David H. Smith: The Financial System Starting to Crack (Video)
David H. Smith: The Financial System Starting to Crack Video by Palisades Gold Radio
Silver’s ratio became an outlier last year when it reached the unprecedented level of 120 to 1. He feels that silver may be setting up to change its relationship ratio with gold permanently. He expects a lower ratio soon, which will bring silver prices much higher relative to gold.
Silver mining is moving into the fourth year of declining grades and reduced mine production. Very few mines are primarily silver, and minimal exploration has occurred in recent years. This lack of new discoveries affects both silver and copper. He says, “It’s all coming together in a perfect storm.”
Silver acts as a line of defense for gold, and significant cracks are appearing in the silver defenses. A breach will expose numerous concerns regarding gold ownership and integrity. This could deal severe blows to the trust and faith in the financial system. He believes the gold sector is even worse than the silver market.
David discusses the rapid growth in physical bullion sales and how dealers were caught unprepared. The Reddit short squeeze movement has brought a lot of education and attention by Millenials to the silver markets.
David notes that Blackrock has changed their strategies and may have begun accumulating physical. There is a broad trend of small funds and family offices now moving into the market. Everyone is becoming involved.
David believes the miners, particularly the juniors, remain very undervalued and explains why they should outperform.
David feels optimistic that after a rough period, the world will once again become calm. We only have to get through the worst of the coming storm.
Time Stamp References:
0:00 – Intro
0:36 – Silver & Palladium
7:40 – Will Silver Break Gold Out
12:45 – Stages to silver’s rise
15:40 – Davos Meeting Basel III
17:40 – Digital Silver
18:45 – Physical Bullion & Premiums
20:07 – Blackrock & Big Money
21:57 – Miners & Leverage
28:12 – Bob Moriarty
32:50 – Australian Discoveries
36:52 – The Pareto Principle
40:43 – LODE Crypto Project
46:33 – 2020 Crisis & Gov’t
48:40 – Wrap Up