January 7, 2026 • 23 mins
Silver has exploded past $80 an ounce — and this isn’t a market fluke. It’s a signal. In this conversation, I sit down with Eric Yeung to break down what the silver surge is really telling us about the world right now: the breakdown of the U.S.-led financial order, the weaponization of the dollar, the rise of BRICS, and the accelerating global race for hard assets that can’t be printed. From Venezuela and sanctions to China’s tightening grip on silver exports, military demand, AI infrastructure, and the quiet collapse of paper metals markets, this episode exposes why silver is no longer just an investment — it’s a strategic asset at the center of a rapidly fracturing world order.
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Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:15):
Welcome to Man in America, a voice of reason in a
world gone mad. I'm your host,Seth Hullhouse. So as you can
see or not see, today'sinterview will be an audio only
discussion. My guest today isEric Young coming out of Hong
Kong. He's a very, very,important voice on what's
(00:35):
happening with precious metalsaround the world.
And for his own safety, he doesnot put his face on screen,
which I don't blame him forthat. I do. Maybe that will be
my downfall, the fact everyoneknows exactly who I am. But, you
know, I that's just how I do theshow. I it this is me.
I'm real. So, anyway, it's gonnabe an audio only discussion. But
(00:58):
we're gonna be getting into thebigger picture of what's
happening with silver and notreally as an investment. We're
looking at silver and analyzingit through the lens of
geopolitics, and through thelens of the fracturing of the
world, and the ending of theunipolar world with The United
(01:19):
States as the dominant empire,and splitting into, really The
US and the Western nations, onone side and the BRICS nations
on the other side. Andunderstanding what's happening
with silver gives you a lot ofinsight into what is happening.
And there's some big news we'llbe talking about, a massive
(01:42):
silver smelt smelting facilitythat the DOD, in partnership
with JPMorgan Chase, is buildingin The United States. It's a
$7,000,000,000, you know,facility. They're rebuilding. So
we're talking about that.Talking about silver prices, are
now as of recording at around$81 an ounce, which is crazy,
but also explaining in detailthe mechanisms that have been
(02:07):
used to suppress the prices ofsilver and gold and how those
mechanisms tie into the strengthof the dollar, but also the
dedollarization that ishappening, and how those
mechanisms collapsinghighlights, the dollar's real
place in the world, in additionto countries around the world
(02:28):
dumping treasury, not buying USdebt anymore.
We're seeing a lot of writing onthe wall, but also then getting
into the AI, the race, the AIrace, the AI arms race, might
call it, and so much more. So Ihope that you enjoy this,
interview with Eric. He's asmart guy. Just a quick note.
Sorry I've been a little quietover the holidays.
(02:51):
We've got a lot of reallyexciting things that we're
working on, which we'll berolling out, soon. But also, in
the past couple of months, Ilost my grandfather and my
father, you know, a very shortperiod of time heading into the
holiday season. And I, to behonest, just felt like having a
quiet holiday. And it was reallynice to have a lot of quiet time
with my family, to to pull backand work on some more creative
(03:14):
projects for what we're doing,and just to have that silence
that was really nice to reflecton this past year, reflect on
the year coming up, the state ofAmerica, where the country is
heading. And so, you'll see overthe course of the next couple of
weeks, there'll be a lot ofupdates coming out.
The, ARC community is stillbeing pushed forward. You know,
(03:39):
again, events of the lastquarter of last year kind of
slowed things down, but, youknow, this year we've got the
book coming out, with thecommunity rolling out, with some
other big updates. So, Iappreciate your patience, I
appreciate you sticking with me,and we're gonna have an exciting
year together, I can assure youof that. So, enjoy the show.
Eric Young, it is great to haveyou back on the show.
(04:02):
It's been quite some time. A lothas happened, but thank you for
being here with us today.
Speaker 2 (04:07):
Well, thanks, Steph. It has been a while. I think the
last time I was on your show wasaround the February.
Speaker 1 (04:17):
Yeah. I mean, almost almost a year ago. Right? We're
we're approaching a year ago,and so much has happened. But
before we jump into today'sdiscussion, do you just wanna
give a little bit of yourbackground?
And I'll tell you just quickly,I kinda perceive you. I know
you're in Hong Kong. I know thatyou understand geopolitics,
(04:38):
finance, especially preciousmetals extremely well. And I
I've always appreciate you. I Ifollow you on, on Twitter.
It's, you know, king kong nineeight eight eight. And you just
you've always had a very, very,I think, just wise perspective
on what's happening withprecious metals. And I think you
(04:59):
do a very good job of ofbridging the dialogue of what's
happening between the East andthe West, which is, I think,
very important in understandingwhat's happening right now. But,
anyway, I'll let you just give aquick background to yourself.
Speaker 2 (05:13):
So, Seth, I've been in the manufacturing business
for over two decades. And, youknow, during during this time,
I've been based in Hong Kong. Ialso had offices in Mainland
China, primarily in Shenzhen,which is a coastal city of that
is next to Hong Kong. Okay,essentially. And, you know, if
(05:38):
the audience doesn't knowcontract manufacturing means
that my multinational customers,let's say some of my customers
are Fortune 500 companies in TheUS, They come to me, they have a
specification for a product theymanufacture.
I take that, I go to China, Ishop for the correct or the
(06:01):
appropriate factories that canmanufacture the product for
them. I would oversee the entireprocess of manufacturing, and I
would arrange the logistics tohave that finished product be
shipped out of China, crossChinese customs, and imported
(06:25):
into The US or elsewhere.
Speaker 1 (06:30):
And how did you end up focusing so much on precious
metals?
Speaker 2 (06:36):
Well, I think the first time that I really loaded
up on physical gold is rightafter the great financial
crisis. So that really helpedme. I think it shocked a lot of
people, more so than even thedot com bubble. I mean, I was
there. I was already working inthe industry.
And when that popped, you know,shocking, but you know, you saw
(07:04):
that the system was intact. Butwith the great financial crisis,
I saw that The US national, someof these what they call too big
to fail banks were failing. Sothat's when I really started
buying a lot of physical gold.And the time when I really added
(07:30):
to that initial step was 2019when Jerome Powell pivoted. You
know, essentially fromquantitative tightening to
using, and that's when I knew itwas the gold time, was rock and
roll.
Like, I got to really acceleratemy physical gold and silver. And
(07:57):
I started, by the way, I startedbuying silver at that point. So
gold started masterfully buyingafter the GFC two thousand and
eight. I really, really added in2019 to my gold position,
physical gold. But for physicalsilver, I started stacking
(08:22):
around 2019 when Powellprohibited.
Speaker 1 (08:26):
Okay. And so, let me I'll just I'll quickly bring up
the charts. Yeah. So, right now,we're at, you know, almost $81.
So a a year ago, our lastinterview, silver was, you know,
right around $32, which is Imean, this is insane.
(08:46):
If you look at you know, we'reup a 163 percent, up $50 in the
past year. So, this is wild. Andso, you're saying that okay,
looking at let's just look atMax. So, you're saying that a
lot of that you were buying alot, you know, at 2019, you
started silver, which was rightat, you know, $15 an ounce,
(09:08):
which seems wild, to think of itthat low. But a lot of what I
wanna really pick your brain onis really look looking at, like,
this, say, past six months to ayear of what's happening.
You know, where we've gone justin six months, silver's up a
120% nearly. Right? From highthirties to, again, over over
(09:31):
$80 an ounce. And there's a lotto dig into with this, because I
look at precious metals as, youknow, gold and silver, not just
I I don't look at them as, like,the way I'd look at a stock and
say, oh, wow. Apple stock is uplike this.
I look at silver and gold asalmost being these well, as
(09:52):
David Jensen has referred to,the the the canary in the coal
mine. Right? They're indicatorsof much more significant things
that are happening. And so, Iguess, you know, in kinda diving
into this, silver is at 8 youknow, almost $81. What does that
tell you about what's happeninggeopolitically right now in the
world?
Speaker 2 (10:10):
Yeah. So, basically, Seth, I think what's happening
is that, as we have talked aboutthis off camera, has been for a
while now, but the global subcountries have been for a while
not adding substantially totheir US Treasury bond bills and
(10:33):
notes purchases. So what is theUS Treasury bonds, bond bill or
note? It's simply US debt. Sowhat we're seeing here is that,
especially since the Russianinvasion of Ukraine after The US
and Western allies, the EU,froze Russian assets, the BRICS
(11:01):
countries and the Global Southcountries have really stepped on
the gas to not net buy or add tothese US Treasuries, if
possible.
So I think it reached kind oflike a breaking point at this
point. And everything that we'veseen in the last twelve months
(11:26):
are simply a symptom of that.Like the first time also in the
show, when we saw massiveoutflows of physical gold from
the LBMA to The US andelsewhere, and also massive
outflows of physical silver fromthe LBMA to The US and
(11:47):
elsewhere. These are allsymptoms of deglobalization of
the rest of the world, primarilythe BRICS countries and their
allies, no longer willing tofinance the US government.
Speaker 1 (12:07):
So, basically, to to summarize it in a way that my
kind of simple mind understandsit is that post World War two,
The United States became the thethe really, the not just the
global police, but also, theglobal superpower. Right? And
(12:27):
you kinda lead up into BrettonWoods, you know, getting into
the establishment of the USdollar as the global reserve
currency. And so you had nationsaround the world that were
buying US treasury bonds, youknow, basically buying up US
debt to as a, to kind ofbackstop their own currencies,
(12:50):
right, as as a as a reserveasset. Also, because so much
trade was being done in the USdollar.
And that worked for a long time,and in exchange for these
countries holding US debt, theyhad protection, you know, from
The United States. We had safewaterways for trade, etcetera,
all the things that emerged,really post World War two. But
(13:11):
as it's almost as if it's likeif you give a teenager a credit
card and say they're responsiblefor the first six months and
it's going pretty well, but thena year later, you realize that
they've maxed it out. They'rebuying stupid stuff. They're
spending it on, you know, videogames and everything nonstop.
It's almost as if The US did thesame thing. As the world saw
(13:32):
that we were completely abusingthe power of this US dollar to
fund these endless wars, keepmoney printing nonstop. But
then, as you mentioned, thetipping point was when Russia
invaded Ukraine. And as aresponse to that, we then used
this global monetary system thatwas built off the back of the US
(13:52):
dollar as a weapon to punishRussia, right, by kicking them
out of the the SWIFT system, anda handful of other things that
happened at that time. And sothat was the breaking point
where the you know, a good chunkof the world that wasn't
directly being controlled or,you know, allied to The United
States, basically, as Iunderstand, said, wow, okay,
(14:15):
we're kinda done playing thisgame now.
So we're not gonna we're gonnastart selling your treasury
bonds. We're not buying more.And you have simultaneously the
strengthening and the growth ofthe BRICS nations, really
spearheaded, you know, by China.Right? Obviously, you know,
China, you know, Russia, youknow, lot of the other, you
know, handful of BRICS nations.
Now a lot of the Middle EastMiddle Eastern countries are
(14:36):
showing strong allegiances to tothe BRICS nations. And you so,
basically, we're looking at thefracturing of going from a
unipolar world with The US atthe center to a multipolar world
where The US is now just acompeting empire against this
growing, Eastern empire, whichreally extends beyond just the
(15:00):
East, know, South Americancountries, a lot of Africa,
etcetera. So is that a is thatan accurate assessment of what's
happening?
Speaker 2 (15:10):
Absolutely. I think you nailed it, Seth. I think
that's exactly what's happening.That's why you see, you know,
what we see here, which is TheUS competing, like you said,
with the rest of the world,especially the Eastern
countries, the global Southcountries, the BRICS countries,
whatever you call them, forstuff that they cannot print.
(15:34):
Okay?
Like, I'm talking about gold,physical gold, physical silver.
Soon, it's going to be copper,uranium, platinum, anything that
they cannot print. Okay, thatthey have to actually have
physical mines and physicalsmelters to produce, they're
(15:58):
gonna fight for from this pointon.
Speaker 1 (16:02):
So is this also what you'd refer to as a a capital
rotation? Because I know thatthere's a few people I've I've
been following that havediscussed that, right, where in
a capital rotation event thatthe capital is rotating between,
in essence, kind of paper anddigital assets to physical
assets. And when the markets arestrong, the banking industry is
(16:24):
sound, you have a lot morepeople that are putting their
assets into the paper, thedigital, the markets, etcetera.
But then when confidence hasleft those particular areas,
that you have people, inessence, rushing into what they
can feel and hold and what theyknow is real. So is that how you
would also describe this?
As more of a capital rotation,like a global capital rotation
(16:47):
event?
Speaker 2 (16:49):
Absolutely. You know, this is happening before our
eyes, Seth. I mean, like yousaid, look at the price of
silver. First time I was on yourshow was in the mid thirties,
maybe, you know, 34, 35,etcetera. Now, today, silver is
at $80, above $80 at the LBMAand the COMEX, And it's actually
(17:16):
almost at $90 US dollarsequivalent in China.
So we are seeing what you justtalked about right before our
eyes in real time.
Speaker 1 (17:32):
And so what is so this is I'm glad you mentioned
the difference difference inprices between the COMEX, LBMA,
and the Shanghai Exchange,right? Shanghai Gold Exchange,
SGE, right? And so, can youexplain that to us? Because
that's something that I did ashow on this, I think it was
(17:54):
last week, and kind of dug intoit a little bit, but it's not an
easy thing to to understand, butit's, I'm sure you you can
simplify it in a way that it is.But what does that mean when you
have a global a commodity thathas global value.
Right? You can sell silver in inI'd imagine most countries where
(18:15):
you can find a place to sellsilver. It's not like it's, you
know, like you're selling, youknow, rare US signed baseballs.
Right? That would only be have acertain market around the world
that would be interested inthose things.
I mean, silver is, you know,similar to oil. Right? It's a
global commodity. So what doesit mean when you have a, you
(18:37):
know, roughly a $10 differencebetween two different markets?
Because I I would think thatarbitrage traders, people that
are looking for areas where theycan buy in region a and sell to
region b because there's a pricedifference, I'd imagine that
they'd looking at this saying,gosh, I can make a ton of money
if I can buy in The US and sellit for $10 more an ounce in in
(19:00):
Asia.
And I think that mentalityoftentimes keeps that gap very
low historically. Right? So canyou explain to us what it means
that there's this pricedifference between these
markets?
Speaker 2 (19:16):
So first of all, China is a manufacturing
powerhouse of the entire world.And to be that manufacturing
powerhouse for the last twodecades plus, what does it need?
Commodities like copper, iron,zinc, silver. Silver is a
(19:37):
critical component formanufacturing, especially now
that we are getting into Webthree point zero or the AI age,
okay, with, you know, stuff likesolar power, electric vehicles
and, you know, high powerintegrated circuits that would
(20:01):
run AI. So back to what I justsaid, China being a
manufacturing power.
Naturally, China is a netimporter of silver. And so is
India, by the way. India becauselike traditionally Indians value
physical silver as a store ofvalue. Okay? It's something
(20:26):
somewhat of an inflation hedge.
And also, Indians have a cultureof wearing silver jewelry. So
India is also a big silverimporter. Now, Seth, let me ask
you a question. If you'reimporter of a critical critical
commodity such as silver orprecious metals such as silver,
(20:51):
what have you got to do so thatthe silver would flow to your
direction? I mean, I have achart, if if we remember.
I showed this chart to youraudience the first time I was on
the show, and now I added theChina and India bubble in the
(21:14):
chart. Yes. There you are. So inorder for China and India to
attract physical silver intotheir jurisdiction, they have to
offer a higher price. Isn't thatnormal?
If China and India have a lowersilver price than the West, then
(21:38):
who the heck is gonna sellsilver to China and India and
lose money? Think about that.Does that answer a part of your
question right there regardingthe arbitrage?
Speaker 1 (21:48):
Yeah. So, basically, if you're seeing, if you're
seeing this this price increase,say, in China, I'm guessing what
it means is just that theirtheir need to import it is
greater than the other region.Right? They're going to pay
they're paying more of premiumto bring it in.
Speaker 2 (22:09):
Because they are the manufacturers. They have an
inelastic demand of physicalsilver because of their
manufacturing, as I justmentioned. Okay? That makes
sense? The only difference, Ithink, between now and before is
that before you might have a$2.03 dollars like around a 5%
higher price of silver in China.
(22:31):
Now it's like 10 percent higher,as you pointed out. So that's
the difference. Like, thearbitrage is getting bigger than
before.
Speaker 1 (22:43):
Okay. So Yeah. While I have this chart up, can you
explain this? Because I I'm II've I know this stuff
relatively well. I'm I'm evenlooking at this and going a
little bit cross eyed.
So I I know that what you'reshowing here is very, very
important because and may maybewe can have a little bit of a,
(23:03):
you know, kind of silver andgold manipulation one zero one,
right, in looking at what is theCOMEX, what is the LBMA, what is
an ETF, and what is thisinteraction in these numbers
that we're seeing here? What isthis mechanism that you have I'm
put together
Speaker 2 (23:21):
just gonna say it in a very layman layman sort of way
so the audience understands.Okay? This is, like you said,
this is a sort of a complexsystem that they got going on
here. But basically what it saysis the Western gold and silver
price suppression machineconsists of the LBMA, the COMEX
(23:44):
and the ETF. The LBMA is inLondon.
It's simply an OTC market, overthe counter, right, that
consists
Speaker 1 (23:54):
of
Welcome to Man in America, a voice of reason in a
world gone mad. I'm your host,Seth Hullhouse. So as you can
see or not see, today'sinterview will be an audio only
discussion. My guest today isEric Young coming out of Hong
Kong. He's a very, very,important voice on what's
(00:35):
happening with precious metalsaround the world.
And for his own safety, he doesnot put his face on screen,
which I don't blame him forthat. I do. Maybe that will be
my downfall, the fact everyoneknows exactly who I am. But, you
know, I that's just how I do theshow. I it this is me.
I'm real. So, anyway, it's gonnabe an audio only discussion. But
(00:58):
we're gonna be getting into thebigger picture of what's
happening with silver and notreally as an investment. We're
looking at silver and analyzingit through the lens of
geopolitics, and through thelens of the fracturing of the
world, and the ending of theunipolar world with The United
(01:19):
States as the dominant empire,and splitting into, really The
US and the Western nations, onone side and the BRICS nations
on the other side. Andunderstanding what's happening
with silver gives you a lot ofinsight into what is happening.
And there's some big news we'llbe talking about, a massive
(01:42):
silver smelt smelting facilitythat the DOD, in partnership
with JPMorgan Chase, is buildingin The United States. It's a
$7,000,000,000, you know,facility. They're rebuilding. So
we're talking about that.Talking about silver prices, are
now as of recording at around$81 an ounce, which is crazy,
but also explaining in detailthe mechanisms that have been
(02:07):
used to suppress the prices ofsilver and gold and how those
mechanisms tie into the strengthof the dollar, but also the
dedollarization that ishappening, and how those
mechanisms collapsinghighlights, the dollar's real
place in the world, in additionto countries around the world
(02:28):
dumping treasury, not buying USdebt anymore.
We're seeing a lot of writing onthe wall, but also then getting
into the AI, the race, the AIrace, the AI arms race, might
call it, and so much more. So Ihope that you enjoy this,
interview with Eric. He's asmart guy. Just a quick note.
Sorry I've been a little quietover the holidays.
(02:51):
We've got a lot of reallyexciting things that we're
working on, which we'll berolling out, soon. But also, in
the past couple of months, Ilost my grandfather and my
father, you know, a very shortperiod of time heading into the
holiday season. And I, to behonest, just felt like having a
quiet holiday. And it was reallynice to have a lot of quiet time
with my family, to to pull backand work on some more creative
(03:14):
projects for what we're doing,and just to have that silence
that was really nice to reflecton this past year, reflect on
the year coming up, the state ofAmerica, where the country is
heading. And so, you'll see overthe course of the next couple of
weeks, there'll be a lot ofupdates coming out.
The, ARC community is stillbeing pushed forward. You know,
(03:39):
again, events of the lastquarter of last year kind of
slowed things down, but, youknow, this year we've got the
book coming out, with thecommunity rolling out, with some
other big updates. So, Iappreciate your patience, I
appreciate you sticking with me,and we're gonna have an exciting
year together, I can assure youof that. So, enjoy the show.
Eric Young, it is great to haveyou back on the show.
(04:02):
It's been quite some time. A lothas happened, but thank you for
being here with us today.
Speaker 2 (04:07):
Well, thanks, Steph. It has been a while. I think the
last time I was on your show wasaround the February.
Speaker 1 (04:17):
Yeah. I mean, almost almost a year ago. Right? We're
we're approaching a year ago,and so much has happened. But
before we jump into today'sdiscussion, do you just wanna
give a little bit of yourbackground?
And I'll tell you just quickly,I kinda perceive you. I know
you're in Hong Kong. I know thatyou understand geopolitics,
(04:38):
finance, especially preciousmetals extremely well. And I
I've always appreciate you. I Ifollow you on, on Twitter.
It's, you know, king kong nineeight eight eight. And you just
you've always had a very, very,I think, just wise perspective
on what's happening withprecious metals. And I think you
(04:59):
do a very good job of ofbridging the dialogue of what's
happening between the East andthe West, which is, I think,
very important in understandingwhat's happening right now. But,
anyway, I'll let you just give aquick background to yourself.
Speaker 2 (05:13):
So, Seth, I've been in the manufacturing business
for over two decades. And, youknow, during during this time,
I've been based in Hong Kong. Ialso had offices in Mainland
China, primarily in Shenzhen,which is a coastal city of that
is next to Hong Kong. Okay,essentially. And, you know, if
(05:38):
the audience doesn't knowcontract manufacturing means
that my multinational customers,let's say some of my customers
are Fortune 500 companies in TheUS, They come to me, they have a
specification for a product theymanufacture.
I take that, I go to China, Ishop for the correct or the
(06:01):
appropriate factories that canmanufacture the product for
them. I would oversee the entireprocess of manufacturing, and I
would arrange the logistics tohave that finished product be
shipped out of China, crossChinese customs, and imported
(06:25):
into The US or elsewhere.
Speaker 1 (06:30):
And how did you end up focusing so much on precious
metals?
Speaker 2 (06:36):
Well, I think the first time that I really loaded
up on physical gold is rightafter the great financial
crisis. So that really helpedme. I think it shocked a lot of
people, more so than even thedot com bubble. I mean, I was
there. I was already working inthe industry.
And when that popped, you know,shocking, but you know, you saw
(07:04):
that the system was intact. Butwith the great financial crisis,
I saw that The US national, someof these what they call too big
to fail banks were failing. Sothat's when I really started
buying a lot of physical gold.And the time when I really added
(07:30):
to that initial step was 2019when Jerome Powell pivoted. You
know, essentially fromquantitative tightening to
using, and that's when I knew itwas the gold time, was rock and
roll.
Like, I got to really acceleratemy physical gold and silver. And
(07:57):
I started, by the way, I startedbuying silver at that point. So
gold started masterfully buyingafter the GFC two thousand and
eight. I really, really added in2019 to my gold position,
physical gold. But for physicalsilver, I started stacking
(08:22):
around 2019 when Powellprohibited.
Speaker 1 (08:26):
Okay. And so, let me I'll just I'll quickly bring up
the charts. Yeah. So, right now,we're at, you know, almost $81.
So a a year ago, our lastinterview, silver was, you know,
right around $32, which is Imean, this is insane.
(08:46):
If you look at you know, we'reup a 163 percent, up $50 in the
past year. So, this is wild. Andso, you're saying that okay,
looking at let's just look atMax. So, you're saying that a
lot of that you were buying alot, you know, at 2019, you
started silver, which was rightat, you know, $15 an ounce,
(09:08):
which seems wild, to think of itthat low. But a lot of what I
wanna really pick your brain onis really look looking at, like,
this, say, past six months to ayear of what's happening.
You know, where we've gone justin six months, silver's up a
120% nearly. Right? From highthirties to, again, over over
(09:31):
$80 an ounce. And there's a lotto dig into with this, because I
look at precious metals as, youknow, gold and silver, not just
I I don't look at them as, like,the way I'd look at a stock and
say, oh, wow. Apple stock is uplike this.
I look at silver and gold asalmost being these well, as
(09:52):
David Jensen has referred to,the the the canary in the coal
mine. Right? They're indicatorsof much more significant things
that are happening. And so, Iguess, you know, in kinda diving
into this, silver is at 8 youknow, almost $81. What does that
tell you about what's happeninggeopolitically right now in the
world?
Speaker 2 (10:10):
Yeah. So, basically, Seth, I think what's happening
is that, as we have talked aboutthis off camera, has been for a
while now, but the global subcountries have been for a while
not adding substantially totheir US Treasury bond bills and
(10:33):
notes purchases. So what is theUS Treasury bonds, bond bill or
note? It's simply US debt. Sowhat we're seeing here is that,
especially since the Russianinvasion of Ukraine after The US
and Western allies, the EU,froze Russian assets, the BRICS
(11:01):
countries and the Global Southcountries have really stepped on
the gas to not net buy or add tothese US Treasuries, if
possible.
So I think it reached kind oflike a breaking point at this
point. And everything that we'veseen in the last twelve months
(11:26):
are simply a symptom of that.Like the first time also in the
show, when we saw massiveoutflows of physical gold from
the LBMA to The US andelsewhere, and also massive
outflows of physical silver fromthe LBMA to The US and
(11:47):
elsewhere. These are allsymptoms of deglobalization of
the rest of the world, primarilythe BRICS countries and their
allies, no longer willing tofinance the US government.
Speaker 1 (12:07):
So, basically, to to summarize it in a way that my
kind of simple mind understandsit is that post World War two,
The United States became the thethe really, the not just the
global police, but also, theglobal superpower. Right? And
(12:27):
you kinda lead up into BrettonWoods, you know, getting into
the establishment of the USdollar as the global reserve
currency. And so you had nationsaround the world that were
buying US treasury bonds, youknow, basically buying up US
debt to as a, to kind ofbackstop their own currencies,
(12:50):
right, as as a as a reserveasset. Also, because so much
trade was being done in the USdollar.
And that worked for a long time,and in exchange for these
countries holding US debt, theyhad protection, you know, from
The United States. We had safewaterways for trade, etcetera,
all the things that emerged,really post World War two. But
(13:11):
as it's almost as if it's likeif you give a teenager a credit
card and say they're responsiblefor the first six months and
it's going pretty well, but thena year later, you realize that
they've maxed it out. They'rebuying stupid stuff. They're
spending it on, you know, videogames and everything nonstop.
It's almost as if The US did thesame thing. As the world saw
(13:32):
that we were completely abusingthe power of this US dollar to
fund these endless wars, keepmoney printing nonstop. But
then, as you mentioned, thetipping point was when Russia
invaded Ukraine. And as aresponse to that, we then used
this global monetary system thatwas built off the back of the US
(13:52):
dollar as a weapon to punishRussia, right, by kicking them
out of the the SWIFT system, anda handful of other things that
happened at that time. And sothat was the breaking point
where the you know, a good chunkof the world that wasn't
directly being controlled or,you know, allied to The United
States, basically, as Iunderstand, said, wow, okay,
(14:15):
we're kinda done playing thisgame now.
So we're not gonna we're gonnastart selling your treasury
bonds. We're not buying more.And you have simultaneously the
strengthening and the growth ofthe BRICS nations, really
spearheaded, you know, by China.Right? Obviously, you know,
China, you know, Russia, youknow, lot of the other, you
know, handful of BRICS nations.
Now a lot of the Middle EastMiddle Eastern countries are
(14:36):
showing strong allegiances to tothe BRICS nations. And you so,
basically, we're looking at thefracturing of going from a
unipolar world with The US atthe center to a multipolar world
where The US is now just acompeting empire against this
growing, Eastern empire, whichreally extends beyond just the
(15:00):
East, know, South Americancountries, a lot of Africa,
etcetera. So is that a is thatan accurate assessment of what's
happening?
Speaker 2 (15:10):
Absolutely. I think you nailed it, Seth. I think
that's exactly what's happening.That's why you see, you know,
what we see here, which is TheUS competing, like you said,
with the rest of the world,especially the Eastern
countries, the global Southcountries, the BRICS countries,
whatever you call them, forstuff that they cannot print.
(15:34):
Okay?
Like, I'm talking about gold,physical gold, physical silver.
Soon, it's going to be copper,uranium, platinum, anything that
they cannot print. Okay, thatthey have to actually have
physical mines and physicalsmelters to produce, they're
(15:58):
gonna fight for from this pointon.
Speaker 1 (16:02):
So is this also what you'd refer to as a a capital
rotation? Because I know thatthere's a few people I've I've
been following that havediscussed that, right, where in
a capital rotation event thatthe capital is rotating between,
in essence, kind of paper anddigital assets to physical
assets. And when the markets arestrong, the banking industry is
(16:24):
sound, you have a lot morepeople that are putting their
assets into the paper, thedigital, the markets, etcetera.
But then when confidence hasleft those particular areas,
that you have people, inessence, rushing into what they
can feel and hold and what theyknow is real. So is that how you
would also describe this?
As more of a capital rotation,like a global capital rotation
(16:47):
event?
Speaker 2 (16:49):
Absolutely. You know, this is happening before our
eyes, Seth. I mean, like yousaid, look at the price of
silver. First time I was on yourshow was in the mid thirties,
maybe, you know, 34, 35,etcetera. Now, today, silver is
at $80, above $80 at the LBMAand the COMEX, And it's actually
(17:16):
almost at $90 US dollarsequivalent in China.
So we are seeing what you justtalked about right before our
eyes in real time.
Speaker 1 (17:32):
And so what is so this is I'm glad you mentioned
the difference difference inprices between the COMEX, LBMA,
and the Shanghai Exchange,right? Shanghai Gold Exchange,
SGE, right? And so, can youexplain that to us? Because
that's something that I did ashow on this, I think it was
(17:54):
last week, and kind of dug intoit a little bit, but it's not an
easy thing to to understand, butit's, I'm sure you you can
simplify it in a way that it is.But what does that mean when you
have a global a commodity thathas global value.
Right? You can sell silver in inI'd imagine most countries where
(18:15):
you can find a place to sellsilver. It's not like it's, you
know, like you're selling, youknow, rare US signed baseballs.
Right? That would only be have acertain market around the world
that would be interested inthose things.
I mean, silver is, you know,similar to oil. Right? It's a
global commodity. So what doesit mean when you have a, you
(18:37):
know, roughly a $10 differencebetween two different markets?
Because I I would think thatarbitrage traders, people that
are looking for areas where theycan buy in region a and sell to
region b because there's a pricedifference, I'd imagine that
they'd looking at this saying,gosh, I can make a ton of money
if I can buy in The US and sellit for $10 more an ounce in in
(19:00):
Asia.
And I think that mentalityoftentimes keeps that gap very
low historically. Right? So canyou explain to us what it means
that there's this pricedifference between these
markets?
Speaker 2 (19:16):
So first of all, China is a manufacturing
powerhouse of the entire world.And to be that manufacturing
powerhouse for the last twodecades plus, what does it need?
Commodities like copper, iron,zinc, silver. Silver is a
(19:37):
critical component formanufacturing, especially now
that we are getting into Webthree point zero or the AI age,
okay, with, you know, stuff likesolar power, electric vehicles
and, you know, high powerintegrated circuits that would
(20:01):
run AI. So back to what I justsaid, China being a
manufacturing power.
Naturally, China is a netimporter of silver. And so is
India, by the way. India becauselike traditionally Indians value
physical silver as a store ofvalue. Okay? It's something
(20:26):
somewhat of an inflation hedge.
And also, Indians have a cultureof wearing silver jewelry. So
India is also a big silverimporter. Now, Seth, let me ask
you a question. If you'reimporter of a critical critical
commodity such as silver orprecious metals such as silver,
(20:51):
what have you got to do so thatthe silver would flow to your
direction? I mean, I have achart, if if we remember.
I showed this chart to youraudience the first time I was on
the show, and now I added theChina and India bubble in the
(21:14):
chart. Yes. There you are. So inorder for China and India to
attract physical silver intotheir jurisdiction, they have to
offer a higher price. Isn't thatnormal?
If China and India have a lowersilver price than the West, then
(21:38):
who the heck is gonna sellsilver to China and India and
lose money? Think about that.Does that answer a part of your
question right there regardingthe arbitrage?
Speaker 1 (21:48):
Yeah. So, basically, if you're seeing, if you're
seeing this this price increase,say, in China, I'm guessing what
it means is just that theirtheir need to import it is
greater than the other region.Right? They're going to pay
they're paying more of premiumto bring it in.
Speaker 2 (22:09):
Because they are the manufacturers. They have an
inelastic demand of physicalsilver because of their
manufacturing, as I justmentioned. Okay? That makes
sense? The only difference, Ithink, between now and before is
that before you might have a$2.03 dollars like around a 5%
higher price of silver in China.
(22:31):
Now it's like 10 percent higher,as you pointed out. So that's
the difference. Like, thearbitrage is getting bigger than
before.
Speaker 1 (22:43):
Okay. So Yeah. While I have this chart up, can you
explain this? Because I I'm II've I know this stuff
relatively well. I'm I'm evenlooking at this and going a
little bit cross eyed.
So I I know that what you'reshowing here is very, very
important because and may maybewe can have a little bit of a,
(23:03):
you know, kind of silver andgold manipulation one zero one,
right, in looking at what is theCOMEX, what is the LBMA, what is
an ETF, and what is thisinteraction in these numbers
that we're seeing here? What isthis mechanism that you have I'm
put together
Speaker 2 (23:21):
just gonna say it in a very layman layman sort of way
so the audience understands.Okay? This is, like you said,
this is a sort of a complexsystem that they got going on
here. But basically what it saysis the Western gold and silver
price suppression machineconsists of the LBMA, the COMEX
(23:44):
and the ETF. The LBMA is inLondon.
It's simply an OTC market, overthe counter, right, that
consists
Speaker 1 (23:54):
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