Silver Supply Tightness Not Being Reflected in Paper Price | Interview with Liberty & Finance.

channel Mario thank you so much for joining us today oh you're welcome Elijah and uh yeah I hope you're doing well doing very well here hope you're doing well as well I did want to ask you today about silver because you know regardless of where the price is it's really important to go back to the fundamentals of silver one of the arguments out there that's been

out there for a while is that or when silver is used in industry it's often just thrown into the landfill and really it would be very hard to get that silver back and people have been saying that silver could be depleted it could be very difficult to mine silver in the future you recently put out a video analyzing an article that makes that case uh can

you share that with our viewers yeah I recently uh gone in contact through Twitter with someone called by Xiao Jun he's a Chinese analyst and precious metal space uh his Twitter handle is at Oriental underscore ghost if anyone's interested you can follow him too I try to get him on my channel but uh his English spoken English is not as good as his written English and

he sent me some articles that he's written in the last few years about the topic and the one I spoke about a week ago on the 14th of June was one that he wrote on the 25th of September uh the impending eruption crisis silver Extinction so he he's been warning about this for for the last few years and uh the to put it in a nutshell

he talks about how the major uh producing countries like China and Mexico they have very uh little time left in terms of known reserves that have been studied by the U.S Geological Survey USGS even though there are some countries like Poland and Australia used to have like at least 50 years of civil reserves the fact that the the major producers like China and Mexico are running

low it could be very serious the other thing he talks about is the fact that not just the banks the bullion Banks but also a lot of the silver mining companies they they they try to also hedge their production by going by selling short and and they do a disservice to to the silver silver space according to him and one of his arguments about recycling is

that the price has been kept so artificially low that it doesn't pay to recycle and silver of course is very important he talks about this five year your plan that they have in China and that by 20 I think 33 or 32 they need to go into the Alternative Energy space and silver needs to be used a lot for photovoltaics for the solar panels and a

lot of other Technologies and uh it's a matter of that is really important not not just uh for uh stackers but I think the Chinese see it more as a very strategic commodity or metal that they need in order to keep developing and growing their economy and going into a more uh Alternative Energy economy and silver is a huge part of that according to him so

he he thinks that Mexico for example two years ago Mexico only had like six years left of USGS reserves so now we're down to like four years and China is down to about nine years so this could happen very suddenly and the way to stop it he thinks is for the price to adjust a lot higher then it would make it economical for uh to scrap

silver to recycle silver because as you said there's a lot of uh silver out there that's just uh wasted because it's not economical to recycle it but if it was uh at a hundred or two hundred or three hundred dollars then it would stop a lot of the depletion of the underground reserves of silver and I thought it was really interesting and yeah people have been

talking about that for long uh and I I saw the other day uh Keith neumeyer from first Majestic silver talking about the fact that about a billion ounces I think of silver trade every day which is the annual production and that in the last couple of years the uh production has been a lot lower than the demand so yeah it's a problem and of course the

uh the price the paper price it's like a distraction I think uh Andy scheckman talks about that it's like uh yeah don't don't watch the fundamentals just watch the price don't get involved it's almost as if it's trying to discourage people so I I think we need to be very patient if you if you like me have been a silver stacker for many years um I

I think the time will come and it could be very soon it's a matter of not 10 15 years according to uh by Xiao Jun I hope I got his name correctly it's a matter of maybe three four five six years which is uh very uh very close and one of the key elements here is you know people might say well all you have to do

is make have new minds right mining the resource silver resources out there uh in the Earth but it takes a long time to develop a new mind you have to start in the exploration stage development all that um it takes you know about 20 years or so to actually get uh something rolling can you expand on that and how you know it's not just a quick

fix if we start running out of silver yeah I mean that's something I've learned over the last few years about the mining space that it takes like you said sometimes 20 years sometimes maybe last 10 10 years and uh if you look at the USGS data there are some countries that still have a lot of reserves underground but uh if uh what he says happens to

Mexico and and China in the next three to five years it will be too late it will be too late China and Mexico are really important producers of silver one of the biggest and that's why it's so important and the other thing about silver is there's very few uh mines as well that produce just silver it's usually a byproduct of Base Metals so people haven't really

focused too much on Silver there's very few so pure silver plays out there now when it comes to recycling because that's obviously one of the ways we could get more silver um but when silver is used in technology it's typically very small amounts and then it you know the computer just goes to the landfill or whatever um technology it is just goes to the landfill so

that silver is just sitting there and it would be very hard to retrieve that um what is your perspective on what is your take on that because is it really feasible to go to landfills or how how is this going to be recycled in the future yeah well that's something that I haven't really looked in into it's not really my specialty but I would say if

silver was trading at three hundred dollars I think you might get a lot more scrap silver coming through I I think a lot of people who might have some silver that might not be as uh as uh adamant about Silver's money like we are and stackers they might get rid of it I might get rid of some of my silver if it goes to 300 500

so I I think that's uh what he means as for the landfills I'm sure someone might find a way to add 300 dollars let's say I mean I'm not saying Silver's going there but if it were they'll find a way maybe to retrieve silver and make uh make a profit I don't know how but that's something that that happens when when such things happen when when

you know prices rise so much definitely it has four other precious metals um your perspective on that it seems like silver is unique in some respect because when it comes to Gold you know it's all the gold ever mined almost all of it is still above ground it in vaults somewhere um so it it seems like a unique situ situation that we're seeing with silver being

depleted in this way yeah I mean the stock to flow ratio of gold is like 84 years and silver is like you said is consumed so silver is uh both a monetary metal and an industrial metal and um I think the Chinese though want the silver more for the industrial use I'm not sure they're they're into monetary silver I could be wrong yeah and um yeah

that's the difference and maybe that's why gold is uh a better store of value in the long term because it's it's not consumed and that's one of the the qualities of money has to be that it's not consumed because then there's not as much volatility in the price and that's why uh silver is so much more volatile because the stocked flow ratio I'm not sure what

it is but it's a lot lower than uh than golds and that does present you know obviously it might not be a stable as goal but that does present a interesting opportunity if people can play it right buying silver cheap and then selling it later at a higher price obviously we can't guarantee that but that's the argument um there and when it comes to the gold

silver ratio it's quite high right now historically high around 80 to 1. um what is keeping silver so cheap right now well I I think it's the um the the bullying Banks uh with their paper games really to be honest and maybe uh like uh this Chinese analyst says even some of the silver mining companies because uh the other thing he said is they don't want

they're making money already at 24 25 and if it goes higher uh they'll get more uh labor demands in Mexico people are going to want more wages they're going to be taxed more so they're just trying to like it's like they're not maximizing uh their their profits and and I think that's what's happening as well so it's not just the bullying Banks The Bullying Banks facilitate

uh the hedging and the shorting according to him and uh I think you know uh frustration because prices uh always dictate the sentiment and if they can keep the paper price low uh the interest is not there but I've noticed that um the US Mint is not really uh stepping up to the plate in terms of providing a Boolean uh silver silver coins and uh they're

supposed to and the premium for uh the silver eagles are very high so yeah it's a the this uh paper price is uh yeah it's frustrating but I don't think it's real and eventually you know it's gonna it's gonna reset a lot higher and we do have a playlist on our Channel about precious metal manipulation which I'll link in the description of this video that kind

of gives all the details on that and the perspectives out there um one of the things I did want to discuss as well is kind of changing gears here is still on the topic of Commodities and precious metals um The Brick Summit is coming in August and actually I think it's 25 countries have petitioned to join brick so it's kind of crazy you know it's becoming

a large section of the world um if you know they let these other countries in and one of the countries that is definitely a significant um that is looking to actually be present at the conference is France president macron of France wants to uh be there your perspective on that and the significance of this because um as we've talked about in the past and as Andy

scheckman has really highlighted many times is the bricks are looking to develop a new Reserve currency possibly backed by gold or Commodities that could rival the dollar and so many more countries are looking to join yeah I mean the French have a history of uh seeing the writing on the wall so to speak back in the late 60s early 70s they saw that the US was

deficit spending uh with the Vietnam War and the Great Society experiment of Lyndon Johnson and um they did what they were entitled to which was exchange or asked for uh redeemable you know they redeemed their uh dollar dollars Federal Reserve notes or treasury bonds or notes for for gold and it basically led to a run on the U.S treasury and the breakdown of the Bretton Woods

and I think uh macron and whoever advises him they they see the writing on the wall now as well for the petrol dollar which came after the uh the Breton Woods the you know the gold backed dollar and I think it's significant some people could argue that uh he might be going there to spy for the west and maybe that's why the South African president hasn't

decided to allow him to be present at the summit but we'll have to see just the fact that he's interested I think is very significant even if he doesn't go it goes to show that country like France is aware of how important uh the bricks are going to be in terms of a new uh Financial monetary architecture for the world so the Summit is August 22nd

to 24th and I think the ministry of finance of France visited or the foreign minister I think uh yeah the foreign minister visited uh of South African uh South South Africa on Monday and uh Catherine colon and she visited with the South African foreign minister and now it's up to the president of South Africa to uh to say yes or no to macron so yeah it's

becoming uh more like the alphabet group because brics is Brazil Russia India China South Africa but like you said there's 25 other countries asking pretty soon it's going to be eight A to Z group not bricks that's a very good point and it seems like the mainstream uh is covering this is just you know it's just a a collection of pretty small nations with small economies

and it's just a random collection of countries around the world not very significant but if you really look at it even on if you look at purchasing power parity for example of their gdps the bricks have has surpassed the G7 so it's not an insignificant group of countries there no one and I think the West unfortunately we we've indebted ourselves so much as a block national

debt uh government that public that household that corporate that and and I'm not saying the global South doesn't have that problems but uh yeah I think the other thing as well people don't realize these countries uh outside the West they're not as socialist as we are even uh China I would say uh is considered a communist country but I'd say there are a lot more capitalistic

than the West which sounds weird and Paradox paradoxical but it's true and I'm not saying I agree with all the Chinese policies but uh yeah I think uh macron sees that this is an important train to maybe uh have a seat uh in not just the west and maybe he's hedging his bats and it seems to be uh I guess a greater separation between the East

and West as well especially with respect to the war in Ukraine where we've had the sanctions and that seems to be one of the motivations um to develop this new Reserve currency we're also seeing tensions with respect to Taiwan you recently did a video on this and how it could uh impact what the Federal Reserve is going to be doing if you could expand on that

yeah I mean Taiwan there's been a lot of talk recently um in saber rattling and I also saw that uh I think yesterday uh Joe Biden President Biden called the Xi Jinping a dictator the Chinese weren't very happy about that and this week or is it late last week um Secretary of State blinken visited China and they did see him he was supposed to have gone

in February but you had that the balloon thing but yeah I I think uh if there's a conflict between the US and China vis-a-vis Taiwan it could it could mean that the Chinese could say well we're not going to buy treasuries we're going to dump all the treasuries or the Americans might even uh freeze their uh reserves and I think that's why China's been buying a

lot of golds in the last six months or so and announcing it and I also saw that uh they're thinking of sending Yellen uh to to China as well Janet Yellen Secretary of the Treasury why would they do that well because they want to make sure maybe that the Chinese don't stop buying treasury seeing that uh you know the uh that that ceiling has been removed

for 18 months and they need to sell sell a lot of debt so so um yeah it's uh it could be a really uh big uh big thing for for the FED because if there is a crisis that would give him a cover to to maybe start increasing their balance sheet again massively because they could use an excuse while you know China they're not going to

be buying any anymore and we are at war or something uh hopefully we won't be but uh yeah that's how uh how important I think Taiwan is now hopefully things will calm down but you never know and I know the FED is looking to possibly raise rates two more times um this year they just did pause um but it sounds like they could be switching to

easing depending on um you know where geopolitics go yeah and and I think uh the FED as well they they they paused in the last meeting and they said the July meeting is live which means they can raise again and I I think the geopolitics is affecting it but they're also looking at the economic data so uh to give them an excuse not to raise anymore

and I just saw that he made a comment today pal and he said we are moving balance sheet back down but won't go back to a scarce reserves level so he's basically saying you know we don't want to do too much to QT so I saw that headline earlier today definitely well Mario we really appreciate your time today before we let you go where can our

viewers find you online and did you have any last thoughts for our viewers yeah I'm sorry I've got a bit of a cold anyway uh you can find me uh at Monaco 64 on YouTube I'm also on Twitter at maneko1964 is my handle and the final words um yeah uh patience uh if you are uh precious metal stacker I know the sentiment isn't good right now

um gold has been a little bit under pressure but just think you know that time there's no way uh for uh the US the UK or Western Europe to carry all of that that we have without inflating even more um so you just have to hold on and uh keep stacking and I think the recent uh correction is just a a very good uh opportunity to

get some more and that reminds me about how this issue is not just in the U.S right we're also seeing similar policies in the UK and actually negative real interest rates so it seems like it's actually worse also in the UK can you kind of share with our viewers economically uh where you are uh what's happening in the UK right now yeah I mean we had

a CPI data today and they were higher than expected uh the core CPI actually went up and the problem with the UK is that we're not we don't have the major Reserve currents anymore I think we did up until World War II uh so we we can't print willy-nilly like uh the FED uh can and keep rates as low as they they kept so um yeah

we have a CPI of 8.7 and our base rate is four and a half percent so so and it's been negative uh ever since the 08 crisis so it's all coming home to roost now and uh and I think uh unfortunately uh our economy is going to go into a deep recession because mortgage rate mortgage rates are going up now because uh bond yields are going

up government bond yields and the uh real estate market is very important for the UK economy because we we've been de-industrialized in the last 50 years and our economy is based on uh Consumer Credit borrowing and spending it sounds like you know not only the us as you mentioned but also the UK is having economic issues which kind of takes us full circle about even if

you know some the medals may be under pressure right now it's important to look at the fundamentals of why um why to invest in metals in the first place so Mario we really appreciate your time and insights today and thank you so much for your time and God bless God bless Elijah and thank you for having me