➡ The silver and gold markets are experiencing high demand, particularly for silver bullion, leading to a potential supply shortage. This demand is causing a surge in borrowing rates for SLV and GLD, which are funds that people are likely borrowing to meet the demand for bullion. The demand is not for the ETFs, but rather for the physical gold and silver held by banks and financial centers. This situation could potentially trigger a drop in the dollar’s value, although it’s not certain.
➡ The demand for physical gold is increasing, causing electronic or paper gold to trade at a discount. This is due to a lack of available physical gold in London, leading to a rise in the price of physical gold and a decrease in electronic gold. This situation is not a short squeeze, but a result of deliveries being made, causing the contract to close and the price to rise. The demand for gold has shifted from the paper market in 2020 to the physical market now, as big players prefer physical bars over shares of gold ETFs.

Flowing? Well, hello there my friends, Raf here from The Endgame Investor with this week’s Silver Report and boy Do we have a silver report for you today because something crazy is going on in SLV in the gold and silver markets. There’s a lot of bullying that continues to flow From London or its proxies into New York, the flow has not stopped and it looks like there is some kind of supply shortage Especially in the silver bullion market. We can see that from the borrowing rates for SLV particularly GLD is also spiking which means that there are a lot of shares being borrowed Which in any normal time would mean that people are shorting these funds But in these times when silver and gold bullion are in serious demand They’re probably borrowing these funds in order to redeem baskets to fulfill the demand for Bullion and now they are short these ETFs and they cannot cover yet We’re gonna go into this slide by slide and we’re gonna go into the difference between 2020 and now in 2020 from about April to July August There was a huge inflow of gold and silver bullion into the COMEX flowing.

I like flowing cascading at that time The ETF holdings were enlarging. That’s not a word We’re growing but now they are shrinking because the demand is not in the ETFs It is in the big players in the banks and the financial centers So let’s quickly go to the slides today and this silver report is brought to you by first of all my sub stack Check it out at endgameinvestor.substack.com in the link in the description below where I write about this phenomenon Which could be called silver squeeze 3 also brought to you by miles Franklin Get your gold and silver with them link in the description below and mention the endgame investor And if you want to hear what I think about Trump’s Gaza plan then sign up for the patreon where I go into other topics including the relationship between money and government and God, but anyway, let’s get to these important slides.

These charts are from Bob Coleman follow him on Twitter He knows a lot more about the intricacies of the COMEX than I do I can give a good overview, but he knows the mechanics of it So the GLD borrowing fee spike hat tip Bob Coleman the borrowing fee on GLD That’s the gold ETF that is the most gold in it of any ETF So we’ll use it as a proxy for the entire ETF market the borrowing fee has gone up to four point seven percent You can see here from two point four percent back two days ago on or three days ago Depending on when you’re watching this February 5th.

It was two point four percent now. It’s four point seven percent This is the daily chart of the GLD borrowing fee. You can see here. There was a huge spike The available amount of shares of GLD for borrowing was one point three million two days ago And now it is one point one billion. So there’s still one point one million, excuse me So there’s still a fair amount of shares and it hasn’t really shrunk that much So do I think that there is a squeeze in GLD not quite yet? We’ll go to the next slide in a second, but the point here is why would people be borrowing GLD? They’d be borrowing it so that they can redeem those shares for bullion As how GLD works is you redeem a certain amount of shares for bullying in a basket and you can take that boy into What you want with it But if they don’t own those shares and they redeem them and they build shares no longer exist and they have to buy them back From somebody else or put the gold back.

So they are short gold now in order to fulfill some kind of delivery something Nobody knows exactly what but we go to the next slide here. We see What is going on? I don’t think there’s quite a squeeze in gold just yet, but wait until we get silver This is Ronan Manley. Follow him on Twitter Bullion banks are borrowing GLD shares and referring the units to physical and gaining control over that metal ie rating SPDR gold trust So I looked at the GCRU the gold truck gold charts are us charts here of the GLD ETF and you can see here on the top gold is going up It’s now $263 a share and that’s an all-time high.

I think it was a the high was the all-time It was 265. So we’re right right there and the total metal in the trust. It has not gone much It hasn’t gone down. It hasn’t gone up. It stayed pretty steady Since January is slightly down From whatever this is. I can’t really see it was at 870 tons to now 864 so about 10 tons it’s been down a little bit, but this doesn’t look like a squeeze just yet The you know the thing is that the and I’ll show you this in the following charts That the holdings in the GLD are not going up So it could be that the demand for GLD is canceling out is being canceled out by the demand for the gold in The GLD in order to fulfill delivery requests here You can see the movement of the price in GLD and the amount of gold in the fun It doesn’t look like it’s being slammed down so much.

So my gut says maybe on this all I know is my gut says maybe But if we move to SLV we can see there is a major difference this time I show you here the 2020 delivery rush remember there were huge amounts of deliveries in 2020 Especially for silver and gold there were all-time records back then you could see here the black line and the blue line We’re going in tandem. So the blue line is the price of SLV shares price of silver was going up And you can see the black line the the amount of silver in the ETF was going up and up and up and up So the demand was to put silver in that ETF at that time That’s what the deliveries were going for a lot of them at least not all of them But a lot of them were now it’s the opposite now The price is going up and up and up and the amount of silver in SLV is going down and down and down Almost in a mirror image.

So as the price goes up people are shorting this ETF We’ll see those numbers in a second and they’re taking this silver and they’re using it for deliveries exactly what to who we don’t know So if we zoom in on this we can see that the amount of holdings have gone down about 1100 tons in three weeks as the price is meandered and it’s Nearing $30 for SLV right now. So yeah, this does look like a run on SLV and Ronan Manley also notes and Bob Coleman to that the borrowing rate on SLV has skyrocketed a lot higher than GLD So I think the squeeze right now is in SLV and in silver less so in gold But gold could catch up and it might be doing that right now What happens if these funds are being rated if SLV and GLD are actually being rated then here are the logical points if they’re Borrowing shares if big financial centers are borrowing shares of GLD to SLV to redeem baskets and get that gold and silver out Satisfy physical demand then they will have to buy those shares back at some point to cover Third point if gold and silver continue to rise When they are short that gold because they’ve already sold it to somebody and they’re short the shares and they are short shares because they needed Them to redeem baskets.

They will get squeezed. This could very quickly trigger a dollar collapse Well, it necessarily no, but this is one of the mechanisms that could cause a serious bash or a serious Drop in the dollar and all of its purchasing power. Eventually, it’s going to happen whether these ETFs are going to be the trigger of it I don’t know, but they are one potential Ronan Manley says this is a direct quote of his tweet in four bullet points. This is retweeted by Greg Hemke So I’ll put a link to the tweet in the description below for those who want to see it directly Ronan Manley says the gold clearing banks of London precious metals clearing LTD have exhausted the metal that they have available for delivery in their own vaults So they are trying to borrow as much gold as possible via the gold lending market at the Bank of England This is why the delivery times at the Bank of England are being extended to several months because they’re running out But this looks exhausted to these clearing banks JP Morgan HSBC UBS and ICBC standard We need to keep gold in their vaults for their own local London liquidity But it looks like they don’t have any more gold to do this counterparty risk is therefore risen between all the LBMA bullion banks Which trade unallocated gold credit between each other the clearers the market makers and all the other LBMA bullion banks and brokers and traders about 50 plus entities Basically, they trade paper claims on gold or the electronic equivalent of the key here’s in the bold These claims are now trading at a discount to reflect the fact that they can’t be converted at will into physical due to a lack Of availability of sufficient local London physical gold And so the claims on gold are starting to trade at a discount to physical gold as the demand for physical gold Rises the demand for electronic gold falls and you have a spread here And so that spread could be encouraging people to sell short SLV where you can get silver cheaper and deliver it for a premium Because people want physical now.

They’re starting to be a loss of faith in the system Manifesting as a premium for physical over electronic or paper now in the gold market We can see here We have open interest versus the price the price keeps going up and up and up and open interest keeps going down From a peak of 600,000 to now about five hundred and thirty five thousand these numbers are one day out of date Why is this happening? It’s not exactly a short squeeze What is happening is that open interest is closing because of deliveries being made once the delivery is made the contract closes open interest falls And because these deliveries are not And because open interest is not falling through the sale of a position Then the price doesn’t get affected by the open interest falling It just keeps rising and rising open interest is resetting itself downward Which will give us the fuel for another leg up at some point if we’re still already in it We might already be in it now.

I don’t know now for the delivery picture. Here’s where we are We’re on pace for sixty thousand eight hundred and forty seven warrant deliveries from London to New York primarily we can see here the total is fifty two thousand five hundred and seventy seven and the remaining open interest is ten thousand Three hundred and eighty two contracts for the February contract still open if we subtract 2,112 from that because this is one day behind and this is current then we have a total of sixty thousand eight hundred and forty seven Warrant deliveries that would be an all-time record.

The all-time record is fifty five thousand one hundred and two if I am NOT mistaken So here we can see the deliveries and everything before 2020 is much much lower than these numbers So there’s no reason to stretch out the graph that far This is the all-time record over here in June 2020. We can see here They were already at fifty two thousand five hundred and seventy seven and we’re going to breach the all-time high in the next two Or three days as these contracts continue to be delivered a lot of that gold is headed into the comics Which is nearing the all-time highs for physical supplies that we saw in 2020.

We’re not quite there yet We’re about six million or so ounces below the all-time high And now if we go back again and look at the difference between 2020 and now the 2020 delivery rush That was over here from about April May to about July August 2020 where was it that physical going was going into the ETF. You can see the black line here for the total GLD amount of gold in the fund it went from about 900 tons to 1271 thousand two hundred and seventy tons something like that in the space of that price increase now The price increase is not affecting the ETF because the gold is being redeemed in order to satisfy more physical demand So back so basically I could say like this in 2020 the demand for gold was in the paper market Now it is in the physical because the paper market is not stuffing any more gold into its funds The demand is going elsewhere for big actors that want the big bars and they don’t want shares of GLD You can see the same thing in silver also between 2020 and now the ETF is going down back Then it was going up in terms of the holdings And I’m not talking about the rest talk about the holdings the holdings were going up now The holdings are going down as the price goes up So basically what I’m saying is that the demand these delivery demands are not going into the GLD or SLV ETFs They’re not going into the paper market This reflects what Ronan Manley has been saying that the demand premium is in the physical and the rest are trading at a discount Because not all of the paper claims can be fulfilled with physical bullion anymore Is this going to calm down? Is it going to cause a huge silver squeeze or gold squeeze? I don’t know but one day very soon It’s going to happen and I would encourage all of you to check out the endgame investor on sub stack where I go into the Reverse repo situation and the plumbing as I usually do there That is really my expertise Ronan Manley’s expertise and Bob Coleman’s expertise is what’s going on here So I thank them for their tweets that I used in this presentation for this week’s silver report for the endgame investor I’ll see you guys pretty soon because things are ramping up fast
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