Latest / Kinesis Money / FED’s Gold Revaluation Nightmare begins… - LFTV Ep 277

Transcript

FED’s Gold Revaluation Nightmare begins… - LFTV Ep 277 · Kinesis Money

• 0:00
  SPEAKER_00: This shift proves gold is being treated as a strategic sovereign asset, not just a reserve holding.
• 0:08
  SPEAKER_00: It's this simple.
• 0:20
  SPEAKER_01: Welcome to Life from the Vault.
• 0:25
  SPEAKER_01: Welcome to Life in the Vault, brought to you by Kinesis Money, and we're glad that you've joined us here on Life in the Vault.
• 0:31
  SPEAKER_01: And this is the show that goes beyond the headlines to uncover the truth about the precious metals industry.
• 0:36
  SPEAKER_01: And joining us today is Kinesis's very own world-renowned whistleblower and precious metals industry expert, Andrew Maguire.
• 0:44
  SPEAKER_01: And this week we'll be answering more questions from you, the Life from the Vault community.
• 0:48
  SPEAKER_01: So keep those questions coming in just by clicking on the link below there in the description.
• 0:53
  SPEAKER_01: And you never know, your question may well be answered right here on Life from the Vault.
• 0:58
  SPEAKER_01: So let's head over to the UK and talking gold with Andrew McGuire.
• 1:04
  SPEAKER_01: All right, Andrew.
• 1:05
  SPEAKER_01: Following our discussion about the gold and silver bottom being in, I think our subscribers will be happy with this episode in particular.
• 1:13
  SPEAKER_01: And why is that?
• 1:14
  SPEAKER_01: Because we've had so many questions about targeted, you know, this targeted overshoot of that 200 DMA.
• 1:21
  SPEAKER_01: Uh, and and I guess the biggest question is who was behind it and what does it mean going forward?
• 1:26
  SPEAKER_01: Can you kind of catch us up here and bring us up to date on what you're seeing right now?
• 1:30
  SPEAKER_00: Yeah, hi, Shane.
• 1:32
  SPEAKER_00: Hi, everybody.
• 1:32
  SPEAKER_00: Yes.
• 1:33
  SPEAKER_00: Um, and thank you for all your questions.
• 1:35
  SPEAKER_00: I'm I'm sorry I couldn't get to um there was two or three others I really wanted to get to.
• 1:40
  SPEAKER_00: I'll do it next week because there's some really good ones there.
• 1:44
  SPEAKER_00: Um, but I mean, let's because let me kind of like there were so many questions about what we just discussed here about the bottoming action and and who was behind it and all that kind of stuff.
• 1:55
  SPEAKER_00: So let's have a look.
• 1:57
  SPEAKER_00: Um, and and we'll start by stepping through what was really a really uh extremely overdue capitulative uh gold and silver bottoming action.
• 2:08
  SPEAKER_00: Uh and then well, let's start with the larger picture and then really what to expect uh more immediately as well, because I know that's important.
• 2:17
  SPEAKER_00: Now, in the larger picture, we'll just deal with that quickly first.
• 2:22
  SPEAKER_00: Now, while the mechanically correlated cross-asset moves in gold versus the dollar, that is oil and bonds, uh, et cetera, and having weighed bearishly on, and I will specify on synthetic gold, um, and throughout this entire flip-flop, on, off, 100 day, 110 days war cycle.
• 2:45
  SPEAKER_00: And it was on, off as all the time.
• 2:47
  SPEAKER_00: I mean, but yet through this whole cycle, central banks, sovereign buyers, and the wider cohort of Asian safe haven physical gold buyers have all along been capitalizing on this disconnect between paper pricing and real assets.
• 3:04
  SPEAKER_00: Well, no surprise, paper pricing is 100 to 1.
• 3:07
  SPEAKER_00: Real assets, uh, real and real physical assets are unleveraged.
• 3:12
  SPEAKER_00: So what they've been doing this whole time is adding very large size, both transparently as well as central bank to central bank unreported monetary gold purchases.
• 3:27
  SPEAKER_00: And we know, uh, as we discussed last time, we know that uh when India put their gold up, it was leased to the PBOC.
• 3:34
  SPEAKER_00: It is being bought back, you know.
• 3:36
  SPEAKER_00: So essentially none of this ever hits the market.
• 3:39
  SPEAKER_00: So people that talk about, oh they've sold.
• 3:42
  SPEAKER_00: No, actually, what gold did was act as the perfect safe haven because it was able to be cashed in instantly for uh for for to to to to meet your dollar shortfalls.
• 3:54
  SPEAKER_00: So while everyone says, oh, it wasn't a safe haven, yes, it was.
• 3:58
  SPEAKER_00: Absolutely was.
• 4:00
  SPEAKER_00: Now, these guys that leased their gold back out, central bank to central bank, are buying it back.
• 4:06
  SPEAKER_00: Now, what the Iran war exposed, it exposed really the US non-performance as the oil producers protector.
• 4:15
  SPEAKER_00: This was a big deal.
• 4:16
  SPEAKER_00: So, as we evidenced by the UAE, the incentive to use dollars to secure this protection just really diminishes.
• 4:24
  SPEAKER_00: And China has trillions in official and shadow banking uh dollar FX reserves.
• 4:31
  SPEAKER_00: Brad Setzer, I remember, we did episodes about that, talked about uh literally trillions in shadow banking reserves, as well as what's uh published.
• 4:42
  SPEAKER_00: And while they've been exchanging dollars for gold for decades, the PBOC stepped up exchanging excess dollars for literally hundreds of tons of unreported monetary gold over the last three months.
• 4:57
  SPEAKER_00: And as it will turn out, that this is if it's going to be seen, this was at the Fed's expense.
• 5:06
  SPEAKER_00: The World Gold Council surveyed 64 central banks, and 45% stated they plan to buy more gold in the coming year.
• 5:16
  SPEAKER_00: Funding purchases through domestic accumulation programs, these reports back up what our liquidity providers have been reporting all along.
• 5:24
  SPEAKER_00: And they continue to report.
• 5:26
  SPEAKER_00: Missing is the liquidity provider estimations of hundreds of tons of unreported central bank monetary gold accumulations.
• 5:36
  SPEAKER_00: So, more than 110 days into what was expected to be a three-day conflict with Iran, it became clear that the US had significantly miscalculated.
• 5:48
  SPEAKER_00: So, cutting to the quick, the US and the wider West has begun facing unplanned increases in oil and commodity prices, even though that's backing off a little take a long time to actually erode.
• 6:02
  SPEAKER_00: And it what it did is add to mounting stagflationary pressures.
• 6:06
  SPEAKER_00: And this effect has increasingly been reflected in Western-facing gold, which was already beginning to break away from these bearish mechanical correlations before this week's peace deal uh looks to be uh getting signed.
• 6:23
  SPEAKER_00: Now, a bit later, we're going to look at the mammoth side footprints left in the charts that mark the point where unleveraged physical buying overran the deluge of 100 to 1 leverage paper supply into the largest Shanghai spot premiums recorded since November 2008.
• 6:44
  SPEAKER_00: We'll look at that in a little while.
• 6:47
  SPEAKER_00: But to finish up on the larger picture, it's now been realized that Iran has military regional and strategic advantages over the US, including underappreciated missile capabilities alongside very, very strong support from China and Russia.
• 7:07
  SPEAKER_00: Iran has now perceived to have the upper hand with the ability to maintain pressure on the US-linked bases, regional infrastructures, and key shipping routes, such as Hormuz, if the peace deal collapses, which likely means the US will do their utmost to ensure the peace deal will not collapse.
• 7:30
  SPEAKER_00: The US has realized that any further escalations would really push oil, commodities, inflation significantly higher.
• 7:38
  SPEAKER_00: Sustained energy shocks have already weakened the G7 economies.
• 7:44
  SPEAKER_00: You can see it already, uh scrambling.
• 7:47
  SPEAKER_00: Currencies, capital markets being weakened, it's already created an impossible to ignore bullish for gold, stagflationary environment, which will take a long time to exhaust.
• 8:00
  SPEAKER_00: And flying under the Fed's chart-painted bearish narrative, and we'll look at why it was them in a minute.
• 8:08
  SPEAKER_00: So under all of this, the global majority has not wavered from its 6,000-year acceptance that accruing safe haven gold into uncertain times is the default position to take, and one that continues to strengthen.
• 8:25
  SPEAKER_00: Asian physical gold demand offers a really small window, because that's you can't hide that they've been buying gold.
• 8:32
  SPEAKER_00: It offers a little window into the wider scale of global South demand.
• 8:37
  SPEAKER_00: Now, liquidity assess that the paper to physical imbalance has reached an inflection point that will force the unlined of a very large, impossible to defend short squeeze into rapidly depleting stock of what is 100 to 1 momentum hedges for the Fed to have to short cover into.
• 8:59
  SPEAKER_00: So really, when the head is the Fed is trying not to add shorts to their already deep the underwater position, what they're using is they're bringing in, allowing uh incentivizing uh the the the wrong at both ends momentums, we'll label the couple of them in a minute, into into taking a short position, uh, then they can then they need to cover into them, they need to cover those hedges at some point.
• 9:28
  SPEAKER_00: Uh, and uh before Asia does, it takes it all off the market.
• 9:32
  SPEAKER_00: And the Fed is the only central bank still defending the dollar against gold.
• 9:38
  SPEAKER_00: And liquidity providers assess that this war-induced tailwind, really, they got, um, provided them the very last throwback kick at the gold price suppression can.
• 9:52
  SPEAKER_00: It's been going on a long time.
• 9:55
  SPEAKER_00: But this time they were met with very, very large, unfactored, competing central bank sovereign and global south institutional physical demand.
• 10:03
  SPEAKER_00: Quite simply, under the smoke and mirrors synthetic action, if you look at any chart and look at the chaos, the Fed has dug an even deeper hole ahead of Trump's renewed call to audit Fort Knox.
• 10:17
  SPEAKER_00: Now, with COMEC's open interest evaporating and institutional flows long ago migrated into physical exchanges, the only solution for the Fed to extricate itself from its insurmountable 60-year rehypothecated abyss is to fold its naked shorthand into a US Treasury gold revaluation event.
• 10:42
  SPEAKER_00: And following the loss of face Iran war miscalculation, which even if the peace deal sticks, it will take a long time to recover, driving an unfactored debt-fueled, bearish environment for stocks and bonds into stagflationary pressures.
• 11:01
  SPEAKER_00: Not seeing it right now, but it's there.
• 11:04
  SPEAKER_00: There's never been a better segue for the White House to sanction a US Treasury gold revaluation.
• 11:11
  SPEAKER_00: One that will very well suit Bassent and the entire Trump administration.
• 11:18
  SPEAKER_00: Now, this Financial Times piece from yesterday illustrates that global central banks no longer trust storing their physical gold in New York or London, and following the last three months of geopolitical uncertainty, they're stepping up, repatriating their sovereign assets.
• 11:34
  SPEAKER_00: It's taken decades, but Gata's golden enveloping horn has fully encircled a trapped Fed.
• 11:42
  SPEAKER_00: With gold having overtaken US Treasuries as the top reserve asset, as trust in the dollar-based systems weaken, this shift proves gold is being treated as a strategic sovereign asset, not just a reserve holding.
• 11:59
  SPEAKER_00: It's this simple.
• 12:00
  SPEAKER_00: Central banks are moving their gold out of London and New York to reduce geopolitical and access risks.
• 12:08
  SPEAKER_00: India and France are among the biggest recent repatriators, with France now storing all its gold domestically.
• 12:16
  SPEAKER_00: Geopolitical risks, we've got sanctions, fears over repatriation access, there's driving them to reduce their reliance on London and New York vaults.
• 12:24
  SPEAKER_00: However, not factored into this, and other similar reports that are out there now is that both the Yuan and the ruble are one-to-one convertible to gold.
• 12:35
  SPEAKER_00: And as we drew attention to in our February Live from the Vault liquidity provider report, in addition to silver and gold export controls, Russia and China are actively monetizing silver.
• 12:49
  SPEAKER_00: Trade flow analysis backs up that Russia is monetizing physical silver as a reserve asset for trade settlement.
• 12:58
  SPEAKER_00: In addition to the Russia Central Bank reported 500 tons of gold produced in 2025, Russia produces systematically 1200 tons of silver per year.
• 13:11
  SPEAKER_00: That's what they produce.
• 13:14
  SPEAKER_00: None is exported.
• 13:15
  SPEAKER_00: And we've been drawing attention to how the physically subtle SGE physical gold and silver corridor has enabled this silver to be collateralized alongside gold as a high-quality liquid first-tier asset class because it's in a physical environment.
• 13:33
  SPEAKER_00: Alongside gold, this means that that the yuan silver and ruble silver is one-to-one backed with physical.
• 13:43
  SPEAKER_00: Consistently trading at a plus or minus 13% premium to London spot silver.
• 13:49
  SPEAKER_00: All of this means the only central bank still short gold is in big trouble.
• 13:56
  SPEAKER_00: And following the Fed's Bundesbank 2013 repatriation debacle, there's no other way of just to is what an embarrassment.
• 14:06
  SPEAKER_00: Where the Bundesbank were refused entry to inspect and even audit its US holdings, then it was told it would take five years to return just 300 tons of gold, with some of those bars eventually returned as newly minted, not what was deposited, and mixed in with non-compliant melt gold to boot.
• 14:29
  SPEAKER_00: So what we're saying is that's sufficient empirical evidence, along with other evidence, uh empirical evidence, that indicates that an unknown percentage of the 8,100 tons of U.S.
• 14:42
  SPEAKER_00: Treasury gold is either not there or it's hypothecated, which leaves the Fed nursing the residue of a 60-year bet against gold in a real quandary.
• 14:54
  SPEAKER_00: And that's just putting it kindly.
• 14:57
  SPEAKER_00: There isn't sufficient above-ground physical supply for the Fed to go to market to buy back very large size of immediately deliverable bullion.
• 15:07
  SPEAKER_00: It's just not there at any price.
• 15:10
  SPEAKER_00: Meaning a paper gold revaluation from$42.22, which is still out, uh, to market would be the only solution.
• 15:21
  SPEAKER_00: And that market price is probably going to be somewhere where a minimum of where the Shanghai physical price is, which is pretty much where it was at$5,000 initially, at$5,000 before we had uh the likes of the of the meme traders uh rising um coming in and and uh ramping gold up by 600 bucks from that level.
• 15:49
  SPEAKER_00: Um, so essentially what what that means is that that would be the minimum, and then obviously at that point, once it's revalued, obviously that price is then going to rise.
• 16:01
  SPEAKER_00: Now, we got a lot of questions on exactly how a US Treasury gold revaluation would likely play out.
• 16:09
  SPEAKER_00: And while the mechanics of this only requires just a very simple keystroke gold revaluation account adjustment, wind, just wind of an upcoming revaluation, would gap the global SWOT gold price, probably hundreds, if not thousands, of dollars higher.
• 16:28
  SPEAKER_00: So they're going to avoid that.
• 16:30
  SPEAKER_00: So, as we previously um outlined in more granular detail in other episodes, it would be affected over a weekend based upon benchmarking a Friday closing price, after which a higher bid asked gold price would be quoted until the Monday open.
• 16:48
  SPEAKER_00: Clearly at a substantially higher price than benchmarked.
• 16:52
  SPEAKER_00: And this would just suit the Fed, who would join the PBOC, the Bank of International Settlements, and every other global central bank in being in being supportive of a rising collateralizable gold price.
• 17:07
  SPEAKER_00: There'd be no need for the gold to be synthetically fixed above or below its true physical demand, supply-demand price, which is going to be established in exchanges where to own a bar, you have to you have to own a bar to sell it, and you have to pay for that bar to receive it.
• 17:28
  SPEAKER_00: So, what this is is a warning to the likes of Jane Street, who through massive COMEX and OPEX leverage have turned gold and silver into acting like meme stocks.
• 17:42
  SPEAKER_00: In February, overshooting to the upside, and as most recently evidence, overshooting to the downside.
• 17:50
  SPEAKER_00: There's little doubt the house will get the nod ahead of the fry of this Friday event.
• 17:55
  SPEAKER_00: But non-member unhedged, useful fools would very likely be to be caught short.
• 18:03
  SPEAKER_00: May be given the grace to settle, especially as the brokers.
• 18:07
  SPEAKER_00: We've seen two broker events where they've collapsed the brokers, that would cause a banking crisis.
• 18:13
  SPEAKER_00: So perhaps they get left off the hook.
• 18:16
  SPEAKER_00: But none-member unhedged useful fields would likely get caught short.
• 18:22
  SPEAKER_00: As we know, long footed option writers get carried out feet first, carefully managed by the Fed, and the house long they're on long uh the house is long or Basel 3 NSFR hedged.
• 18:37
  SPEAKER_00: The Kermex house, they they themselves would avert a default.
• 18:41
  SPEAKER_00: So 60 years of re-hypothecated gold would be keystroke squared, and ongoing gold hedging borrowing costs would have to reflect this physically deliverable price.
• 18:53
  SPEAKER_00: Not what we see now.
• 18:55
  SPEAKER_00: And as we highlighted in our last episode, skirting and leveraging up CME's already minuscule, 0.049% under five, so under 0.5% paper gold borrowing costs.
• 19:12
  SPEAKER_00: We're seeing that now.
• 19:14
  SPEAKER_00: And position concentration limits being violated, unrecorded predatory OPEX traders, such as Drain's Jane Street and some others, write very large options positions that force the LBMA, the CM LBMA market makers to take the long or sort side.
• 19:34
  SPEAKER_00: They are market makers.
• 19:35
  SPEAKER_00: They have to.
• 19:36
  SPEAKER_00: Now, when these related algos suddenly pull the plug on unsuspecting COMEX traders, this leverage can temporarily exceed 150, possibly more like 200%, in turn creating upside or downside air pockets while these hidden OPEX actors appear, they appear to stay within regulated position limits, but only after they ring the register on regulated futures positions.
• 20:03
  SPEAKER_00: And they stay right off the radar.
• 20:05
  SPEAKER_00: We went in more into more uh detail on how they did it last time.
• 20:09
  SPEAKER_00: Now, while this position concentration game was solely in the hands of officials and insiders, it's now being copied by non-cartel emulators.
• 20:20
  SPEAKER_00: Ironically, serving to fast track the COMEX's demise, where, as evidenced by all-time low open interest levels, all the real money, central bank sovereigns and institutional hedges and traders have migrated to where they can operate inside a siloed, true supply-demand, high-quality liquid asset, physical environment, where they can actually reliably collateralize their positions.
• 20:46
  SPEAKER_00: They don't care.
• 20:48
  SPEAKER_00: They don't want the volatility.
• 20:50
  SPEAKER_00: They just want to know what the physical price is so they can trade and collateralize it.
• 20:57
  SPEAKER_00: And like any other card counter, the house will throw the likes of Jane Street and other non-member cartel emulators under the bus.
• 21:08
  SPEAKER_00: I say good riddance.
• 21:10
  SPEAKER_00: Now, especially as this leveraged COMEX-driven paper to physical disconnect is getting far too obvious to ignore.
• 21:17
  SPEAKER_00: With gold coiled between key technical levels, the ingredients for a violent move are falling into place.
• 21:25
  SPEAKER_01: All right, Andrew, what are you seeing on the ground as we speak right now today, Wednesday?
• 21:30
  SPEAKER_00: Yeah, I promised you what we'd see more immediately.
• 21:33
  SPEAKER_00: And really, to best illustrate, let's let's dive into the chart and look at the chart footprints because they reveal an awful lot.
• 21:43
  SPEAKER_00: Now, just for the record, I'm recording this about two hours before FOMC, after the uh PM fix in uh Goldfix.
• 21:51
  SPEAKER_00: And this will be published tomorrow.
• 21:53
  SPEAKER_00: So I'm trying to keep it as uh current as possible, allowing time to produce the Episode.
• 22:01
  SPEAKER_00: But this will be released tomorrow.
• 22:03
  SPEAKER_00: So let's have a look.
• 22:05
  SPEAKER_00: Really, it's all about the chart footprints.
• 22:08
  SPEAKER_00: Lower percentage-based margin borrowing costs have enabled momentum participants to keep using short profits to continuously double down all the time, enabling them to keep adding more and more leverage 100% to one bubble short supply, creating a meme-like short-sold condition.
• 22:28
  SPEAKER_00: Now, last Tuesday's, and I'm drawing attention to this, future-centric gold and futures short-selling salvo was deliberately timed for London PM fix and for liquidity to thin out after the foreign exchange gold market cleared for the day.
• 22:47
  SPEAKER_00: Now, and this is gold, and this is exactly where London cleared, and this is silver, exactly when London cleared.
• 22:57
  SPEAKER_00: Now, this selling had by Thursday run completely out of sufficient bandwidth to paper over an accrual of very large Asian physical cold demand.
• 23:11
  SPEAKER_00: Now, lower percentage-based margins enabled momentum participants to expand native short open interest.
• 23:18
  SPEAKER_00: And as we drew attention to in our last episode, was creating the inverse of a prior naked long condition, which was between 5000 and 5,600.
• 23:31
  SPEAKER_00: And this is when a series of margin calls of uh basically margin calls in gold and in silver, all timed together, were literally called in.
• 23:43
  SPEAKER_00: This was just before they converted into from a fixed margin call into a percentage-based margin call.
• 23:52
  SPEAKER_00: And this is what popped this 100 to 1 naked raw bubble into the 562680 gold futures high, and in silver into the 121,785 gold silver futures high.
• 24:07
  SPEAKER_00: Now, what I want to draw attention to is last Thursday, and this is the low marked last Thursday, this officially driven chart painted bottom fishing expedition drove gold futures into an unsustainable 2008 November 2008 style bubble short disconnect, where the$680 lows commanded extremely large PBOC premiums, driving a gold revel that tripled in value, literally tripled, 190, nearly nearly 200%.
• 24:45
  SPEAKER_00: And just as it did then, into this Thursday low, this officially driven paper to physical divergence had reached the point of an imminent very large short squeeze.
• 24:59
  SPEAKER_00: And as we've seen, every single morning without fail, Asia comes in and buys every dip, even though they were beginning to sell every dip which they had into that Tuesday sell-off.
• 25:11
  SPEAKER_00: And they came in, and what did it do?
• 25:14
  SPEAKER_00: It forced the commercials exposed to T plus one delivery obligations to start to reel in the momentum shorts before Asia consumed yet another tranche of their short cover.
• 25:29
  SPEAKER_00: Now, the strong, unwavering Asian physical gold and silver buying we've been in reporting was by Friday no longer going unnoticed.
• 25:39
  SPEAKER_00: There's been lots more reports since then, but it's still on the zero hedge.
• 25:44
  SPEAKER_00: It's worth a good read.
• 25:45
  SPEAKER_00: And it's worth also noting that the rally off Thursday's lows commenced despite the CME borrowing margins being cut to under 0.048%.
• 25:59
  SPEAKER_00: It was just$20,452 to control 100-ounce futures positions.
• 26:06
  SPEAKER_00: At this point, it still failed to generate enough fuel to drive further momentum short selling.
• 26:14
  SPEAKER_00: Notably, as we record this today, following the rally above$4,300 into the mid-4300s and fixing above that, the percentage-based margin premiums are still well below 0.05%.
• 26:31
  SPEAKER_00: Now, this disconnect has been made evident by the very large physically backed Shanghai gold and silver premiums over London Spot.
• 26:40
  SPEAKER_00: Now Tuesday's premium, and this is really what I want to draw attention to, Tuesday's$78 premium over London Spot at the fix, at the actual fix point, was the largest since November 2008.
• 26:59
  SPEAKER_00: And with commercials exposed to T plus one delivery obligations, they started to one-to-one take the long side of meme shorts.
• 27:10
  SPEAKER_00: And while this$78 premium was just at the fix and it dropped down to about$20 and then$13 afterwards, somebody locked in spot gold$78 below what they really wanted to pay.
• 27:26
  SPEAKER_00: And this backwashes into the Conex.
• 27:29
  SPEAKER_00: Shanghai spot silver also reached a 16% over London spot, signaling that unleveraged COT, a commercial, and T plus one delivery demand would overwhelm the scope of all the leveraged supply, forcing the house to call in shorts before Asia absorbs all of this available official cover.
• 27:53
  SPEAKER_00: These physical silver and gold outflows have only just begun to be marked to market.
• 28:03
  SPEAKER_00: And this effect will increasingly backwash into the COMEX to be EFP'd into London for T plus one delivery.
• 28:12
  SPEAKER_00: Now the Fed is the only global central bank that currently benefits from a lower gold price.
• 28:17
  SPEAKER_00: A rate of around 10 tons of gold per month, the PBOC has systematically taken alongside of all the gold the Fed has borrowed from the BIS and sold into the spot market.
• 28:31
  SPEAKER_00: And we've been tracking this over and over and over again.
• 28:35
  SPEAKER_00: Now, while they've managed to discount it back, and this is definitely part of the strategy, the BIS swap confirmation indicates that the Fed, via agent JP Morgan, borrowed and leveraged and sold a further 12 tons right here, a further 12 tons of BIS gold into the May sell-off, reinforcing the view that official supply had been responsible for fueling momentum shorts against gold.
• 29:04
  SPEAKER_00: Now put that scope into perspective.
• 29:07
  SPEAKER_00: If enough momentums can be gasolited into taking the bait, leverage at 100 to 1 equals 12 tons becomes 1200 tons of COMEX supply.
• 29:19
  SPEAKER_00: And that's exactly what's been happening.
• 29:22
  SPEAKER_00: When they borrow, they are literally, and in this case, 12 tons was borrowed here, and they converted that into 1200 tons of supply because they had some momentums to take the other side.
• 29:37
  SPEAKER_00: Now, despite however, I think what we're trying to point out here, despite all of these best efforts, these BIS bets were finally marked to market here, just$76 lower than the April's 4621 settlement, which was here, versus the 4545 settlement at the end of May.
• 30:01
  SPEAKER_00: Really says it all.
• 30:03
  SPEAKER_00: We also see silver as leading the way up higher.
• 30:07
  SPEAKER_00: Notably, silver did not make a fresh low, despite all of the uh additional margin incentives, whereas gold did because it was sh it was deliberately taken below its 200-day moving average.
• 30:21
  SPEAKER_00: That 200-day moving average, once it's regained, is going to see gap closings to the upside.
• 30:27
  SPEAKER_00: Now, for those skeptics that understandably find it difficult really to take on board that the Fed, through its agent banks, are still actively capping gold, and were the ringmasters coordinating the last three months of synthetic selling, we need to just review very, very briefly what we looked at, I think, a couple of weeks ago, uh, maybe a couple of episodes ago.
• 30:52
  SPEAKER_00: And because as it was exposed by WikiLeaks, we look, this is already a fact.
• 30:58
  SPEAKER_00: The COMEX Gold Futures Market was launched by the Fed in 1974 for the sole purpose of containing the synthetically managed and synthetically managing the price of gold.
• 31:10
  SPEAKER_00: It was specifically designed to create enough freshly printed paper gold supply to dilute and benchmark a global foreign exchange price that no longer really reflected a genuine supply-demand price.
• 31:23
  SPEAKER_00: Now, unequivocally, it was the Fed behind the rig chart painting overshoot of the targeted 200-day moving average.
• 31:31
  SPEAKER_00: They were behind this.
• 31:33
  SPEAKER_00: Yes, they incentivized the likes of these Jane Streets and these momentum traders, but literally they were targeting that.
• 31:41
  SPEAKER_00: And it was, they were, it was deliberately designed to create the narrative that gold is no longer a safe haven asset.
• 31:49
  SPEAKER_00: And as the leaked WikiLeaks member outlined, and as we have experienced into every single bullish for gold news event over the last 60 years, always, soon as there's an event, huge swathes of counterintuitive 100 to 1 leveraged paper gold supply is instantaneously dumped into the futures markets to create the illusion that the dollar is a better hedge, better safe haven hedge than gold.
• 32:18
  SPEAKER_00: And we've seen it for 60 years.
• 32:28
  SPEAKER_00: As we've currently coordinated at the moment, we've got uh dollar yen interventions.
• 32:35
  SPEAKER_00: But because gold is the long or short side of a foreign exchange cross, inflating the dollar against the gold is really it's intended to dissuade foreign central banks from swapping their unbacked dollars for US Treasury gold.
• 32:51
  SPEAKER_00: It worked when there was no central bank competition, but now there is.
• 32:55
  SPEAKER_00: And as this massive physically backed Shanghai futures market premiums have revealed, and we just looked at them, and when they are turned up, this time interventions are backfiring.
• 33:10
  SPEAKER_00: And while this rigged official capping tool has been employed repeatedly over the years, the leverage to unleverage paper to physical imbalance ultimately becomes so stretched it reaches an inflection point.
• 33:24
  SPEAKER_00: We've once more reached the point where unleveraged uh commercial T plus one delivery obligations are overwhelming a hundred to one paper supply.
• 33:35
  SPEAKER_00: That takes a lot.
• 33:36
  SPEAKER_00: And it marks the point where the house calls in the short bubble before Asia consumes its short cover.
• 33:44
  SPEAKER_00: Now, after losing control of the synthetic price setting COMAX tool, the unfactored Black Swan US Iran war event really what it did was enable the Fed to aggressively lean into this historical re-engagement of synthetic dollar, oil, bond yield, mechanical correlations, which uh plus 100 days into the war driven volatility provided Western-facing traders the illusion that gold had lost its safe havens status.
• 34:16
  SPEAKER_00: However, while this fake narrative has cleaned out every single rinseable paper long, um, alongside incentivizing a 100 to 1 bubble bet against gold, it has set up blue sky, physically driven rum into all-time highs with no leverage longs on board.
• 34:37
  SPEAKER_00: However, while bubble short momentums have provided officials with a degree of leverage short cover, for the last 19 months, the PPOC has openly been taking the long side, officially averaging 10 tons a month.
• 34:50
  SPEAKER_00: And as once it once again reported by Bloomberg, uh at this rate of uptake, that's 85% of the 12 tons of Fed-borrowed BIS gold sales were officially bought by the PPOC.
• 35:05
  SPEAKER_00: And liquidity providers assess that the June data will reveal substantially larger official Beijing accumulations, while much larger unreported monetary gold accumulations flowing into Beijing continue unabated.
• 35:22
  SPEAKER_00: Also, the latest data for the unwrought non-monetary gold imports, and that is like Dory Bars, unrefined gold, it hit 86.7 tons in April alone.
• 35:36
  SPEAKER_00: 81% higher than March.
• 35:38
  SPEAKER_00: It's stepping up.
• 35:40
  SPEAKER_00: They are grabbing everything in place with June imports currently assessed at even higher record levels.
• 35:46
  SPEAKER_00: Now we're recording this episode just ahead of FOMC today.
• 35:51
  SPEAKER_00: So we fully anticipate the synthetic actors.
• 35:54
  SPEAKER_00: They'll be hunting out margin stops, I can see already, looking for little stops that might be upside, downside, stuff they can rinse.
• 36:03
  SPEAKER_00: And so we fully anticipate them to do this, which they always do in a synthetic market.
• 36:09
  SPEAKER_00: But we, along with all our Asian-facing liquidity providers, see this as just one more opportunity to convert underpriced paper, gold, and silver into physical.
• 36:20
  SPEAKER_00: I mean, the only question left is to ask how prepared are you for the next debasement leg of your fiat currency to unfold?
• 36:28
  SPEAKER_00: I mean, central banks and sovereigns have openly stepped up, swapping depreciating dollar-related fiat for physical roles of silver.
• 36:35
  SPEAKER_00: And I personally know many of our subscribers are too.
• 36:40
  SPEAKER_00: That's the only question I'll leave you with.
• 36:42
  SPEAKER_01: All right, that wraps up another episode of Life from the Vault, brought to you by Kinesis Money.
• 36:46
  SPEAKER_01: And a big thank you to Andrew McGuire for sharing his deep market knowledge as usual.
• 36:51
  SPEAKER_01: And to you also for tuning in and being a part of this growing global community here.
• 36:56
  SPEAKER_01: And uh look, if you're new here, make sure you hit that subscribe button and tap on that bell so that you're first to know uh when we go live here.
• 37:05
  SPEAKER_01: And if you're if you've been with us for a while, keep help spreading the word here and give us a like right now.
• 37:11
  SPEAKER_01: Just hit that like button and share this episode with someone who really needs to hear it.
• 37:15
  SPEAKER_01: So get your questions in to Andrew, keep them coming in.
• 37:19
  SPEAKER_01: And uh, you know, you never know your question may be selected for our next episode right here on Live from the Vault.
• 37:24
  SPEAKER_01: And with that, we'll be back next week with more truth that you just won't find on the mainstream media.
• 37:30
  SPEAKER_01: And until then, bye physical, make sure it's backed one to one, and we'll see you next time right here on Life from the Vault.
• 37:37
  SPEAKER_01: Bye for now.