s asking him an honest question. They like Republicans, they’re. Okay, fine. So if some of the Republicans. I’m glad that they want to help and they’re saying nice things, that’s all fine. But like, these aren’t, these aren’t. This isn’t really a confirmation hearing. It’s just. It’s a sparring match and it’s like a. It’s like a boxing match that we’re invited to come and see. Yeah, no, a lot of it is theater when, when the end game hits. Right. And what, what is going to, how is it going to manifest in this market that we’re watching of New York vs London, transferring this way, that way, premiums, blah, blah.

What. What does it look like? Well, I think ultimately it will mean real price discovery for gold and silver. So that, what, that means that gold and silver prices are going a lot higher and the purchasing power for stackers is going to be. Yeah, it’s going to be a lot better than. But where does it, where does the physical go? Does it, does it. Is it evenly divided between London and New York or does it just like diffuse all over the planet? Because all currency. Yeah, I think. Yeah, I think you’re right about it being diffused.

It will just go. Go where it goes. I mean, I don’t think that really matters because. Yeah, and I think, well, it will probably go back to a lot of the central banks around the world because a lot of central banks trust the bank of England and they, they hold like 5, over 5,000 tons. Tons with the bank of England. And I would be worried if I was a central banker. Like, let’s say the Australian Central bank, they all hold all their gold with the bank of England, I think about 80 tons. I would be concerned about this story from yesterday.

And yeah, we could see what that means is the, a lot of the gold will be repatriated all over the world and London will be left with very little gold. We’ll have the 300 tons that the UK has, maybe a bit more. That’s how I see it. And maybe what the US is doing is close basically because I think the golden Fort Knox might still be there but it’s, it’s been leased out many times over. So maybe this gold moving back to or moving to New York is just basically buying it by you know closing those leases to make sure that there’s gold at Fort Knox.

It, you know, especially if they want to bring back or bring this gold back to bond that uh, Judy Shelton has been pushing. If you don’t have any gold at Fort Knox, you can’t do that. Well, we got, we got deliveries tonight. On the February contract the all time record is 55, 102 contracts delivered. That was in June 2020. And I put this out on the end game investor. I looked, I looked at the way back machine in terms of deliveries and I found that they have a snapshot for June 2020. The first delivery day for June 2020 which was May 28th, 2020.

Two days before or two to business days before it was the deliveries that day were like 23,000 something. And we have 75,000 contracts left on the February contract. So if less than 50,000 are covered today then we’ll be on pace for record deliveries. But I guess quickly comment on this. I mean I don’t think most of the deliveries are being delivered through a futures mechanism. I think there are they private deals between. There are. From what I read in the article of the ft, there’s been deals done over the counter. That means, that means one bank or one party calls party says I need these bars of gold here.

Wire me the money. Not through, not through Comex. Yeah, fine. Okay. And. But they end up in the Comx vaults anyway or at J.P. morgan Vault and New York J.P. mor. Well, I mean one of the vaults that are listed on the website. But I don’t, I’m not sure if they’ll be eligible for you know, registered for Comex, I guess. Right, okay, well we’ll see what happens. It’s certainly exciting. I’m praying for RFK for Tulsi Gabard. I mean it’s. We’re living, we’re living through like something akin to the maybe, maybe not the total collapse of the Roman Empire, but when it when it was split into west and east and the east was salvaged in the west, kind of collapse, that’s what it feels like.

It feels like America might not be completely dying, but it’s. It’s definitely. It’s reforming itself. And it’s unclear what it’s going to turn into. But this is definitely. We definitely turned a quarter, 20, 21. That was. That was a monstrous year. And we’re into. We’re moving into something better. But, like, this is. This is. This is like convulsions and birth pangs and it’s exciting and confusing and infuriating to watch the evil kind of, like, morph out and become so obvious and pathetic. Yeah, like Elizabeth Warren. That was funny. Sir, do you think that men cannot have babies? I can see why they call you Pocahontas because you’re really poking me.

My great grandfather had a saying about people like you. He used to say, hey, why don’t you go back in your wigwam and beat the crap out of your husband, you know, and forget a dream catcher. We need a catcher to filter out all the crap she’s throwing at me right now. It’s. It’s funny and infuriating. There’s so many emotions in it, and I can’t really handle anymore. I gotta stop watching. I can’t do it. All right, have a good weekend. Thanks for coming on. And we’ll see what Gold ends up being by the end of the week.

All right, take care. Have a great Sabbath as well.
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