The Big SILVER Short "Once This Breaches $50 It's Off to the Stratosphere" - Mike Maloney

Summary

This video script highlights the impending explosive rise in gold and silver prices due to market dynamics, including a squeeze on shorts, massive short positions, and rising demand. It discusses the Federal Reserve's role in devaluing the U.S. dollar, the historical context of gold and silver markets, and the risks of fractional reserve schemes. The script also examines the impact of global financial systems, such as the Federal Reserve's gold certificates and the London Gold Pool. The narrator predicts that the coming economic reset will see precious metals soar in value, with gold potentially reaching $4,000 or higher, as major institutions fail to predict the true value of these assets.

Takeaways

• 😀 The short squeeze in the market is creating upward pressure on gold and silver prices as people who borrowed these assets are being forced to buy them back.
• 😀 The Federal Reserve's actions have led to a drastic decline in the US dollar's purchasing power, with gold prices reflecting this loss.
• 😀 The price of gold has skyrocketed from $35 per ounce to $3,000 per ounce, representing a 99.31% loss in the dollar's purchasing power.
• 😀 Silver has reached all-time highs in other currencies and is poised to make new highs in US dollars as the dollar index continues to decline.
• 😀 The silver market is setting up for a significant breakout, with long-term patterns like the cup and handle formation indicating potential explosive growth.
• 😀 The short positions in silver by major traders are so massive that the global short positions are almost half a year's production, creating a potential squeeze.
• 😀 The fractional reserve system used by major traders and exchanges is being exposed, with fraudulent short selling of precious metals like gold and silver.
• 😀 Sprout Silver Fund (PSLV) is being massively shorted, preventing it from standing for delivery and further affecting the price of silver.
• 😀 The US Federal Reserve is expected to issue new gold certificates, but this may quickly become outdated due to rapidly rising gold prices.
• 😀 There is a growing consensus that gold prices could exceed $4,000 per ounce as part of a broader reset in the global financial system, with liquidity injections expected.
• 😀 Major institutions, including Goldman Sachs, consistently mispredict the price of gold, showing how the market's actual movements can defy expert analysis.

Q & A

What is the significance of a short squeeze in the context of gold and silver prices?

A short squeeze occurs when those who have sold short (borrowed and sold assets they don't own) are forced to buy back their positions as the price rises. This upward pressure on the price can lead to an explosive increase in the price of gold and silver, as there are more buyers than sellers.

How has the Federal Reserve contributed to the decline in the value of the US dollar?

The Federal Reserve has contributed to the decline of the US dollar by engaging in policies that have led to inflation and a decrease in the dollar’s purchasing power. This has resulted in gold increasing in value, going from about $35 an ounce to $3,000 an ounce.

What does the fall in purchasing power of the US dollar indicate about the economy?

The fall in purchasing power of the US dollar, which has decreased by over 99%, indicates a significant erosion in its value. It shows that the dollar is losing its ability to buy goods and services, highlighting inflationary pressures and a weakening currency.

Why is silver seen as a key investment despite its current high prices?

Silver is seen as a key investment because it is expected to rise further, especially as global demand for precious metals increases. It has already reached an all-time high in some currencies like the Australian dollar, and when the dollar index falls, silver is expected to surpass $50 per ounce.

What role do the large bullion banks play in the silver market?

Large bullion banks play a crucial role in the silver market by holding both short and long positions. The massive short positions they hold create a significant risk, as these shorts will eventually need to be covered, which could lead to an upward pressure on silver prices.

What is the cup and handle pattern mentioned in relation to silver's price movement?

The cup and handle pattern is a technical chart pattern that suggests a period of consolidation followed by a breakout. In the case of silver, this pattern, which began in 1980, indicates that once silver breaks through the $50 mark, it could experience a sharp price increase.

How does the shorting of PSLV affect the silver market?

Shorting the PSLV (a physical silver fund) affects the market by preventing the fund from acquiring silver bars, as the fund must buy silver on the open market when shares are purchased. This artificially suppresses the price of silver, as the fund is not able to stand for delivery or withdraw silver from the market.

What is the historical context of gold manipulation in the US and the UK?

Historically, there have been attempts to manipulate the price of gold, such as the London Gold Pool after the US Civil War. Much of the gold from Fort Knox was used as collateral in the late 1960s, and the Bank of England has delayed gold deliveries due to the vast quantities involved and potential exposure of manipulation schemes.

What impact would the potential delisting of gold and silver futures have on the market?

The delisting of gold and silver futures could signal a deeper crisis within the commodities market, as it may expose fraudulent practices like fractional reserve banking. This could lead to greater instability in gold and silver prices, ultimately benefiting precious metal investors as they become safer stores of value.

What is the predicted future price of gold according to some financial institutions?

Some financial institutions predict that gold could rise to over $4,000 an ounce due to an inevitable liquidity event, potentially as high as $33,000 per ounce in the long term. The rise is expected to be driven by economic crises and the debasement of fiat currencies.