Transcription
The trend is well underway, um, of gold and silver being, or more so gold than silver. I mean, on the state level, there is silver too, but really on the state and on a broader level, maybe even globally, gold I think is on its way to be reintegrated into the monetary system.
There are 11 states right now that recognize gold as and silver as US currency, making them legal tender. That's a big deal. And and also you have contract law, which makes contracts legally enforceable in those states that that would settle in in gold and silver. There are others, uh, maybe two times that, over 20 more that have it either in process or in front of their legislature. Obviously, Florida is one that just uh, um, signed this this, or it's I believe just has to be signed by DeSantis. It's all all but done. You got Missouri, you have Oklahoma, you have Texas, uh, Utah, Wyoming, Alaska. These states are are doing just that. They're allowing their constituents' exodus from the the fiscal irresponsible uh irresponsibility and the and the and the silly monetary policy where, you know, just since January, the dollar has lost 9%.
Well, since January, gold is up almost, you know, it's up 500 bucks or so. So, it's up about 20% while the dollar is down nine for a net 30%. Um, and and that's just in a very short period of time. So, yeah, I think it's fantastic that these states are recognizing the fact that holding your wealth in dollars is a recipe for going broke. Um, let alone the risks that it it poses within the banking system. But um, let's hope that this is a trend that continues and we start to see more and more states sign on to allowing their constituents to um to settle in gold and silver.
Now, you know, most of these states, it's not mandatory. Uh, the the legislation reads, "If a purveyor, a shopkeeper would like to accept gold and silver and you you're willing to to trade with it, why then it it can be legal tender." So you can't make someone do it. But look, if you would have asked me this years ago, I said there's not a chance in in Haiti that we will ever see gold and silver being reintroduced at the state level as legal tender. Maybe the federal level, maybe in my wildest dreams, but it's interesting that the states are are taking the lead here. And and when you look at the current administration, who undoubtedly understands gold with the massive imports, which we can talk about in a moment. Um, deliveries on COMEX really is what I want to talk about because there's an awful lot of them, with, you know, we've talked about Scott Bent, we've talked about the the tweet that Trump made on on Easter Sunday. We've talked about Judy Shelton. I mean, there's so much going on with gold in particular and and I think the current administration understands it. So, if we've ever had a chance of seeing this expand just past 11 states and and maybe even something on a federal level, this is this is this is the time.
So, I think what can people do? Well, if any of the states that have this either in committee or in front of the legislature, um, people are living in those states, obviously reach out to your representative and bombard them with emails. And you know, it's silly that the Constitution says money is specie, gold or silver, and it's treason to issue anything that isn't and illegal. Um, that we've gone that far away, you know. Um, so yeah, it's it it gives me hope and uh, seeing Florida, my home state here, recognize that overwhelmingly um is really cool. So, I haven't tried to spend uh old coins anywhere yet, but you never know. Maybe it becomes commonplace as time goes by. You think about Wells Fargo. I mean, this was a bank that was more or less founded on the gold rush. Uh, and yet they're so far away, except for suppressing it on COMEX, from understanding what gold really is, at least on a on a regional level, on a local level. Um, you know, hopefully we we we see things come at least some semblance of of full circle and and you know, things are getting very interesting too for the reason to hold gold and silver.
I mean, you know, the the Fed who's supposed to be doing quantitative tightening, stealthily bought 48 billion dollar worth of treasuries in the past couple of days. Um, you know, well, actually even more than that. Take that back. 34.8 8 billion uh in 10-year bonds over two days and 14 billion, actually it is, I was right, it's 30, it's actually almost $70 billion that they put into 10-year and three-year treasuries over the past 3 4 days, so you know what, is there no demand despite these treasuries earning over 4%? um, you know, is there no demand for for our treasury? And this is a pathway to much higher inflation and maybe this is why Powell talked about potentially having to abandon the dual mandate. In other words, let inflation go because we can't we can't do both. And so, you know, when you look at a dollar that's fallen 9% since January, this will accelerate it when you see um, you know, the Fed coming in and and very quietly, not really announcing anything, but quietly buying up what appears to be, you know, the mid portion of the Treasury market, the three and the 10-year. Um, you know, it's all very contrived, but it's also very inflationary. Just like go back to 1971 when Nixon closed the gold window. Gold was 35 bucks an ounce. I mean, it's lost 967% of its value in my lifetime. I was born in 1970. So, you know, yeah, it lost 9% since January. It lost 96 or 7% since 1971. You can go back through all the time. Go back to 33 and do it. Go back to 1960 and do it. You'll find comparisons where, you know, most of the time gold maintains your standard of living and sometimes it even accentuates it. But to to keep all of your wealth in dollars right now is as silly as can be. It's as dumb as a mud wall. It's a guaranteed recipe for going broke. And and I think as Rick Rule often says, if you are not a contrarian, you're destined to be a victim.
And it won't be easy. The volatility that we've seen lately is fantastic. I mean, up 50, down 50, up 100, down 75, up 120, down 200. I mean, it's crazy. So, it won't be easy, but I I do think that kind of signifies maybe approaching some sort of a of a resolution in this system. Maybe it be a reset or a blowoff or a correction or whatever the heck it means. But when we see the Fed having to come in and and buy up that much in the way of of treasuries, it signals that the demand for our debt is waning. At the same time, you're seeing, you know, much of the world, the the Asian countries along with what used to be adversaries now finding a path to being allies. Japan and South Korea and China, they're all joining together, pushing back against the, you know, the tariffs and and um and really the hegemony and settling transactions across new technology, the bridge technology, and China opening up vaults all around the world. Just opened one in Saudi Arabia. They want to expand it and open to internationalize the yuan. People said that would never happen and settle the imbalances in gold. That's why they want to open up vaults in other parts of the world. At the same time, they say, by the way, uh, that technology will be open to non-BRICS nations as well. This is the M-Bridge technology. So the whole thing is beginning to accelerate. And that's why I wonder, you know, you look at all of the moves that Trump has made since he's been in office and and they have not been friendly to the dollar. So, you have to wonder to yourself, you know, I mean, is it is it missteps or is it coordinated? Do they understand this as part of the part of the plan? I don't know. But it won't be easy and it's going to be volatile and one day you'll feel like a hero, the next day is zero. And you know, no one ever said uh investing would be easy or protecting your money. In fact, you know, I my grandfather always used to say to me, "Making money is easy, Andy. Saving it's not. Keeping it's not." And it never made sense to me. But, you know, it does now. I mean, where do you feel safe? Your banks with bail-in legislation, uh, the market with uh, you know, the great taking and the change of the universal commercial code. Um, you know, where do cryptos is that safe? Is it safe in metals? Who knows where is it safe? What's it what's the easy path? There is none.
So, um, I think that banking on not only 5,000 years worth of historic wealth, but also watching what the biggest money in the world is doing. And the deliveries on COMEX I think are indicative of the biggest money in the world tells me that uh for me I feel comfortable not being the poster child for finance 101 and being a little bit heavier than most would consider prudent in in gold and silver, which to me is not an investment. It's money. It's wealth. It's interesting 'cause the banks are selling silver. I'll talk about that in a moment, but it appears as though they're buying gold. The May COMEX contract, I think the first day of delivery had the second highest number of contracts that said we'll stand for delivery, 9,36. And since then, the deliveries that were written subsequent um are almost at 16,000. It's it's an all-time record. Um, and so, you know, you're talking 16,000 times 100 ounces of gold that stood for delivery here in the May contract. Um, in fact, it's the most number of contracts that have been written after the first day's notice than in any other COMEX contract in history. Usually, the COMEX contracts that are written after the first delivery uh day notice are standing for delivery as well. And it's it's this is a full-blown run on physical metal and you know, does it leave the COMEX or does it not need to leave the COMEX because it's the banks backing those positions, whoever is doing this and standing for delivery and and I would assume it's the banks in this case is demanding real gold, no longer the paper IOU, and the trust in this entire system I believe is breaking down. At at the same time, you're seeing other establishments, namely the Shanghai exchange and others in in um uh UAE, soon to be the BRICS metals exchange, Moscow exchange. These are gaining notoriety. They are gaining credibility. Um, in 2002 or three or four, when it was that the Shanghai exchange was built, no one gave it any second thought. And now it's it's fast approaching. One of the most, I think maybe even the price setting kind of right now for gold. It is kind of setting the price for gold in my mind. Um, and you can see what happens when they were on vacation for five days and they knock the hell out of it and then bang they open back up and it's up 200 bucks. It just seems to me that the physical demand coming out of Shanghai is slowly taking place for the