Latest / Kinesis Money / Gold’s HALO Shines Spotlight on Silver - LFTV Ep 271

Transcript

Gold’s HALO Shines Spotlight on Silver - LFTV Ep 271 · Kinesis Money

• 0:00
  SPEAKER_01: Both currencies are one-to-one backed by physical gold, and here's the point.
• 0:06
  SPEAKER_01: They can be tokenized, held, collateralized, or exchanged a par of physical gold.
• 0:15
  SPEAKER_00: We've got this ticking time on the talking gold, the one and only Andrew McMuire.
• 0:22
  SPEAKER_00: Welcome to Life from the Vault.
• 0:28
  SPEAKER_00: Welcome to Life from the Vault, brought to you by Kinesis Money.
• 0:32
  SPEAKER_00: And we are glad that you've joined us here today.
• 0:34
  SPEAKER_00: You're going to like this episode.
• 0:36
  SPEAKER_00: You know, Life from the Vault is a show that goes way beyond the headlines to uncover the truth about the precious metals industry.
• 0:43
  SPEAKER_00: And joining us today is Kinesis's very own world-renowned whistleblower and precious metals industry expert, Andrew McGuire.
• 0:52
  SPEAKER_00: And this week we're going to be answering more questions from our Live from the Vault community members.
• 0:58
  SPEAKER_00: So keep those questions coming in.
• 1:00
  SPEAKER_00: All you got to do is just look at the description, click on that link.
• 1:03
  SPEAKER_00: You can record your own uh question for Andrew, and you never know.
• 1:06
  SPEAKER_00: It might be even chosen to answer right here on Live from the Vault.
• 1:10
  SPEAKER_00: So let's head over to the UK and talking gold with Andrew McGuire.
• 1:17
  SPEAKER_00: Hey, now, Andrew, in our last uh episode, this was awesome.
• 1:21
  SPEAKER_00: You drew our attention uh under the, what was it, the fog or the war fog of volatility?
• 1:28
  SPEAKER_00: And and you were talking about the Comex is becoming less and less relevant as an actual price setter uh to help ask us here.
• 1:36
  SPEAKER_00: We've got a lot of questions coming in here, but to help answer some fresh subscriber questions, uh, what are you seeing both uh in the short term as well from a macro uh perspective there in the market?
• 1:48
  SPEAKER_01: Well, great to be with everyone.
• 1:50
  SPEAKER_01: Thanks, Shane, for yeah, getting the questions organized.
• 1:53
  SPEAKER_01: Um, yes, I look, yeah, I guess what we've been really trying to draw attention to is the final exit of the large gold and silver traders and investors who've ditched their LBMA COMEX derivative gold and silver positions completely into physical gold and silver exchanges.
• 2:14
  SPEAKER_01: This is a huge dynamic shift.
• 2:16
  SPEAKER_01: And this includes, because it includes the producers, the refiners, uh, the institutional hedges that absolutely require a real supply-demand price to actually function correctly.
• 2:29
  SPEAKER_01: And while we've tracked the COMEX open interest evaporating into historical all-time low participations, we show the chance of that.
• 2:40
  SPEAKER_01: That's continued since then.
• 2:42
  SPEAKER_01: This exodus has largely gone unnoticed because into the LBMA CME, um, that side of the paper to physical unwind process, that's 100%, 100 to 1.
• 2:55
  SPEAKER_01: That's 100 ounces of paper gold to one leveraged.
• 3:00
  SPEAKER_01: And then, of course, um, that's and it's also designed for cash settlers, not for delivery.
• 3:07
  SPEAKER_01: Whereas the unleveraged, what it sort of meets up against is the unleveraged, 100% physically backed.
• 3:16
  SPEAKER_01: And that's the SGE governed exchange is strictly physical.
• 3:20
  SPEAKER_01: You have to have physical bars to offer it for sale, you have to have a physical bar to take delivery.
• 3:26
  SPEAKER_01: And and that's where the real money now operates understandably, and it requires a real-time supply-demand deliverable price to actually benchmark for it to operate.
• 3:41
  SPEAKER_01: Now, that sounds novel, that should have been in place for the last 50 years, but not so.
• 3:48
  SPEAKER_01: The Commerce was never designed to really provide any form of delivery.
• 3:54
  SPEAKER_01: Uh it was it wasn't it was just never going to be deliverable.
• 3:58
  SPEAKER_01: And and while we've reached the absolute inflection point where it's lost its actual dominance, it's now in the hands of the wrong at both ends, momentum-driven speculators.
• 4:10
  SPEAKER_01: So you say, look at all this volatility, that's the momentums.
• 4:14
  SPEAKER_01: The only people left holding that bag are the momentums, but they control 80% of all the open interest that remains.
• 4:22
  SPEAKER_01: And because of the leveraged, obviously that causes overshoots, uh, both on the upside and the downside.
• 4:30
  SPEAKER_01: Whereas they they've overcooked the up, they overcooked the upside in January.
• 4:37
  SPEAKER_01: Now they've overcooked the downside, and they've been caught naked short.
• 4:43
  SPEAKER_01: It happens on a regular basis.
• 4:45
  SPEAKER_01: They're wrong at both ends.
• 4:47
  SPEAKER_01: And as we looked at last episode, illustrating how under the war fog, this paper, the physical unwind process has accelerated and is well, well underway.
• 5:00
  SPEAKER_01: And in order to review this, we need to first look at the macro view.
• 5:06
  SPEAKER_01: Now, during my uh last life from the vault uh serious London Paul interview, we reviewed the transition process of how the waning Western debt-based dollar-funded unipolarity is being absorbed by an expanding gold-anchored multipolar world.
• 5:26
  SPEAKER_01: Now, whereas a debt-riddled unipolar dollar can only be exchanged for unallocated, undeliverable, cash-settled fiat gold in the Western foreign exchange markets, the Chinese yuan is directly exchangeable for physical gold.
• 5:44
  SPEAKER_01: This is so underappreciated.
• 5:47
  SPEAKER_01: Having gained sufficient liquidity for gold to be physically benchmarked in growing number of Western accessible free trade zone, multipolar facing gold corridors, the into which the Yuan can be freely exchanged for physical gold, it's this all-important differentiator that absolutely guarantees the demise of unipolarity and the dollar.
• 6:16
  SPEAKER_01: At the direct expense of the LBMA and the Comex exchanges, China has accrued sufficient physical market liquidity to really benchmark a real-time competing, self-arbitraging, fungible, global, and sanction-proof deliverable gold price, unaffected by any of that kind of stuff for a T plus zero, a today settlement in any size you want, contrast that against the less than 1% of LBMA deliverable gold that's netted out of hundreds of tons of cash-settled gold traded every day.
• 6:57
  SPEAKER_01: And is it any one wonder the cartel run Comex is being drained of enough participants to avert what would be an inevitable delivery default?
• 7:08
  SPEAKER_01: Or other choice to bend the knee to China's physical market liquidity.
• 7:14
  SPEAKER_01: That would mean raising margins to a hundred percent and become physically deliverable.
• 7:20
  SPEAKER_01: That seems implausible.
• 7:22
  SPEAKER_01: What used to be uh inaccessible to all but the central bank sovereigns and uh the uh insiders, uh the SGE real asset gold settlement corridor is now fully accessible to a full array of institutional global traders, family officers, investors who can who constitute the cartel escapees who've been drawing we and we've been drawing attention to these big players who are just exiting who from time to time um they move to arbitrage and take delivery of underpriced COMEX open interest.
• 8:05
  SPEAKER_01: If you've if you've played in that uh sandpit, um then you know the game.
• 8:12
  SPEAKER_01: And you will then know that if you're a physical market, you're gonna see opportunities for underpriced COMEX, LBMA, COMEX gold.
• 8:21
  SPEAKER_01: Well, LBMA unallocated, you start to play games with um the bilaterally settled, so they'll pump up the price and and and and essentially make sure that any deliveries are actually uh within uh a lot higher than is quoted.
• 8:37
  SPEAKER_01: But you can't, you can with but COMEX open interest.
• 8:41
  SPEAKER_01: When you see when you go into first notice, you can have that.
• 8:46
  SPEAKER_01: And and but they're so while they while they come after have learnt to capitalize on those um uh those deliverable um uh opportunities into first notice day, um these guys are never gonna return to play in that nest of vipers uh sandpit.
• 9:06
  SPEAKER_01: And facilitated by the hundred percent physically blacked SGE gold corridor, the Chinese Yuan and the Russian ruble trade on the on really essentially Basel III NSFR compliant, a gold standard blockchain that is interchangeable with any other Basel NSFR compliant trading rail.
• 9:30
  SPEAKER_01: So that's a huge thing.
• 9:34
  SPEAKER_01: Both currencies are one-to-one backed by physical gold.
• 9:38
  SPEAKER_01: And here's the point they can be tokenized, held, collateralized, or exchanged at par for physical gold.
• 9:47
  SPEAKER_01: Illustrating China's mandate to internationalize the Yuan, African nations are undertaking currency swaps into the Yuan right now.
• 9:56
  SPEAKER_01: Uh I think I just saw Bloomberg today, Mozambique being the next African nation to convert$1.848 billion of its dollar debt into RMB that it owes China.
• 10:08
  SPEAKER_01: The US-Iran war has accelerated this process significantly.
• 10:14
  SPEAKER_01: And China's cross-border payment system, the SIPS, already interconnects, are rapidly expanding.
• 10:21
  SPEAKER_01: Over 5,000 banking.
• 10:23
  SPEAKER_01: I'm looking here that it's over 5,000 um uh institutions now that it interacts with and growing every day.
• 10:34
  SPEAKER_01: Um, even before the Iran war drove what is an as as yet unfactored surge in the Yuan oil gold trade, during April, the SIP settlement platform had already overtaken SWIFT transactions completely.
• 10:52
  SPEAKER_01: Also, the rapidly expanding BRICS facing real asset tokenization gateway opens up every single commodity to be traded and settled through SIPS, benchmarking BRICS national currencies against the Yuan, which and African currencies increasingly, which in turn converts a growing number of national current transactions to be backed up by first-tier Basel III NSFO compliant, high-quality liquid asset gold.
• 11:26
  SPEAKER_01: Increasingly, this physical gold is stored inside the SGE warehouses and collateralized.
• 11:35
  SPEAKER_01: Interesting, and just one more knot in the LBMA cartels noose.
• 11:41
  SPEAKER_01: This excerpt from the South China Morning Post and separately in Bloomberg indicates Dubai-based gold traders are shifting to Hong Kong and Singapore and into their SGE gold exchange facilities, where Yuan-backed gold can be traded in Yuan.
• 11:59
  SPEAKER_01: And we've been focusing on the West's gross underestimation of global South nations ultimately taking full control of the gold and silver price setting mechanisms.
• 12:11
  SPEAKER_01: And how, through the formalizing of the financial infrastructure to support a sufficiently liquid global settlement process, the CME LBMA will increasingly become price takers, not price makers.
• 12:27
  SPEAKER_01: This is happening under our noses, and as we will see, it is central bank driven.
• 12:34
  SPEAKER_01: As the war broke out, the race to exit traditional trading hubs extended all the way into the UAE and Dubai.
• 12:42
  SPEAKER_01: And there was such a race to move physical gold into Hong Kong and Singapore, it was offered actually at a discount.
• 12:49
  SPEAKER_01: Those hubs have now also bent the knee to China.
• 12:53
  SPEAKER_01: And while the Dubai hub will be active once insurance companies lower their risk costs, because insurance companies were very unhappy about insuring this gold and there was a race to get it out, the immediate immediacy of storing and trading into a connected and growing liquid free trade zone, connected gold, silver, and real asset corridor will see these hubs expand.
• 13:21
  SPEAKER_01: And why wouldn't it?
• 13:23
  SPEAKER_01: And it's it's just so usable.
• 13:27
  SPEAKER_01: Looking at the expanded macro view, so into a ramp up of the de-dollarizing to gold transition process, foreign central banks have really slashed their holdings of treasuries to the lowest level since 2012.
• 13:42
  SPEAKER_01: By the end of March, foreign central banks' US Treasury holdings are now 500 billion below 2021 levels and 200 billion below 2012 levels.
• 13:56
  SPEAKER_01: Ask yourself this where is this first-tier assets?
• 14:01
  SPEAKER_01: Where are they migrating to?
• 14:03
  SPEAKER_01: We know, don't we?
• 14:04
  SPEAKER_01: And Fed Published Data verifies the value of treasuries held in custody at the New York Fed by institutions by official institutions, has dropped by 82 billion to just 2.7 trillion over the last 12 months.
• 14:20
  SPEAKER_01: Message is clear.
• 14:22
  SPEAKER_01: These US Treasury sell-offs ramped up over the last month and are forecast to accelerate as soon as the Iran war volatility fully subsides.
• 14:33
  SPEAKER_01: Now, because gold and silver trade as a currency cross against the dollar, so buying one side of the cross sells the other.
• 14:40
  SPEAKER_01: So when everyone piles into the dollar to balance off a series of war-driven spikes in oil prices, under the plain vanilla bearish skew, it creates opportunities for central banks to de-dollarize at a much more favorable rate.
• 14:57
  SPEAKER_01: Net of what the Wall Street cheerleaders are screaming about, they're saying that gold isn't a good hedge.
• 15:05
  SPEAKER_01: That's what's really been happening here, is that the that that's why the mechanical dislocation between one and the other is starting to evaporate.
• 15:17
  SPEAKER_00: All right, Andrew.
• 15:18
  SPEAKER_00: And following the UK, European, and the Chinese holidays, uh, can you take a look at the current short-term footprints that you're seeing now?
• 15:25
  SPEAKER_00: Yeah, Shane.
• 15:26
  SPEAKER_01: Uh, and they kind of back up um what we're evidencing from a macro level.
• 15:31
  SPEAKER_01: So sometimes it's important to drill down into the footprints.
• 15:35
  SPEAKER_01: I'm recording this episode on Wednesday between the AM and the PM fix, ahead of the PM fix.
• 15:42
  SPEAKER_01: And this is for release tomorrow.
• 15:44
  SPEAKER_01: So look, and as we pick up the action that followed yesterday's announcement that the offensive operation against Iran is likely over, in fact, that was announced around just after the PM fix.
• 15:58
  SPEAKER_01: And in fact, gold and silver barely reacted, with both gold and silver futures closing close to the day's lows, as can be seen here in gold and in silver, similarly in silver.
• 16:12
  SPEAKER_01: So what happened?
• 16:14
  SPEAKER_01: It was really as expected, as soon as China, the China's physical market liquidity returned this morning, following its Labor Day holiday, and we see in silver and in gold, what happened?
• 16:31
  SPEAKER_01: A rally occurred.
• 16:34
  SPEAKER_01: Basically, because China's physical market liquidity returned, and pent-op gold and silver buying returned in size, with Asia taking everything put on offer into their absence.
• 16:46
  SPEAKER_01: In fact, Shanghai Spot Gold Premium this morning was averaging$17 over Loco London spot.
• 16:57
  SPEAKER_01: And in silver, it's been averaging, in fact, right now it's averaging$10.81 above London spot.
• 17:06
  SPEAKER_01: So, you know, that's put silver in the$87 range right now.
• 17:11
  SPEAKER_01: Now, assisted by the perception a peace deal may be struck, goalposts are still changing, as can be seen following Trump's latest tweet just a short while ago, where we see an immediate turnaround and we see oil spiking higher, uh dollar coming back.
• 17:30
  SPEAKER_01: But essentially, what we're figuring here, we should expect more of this volatility.
• 17:37
  SPEAKER_01: And while gold and silver commodities and risk markets are in the green, Brent is actually still trading at about 103 right now.
• 17:46
  SPEAKER_01: And it's pretty clear that Trump would prefer a victory peace deal and a withdrawal.
• 17:52
  SPEAKER_01: And it's not yet clear that the Iranian regime is on side yet, so tweet-fueled volatility may continue.
• 17:59
  SPEAKER_01: However, with Asia back in the mix into deeply oversold gold and silver conditions, dips from here on are expected to be jumped on by both physical buyers and the commercials exposed to very large T plus one delivery exposure.
• 18:16
  SPEAKER_01: And as we were looking at a little while ago, under this derivative-driven volatility, central bank sovereigns are converting dollars to gold.
• 18:25
  SPEAKER_01: Every single rise in the dollar is being used to do that.
• 18:29
  SPEAKER_01: So as this conversion, or as it would be more accurate to describe the paper-to-physical alchemizing process rolls out, automated inverse unallocated FX gold selling against a rising dollar provides the momentum sell fuel for the downside, which is pretty much what we've been seeing here.
• 18:50
  SPEAKER_01: And the momentums have been on the downside, pretty much driven by exactly those mechanical correlations.
• 18:58
  SPEAKER_01: And during the war rollout, that's bearishly influenced the LBMA gold benchmark fixes, which is even what we saw yesterday, even though there was good news.
• 19:12
  SPEAKER_01: But it's patently clear to all physical-facing liquidity providers that this paper to physical dislocation has been coiling gold for a large upside gap close, what is really going to be a catch-up rally.
• 19:28
  SPEAKER_01: And with no speculators on board, this rally would have sustainable legs to exceed previous highs.
• 19:34
  SPEAKER_01: And bear in mind we have the momentums all on the long side overcooking this rally.
• 19:41
  SPEAKER_01: Now they've overcooked it to the downside.
• 19:44
  SPEAKER_01: And really, now we have no speculators on board.
• 19:46
  SPEAKER_01: We're consolidating from a much, much higher base.
• 19:51
  SPEAKER_01: Now, this is likely going to be led by silver, which is also coiled for a rally to all-time highs through all-time highs.
• 20:01
  SPEAKER_01: This return to safe haven, gold and silver and hard assets is going to be a major factor driving the prices of paper settled gold and silver to a more equitably physically derived market price that truly reflects supply and demand fundamentals.
• 20:17
  SPEAKER_01: Institutionals call this HALO, which is heavy assets, low obsolescence.
• 20:24
  SPEAKER_01: In other words, selling debasing dollars to buy all qualifying halo hard assets, which is what central bank sovereigns and institutionals are all in on.
• 20:35
  SPEAKER_01: And this is one of the primary drivers that will continue to evidence the long for their own books bullion banks projecting unfazed$5,600 to$8,000 2026 gold targets.
• 20:51
  SPEAKER_01: So, furthermore, into this de-dollarizing process, hard assets are rapidly being tokenized, ultimately enabling trillions, trillions of dollars to be priced in non-dollar denominated currencies, including the gold bag Yuan and the ruble.
• 21:09
  SPEAKER_00: All right, Andrew.
• 21:10
  SPEAKER_00: And uh my most important question today is like, how the heck does this impact silver?
• 21:17
  SPEAKER_01: Yeah, thanks, Shane.
• 21:19
  SPEAKER_01: I well, I just knew that would be coming up.
• 21:21
  SPEAKER_01: I just needed to pause for a second, and that silver question bubbled to the top.
• 21:26
  SPEAKER_01: Let's take a look, mate.
• 21:28
  SPEAKER_01: Now, looking at the daily spot silver chart, silver is no damage has been done.
• 21:34
  SPEAKER_01: The whole point is through all of this volatility, all that's happened is the momentums have been shaken out and rinsed, and the physical market has now found an equilibrium point where it's undervalued and is going to rise from.
• 21:52
  SPEAKER_01: So silver's at the cusp of a very large rally, and once it commences, for a myriad of reasons that we'll look at in a minute.
• 22:00
  SPEAKER_01: Shortstop at and above the 120s levels are going to all-time highs, they're going to be blown through with well-connected liquidity dividers in sync with all the bullion banks.
• 22:13
  SPEAKER_01: Long gold for their own books are also long silver.
• 22:16
  SPEAKER_01: And as we've been reporting, there's a wide range of 2026 silver price estimations, all above current levels.
• 22:24
  SPEAKER_01: And the most notable coming from the Bank of America, assessing a base case for$135 an ounce to their extreme bull case of$309 per ounce.
• 22:35
  SPEAKER_01: Bank of America targets are also derived from the expectation of a higher gold price alongside a gold to silver ratio compression.
• 22:46
  SPEAKER_01: Into the race to secure critical minerals, pretty much all global silver supply is being directly absorbed by the PBOC.
• 22:53
  SPEAKER_01: So price setting in the siloed global markets does not reflect the massive real-world supply shortages that exist.
• 23:01
  SPEAKER_01: Now, the reason a true supply-demand price is not reflected yet is that the last strands of the LBMA CME's hold on an allocated non-NSFR compliant silver is evidencing its last legs of playing out.
• 23:16
  SPEAKER_01: The risks of shorting gold into obvious supply shortages and strong demand are far too high.
• 23:25
  SPEAKER_01: In fact, as the historically low open interest levels show, their selling is undoubtedly being stick-handled on behalf of the Fed by four bullion banks, all of whom are long silver for their own books.
• 23:38
  SPEAKER_01: Now, given the physically black silver priced in Yuan trades at a consistent 13% premium to cash-settled LBMA silver, Yuan priced silver is also ultimately convertible to physical gold.
• 23:51
  SPEAKER_01: And what is completely missed by the technical traders is the impact this will have on exposing how unsustainable the synthetically mispriced ratio trade is.
• 24:03
  SPEAKER_01: Keep that in mind, is Yuan, anything priced in Yuan, whether it's oil, silver, gold, is immediately convertible to gold.
• 24:14
  SPEAKER_01: So essentially that changes the game.
• 24:16
  SPEAKER_01: Certainly changes the game in the ratio trade.
• 24:19
  SPEAKER_01: And this undoubtedly picked up by the Bank of America, whose upper dollar price band at 309 bucks is dependent on the gold price rising alongside the ratio compressing to much more credible levels.
• 24:33
  SPEAKER_01: Now, where we saw up here 120 ounces of silver for one ounce of gold was a casino rig job, the scale of which was so far out of kilter, it really ought to be described as wire fraud.
• 24:47
  SPEAKER_01: And while export controls broke the back of this, you could see it broke the back of this rig casino game, 61 to 1 is still a joke, even accepting current geological estimates of 0.075 parts per million versus gold at 0.004 per million, that equates to around 19 to 1, not the current market price of 61 to 1, which would equate to right now a$250 per ounce price at this moment.
• 25:22
  SPEAKER_01: Silver is compressed beyond belief.
• 25:25
  SPEAKER_01: And we see the SGE physical market liquidity lines have crossed sufficiently to force a realistic gold to silver exchange ratio to actually return.
• 25:37
  SPEAKER_01: So who is who are the remaining culprits hanging on for dear life?
• 25:43
  SPEAKER_01: Um, please go back a couple of episodes where we conducted a really deep dive into the four LPMCL actors who run the silver cartel.
• 25:54
  SPEAKER_01: However, they're now just really acting as agent for the real culprits, and here they are.
• 26:00
  SPEAKER_01: As we previously assessed, the Office of the Comptroller Precious Metals Gold and Silver Reports have historically listed and named four agent banks holding the unallocated, unbacked foreign exchange gold and silver bets.
• 26:15
  SPEAKER_01: While and while the latest fourth quarter 2025 report has from the third quarter 2025 onwards mysteriously stopped naming JP Morgan, Goldman, City, and Bank of America, all of whom are long gold and silver for their own books.
• 26:37
  SPEAKER_01: It's not plausible that any of these taxpayer-funded, too big-to-fail bank compliance officers would allow these banks to hold such large, unbacked, unallocated risk liabilities on their books if they were not being PPT-backed.
• 26:56
  SPEAKER_01: Now, of note, for the first time in OCC reporting history, these four banks are no longer named.
• 27:05
  SPEAKER_01: However, what is notable is that precious metals or maturities had risen by$85 million into the end-of-year capping efforts.
• 27:14
  SPEAKER_01: In the real world, if a Western silver buyer locks in foreign exchange spot silver at the so-called global benchmark silver price, and then if you then say I want, I would demand my T plus two delivery, please, well, if you can't be encouraged to accept the uh the the that that credit, um, them crediting those prices, unallocated prices of silver, into guess what?
• 27:43
  SPEAKER_01: The cartel's very owned uh SLV ETF exchange, which is of course otherwise undeliverable.
• 27:52
  SPEAKER_01: So, yes, but you can have them, you can you can you can take possession of this paper version and you can monitor it and you'll be credited with some shares.
• 28:03
  SPEAKER_01: We've all done episodes before on you ain't got it, don't trust it.
• 28:08
  SPEAKER_01: But the four four LPMCL cartel members that control the daily fixed benchmark, they're gonna demand if you demand, if you say I still want delivery, they're gonna demand one of two things from you as a buyer.
• 28:26
  SPEAKER_01: And one comes with a warning.
• 28:30
  SPEAKER_01: Now, the larger the size requested for T plus two in physical delivery, the higher the unre regulated, bilaterally settled, the unregulated over-the-counter price would be.
• 28:43
  SPEAKER_01: In fact, the larger you want, the higher the price.
• 28:46
  SPEAKER_01: Now, unseen below the smoke in mirror's loco London FX benchmarks or silver fixes, one of two things are will and are already happening.
• 29:00
  SPEAKER_01: One, we've got a massive 13% premium over spot, and it's gonna be demanded of you, and or because guess what that interconnects with the only hedge they've got would be a physical market in Shanghai.
• 29:16
  SPEAKER_01: So that's gonna be the price you will pay, and or the physical uh order will be point blank refused for delivery, it's a hell of a lot easier to just refuse it, and that's accompanied with a warning that the non-LBMA buyer will be blacklisted by the MCPLCL cartel.
• 29:39
  SPEAKER_01: Now, the other thing is so failing all of that shenanigans, given the four-member cartel also controls the banking relationships for an albeit dwindling number of western-facing uh producers, refiners, over-the-counter trading banks, etc.
• 29:57
  SPEAKER_01: And as we can personally attest to, after some years ago we locked in a forward price and a tonnage agreement with a foreign producer, their LBMA banking relationships immediately picked up.
• 30:13
  SPEAKER_01: That any such direct uh producer delivery agreement um uh would would then be captured because they offer offer the banking services run through them, they're captive in that sense, and then you would be issued, you would still be issued with a blacklist warning because they would understand they would have picked up that you have actually uh tried to buy directly, avoiding them.
• 30:43
  SPEAKER_01: So, again, that's again another blacklist in warning.
• 30:48
  SPEAKER_01: Now, while this historically worked to silo silver inside this cartel-controlled ring fence, most producers, refiners, and institutional buyers have migrated into the SGE Free Trade Zone Corridor, where all the trades are 100% physically backed, deliverable, and settled at a true supply-demand price, which by no coincidence consistently trades at a 13% premium over the COMEX price.
• 31:17
  SPEAKER_01: Go figure.
• 31:19
  SPEAKER_01: So this brings us to what is really causing the LPMCL CME cartel to lose control of the real global price setting benchmark.
• 31:30
  SPEAKER_01: Illustrating the cartel benchmark represents an undeliverable, unbacked cash-settled price, it's the inability for this so-called global silver hub to be able to actually arbitrage the consistent 13% Shanghai spot premium.
• 31:46
  SPEAKER_01: Why wouldn't you?
• 31:47
  SPEAKER_01: If you are the global hub for silver, why wouldn't you take that difference?
• 31:51
  SPEAKER_01: Why wouldn't you uh arbitrage it?
• 31:54
  SPEAKER_01: In fact, as of February report, the LOCO London cartel has now entered its fifth year of redundancy as an exporter to China.
• 32:04
  SPEAKER_01: And this week's update has not gone unnoticed either.
• 32:10
  SPEAKER_01: So this COMEX doom loop, as we call it, has once more provided all physical market participants an unfettered view into the CME's weak-handed obligation to honor the next in an impossible deliver just now.
• 32:27
  SPEAKER_01: The May delivery that we talked about was coming up for delivery.
• 32:31
  SPEAKER_01: 792 tons of COMEX May silver deliveries are being stood for at deeply, physically mismatched prices, certainly at least 13% below, and in many cases has been captured a hell of a lot lower.
• 32:49
  SPEAKER_01: But someone has to pick up the tab, and it's not the COMEX buyer standing for delivery.
• 32:55
  SPEAKER_01: Just follow the trail into the increasingly opaque OCC report for that answer.
• 33:02
  SPEAKER_01: And once EFP'd out of the COMEX, these silver warrants are reported as, yeah, they're delivered, but they land in unallocated form in London.
• 33:14
  SPEAKER_01: And then in order to fulfill the delivery obligations, you run into all the problems we just talked about.
• 33:20
  SPEAKER_01: Um otherwise it would blow, it would it would blow the COMEX, it would force a COMEX force measure default.
• 33:28
  SPEAKER_01: So this unallocated silver must be cash settled at the SGE physically determined benchmark price, where it has to be purchased at market to satisfy physical loadout obligations.
• 33:42
  SPEAKER_01: And as we've recently outlined, while underpriced Comex silver is locked in for delivery, due to export controls, first notice warrants being demanded for delivery command premiums that mirror this 13% SGE physically settled spot price.
• 34:01
  SPEAKER_01: Go figure.
• 34:02
  SPEAKER_01: This means that cash settlements are based on an agreed related bilaterally settled LBMA physical delivery price, which is currently analyzed.
• 34:13
  SPEAKER_01: It depends on the lease rate on the day, but it averaging 8% is a lot higher in many instances.
• 34:21
  SPEAKER_01: And today it is.
• 35:03
  SPEAKER_01: So they have to be sold into the market to do so, and ultimately end up flowing into the SGE physical hubs, whichever way you look at it, is forcing these borrowed and sold derivative benchmarks to be paid back at sequentially higher and higher prices.
• 35:19
  SPEAKER_01: This is the doom loop that we keep drawing attention to.
• 35:49
  SPEAKER_01: That is your only option.
• 35:50
  SPEAKER_01: There's nothing left.
• 35:52
  SPEAKER_01: Otherwise, you're gonna have it's running into that situation, whether you like it or not.
• 35:57
  SPEAKER_01: The CME's self-reported distrust is precisely the reason why central bank sovereigns and the largest institutional traders, producers, refiners, they've exited the casino, migrating their trading and vaulting operations into this very welcoming, western-facing 100% physical SG exchange.
• 36:21
  SPEAKER_01: This is why we publicly drew attention to the only real thing of interest in the cartel-generated COT reports, which we looked at in more detail.
• 36:31
  SPEAKER_01: And that is the steady exit of institutional open interest.
• 36:36
  SPEAKER_01: It's disappeared.
• 36:37
  SPEAKER_01: And if you connect the dots, it's clear this exiting COMEX lifeblood liquidity is either moving to buy and volt metal in alternative physical exchanges and or large and they're large enough um uh actors to be able to migrate into the increasingly liquid high-quality liquid asset physically backed SGE goal corridor, never to return.
• 37:03
  SPEAKER_01: And that the criteria to access it is becoming more and more available.
• 37:11
  SPEAKER_01: Pretty much all the remaining extremely low levels of open interest, they now relate, as we say, to the otherwise neutral commercial market makers, and they are servicing the speculators, 80% of which is either naked long or short, momentum-driven actors.
• 37:30
  SPEAKER_01: These useful fields are tools, they just as I say, they happen to be short.
• 37:38
  SPEAKER_01: They happen to be short.
• 37:40
  SPEAKER_01: However, the real message is that as this never-to-return institutional grade western-facing liquidity exits, inexorably settling against a physically determined supply-demand price.
• 37:58
  SPEAKER_01: The resulting global determined higher price, this it forces a higher price loop and it's blowing back into underpriced COMEX.
• 38:10
  SPEAKER_01: That's happening.
• 38:11
  SPEAKER_01: And while this trend has been more evident in gold, this is particularly relevant to silver by design because the CMALBMA unallocated silver is cash-settled, it cannot be recognized as a high-quality liquid asset.
• 38:26
  SPEAKER_01: That's what the uh the cartel has always tried to avoid it becoming, as they did with gold and failed with gold.
• 38:34
  SPEAKER_01: But this that the moment silver lands in the 100% physically backed Asian-facing free trade zone silver exchanges, it can be treated as a high-quality liquid asset that can be institutionally collateralized.
• 38:50
  SPEAKER_01: This identifies silver as massively underpriced and is so missed by so many people who are focused on Western the Western-centric action.
• 39:02
  SPEAKER_01: Well, I really, I guess I hope we've combined as many of your questions, basically, as possible.
• 39:09
  SPEAKER_01: And we look forward to receiving more, so please do send them.
• 39:13
  SPEAKER_01: However, as usual, I've just I've just got one for you.
• 39:17
  SPEAKER_01: How much physical gold and silver do you own right now?
• 39:21
  SPEAKER_01: It's the only question I have.
• 39:23
  SPEAKER_00: All right, Andrew, and that is amazing advice.
• 39:27
  SPEAKER_00: I mean, really, uh physical, physical, physical, buy physical, make sure it's physical.
• 39:31
  SPEAKER_00: Thank you so much.
• 39:32
  SPEAKER_00: And that wraps up another episode of Life in the Vault, brought to you by Kinesis Money.
• 39:37
  SPEAKER_00: And a big thank you again to Andrew Maguire for sharing his deep market knowledge and also to you for tuning in and being a part of this global growing uh community.
• 39:48
  SPEAKER_00: It's growing really, really fast.
• 39:49
  SPEAKER_00: Thank you so much.
• 39:50
  SPEAKER_00: And um, if you're new here, make sure that you hit that subscribe button right there and tap on the bell so you'll be the first to know as soon as these episodes go live.
• 39:59
  SPEAKER_00: And if you've been with us for a while and we know who you are, you know, help keep spreading the word about the show.
• 40:05
  SPEAKER_00: You know, give us a like, not now, but hit that like button right now and share this episode with someone who really needs to hear it.
• 40:12
  SPEAKER_00: Get your questions into Andrew.
• 40:14
  SPEAKER_00: We talked about that.
• 40:15
  SPEAKER_00: There's a link below, and your question may well be selected on our next episode right here on Live from the Vault.
• 40:22
  SPEAKER_00: And with that, we'll be back next week with more truth that you just won't find in the mainstream media.
• 40:27
  SPEAKER_00: And until then, bye physical, make sure it's backed one to one.
• 40:31
  SPEAKER_00: And we'll see you right here next time on Live from the Vault.
• 40:34
  SPEAKER_00: Bye for now.