"Leaked Future of Gold & Silver is Scary" - Rafi Farber | Gold Silver Price

Summary

The transcript discusses the looming possibility of a dollar collapse and the critical importance of holding gold and silver as financial safeguards. It distinguishes between investment demand, driven by anticipation of economic instability, and monetary demand, which surges during crises when people seek these metals for transactions. Historical patterns suggest that during monetary panics, the gold-to-silver ratio may drop dramatically. The speaker emphasizes that current inflation is a monetary issue, not merely a goods issue, urging preparedness for an impending economic crisis as central banks face pressure to reverse policies and print more money.

Takeaways

• 📈 Monetary demand for silver is expected to rise as a response to a potential dollar collapse, distinct from investment demand which is based on anticipating this scenario.
• 💰 Historical ratios, such as gold-to-silver falling to 15:1 during past monetary crises, suggest similar patterns may emerge again, indicating a fundamental shift in demand.
• ⚖️ The current inflationary environment is characterized by basic necessities increasing in price much faster than luxury items, pointing to deeper economic issues.
• 🏦 Central banks are likely to reverse their policies in the face of rising inflation and economic pressure, prompting a renewed interest in precious metals.
• 📉 The collapse of centralized silver stockpiles (like those in COMEX and LBMA) could occur if physical demand outpaces available supplies, leading to significant market disruption.
• 🪙 Gold and silver are emphasized as true forms of money, in contrast to baskets of commodities, which have historically failed as stable currencies.
• 🌍 The BRICS nations may eventually adopt gold and silver backing for their currencies, but skepticism remains regarding their fiscal responsibility.
• 📊 The speaker urges individuals to prepare for potential economic upheaval by securing gold and silver for survival in the aftermath of a dollar collapse.
• 🔄 Economic systems operate on exponential growth patterns, suggesting that current inflationary trends are unsustainable and will lead to a critical point.
• ⏳ While the timeline for a monetary crisis is uncertain, the speaker believes it is imminent given the current trajectory of financial systems.

Q & A

What is the speaker's main concern regarding the dollar?

The speaker is primarily concerned about an imminent dollar collapse, which they believe could happen within the year.

How does the speaker differentiate between investment demand and monetary demand?

Investment demand refers to buying silver in anticipation of future monetary value, while monetary demand is the urgent need for silver as a currency during a monetary crisis.

What historical events does the speaker reference to support their predictions?

The speaker references historical instances in 1918 and 1980 when the gold-silver ratio fell to 15:1 during monetary crises.

What does the speaker suggest is causing the current inflation?

The speaker argues that the current inflation is primarily a money problem, where basic necessities are rising faster than luxury items.

What role do central banks play in the anticipated financial crisis?

The speaker expects that central banks will eventually reverse their policies and begin printing money again in response to economic pressures, which will drive demand for precious metals.

What potential market shift does the speaker predict?

The speaker predicts a shift from paper silver markets to physical silver transactions, especially if supplies in registered markets run out.

What does the speaker say about the future role of gold and silver?

The speaker asserts that gold and silver will regain their roles as money, arguing that any new currency must be backed by these precious metals to replace the dollar.

What is the speaker's view on the BRICS countries adopting gold and silver backing?

The speaker believes BRICS countries will follow market trends rather than lead them in adopting gold and silver backing for their currencies.

What advice does the speaker give regarding preparation for the dollar collapse?

The speaker advises individuals to prepare by acquiring enough gold and silver to survive the immediate aftermath of a dollar collapse.

How does the speaker describe the nature of inflationary systems?

The speaker describes inflationary systems as exponential, indicating that they continually rise until reaching a critical point, leading to a rapid escalation.

Outlines

00:00

🪙 Preparing for Economic Collapse: The Role of Gold and Silver

This segment discusses the potential for a dollar collapse and the necessity of having gold and silver as a hedge against the immediate aftermath. The speaker distinguishes between investment demand—where individuals stack silver in anticipation of monetary issues—and monetary demand, which reflects a broader, urgent need for currency in times of crisis. Historical instances of the gold-to-silver ratio during monetary panics are noted, suggesting a pattern where silver becomes more sought after when people cannot afford gold. The speaker emphasizes that the current inflationary environment is indicative of a deeper financial crisis, where essential goods rise in price more rapidly than luxuries. There is a prediction of central banks eventually reversing their monetary policies, leading to increased pressure on precious metals as investors seek safety. The discussion includes the mechanics of futures markets and the challenges faced by banks in managing supplies of silver and gold, hinting at an inevitable shift toward physical assets as traditional financial systems falter.

Keywords

💡Monetary Demand

Monetary demand refers to the need for a currency that arises from its fundamental role in facilitating transactions within an economy. In the context of the video, it is contrasted with investment demand, emphasizing that monetary demand is a more crucial driver of the economy, as it reflects the collective need for a stable medium of exchange. The speaker argues that during a monetary crisis, this demand for money (gold and silver) increases significantly, as people seek to use these metals for transactions when confidence in fiat currency wanes.

💡Investment Demand

Investment demand pertains to the desire to acquire assets (like silver or gold) in anticipation of future value appreciation or economic turmoil. This concept is highlighted in the video as a motivating factor for silver stackers, who buy silver not only as an investment but as a hedge against potential monetary collapse. The speaker suggests that while investment demand exists, it is the impending monetary demand that will ultimately dictate market behavior in a crisis.

💡Dollar Collapse

The dollar collapse refers to a significant decline in the value of the U.S. dollar, leading to economic instability and potential hyperinflation. The speaker warns that this event could occur imminently, urging listeners to prepare by acquiring gold and silver. The script suggests that such a collapse would trigger a surge in monetary demand for precious metals, as people lose faith in paper currency.

💡Gold-to-Silver Ratio

The gold-to-silver ratio is a measure of how many ounces of silver are needed to purchase one ounce of gold. In the video, the speaker notes that during times of monetary panic, this ratio typically falls to about 15:1, indicating a shift in demand toward silver due to its relative affordability. This historical context underscores the importance of silver as a protective asset in times of economic crisis.

💡Hyperinflation

Hyperinflation is an extremely rapid or out-of-control inflation, often exceeding 50% per month, resulting in a severe decrease in the currency's value. The video discusses how hyperinflation leads to basic necessities becoming increasingly unaffordable, while luxury items do not experience similar price increases. This phenomenon is framed as a central problem in understanding the current economic landscape, emphasizing the urgency for individuals to secure their wealth in tangible assets.

💡Central Banks

Central banks are national financial institutions responsible for managing a country’s currency, money supply, and interest rates. The speaker argues that central banks, facing pressure from economic realities, will likely revert to printing money to stimulate the economy, especially during a crisis. This reliance on monetary easing is depicted as a catalyst for increased demand for precious metals, as people seek stability amidst a collapsing financial system.

💡Market Dynamics

Market dynamics refer to the forces that influence the behavior of buyers and sellers in a marketplace, impacting supply, demand, and prices. In the context of the video, the speaker highlights that during economic upheaval, public behavior (e.g., buying food and precious metals) drives market shifts more than governmental actions. This underscores the idea that economic systems are ultimately shaped by the collective actions of individuals reacting to financial crises.

💡BRICS Nations

BRICS refers to a group of emerging economies—Brazil, Russia, India, China, and South Africa—often discussed in the context of global economic shifts. The speaker suggests that while these nations may attempt to create a new currency backed by commodities, their lack of fiscal responsibility could hinder their success. The mention of BRICS emphasizes the broader geopolitical implications of monetary systems and how shifts in major economies can influence global market behavior.

💡Physical Markets

Physical markets are marketplaces where tangible goods are bought and sold, as opposed to trading in futures or paper assets. The video highlights the potential for a shift from trading on futures exchanges to engaging in physical transactions for silver and gold during a monetary crisis. This notion illustrates a return to more traditional forms of trade as confidence in paper currency diminishes.

💡Exponential Inflation

Exponential inflation describes a scenario where inflation rates increase at an accelerating rate, leading to rapidly rising prices. The speaker notes that all inflationary systems ultimately head in one direction—upward—until they become unsustainable. This understanding is critical in the context of the video, as it frames the discussion of economic collapse and the urgency to prepare for significant financial changes.

Highlights

Be prepared for a potential dollar collapse; securing gold and silver is crucial for survival.

Distinguishes between monetary demand and investment demand for silver.

Monetary demand arises when people seek silver for exchange, while investment demand reflects anticipation of monetary collapse.

Historical gold-to-silver ratios during monetary panics have fallen to 15:1, indicating a shift towards silver.

The current inflationary environment is driven by rising prices of basic necessities, not just luxury goods.

Financial crises can unfold rapidly, with systemic weaknesses becoming apparent as the economy contracts.

Central banks are likely to reverse tightening policies, increasing the pressure on precious metals.

Previous delivery issues in silver markets highlight the vulnerability of registered supplies.

The COMEX may alter rules during crises, but such changes could lead to a flight to physical silver markets.

Gold and silver should be recognized as money, whereas baskets of commodities are not viable alternatives.

Emerging currencies need to be gold and silver backed to effectively replace the dollar.

The speaker doubts the fiscal responsibility of BRICS nations in establishing a new currency system.

Public demand for physical assets will surge as the dollar's value declines, leading to a decentralized market for commodities.

Inflationary systems follow exponential trends, inevitably leading to a significant collapse.

Historically, central banks have reversed course when faced with economic pressure, suggesting this trend will continue.

The urgency for individuals to secure precious metals is emphasized as a hedge against economic instability.

Transcripts

be prepared for it to happen this year

have enough gold and silver it wherever

you need it to survive the immediate

aftermath of a dollar collapse it could

happen any time it could definitely

happen this year I focus on the the

monetary philosophical aspect of these

markets I mean I understand investment

demand I understand industrial demand

but monetary demand is a completely

different thing which we haven't seen

yet I bucate between investment demand

and monetary demand because investment

demand is what silver stackers do it's

like we stack silver why because we know

that something big is going to happen

and whether we realize it or not what

that big thing is is that an explosion

of actual monetary demand and what is

monetary Demand versus investment demand

investment demand is when you when you

stack silver in anticipation of monetary

demand because you expect the monetary

system to break down and monetary demand

is different from industrial demand

because everyone demands a money

everyone needs money for something

otherwise there's no division of labor

so that's a much more fundamental thing

when we look at the Futures markets of

silver priced whether it's on the lbma

or the comx or whatever the contract is

what's the price of what we're looking

at we're looking at the price of

industrial demand and some investment

demand but we're not looking at the

price of monetary demand because

monetary demand is when everybody wants

it to exchange against other Goods uh

and when that happens that's when that's

when gold to Silver Falls to like 15 to1

as it does in every monetary panic in

history that's what always happens why

because most people can't afford gold so

they go to Silver which is already

starting to happen but it has a lot more

more to fall it fell to 15 to1 in 1918

it fell to 15 to1 in 1980 it's going to

fall to 15 to1 again and that's when we

are in a full-blown monetary crisis what

I keep saying everyone sees prices going

up everywhere in the world it's not a

Goods problem it's a money problem it's

a money problem because we see basic

necessities going up faster than any

other prices so everyone's focus on you

know the broad inflation numbers they

don't matter they do not matter because

in any hyperinflationary economy you

have basic necessities going up really

really fast and luxury items either not

going up at all or going up much slower

than basic necessities so in this kind

of environment we're seeing like the the

developing of a financial crisis already

coming into fruition we're seeing like

what is it the tide comes in and you

realize who's naked so the tide is

starting to come in and the people on

the edges are you know they're already

naked whether it's um uh the UK pension

plans or FTX you know some kind of

crypto exchange I mean these things are

going to start happening week in week

out now and faster and faster and

eventually the the central banks are

going to have to reverse and when they

reverse in the environment of inflation

whether it's 8% 7% 6% 5% they're going

to reverse and then everyone's going to

attack the precious metals because

that's what humans do that's what's

going to happen exactly when the central

banks break and start uh printing again

I don't know but they're going to

because there's going to be humongous

pressure to do so so when that happens I

think silver gets drained from all the

the centralized stock piles comx lbma um

whatever silver fund happens to be

holding silver unallocated in the Perth

Mint or Switzerland or whatever it's all

the same stuff it's just different piles

they're all going to be attacked at the

same time and you can use any of them as

a proxy for any of the other ones so

it's it's the same game over and over

again when they run out they run out and

we win because we're stacking and we're

not selling um well we saw it once in

July of 2020 when um I think the the

number of deliveries was higher than the

amount of registered silver available

and so I think JP Morgan rushed like it

was like 4 5 million ounces from its

eligible pile into the registered I

don't know exactly why they did that

because I think delivery was going into

the comic not out at that that time but

it was um at least on net so it was

confusing what was happening but at

least we see the mechanism of what would

happen if registered supplies go to zero

you'd see some bank or other with a

whole bunch of of eligible supplies put

them into registered category because

it's happened before um but again the

rule changes in the comics in 1980 they

did them because they could the

situation there was um we were already

basically back on a gold and silver

standard in 1980 at least in terms of

the fed's balance sheet because the

valuation of gold at the time was enough

to back all of the fed's liabilities on

its balance sheet by over 100% that is

the definition of a gold standard and

the gold silver ratio was about 15 to1

which is the general gold silver

standard that we've had for hundreds of

years before that so 1980 brought us

back on a gold and silver standard so

since we were already there the comx had

the ability to mess around with the

rules but if they do that in this

environment where the FED has absolutely

no ability to raise interest rates

anywhere near 20% forget it it's

impossible if they change the rules in

this environment then all the demand

would just flood into the physical

markets and everyone would just ignore

the comx and who cares what they say

doesn't matter they won't have the power

because instead of dollars trading for

paper silver on a Futures exchange you'd

just have that Futures exchange ignored

completely and physical silver would be

exchanged for goods on some kind of

decentralized panic you know segmented

Market where people would be trading

physical coins or some kind of reliable

backing of a certificate for them for

actual goods and services which would be

the endgame that we're all looking at

where gold and silver become money again

literally we've never seen in the

history of the world a currency backed

by a basket of Commodities that's like a

it's a nice if people try to spin these

uh intellectual um theories on money

that we've never seen before I don't

think are possible look gold and silver

are money baskets of Commodities are not

money every time that some country comes

up with a some kind of scheme to use

whether it's a real estate or tobacco or

whatever as money it doesn't last long

gold and silver are money and that's it

and as for the formation of bricks into

some kind of a new currency it would

have to be gold and silver backed in

order to supplant the dollar um which is

what what they're going to have to do

but if they do that they're going to

have to become fiscally responsible you

know Russia has the ability to do that

Brazil

and uh you know India I don't see any

fiscal responsibility in those countries

so much uh maybe they can change I don't

see a Changing of the Guard by bricks

countries uniting and becoming

responsible and changing the world I see

the market going one way and then bricks

following the market by inertia and

force and then taking credit for it so

the public is going to lead the market

public in the streets trying to buy food

in whatever City they are in the world

when it comes down to it they're backed

by the dollar right now so when that

falls they're going to have to go to

Gold and Silver and then the bricks will

say okay we're going to gold and silver

because that's where the Market's going

and they have no choice they're not

going to create a market they're going

to follow the public and then take

credit for it look in terms of timing

questions this is what I always say be

prepared for it to happen this year have

enough gold and silver it wherever you

need it to survive the immediate

aftermath of a dollar collapse it could

happen any time it could definitely

happen this year is it definitely going

to happen this year nothing is definite

and there there have been a lot of

people in this industry a lot longer

than I have been who've been in for 30

40 years and haven't seen the collapse

that we've all been looking at all been

waiting for but that said look all

inflationary systems are exponential

exponential all of them and they all

head in One Direction Only One Direction

they just go up and up and up until they

go vertical and we're on the vertical

stick of that I mean they could

theoretically stop and then just watch

the pyramid fall and watch all their

Banker friends just go bankrupt it's

theoretically possible they would do

that they're too greedy and stupid to do

that they're not going to do that when

you're up against evil you can just be

sure that evil is going to continue

until its logical conclusion which is

self Annihilation any kind of evil does

that so that's what's going to happen

here and right now the FED is trying to

come off the exponential curve by

stopping the printing and we see the

money supply falling that's going to

last until it doesn't anymore every time

that's happen they've had to reverse is

it going to change this time is it going

to be the first time in history that the

FED doesn't have to reverse after

shopping printing no it's not going to

be the first time in history it

everything that's happened before is

going to happen again just on

supercharge and we're just waiting for

that turn and uh exactly when it's going

to happen we don't know but it's going

to happen soon