GOLD then SILVER: Huge Multiplier Effect as Paper Leverage Fails

The actual amount of paper gold options, futures, and derivatives are still in the triple digits in 2022.

Today's literal price of gold today is still often determined by the front-month COMEX gold futures contract. The signal that the current polite gold price discovery system is beginning to fall apart as more and more physical gold bullion buyers around the world demand direct delivery will be an exponential move in the spot price of gold and difficulty in finding physical gold bullion in deliverable size priced anywhere reasonable near the then spot gold price.

The nation of India bought more gold bullion tonnes this week and has increased its physical gold reserves by +27% in the last 2 years.

Egypt added 44 metric tonnes of gold bullion recently.

Turkey has also been a big official gold bullion buyer thus far in 2022.

This week's holiday-shortened trading week for silver and gold spot prices was positive in price action.

The silver spot price appears to be close to $25.50 oz.

The gold spot price will likely finish this week above $1970 oz.

The gold-silver ratio tightened towards 77 for this holiday-shortened trading week.

This week another increase was admitted by the US government's Bureau of Labor and Statistics.

Claiming that US price inflation has risen over 8.5% over the past year while ignoring the fact that 1/3rd of their inflation index is enormously understating rising US rents up 17% y/y and US home prices up 19% over the past year.

Actual price inflation using pre-1980 measurement methods are easily in the mid-teens now.

Basic food staples are certainly using price increases in teens over the last 12 months.

Negative real interest rates have never been this profoundly negative throughout this entire full fiat currency era, signaling things are very sick with this fiat financial system.

Given massive price inflation growing globally, the bond market thus far in 2022 has had one of its worst performances to kick off a year on record.

The ongoing drain of underlying COMEX #Silver bullion holdings continues with the silver spot price in a nearly two-year sideways price consolidation.

As the spot gold price appears poised to make a run at $2,000 oz and eventual new record price highs to come, the silver spot price has a long way to go before considering it relatively expensive.

If you are looking for an inexpensive store of value, silver remains perhaps the best long-term bet.

As the prices of virtually all commodities and things we need for our modern way of life have increased over the past year, the spot silver market has consolidated sideways, priced at a relative discount still today.

We again have another base metal traded on the London Metals Exchange, threatening to be short squeezed as inventory levels are running out. It appears zinc is now readying to do an LME nickel price ramp.

While about 70% of all new #Silver ore mined comes as a byproduct from Zinc, Copper, & Gold mining.

All 3 of the aforementioned latter metals are now trading near record high price levels.

Here is the over fifty-year price for zinc.

Over five decades of copper price.

And the full fiat currency fiat Federal Reserve note price for gold as well.

All at or near new nominal record price high levels.

The relatively depressed silver spot price is still near -50% below its seemingly ancient $50 oz record price high.

This is typical of secular bullion bull markets in gold and silver. Gold leads in the eventual mania phase, and only later does silver climb an exponential price wall and briefly outperform gold.

It's hard to imagine some point sooner than later; we will see a similar situation where $25 oz spot silver will be sorely missed by those who missed taking advantage of its relatively low price point today versus other recently ramping commodity prices points.

That is all for this week's SD Bullion market update.

Fred Lane: why people are looking at gold as a safe haven

Royalty-Free Music by Scott Buckley

We want to wish everyone a safe and happy holiday weekend.

And as always, take great care of yourselves and those you love.

[dexterdave]

Thank you James. I always look forward to your videos and analysis of precious metals. When the world is this uncertain, it's my opinion that metals commodities is the place to be.

[BatmanBoss]

Maria talking Gold wearing a completely golden outfit? Well played Maria! Go Gold!

[butterfacemcgillicutty]

I don't understand this "paper" stuff at all. All I know is I slowly stack silver and glad I hold it!

[vuduyrd]

and when the US Dollar hyperinflates, I doubt it that Silver will be in tripple digits, more like five if you ask me.

[misty]

Silver has moved so slowly for a the last 2 yeaes. Let's hope probabilities strike and silver catches up to other commodities. $50 silver by end of 2023 would be nice.

[ultrapurebloodstacker]

theres 20x gold paper and 200x silver paper AND silver contracts are 5, 000 ounces EACH.

[Highlineheros]

Except silver has a 20% premium now to get phy I have been scooping it up for years .70 over spot for rounds and libertads. Silver is literally 20% more than advertised.

The only other time I saw silver with a crazy premium was the bottom at $9 ish in 08 there was almost a $10 premium.

Thanks for all the great content James!

[bluescreen]

The real price of silver is not even related to the so called spot [rice. You simply cannot buy silver for anything close t spot price. Silver eagles are around $40 each.

[michaelwaters]

James's quiet voice and measured approach is to be applauded when there is so much talk about price suppression .Take note the likes of Gerald Celente !

[nabzy]

People are ridiculous. If you asked 100 people if they wish they'd gotten in, EARLY, on: (name anything that's 100x'd - random crypto, game stop, any huge tech company, etc.) and 100 of them would say "YES!". Tell them about silver and gold and they're like, 'meh'. This is EXACTLY how it happens. Complacency by a vast majority and, then, when they finally 'get it' and want in, the price is skyrocketing. I've always said, I'd rather be years early than 1 day late.

[FirewoodStackingRockstar]

Keep it as low as you can for as long as you can BIG BROTHER! Then when there is none to be had we name our price.

[robertroman]

Appreciate not just the knowledge SD provide, well explained and awsome content! Thank you and Happy Easter

[mydogma]

I'm ready for the multipler... happy stacking

[danski]

Hi all. Thanks James.
Enjoy the ride.

[bubba]

I bought a 100z silver bar from SD: hope to trade for vintage car in a year or two

[standardgigachad]

Paper to gold ratio at time of this comment, 110.17:1

[HeyNow]

Thank you keep stacking everyone. God Bless You All keep strong we will make it threw 🙏

[Eric]

US Debt clock openly reports Gold leveraged at 110.18:1 and Silver at 331.87:1

[maxcactus]

Thank you SD Bullion for the excellent content and for keeping us motivated and stacking!!

[MrMarcol]

Silver & gold in your own possession! ❤️✌️