As long as silver stays low.
I know we don't like silver being low, it makes us feel bad, but that
is the way to drain these stockpiles.
And once they are drained, then the price can move up.
This is what we're experiencing now because it looks like the diehards
are losing faith.
But there are newcomers that are buying this Supply because somebody
is, which is why it is going down this article appeared on Zero Hedge.
It is originally from quoth The Raven, who apparently likes Edgar
Allan Poe bit too much, but he's a good guy on Zero Hedge.
It gives this little chart here where it shows silver at one point
eight, one, eight billion ounces.
And then June 2020 to of 997 million.
However, this chart is not current, it is outdated because quoth The
Raven didn't go into the primary sources.
You just quoted run in mainly influenced our which I did last week,
but here is the actual numbers.
Here, are the actual numbers be grammatically, correct?
This is current to July, not 997, but 950 million ounces, we see here.
This is a very strong silver drain from the lbma in London.
Gold is not moving as much.
Each.
Why is that?
Because a lot of that gold belongs to the bank of England, which does
not sell it.
And a lot of it belongs to ETS, which do not sell it and true, a lot
of the silver belongs to ETFs also in London but a lot of it's
free-floating.
So we have silver drain from the lbma but gold is draining from the
comex at incredible record rate.
What we have here is another drain of 1.5 to 2 million ounces.
Sorry one point five seven, two million ounces this month in August
and if you look in here, close You can see that.
It's almost a record.
We have 14 million, thought, thirteen, point eight million in
registered stocks left.
This is a record month all-time record and you can see that from here
is black line that I drew this little thin black horizontal line and I
showed this last week, this is a record down month and this month is
just about there.
We're at one point, five seven, two million ounces drained.
So that is 3.6 million or so 3.7 almost 4 million.
Announces drained in the last two months.
Why is it being drained?
Because price is too low and Fiat.
Currencies are dying.
That is what is happening.
And we got to get these stocks down.
If we're going to see a sustained Moon up in Futures, and therefore in
the spot price.
And now what about silver?
The registered stocks closed down about 2.5 million ounces on
Thursday.
If you're watching this it's yesterday we're at fifty two point zero,
two million ounces, whereas I'm like Fifty four point something
million day.
Before this huge downline, the trend.
The slope has been pretty much consistent except for a tiny little
blip up for a day or two here, but the trend has been for about 150.
You Millions to the top here and this was the exact date of silver
squeeze is February 1st 2021.
When the world in my opinion changed, when the Silver Bullet was
fired, you have 100 million ounces drain from the registered category
here, since then.
And I put a little line here, visually at 100 million.
This is how much that has been drained from this red line, 20 as how
much silver has been drained since silver, squeeze.
And now we're 52 million.
We've drained about Seventy percent of the total and it's not that
long.
Before we get to record lows at this rate, it should be in a month or
two.
I don't know exactly the rate we're going to go but as long as silver
stays low, I know we don't like silver being low, it makes us feel
bad, but that is the way to drain these stockpiles.
And once they are drained, then the price can move up.
So as much as we hate gold and silver spot price, paper price being
down, but the spot price being down is what is going to drain this
stockpile.
So as much as Hurts.
It is good in the medium to long term and I'm not going to say long
term because this is not going to last that much longer we're headed
down in these stockpiles and they're going to go to record lows in my
opinion very soon.
And now here are premiums you see here percentage premium on junk
silver.
The reason I pick junk silver is because the supply is constant and is
true more trustworthy.
In terms of stackers, you want to use these coins to buy.
Emergency supplies in a currency.
Collapse junk, silver will be More recognizable than bullion, from
whatever company in, even though that will probably be very good, it
might not be as good or as accepted as junk premiums, as sorry as junk
silver, which should have a little bit of a higher premium in an
emergency situation because it's recognized as US Government minted.
We're at 37.2% here the only time this diagonal sorry this horizontal
red line here.
The only time premiums are ever higher on junk silver was at the peak
of the 2008, Current financial crisis.
When he 40%.
They haven't gotten close to that.
Until now, these were the previous peaks of premiums.
They don't.
Last long which means this premiums going to last long either, which
means the spot price is going to head up very soon.
Hopefully, not before the entire Cole makes is drained, but, you know,
we'll see.
So I drew another horizontal line here at the current price.
Every time, there were Peak premiums.
We see here in 2020 Mars 2020, word premiums reached a peak of 35
percent.
That is when silver like Laps to about $11 in the spot price.
The spot was lower than it is now.
And here to in 2016, the spot place is much lower than it is now.
And here in 2013, the spot price was still lower than it is now.
And here in 2018, it was much lower than is now this is the highest
spot price for the current premium which means that physical silver
keeps heading higher despite what we see on the spot price and that is
the place to be for the end game.
I know it's painful.
We want to see the spot price move and it will
Just hang on.
As for what is happening.
In the current delivery, we have four days to delivery.
Deliveries start at the end of the day on August 30th, that's for
trading days or three changes from after watching this on Friday,
making this on Thursday.
So, it's for we have 30 2167 contracts, still open the September
contract, 10400 three contracts worth of registered Supply are
available with four days to delivering.
I don't get too excited about the actual number of deliveries that
just means, warrants are changing hands.
It does not.
Necessarily mean that those warrants are being liquidated, which is
what you want to see, which is what happens when you have registered
Supply and moving to eligible or registered to sell on the comex or on
the Futures Market moves to eligible storage for someone to use,
however, he sees fit.
So, as these warrants change hands and about 4 days, we are hoping to
see a lot more of that registered Supply come off and go into storage,
which means it will not be put back for sale in a significant amount
of time because otherwise, why would somebody liquidated warrant if he
intends to sell That warrants soon after he liquidates it, people
liquidate warrants and move, silver from registered to eligible to
keep it for a long time.
Maybe to sell it back as a Futures, much much later, or maybe to use
it for bullying markets or whatever industrial purposes it is unclear
because we do not know that information.
And the final thing I wanted to get into here is real deflation.
This means the quarterly average annualized money supply.
The amount of dollars in the bank system.
Not Talking about consumer prices here.
I'm talking about the actual money supply.
It is falling at a rate, the fastest rate since, and I did this
reaches all the way back to 1993, which was also a deflationary
period.
However, the internet was becoming more attractive and more famous or
more used back then which was really drastically lowering prices back.
Then, that was when Amazon was founded in all this thing.
So, prices really started to get lower it.
So deflation didn't really impact the economy as much back then
because productivity was Skyrocketing.
However, now we have the highest rate of deflation since 1993.
And you see what happened here in 2008?
And I've shown this before, when the money supply growth rate fell
below zero in late 2008, which led to the crash which led to QE 1 and
2 here.
And you see that big jump where my arrow is and obviously this is the
covid jumped from about seven percent growth to about 50 percent
growth in two months, which was insane.
And now we are below zero.
We are about But -2.6, 2% quarterly, average annualized.
This is going to lead to some sort of equities crash in the next few
months.
Exactly.
When I don't know, there is always a lag but it's coming unless these
data are completely fraudulent, which there is a small possibility,
but I doubt it.
And once the crash does occur, the FED will likely pivots despite all
of the gobbledygook nonsenses spouting today.
It is scared, it is terrified and it has only one thing to do and that
Print money, and that's what it will do.
When the crunch comes and it is coming.
So Silverbacks, calm down.
The reinforcements are coming.
That's why these stockpiles are draining.
It doesn't look like it in the spot price, because there's still a lot
of Supply left in these big stockpiles.
But they are getting smaller.
Meanwhile, the next liquidity crunch, the next financial crisis is
just ahead exactly how long, I don't know, but I see it in the
monetary numbers.
It is coming in the Final pivot is coming and that is when the dollar
will God willing finally collapse.