Latest / Man in America Podcast / Is Trump Using Gold to Dismantle the City of London Banking Cartel? w/ Eric Yeung

Transcript

Is Trump Using Gold to Dismantle the City of London Banking Cartel? w/ Eric Yeung · Man in America Podcast

• 0:13
  Seth Holehouse: Welcome to Man in America. I'm your host, Seth Holehouse. So first off, today is gonna be an audio only interview. My guest, they actually do interviews for his own protection, and he has his own reasons that which make perfect sense to me considering he's in, finance and investing in in precious metals. So I wanna, protect him and protect his identity.
• 0:37
  But so today, I'll be joined by a guy named Eric Young, who I came across on Twitter, and I've been following what's happening, especially the last couple of months with the gold and silver markets, but really about the gold markets and and the big moves happening with gold. The rumors of thousands of metric tons coming in The United States, the discussion of an audit of Fort Knox, discussion of potential revaluation of gold, what's it gonna do to the gold price, what's happening to the London banking system, to the, LBMA, which is the, London Bullion Bullion Market Association, I believe, which is where a lot of the the transactions are happening over there. And so we're gonna be diving into a lot of this information. Now this is gonna be a very technical interview. And so if you're looking for a quick, you know, easy explanation of what's going on in in fifteen minutes, you're not gonna find it here.
• 1:33
  But if you have the patience to go through, it's it's will be about I think it's about an hour and a half long interview. What it will do and what Eric does is break down exactly what's happening with the gold markets. And he actually presents a lot of very compelling evidence that points to a very significant shift in the financial system. And a lot of what he puts out and, like, in a lot of this evidence paints a picture of Trump initiating a massive shift in the global financial system. Now a lot of this ties into the city of London and the the central banking system, and really the system that has enslaved America ever since the Federal Reserve came in.
• 2:26
  And what it when I came to at the end of this interview, which I'll be playing with you, is an understanding of how president Trump could literally be severing us from the city of London's financial control, and that's the big thing here. Obviously, a lot of this ties into the manipulation of gold price and why how are gold prices and silver prices manipulated through the paper promissory note market, and we're gonna be getting into that. And so there's a lot of details like that explaining what the COMEX is. It's actually very helpful, a lot of very useful information that Eric presents. But to me, what's most important is the bigger picture that's painted is that this financial system that's been enslaving America really for, you know, over a hundred years.
• 3:17
  This financial system, it seems to be is at its end, And a lot of the action, a lot of the movement of precious metals, a lot of the actions from these large central these large banks, these central banks indicates that there is a very coordinated strategy going on here to bring gold back into The United States while simultaneously destroying the London banking system, which we'll explain, and then at the end of that, then revaluing gold, which it's really a a brilliant strategy. Like, as as my guests say, we'll point out, it's you could you could call it five d chess. I mean, I think it's a very, very real five d chess when you look at all the moving parts and where this could head up head into. So I think you're gonna thoroughly enjoy this. Again, it is very technical, but I'm not a very technical person.
• 4:14
  And so I, you know, asked a lot of questions. And so I think that you'll be able to follow along in the same manner that I did. And I think Eric did a great job of not speaking to us as a financial trader or a financial expert, but in in speaking to us as people that understand these things that still have a lot of questions and still don't grasp a lot of the very fundamental concepts of what drives the the prices of gold and the different markets. And so this is, I think, hopefully, a very helpful and educational interview for you. So please enjoy the show.
• 4:50
  Mister Eric Young, it's great to have you on the show. Thank you so much for being with us today.
• 4:56
  Speaker 2: Thank you, Seth. It's a pleasure to be on your show.
• 4:59
  Seth Holehouse: Thank you. I first met you on Twitter, which is where I do a lot of my research, and it's also where I find a lot of experts. And I've been following precious metals for a long time. I used to be in the in the, you know, precious metals and and jewelry and watch industry before, well, long before doing podcasting. So I've got a little bit of information about it, but I'm still learning so much.
• 5:20
  And, obviously, for a lot of people that have been paying attention over the past three or four weeks, the topic of gold, paper gold, Fort Knox, you know, why is gold flowing out of Europe into America? These have become very mainstream topics, And you're someone I came across the past couple of weeks that I felt like, gosh, like, you really you get it, and you're able to explain things in a way that doesn't make me feel like I know nothing about this because a lot of these experts are talking about the chart analysis and and, you know, the the if it breaks out of here, this is gonna happen, and it's well over my head. So it's great to have someone like you that can help, I think, just make more sense of what's going on.
• 6:01
  Speaker 2: No worries, Seth. I can, try my best to answer your questions.
• 6:05
  Seth Holehouse: Absolutely. So, I guess, starting off, just give us a little bit of your background just just to get us going here.
• 6:12
  Speaker 2: Okay. So I was in the contract manufacturing business of Hong Kong and China, Southern China mainly, and I did it for over twenty years. So my customers are all over the world, basically. You know, the huge multinational companies that need manufacturing done to a certain specification, they come to me with the spec. I would, you know, take a spec, design the product for them if need be, go to China, quote the prices of different factories to manufacture up to that spec, send it back to the customer, customer approves it, I manufacture it with the factory, I arrange the logistics.
• 6:58
  So basically, I was the turnkey solution contract manufacturer for any sort of western corporation that needs help to offshore their manufacturing in China.
• 7:15
  Seth Holehouse: And then how how did you end up getting into finance from that?
• 7:19
  Speaker 2: Okay. So I was a I was an avid tech investor actually back after the GFC, after February the two thousand eight financial crisis. And as you know, the the tech companies did have a pretty good run back then. So I made a lot of money. But then in 2018, there was a not as big of a bubble, I would say, as the tech in The US right now.
• 7:51
  But there was a bubble in The with Chinese tech stocks. I was in it. I got out. Nothing imploded. And I started looking at alternative investment ideas and came across precious metals, that's how I got into it.
• 8:13
  Seth Holehouse: And so
• 8:14
  Speaker 2: From that point on. Okay. And and you know, the fact that Go ahead. Sorry. Go ahead.
• 8:20
  Yeah. Was just gonna say that the fact that Donald Trump started his first term in 2016 and forced Jay Powell to pivot, if you recall, with the interest rate keeping it at the parity and then cutting interest rate. That was when I made the decision to to focus on precious metals.
• 8:46
  Seth Holehouse: I see. I see. Yes. And so with what we've got going on here, and there's a handful of topics I'd like to to discuss with you to help you understand. But so what started out with the the news, I think this is probably early January, mid January about the, Bank of England going from, say, a three day delivery for physical, gold to a four to eight week delivery, which got a lot of people concerned about whether the gold was still there, whether they could fulfill those contracts.
• 9:21
  And that often you know, if you look at the same thing in a banking industry, right, you know, which which is fractional reserve, meaning that the bank only has to hold a fraction of the money you put into it, the idea of the bank run is is you know, if we saw a little bit happening back with Silicon Valley Bank, back when that bank collapsed, people, you know, going to get their money out realizing, oh, you know, the money's not there, basically. And going back into the scenes that, you know, a lot of us have seen in It's A Wonderful Life when there's the bank run, everyone comes to get their money, but there's no money there anymore. So there's been a lot of people discussing is could that be happening to the precious metals industry? And so before we get into the topic of why the gold might be coming to America, what's happening, what's happening with the LBMA, and some of those topics. Can we first talk about what it means to be the, like, the gold paper market versus the physical market?
• 10:11
  Because this is something that has taken me a lot of different interviews and research to start to understand. And if you look at the value of precious metals, and there's been a lot of different, you know, discussion about how the price is being suppressed. And I've heard a lot of experts that say, oh, silver should be at, you know, 300 ounce. Silver should be at 500 ounce. Gold should be at 20,000 ounce or whatever it is, but they're saying it's being suppressed through the flooding of the market with the paper silver instead of the real silver, which manipulates the supply and demand.
• 10:43
  But can you just explain to to me and and the audience just as if we're we're learning for the first time, what does it mean when someone talks about paper gold or paper silver, and how does that affect the the actual market value of those metals?
• 10:59
  Speaker 2: Well, that's a very good question, Seth. The Western gold and silver market is a predominantly paper and partially physical. Why do I say that? Both the LBMA and the comics.
• 11:17
  Seth Holehouse: So explain what are the LBMA and the comics for people listening.
• 11:21
  Speaker 2: Okay. The LBMA is London Boolean Market Association. And what it it says is an OTC market. Okay. Over the counter.
• 11:35
  What that means is that it's not an exchange. It's an association. What it does is it have a bunch of rules that it give these members to AbiAbi when they do these OTC transactions by themselves. So it's not exactly an exchange, but it does implement some rules on its members. That's what it does.
• 12:04
  The CallMax on the other hand is a is an exchange. It's a futures exchange. So you have futures contracts like for example, for gold right now, you have the February contract, which is expiring. Today is the last delivery date for the February contract. And then you have the March contract, April contract.
• 12:25
  Sometimes it skips a month, but you get my point. Right? It's a futures market. And you might think that's pure paper. No.
• 12:34
  That in at the ComEx, you can also take physical delivery and withdraw the metal from the exchange.
• 12:43
  Seth Holehouse: So futures being let's say gold is hypothetically, let's just say that gold is $3,000 right now announced for just an even number. So futures would be, I'm placing a bet on the future of this gold. So I might be, say, placing a short bet saying that I think that gold will be worth 2,500 in one month, or I might be saying I think gold will be worth 3,500 in one month, and I'm I'm kind of betting accordingly. Is that a a way to understand that? What if what the futures market means?
• 13:15
  Speaker 2: Well, you can you can think of it that way, but the original idea of a futures market is that you're buying a contract for something that is gonna be delivered in the future. So it's like a forwards contract.
• 13:30
  Seth Holehouse: Oh, I see.
• 13:32
  Speaker 2: Let's let's say you're you're a you're a producer of grain, let's say, right. I don't know if grain is on the comics, but let's say you're a producer and you want to sell the grain that you produce three months down the road, then you would put up a futures contract three months down the road and deliver three months down the road. Does that make sense there? Right?
• 14:02
  Seth Holehouse: Yes. So so
• 14:02
  Speaker 2: so basically, that's the same. It's partial physical, partial paper.
• 14:06
  Seth Holehouse: Right? See. Yeah. So with Grain
• 14:08
  Speaker 2: would just sorry. Go ahead.
• 14:10
  Seth Holehouse: I was gonna say okay. Make sure I'm I'm keeping up. So with grain, I'm a producer, and I know that my grain's gonna be delivered in three months. And so I will sell a futures contract saying, look, will sell it to you today for $50 a bushel, and you'll I'll be I'll be delivering it in three months. Now if for some reason, there's say there's a drought and grain prices go up to a hundred dollars a bushel, I've I've I've sold it at 50 a bushel, so I can't change that.
• 14:34
  But if if if grain goes down to, say, $25 a bushel in three months, I'm still selling it at $50 a bushel, and so I'll make more money that way. Is that more more so pretty in line with with how it works?
• 14:49
  Speaker 2: Yes. But you can also at the ComEx, you can also buy and sell these contracts without ever delivering
• 14:58
  Seth Holehouse: I see.
• 14:59
  Speaker 2: The actual rate if both parties decide to close the contracts by
• 15:03
  Seth Holehouse: cash. And
• 15:08
  Speaker 2: that's what they call the EFP mechanism, which is its full name is exchanged for physical, which is misleading because, like like I just said, it can be two parties negotiating off the exchange by cash settlement.
• 15:27
  Seth Holehouse: I see. So this is it it almost like what what we're looking into here is the kind of the beginnings of, like, the derivatives market, right, which is a massive, massive multi trillion dollar market, which is kind of placing it's almost like betting and on trades and trading on bets to the nth degree. Right? Runs through that scene in in The Big Short where they're explaining it in the casino, and someone says that they make a bet, then someone makes a bet on that bet, and they make a bet on that bet. So then it can kinda go almost endlessly.
• 15:56
  Right?
• 15:58
  Speaker 2: Yes. Correct.
• 16:00
  Seth Holehouse: Okay.
• 16:00
  Speaker 2: Okay. It can be pure pure paper bet if it if you settle through EFP by cash, or you can stand for delivery, And then you can withdraw the the physical commodity. So it can be both. So the problem that happened recently, like starting at the December, right after sorry, the beginning of the beginning of December, right after Donald Trump was elected, was that there were a bunch of really big physical gold buyers at the ComX who were standing for physical gold delivery. So this is out of the ordinary because in the past, before before the December, most of these gold contracts, futures contracts at the ComEx were cash settled by the EFP mechanism that I just explained to you.
• 17:06
  So all of a sudden somebody is saying, don't want the cash. I want the actual thing to be delivered. And that started you know, basically all the commotion that is going on right now. And to just to give you an idea of how much gold was imported into The US. Now this number that I got right now is from Stonex and BlueDianVault.
• 17:36
  These two companies are both LBMA members. And Stonex is actually a participant at the LBMA gold price fix. So the LBMA fixes the gold price two times a day at the AM and at the PM. And Stonex is a participant of that. So what the what the the number I'm about to give you has has credibility because these guys are insiders of this entire system.
• 18:12
  So they said that starting at the December till now, pretty much now, The US imported 2,000 metric tons of physical gold into the country. Now just to give you context, normally in the past, 2023, the US imported around three fifty tons of physical gold.
• 18:45
  Seth Holehouse: So 2,000 metric tons.
• 18:48
  Speaker 2: In February versus normally they do they do, like like in two and a half months, they did they did 2,000 metric tons. And normally, they do 350 tons in a year. So somebody said it's around 15 times. I don't have a calculator in front of me, but it's a lot compared to what they normally do.
• 19:20
  Seth Holehouse: Okay. And so that and so and that's a huge amount, kind of, you know, value. Right? So I'm I'm just doing some calculations. So at, say, just under you know, say at 2,900 per Troy ounce, that's I mean, it's you're approaching $200,000,000,000 worth of gold.
• 19:42
  At 2,000
• 19:43
  Speaker 2: Oh, 2,000 metric tons. Right? Yeah. So that gosh. So you're almost
• 19:46
  Seth Holehouse: a quarter trillion dollars worth of gold.
• 19:51
  Speaker 2: Yeah. I think you're right, Seth, because I was calculating how much gold Warren Buffett can buy with his cash position, and it's a little bit over what you just said. Yeah. It's around there. You're correct.
• 20:06
  So it's a lot. Right? And out of that 2,000 that Stonex and Booty and Boutes said that The US imported, we know for sure that approximately 700 metric tons was imported by the COMEX. Because we see that at the COMEX vote numbers. Okay?
• 20:30
  So those numbers are public. We can see that. 700 metric tons came for the Comax. And let's say 1,300 metric tons came in from OTC, which is over the counter.
• 20:46
  Seth Holehouse: Okay. That makes sense.
• 20:47
  Speaker 2: So that's what happened. Right? And and and like I said, normally a lot of this is paper settled. All of a sudden, these guys, you know, wanted all this gold physically. Now the OTC market is opaque.
• 21:02
  We don't we we don't see the details. They don't have no obligation to release any of the details to the public. But at the ComEx, we can see that the buyers and sellers of the physical metal. And it's just the usual suspects. It's JP Morgan, Morgan Stanley, Goldman Sachs, Bank of America, Barclays, HSBC, and they are on both sides of the trade.
• 21:36
  So we know these bullion banks are the ones who are doing this. Now who are the biggest net importers? We we we don't know. Because that information you see the in in and out, but there can be things that happen behind the scenes that we don't know about. So we know that all these boolean banks are involved, but we don't know which are the ones who are actually net in holding.
• 22:16
  Okay? Like for example, I have a list from James Anderson. He's an analyst of precious metals at SD Boolean, and it it shows you which Boolean bank is doing it for their house accounts or for their customer account. But the problem is when they say it's their house account, do you believe them? It's for themselves.
• 22:42
  They're not acting on behalf of a customer, for example.
• 22:46
  Seth Holehouse: I see. So if they We we don't
• 22:48
  Speaker 2: know that. Right? So
• 22:49
  Seth Holehouse: filling their vaults, which is also interesting because on February 20, Jamie Dimon sold almost 800 there's 800,000 shares of JPMorgan, which was about a quarter billion. Right? 232 hundred and $33,000,000 worth of his shares, which is just interesting timing that Diamond's dumping his JPMorgan shares. I think Berkshire Hathaway has, if from my understanding, the largest cash position they've ever held. So what we're seeing is more these bigger banks and these bigger players moving out of, let's say, the paper market into the physical and moving out of the stock market into you know, I'm not sure, you know, what Jamie did did with his his, you know, proceeds, but these are some big shifts happening from the major players that they they see things that we never see.
• 23:42
  Like, we'll we'll see them a year after they see them. So it's just interesting timing of all this.
• 23:48
  Speaker 2: So I'm gonna tie this in with the we have been talking about the Connex. I'm gonna tie this in with the LBNA.
• 23:54
  Seth Holehouse: Okay.
• 23:55
  Speaker 2: Why the two places connected? So like I said, all these bullion banks are importing physical gold and they're receiving this physical gold by delivery at the the convex bus. We see those numbers. So how does that connect with the LBMA? Well, like I said, Seth, there's this thing called the EFP mechanism.
• 24:24
  And like I said, the don't let the name deceive you. Because a lot of it in the past was paper to paper, right? I said that. But in this particular case, because of the huge physical demand from these Boolean banks who are standing for physical delivery, the Boolean banks are actually taking metal out of the LBMA and delivering it to the COMEX. So remember the 700 metric tons that I talked about that came into the COMEX most?
• 25:07
  Most of that was from the LBMA.
• 25:10
  Seth Holehouse: I see.
• 25:11
  Speaker 2: Because we know the numbers. We know the numbers. Like Reuters came out with an article at the January saying that the LBMA exported approximately 400 metric tons of physical gold to the So if we just add another 20, it's pretty close to seven. It might not be 700, it might be 600, but we're getting there. So most of that is from the comm x.
• 25:44
  And because of that huge demand, like like you said earlier, the LVMA delivery time went from three days to a month or two months. So that's essentially what happened.
• 26:01
  Seth Holehouse: I see. So all this movement that's happening, all this, you know, this this, you know, shuffling of capital that's happening at the at the very high level. Now I also know that the American retail market is very different from the Asian retail market. You know, I, you know, used to spend quite a lot of time over in Hong Kong and, you know, actually selling, you know, mostly, you know, diamonds and jewelry, but also precious metals into the Asian market. And they whether it's, you know, Indian, you know, Indians or Indonesians or, you know, built from Singapore, China, Hong Kong, they view gold very different differently than the Western market does.
• 26:39
  Like, every family will have it's part of the wet wedding dowry. Right? They'll have, you know, 24 carat or 23 carat gold necklaces, and it's a big part of their culture that's been stripped away in America. And really, the only big purchase like that in America is what we've been sold is the diamond. Right?
• 26:55
  The diamond is forever, and people, you know, I used to, you know, buy, you know, buy diamonds from people that they they buy all these, you know, investment grade diamonds. They they'd lose half their tooth, you know, two thirds of their money on because the diamond market, you know, that it's a racket, right, to to kind of simplify it. So but what what do you think these people know? What what do you think would cause somebody to say, exit the the the cash settlements and say, look, you know, instead of taking, you know, a hundred million dollars in cash for this deal, I want a hundred million dollars in bullion. Why why the big shift after Trump getting in to everyone now taking physical delivery and almost, you could say, scrambling to fill their own vaults with gold?
• 27:41
  Speaker 2: Very, very good question, Seth. But before we go there, let me give you some background on the cash settlement, like the EFP mechanism that we just talked about. Why the banks did that in the past? Like, why there's so many EFPs flying around? Well, the bullion banks traditionally in the past for decades, they traded this thing called the EFP trading pair.
• 28:11
  So what that is is they would short the COMEX futures market for gold, and they would long the LBMA, what they call paper gold promissory note market. They used to call it physical, but it's not because they can't deliver right now. Right? It's it's t plus 30, t plus 60. So I call it the paper gold promissory notes market.
• 28:43
  So they were short the climax, they were long the LBMA. And then normally there would be a what they call a positive EFP spread. What that means is that the price of the promissory note of gold at the LBMA would trade at a high price versus the price of the gold futures contract equivalent, which is basically the current month at the COMEX. So do you see how that works? It's like an arbitrage.
• 29:26
  Right? Because you have two places with different prices.
• 29:30
  Seth Holehouse: I
• 29:30
  Speaker 2: see. So they play that, and they were making money. And they would make a lot of money because you remember when you asked me like about the paper market versus physical? Some estimates, as I said, from experts, because this of course, the ratio changes, you know, depending on the time period. Right?
• 29:50
  But at the craziest, of times, the ratio can be up to several hundred paper contracts versus one physical at the LBMA.
• 30:03
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• 31:22
  Speaker 2: And the most conservative estimate of paper to fiscal at the ComEx that I've heard is 10 to one. So my point is you see how big this EFP trade is. Right? The the paper trade, the arbitrage.
• 31:42
  Seth Holehouse: So basically, let's just say it's one to 100, right, that that
• 31:47
  Speaker 2: At the LBMA? Let's just say one to 100, the LBMA. Yes. I'm using we use that as a model, and one to 10 at the climax. Right?
• 31:54
  So it's a huge trade that is pure paper, not physical in the past. Okay. Like before before the events that started when Trump got elected. That was the norm. And then what do we say?
• 32:12
  Trump got elected. All of a sudden, there were these bullying banks. They don't want to do this paper anymore. They want the physical metal. That's what happened.
• 32:22
  This is a fact. We're seeing that still right now. So what happened? All of a sudden, because of the demand at the Comax, the Comax price for the current month contract became substantially higher than the price of the promissory gold promissory note at the LBMA. So that arbitrage reversed.
• 32:52
  It became negative that spread, the EFP spread. Do you have a question for me at this point? No. No.
• 33:04
  Seth Holehouse: I'm I'm just I'm processing
• 33:05
  Speaker 2: step by step here.
• 33:06
  Seth Holehouse: No. No. This is this is great. This is great because this is all Okay. It's this is really helpful.
• 33:10
  And I I think I'm really lucky that I get I get a chance just to ask all these questions because I see all this
• 33:15
  Speaker 2: No problem.
• 33:16
  Seth Holehouse: Information. And so so basically
• 33:19
  Speaker 2: I'm trying to explain it step by step
• 33:20
  Seth Holehouse: right now for you. Okay.
• 33:21
  Speaker 2: So that you understand what's going on, like, history, and then we go forward to what's going on right now. Right? But, like, yeah, please please ask me the question.
• 33:29
  Seth Holehouse: Oh, no. I I think I'm following. So, basically, the this this price reversed where before
• 33:35
  Speaker 2: Reversed. The Because of the huge demand.
• 33:37
  Seth Holehouse: So the shorter futures contracts used to be worth less at the COMEX than the, physical or sorry, the paper primary sorry, note long, long positions that were at the LBMA. So but now
• 33:52
  Speaker 2: Correct.
• 33:52
  Seth Holehouse: Because everyone is starting to demand physical delivery instead of cash settlement
• 33:57
  Speaker 2: At the common. The common. The common.
• 33:59
  Seth Holehouse: Futures contracts. What's happened is now the futures contracts have reversed, and now they're now more valuable than the promissory notes over in the LBMA.
• 34:10
  Speaker 2: Yes. Okay. So this is like, you know, we're talking about what happened primarily in the last two and a half months, not counting today and yesterday, okay? We're gonna get to today and yesterday, what happened. Is the gold price as we're talking, the gold gold price is dumping, right?
• 34:27
  So something new happened. But we're focusing on what happened right now. Right now we're focusing on what happened in the last two and a half months. Excluding what happened in the last two days. Okay?
• 34:39
  So let's let's stick to that. Okay.
• 34:42
  Seth Holehouse: Okay.
• 34:43
  Speaker 2: So where we are right now is yes, the promissory note at the LBMA, all of a sudden because of the demand at the COMEX, is worth less than the futures contract of the current month at the COMEX. So so these put in banks are losing money because their trade is arbitrage. Right? It's to short the ComX and long the LBMA. So if that if all of a sudden the ComX contract price is more expensive than the equivalent LBMA contract price, they're losing money.
• 35:22
  See that? Yes. And they lost a lot of money in in like on paper on paper in the last two and a half months. So why is that important? Because that kicked off what I called a EFP doom loop.
• 35:44
  I I I coined that term. Okay? EFP doom loop. Why do I say that? Well remember, Seth, if you are a boolean bank and you're holding this promissory note at the LBMA, and the price of your promissory note is dropping because before it was t plus three, like you said, three days.
• 36:08
  Now it's t plus 30 or 60. Your paper promissory note is dropping in price because it's no longer the original contract that you bought in realistic in real terms, right? Because originally you bought a contract for immediate delivery in three days. All of a sudden, seller is saying, you might get it in thirty days, you might get it in sixty days, you might not even get it in sixty days. So what happens to the paper that you're holding?
• 36:37
  It's plummeting in price. Makes sense?
• 36:42
  Seth Holehouse: Yes.
• 36:43
  Speaker 2: So on top of the arbitrage that just based on the supply and demand from the comics making that spread, you are your paper is even losing more money. So what happened? Well, people rushed in to try to get even more physical gold at the LBMA. Because if you don't just do paper and paper settlement and you get the actual physical, the physical goal didn't lose any value. It's only the paper promissory note that is plummeting.
• 37:19
  Does this part make sense?
• 37:21
  Seth Holehouse: Yes.
• 37:22
  Speaker 2: Yes. Well, because no one trusts No. No. No. No.
• 37:26
  No. No. No. No. No.
• 37:28
  No. It's yes. Nobody trusts the promissory note. Therefore, the promissory note is dropping in value. And therefore, as a holder of the promissory notes, if you have connections, now this is just speculation on my part.
• 37:43
  Right? And you can skip the queue or you can actually you know for sure that you get the gold in thirty or sixty days. You want the physical gold. Because the physical Gold didn't drop in value. Does that part make any sense?
• 37:58
  Yes. So more and more people, it's the doom loop, right, because of the original conditions that I outlined to you, more and more people want to stand for physical delivery at the LBMA. Therefore, the crisis deepens. They simply cannot get the physical goal. As a matter of fact, a lot of industry experts like like Josh Fair from Scottsdale Mint, he noted that the Swiss refineries are already fully booked for the entire year.
• 38:36
  So they cannot do the additional like they cannot deal with the additional gold demand from the LBMA right now. So what did Bloomberg say just half a month ago? They reported that actually it's both Bloomberg and Reuters reported this, that the LBMA and the Bank of England is urging its LBMA members to ask foreign central banks to let them borrow gold to deliver. So foreign central banks in this trade is the backstop because there's no more free float floating gold at the LBMA for delivery.
• 39:26
  Seth Holehouse: I see. Okay. Yep. Makes sense.
• 39:28
  Speaker 2: So this is part of the
• 39:30
  Seth Holehouse: the inventory that was normally there for your typical daily trading is now sucked dry. And so now the LBMA is saying, go why don't you go ask these big foreign banks or, you you know, central banks and try to try to bring try to borrow from them to bring gold back into the LBMA. Is that correct?
• 39:49
  Speaker 2: Correct. Okay. So the so the central banks go like they actually at the Bank of England. Like, the Bank of England both are the LBMA both. It's the same vault where you keep the gold.
• 40:02
  It's just that there are there's what we call unallocated gold and allocated gold. Unallocated gold is gold that basically you store at the Bank of England. And they like the contract what might say you get it back in ten years. But in that ten years, the Bank of England can do whatever with your gold as long as they return the same weight and purity of gold to you in ten years.
• 40:39
  Seth Holehouse: Makes sense. Okay.
• 40:40
  Speaker 2: Makes sense. And the central bank's gold that I'm talking about right now, they are the allocated gold. So allocated gold means that it's all they all have serial numbers. They all like, you know, recorded. So you can't like LBMA cannot touch it.
• 40:57
  That's why they have to beg the foreign central banks to release this gold into unallocated so that they can ship it to The US.
• 41:10
  Seth Holehouse: Okay. That all makes sense. Okay. I'm with you.
• 41:13
  Speaker 2: That all makes sense. You're with me. So that part is the doom loop, right. And more people, like I said, are standing for delivery. And they are now begging foreign central banks to release the gold to ship to The US.
• 41:31
  So back, looping back to your original question, you asked me who I think the big buyers are. You see that like this all this is creating a crisis at the LBMA. Right? I mean the LBMA had to had to either host a webinar on on the Internet to explain why they have this shortage and crisis. And they said a lot of stupid things like, I can't believe they said it, but they said gold weight is pretty heavy.
• 42:10
  That's the reason of of delays. They're saying that gold is heavy. I'm not kidding you, Saseth. They said it. And then they said that the trolleys are difficult to operate at the at the LBNA.
• 42:32
  Seth Holehouse: Bogus excuses.
• 42:33
  Speaker 2: So you can see there's a yeah. So all these excuses, which are ridiculous. Right? And basically, the way I see it is that the gold buyers at Economics, which are, by the way, like I said, bullion banks, they are hanging the LBMA out to dry. It doesn't make any sense because the LBMA composed of members who are these very same boolean banks.
• 43:03
  Does that part that part make any sense? It's the same people. There's a group of boolean banks that makes up the LBMA, and there are others too, right? But the big boys at the LBMA are the JPMorgan, Goldman Sachs, HSBC, Standard Chartered, Bank of America, etcetera. So so you're asking why is this happening?
• 43:30
  Why is this happening? It doesn't make any sense.
• 43:31
  Seth Holehouse: Right? Because I I think I referred I heard you in one of your other interviews, you you refer this as almost like a public execution of of Yeah. It is. Part of this system.
• 43:41
  Speaker 2: Well, now now now you hear my detailed explanation, isn't it? It doesn't make any sense. Right? It's the the LBMA consists of these same guys who are publicly executing the LBMA at the climax. So none of this make any sense.
• 43:59
  So my thesis is that there must be external force right now that is asking some of these Boolean banks to stand for physical gold delivery at the COMEX that started this doom loop at the LBNA the COMEX. EFP, right, doom loop. And based on what we know with recent announcements of Donald Trump saying that his administration wants to audit Fort Knox, and the fact that Judy Shelton, is very close to the Trump administration, has been saying that she wants to put, she's proposing that the US government put physical gold into long duration US Treasury bonds, doesn't it make sense that the external force that is asking some of these bullion banks to take huge physical gold deliveries at the ComEx, Is it doesn't it make sense that this external force might be uncle Sam, might be the US government doing it? Because like you said, it's a lot of money too. Right?
• 45:12
  $200,000,000,000, something like that. You calculated it.
• 45:19
  Seth Holehouse: So, yeah, it it I mean, it seemed like it would it would have to be something coordinated to do this because Yes.
• 45:26
  Speaker 2: Yes.
• 45:27
  Seth Holehouse: If I'm if I'm not mistaken, these same Boolean banks by playing both systems. Right? What you've explained is that the same banks are taking know, demanding physical delivery, you know, at the COMEX are the same banks that were heavily, you know, central to the operations of the LBMA. So they in essence, there must be something that's driving this because I imagine that these big bullion banks have made money off of the fact that they can manipulate both markets, But that's coming to an end. So something is shifting here.
• 46:03
  Speaker 2: Well, they don't call it manipulation in the past, but it is. Right? Obviously. But they call it legitimate hedging. Or like, you you can call it like an arbitrage trade.
• 46:14
  Right? They would have huge long huge concentrated short positions at the COMEX. And then they would have the equivalent long position at the LBMA, like I said. And it worked. It's it's basically like skimming skimming off the top.
• 46:30
  You know what that means. Right? Skimming off the top? Yeah. That's what this is.
• 46:34
  That's what they did for the longest time until it doesn't work anymore. Because some of the bullion banks out of their ranks decided to say, I want the physical gold. The music has stopped. Don't know if you've seen that movie, The Margin Call. Have you seen that movie with Jeremy Irons?
• 46:56
  Yes. You recall, right? Remember that scene where basically he said the music stops here because they were trading CDOs and is buying and selling continuously. Right? CDOs.
• 47:09
  And they saw the the crisis that is brewing with the subprime market. So they were the first bank that stopped. They only they did sell only, sell orders only. No buying. This is kind of like reverse of that.
• 47:26
  It's buy physical only. No selling. So looking these bullying banks. Right? Kind of.
• 47:34
  Right? You see you see the situation?
• 47:37
  Seth Holehouse: Absolutely. So help help me make sense of this, though, is that, obviously, you can see how there an ounce of gold is a truly it's a commodity. It's it's it's like a barrel of oil. You can't magically make a million ounces of gold appear. You can magically make a million ounces of paper contracts appear.
• 48:03
  Right? You know, that's the thing with the the the derivatives is that Yes. You can just sit on, like, on a keyboard and just keep hitting a zero until you can you you get to a trillion dollars if you want to, if if you can convince enough people and banks to, you know, kind of buy into it, right, which is what we that's why we have this, you know, hundred, you know, trillion dollar plus derivatives market. But if considering that gold, physical gold is truly a limited resource, And now you have all this huge shift in taking delivery of the physical gold. Why is it that gold has still been bumping up against $3,000 an ounce and even to you know, today, it's down, you know, one you know, a little over 1%.
• 48:46
  Why? Like because you again, with my thinking, it's like, well, it seems like the whole paper market is starting to crack, and if more pee and more and more people are rushing in to get to physical. I know that there's a lot of retailers, especially retailers over in Asia that are running out. They they no longer have, you know, one ounce bars or, you know, or hundred gram bars or whatever. So how is it that the gold price isn't just going up because of this?
• 49:17
  Speaker 2: Okay. That's a good question. Right? So I come I use an analogy. It's actually on my X account.
• 49:24
  I posted a fire engine, like, these fire trucks. Right? The firemen ride fire firemen, like, you know, people who put out fires. Right? And on the fire truck, you have a bunch of clowns.
• 49:38
  And I call that the LBMA Fire Brigade. Why do I say that? Because that's exactly how the LBMA works. They have a thin layer of gold and silver, physical. And whenever there's a fire, whenever the price wants to go up, they would deliver that physical gold and silver.
• 50:00
  They do that anyway. Right? But they would use a hose and they will hose it down with paper. What I mean by that is right now, I think what they're doing now this is speculation because I don't have, you know, real time data on the situation. Right?
• 50:17
  But what they're probably doing is that they're flooding the the market with paper at the Commax and also at the LBMA. And the also, at the same time, I don't want to dismiss this completely. During this run up, there were a lot of CTAs, like managed money. Like CTAs, commodity trading advisors that basically handle clients' money, managed money. Right?
• 50:53
  And managed money primarily composed of high net worth individuals, family offices, institutions, and hedge funds. So they would use these CTAs to help them trade paper, gold, and silver on the Connex. These guys, I believe, are net long in the last two months. Makes sense, right, because, you know, they they trade by momentum, and the gold price, silver price was going up. So I think what happened is that a lot of them are taking profit.
• 51:33
  And at the same time, the bullion banks saw the opportunity to use this they saw may maybe the movement momentum has changed, And they are taking the opportunity to to flood the market with more paper. And at the same time, they're rinsing these CTAs and hedge funds. So that's exactly what is happening right now. But I tell you, Seth, there's a really strange phenomenon that is occurring right now from this. Okay.
• 52:09
  Remember what I told you about the LBMA paper gold promissory note versus the ComX futures contract? Yes. Well, right now, because of what's happening at the LBMA, The LBMA contracts are all forward contracts. Like, they're basically promises of a of a piece of gold or a bunch of gold that you might get or you might not get. But the price of the gold at the Comax so far, right, because they abide by Comax rules and they have, like I said, last delivery day, first delivery day, so they have to abide by these rules.
• 52:50
  Those are essentially spot gold because you get your gold for sure real time, right, at the climax. But guess what? Remember that doom loop I was talking about? At the I think at the highest point of negative spread, these like bullion banks or whoever is trading these EFP pairs, they were losing $60. I heard 80, but let's let's just take 60.
• 53:20
  They were losing $60 per pair of like this EFP pair. And now, I just checked this morning, it's positive 20 let's just say $25 because it fluctuates, right, with the with the futures price. And also the l b m a a m p m fixed price, right, off this go off gold. So right now, let's say it's positive 20 to $30. So you know what that means, Seth?
• 53:49
  It means that they are telling you that there are crappy promissory notes at the LBMA that might not get you the goal, you might or might not get the goal in thirty days or sixty days, is worth more than the physical goal that you get at the comics. Does that make any sense to you? And on top of that, the LBMA don't have any readily available gold for delivery. Right. Even though they say if you go on the LBMA website, they say they have 8,000 plus 8,000 tons plus of gold.
• 54:27
  But obviously, they don't have it because they can't deliver. Whereas at the COMEX, there's almost a thousand, I believe even slightly more now, thousand metric tons of gold at the COMEX right now. So they're telling you that the exchange with a thousand tons of gold ready to deliver, the price of their current month contract is worth less than the LBMA where there's no gold, and you might or might not get it in thirty to sixty days.
• 55:00
  Seth Holehouse: So that doesn't make sense at all.
• 55:01
  Speaker 2: You know how crazy that is? Yeah. Because like, I think that's first of all, I think that's temporary. And second, that shows you how bad the how crazy the paper manipulation is. Mean, what what more proof do you want from me?
• 55:18
  Right? It's right there. Yeah.
• 55:20
  Seth Holehouse: So looking at the Sorry. Analogy Yeah. Of the fire truck, where the LBMA Yes. Is they see a fire. Right?
• 55:27
  The fire is gold kind of breaking out. Right? Everyone's not wanting it. They they see this almost like they see the early stages of what we'd look at as like a bank run. Right?
• 55:36
  There's a run on physical gold.
• 55:38
  Speaker 2: Yes. Everybody wants gold. Yes.
• 55:40
  Seth Holehouse: Exactly. Yes. And so they can use their fire hose full of these promissory paper notes
• 55:47
  Speaker 2: Paper.
• 55:47
  Seth Holehouse: Right? Yes. To to dilute the dilute the market, flood it with, you know, this perceived there's a lot more gold than there really is, right, through the through these these funny paper But what happens when, a, they run out of water or they run out of that, or b, when everyone realizes that the water is not even real water. It's just air that they're that they're blowing at things.
• 56:13
  Speaker 2: Well, I'm gonna get into something that's my pure speculation educated speculation, by the way, based on all you see, I'm not lacking any evidence because I got tons of evidence evidence, right, from what I'm seeing right now. But what I think is happening is that this is a bunch of Boolean banks versus another bunch of Boolean banks. So this is not, you know, small investors like me and you, or a family office versus the bullion banks. Because the small investors, they're getting rents right now at EcomEx, Like the CTAs, right? The people who manage their money.
• 56:54
  The CTAs are getting rents. So this is Boolean Bank versus Boolean Bank. And we go back to your original question. Who's who's behind these Boolean Banks that is compelling them to like basically dislocate themselves from their normal methods of operation into doing this? To essentially, I would say almost in this in reality, they're destroying the LBMA.
• 57:29
  Why why would they do that? Like I said, going back to YSET, I think it's on Khuzan pushing them to do this. The US want to repatriate gold back into US jurisdiction. And that's why you see all these strange phenomenons that are going on.
• 57:51
  Seth Holehouse: And so why do you think The US is repatriating all this gold? And how does this, like so what I'm seeing right now is there's this frantic battle going on, you could say. And the LBMA seems like it's fighting for its survival. Like, it it's under attack. It's being drained of its of its own blood.
• 58:22
  And so it's being drained by uncle Sam. Right? Kinda following this this logic.
• 58:26
  Speaker 2: Yes.
• 58:27
  Seth Holehouse: So Yes. What happens when all that blood is drained out and and and everyone knows it's dead because they you know, the the the illusion's gone. What happens and why would the US government be doing this? And and and what would their end goal be for doing this?
• 58:47
  Speaker 2: Eventually, I believe that the LBMA paper promissory, no contracts, instead of having a premium, like, now, today, will be in humongous discount. Like maybe even exceeding 5% discount. And when it does that, eventually people will stop going to the LBNA. Because if it's at a 5%, ten % discount, there's a possibility that if you're not well connected, you're not gonna get your physical growth. Like they might actually do a technical default, meaning that only people who are connected, boolean banks, can get delivery of their physical gold.
• 59:37
  Whereas if you are not connected, you go to the NBLBMA. You might be deferred six months to a year, which is essentially just basically telling you to go somewhere else if you're a business and you need the physical gold. That's
• 59:56
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• 1:01:26
  Was it now that all the conspiracy theory theories are proving true? Do you think that obviously, we saw this huge shift when Trump after after Trump won the election, and especially once he got into office, this this activity accelerated. We know that the the city Of London banking system, the Federal Reserve, they've they have, in a lot of ways, managed to enslave the the borrowers. Right? It's it's a whole system of usury.
• 1:02:00
  Right? That they've they've built this this system of, you know, kind of unlimited, you know, money printing, etcetera. A lot of it is is rooted in the city of London and and the the financial system there. Do you think that part of what we're seeing on a much bigger picture is The United States or really Trump and his what he's doing, breaking away from that system and and and breaking that system in the process?
• 1:02:32
  Speaker 2: I I really think so, Seth. I think that The US, like it or not, always works in partnership with The UK, with the city of London. But the city of London, the British, they are not very good allies. What I mean by that is they would say one thing, but they would do another. They would do another thing behind the scenes to undermine American interests.
• 1:03:09
  Like, look at what's happening at the Ukraine right now. The British government is doing something that is completely opposite of what the Trump administration wants to do. They want to continue this war indefinitely. They want to escalate it. So I think the breaking of the LBMA and the BOE is part of that.
• 1:03:35
  And I think Trump, Donald Trump and Scott Bessant wants to bring back the pricing power of physical gold back to The US completely without interference from the city of London. And that is the reason most likely, that they are doing this public executions of the LBMA. And may I add, Seth, why do I keep saying that it's a public execution? I explained to you the mechanics of it. But let me explain a little bit more.
• 1:04:17
  If these big gold buyers, these these big bullion banks, let's say they didn't buy the gold through the COMEX, they bought it directly at the LBMA, then what would happen? Their buying wouldn't affect the COMEX gold price, would it? Because they didn't buy at the COMEX. They bought it at the LBMA. So what I'm saying is that they could have bought the physical gold discreetly without going through the co max to blow up the EFP mechanism for the entire world to see.
• 1:04:55
  But they chose to do that. Why is that? And then mainstream experts are telling me that this enormous gold buying is all about the potential Trump tariffs on Canada and The U and Mexico. I have two questions for them. Number one, why is it that this huge gold buying started almost a month and a half, almost two months actually, before Trump announced the tariffs, potential tariffs on Mexico and Canada.
• 1:05:35
  Like I said, it started at the end of this beginning, sorry, of December. So that's almost two months before Trump announced the tariffs on Mexico and Canada. Why is that? So that's suspicious. It doesn't make any sense.
• 1:05:50
  Somebody I consider that person a LBMA show, told me that the market front runs policy. Really? I mean, like it wasn't even decided at that point. Donald Trump hasn't been inaugurated yet as president. So anyway, that's point number one.
• 1:06:14
  Point number two is, Seth, guess how much physical gold The US normally imports from Mexico and Canada? Take a wild guess. A wild guess? I mean, maybe maybe
• 1:06:36
  Seth Holehouse: what? A couple hundred tons a year?
• 1:06:39
  Speaker 2: No. No. Way less. 120 tons approximately in 02/2023. So you see the dislocate here?
• 1:06:49
  Seth Holehouse: Yeah. It doesn't make sense because that
• 1:06:51
  Speaker 2: is Tariffs on this. Tariffs, why would they import 2,000 metric tons so good to cover one twenty from like, you know, that they normally import from Canada and Mexico. It doesn't make any sense, right? If you're covering for let's say all that go from Mexico and Canada no longer is flowing into The US, right? So you have a deficit of 120 metric tons.
• 1:07:23
  But you're in for 2,000 tons to cover for that 120 tons deficit. It doesn't make any sense. Even let's say, I don't let's say somebody who don't believe in the 2,000 tons figure, which I think is very funny because, you know, like I said, the Stonex and Bullying Balts are very reputable players in this industry who are LBMA members. But let's say we don't take that number. We take 700 tons of imports from the ComX, and we add, let's say, just 300 tons on top of that.
• 1:08:04
  Because there is OTC import that exists. So let's say it's thousand in the last two and a half months. So that's a thousand metric tons of physical gold imports to cover for a potential deficit. Might not even happen of 120 metric tons of combined gold imports from Mexico and Canada. Does that make any sense to
• 1:08:29
  Seth Holehouse: you? No, not at all.
• 1:08:30
  Speaker 2: They're arithmetic. So in my opinion, that narrative is just to confuse us, to mislead us. It doesn't make any sense. So like I said, I go back every single turn I make. I eventually go back to the US government being the, big gold buyer behind the scenes who is telling these US bullion banks to do this.
• 1:09:01
  Every single yeah. Sorry. Go ahead.
• 1:09:03
  Seth Holehouse: No. Okay. So would you say that the we'll call it manipulation for for conversation sake. So would you say that
• 1:09:10
  Speaker 2: Okay.
• 1:09:10
  Seth Holehouse: The manipulation of the gold price, which really I I like the the fire truck analogy. Right? The fire truck is is is the tool they use to manipulate the gold price and and to keep it down. Yes. So if that fire truck so if if Trump, you know, does a drone strike on the fire truck, and the fire the fire truck is no longer available to do that and no longer able to flood the market with paper promissory notes as a way of suppressing the gold price, if that mechanism breaks, which it makes sense that the US government would want to have as much gold as possible back on American soil before that mechanism breaks.
• 1:09:54
  What Yes.
• 1:09:55
  Speaker 2: So you you made a good you yeah. Sorry. You made a very good point. You made a very sorry sorry, Seth. I because I wanna jump in.
• 1:10:02
  Please. You made a very good point. I don't wanna miss it. You know, what's funny is that during this time period when they're still buying, the Boolean banks that are standing for physical delivery at the Comax, like huge physical deliveries or OTC, you know overseas, you know importing physical gold into The US. They actually don't want the physical gold price to go up rapidly, which is exactly what you said, right.
• 1:10:31
  Why would they? They're still buying. So this is actually a very intricate operation that they're conducting that I believe they're having a lot of success. Because that's what you see. You see in the gold price, it peaked a bit and then now dropped a bit.
• 1:10:51
  It's trading within range. And they are still importing. Unless the inflows of physical gold have stopped in the month of February, I don't see any change to the to the situation. So I tell my followers on X. That's what you got to be looking at.
• 1:11:13
  Everything is just noise. Because we, like I said, paper volumes, paper trade, like as outsiders, we don't know exactly what's going on. But the physical flows as imperfect as the numbers may be, we can get a good at a good idea of what's happening based on the physical gold flows, and also the delivery time duration at the LBMA.
• 1:11:45
  Seth Holehouse: So and this makes sense. Right? Because if The US is bringing all this gold back, it's in their best interest during the window where they're they're buying up as much gold as possible. It's obviously in their best interest for the for the price of gold to be low and to not be affected by all of their buying, but
• 1:12:05
  Speaker 2: In range. In range. They don't want it to be like, they don't want it to dump because if they're going to use the gold down the road, order the gold, use it, you know, revalue the gold mark to market. They want it to be high, but before they actually finish getting enough gold back into The US, they don't want the price of gold to run up to let's say $3,200. Right?
• 1:12:30
  They want it to be like cap in caps in range, which is exactly what is happening right now. It's just in the range. It's it's in the box basically of a hundred hundred and $50 up and down.
• 1:12:45
  Seth Holehouse: And so let's look forward a little bit, and let's just say that they have finished this process or or, you know, the the the fire truck is out of its fake water, and and and the whole system starts to really unravel. And The US now has amassed this this huge amount of gold draining it out of the city of London, draining out of other places back into The United States. At that point, let's just say that the, you know, that this particular operation is over, and the LBMA is is on its deathbed, and it has lost its ability to manipulate these these these markets. What do you think the gold price would go to? Like, once it's, I guess, more true or more more more accurate, indicator of the real supply and demand of gold.
• 1:13:39
  And once it's no longer being manipulated by LBMA or by, you know, potentially the US government who wants to keep it within that box you mentioned, during this this buying spree, where where could gold price go to?
• 1:13:52
  Speaker 2: So the annual gold mining production is around 3,600 metric tons. So that's all the mines combined all over the world. They produce 3,600 metric tons of physical gold. China at the SGE, which is the Shanghai Gold Exchange, it delivers fourteen fifty metric tons of physical gold to its civilian markets. Why do I use that number?
• 1:14:24
  Because China doesn't really disclose its import numbers. It's very secretive. Okay. So we can only rely on the SG delivery number or physical gold to a civilian market. So let's add another, let's say, 505 tons of physical gold imported by the Bank of China, which is the central bank in China.
• 1:14:48
  Why do I use that number? Because this precious metals analyst called Jen Gold on X, and he is very knowledgeable. He looks at The UK import export market figures. He has documented that the Chinese Central Bank actually imposed approximately 50 metric tons per month in the last year. So I'm I'm taking I'm taking that number, taking giving it a haircut, let's say 500.
• 1:15:21
  So altogether together, China is importing 2,000 metric tons. India imports a net of 700 metric tons. So right there, Seth, that's 2,700 metric tons. Right? Then if we
• 1:15:36
  Seth Holehouse: add in less than a thousand for the rest of the world.
• 1:15:40
  Speaker 2: Yeah. But let's let's continue with story. Yes. The US just imported 2,000. Let's say I cut that in half.
• 1:15:46
  Let's say 1,000. But that's only two and a half months. So if it doesn't stop, it's going to be at least 2,000 for the the year of 02/2025. Right? So let's say 2,000 for The US, Two Thousand for China, that's 4,000.
• 1:16:01
  Seven hundred from India, that's 4,700. The global like, the rest of the world combined, let's say 1,000. So that's 5,700 metric tons of physical gold that the entire world, let's say 6,000, because I haven't even included the rest of the world's central banks, which is, I believe, approximately probably 700. Right? But let's take a haircut off that.
• 1:16:35
  And let's say the entire thing combined is 7,000 metric tons.
• 1:16:43
  Seth Holehouse: Which is double. What Which is
• 1:16:45
  Speaker 2: double of of of your mining mining output. Right? So what is the solution for this? The only solution is price. Price solves everything.
• 1:16:59
  The availability of physical gold is a function of price. So if you ask me, I think the US government is actually very ingenious. What it's gonna do, it's probably going to audit the gold at Phonox. And maybe at the same time, it'll do Denver, the Fed, Vos, and New York, and West Point as well at the same time. Because that's where US government gold actually resides.
• 1:17:31
  The 8,133 tons that they say they have. It's not only at Fort Knox. It's at all these places. Right? So they do the audit at the same time of all these votes.
• 1:17:46
  And then what's the next step after they do the audit? They would revalue the physical goal. And the way I see it, and I'm not saying it out of the blue because Judy Shelton actually said it. She said the US government is most likely going to revalue the physical gold that The US has, the 8,133 metric tons mark to market. You might ask me, Seth.
• 1:18:13
  You might ask me, why why are they if they're revaluing it, why are they revaluing it mark to market? Why don't they just revalue it to like $50,000? Then the US government is rich. Right? US government just, you know, that asset is worth all of a sudden worth a lot more.
• 1:18:33
  Right? Where is it versus what is a statutory price at the US Treasury is right now, which is $42.22. Why wouldn't they? Well, if they do that, what happens, Seth? It means the US government have to buy print money.
• 1:18:55
  It means the US government is broke, right? The US government will have to print money to buy any physical gold that anyone would want to sell it to it, to the US government for $50,000 to maintain the price of gold above $50,000. Does that make any sense to you, Seth? Yeah. Like if they were to revalue $2.50, right?
• 1:19:21
  They must buy it, right, like to maintain it. But what if they do it mark to market? That's the natural equilibrium. The gold the physical gold flows internationally will not change. So it's very unlikely that the US government will have to defend a mark to market revaluation of physical gold.
• 1:19:44
  That's why they probably would do that. And then after they do the mark to market revaluation of physical gold, what might happen? Well, did you know, Seth, that most of the world, especially the BRICS countries, the global South, they were already stacking a lot of physical gold as a alternative reserve asset next to the US treasury bonds. You probably heard of that. Right?
• 1:20:15
  I mean, that's what Donald Trump essentially is complaining. Yeah. He doesn't want these countries to get off The US system. So what will happen if The US US is the last holdout to re monetize gold. If The US revalues physical gold and launch physical gold bank, US treasury bonds, that means physical gold is remonetized in The US.
• 1:20:42
  Guess what like another important event that is happening this year. On July 1, the US is gonna start implementing Basel III. What is that, you might ask? Basel III would declare, would basically stipulate that physical gold in The US within the banking system to become tier one capital at a similar status, not similar, same status as the US dollar and US treasury. Basically pristine grade a collateral.
• 1:21:28
  Seth Holehouse: Now that so Gold One was re so gold became a tier one asset. That was back in 2019. Right?
• 1:21:37
  Speaker 2: That's that's that's in Europe and London.
• 1:21:40
  Seth Holehouse: Oh, I see.
• 1:21:40
  Speaker 2: But US never implemented it. US implementation is this year, July 1. So what I'm saying is that all this Donald Trump, you know, dog and pony show about the Font Ox, it kind of like everything fit together. Right? Judy Shelton talking about the gold bonds.
• 1:22:00
  And and actually, you might ask me what the heck is with these gold bonds. And I explained it in other programs in the past month, I guess, on and off continuously. Basically, what they are is they are Judy Shelton is proposing a zero coupon fifty year gold bond. And a lot of people say, well well, zero coupon. Who who the heck wants to buy zero coupon bonds?
• 1:22:24
  It doesn't make any sense because you don't get a yield. Right? The concept is this. Somebody by the name of Jim Bianco, I don't know if you're aware of this fellow. Have you heard of him?
• 1:22:37
  No. Seth? No. He's he's the head of Bianco Research and he has DC connections. So recently he was on Macro Voices, this program on on YouTube.
• 1:22:52
  And he explained that the Trump administration is fainting of forcing its allies to convert a large part of the US treasury bonds to zero coupon century bonds. Like this is a way that The US that The US, the Trump administration is thinking of implementing so that it decreases its annual interest payments to these to the existing US treasuries, treasury bonds that people hold, that countries hold. Why is that, Seth? I mean, you probably heard of it on the news. The US right now they're spending a trillion dollars US a year to pay for the interest on the loans that are written.
• 1:23:45
  It's more like they're spending more money on interest payments to the to the debt, to the national debt than what is it suspending on its military.
• 1:23:57
  Seth Holehouse: Exactly.
• 1:23:59
  Speaker 2: So they cannot that's not sustainable. Right? So if like Jim is correct, and they do this zero coupon bond, let's say The US allies do only half of their bond holdings, US treasury bond holdings, convert into these zero coupon bonds, that means The US all of a sudden cuts its interest payments on the debt by 25% right there. Boom. $250,000,000 they save it.
• 1:24:29
  Billion dollars. Right? It's a lot of money. And they might save even more money if they convince The US allies to convert more of the US treasuries to these super coupon bonds. But I think where Judy comes in is that if the silver coupon bonds are pure fiat, like the principal is fiat, whoever whoever is holding those bonds is gonna lose their shirts because they don't like, first of all, they don't get a yield.
• 1:25:00
  And then the principal, if it's in US dollars, is gonna depreciate to nothing in fifty years. Right? So, you know, adding the gold components to it makes sense. What that means is that, let's say you buy that gold bond in 02/1926 and the gold weight equivalent is, let's say, six tons. You get six tons of gold back in fifty years.
• 1:25:27
  So you won't lose to inflation.
• 1:25:31
  Seth Holehouse: Makes sense. It's really it's moving away from the fiat system.
• 1:25:37
  Speaker 2: Yes. It is. Because the US Treasury system is no longer functional. After especially after they sanctioned Russia and froze Russian asset. Yeah.
• 1:25:53
  Like basically, The US has weaponized. You've probably heard this elsewhere. The US dollar and US treasuries. Right? Exactly.
• 1:26:00
  The US can cancel. They can cancel any foreign country's asset, paper assets, with a push of a button.
• 1:26:08
  Seth Holehouse: Yeah. Yeah. So and how can we expect to be the global reserve currency yet simultaneously use that as a weapon against countries that you're hoping will keep that as a reserve? It doesn't make it doesn't make sense. It kills the system.
• 1:26:21
  Speaker 2: Correct. So this gold bond thing is essentially a bridge so that The US part of the world, the US empire, so to speak, with its allies, can transact with non US allies. These the non US allies are moving, like I said, towards a neutral reserve currency neutral reserve asset, which is physical gold. Physical gold is borderless. It's not issued by any government.
• 1:26:53
  And if it's within your borders, it's yours. Like some people ask me, they say, well, there might be a lot of rehypophication of the gold that is in The US. Rehypophication, you know what that means, Seth? Or do you want me to explain it?
• 1:27:08
  Seth Holehouse: Please do.
• 1:27:09
  Speaker 2: Oh, let me explain that. You heard of this fellow called Buxie Siegel, right? He's a mobster in Las Vegas. So what did Buxie do? He sold he had this casino called the Flamingo.
• 1:27:24
  You probably know that. Everybody knows that. Flamingo, Buxie Seagull. What he did was he sold the title of ownership of the Flamingo, the same title. Okay.
• 1:27:38
  So let's say the Flamingo title of ownership is divided into hundred parcels. So he sold the same hundred parcels over and over again to different people. That's rehypophagation. So there are multiple claims on the same ownership. That's what rehypophagation means.
• 1:28:03
  Does it make sense, Seth? Yes. Yes. Okay. So people are saying there might be multiple claims of ownership of the gold in The US.
• 1:28:13
  But my response is that it doesn't matter because if they ever did it, it's probably through a third party, first of all. So the third party is on the hook, not the US government. And the second thing is that who did they lease it out or sell it to? Probably US allies. Or like know third world countries, developing countries.
• 1:28:37
  US allies, they depend on US military protection. Look at Europe right now. Look at Ukraine. Third world countries or developing countries, who do they rely on? The IMF, right?
• 1:28:52
  The IMF give them loans. And The US has a lot of say within the IMF. Or they might borrow money from Western banks or US banks like JPMorgan, Morgan Stanley, etcetera. So they beholden to The US in one form or another. So what I mean is that once that physical gold is repatriated within US borders, That's 99% of the battle won already by Uncle Sam.
• 1:29:25
  It's finished.
• 1:29:25
  Seth Holehouse: That That makes sense. So this is very complex chess
• 1:29:30
  Speaker 2: that's being Oh, it is. It is. It is. And it's brilliant. Right?
• 1:29:34
  I mean, look at this, Steph. Remember I talked about how these LBMA players borrowing gold from these central banks? Yes. And and like you might ask a lot people ask me, why why are those central banks stupid? They know what's going on at the LBMA.
• 1:29:54
  Why they like letting these LBMA members, bullion banks borrow that gold? Well, maybe a lot of these central banks are like Argentina. And Argentina borrowed a lot of money from the IMF, right. So they're beholden to the Western banking system. They are compelled to let the LBMA members borrow their physical gold.
• 1:30:21
  It is for the chest, my friend. That's what it is.
• 1:30:27
  Seth Holehouse: I see. So I I I feel like that we I I could keep going. I've I've similar questions, but we should probably probably wrap up because we've already only, you know, gone an hour and a half when, there's so much information here. But I guess, kind of summing this up, right now, gold is at $3,000 an ounce. Gold in the treasury is valued at, you know, just over $40 an ounce.
• 1:30:51
  We've got massive manipulation from the LBMA. When all this changes and this this this this massive geopolitical shift in the global financial system changes, what what do you think gold is worth at that time? Is it is it still $3,000 an ounce,
• 1:31:10
  Speaker 2: or is it gonna
• 1:31:11
  Seth Holehouse: I mean, what yeah. What what do you I know that,
• 1:31:13
  Speaker 2: you know,
• 1:31:13
  Seth Holehouse: no one has a crystal ball, and this isn't investment advice for anybody, but what are your thoughts?
• 1:31:21
  Speaker 2: I think, you know, they'll by the time they revalue gold, gold might be above 3,000, maybe 3,200, let's say. And then once they revalue gold to 3,200 from $42.22, that's a huge signal for the market. At that at that stage, The US already repatriated enough gold into The US, and it probably broke the LBMA already. Right? It's in the process of doing that.
• 1:31:49
  So at that point, they might just let the gold price run because the higher the gold price
• 1:31:54
  Seth Holehouse: The better price.
• 1:31:54
  Speaker 2: The better it is for The US for them. Right? So it might quickly, I don't know, run to 5,000. And then let's see what happens from there. That's my opinion, step by step.
• 1:32:05
  Seth Holehouse: Yeah. Interesting. And and we didn't even talk about silver today, which is a whole other topic, but there's, you know
• 1:32:12
  Speaker 2: Silver yeah. There's a tightness in silver too, but Silver is still t plus two or t plus three at the at the LBMA. So I I'm not really focused on Silver right now because they still have enough. That fire truck still have enough juice in it to deliver.
• 1:32:29
  Seth Holehouse: I see.
• 1:32:30
  Speaker 2: T plus three. Right? Within within two or three days, they can deliver.
• 1:32:34
  Seth Holehouse: So I see.
• 1:32:36
  Speaker 2: So I'm not really focused on that. I'm focused on gold because that well, obviously, something broke in gold. Right? Yeah. So yeah.
• 1:32:43
  So I'm looking at that every day.
• 1:32:45
  Seth Holehouse: Also, because gold is I mean, it just seems that gold represents the it's the center of this global financial shift. It's really hinging on on gold, and silver is is very much a byproduct.
• 1:33:00
  Speaker 2: Correct.
• 1:33:01
  Seth Holehouse: So well, this has this has been really helpful. I I've, I've I've learned a ton. I've I've learned more from an hour and a half of this than probably thirty hours of reading articles and reading Twitter threads and all that. So I I I really appreciate your time. What is your what's your Twitter Twitter handle so people can follow you?
• 1:33:19
  And I'll make sure that I put that in the the the description for the show as well.
• 1:33:24
  Speaker 2: Okay. Well, you're very welcome, Seth, and my Twitter handle is king kong nine eight eight eight.
• 1:33:32
  Seth Holehouse: King kong nine
• 1:33:33
  Speaker 2: eight That's my Twitter handle. Correct. Yes.
• 1:33:36
  Seth Holehouse: Now is that because you think that gold is is king kong? Gold is the the king of all the beasts?
• 1:33:43
  Speaker 2: Well, no. Because the guys who are silver stackers, they're my friends. They call themselves apes, like an ape. Big ape. And I'm the king I'm the king of the apes, so I'm King Kong.
• 1:33:57
  Seth Holehouse: That's perfect.
• 1:33:59
  Speaker 2: They call me king. When they talk to me, they they call me king.
• 1:34:01
  Seth Holehouse: That's funny. That's great. Yeah. That's great. Well, I'm like a chimpanzee floating around somewhere, so I'm I'm still part of that jungle.
• 1:34:12
  Alright. Well, Eric, do you have any closing thoughts as we're wrapping up?
• 1:34:17
  Speaker 2: I think we're all good, Seth. I think if if your followers or your viewers, if they don't own any gold and silver, they might wanna start buying dollar cost averaging as the as the bullion banks are slamming the price of gold and silver. It's a gift, I guess. Especially if your followers are in The US. I heard that I know that the physical gold and silver retail market in The US is heating up right now.
• 1:34:50
  But before this week, I heard that you were able to get physical gold and silver coins and bars almost at spot price in The US. If you go peer to peer online. Like, I'm not talking about going to a con shop, but from other people who wanna sell. Right? So this might be a good time to buy at least a little bit of gold and silver to protect yourself for what's coming.
• 1:35:16
  So that's my final word. I I Invite to me.
• 1:35:20
  Seth Holehouse: Agree with you on that. That and that's things that I I look at it as not a speculative investment, but more as an insurance policy. And that's that's my perspective on it. So and you're right. I I do think that even though gold right now is at nearly an all time high, that you make a good point in saying that that there's a window that is keeping it at this price that even though it seems like it's very expensive, you know, in in how whatever time of gold is now 5,000 an ounce or six thousand or eight or 10,000, who knows what it could go to.
• 1:35:56
  You look back at this and it's like, you know, gosh, I wish I could go back in time and buy gold at $500 an ounce and and put away a hundred ounces of it. Right? So
• 1:36:05
  Speaker 2: Correct. Yes.
• 1:36:06
  Seth Holehouse: Yeah. Well, great. Well, Eric, thanks again for your time. I I really enjoyed speaking with you, and I'll, continue following you on Twitter. I encourage everyone else too.
• 1:36:16
  And, yeah, thank you for for teaching us today. That that's that's that's what it felt like, and it was really, really helpful.
• 1:36:23
  Speaker 2: Okay. Well, thank you for having me on the show, Seth. Absolutely. Absolutely. Have a nice day.
• 1:36:28
  Seth Holehouse: Gold has surged 46% in less than a year, doubling the gains of the Nasdaq and the S and P five hundred. But this isn't just another rally. Global reserves are shifting, exposing cracks in the monetary system. Investors are losing confidence in paper gold and demanding physical metal, creating a massive gap between gold owed and gold available. But this isn't about how institutions broke another system.
• 1:36:56
  It's about how you can profit from it. Right now, Noble Gold Investments has a supply of investment grade gold bars and coins available. As banks scramble to fulfill their obligations, pushing gold prices higher, you can profit. Smart investors are already moving into physical gold. Noble Gold Investments makes it easy for you to do the same.
• 1:37:19
  And right now, when you make a qualified investment, Noble Gold will add a free tenth ounce gold coin to your order. Don't wait until it's too late. Visit goldwithseth.com or call (626) 654-1906 now and turn their panic into your profit. Again, that's goldwithseth.com or (626) 654-1906. You'll find that information in the description for the show as well.