March 7, 2025 • 27 mins
Gold is up 46% in less than a year—that’s double the gains of the Nasdaq and S&P 500 in the same period. A historic bull run for gold… But when gold moves like this, it’s NEVER just about inflation or market demand. It means something is breaking in the global monetary system… And most people have no idea why. And here’s the shocking part—this surge isn’t just another rally. There’s a deeper crisis that is triggering the biggest shake-up in the gold market in a century. So in this video, I’m going to break down: ✅ What’s REALLY behind the gold price surge ✅ Why the paper gold system is on the brink of collapse ✅ The 2 possible outcomes from here ✅ And what you NEED to do to prepare now Real quick—I’m Mark Moss. I’ve built and exited multiple tech companies, invested through several booms and busts, and today I’m a partner at a leading Bitcoin Venture Fund. I also write the Quantum Wave Investment Report, where I help people navigate the biggest shifts in Tech and Money—and I make these videos to give you insights we are using so you can navigate and profit from these shifts as well…
See omnystudio.com/listener for privacy information.
Mark as Played
Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:00):
Gold is up forty six percent in less than a year.
Speaker 2 (00:03):
That's double the gains of the Nasdaq and the S
and P five hundred in the same period.
Speaker 1 (00:08):
A historic bull run for gold.
Speaker 2 (00:10):
But when gold moves like this, it's never just about
inflation or market demand. It means something is breaking in
the global monetary system, and most people have no idea why.
Speaker 1 (00:22):
Here's the shocking part. This surge isn't just another rally.
Speaker 2 (00:26):
It's a deeper crisis that's triggering the biggest shakeup in
the gold market in a century. So in this video,
I'm gonna break down what's really behind the gold price surge,
why the paper gold system is on the brink of collapse.
Two possible outcomes from here, and we'll look back to
history to see when this has happened before, and of
course what you need to be doing to prepare for
(00:48):
this now real quick. On Mark Moss, I'll built and
exit multiple tech companies, invested through several booms in bus
and today I'm a partner at a leading bitcoin venture fund.
I also write the Quantum Wave Investment Support where to
help people navigate the biggest shifts in tech and money,
and I make these videos to give you insights that
we're using so you can navigate.
Speaker 1 (01:08):
And profit from these shifts as well. So let's go.
Speaker 2 (01:12):
All right, we're gonna jump right into this. I'm gonna
try to get through this as quick as I can.
Speaker 1 (01:15):
But I got a lot of charts and graphs.
Speaker 2 (01:17):
But unless you've been living under a rock, you don't
look at the news or any kind of financial or
economic data. Then you already know that the price of
gold is completely surging. But what you don't know is
why and what is going on beneath the surface, the
fundamental system that's causing.
Speaker 1 (01:33):
This to happen. Now, as I always.
Speaker 2 (01:34):
Tell you, you can get the news from anywhere. What
I'm trying to do is give you the reading between
the lines what's really going on.
Speaker 1 (01:40):
So we'll look at that now.
Speaker 2 (01:41):
Of course, most people think that it's because central banks
are buying up massive amounts of gold, and they are,
They're buying records amounts. Central banks hunger for gold shows
no sign of being.
Speaker 1 (01:54):
Quelled this year. This is just February.
Speaker 2 (01:56):
Fifth, so there's no signs that they're appetite, their desire
for gold is gonna bequlled. So we have central banks
buying massive amounts. Now to put this, you know, I
would like to show you the charts and the graphs
so you can understand this.
Speaker 1 (02:08):
This is central bank gold. Bye.
Speaker 2 (02:11):
This goes back to twenty ten and you can see
how much they were buying here twenty eleven, twelve thirteen.
We had a little dip here in twenty twenty, twenty
twenty one. And look at how much this new baseline
we're at. This is over one thousand tons that they're
adding every single year right here.
Speaker 1 (02:28):
This blue line is the average they are on. So
something happened.
Speaker 2 (02:33):
These years twenty eighteen twenty nineteen were a little bit
of a bad average, but something happened right here twenty two,
twenty three, and twenty four and have changed the appetite
for gold from governments and central banks.
Speaker 1 (02:44):
What could it be? Well two things.
Speaker 2 (02:47):
Number one it could be you remember right here the
massive amounts of debasement, monetary debasement of government printing spending,
if you will, That happened right here. So in times
of massive monetary debasements, cent banks are going to do
what they do, which.
Speaker 1 (03:01):
Is trying to protect their wealth with gold.
Speaker 2 (03:04):
Also, what happened right around here twenty twenty two was
when the Russia Ukraine War broke out. The United States
and NATO decided to seize basically Russia's bank accounts, and
all the governments of the world were put unnoticed that
your savings in the financial system are not safe and
you might want something physical like this.
Speaker 1 (03:23):
Two big catalysts that happened and change that.
Speaker 2 (03:25):
And of course since we've seen that massive demand for gold,
we've seen the price.
Speaker 1 (03:30):
Continue to go up higher and higher and higher.
Speaker 2 (03:33):
Now some of you look at things way too short
and yes gold went down, and yes it went down,
and yes it went down, but you can see the
trend is going up. So if you're a long time investor,
long term thinker like I am, then you know that
you just want to continue to hold gold.
Speaker 1 (03:48):
Here we are at almost about three thousand.
Speaker 2 (03:51):
Now there is some things going on beneath the surface
that really show us what's going on.
Speaker 1 (03:56):
I want to break this down for you.
Speaker 2 (03:57):
What we've been seeing is that there's basically two big
gold markets.
Speaker 1 (04:01):
Well now there's three, and we're going to talk about that.
Speaker 2 (04:03):
But the two big ones that have been in London,
the London the LBMA London Boylan Market Association. That's LBMA,
and then we have in the United States, we have
the comics And what we've been seeing is that the
London gold market is facing unprecedented strain. Unprecedented is in
like historic, as in like never seen before, a rapid
outflow of gold to the US comics warehouses. So the
(04:26):
gold is flowing from London, and not just the LBMA
but also the Boe Bank of England is flowing from
there over into the US markets, the comics warehouses. While
the LBMA data shows two hundred and seventy nine million
ounces stored on paper, they show that there's two hundred
and seventy nine ounces stored at the London vaults as
(04:47):
of December twenty twenty four, only thirty six million of
the two hundred and seventy nine million the float are
theoretically available. So even though they show they have two
hundred and eighty million, theoretically there's only about thirty six
million available. That means there's short big time right, a
critical liquidity shortfall against an estimated three hundred and eighty
(05:11):
million ounces of outstanding spot cash contracts. The spot cash contracts.
That's gonna tell us where we have to go to
look next. So there's about three hundred and eighty million
ounces of demand in these contracts spot cash contracts, but
yet there's only two hundred and seventy nine on the
books on paper. But the reality is there's only thirty
(05:33):
six million. Do the math, it's about ten percent. Sort
of like a fractional reserve banking. And what happens if
everybody wants to pull their money out or their gold out,
well you see a run on the banks, and that's
exactly what we're seeing. The current crisis suggests much of
the vaulted gold is either pledged to central banks etsts
or foreign governments. So it's already pledged. That's why it's
(05:55):
not available. Of the two hundred seventy nine million, it's
not available. This is part of what is known as rehypothecation.
We'll talk more about that in a minute. Okay, Now,
the real reason that we see the price of gold
going up is yes, because there's a massive demand.
Speaker 1 (06:11):
Why is their massive demand? We already talked about the debasement.
Speaker 2 (06:13):
We already talked about being able to hold your assets
in a way that governments of the United States can't
steal from you. But really we see these central banks hoarding,
and we want to understand the dynamics of these things.
So why are central banks accumulating in large quantities. I've
already sort of given you some of this accumulty goal
to diversify reserves reduce dependency on the US dollar. China
(06:34):
in particular has been on a gold mining spree for
the seventeenth consecutive month. Now, nobody really knows how much
gold China has, because.
Speaker 1 (06:43):
Nobody can really trust the data coming out of there.
Whatever they show us, it's probably three, five, maybe even
ten times more than what they have.
Speaker 2 (06:51):
But we can see here the People's Bank of China,
the PBOC, continue to streak of gold purchases it's diverse
finance reserves away from the dollar. In February, China divested divested,
meaning sold off treasuries twenty two point seven billion in
US treasuries.
Speaker 1 (07:07):
Sold the treasuries to buy gold.
Speaker 2 (07:09):
Strategic move by China reflects a deliberate effort to reduce
its dependency on the dollar. Shoot, these treasuries could get
taken from us, like what happened to Russia. We should
probably sell those and buy an asset like gold that
can't be taken away. China is not the only country
doing this, and it's a massive move.
Speaker 1 (07:26):
The PBOC required I'm sorry, acquired.
Speaker 2 (07:29):
Two hundred and twenty four tons two and twenty four
tons of which and only sixty two tons in twenty
twenty two, So from sixty two to two hundred and
twenty four they have really stepped up the rate at
their buying. Now sort of again trying to understand the
differences of these markets.
Speaker 1 (07:46):
We can see that again in London the LBMA and
now tap it.
Speaker 2 (07:50):
Into the BOE that London's record gold outflow is going
into US stockpiles. Now this is record again, this is historic,
this is unprecedented. We can see here that shrinking by
the fastest amount on record as banks, dealers and speculators.
Speaker 1 (08:08):
Fly boy on to New York.
Speaker 2 (08:10):
So they're all taking it out of the BOE and
the LBMA hands and moving it over to the US.
Speaker 1 (08:16):
So what is going on?
Speaker 2 (08:18):
Why is all this gold moving? Well, part of it
is because the demand is so high.
Speaker 1 (08:23):
We're going to get into some of.
Speaker 2 (08:23):
This paper manipulation that's breaking right now, but it's also
been because and we can see I have another chart
here just to show you how big this is. I
love to show these charts so we can see this
is the gold inventories in New York at the comics,
and you can.
Speaker 1 (08:38):
See that they are absolutely exploding. That's what we call
parabolic right there.
Speaker 2 (08:42):
But to understand sort of these mechanics, what we kind
of want to understand is what's really been driving this
is China. China's insatiable amount desire for gold as well
as they're you know, continued buying as well as they're
divesting from treasuries to buy more gold. More specifically them
setting up this Shanghai Gold Exchange. And what's happened in
(09:05):
the Shanghai Gold Exchange is it's sort of meant to
break the grip of the paper markets at the.
Speaker 1 (09:12):
US with the comics and London with the LGAM may have.
Speaker 2 (09:15):
So gold investors, if you're a gold investor at Goldbug,
you know this. We're talking about it for years, how
manipulated this market is because of the paper gold that's
sold against it. And the reason why that's done is
because you can't really get the gold out of the market,
so you buy them through ETFs and so then they're
able to rehypothecate, meaning loan it out, loan it out,
loan it out over and over again, and really build
(09:37):
up the supply of gold on paper, even though it's
not physical. I want to talk more about that in
a second. But what China did is they launched their
Shanghai Gold Exchange and now it's physically settled. That means
that I can go actually redeem and receive my gold. Now,
what's what we're finding is that that physical gold. Today,
when you're worried about a run on the bank or
(09:58):
a default, you want the physical. We're seeing a massive
premium being paid for physical gold. So when I can
buy it for cheaper on one market and sell it
for a higher price on another market, that's called arbitrage.
That's what traders do, and that's exactly what's been happening.
One big factor pulling Western markets upwards, the price of
gold upwards, is the arbitrage happening in China, and it's
(10:21):
the fact that the Shanghai International Gold Exchange SGEI is
a physically settled market, which is different from the cash
settled markets in the West, the US, in London. So
you can do your options, you can make your bet
on gold, but at the end you get settled in cash,
not physical gold.
Speaker 1 (10:39):
And China's changing all.
Speaker 2 (10:40):
That with a physically settled market on the scene, and
with that market trading at a significant premium above what
the West.
Speaker 1 (10:48):
The US and London.
Speaker 2 (10:50):
Traders were able to buy up the comics or the
LBMA futures and then demand delivery. So I bought them cheap,
and I demand delivery.
Speaker 1 (10:58):
I don't want just to cash.
Speaker 2 (11:00):
And then they sell the physical into Shanghai.
Speaker 1 (11:03):
This is what traders do.
Speaker 2 (11:04):
Traders exploit arbitrage opportunities. It's sort of like to carry
trade in Japan. Right We're always trying to buy low
and sell high in different markets at the same time.
And China, by setting up this Shanghai Gold exchange, gives
us opportunity for these traders to now buy it for
cheaper in London in the US and sell for hire
in chat. Now why is it cheaper in the US
(11:24):
in London, Well, a couple of reasons. Number one, again,
we know that physical gold right now at this point
is more in demand.
Speaker 1 (11:33):
The governments are like, I don't trust anybody else. I
want my gold.
Speaker 2 (11:35):
Also, investors are like the same, doing the same thing.
And then what happens is when the traders start getting involved,
it starts to push that even more. All right, So
that is the mechanics that really started pushing this higher.
Now there's a lot of rumors about China wanted to
have a goldback currency. I've done videos talking about how
the US might even try to preempt China in that.
Speaker 1 (11:57):
We'll come back to more on that in a minute.
Speaker 2 (12:00):
Okay, Now what we're really seeing is the illusion of
the gold market is starting to crack.
Speaker 1 (12:06):
The paper illusion. Now we don't really know.
Speaker 2 (12:09):
I've seen estimates that there are somewhere between one hundred,
three hundred to maybe even five hundred paper ounces of
gold for every one single physical ounce. And again that's
because these funds, the ETFs, they take in gold the banks.
Speaker 1 (12:24):
And then they loan it out, and then they loan
it out and they load it out. That's got a
re hypothecation. Let me explain how that works.
Speaker 2 (12:30):
So let's say, for example, for easy use cases, I
have a candy bar, but I'm not hungry. I don't
want to eat it, so I'm going to loan it
to my friend. Now he has a candy bar in
his hand and he owes me one. So on my books,
I shall have a candy bar, but he decides he
doesn't want to eat it, and he loans it to the
next guy.
Speaker 1 (12:48):
That guy loans it to the next guy, that the
guy loans to the next guy.
Speaker 2 (12:51):
Now there's five candy bars in existence, the guy who
physically has it, the guy who's O.
Speaker 1 (12:57):
One O one ode one, im ode one.
Speaker 2 (13:00):
So now there's five candy bars on paper, but there's
only one actual physical one. But what happens if the
guy at the end gets hungry and eats it, Well,
now he's eaten one candy bar, but five candy bars
have now disappeared.
Speaker 1 (13:15):
And so that's what we're seeing.
Speaker 2 (13:16):
When we start to rehypothecate this gold, we start to
expanding supply without actually adding it.
Speaker 1 (13:20):
So we have all these paper claims. What we're seeing,
as I said, is.
Speaker 2 (13:24):
Now people were like, I want the gold, and so
we're seeing that gold buoyon has a premium over the
paper claims, and that's why it's starting to break this
cash set of the market. Now, there wasn't a mechanism
for this before, which.
Speaker 1 (13:36):
Is why it's something new.
Speaker 2 (13:37):
Now gold futures contracts opting for delivery are surging, So
we have something called backwardation and this is in the
options market.
Speaker 1 (13:46):
And so what this means is that people.
Speaker 2 (13:47):
Are paying more today than they could pay in the future.
I'll pay a premium to get it right now rather
than waiting for it, and that shows.
Speaker 1 (13:56):
The urgency that's here.
Speaker 2 (13:57):
We can see that there's been a surge in gold
futures contracts for delivery and the ord of twenty eight
percent of registered goal.
Speaker 1 (14:02):
Will be required to fulfill orders.
Speaker 2 (14:04):
So there's massive search for delivery. Everybody wants the goal.
They don't trust the markets. A small business owner, are
you buried in all types of work keeping you from
the real thing that makes you money? Well, that's where
just Works comes in. They're the all in one platform
that supports small business growth.
Speaker 1 (14:21):
You can get all.
Speaker 2 (14:22):
Their tools that help with benefits like payroll and HR
and compliance with transparent pricing. Now they help you hire
top talent internationally, internew markets, quickly scale international operations without
the workload and forevery how.
Speaker 1 (14:36):
Do I do it? Question?
Speaker 2 (14:37):
You can reach out to their expert staff from sole
proprietor or a team of twenty. Just Works empowers all
kinds of small businesses with real human support. So visit
Justworks dot com slash podcast to join the thousands of
small businesses that trust Just Works to take care of payroll, benefits,
compliance and more. Again That's Justworks dot com slash podcast. Yes, now,
(15:02):
the markets are set up to not have this happen,
so it's very difficult for a trader to actually get
the gold out of the market, and it's even more
difficult to get the gold back.
Speaker 1 (15:12):
Into the market.
Speaker 2 (15:13):
This is a piece that I've taken from Peruvium Bowl.
Shout out to Peruvian Bowl. We'll link to the full
article down below if you.
Speaker 1 (15:20):
Want to check it out. Here did some really good
work on this.
Speaker 2 (15:22):
To take physical delivery, a trader must one hold a
long position in a futures contract because you have to
buy the futures contract and you have to hold it
all the way till it's expiration. Usually they're trading these
things and.
Speaker 1 (15:32):
Not holding them all the way to the end. Number
two issue a delivery note to the comics.
Speaker 2 (15:36):
There's a lot of paperwork formllies have to be done
painting the butt. Three receive a warehouse receipt which represents
ownership of gold in an approved depository. Key piece in
an approved depository.
Speaker 1 (15:46):
Another hurdle get to jump through. Four a range for
physical withdrawal if desired.
Speaker 2 (15:50):
Which involves additional fees and additional logistics and additional paint
in the butt that makes it very difficult.
Speaker 1 (15:56):
Five gold is.
Speaker 2 (15:57):
Delivered and one hundred troy ounce bars, and an investor
must purchase contracts in multiples of one hundred ounces to
take delivery.
Speaker 1 (16:04):
This is not for small players. There's a hundred ounce minimum.
You can do the math. This is a different amount
of capital.
Speaker 2 (16:12):
Comics only allows deliveries from a few approved depositories. So
now if you want to take the gold out and
then you want to put it back in, that might
be a problem because they only allow it from a
few approved depositories such as Brinks, JP Morgan and Malcolm Emett.
Moving the gold out of these vaults requires additional approvals
(16:33):
and transport logistics and fees. So again you can only
get it out to a couple of places. But that's
even more expensive and even more time consuming and so forth.
Speaker 1 (16:41):
Taking physical delivery is expensive, including storage fees, insurance, transportation costs.
If you don't know, gold is.
Speaker 2 (16:48):
Heavy, so to take delivery of it is very expensive.
Speaker 1 (16:51):
But then if the gold is withdrawn for personal storage,
it may lose its comics good delivery designation, the status,
making it harder to resell it at market prices.
Speaker 2 (17:03):
So they do almost everything they can to keep people
from taking the physical out. Why because they want to
retain control of it so they can continue to having
it on the books to rehypothecate it over and over
and over. That's why ninety percent of trading is on paper.
They can sell naked shorts to depress the price all
these things. But again now they're seeing these huge withdraws
(17:26):
and it's moving, and we can see here that gold
says here bullion banks are borrowing GLD, so GLD.
Speaker 1 (17:32):
Is one of the biggest gold ETFs out there.
Speaker 2 (17:34):
Bullion banks are borrowing GLD shares and converting the units
to physical and.
Speaker 1 (17:40):
Gaining control over the metal.
Speaker 2 (17:43):
So they're borrowing that they're buying and they're trying to
convert as fast they can. GLD ETF alert. The borrowing
fee on g GLD ETF has gone vertical today.
Speaker 1 (17:53):
Why because of the demand for everyone borrowing.
Speaker 2 (17:56):
They'll try to fix the system, where I should say
they're trying to paper over the system, which I'll show
you the two options we have for that in a second.
But we can see the price of gold set a
new record high on Friday's data showed stockpiles in London.
Data showed stockpiles in London shrinking by the fastest amount
on record.
Speaker 1 (18:17):
So again getting completely drained speculators fly boy on to
New York. London's gold fixed today above twenty to thirty five.
We don't work about the.
Speaker 2 (18:25):
Pricing, but we can see that it's these discrepancies the
traders are going after. This is a really cool charge
from shift shift gold. And we can see this is
gold for deliveries, and so again you can sort of
see this baseline of how much gold is out for delivery. Now,
typically January is a very low month. And look at
(18:45):
this record that we've set for January twenty twenty five,
way above normal, way above.
Speaker 1 (18:50):
Where we see January. And so we can see there's
this urgency. People are freaking out.
Speaker 2 (18:57):
They're paying massive premiums to get hand on the physical
Why is that? That's because the entire fundamental market is shifting,
all right, So what's next? Where do we go from here? Well,
I really see two options, two ways out. Now, this
is a fundamental transformation of the entire gold market.
Speaker 1 (19:17):
But we only have to look back to.
Speaker 2 (19:19):
History to see when this has happened before. In about
eighty years, you know, about every eight years we have
this financial revolution, and we can see exactly what happened
last time. So let me show you what history tells us.
Speaker 1 (19:29):
Now. The first thing is scenario number one. They try
to patch the cracks.
Speaker 2 (19:32):
Of course, they're going to how can we patch the
cracks in this scenario to make it look like we
don't have a problem. So this gold depository could on paper,
loan more to this gold depository so they could double
count them for example.
Speaker 1 (19:44):
They can borrow back and forth. But the problem is.
Speaker 2 (19:47):
Now we have a physically settled market and this is
what changed everything. So as I already showed you there
in the LBMA has two hundred and seventy nine supposedly
available on their books.
Speaker 1 (20:00):
There's only thirty six.
Speaker 2 (20:01):
Million available for draw but there's over three hundred million
in demand.
Speaker 1 (20:05):
When that starts to be physically settled, then we have
a problem.
Speaker 2 (20:10):
So what happens is in the beginning, they try to
patch the cracks, they try to loan to each other,
they try to show that they have it to maybe
bring some confidence back into the market right now. It's
like if there was a run on the bank, you
need to show everybody, hey, you don't need to pull
it out.
Speaker 1 (20:24):
It's very expensive, it's very hard, it's very time consuming
to get it out. It's better to keep it here.
Look how safe we are.
Speaker 2 (20:29):
But we can see that they're also trying to help
each other out as best as we can. Here we
have US demand squeezes, India's gold supply leasing rates rise
to records, so they're leasing it, they're borrowing it, they're
putting it on their books to make it look like
they have it.
Speaker 1 (20:44):
Now what we can see, why is it all moving.
Speaker 2 (20:47):
From London, the WMA and Bank of England over to
the US. Well, the US is also trying to prepare
for this, so they're all trying to patch the cracks.
But again, history gives us so many valuable lessons and
shows us what happens in the gold markets when they
become over manipulated and they're trying to patch the cracks.
(21:07):
So we can see back here something called the London
gold pool.
Speaker 1 (21:11):
Now you might.
Speaker 2 (21:12):
Remember in nineteen forty four we had the Bretonwood's Agreement
where the entire world went onto a gold back standard.
The US dollar would be the reserve currency of the world.
It'd be pegged two gold, so thirty five US dollars
would equal one ounce of gold. Then the whole world
would peg to the US dollar.
Speaker 1 (21:29):
But the problem is.
Speaker 2 (21:30):
Pegs never work. Traders are always going to exploit those pegs,
and we also have the problem with humans and governments
wanting to always print more.
Speaker 1 (21:38):
Manipulate the system.
Speaker 2 (21:39):
And so we can see this is exactly what happened
back in the nineteen sixties. We had the London Gold Pool,
and so basically this is the same situation, a very
similar situation to what we're seeing now. And it was
the pooling of gold reserves by a group of eight
central banks, so the United States and seven European countries.
Speaker 1 (21:57):
So they all pooled their gold to try to help
each other's.
Speaker 2 (22:01):
Books, to show that they had enough liquidity so they
wouldn't break the system down, all right, So on November first,
nineteen sixty one, they cooperated in maintaining the Bretonwood system
that was set up in nineteen forty four. It was
already breaking apart in nineteen sixty one, that's how quick
these things fall apart, the system of fixed rate convertible
currencies and defending this is the whole thing, defending the
(22:22):
price of gold at thirty five dollars per ounce. And
so they did all these interventions in the London gold market,
the LBMA, all right, the central banks coordinated, concealed, I'm sorry,
concerted methods working in unison, working together of gold sales
to balance spikes in the market price of gold.
Speaker 1 (22:41):
So when the price of gold was spiking in.
Speaker 2 (22:43):
Different markets, they would work in a concerted way, in
in a group way, to dump more gold, more supply
into the markets to bring those prices back down. But
the problem is, again is that traders will continue to
exploit that, and.
Speaker 1 (22:57):
The problem is you start to run out of gold.
And that's exactly what happened.
Speaker 2 (23:01):
The price controls were successful for six years until the
system became unworkable. They could no longer suppress and manipulate
the price. So China set up their physically settled gold
market years ago. We're seen coming to an end just
like it did here. It says the price of gold
(23:22):
peg was too low and after runs on gold, the
British pound and the US dollar occurred. France decided to
withdraw from the pool. The London Gold Pool collapsed in.
Speaker 1 (23:31):
March of nineteen sixty eight, so a few years after
they set it up. But think about this.
Speaker 2 (23:36):
Here says that the price of gold was too low,
so the price of gold needed to come up because
there was more demand. And after runs on gold, the
British pound and the US dollar occurred, and so runs
on gold everyone was trying to get as much gold
as as they put out of the system as well
as runs on the pound and the dollar.
Speaker 1 (23:54):
They had to go ahead and drop it says right here.
Speaker 2 (23:56):
But this gold window collapsed in nineteen seventy one finally,
so the controls followed with an effort to suppress the
gold price. They tried to keep the game going for
a little bit longer, but it closed officially. Nineteen seventy
one with the Nixon Shock resulted in the onset of
the gold bowl market, which saw the price of gold
appreciate rapidly to US eight hundred and fifty dollars by
(24:17):
nineteen eighty, So nineteen seventy one it was thirty five
dollars and by nineteen eighty nine, years later it went
from thirty five dollars to eight hundred and fifty dollars win.
The concerted effort, the London Pool win. The manipulation broke.
And what broke it the physical demand of that gold. Okay,
now what does this mean for all of us? Well,
(24:38):
this means that gold is surging. I expect gold to
continue surging for the reasons we've already given you.
Speaker 1 (24:45):
Mainly, governments don't want to hold US treasuries that could
be seized from them, like what happened to Russia. Number two.
Speaker 2 (24:51):
The entire world, not just the US, but all the
central banks are doing massive monetary stimulus and will continue
to increase that monetary stimulus, and.
Speaker 1 (24:58):
So gold will be that inflation hedge.
Speaker 2 (25:00):
Then we add on top of it the fundamental breaking
of the system and this cash settle market doing that,
and so we expect gold to go higher. Right, So
what the smart money doing is doing is moving to gold.
Speaker 1 (25:15):
You and I were considered dumb money. Hate to break
it to you.
Speaker 2 (25:17):
The smart money is the institutions, the funds, and yes,
central banks, they're all moving to gold.
Speaker 1 (25:22):
I already showed you the record.
Speaker 2 (25:24):
Demand, and what we're seeing is that physical is much
more in demand than paper at this point, as I've
shown you, they're willing to pay a massive premium for
the physical over paper in the system because that paper
might not be there. So if you have a bunch
of paper gold, you might want to consider moving that
into some physical gold that could at least be stored
in a vault somewhere else like that. Also, gold mining
(25:46):
socks should continue to do good. I mean, if they've
they've been struggling in the last couple of years.
Speaker 1 (25:50):
Inflation has pushed costs up super high.
Speaker 2 (25:51):
The price of gold hasn't been moving that much, but
with the demand for physical moving up, we might see
an increased demand for gold mining. Also, what we're seeing
is a massive demand for bitcoin, which is digital gold.
And bitcoin is not just in demand by retail like
US now, it's also wall streets, institutions, and even central banks.
I think we have twenty one states in the United
States doing a bitcoin reserve or working on one other
(26:13):
nations as well. We've seen bitcoin move up I think
five hundred percent over gold in that same timeframe. And
then most importantly, think about the long term. All Right,
as I showed you that gold chart in the beginning,
nothing moves up or down in a straight line.
Speaker 1 (26:27):
This will not be a smooth path.
Speaker 2 (26:29):
We're talking about the change of this eighty year old system,
this financial revolution cycle coming to an end, and an
entire new system being introduced. But when this all happens,
expect the price of gold to pop ten twenty thousand dollars.
Speaker 1 (26:45):
I don't think it's if.
Speaker 2 (26:45):
I think it's a matter of when and if you
want to find out more about that. I did a
whole video on this to show you why I think
the US will do this and circumvent it.
Speaker 1 (26:54):
Let's go ahead and put that video right here if
you want to watch that. Otherwise, let me know what
you think about this video.
Speaker 2 (26:58):
Thumbs up if you like it, thumbs down if you don't,
that's okay. At least tell me why in the comments.
Speaker 1 (27:01):
And that's what I got. Right to your success. I'm
out
Gold is up forty six percent in less than a year.
Speaker 2 (00:03):
That's double the gains of the Nasdaq and the S
and P five hundred in the same period.
Speaker 1 (00:08):
A historic bull run for gold.
Speaker 2 (00:10):
But when gold moves like this, it's never just about
inflation or market demand. It means something is breaking in
the global monetary system, and most people have no idea why.
Speaker 1 (00:22):
Here's the shocking part. This surge isn't just another rally.
Speaker 2 (00:26):
It's a deeper crisis that's triggering the biggest shakeup in
the gold market in a century. So in this video,
I'm gonna break down what's really behind the gold price surge,
why the paper gold system is on the brink of collapse.
Two possible outcomes from here, and we'll look back to
history to see when this has happened before, and of
course what you need to be doing to prepare for
(00:48):
this now real quick. On Mark Moss, I'll built and
exit multiple tech companies, invested through several booms in bus
and today I'm a partner at a leading bitcoin venture fund.
I also write the Quantum Wave Investment Support where to
help people navigate the biggest shifts in tech and money,
and I make these videos to give you insights that
we're using so you can navigate.
Speaker 1 (01:08):
And profit from these shifts as well. So let's go.
Speaker 2 (01:12):
All right, we're gonna jump right into this. I'm gonna
try to get through this as quick as I can.
Speaker 1 (01:15):
But I got a lot of charts and graphs.
Speaker 2 (01:17):
But unless you've been living under a rock, you don't
look at the news or any kind of financial or
economic data. Then you already know that the price of
gold is completely surging. But what you don't know is
why and what is going on beneath the surface, the
fundamental system that's causing.
Speaker 1 (01:33):
This to happen. Now, as I always.
Speaker 2 (01:34):
Tell you, you can get the news from anywhere. What
I'm trying to do is give you the reading between
the lines what's really going on.
Speaker 1 (01:40):
So we'll look at that now.
Speaker 2 (01:41):
Of course, most people think that it's because central banks
are buying up massive amounts of gold, and they are,
They're buying records amounts. Central banks hunger for gold shows
no sign of being.
Speaker 1 (01:54):
Quelled this year. This is just February.
Speaker 2 (01:56):
Fifth, so there's no signs that they're appetite, their desire
for gold is gonna bequlled. So we have central banks
buying massive amounts. Now to put this, you know, I
would like to show you the charts and the graphs
so you can understand this.
Speaker 1 (02:08):
This is central bank gold. Bye.
Speaker 2 (02:11):
This goes back to twenty ten and you can see
how much they were buying here twenty eleven, twelve thirteen.
We had a little dip here in twenty twenty, twenty
twenty one. And look at how much this new baseline
we're at. This is over one thousand tons that they're
adding every single year right here.
Speaker 1 (02:28):
This blue line is the average they are on. So
something happened.
Speaker 2 (02:33):
These years twenty eighteen twenty nineteen were a little bit
of a bad average, but something happened right here twenty two,
twenty three, and twenty four and have changed the appetite
for gold from governments and central banks.
Speaker 1 (02:44):
What could it be? Well two things.
Speaker 2 (02:47):
Number one it could be you remember right here the
massive amounts of debasement, monetary debasement of government printing spending,
if you will, That happened right here. So in times
of massive monetary debasements, cent banks are going to do
what they do, which.
Speaker 1 (03:01):
Is trying to protect their wealth with gold.
Speaker 2 (03:04):
Also, what happened right around here twenty twenty two was
when the Russia Ukraine War broke out. The United States
and NATO decided to seize basically Russia's bank accounts, and
all the governments of the world were put unnoticed that
your savings in the financial system are not safe and
you might want something physical like this.
Speaker 1 (03:23):
Two big catalysts that happened and change that.
Speaker 2 (03:25):
And of course since we've seen that massive demand for gold,
we've seen the price.
Speaker 1 (03:30):
Continue to go up higher and higher and higher.
Speaker 2 (03:33):
Now some of you look at things way too short
and yes gold went down, and yes it went down,
and yes it went down, but you can see the
trend is going up. So if you're a long time investor,
long term thinker like I am, then you know that
you just want to continue to hold gold.
Speaker 1 (03:48):
Here we are at almost about three thousand.
Speaker 2 (03:51):
Now there is some things going on beneath the surface
that really show us what's going on.
Speaker 1 (03:56):
I want to break this down for you.
Speaker 2 (03:57):
What we've been seeing is that there's basically two big
gold markets.
Speaker 1 (04:01):
Well now there's three, and we're going to talk about that.
Speaker 2 (04:03):
But the two big ones that have been in London,
the London the LBMA London Boylan Market Association. That's LBMA,
and then we have in the United States, we have
the comics And what we've been seeing is that the
London gold market is facing unprecedented strain. Unprecedented is in
like historic, as in like never seen before, a rapid
outflow of gold to the US comics warehouses. So the
(04:26):
gold is flowing from London, and not just the LBMA
but also the Boe Bank of England is flowing from
there over into the US markets, the comics warehouses. While
the LBMA data shows two hundred and seventy nine million
ounces stored on paper, they show that there's two hundred
and seventy nine ounces stored at the London vaults as
(04:47):
of December twenty twenty four, only thirty six million of
the two hundred and seventy nine million the float are
theoretically available. So even though they show they have two
hundred and eighty million, theoretically there's only about thirty six
million available. That means there's short big time right, a
critical liquidity shortfall against an estimated three hundred and eighty
(05:11):
million ounces of outstanding spot cash contracts. The spot cash contracts.
That's gonna tell us where we have to go to
look next. So there's about three hundred and eighty million
ounces of demand in these contracts spot cash contracts, but
yet there's only two hundred and seventy nine on the
books on paper. But the reality is there's only thirty
(05:33):
six million. Do the math, it's about ten percent. Sort
of like a fractional reserve banking. And what happens if
everybody wants to pull their money out or their gold out,
well you see a run on the banks, and that's
exactly what we're seeing. The current crisis suggests much of
the vaulted gold is either pledged to central banks etsts
or foreign governments. So it's already pledged. That's why it's
(05:55):
not available. Of the two hundred seventy nine million, it's
not available. This is part of what is known as rehypothecation.
We'll talk more about that in a minute. Okay, Now,
the real reason that we see the price of gold
going up is yes, because there's a massive demand.
Speaker 1 (06:11):
Why is their massive demand? We already talked about the debasement.
Speaker 2 (06:13):
We already talked about being able to hold your assets
in a way that governments of the United States can't
steal from you. But really we see these central banks hoarding,
and we want to understand the dynamics of these things.
So why are central banks accumulating in large quantities. I've
already sort of given you some of this accumulty goal
to diversify reserves reduce dependency on the US dollar. China
(06:34):
in particular has been on a gold mining spree for
the seventeenth consecutive month. Now, nobody really knows how much
gold China has, because.
Speaker 1 (06:43):
Nobody can really trust the data coming out of there.
Whatever they show us, it's probably three, five, maybe even
ten times more than what they have.
Speaker 2 (06:51):
But we can see here the People's Bank of China,
the PBOC, continue to streak of gold purchases it's diverse
finance reserves away from the dollar. In February, China divested divested,
meaning sold off treasuries twenty two point seven billion in
US treasuries.
Speaker 1 (07:07):
Sold the treasuries to buy gold.
Speaker 2 (07:09):
Strategic move by China reflects a deliberate effort to reduce
its dependency on the dollar. Shoot, these treasuries could get
taken from us, like what happened to Russia. We should
probably sell those and buy an asset like gold that
can't be taken away. China is not the only country
doing this, and it's a massive move.
Speaker 1 (07:26):
The PBOC required I'm sorry, acquired.
Speaker 2 (07:29):
Two hundred and twenty four tons two and twenty four
tons of which and only sixty two tons in twenty
twenty two, So from sixty two to two hundred and
twenty four they have really stepped up the rate at
their buying. Now sort of again trying to understand the
differences of these markets.
Speaker 1 (07:46):
We can see that again in London the LBMA and
now tap it.
Speaker 2 (07:50):
Into the BOE that London's record gold outflow is going
into US stockpiles. Now this is record again, this is historic,
this is unprecedented. We can see here that shrinking by
the fastest amount on record as banks, dealers and speculators.
Speaker 1 (08:08):
Fly boy on to New York.
Speaker 2 (08:10):
So they're all taking it out of the BOE and
the LBMA hands and moving it over to the US.
Speaker 1 (08:16):
So what is going on?
Speaker 2 (08:18):
Why is all this gold moving? Well, part of it
is because the demand is so high.
Speaker 1 (08:23):
We're going to get into some of.
Speaker 2 (08:23):
This paper manipulation that's breaking right now, but it's also
been because and we can see I have another chart
here just to show you how big this is. I
love to show these charts so we can see this
is the gold inventories in New York at the comics,
and you can.
Speaker 1 (08:38):
See that they are absolutely exploding. That's what we call
parabolic right there.
Speaker 2 (08:42):
But to understand sort of these mechanics, what we kind
of want to understand is what's really been driving this
is China. China's insatiable amount desire for gold as well
as they're you know, continued buying as well as they're
divesting from treasuries to buy more gold. More specifically them
setting up this Shanghai Gold Exchange. And what's happened in
(09:05):
the Shanghai Gold Exchange is it's sort of meant to
break the grip of the paper markets at the.
Speaker 1 (09:12):
US with the comics and London with the LGAM may have.
Speaker 2 (09:15):
So gold investors, if you're a gold investor at Goldbug,
you know this. We're talking about it for years, how
manipulated this market is because of the paper gold that's
sold against it. And the reason why that's done is
because you can't really get the gold out of the market,
so you buy them through ETFs and so then they're
able to rehypothecate, meaning loan it out, loan it out,
loan it out over and over again, and really build
(09:37):
up the supply of gold on paper, even though it's
not physical. I want to talk more about that in
a second. But what China did is they launched their
Shanghai Gold Exchange and now it's physically settled. That means
that I can go actually redeem and receive my gold. Now,
what's what we're finding is that that physical gold. Today,
when you're worried about a run on the bank or
(09:58):
a default, you want the physical. We're seeing a massive
premium being paid for physical gold. So when I can
buy it for cheaper on one market and sell it
for a higher price on another market, that's called arbitrage.
That's what traders do, and that's exactly what's been happening.
One big factor pulling Western markets upwards, the price of
gold upwards, is the arbitrage happening in China, and it's
(10:21):
the fact that the Shanghai International Gold Exchange SGEI is
a physically settled market, which is different from the cash
settled markets in the West, the US, in London. So
you can do your options, you can make your bet
on gold, but at the end you get settled in cash,
not physical gold.
Speaker 1 (10:39):
And China's changing all.
Speaker 2 (10:40):
That with a physically settled market on the scene, and
with that market trading at a significant premium above what
the West.
Speaker 1 (10:48):
The US and London.
Speaker 2 (10:50):
Traders were able to buy up the comics or the
LBMA futures and then demand delivery. So I bought them cheap,
and I demand delivery.
Speaker 1 (10:58):
I don't want just to cash.
Speaker 2 (11:00):
And then they sell the physical into Shanghai.
Speaker 1 (11:03):
This is what traders do.
Speaker 2 (11:04):
Traders exploit arbitrage opportunities. It's sort of like to carry
trade in Japan. Right We're always trying to buy low
and sell high in different markets at the same time.
And China, by setting up this Shanghai Gold exchange, gives
us opportunity for these traders to now buy it for
cheaper in London in the US and sell for hire
in chat. Now why is it cheaper in the US
(11:24):
in London, Well, a couple of reasons. Number one, again,
we know that physical gold right now at this point
is more in demand.
Speaker 1 (11:33):
The governments are like, I don't trust anybody else. I
want my gold.
Speaker 2 (11:35):
Also, investors are like the same, doing the same thing.
And then what happens is when the traders start getting involved,
it starts to push that even more. All right, So
that is the mechanics that really started pushing this higher.
Now there's a lot of rumors about China wanted to
have a goldback currency. I've done videos talking about how
the US might even try to preempt China in that.
Speaker 1 (11:57):
We'll come back to more on that in a minute.
Speaker 2 (12:00):
Okay, Now what we're really seeing is the illusion of
the gold market is starting to crack.
Speaker 1 (12:06):
The paper illusion. Now we don't really know.
Speaker 2 (12:09):
I've seen estimates that there are somewhere between one hundred,
three hundred to maybe even five hundred paper ounces of
gold for every one single physical ounce. And again that's
because these funds, the ETFs, they take in gold the banks.
Speaker 1 (12:24):
And then they loan it out, and then they loan
it out and they load it out. That's got a
re hypothecation. Let me explain how that works.
Speaker 2 (12:30):
So let's say, for example, for easy use cases, I
have a candy bar, but I'm not hungry. I don't
want to eat it, so I'm going to loan it
to my friend. Now he has a candy bar in
his hand and he owes me one. So on my books,
I shall have a candy bar, but he decides he
doesn't want to eat it, and he loans it to the
next guy.
Speaker 1 (12:48):
That guy loans it to the next guy, that the
guy loans to the next guy.
Speaker 2 (12:51):
Now there's five candy bars in existence, the guy who
physically has it, the guy who's O.
Speaker 1 (12:57):
One O one ode one, im ode one.
Speaker 2 (13:00):
So now there's five candy bars on paper, but there's
only one actual physical one. But what happens if the
guy at the end gets hungry and eats it, Well,
now he's eaten one candy bar, but five candy bars
have now disappeared.
Speaker 1 (13:15):
And so that's what we're seeing.
Speaker 2 (13:16):
When we start to rehypothecate this gold, we start to
expanding supply without actually adding it.
Speaker 1 (13:20):
So we have all these paper claims. What we're seeing,
as I said, is.
Speaker 2 (13:24):
Now people were like, I want the gold, and so
we're seeing that gold buoyon has a premium over the
paper claims, and that's why it's starting to break this
cash set of the market. Now, there wasn't a mechanism
for this before, which.
Speaker 1 (13:36):
Is why it's something new.
Speaker 2 (13:37):
Now gold futures contracts opting for delivery are surging, So
we have something called backwardation and this is in the
options market.
Speaker 1 (13:46):
And so what this means is that people.
Speaker 2 (13:47):
Are paying more today than they could pay in the future.
I'll pay a premium to get it right now rather
than waiting for it, and that shows.
Speaker 1 (13:56):
The urgency that's here.
Speaker 2 (13:57):
We can see that there's been a surge in gold
futures contracts for delivery and the ord of twenty eight
percent of registered goal.
Speaker 1 (14:02):
Will be required to fulfill orders.
Speaker 2 (14:04):
So there's massive search for delivery. Everybody wants the goal.
They don't trust the markets. A small business owner, are
you buried in all types of work keeping you from
the real thing that makes you money? Well, that's where
just Works comes in. They're the all in one platform
that supports small business growth.
Speaker 1 (14:21):
You can get all.
Speaker 2 (14:22):
Their tools that help with benefits like payroll and HR
and compliance with transparent pricing. Now they help you hire
top talent internationally, internew markets, quickly scale international operations without
the workload and forevery how.
Speaker 1 (14:36):
Do I do it? Question?
Speaker 2 (14:37):
You can reach out to their expert staff from sole
proprietor or a team of twenty. Just Works empowers all
kinds of small businesses with real human support. So visit
Justworks dot com slash podcast to join the thousands of
small businesses that trust Just Works to take care of payroll, benefits,
compliance and more. Again That's Justworks dot com slash podcast. Yes, now,
(15:02):
the markets are set up to not have this happen,
so it's very difficult for a trader to actually get
the gold out of the market, and it's even more
difficult to get the gold back.
Speaker 1 (15:12):
Into the market.
Speaker 2 (15:13):
This is a piece that I've taken from Peruvium Bowl.
Shout out to Peruvian Bowl. We'll link to the full
article down below if you.
Speaker 1 (15:20):
Want to check it out. Here did some really good
work on this.
Speaker 2 (15:22):
To take physical delivery, a trader must one hold a
long position in a futures contract because you have to
buy the futures contract and you have to hold it
all the way till it's expiration. Usually they're trading these
things and.
Speaker 1 (15:32):
Not holding them all the way to the end. Number
two issue a delivery note to the comics.
Speaker 2 (15:36):
There's a lot of paperwork formllies have to be done
painting the butt. Three receive a warehouse receipt which represents
ownership of gold in an approved depository. Key piece in
an approved depository.
Speaker 1 (15:46):
Another hurdle get to jump through. Four a range for
physical withdrawal if desired.
Speaker 2 (15:50):
Which involves additional fees and additional logistics and additional paint
in the butt that makes it very difficult.
Speaker 1 (15:56):
Five gold is.
Speaker 2 (15:57):
Delivered and one hundred troy ounce bars, and an investor
must purchase contracts in multiples of one hundred ounces to
take delivery.
Speaker 1 (16:04):
This is not for small players. There's a hundred ounce minimum.
You can do the math. This is a different amount
of capital.
Speaker 2 (16:12):
Comics only allows deliveries from a few approved depositories. So
now if you want to take the gold out and
then you want to put it back in, that might
be a problem because they only allow it from a
few approved depositories such as Brinks, JP Morgan and Malcolm Emett.
Moving the gold out of these vaults requires additional approvals
(16:33):
and transport logistics and fees. So again you can only
get it out to a couple of places. But that's
even more expensive and even more time consuming and so forth.
Speaker 1 (16:41):
Taking physical delivery is expensive, including storage fees, insurance, transportation costs.
If you don't know, gold is.
Speaker 2 (16:48):
Heavy, so to take delivery of it is very expensive.
Speaker 1 (16:51):
But then if the gold is withdrawn for personal storage,
it may lose its comics good delivery designation, the status,
making it harder to resell it at market prices.
Speaker 2 (17:03):
So they do almost everything they can to keep people
from taking the physical out. Why because they want to
retain control of it so they can continue to having
it on the books to rehypothecate it over and over
and over. That's why ninety percent of trading is on paper.
They can sell naked shorts to depress the price all
these things. But again now they're seeing these huge withdraws
(17:26):
and it's moving, and we can see here that gold
says here bullion banks are borrowing GLD, so GLD.
Speaker 1 (17:32):
Is one of the biggest gold ETFs out there.
Speaker 2 (17:34):
Bullion banks are borrowing GLD shares and converting the units
to physical and.
Speaker 1 (17:40):
Gaining control over the metal.
Speaker 2 (17:43):
So they're borrowing that they're buying and they're trying to
convert as fast they can. GLD ETF alert. The borrowing
fee on g GLD ETF has gone vertical today.
Speaker 1 (17:53):
Why because of the demand for everyone borrowing.
Speaker 2 (17:56):
They'll try to fix the system, where I should say
they're trying to paper over the system, which I'll show
you the two options we have for that in a second.
But we can see the price of gold set a
new record high on Friday's data showed stockpiles in London.
Data showed stockpiles in London shrinking by the fastest amount
on record.
Speaker 1 (18:17):
So again getting completely drained speculators fly boy on to
New York. London's gold fixed today above twenty to thirty five.
We don't work about the.
Speaker 2 (18:25):
Pricing, but we can see that it's these discrepancies the
traders are going after. This is a really cool charge
from shift shift gold. And we can see this is
gold for deliveries, and so again you can sort of
see this baseline of how much gold is out for delivery. Now,
typically January is a very low month. And look at
(18:45):
this record that we've set for January twenty twenty five,
way above normal, way above.
Speaker 1 (18:50):
Where we see January. And so we can see there's
this urgency. People are freaking out.
Speaker 2 (18:57):
They're paying massive premiums to get hand on the physical
Why is that? That's because the entire fundamental market is shifting,
all right, So what's next? Where do we go from here? Well,
I really see two options, two ways out. Now, this
is a fundamental transformation of the entire gold market.
Speaker 1 (19:17):
But we only have to look back to.
Speaker 2 (19:19):
History to see when this has happened before. In about
eighty years, you know, about every eight years we have
this financial revolution, and we can see exactly what happened
last time. So let me show you what history tells us.
Speaker 1 (19:29):
Now. The first thing is scenario number one. They try
to patch the cracks.
Speaker 2 (19:32):
Of course, they're going to how can we patch the
cracks in this scenario to make it look like we
don't have a problem. So this gold depository could on paper,
loan more to this gold depository so they could double
count them for example.
Speaker 1 (19:44):
They can borrow back and forth. But the problem is.
Speaker 2 (19:47):
Now we have a physically settled market and this is
what changed everything. So as I already showed you there
in the LBMA has two hundred and seventy nine supposedly
available on their books.
Speaker 1 (20:00):
There's only thirty six.
Speaker 2 (20:01):
Million available for draw but there's over three hundred million
in demand.
Speaker 1 (20:05):
When that starts to be physically settled, then we have
a problem.
Speaker 2 (20:10):
So what happens is in the beginning, they try to
patch the cracks, they try to loan to each other,
they try to show that they have it to maybe
bring some confidence back into the market right now. It's
like if there was a run on the bank, you
need to show everybody, hey, you don't need to pull
it out.
Speaker 1 (20:24):
It's very expensive, it's very hard, it's very time consuming
to get it out. It's better to keep it here.
Look how safe we are.
Speaker 2 (20:29):
But we can see that they're also trying to help
each other out as best as we can. Here we
have US demand squeezes, India's gold supply leasing rates rise
to records, so they're leasing it, they're borrowing it, they're
putting it on their books to make it look like
they have it.
Speaker 1 (20:44):
Now what we can see, why is it all moving.
Speaker 2 (20:47):
From London, the WMA and Bank of England over to
the US. Well, the US is also trying to prepare
for this, so they're all trying to patch the cracks.
But again, history gives us so many valuable lessons and
shows us what happens in the gold markets when they
become over manipulated and they're trying to patch the cracks.
(21:07):
So we can see back here something called the London
gold pool.
Speaker 1 (21:11):
Now you might.
Speaker 2 (21:12):
Remember in nineteen forty four we had the Bretonwood's Agreement
where the entire world went onto a gold back standard.
The US dollar would be the reserve currency of the world.
It'd be pegged two gold, so thirty five US dollars
would equal one ounce of gold. Then the whole world
would peg to the US dollar.
Speaker 1 (21:29):
But the problem is.
Speaker 2 (21:30):
Pegs never work. Traders are always going to exploit those pegs,
and we also have the problem with humans and governments
wanting to always print more.
Speaker 1 (21:38):
Manipulate the system.
Speaker 2 (21:39):
And so we can see this is exactly what happened
back in the nineteen sixties. We had the London Gold Pool,
and so basically this is the same situation, a very
similar situation to what we're seeing now. And it was
the pooling of gold reserves by a group of eight
central banks, so the United States and seven European countries.
Speaker 1 (21:57):
So they all pooled their gold to try to help
each other's.
Speaker 2 (22:01):
Books, to show that they had enough liquidity so they
wouldn't break the system down, all right, So on November first,
nineteen sixty one, they cooperated in maintaining the Bretonwood system
that was set up in nineteen forty four. It was
already breaking apart in nineteen sixty one, that's how quick
these things fall apart, the system of fixed rate convertible
currencies and defending this is the whole thing, defending the
(22:22):
price of gold at thirty five dollars per ounce. And
so they did all these interventions in the London gold market,
the LBMA, all right, the central banks coordinated, concealed, I'm sorry,
concerted methods working in unison, working together of gold sales
to balance spikes in the market price of gold.
Speaker 1 (22:41):
So when the price of gold was spiking in.
Speaker 2 (22:43):
Different markets, they would work in a concerted way, in
in a group way, to dump more gold, more supply
into the markets to bring those prices back down. But
the problem is, again is that traders will continue to
exploit that, and.
Speaker 1 (22:57):
The problem is you start to run out of gold.
And that's exactly what happened.
Speaker 2 (23:01):
The price controls were successful for six years until the
system became unworkable. They could no longer suppress and manipulate
the price. So China set up their physically settled gold
market years ago. We're seen coming to an end just
like it did here. It says the price of gold
(23:22):
peg was too low and after runs on gold, the
British pound and the US dollar occurred. France decided to
withdraw from the pool. The London Gold Pool collapsed in.
Speaker 1 (23:31):
March of nineteen sixty eight, so a few years after
they set it up. But think about this.
Speaker 2 (23:36):
Here says that the price of gold was too low,
so the price of gold needed to come up because
there was more demand. And after runs on gold, the
British pound and the US dollar occurred, and so runs
on gold everyone was trying to get as much gold
as as they put out of the system as well
as runs on the pound and the dollar.
Speaker 1 (23:54):
They had to go ahead and drop it says right here.
Speaker 2 (23:56):
But this gold window collapsed in nineteen seventy one finally,
so the controls followed with an effort to suppress the
gold price. They tried to keep the game going for
a little bit longer, but it closed officially. Nineteen seventy
one with the Nixon Shock resulted in the onset of
the gold bowl market, which saw the price of gold
appreciate rapidly to US eight hundred and fifty dollars by
(24:17):
nineteen eighty, So nineteen seventy one it was thirty five
dollars and by nineteen eighty nine, years later it went
from thirty five dollars to eight hundred and fifty dollars win.
The concerted effort, the London Pool win. The manipulation broke.
And what broke it the physical demand of that gold. Okay,
now what does this mean for all of us? Well,
(24:38):
this means that gold is surging. I expect gold to
continue surging for the reasons we've already given you.
Speaker 1 (24:45):
Mainly, governments don't want to hold US treasuries that could
be seized from them, like what happened to Russia. Number two.
Speaker 2 (24:51):
The entire world, not just the US, but all the
central banks are doing massive monetary stimulus and will continue
to increase that monetary stimulus, and.
Speaker 1 (24:58):
So gold will be that inflation hedge.
Speaker 2 (25:00):
Then we add on top of it the fundamental breaking
of the system and this cash settle market doing that,
and so we expect gold to go higher. Right, So
what the smart money doing is doing is moving to gold.
Speaker 1 (25:15):
You and I were considered dumb money. Hate to break
it to you.
Speaker 2 (25:17):
The smart money is the institutions, the funds, and yes,
central banks, they're all moving to gold.
Speaker 1 (25:22):
I already showed you the record.
Speaker 2 (25:24):
Demand, and what we're seeing is that physical is much
more in demand than paper at this point, as I've
shown you, they're willing to pay a massive premium for
the physical over paper in the system because that paper
might not be there. So if you have a bunch
of paper gold, you might want to consider moving that
into some physical gold that could at least be stored
in a vault somewhere else like that. Also, gold mining
(25:46):
socks should continue to do good. I mean, if they've
they've been struggling in the last couple of years.
Speaker 1 (25:50):
Inflation has pushed costs up super high.
Speaker 2 (25:51):
The price of gold hasn't been moving that much, but
with the demand for physical moving up, we might see
an increased demand for gold mining. Also, what we're seeing
is a massive demand for bitcoin, which is digital gold.
And bitcoin is not just in demand by retail like
US now, it's also wall streets, institutions, and even central banks.
I think we have twenty one states in the United
States doing a bitcoin reserve or working on one other
(26:13):
nations as well. We've seen bitcoin move up I think
five hundred percent over gold in that same timeframe. And
then most importantly, think about the long term. All Right,
as I showed you that gold chart in the beginning,
nothing moves up or down in a straight line.
Speaker 1 (26:27):
This will not be a smooth path.
Speaker 2 (26:29):
We're talking about the change of this eighty year old system,
this financial revolution cycle coming to an end, and an
entire new system being introduced. But when this all happens,
expect the price of gold to pop ten twenty thousand dollars.
Speaker 1 (26:45):
I don't think it's if.
Speaker 2 (26:45):
I think it's a matter of when and if you
want to find out more about that. I did a
whole video on this to show you why I think
the US will do this and circumvent it.
Speaker 1 (26:54):
Let's go ahead and put that video right here if
you want to watch that. Otherwise, let me know what
you think about this video.
Speaker 2 (26:58):
Thumbs up if you like it, thumbs down if you don't,
that's okay. At least tell me why in the comments.
Speaker 1 (27:01):
And that's what I got. Right to your success. I'm
out
Host
Mark Moss
Show Links
The Mark Moss ShowMark's WebsitePopular Podcasts
Dateline NBC
Current and classic episodes, featuring compelling true-crime mysteries, powerful documentaries and in-depth investigations. Follow now to get the latest episodes of Dateline NBC completely free, or subscribe to Dateline Premium for ad-free listening and exclusive bonus content: DatelinePremium.com
24/7 News: The Latest
The latest news in 4 minutes updated every hour, every day.
Therapy Gecko
An unlicensed lizard psychologist travels the universe talking to strangers about absolutely nothing. TO CALL THE GECKO: follow me on https://www.twitch.tv/lyleforever to get a notification for when I am taking calls. I am usually live Mondays, Wednesdays, and Fridays but lately a lot of other times too. I am a gecko.