Latest / SILVER / GOLD / $UFD: Surviving Global Economic Shifts | RONS BASEMENT / Massive SILVER UPDATE! 🦍🦍You BEST Hear This NOW! (Bond Market Crisis, India and Gold Price)

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Massive SILVER UPDATE! 🦍🦍You BEST Hear This NOW! (Bond Market Crisis, India and Gold Price) · SILVER / GOLD / $UFD: Surviving Global Economic Shifts | RONS BASEMENT

0:01
We have some incredible massive stories that are going to have a
0:04
big impact on the future price of silver and gold.
0:08
We're going to talk about them all.
0:09
Some of this information may be a bit startling.
0:13
We're going through what could be one of the biggest crisis and
0:16
we're just starting in one of the biggest markets in the
0:20
world, and it will have a major impact on our silver and gold.
0:23
Before we get to that, let's start with India though, because
0:27
we have some interesting developments coming out of
0:29
India. And remember, India is massive
0:33
when it comes to gold and silver.
0:35
So this is breaking news in the precious metal sector.
0:40
This came from macro liquidity by I believe he's from India.
0:44
Sunil Reddy said India just restricted silver bar imports.
0:50
Silver bars under code blah blah blah, including 99.9% pure
0:55
silver bars had moved from free to restrictive.
0:58
The difference is huge. A duty hike only makes imports
1:01
more costly. A restriction makes imports
1:05
permission based. Why is this a big deal?
1:07
Because we also had news like he referred to that India increase
1:12
the import duties on silver and gold to 15%.
1:17
OK, their Prime Minister last week, Mr. Modi went out and
1:22
publicly told people not to buy gold and silver.
1:26
Now think about this, right? What happens, what and when we
1:31
got more data about India. But what happens when you tell
1:34
people not to do something? In the United States, there was
1:37
a thing called prohibition. I don't know, back in the 1920s
1:41
what happened. People drank more than ever.
1:44
OK, so why? And then the other question we
1:46
need to ask is, why is India doing this?
1:49
Because we're going to look at some data next that tells us
1:52
India is the king of gold in particular.
1:56
But will So then why would the country of India be saying this?
1:59
No, Restricting imports, putting huge taxes on imports,
2:04
effectively telling people not to do it?
2:06
Well, that's because, right? They're trying to protect their
2:09
Fiat currency. Indian people are smart.
2:12
And trust me, they're going to find a way to get gold and
2:14
silver. They smuggle it in.
2:16
That's what happened the other times when they restricted the
2:19
amount of silver they could. They would like, put it in their
2:21
wigs. They would stick it in some
2:24
undesirable places. And their body, they would go to
2:26
no any length, I'm sorry, to get gold and silver into the
2:31
country. Remember, silver and gold are
2:34
worldwide markets, thousands of years.
2:37
OK, there's a lot of weirdness going on right now.
2:40
Let's go look at this about India.
2:42
Then we're going to move on. One more interesting point about
2:46
our friends in India, where we see that when combining central
2:52
bank reserves and private citizen Holden Holdings, India
2:56
is the undisputed world leader in gold.
2:59
Households have about 27,000 metric tons and then when you
3:05
add in the Reserve Bank of India, that's like 28,000 all
3:08
together. Don't forget, right, the United
3:11
States in total, in total, right?
3:14
Because citizens own a minimal amount in grand total between
3:19
our government and our citizens, they estimate we have 8100.
3:24
OK. Now don't forget also that India
3:29
recently when it comes to silver change their banking laws
3:32
essentially monetizing silver on April 1st, allowing people to
3:37
use silver as collateral to get, yeah, their Fiat rupees or
3:41
whatever they call them over there.
3:43
They also abandoned the LBMA pricing for their own internal
3:48
precious metals markets. They said we're done with the
3:50
LBMA, right? They're done with make believe
3:53
fantasy island pricing for silver and gold.
3:57
Also, they allowed they put out they'd some change some big laws
4:01
that allow the big find some big financial products in India to
4:05
actually invest in physical gold and silver.
4:09
And again, to wrap it all up, they are the world's biggest.
4:12
They are the undisputed king of gold in particular.
4:15
I don't think they're the king of silver, but nonetheless,
4:18
right, gold is the granddaddy of all precious metals.
4:21
This is wild, guys. This tells us that there's a lot
4:24
of weirdness going on in the world of central banking, paper
4:28
money. All that, right, only makes us
4:31
feel a little bit better, a little bit more secure, despite
4:34
the recent trauma that we've had in the gold and silver markets
4:37
about the fact that if you're like me, you've decided to
4:41
protect some of your wealth with, with gold and silver and
4:44
maybe some precious metal mining stocks.
4:47
What about China, right? So we know what's going there.
4:49
India, they're going to get their gold and silver.
4:51
What about China, right with all this craziness, right?
4:54
Trump went and went and had the big summit in China.
4:58
And then interestingly enough, the gold and silver price
5:02
immediately went down. Do you think Chinese people
5:05
let's go on a little field trip together.
5:07
You can see if Chinese people are still active in the gold and
5:12
silver markets. This is from our friend David
5:15
Lee, the man on the street highly respected within the gold
5:19
and silver community. And I want to get this on full
5:22
screen for you, see if we can get that.
5:26
So I'll just send that and say I'll tell you where this is in
5:33
one second. Look at all those people.
5:39
OK, so that is the Shenzhen Shubai, I believe it is make it
5:44
that, right. Shenzhen Shubai gold market,
5:47
which we know because we researched this, is like the
5:50
biggest public gold and silver market in all of China.
5:55
So India, they aren't going anywhere when it comes to demand
5:59
for gold and silver. China, they're not going
6:02
anywhere. But what about in the West?
6:04
This is interesting because we talked about this many times.
6:07
The Western investor has essentially been gone from the
6:12
silver market in particular. But there's something very
6:16
interesting that's happened the last few days and we're going to
6:19
look at that right now and talk about why this could be, right,
6:23
a very, very good thing for the silver market and the silver
6:27
price as we go forward. Here we go.
6:30
This is a chart showing US ETF flows into SLV and total total
6:40
ETF holdings. I apologize up there.
6:42
As you can see way over here on the left, that's the 15th of
6:46
May, which was Friday. The green right Western
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investors have been net adding to the their ETF holdings.
6:55
Why that's a big deal because they've essentially been gone.
7:00
We've yet to really experience the real way we got a taste of
7:04
it back in January of this year. But guys, we've yet to really
7:09
get like a taste of like a wave of people coming into.
7:13
Now the other good thing about that is they've people have
7:17
stopped selling, OK. And the reason why is, and we've
7:21
talked about this like, and Rick Roll said it, I'll never forget.
7:24
I think it's one of the coolest, smartest things that I've heard
7:27
him say, he said. We don't need a silver investors
7:30
to love our Western investors. We love silver.
7:33
We don't need the general Western investors to love
7:36
silver. We just need them to hate it a
7:38
little bit less. And there's some indication that
7:43
that might be happening. The reason why that's huge is
7:46
because of just a tiny bit, an itsy bitsy bit of Western money
7:52
comes into the silver investing sector because it is so small.
7:57
We're like an elite. We're like the, you know, the
8:00
Navy Seals, right? Are the Green Beret in the Army?
8:03
We are like the elite core of investors in the United States.
8:06
But we're small, right? And because we're so small, it
8:10
just takes, we're one or two percent.
8:12
It just takes another one or 2% to double the number of people
8:17
in the sector. And on top of that, the cherry
8:20
on top is it when those new people come in, that's all brand
8:25
new money. That's all fresh dollars being
8:28
converted from paper into physical.
8:31
If you want to get your hands on some physical right now, look
8:34
right there, right where my finger is first meant they are
8:37
#1 they only make silver bullion products.
8:42
They're a silver exclusive mint, right?
8:45
That's their specialty. They're owned by First Majestic,
8:49
who mines the silver in Mexico, ships to the Las Vegas, NV, to
8:53
the First Mint facility, and then it goes directly to you.
8:57
Let's go out and take a look at their website so you know where
9:00
to go to check them out. OK, You can be like everybody
9:03
else in the basement who's checked them out and really been
9:06
happy with the products, service, prices, everything from
9:10
First Mint. Here we are at First mint.com.
9:13
That's their Las Vegas round. You're the horse round.
9:16
Hail to the Chief Buffalo round, you're the Dragon round.
9:21
Then there's their Liberty Bar where they currently have a
9:23
$2.00 off special right now. Go check them out at First
9:27
mint.com and, and let me know, right?
9:30
Give us some feedback because we love to hear the positive
9:34
feedback from all of you about your experience with First Mint.
9:38
OK, Oh, OK, we talked about silver.
9:41
Let's just look at gold and investor allocation into gold.
9:54
OK, here we go. This is a chart from Incrementum
9:57
price is shifting investor allocation and as you can see
10:02
yet historically speaking people are under allocated to gold.
10:08
So on this chart, what we're looking at is that right now,
10:12
OK, this is gold allocation by private investors as a share of
10:19
global equities and bonds going all the way back to 1971, as you
10:24
can see, right at its peak. Got up to what about 8%, guys?
10:28
We're still at only 2%. But what's important to remember
10:33
about that is a lot of that increase right up to 2% because
10:38
we were down, I don't know, like below 1 at a couple points.
10:43
So this little increase that we've had, most of that is due
10:49
to people that already held gold that but but because the price
10:53
went up, so it made the percentage of total of the total
10:57
go up again, just like silver. We've yet to really feel the
11:02
wave of new people and when they wake up and it's going to happen
11:05
because that inflation is coming and it's coming like nothing.
11:09
Now let's go take a look at the silver chart.
11:12
Rashad pointed out something very interesting.
11:16
Yep, we had our silver breakout, but now silver has retraced all
11:20
the way back to the apex of the triangle after the infamous
11:25
breakout. Now, what's key here, right?
11:28
And we're going to talk about our our community price down
11:32
here, right? As you can see, we broke out and
11:35
came right back. I'm going to remove that so you
11:37
can see it more clearly. Right back to the apex of this
11:42
wedge pattern. So what happens this week is
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going to be very, very important from a technical perspective, a
11:50
psychological perspective and everything else for silver.
11:53
We have said over and over that $72.50 is kind of the the line
12:01
in the sand right now, the red line in our opinion, in my
12:04
opinion, for silver. That's after looking at all the
12:08
technical analysis, looking, considering the fundamentals,
12:11
considering what the price action has been over the last 18
12:14
months. Guys, these next few weeks will
12:17
be critical. The question is, will we be OK
12:20
if silver breaks below $72.50? Well, I've got some good news
12:25
for you. Yes, we will be OK.
12:28
The next key level will be around $66 per oz.
12:32
I'm not saying that I think it's going to get there.
12:35
I think that based on what's happened lately, the odds are a
12:38
little bit more likely than what we would have talked about just
12:41
a week ago. Last week was nuts.
12:43
There is craziness going on out there right now and it all
12:48
happened and it's everything is happening so much more quickly.
12:51
So if we do breakdown, OK, If we do and we get down to 66,
12:56
remember things are happening incredibly faster right now.
13:02
We could see a recovery. We could see with what's
13:05
happening in the bond market, money printing, and we're going
13:08
to get to that here in a second. So quick.
13:10
Just be ready, be emotionally prepared.
13:13
We could shoot up again. We, we volatility goes both
13:16
ways. Be emotionally prepared for
13:19
anything that they're sending at us because at the end of the
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day, hold on one second. At the end of the day, we're
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going to remember this, OK? Right now in the world, the
13:33
silver market is based on paper claims in the West, and that's
13:37
changing. Some estimates put the broader
13:40
paper to physical silver ratio around 356 to 1 when including
13:49
futures, OTC swaps, forwards and unallocated exposure.
13:53
Even if the exact number is debated, the message is clear,
13:57
right? There's a lot more paper make
14:00
believe silver out there than there is actual physical silver.
14:04
And now right to what's going on, warning, right, suddenly all
14:09
heck is broken loose in the world.
14:12
We know what happened Thursday and Friday and silver and gold
14:15
markets and on Friday suddenly feels like out of nowhere,
14:20
although we know it's not out of nowhere.
14:21
But now everybody's paying attention to the fact that we've
14:24
got a bond market crisis. OK, Kitco puts this out.
14:34
Rising real yields crush precious metals momentum because
14:39
the bond market is in a state of utter turmoil suddenly, right,
14:45
yields are going up. So everybody's saying, oh,
14:47
that's bad for gold, that's bad for silver.
14:49
No, no, no. Because while the think about
14:52
this is key to remember, while the excuse me, while the, while
15:01
the bond market, we get data in real time.
15:04
The other key thing to remember is inflation, right?
15:07
And we don't get except for our own experiences at the gas pump
15:12
in the grocery store and when we get, have you gotten your
15:14
homeowners insurance bill yet? Your homeowners insurance bill,
15:18
right? We, we kind of get that on a day
15:20
by day, but the markets don't get all the markets see is the
15:23
bond market getting reported right on a minute by minute
15:27
basis. The bond market's the biggest
15:28
market in the world, right? Prices are crashing.
15:31
All this drama going on now, but what's key take a step back for
15:36
gold and silver investors is the other side of that equation,
15:40
which is inflation. And we don't get that data.
15:43
There's not like a like a like a minute by minute inflation
15:46
tracker. And even if there were, we know
15:49
there probably wouldn't be accurate anyway because the
15:52
government data that they put out is a suspect at best.
15:57
So as we navigate now what's going on, all this big drama and
16:02
it's weird, right? Like everything was hunky Dory
16:05
up until Friday. I'm telling you, things are
16:08
happening much more quickly now. But as we as we follow this
16:12
crisis that's going on, don't forget there is another critical
16:16
side to the equation and that is inflation.
16:19
And in the end, that's what's going to drive the boat.
16:22
That's what's going to make the difference.
16:23
Bond prices are are crashing throughout the world.
16:27
OK, we're going to look at some more data here one second.
16:29
And I said, right, that's because everyone in the world is
16:34
suddenly realizing that everyone's money is just a bunch
16:40
of debt, right? There's all this debt is all the
16:44
money is all a bunch of debt, which is backed up by even more
16:48
debt. OK.
16:50
It's all a bunch of paper make believe that people think they
16:54
own owe each other. It's the exact opposite of
16:57
silver and gold. And it's really came to a
16:59
crescendo. Is that the right word?
17:01
I don't know, an apex, whatever. And I think people, it's
17:05
strange, guys. I'm worried about what's going
17:08
on right now with what went on with this great, awesome,
17:12
incredible summit that the President Trump had with like 20
17:17
of the US big executives. And then we come home and
17:20
suddenly the next day, everything falls apart.
17:24
I mean, put the pieces together. I don't know.
17:26
Hopefully nothing happens this coming week, but I'm concerned
17:30
about what we may see. On top of that, I want to
17:33
mention the stock market's not much better.
17:35
Remember, the bond market is the biggest market in the world.
17:39
The bond market is actually much more important than the stock
17:42
market, but the stock market is in the situation.
17:45
We're gonna look at some data later.
17:46
Bubbly situation, but the stock market's like based on Fantasy
17:51
Island projections and values and it's priced in U.S. dollars,
17:58
which is like a paper fantasy currency.
18:00
I don't know, it's getting crazy.
18:02
All right, let's run out. Let me run through a few more
18:05
what other people are saying. You've heard enough from me.
18:08
This came from Luke Roman said this and it was shared by in
18:15
gold we trust, Luke Roman said. I think the recognition that not
18:19
only are Western sovereigns concerned by their debt, but
18:23
that it's in the US interest in particular to net settle more
18:27
trade in gold at a floating price as a means of revaluing
18:31
gold higher using trade and thereby rebalancing global trade
18:36
and giving Western sovereigns the ability to use significantly
18:40
higher gold prices to re collateralize, re collateralize
18:45
or pay down their sovereign debt to sustain levels.
18:48
They're talking about the world losing faith in paper money.
18:53
It's not just the US dollars. There he said it.
18:58
That's the key. Western sovereigns are cornered
19:02
by their debt, right? We've got, we've come to a
19:04
position of what's called fiscal dominance.
19:08
And when you hear that term fiscal dominance, it sounds like
19:11
yes, we're strong, we're dominating.
19:13
No, what fiscal dominance actually means, and it makes
19:17
sense when you think about it, is that the fiscal situation of
19:22
the United States and a lot of other countries that have racked
19:25
up incredible amounts of debt that are that now the, the, the
19:29
fiscal situation is dominating what the governments can do to
19:35
deal with economic problems, to do with monetary problems.
19:38
We are in like a wild, wild, wild new world, right?
19:43
Where like, and the best example is that our, our US Federal
19:47
Reserve, everybody's like, oh, rates are going up.
19:50
Rates are going up. The 30 year treasury is at 3
19:53
five point 1%, which yes, is crazy high, OK.
19:58
And it's because inflation and the feds going to have to raise
20:01
rates. The Fed can't raise rates,
20:04
right? the Fed, the, the Fed is in a
20:07
position like our government of fiscal dominance, right?
20:12
There's so much debt and we talked about this a multitude of
20:16
times that our government, the only thing the feds going to be
20:19
able to do get ready because it's good news is print, is
20:23
monetize the debt. That's the only way that they're
20:26
going to be able to keep rates under control.
20:29
The opposite of people, they're going to raise rates, really to
20:32
raise rates, right? Not in real terms, right?
20:35
The feds got to monetize the debt.
20:38
That's the only thing they're going to be able to do.
20:40
And when they monetize the debt, that means they print more money
20:44
to buy the debt to keep the interest rates under control.
20:49
I do not envy Mr. Walsh, who's taking over or has taken over, I
20:54
guess, officially at the Federal Reserve.
20:56
It's crazy. OK, Now let's go see what more
21:00
people are saying about what we're dealing with right now.
21:03
This is from the Kabasi letter. They said the bond market crisis
21:08
is intensifying. And then the last thing they say
21:13
inflation is back and higher rates are coming.
21:18
I don't agree with that. OK, not in real terms.
21:21
Yeah, sure, maybe they raise rates if they have to buy a half
21:23
percentage point or whatever the case may be.
21:26
But the rates aren't going to be able to keep up with inflation.
21:29
And inflation is the is the is the is the master at this point.
21:35
Everything else truly is the servant.
21:38
Let's go here. This another one from the Kabesi
21:43
letter breaking the United. Oh this is interesting. the
21:47
United Kingdom's 30 year government bond yield surges to
21:50
almost 6%, its highest level since March of 1998.
21:57
Guys, that was before Google existed, or at least the same
22:05
year the the Google was created. Global bond markets are bracing
22:10
for severe inflation. And then Peter Schiff throws in
22:14
his three cents. He says the yield on a 30 year
22:18
treasury is now 5.1%, the highest since 2720 years.
22:24
The 10 year 4.55, the highest since Liberation Day.
22:28
Sell off, he says in green. This may set off a major bond
22:31
market collapse that will send yields soaring unless the Fed
22:36
sends inflation soaring instead. And exactly what he means by
22:41
that is if the either either rates go way up or the Fed does
22:48
the only thing that they know to do and think about what it what
22:51
have they done over the last 30-40 years?
22:53
Print money to monetize the debt like we just talked about, which
22:57
will send inflation soaring even higher as well.
23:02
All of this while the stock market is absolutely in bubble
23:06
territory. Coindesk shares with us.
23:10
U.S. stock valuations are approaching.com bubble territory
23:14
with the Shiller PE now hitting 42, just below the 44 peak scene
23:20
in 1999 before the S&P 500 crashed 50%.
23:25
And a little more scary news for you from the man, the myth, the
23:30
legend himself, Jim Rogers. OK, one of the most respected
23:35
investors in the last 50 years. He sells all his US stocks and
23:40
warns the end will probably come soon as national debt hits 39
23:47
trillion, he said. Now this is this is for us gold
23:50
and silver investors. As long as I've been alive and
23:56
hundreds of years longer, gold and silver have retained value.
24:01
I own both. I hope my children own my gold
24:05
and silver someday. Everybody should have some gold
24:08
in the closet and everybody should have some silver under
24:13
the bed. So guys, look, when we wrap it
24:16
all together right now, there is insanity.
24:19
The bond market. Remember, we don't get taught
24:22
this in school, but the bond market is infinitely more
24:26
important. Exponentially, sorry, better
24:29
word more important than the stock market.
24:33
This coming week we're going to have the gold and silver futures
24:35
open here in a few hours. But this coming week, what
24:38
happens? We could be we could be at that
24:41
moment right where where the Jenga tower falls down right
24:46
where it's that one thing. And the bond market is the
24:49
powerhouse of the world. But remember, the bond market
24:54
will also be a slave to inflation.
24:57
And remember, right, there's nothing that creates more value,
25:04
right? More, more, higher price, higher
25:07
protection, however you want to say it, for precious metals than
25:11
inflation. That will be the driver if we
25:14
take all these complicated things that we can talk about
25:17
and distill them down to one sentence.
25:20
One, one key component that we want to remember that is that as
25:24
we move into this next decade, inflation is really all that we
25:30
have to focus on. All that we have to worry about
25:33
because everything else, right, will be a servant to inflation,
25:37
right In the king of inflation are gold and silver.
25:41
Hey, you're the king. You're the queen for joining me
25:44
down here in the basement on behalf of myself and upstairs,
25:47
Susie, thank you for being here. OK?
25:49
It's going to be a wild week. We'll navigate it together.
25:53
Everything will be OK. Remember, please try to try to
25:57
take a step back. I know it's hard.
25:59
Red days are no fun. Green days are a lot of fun.
26:02
But try to strip that emotion out of the underlying
26:05
fundamental reasons why we love gold and silver.
26:09
We are basement dwellers. We love gold and silver because
26:13
we understand history and we understand basic mathematics.
26:17
Please subscribe to the channel. Love to have you back down here
26:21
in the basement again. Take care and I'll see you soon.
26:24
Bye.