When you have a Ponzi scheme, whether in the case of Madoff or within
the case of precious metals or in a manipulator Market, you typically
need the revelation of a big fraud Scandal that will Galvanize a whole
host of Market participants to to basically alter their practices and
that you get a a changed market and the changed outcome.
If there is a lot less physical supplies, the physical Supply in the
physical Market that obviously will have implications for either in
terms of what would happen in London.
What would happen in New York with the climax excetera?
So, I think this issue is fundamentally a potential revolution in the
way people should think about the market.
So
A lot of analysts have it have a very basic understanding of how this
process works.
Central Bank prints money devalues.
The currency causes inflation.
People try to seek Refuge from inflation by precious metals that
crease investment demand.
And that investment demand will ultimately lead to a rise in price.
Now, for example, the salt Institute and the last owner the last up
think month said that 2021 was a record for investment demand and they
are foreshadowing that
20:22 will be a record for investor Global investment demand in the
history of modern day silver.
And yet they are still forecasting, the price to go lower rather than
higher.
So that so that that makes no sense.
So I've started to think that the, if any analyst thinks that demand
is driving the market.
I don't think that's true.
And I think I'm going to come to the conclusion, that it's actually
investment Supply that that, that really moves.
Market, so obviously, if you have infinite amount of not only just
papers over but, you know, clearly, you know, the illusion of physical
silver that doesn't exist.
If you can just create that through fractional Reserve schemes and
fraud.
And in terms of recorders Etc.
Well, I mean that ultimately is going to influence the market much
more.
So for example, you could have an extra five billion dollars of new
investment, demand coming in.
But if there's no physical, if the investor think that
it's backed by physical.
But in reality, there's no physical, or investment demand, has
basically, in an immaterial effect on the market.
And that's why I think what we're going to see as we go forward.
As more issues come out in the physical Market.
We're going to learn that, it's actually investment Supply, that
actually drives the market more than investment demand.
And it's really the transparency and truth of the physical Market.
That's ultimately going to be the, you know, the determining Factor as
to what sort of what
Sort of price point we get and what's the rate of return?
That, that that investment?
We'll see in terms of whether it's a physical gold, silver in terms of
mining stocks.
Now, I have to say and to be quite honest with this.
I mean, this causes a dilemma for for both of you and me.
So you were four miles Franklin, I work with as good as gold Australia
and part of our remuneration that we own personally is by
facilitating, the purchasing of precious metals and so there is a
natural
All incentive for analyst who are linked to bullying dealerships and a
lot of the YouTube commentators.
Do get some rumination from bullying dealerships and one form or
another or from one accompanies.
We have a natural Financial incentive to promote demand because that's
how we personally get paid, but in reality and, and so and so, you
know, 12 months ago.
I really believed and it obviously has an economist.
It makes sense that that more invest in demands can lead to higher
price.
I mean, I'm
That you're in a free and fair market that that's that's quite
plausible and it's quite reasonable.
But given that we talked about it, a civilian manipulated Market, even
though it's necessarily not in my personal financial interest to, to
basically say this, I think investment demand is not really what's
driving the market.
And even if we got more retail investors to buy more gold and silver.
I think that's immaterial what we'll use material is Investments.
Apply the rule state of the physical market in terms of how many
ounces actually exist and actually getting more truth and transparency
right throughout the supply chain.
So that we clearly know exactly, you know, in terms of what's out
there and I think Damian Morgan has said that in his view, there are I
mean, sometimes it could be 50 claims hundred clams per ounce of in
terms of rule, in terms of real silver that that, that that exists in
the global market.
And so it's all about
Exposing to the eyes of investors that what they think they own, they
don't own and that they should actually re adjust their investment
decision so that they can actually get physical, silver, or physical
gold that they know for sure, that that it actually exists.
And that's why to my view is that these problems have been systemic.
They have been happening for quite a while.
So why are they happening now?
It is because there is more focus on.
Precious metals because of the macroeconomic environment.
So I mean obviously, as you said at the beginning of the interview, a
lot more central banks are repatriated in their gold, they're buying
more and obviously, you know, that purchasing process and then
repatriation process is in and of itself, putting more pressure on on,
on the physical Market, you know, it's kind of what happened with
Bernie Madoff.
I mean, once Redemption started to happen, that's when he's 65
billion.
Dollar Ponzi, scheme started to
Hot and then It ultimately collapse.
Oh, so we're seeing you know more like a lot more pressure on the
physical market and obviously, you know fraud practices that have been
happening for quite a while and remember Madoff was happy his Ponzi
scheme was, you know, maybe two or three decades in the making, some
of these problems are stubborn, come to the surface because there's a
lot more activity in the market and, and things that were that were
able to be covered up in normal times.
And now being exposed in extraordinary times.
Like we are seeing now with, you know, in terms of higher levels of
inflation.
So my view is that, if if we have the status quo, the system can go on
for quite a while longer.
So, but obviously, at what I think we need to see is some sort of, in
terms of a Black Swan event, where some sort of Revelation, comes out
somewhere across the world.
Where, where you see?
Big scandal in the physical market and that then starts to lead to a
to a flow-on effect in terms of and you know, whether it's an
Auditors, improving their standards or investors all calling in their
silver or gold because they don't trust the counterparty or the
bullion dealer or whoever or you start to see, you know, other moves
by in terms of Market participants.
So I think generally speaking when you have a Ponzi scheme whether
in the case of Madoff or within the case of precious metals or and a
manipulator Market, you typically need the revelation of a big fraud
Scandal that would actually, you know, that will Galvanize a whole
host of Market participants to, to basically alter their practices and
that you get a, a changed market and the changed our come.
I do think that cryptocurrencies are part of this, you know, it's a
phenomena.
That has allowed millions of investors to to turn their eye away from
precious metals and to focus on something completely different and the
question becomes tan.
The crypto space is that is that just a natural consequence of a new
invention by cryptocurrencies and Bitcoin, or was this all good or was
this purposely designed to create this.
And so, I'll be doing a show with Martin North relatively.
In but one thing and I'm not sure about American crypto investors, but
last year, I did two seminars in Australia and half the audience.
On each occasion were crippled and verses and ask them.
One question.
Who is Satoshi Nakamoto?
And everyone says, we don't know who that is and I said to them.
Are you aware that the National Security Agency in America?
Wrote a white paper in the mid-90s about cryptology cryptocurrency is
and the modern.
Of what we understand, cryptocurrencies to be, and only like, in a
both cases.
They were talking about maybe, 50 people may be only one person knew
that the NSA has had a multi-decade involvement in the development of
cryptocurrencies.
So, so now, the reason why I think this is significant is that I have
the thesis and the and maybe your viewers would disagree with this
particularly given that I'm Australian and you guys are marketed.
That's
Toshi Nakamoto, May will be the American government.
Now, if that is the case, then the question is, well, what what's the
whole purpose of Bitcoin and cryptocurrencies, you know what has been
the impact on the economy and at various asset classes?
And and I think that so, I mean, look at one of the things I've heard
Peter Schiff on his podcast, say repeatedly, is that cryptocurrency
that there's probably
I think this more than 10,000 cryptocurrencies around the world.
So people just create these new project and there's a new
cryptocurrency.
So but but what is the real effect of this phenomena?
It's the same as fiat.
Currency.
So fiat, currency, just keep on Printing and printing printing.
Now, even though the Bitcoin has a limited number of in terms of
Bitcoins, which is I think 21 million, you can just create any type of
new cryptocurrency and their so-called old coins and you just have
this phenomena.
Of of the, in terms of expanding, in terms of this asset class.
And so what that has done, particularly for a lot of Millennials, I
can say, in the case of Australia is about 20% of the string and
people have invested in cryptocurrencies.
And why not?
Because they actually understand what this is from a technical crypto
from a technical cryptology point of view, or they don't understand
the history of cryptocurrencies.
Although I have no idea who Satoshi Nakamoto is.
They just see going up and then
I want to make some money and and so and so I think to come back to
your question, cryptocurrencies has played an instrumental role since
the global financial crisis to distract people away from the Central
Bank activities to distract away from the inflation.
Now, you can't ignore the inflation now because it's so obvious, but,
but obviously cryptocurrencies is played a role to suck.
A lot of that new money that has come into the system away from
precious metals into these cryptocurrencies, and obviously, we've seen
cryptos crash at the
Moment.
So it'll be really interesting to see that if the Durham power, and
the US Federal Reserve, if they do pivot, if they stop tightening
monetary policy, if we go back to a new loosen Campaign, Will these
Millennials go back into cryptocurrencies or will they realize that
that there is a me.
It's just a another Fiat phenomena, and they need to actually get
something real and tangible, and they ignore crypto and they come back
to the traditional forms of money, gold and silver.
So so that
That that that's a really interesting thing.
So so I do think there's a really big story about cryptocurrencies and
what what role has it played in the end of the precious metal space
over the last maybe 12, 13 years ever since it was invented.