➡ The article discusses the current financial situation, highlighting the increase in daily repo volume and the potential for a financial crisis, referred to as the “repocalypse”. It also criticizes the calculation of GDP, arguing that importing gold should not be seen as negative for the economy. The author also discusses the investment in silver exploration companies, suggesting that these companies could be acquired by larger players in the future. Finally, the article mentions Kootenai Silver, a silver exploration company, and its potential for future growth.
➡ The article discusses the increase in gold imports from Switzerland, which is expected to impact the U.S. GDP negatively. It also mentions a decrease in gold inflow into the COMEX for the first time since January, while silver flows continue to rise. The article suggests that people may start investing more in gold as the dollar falls. It ends by predicting a significant impact on the global economy’s debt structure when the S&P 500 to gold ratio decreases, similar to the period from 2000 to 2011.

Didn’t we do this yesterday? I don’t know what you mean. Don’t mess with me, poor chump. What day is this? Well, hello there my friends, Raffia. From the Endgame Investor with this week’s Silver Report. And there is… There’s a lot happening again. Well, it’s Groundhog Day. Again? Again and again! And again and again and again! AHHHHHHH! All of the ghost debt, the dead debt, that has died since 2008 that has to be stuffed back into the Fed or T-Bills and there’s nowhere else for it to go. And higher reverse repos means lower bank reserves, which means that the repo volume cannot be sustained.

We are within 5 percentage points of the next repocalypse. I will show you that chart in a few minutes. Daily repo volume is now at about 2.6 trillion dollars a day and that all comes from bank reserves. And when there are not enough bank reserves to sustain that volume, you have a freeze in the plumbing or a clog in the plumbing or whatever it’s called when you can’t flush the toilet and it always smells like crap. BAD NEWS ABOUT GDP! It’s gonna fall next quarter because of all the gold imports which shows you how valuable the calculation of GDP is.

Which is why I thought it stood for gross disgusting product in high school where I didn’t really care what it stood for because it didn’t make any sense to me. And it still doesn’t because how can you say that there’s no economic growth because you’re importing gold into your country? You give them paper, you import gold and then you say that’s bad for your economy because it leads to a smaller imaginary number than in some other case. It doesn’t make any sense, Keynesianism never made any damn sense and it’s about to explode in all of our faces.

The gold flow into New York has finally paused. This is the first day in three to four months when there hasn’t been a daily net increase in gold stocks in gold supplies at the COMEX but silver flows continue fast and furious. We’re now at over 420 million ounces in the COMEX. The gold to S&P 500 ratio is at a critical juncture. A juncture that goes back about 15 years, a pivot point and I’ll show you the most important head and shoulders top pattern in financial history that is the gold to S&P 500 ratio. That ratio is still below where it was in 1971 which means that gold has outperformed the S&P 500 since 1971 which means that all of the gains in stocks in general have been an illusion for the last 50 years which is what inflation is.

It’s an illusion and when that illusion evaporates, you have the endgame which is coming fast. Before we get into the slides, this week’s silver report is brought to you by a new sponsor, Kootenai Silver. The reason that I invest in silver exploration companies, I don’t invest heavily in them. I do put a little bit of capital into ones that I believe are trustworthy and worth the bet. The reason I do it is because once silver does hit a 15 to 1 ratio, I believe it will stay there this time for a respectable amount of time, maybe a few months, maybe a year or two.

Not exactly at 15 to 1 but it should descend to between 30 to 1 and 15 to 1 for a respectable amount of time and in that time silver mines are going to be taken over by bigger players with the capital to develop them. The point of investing in silver explorers now is to get a cheap speculative supply of silver in the ground on the assumption that when the ratio hits between 30 and 15 to 1 in an endgame scenario, that these companies will be acquired by players with huge amounts of capital and they will be put into production.

So you buy basically a call option on silver now expecting that it will be developed in an endgame scenario, which is inevitable anyway. And then you can lock in some dividends as these supplies go into production. It is speculative, yes, but that is the basic thesis. So about Kootenai, symbol K-T-N on the TSX and symbol K-O-O-Y-F in the US. This company is an exploration silver company that is exploring mines that were previously mined in Canada. The key shareholders own about 50% of the float. So you have big players that are already invested in this stock. First of all, Eric Spratt, who owns about 5%, Kondai, which owns 6%, Management and Directors, the inside ownership about 4%, plus institutions of 32% ownership.

So this is already pretty much half owned by big players. The main resource property is 214.2 million ounces of silver equivalent. And with that, we continue with this week’s silver report brought to you by Kootenai Silver. The first chart we have today is the outstanding T-bill supply. It has peaked out at about 6 point something trillion dollars, and this will stay steady to falling until we get a debt ceiling raise. The reason that I’m showing you this chart is because of the next chart. You can see here, this is since 2014. So you can see on the next slide how it goes in parallel with money market funds.

This is the extra dollars that are mostly bank reserves where they are invested in the money market. So the money market is basically reverse repos plus T-bills. That’s where money markets invest their funds for a little bit of interest. So if you have fewer T-bills, you have to have more reverse repos. So we see here that on the bottom here, we have the T-bills outstanding. On the top here, we have the total amount of money market funds, and they are at about the same number, 6 point something trillion dollars. This goes to Q1 2024, and this goes to Q3 2023, but they’re basically the same number.

And so the effect of this, and this is what Daniel Oliver predicted two months ago in his research report that I’ll put a link to in the bottom of the description below, you have here the overnight reverse repurchase agreements, the ONRRP reverse repos, as we call them. We can see here that we are now at 130 billion, 129 billion. That is higher than the minimum we were at in February 14th of 58 billion. So it’s gone up about $70 billion since then. You can see here, this was the end of month spike on February 28th, and you have end of month spikes typically every month.

But after that, they quickly fall down to a new low. But this time, we seem to be hovering at around $70 billion higher. And this is what Daniel Oliver of Murmukhan Capital, my favorite gold and silver analyst in the world, this is what he predicted. Two months ago, he said here of Besant, Treasury Secretary Besant, reverse the standard Treasury practice issuing only 15 to 20 percent in bills, short term debt, meaning the 10 year financing reference rate will drift higher and a falling short term rate risks enticing money back into the Fed’s reverse repo facility, sending a tightening shock through markets and the economy.

Well, it appears to me this is finally happening now. He was about two months early or not really early. He did it on time. Two months is pretty much on time. I think that reverse repos will start to build here as the Treasury’s supply Treasury bill supply starts to fall and that will have a tightening effect on bank reserves. And this is why that’s important. You can see here that in the red line, we have the other factors, draining reserve balances. That means the reserve balances in the federal reserve system and the banking system.

They are supposed to go up as the Treasury’s account, the Treasury’s bank account goes down. Now, over the past three weeks, we’ve had a drain of the Treasury’s bank account of 280 billion dollars. Now, that should all go into bank reserves as the money comes out of the Treasury’s bank account has to go into the banking system and most of it will be taken up by bankers. However, bankers are only up 92 billion dollars since the drain of 280 billion dollars from the Treasury’s bank account. Why is that? Well, because the reverse repos are starting to rebuild and that is outside of bankers, outside of the banking system, because there’s nowhere else to put this money.

So basically, what I’m saying is that bankers are going to stay steady here more or less until the debt ceiling is raised. If they stay steady, that seems to be balancing for the plumbing system. However, in that time period, the secured overnight financing volume, basically the repo volume is going up and up and up and up. We are now at 2.684 trillion dollars as of February 28th, 2025. I think we’re at like 2525 now or maybe 100 billion dollars less, but it keeps trending higher. It is not going to stop until it takes up the critical amount of bank reserves.

And that we see in this next chart. This was the last apocalypse. Wednesday, September 18th, 2019. This is the repos to reserves ratio. How much of bankers are taken up by these overnight repo trades. And September 18th, 2019, it was 83.479 percent. We are now at 78.27 percent and trending higher. We’ve got about five percentage points left until we hit the repocals ratio. We are going to hit it because repo volumes will continue to trend higher will cause the clog and it is coming shortly. Now these sentences show why Keynesianism. This isn’t from an article in Bloomberg and I’ll put the link in the description below.

Why Keynesianism is so stupid in five sentences. Let’s read it together. This January flurry of imports was broad as talking about the imports, the U.S. trade deficit, right, for February or January, actually. The January flurry of imports was broad and included a surge in inbound shipments of industrial supplies and materials. Within that category, imports of finished metal shapes that include gold bullion jumped 20.5 billion dollars, marking a second month of steep increases. So what? Much of that increase in gold imports came from Switzerland, not London, Switzerland, where the U.S. trade deficit widened sharply.

The nearly 23 billion dollar gap during the month was second only to China. Goods and services trade excluding the impact of gold imports. This is the key. This is why Keynesianism is so dumb. May weigh on first quarter gross domestic product after contributing slightly to the growth in the closing months of 2024. So basically they’re saying Bloomberg is complaining that higher gold imports from Switzerland are going to put a damper on GDP, which, you know, the number is going to be lower because if you count imports against GDP, which is how GDP is calculated, well, it looks like your economy is slowing down because you’re importing all this gold into it, which makes absolutely no sense.

The gold inflow into the COMEX has paused for the first time since it began in January. We see here that the change in this low number gets us 319,838 ounces up and registered, but down 327,005 ounces. So we had a little bit of a gold outflow from the COMEX vaults in gold yesterday. First time these supplies have started to level off at around the all time record high of just below 40 million. So we’ve matched that record high, but in silver, the flows continue. We’re not 420 million ounces, which is an all time record high appreciably above the just under 400 million ounces high in 2021 around silver squeeze.

The action now really is in silver, but the price action is in gold. The physical action is in silver. And I wanted to go into the long term gold to S&P 500 ratio. This isn’t actually long term. This is medium term. But you can see here, we are in a giant pivot point over here. You can see this point of 0.512 has been hit about, let’s see, one, two, three, four, five, six, seven, eight, nine, 10 times since 2021. It looks like you can count it in many different ways. Let’s say 10. This is also a pivot point going back to 2019 and 2017.

You see here the circle here, and it was a support zone in 2016. And also it was back in 2006. It was a resistance zone and the breakthrough happened in 2008. Once this support zone breaks and yes, it broke over here in March, but that was a special circumstance from the lockdowns that is not anywhere near normal. So we’re just going to scratch that because the world had lost its mind over here. Line breaks over here and we start to appreciably trade above it. People are going to start panicking and seeing that their stock portfolios are not outperforming actual money and they’re actually losing money because the ratio is going higher and higher.

And when they figure that out, they’re going to start dumping stocks and going into gold because the dollar is going to be in free fall. So we see here what I’ve called the most important head and shoulders top in the history of the financial world. I believe you can see here shoulder, head, shoulders. This is the long-term S&P 500 to gold ratio or rather S&P 500 to gold ratio. We can see here that the shoulder here in 1971 is just about the shoulder here in 2022. And we are now below where we were in 1971, which means gold has outperformed the S&P 500 since 1971, meaning it’s all an inflationary illusion.

Here’s the head and here over here in 1981, 1980, when we reached a low in the ratio, that is endgame. That’s where we are headed. And this time it’s going to destroy the entire debt structure of the entire global economy. When this ratio starts to head down as it did from 2000, 2011, that is going to be the end of the dollar regime. Check out our sponsor, Kootenai Silver in the link in the description below. I do own it and check out the endgame investor on Substack or I will go into detail about the London silver supplies, which data is about to come out and it will be out on endgame investor for the weekend report.

I’ll see you guys next week. [tr:trw].

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