Not really violent, but you know I love graphic violence and it creates clicks. So maybe people will be inspired to watch more if I say graphic violence. Relentless silver flows continue into New York. They have not stopped nor abated the gold to S&P 500 ratio is at a trend line established in 2011 at the gold top. The ratio is higher than it was back then, meaning we have a lot lower to go. Lower means lower stocks, higher gold. You’ll see this ratio going back to 2011. It’s pretty fascinating. And also this silver to S&P 500, actually the S&P 500 to silver ratio is also at a trend line established in 2011.

Interesting how these things line up. And finally, I think I found a reasonable explanation as to what is happening in the ETF PSLV, the Sprott Physical Silver Trust, Eric Young, who I will be having on my channel next week. Tune in for that. I will be interviewing him about the PSLV situation and other things. He gives a pretty good explanation as to what is probably happening in PSLV and why it is so important. We’ll go over that at the end of the video. And finally, we have six days left until the next major gold delivery day of the active April contract.

And there are 243,894 contracts still open, which would mean that we would need about a pace of 40,000 contracts a day cleared to clear them all out and roll over. It’s not going to all clear out. The question is, well, we have record deliveries of above 76,000 this time. And because the gold flows are continuing into New York, I would speculate that yes, we will have either near a record or a new record come this April for gold deliveries. And with that, let’s go into this week’s silver report brought to you by Kootenai Silver, KTM in Canada and symbol K-O-O-Y-F in the US.

I am a shareholder. And here is another explanation as to why I hold any of these exploration companies, silver, gold companies that have yet to be brought into production. What is the point of holding them in your portfolio? Well, I do also own a small amount of call options on certain gold and silver ETFs with some spare change on the assumption that eventually there’s going to be a moonshot and it’s going to net me a lot of dollars. I’m not sure if those dollars are going to be worth anything, but I still play the game with spare change.

So it’s the same thing with silver exploration companies. I only do this with companies that I trust that have been referred to me by people I trust and Kootenai is one of those companies. It’s like a call option on gold and silver ETFs, except that if it wins out, not only do you have capital gains in dollars, which may or may not have value, you own a piece of a real company that actually produces silver and therefore you have a good chance of getting decent dividends going into the future for years to come, meaning real money dividends.

So in that way it is advantageous over holding call options in gold and silver ETFs, which do not have any dividends and it’s all a speculation game. I think it is also worth it to hold some amount of capital in silver and gold exploration companies. For example, Kootenai silver and I will be interviewing the CEO this coming week. So stay tuned and you’ll get more information about the company itself and its prospects. With that on with this week’s silver report brought to you by Kootenai silver. The first thing I want to go into today is the plumbing situation and we see that we have two Bloomberg articles here back to back by my favorite plumbing author at Bloomberg and that is Alex Harris.

First, she says on March 19 fed to shrink balance sheet at slower pace until debt ceiling deal reached. I have one paragraph boxed in a red rectangle at the bottom here and I want to explain that graphically. My graphic design degree comes from a diploma mill in Sri Lanka and that’s why I know how to draw red rectangles and it’s very popular, which is why so many of you watch the silver report from my graphic design prowess. So we have here the first article officials who left interest rates unchanged on Wednesday said they’ll lower the cap on how much in Treasuries is allowed to mature without being reinvested to 5 billion from 25 billion.

So we’re cutting the rate of QT of quantitative tightening by 80% down to five million. That is almost nothing. So they’re getting really nervous here that QT is going to cause some kind of a conflagration. Let’s skip down to the final paragraph here with the red box around it from Sri Lanka. The longer it takes Congress to either suspend or lift the limit, the more cash that will make its way back into the financial system that has the potential to artificially boost reserves, currently 3.46 trillion, masking money market signals that could indicate when is the right time to stop QT.

So that is mostly an informative tone and you’ll see these articles get more worrisome and worrisome as we go on. This was March 19th, the next one is March 20th and I’m going to explain graphically why more money makes it into the financial system. The longer it takes them to raise the debt ceiling, you’ll see that in the graph in the next two slides. Next article here, we see Wall Street uncertain over when Fed’s balance sheet unwind will end. First paragraph is the most important. It’s the one with the rectangle around it.

Lawmakers are attempting to strike a deal on the debt ceiling, the statutory limit for outstanding treasury debt. The U.S. hit that limit in January, the longer it takes Congress to either suspend or lift the limit, the more cash will make its way back into the financial system that has the potential to artificially boost reserves, meaning bank reserves, currently 3.46 trillion, which would make it hard to read the signs in the money markets that would indicate the proper timing for ending QT. Well, the reason that bankers are so important is because they fund the overnight repos that happen every night.

And they are now between 2.3 and 2.5 trillion every night. And once about 83 to 85% of them are taken up by repos every night, then you have a apocalypse, which is what happened in 2019. That’s why this is so important. So you’ll see in the next article, the tone gets even more alarming. And this one isn’t by Alex Harris. It’s by, you guessed it, Chris Anstee. Do I know who he is? No, but he has a nice name. So it says here, Summers says slowing balance sheet runoff pace is alarming. Dignal signal, on debt fragility.

Former treasury secretary Lawrence Summers, Larry Summers, said the federal reserve’s decision to dramatically slow down the shrinkage of its US treasury holdings amounts to a worrying signal about money demand for market demand for longer term federal debt. This is Summers quote, and he’s very worried here. He says this should be getting people’s attention as an alarming development. Summers said in an interview on Bloomberg Television’s Wall Street week with David Weston, the move indicated that Fed policy makers determined there was limited absorption capacity in the markets for long term bonds. The federal Wednesday slashed its cap for how much in treasuries it lets roll off its balance sheet every month to five billion from 25 billion.

And again, that’s the reference to the 80% slowdown in the rate of QT. So this is an alarming development. It is alarming. Why is it alarming? Because of this. So you see here, this is my graphic and violent illustration of the problem here. The blue line is the treasury’s account at the Fed. If it goes down, that means they are spending money into the banking system. And because they cannot sell any more debt, they cannot vacuum any money out of the banking system. So money that was out of the banking system at the Fed’s account at the treasury, sorry, at the treasury’s account at the Fed rather, that money that is outside the banking system goes into the banking system without an offsetting vacuum out of the banking system by selling short term debt.

So you see as this blue line goes down, the red line goes up. The red line goes up. That’s bank reserves. It’s going up and the bank reserves, the y-axis on the left. And for the blue treasury account at the Fed, the y-axis is on the right. This is just to keep it at scale. And so when the debt ceiling is raised, what’s going to happen is that this blue line is going to go way back up and this red line is going to go down really quick. And when it does, it’s going to hit every apocalypse zone, which should be about 3 trillion, 2.9 trillion, something like that, which is where the repo markets seize up because there are not enough dollars to fund all the overnight repos that need to be funded.

Now let’s go into silver flows. They are relentless. They are continuing. We are at 456.5 million ounces. This is way beyond an all time record. Now we’ve gone up about 140 million ounces in 2025. It is all being vacuumed out of London and other places, maybe Switzerland, some other countries, and who knows exactly what this is being used for. But we’ve seen what happens in a silver crunch like this in 2020 and 2021. It was a monetary crisis over here. I suspect that we are having another one or it’s right around the corner, days, weeks, months away, no longer than that, but definitely the monetary stresses are showing themselves here.

Who knows how high this is going to go or when the vaults are going to run out of room. Right at the gold S&P 500 trend line, this is fascinating. You can see here that 2011, the gold to silver ratio has gone up since 2011, obviously. As we all know, 2011, this is the September 2011 gold high, and we are now at 1.86, which is much higher than this high, meaning that gold is still much lower relative to stocks as it was in 2011. So gold in real terms was doing much better relative to a stock portfolio in 2011 than it is now, but we are at this long term 10, 12, 13 year trend line, which hit here.

It was established here in 2011. It was hit here during the March 2020 crisis. And yes, gold is going down, but it was going down a lot less relative to stocks, which are crashing entirely. And here we see we are tagging that trend line again. Once this trend line breaks, I think this ratio is going to make a run for it down, which means that gold is going up relative to stocks. It doesn’t necessarily mean that gold is going up in dollar value, but it means that gold is going up relative to the S&P 500.

And when people notice this, it means that a lot of portfolio managers are going to cycle out of equities and move into gold to try to match those gains. And now interestingly, you see the same thing, the silver to S&P 500 ratio, even though the gold-to-silver ratio has risen, meaning silver has fallen in value relative to gold since 2011, for sure. We still see the same trend line here since 2011, since September 2011, the same trend line. It was hit in March 2020. I think this is actually August 2020, so it’s slightly different.

This is when silver started to really jump higher around July, August, when silver deliveries were at records. We’re hitting that trend line again right here. When this trend line breaks, I think the silver to S&P 500 ratio is really going to descend, and that means that silver is going to outperform stocks handily. It’s already on the way to doing that. And now if we look at the historical chart, we can see here, interestingly, that silver didn’t start outperforming the S&P until 1931. Why was that? Because the deflationary process finished in 1931.

After deflation was over, silver couldn’t go down any more than it already had, and that is when stocks continued to fall, but silver money itself held its value after that quick deflation, after the 1929 crash. And we see here that silver only outperforms after the deflationary process is finished. But this time, there’s going to be no deflationary process because the Fed is going to print trillions of dollars immediately when there is banking trouble. So I don’t expect silver to fall after a stock’s peak, as it did here. I expect silver to just go up.

So we can see here that this is the same trend line that we saw in the previous slide. It is being broken, and you can see how steep it is from here. When this trend line breaks, silver to S&P 500 ratio is going to fall, and silver is going to greatly outperform S&P 500 and other stock ratios. This final slide is a tweet from Eric Young, who will be on the Endgame Investor YouTube channel next week. I will be interviewing him. It’s going to be exciting. Thanks to his followers for recommending this.

I’m just going to read his tweet because I think he’s on to something. I don’t think he’s completely right about everything, but it’s a starting point, and I’m going to ask him some questions about this. So we see here that he says, one, the banksters can’t borrow PSLV. Remember, PSLV is being shorted. There’s a record amount of shares short on PSLV. Why are they doing this? What benefit does it have for them? He says the banksters can’t borrow PSLV shares to redeem physical. So they’re not using PSLV to get physical for themselves.

They can do this with PSLV. So the banksters shorted PSLV to prevent PSLV from buying new physical silver for its inventory. Because if PSLV needs new silver for its inventory, that increases silver demand even more and pushes the silver price even higher. 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. The banksters have to buy back the PSLV shares to return if PSLV shares rise and their liquidity is wiped out, margin call and short squeeze.

So it definitely is a potential for a short squeeze on PSLV here by all the banksters who are borrowing the shares to sell them to keep PSLV from stacking more silver as it must do if there is net buying, which they’re stopping by shorting. The more selling pressure via banks or shorts now means that even if there are more buyers of PSLV shares now, the net buying is probably flat or negative. This means that PSLV cannot add new physical silver to its inventory, thus the banksters achieve their goal of suppressing PSLV physical silver demand.

The banksters are running out of room here. There’s only a short amount in time. I don’t know how long until something blows up. We’ve got trend lines tagged from 2011. We’ve got silver flooding the COMEX. Something big is coming down the pike and you’ve got to be positioned and ready for it. All that we know for sure is that gold and silver are money and we will go back to them when the dollar is no more. And these are the symptoms or the warning signs that that is about to happen. This is Rafi with the in-game investor with this week’s silver report sponsored by Kootenai Silver, symbol K-O-O-Y-F in the U.S., it’s a symbol K-T-N in Canada.

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

See more of Rafi Farber on their Public Channel and the MPN Rafi Farber channel.