Why Is This Important?

For context, in the past 2 months alone, 500 tonnes of gold – or about 40,000 good delivery bars – have been quietly delivered to the 9 comex vaults (mostly JPM, Brinks and HSBC). The total comex gold under Manhattan (and DE) is now 1040 tonnes, or the same as all Swiss gold https://t.co/BEeYDPSKBz

— zerohedge (@zerohedge) February 5, 2025

According to USDebtclock.org, there are 127.85 gold paper contracts for every ounce of physical gold. To put this in a different context, imagine one cybertruck being sold over 127 times and the money paid by the “owners” for future delivery. The delivery of physical gold is important because people finally understand that there is no physical gold to cover their purchases. What does this mean? The price of gold will continue to escalate and many people will lose their “investments” in gold accounts. It also means gold mining stocks will be literal gold mines.

What about silver? There are 379 silver paper contracts for every ounce of physical silver. The historical relationship between the price of silver to gold is about 15 ounces of silver to one ounce of gold. This means that one ounce of silver should be valued at $192 per ounce. The artificially low price is due to price manipulation by banks.

From Grok concerning the price of silver impacting US banks:

From the web information provided:

• Silver Prices Surge: Banks Face Billion-Dollar Losses by The Jerusalem Post indicates that silver prices surging past $33.6 per ounce led to concerns about potential insolvency due to massive short positions by five major U.S. banks. These banks were reportedly facing billions in potential losses.
• The Silver Short Squeeze: A Historic Market Battle in the Making from The Jerusalem Post also discusses the scenario where a significant rise in silver price could force banks to cover short positions, potentially leading to a short squeeze which might push prices even higher, exacerbating losses.

However, these articles do not specify a precise price point for insolvency but rather describe a scenario where banks could face substantial financial distress:

• No Exact Number: There’s no definitive price point from the information given where U.S. banks would universally become insolvent. Instead, these reports suggest that a sharp and sustained increase in silver prices could lead to significant financial strain for banks with large short positions.
• Potential for Insolvency: If silver prices were to rise dramatically (far beyond the $33.6 per ounce mentioned), and if banks do not manage to hedge or cover their positions effectively, there could be a risk of insolvency for those with the most exposure. However, this would likely require an extreme scenario where silver prices go much higher than current levels and banks are unprepared or unable to mitigate the losses.

In summary, while there’s no specific silver price where U.S. banks would become insolvent, a significant, unexpected, and sustained rise in silver prices could lead to financial distress for banks with large short positions, potentially affecting their solvency if not managed properly. However, this would involve a combination of high silver prices, market behavior, and inadequate risk management by the banks.

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I believe the Deep State will use the price of silver to collapse US banks as a scorched earth strategy. Coupled with Democrat led riots in the cities, this will collapse our economy. Although Donald Trump has assembled a great team and has completely outwitted the Deep State, we should not believe that they will not react as corned animals. Be vigilant and build intelligence for your area of operations.