Who Dropped $1B on GOLD in a Single Trade? 'Something BIG is Coming': Eric Yeung
Summary
Massive Gold Trade: A historic $1 billion trade in the GLD ETF suggests that significant market movements or insider knowledge may be at play, indicating potential shifts in the gold market.
Silver as a Strategic Asset: The inclusion of silver in the U.S. Department of the Interior's 2025 list of critical minerals signals a strategic shift, potentially increasing demand and price as the U.S. competes with China for silver resources.
Central Bank Moves: The Saudi central bank's purchase of SLV ETF shares highlights a growing interest in silver among central banks, which could lead to increased physical silver stacking in the future.
Geopolitical Dynamics: China's direct purchase of silver concentrate from miners and the establishment of offshore gold vaults in Hong Kong and potentially Saudi Arabia reflect a strategic move towards de-dollarization and increased gold-backed trade among BRICS nations.
Gold Revaluation Speculation: Discussion on the potential revaluation of U.S. gold reserves at market prices suggests a strategic move to alleviate national debt and stabilize the dollar, though it remains speculative.
Gold and Silver Mining Surge: Recent strong performance in gold and silver mining stocks, significantly outperforming the broader market, indicates a potential shift in investor interest towards these sectors.
China's Gold Strategy: China's encouragement of gold purchases by citizens and the allowance for insurance companies to invest in gold reflect a strategic push to increase domestic gold holdings and reduce reliance on foreign currencies.
Broader Commodity Interests: Beyond gold and silver, investments in platinum, uranium, and copper are highlighted as strategic due to their critical roles in energy, technology, and geopolitical considerations.
Transcript
Hello everybody and welcome into commodity culture where our goal is to make you a better investor in the commodities sector. My name is Jesse Day and on this episode I'm excited to welcome Eric Young to the program known as King Kong 98 on X where he discusses geopolitical and economic effects on precious metals and commodities. Who made the biggest single trade in the history of the GLD ETF at $1 billion? And what could the implications be? We discussed this along with the Saudi central bank taking a stake in silver. Could this trend accelerate? And could silver soon be stacked alongside gold by central banks around the world? The silver and gold miners have started to rip? How big could this bull market be? And is this just the beginning of an epic rise for the mining stocks? All of this and so much more ahead. So strap yourselves in for my conversation with Eric Young. Eric Young, great to have you on Commodity Culture. I want to kick things off with the silver space and some big news there and that is that silver has now been added to the Department of the Interiors 2025 list of critical minerals, platinum also being included. What are your thoughts on this addition? Do you think this could have a big impact on the demand side for silver and ultimately for the silver price? >> So, uh, first of all, thank you for having me on your show, Jesse. So, um, my thinking is this. I've been telling people for the longest time that, um, the the fact that the silver price is so low, I mean, a lot of people say it's suppressed. I'm I'm in that camp myself. Actually benefited China in the last um 30 or so years because China is the primarily primary um manufacturer of um electronics and goods that need to utilize silver. Okay. So I think um you know like I said in the last 30 years um the bullion banks like JP Morgan, HSBC, Goldman Sachs they may have been you know working with China to suppress the price of silver to keep it in check so that um you know the the um the miners they don't starve to death but they make a little bit of a margin over their costs of mining and that silver goes to China to be made into manufactured goods and shipped back to the US and the rest of the world where the US and the rest of the world make uh makes the biggest margin of that um manufacturing value chain. So what's happening right now is is something that actually predicted um I guess a year ago a year or two years ago. What I mean by that is something changed in in the last year. Um we all know that um Donald Trump is now slapping tariffs on everybody especially China. So what that tells me is that um essentially uh China is you know especially in the uh in the eyes of the US is no longer going to be going forward the prim primary manufacturing hub for it imports. Therefore, and um my logic uh goes as such, um you know, if China is not going to be the primary manufacturing hub for the US or potentially maybe the West, why suppress the price of silver to assist China to keep uh things cheap because now you you see what I'm saying? You're competing with China with your own domestic manufacturer products, right? So this, you know, looping back to what you what you reported just now, the um the fact that silver is proposed to be on the uh strategic metals uh or commodity list of the uh department of uh interior in the US. That is a signal telling us that the US government is no longer willing to subsidize China with cheap silver. That's what that means. So instead of subsidizing China with cheap silver, the US is going to be competing with China to get the silver in its jurisdiction. >> Very interesting. I was going to ask this later, but it connects to what you just said, so let's jump ahead to it. And that is reports that I've heard from a number of guests on this show that representatives from China are flying around the world. I think a lot of the reports are coming from South America and they're buying silver concentrate directly from miners. Does this also tie in into this situation that you've just laid out for us? >> Absolutely, Jesse. That just like, you know, I mean, exactly is a symptom of what I just talked about, right? So now you have um the US and everybody essentially competing for strategic minerals and commodities um and you know voila you see China going directly through the source to secure future you know um impulse of um physical silver. So that's just really like you know like like what I just said is a symptom of the grand scheme of things which is we're no longer in a um globalized um manufacturing value chain where China is the um world factory manufacturing everything for everybody. The US is trying to reshore manufacturing. Therefore, declaring um physical silver and other minerals and metals as strategic and therefore China is no longer relying on western uh supply chains, right? China is going directly to places like Peru to secure the um strategic minerals like silver at its source. And I want to also bring up an interesting news item that came across X recently and that was the purchase by the Saudi central bank of 932,000 shares of the SLV ETF. The knock on silver or one of the knocks on silver versus gold has been well central banks aren't buying silver. Now let's not you know celebrate at this point. This is very difficult or sorry very different than them taking possession of a large amount of actual physical silver and standing for delivery. Um but it is a fascinating development. I wonder what your thoughts are. Do you think we could see more central banks follow suit and perhaps eventually start stacking physical silver? >> So that's a very good um you know interesting development, Jesse. Right. Saudi Arabia, central bank of Saudi Arabia buying a big chunk of SLV. Now, I just want to add that what that means is that I know they're not directly buying physical silver, but because they're such a big player, the big buyer of SLV, that means they are a an authorized participant. Okay, which means that they can actually withdraw physical silver from the SLV v. So, so it's not direct, but it's like a step, you know, like just basically um one step detached from them actually own owning the actual physical silver. Now, in terms of my um analysis of the situation and um what I think is actually happening, well, this is very interesting, Jesse, because um the Shanghai gold exchange earlier this year has um well, the Chinese government and the Shanghai gold exchange have announced that they're going to start um basically establishing offshore for um SG V. So, so right now like you know um the vault of the SG for gold and silver they are located uh all over China mainly around Shanghai. Um since they made this announcement they have started um setting up a vault in Hong Kong. So in terms of like you know you told me off camera Jesse that you had traveled around China in the past and you're pretty familiar with the place. So you know that to the mainland Chinese I mean even though Hong Kong is part of China um economically speaking you know um in terms of the their legal systems Hong Kong is offshore to mainland China so it's a big deal they set up um this year it's already begun an offshore vault in Hong Kong. Now there has been uh have been rumors in China that the next destination of um a SGE Shanghai gold exchange offshore vault for gold and silver. There's been rumors saying that that's going to be in Saudi Arabia. You see? Okay. Now, why is that important? Why is that important? because you know I'm sure you heard um you know this from other experts like Luke Roman who has um talked about this uh many times which is the BRICS countries that is that includes China, Russia, India etc. They're trying to I wouldn't use the word um you know I mean to put it simply is the dollarization right so they don't want to use the US dollar as the middleman they want to deal directly with each other using the local um domestic currencies but um there's there's a problem there right because um you got trade bidances with these different countries So uh some of these uh countries may not want to hold um some foreign domestic currency. I mean like you know we got to admit the US dollars for all the flaws that it that it has it has been functioning as a global reserve currency global reserve asset for the last 50 years. So that worked right now you're jumping into local domestic currencies. there needs to be something that is neutral to all these players that they can settle in and that thing is physical gold. So by establishing an a uh an offshore vault for the SGE, what China is saying is that um you know Saudi Arabia will deal with you guys in R&B but if you have access R&B by selling us oil, right? China buys crude oil from Saudi Arabia. So Saudi Arabia has a whole bunch of R&B, right? So if you use Saudi Arabia, you don't want to keep that much R&B. We are setting up a physical gold and silver vault in Saudi Arabia where you can convert that RMB, yen, okay, Chinese, which is the Chinese currency into physical gold and silver in your jurisdiction. Okay. All right. Because I mean like all the um the people who were um who were against this theoretically, right? I'm talking about just um people on X uh in the past when this idea bounced around. They were saying uh well the gold and silver is in China physically. We can't trust the Chinese. So the Chinese maybe they heard all these concerns, right? They're saying fine, you don't trust us, we'll put the vote in the countries um who we dealing with. So your news there with Saudi Arabia buying SLV, okay, it might just be another symptom of you know this physical golden offshore physical gold and silver um vault that China is establishing. Okay, >> that's what I'm seeing. >> And now a quick break to hear from our sponsor. Ark Silver Gold Obium owner Ian Everard is considered one of the most honest and levelheaded gold and silver dealers in the United States. Praised even by his competitors. So give him a call today to take advantage of the specials right now. Silver Kangaroos 2023 1oz coins mint fresh only $247 over spot. Mint fresh silver maple leaves 2025 coins 1 ounce $2.87 over spot while supplies last. Reach out today at 3072649441 or by email at ianarchsggo.com and make sure to tell him that commodity culture sent you. And now back to the interview. Yeah, that's very interesting because you're right. A lot of the discourse around the BRICS countries potentially trading in gold with each other has been well they don't trust each other. These are completely different cultures. The these political leaders are not you know compatible with each other in terms of of establishing levels of trust. But the methodology you've outlined with uh the vaults actually being located within member countries makes a ton of sense. I want to shift over to some other news that just dropped recently. I'm going to read this post on X by Mr. Uppy. He said, "Someone just dropped 1 billion into GLD in a single dark pool block. Largest trade in its history. Who was it? Saudis stacking? America fighting fiat collapse? Black Rockck sneaking in? Gold chess pieces are moving. Who could this possibly be and why? Now, what is your assessment of this massive trade in the GLD? And any speculation as to who it could be?" So before I comment on this, I want to I want to just read some details for you for your audience, right? Um this trade that you just you just talked about the relative size of this trade is7 times larger than the average CLLD trader, >> right? >> Okay. Like it's just, you know, unbelievable, right? Like I mean I need to um cross check this data and make sure it's legit but um from where I'm sitting where I'm looking at it looks legit. Um anyway another piece of information relating to this and this is the largest GLD trade since it began trading um since 2004. Isn't that amazing? So if you ask me Jesse like something some somebody from somewhere knows something is going to happen. That's what this tells me. And then you know combined with the fact that just right before I got on this interview with you today, okay, somebody dropped another piece of news on my desk and it says that Vietnam, okay, the country have just announced that they're going to um essentially take down the barriers to physical gold trading in the country. So if you if you know in the past like you know physical gold in Vietnam is tightly controlled by by the Vietnamese government. So now they're saying uh private enterprises can uh buy, sell, trade, import and also smelt physical gold. Okay. And then another piece of news that um that kind of floated floated around yesterday which is the um China has been accelerating its goal impulse physical gold impulse through Hong Kong. So in my opinion all these things are not coincidences. What we seeing here, Jesse, is that the world, like I said earlier in the program, is in the process of remmonetizing physical gold as an international reserve asset in place of US treasuries. And what we're seeing, what you're reporting and what I just told you, told your audience are all symptoms of this. They're simply symptoms of a bigger picture of physical gold slowly getting back into the world monetary system. >> I think that dovetales very well into the next question, which is revaluing gold. Do you think the United States could potentially revalue its gold reserves? If so, what would this actually accomplish? This is an interesting question because I get all sorts of responses from different guests from people like Alistair Mloud who say, "It's never going to happen. Just forget about it. It's more noise than signal." To people like Vince Lansancy who say, "I believe it must happen." I wonder where you stand and and if the gold was to be revalued, let's say marktomarket or or if you'd like to speculate on perhaps that they would even value it higher, what could its implications be for the gold price, the US dollar in the global economy? >> So, I'm right smack in the middle of uh of um Vince and uh Addis Terry Mloud. Okay. So, I think it might happen, might not. Um, and if you ask me, if they were to do it, it's going to be done in uh at a mark tomarket price. So, why do I say that? Because I've said this many times in the past. If let's say they take arbitrary number like $20,000 orders and they want they revalue physical gold uh US Treasury physical gold. Okay? state can only revalue US treasury physical gold not the gold that me and you hold but essentially when they revalue US treasury physical gold that means everybody like there will be equilibrium right everybody will follow so anyway back to your question um in terms of revaluing market why do I say that that's because number one um if they don't do it at market to market it will be a huge shock to the system right like what I just said in the previous statement which is they can revalue US treasury gold to $20,000 what does that mean that means they prepared to buy physical gold at $20,000 from anybody who is willing to sell it to them at $20,000 >> right >> right that makes sense so so so that's why when You know, if you remember, like a couple weeks ago when when um when the Trump administration said that they were um there was some confusion there um that people were speculating that the Trump administration may actually slap tariffs on physical gold. that to me like you know when I read that I thought that was possible because if let's say they um want to revalue physical gold that I don't know $45,000 right now then they do need to slap tariffs on physical gold for the US you know why is that that bad is because like I just said before right if they revalue it at $45 $5,000 All of a sudden the gold flows will flow into the US. People would want to sell it, sell the physical gold to the US. But if the US have a tariff that you know takes the imported physical gold to the revaluation price then the flows would be in equilibrium. Okay. So what I mean by that, Jesse, just you know, putting all this together, what I mean by that is that if the US want to uh revalue physical gold at a arbitr arbitrary high price to be set, they would need to implement tariffs on physical gold before they do that. so that the um post revaluation uh physical gold flows around the world would be in equilibrium or they can simply revalue physical physical gold at a mark to market price and when they do that there won't be any flow issues right it's just you know like today let's say the gold price is at uh $3,400 they revalue it at 300 $3,400. Therefore, the um you know, flows of physical gold would be the same as before revaluation. There will be no difference. So, so again, like I said, um because I don't see them because they're not slapping terrorists on physical right now, my uh deduction is that they would probably revalue it at a mark to market price. Now the next question is um that's they market they revalue the physical pure US treasury physical gold at mark to market price. What happens? Well once they do that um first of all the US Treasury uh will have a whole bunch of um US dollars free and clear from the Federal Reserve because that's what they do, right? Like every time they revalue physical gold, the uh Federal Reserve would print the increase the value equivalent of that physical gold in US dollars and give it to the US Treasury free and clear. Okay? So you don't need to incur any additional debt in doing that. So they would have like one or two trillion dollars in the uh TGA which is the um US Treasury general account which they can use to um you know alleviate their uh debt situation that they have which is I think pushing $ 38 trillion right now in total national debt. Um, the other thing that will happen is that once they revalue physical gold, let's say at $4,000, $5,000, whatever, whatever that market to market prices at that point when they when they pull the trigger, that will be the um, you know, they essentially set the bottom price for physical gold in US dollars, right? Like I said, because what that means is that um the US US government is saying they're willing to buy any physical gold at that price. >> That makes a lot of sense. Um interesting outlook. Now, if they did mark the gold to market and and use that to cover debt obligations, it would kind of be a drop in the bucket, would it not? >> Well, um it would, but they can do this um multiple times. So they can like for example when Nixon did it, he did it twice. Once in 1971 and once in 1973. So, I think what's going to happen is they might do it once at let's say $4 or $5,000 and then they do a second revaluation at a much higher price which would um bring in um much more US dollars like maybe even $10 trillion which would um solve all the issues essentially with US debt. I want to highlight uh a tweet you made recently where you said the physical gold liquidity squeeze will be worse than the USD liquidity squeeze because they can't print physical gold. They control the paper, not the physical metals that God created. What What do you see as the physical gold liquidity squeeze? Could you break that down for us and its implications for the gold market? >> So, we're not there yet, but um imagine this, right? Like the world right now runs on US dollars. It still does not mean gold is just get kind of getting back into the picture. >> Yeah. >> But everybody uses US dollars, US treasuries as collateral. Um, you know, most people transact in US dollars internationally, right? So when there's a US dollar liquidity squeeze, what happens? Um, in the past, everybody runs to the Fed, right? And then they printo print a whole bunch of money and the system is um again flushed with US dollars and everybody's fine because you can always print fiat money to flush the system with liquidity. Now what happens let's say if the world is running on honest money which is physical gold and we don't need to imagine this because it happened um you know during and before the great depression the US was on the gold standard well you know let's say um the market gets leveraged up everybody's playing with leverage like 1929 and then the system implosed. Your currency is backed with physical gold back in 1929. The only thing you can do is to get somehow get more physical gold to inject into the system or devalue your currency against physical gold, right? Which is um which is essentially what FDL did. um they revalue gold which is essentially uh higher which is essentially devaluing the US dollar. But um looping back to what I said on my tweet, in a world where physical gold becomes the primary um global reserve asset, if there's a physical gold liquidity squeeze, the world is going to be in trouble because they cannot print physical gold like the way they print US dollars to requequify the system. So the way around that Jesse is that governments will have to be honest. They will have to live within their means. There will be no more um you know reserve currency privilege for any one single country. And that's what I meant with my tweet on X. And you think this sort of austerity and fiscal responsibility will ultimately be forced on governments um seeing as obviously they'd fight it tooth and nail unless they absolutely had to do it. I think if you have a whole bunch of whole bunch of countries like the bricks where um nobody is above anybody else. So everybody is trading on equal terms and they're using a neutral reserve asset uh like physical gold as a measure of trade surplus or deficit. It, you're right, it pushes them into austerity because now physical gold is remonetized in the mix where everybody will be looking at that as a uh measuring stick. >> That makes a lot of sense. I I do want to pivot to the gold and silver mining sector for a moment here. both sectors that have been underperforming most investors expectations as gold ripped to all-time highs until the last few months when they've really come to life. As we speak year to date, the GDX and GDXJ ETFs are up over 70% with the SIL up over 65%. Obviously, that's an amazing performance, completely crushing the broad market. Um, vastly outperforming the metals themselves. Of course, we're not hearing anything about it on CNBC or or Jim Kramer's show. I wonder at what point do you think the generalist investor and fund managers become drawn to the gold and silver mining space now that it started to massively outperform uh the big indices? Well, first of all, Jesse, I think um the delay that you mentioned um was due to the fact that um gold miners and silver miners, they their prices, their stock prices react to a average price of gold and silver rather than, you know, let's say if gold and silver spiked to um I'm just going to throw a number out there. let's say $4,000 for gold for like a week and it drop back down to 2,000 let's say, right? So, gold and silver miners might respond to that, but like if it does, it's not going to be it's not going to be sustainable, right? Okay. In the case of the last couple years, it like they didn't even respond at all to any spikes because of what happened in uh 2020 and 2021. Everybody is gunshy including the big players in the space. So what gold and silver miners um look at or their prices or the stock prices look at is a an average price gold and silver over a per period of time. So, let's say if um you know, well, what happens? Let's say gold the gold price is above $3,000 for um 6 months on a continual basis. It's not dumping below $3,000. It stays above $3,000. All of a sudden, your gold miners um you know balance sheet, they are reflecting the new goal price about $3,000. It's not like a one day, two day, one month wonder, right? It's it's sustainable month after month after month. So what I'm trying to say is if your audience know a little bit about charting the stocks you know if the 150day moving average moves up eventually that will reflect on the um prices of uh gold and silver miners which what that's what we saw in the last uh couple months. Okay, for example, just give you a personal example, my miners, um, I own a lot of miners, gold and silver, and the amount of profit that I that I made on paper for my gold and silver miners doubled in the last two or three months. I'm not the only one. I mean, I talked to a lot of people. Um, some people and they some people are like, you know, they are the uh host of different shows like yours, right? >> Yeah. They're telling me that their miners went up 200%. You know, because they bought like most of them at like at the lows in 2023. I mean, if you're smart enough to do that, it's not um unbelievable that you're making, you know, 300% gains on average on your miners. So, anyway, back to um your question, when are the general investors going to jump in? So I think the fact that the uh ETFs are making good gains like like you mentioned let's say just say around 70%. For the uh GLD and SLB or sorry not GSLB GDX and SIL most of the minor ETFs. >> Yeah. Um, I think I think um that's a good start, but I think really what needs to happen is for gold and silver to break some big numbers, okay? Like some big barriers. Like for example, if gold breaks about $4,000 and silver break about 50, okay, then you see um the hash funds, the may maybe even the institutions, the bigger institutions jump in into um into the miners and then they will really start flying. That's what I see. Well, I want to cover a few other pieces of news out of China and get your thoughts. Um, one is that the government is encouraging and incentivizing citizens to purchase gold. I'd love to hear your take on that, whether that's true or false and and to what extent that's actually happening. And the second is Chinese insurance companies are now being allowed to invest in gold. How big of an implication could that have? because obviously being allowed to and then actually investing in gold are two different things. Are these insurance companies actually taking action and taking advantage of that? Um what what is actually going on as you are boots on the ground in China? So first of all, China is encouraging it citizen citizens to buy physical gold because because earlier this year, China um started allowing um its commercial banks, the big five and I believe a lot more commercial banks have follow suit since then to uh start these um you know gold accumulate programs which are essentially like a um like a gold savings account. So, you can, you know, imagine this. You have a savings account, you put money in, you're buying fractional gold, and then once you hit, let's say, a certain threshold, um, whatever their smallest goal buys that they have in inventory, let's say 10 grams, you can withdraw the physical gold from the bank. So, that's that's pretty amazing, Jesse, because why do I say that? In the past, um, yeah, China has a lot of people buying gold, but the, um, but the premiums were not super low because you're buying it in a form for form of jewelry at the jewelry stores. At the banks, you're paying uh, super low premiums like below 3%. And a lot less in some cases. in Hong Kong um you know with Wingfung the you know the Hong Kong gold exchange smelter now saying that they will they will um sell directly to the public you're essentially paying less than 1% premium on physical gold >> so all this Jesse all this okay >> what what the Chinese government's telling you action not just worse they're telling you that all the choke points in in in the past I call them choke points Because if a government tells you that like gold is uh you know a a commodity a um a um you know investment vehicle whatever they call it that is um freely available free free flowing whatever they call it. They can say all that all they want. But if they make it difficult for you to buy by having high premiums, okay? If they if they do that then it's just all talk and and I have to admit like even with China and Hong Kong in the past they had these choke points points okay where they do encourage people to buy gold but when you do want to buy cheap premium gold sometimes it's not available right so so if you so if you you if let's say I'm a consumer I want to buy physical gold after the money but the low premium gold is not available. What does that what does that tell you about that market? It's not functioning properly. They're choke points. So let's get back to today with this uh gold committee program with wing fun. What they're telling you by the action is that they're removing all these choke points just like the earlier story with Vietnam. What Vietnam is doing. they're beginning to remove these choke points where what they're saying is that in the future um physical gold is going to be uh freely uh is going to be freely um flowed within the system without any big choke points to stop it. So I love to get back to this example that people understand. Um you know about the Hunt brothers, right? >> Yeah, >> Jesse, >> in the uh 1980s and 1980, right? When when gold went to 50 bucks, what what did what did the US government do? They jacked up um the margin requirements at the comx and they also um you know did not allow any buy orders as I understand it was sell only at one point. Okay. So basically they're putting this huge hook point this barrier um at the callax in such a way that the uh physical silver price crashed. Okay. So what we seeing with Hong Kong and China right now at least on the ret retail side as you because you asked me that question what's happening with retail customers we see these choke points being removed and um I see that China is going to be buying a lot more physical gold in the future and it's already really busy right now. If you go down to Shenzhen to the gold market is like packed every day. So I think that covers the retail side and then the insurance side. You're correct. Chinese government announced that the insurance companies can use up to 1% of their assets under management to buy physical gold. Now that's a huge deal because that translates to 350 metric tons of physical gold purchasing from these insurance companies per year. Now, to give you some perspective, the Shanghai Gold Exchange um delivers around 1,450 tons of physical gold per year before this. So, that's what that's 25% right off the bat increase of physical gold demand on top of what China uh the SG SG did uh last year and the year before that. And if you ask me whether or not the uh Chinese insurance companies are using up to 1%. As far as I understand, they are. And that number can uh eventually get up to potentially 5%. Or even 10%. Imagine that. Well, let's end by taking a step back from the precious metals space and I'd like to ask you if there's any other areas of the market outside of gold and silver that you're currently seeing value in. Whether that's in the commodity space, we hear a lot about a coming commodity super cycle. Obviously, we talk about that a lot on on this show. Um, or whether that's areas outside of the commodity space that you're potentially seeing value. Um, where where else are you looking outside of gold and silver? So I own uh platinum, uranium and copper um in the form of um uranium miners. Um platinum I own some physical platinum and uh copper I own some uh copper miners. So it all goes back to what we touched on earlier in the program where the US government is now um declaring a lot of these um minerals and commodities as strategic and um in terms of um uranium is a really important strategic metal because that's where the base power comes in for both the US and China especially China because China is trying to um lessen its dependence on crude oil because China is a net importer of crude oil. So let's say um the China and the US um end up being in armed conflict down the road or not even that let's say like a cold war escalated cold war and the US blocked the uh strait of Mala well how is China going to get um oil from Saudi Arabia at that point so it makes sense for a country like China to develop um is nuclear power facilities and in fact China is doing that. I mean like I think you know China is planning 20 or more new nuclear reactors to be online in the near future. So that's why I'm bullish uranium. I own a lot of uranium stocks and copper well simple. Copper is AI um EV, right? Anything high-tech requires a lot of copper. So, I own uh some copper stocks and then um platinum is such a small market. Um Jesse is like something like 60 times more rare than physical gold, but it's at what like onethird the price right now of physical gold. Not one/3, maybe like maybe less than half, right? But um but it's a no-brainer build to some own some platinum. Eventually I think platinum will revert to mean which means that it will be at least at the same price of physical gold. >> Well Eric for people who want to follow your work is the best place to go X where they can follow you at King Kong98. Is there anywhere else you'd like to direct people and any parting words that you have? >> Well uh that's where they can find me Jesse. That's the best place. And um I put my daily force on uh gold, silver, uranium, etc. on my ex account. And um my parting words to your audience is that it's actually not too late to get into the gold and silver space. If you do not own physical gold and silver already, I would suggest that you know whoever is in that predicament, start stacking gold and silver, physical gold and silver and they can do it on a um dollar cost average manner. So don't put all your money you know in it immediately at once. do it in a um dollar cost average um you know approach so that um you know let's say if even if the price of gold and silver corrects in the near term you will have um a lot of cash to take advantage of that correction to um to utilize your cash into gold and silver. >> Yeah, that is great parting words of wisdom. I completely agree with you. Thank you so much, Eric, for coming on the show. There will be a link uh in the description below to your account on X so people can follow you there and really appreciate you coming on and sharing your knowledge with the audience. >> Thank you, Jesse. >> Thank you for joining us today. Take advantage of Arc Silver Gold Osmium special silver kangaroos 2023 1oz coins at only $247 over spot. Silver maple leaves 2025 1oz coins just $2.87 over spot. while supplies last. Call owner Ian Everard today at 307264-9441 or by email at ianarchsg.com and make sure to tell him that Commodity Culture sent you. And pick up your Commodity Culture merch using the link in the description below. Everything backed by a 100% quality guarantee. And I'll see you guys in the next episode. Commodity Culture is a series on commodities and natural resources. If you would like to see more, be sure to subscribe and hit the bell notification so you're always up tod date with the latest episodes.
Who Dropped $1B on GOLD in a Single Trade? 'Something BIG is Coming': Eric Yeung
Summary
Transcript
Hello everybody and welcome into commodity culture where our goal is to make you a better investor in the commodities sector. My name is Jesse Day and on this episode I'm excited to welcome Eric Young to the program known as King Kong 98 on X where he discusses geopolitical and economic effects on precious metals and commodities. Who made the biggest single trade in the history of the GLD ETF at $1 billion? And what could the implications be? We discussed this along with the Saudi central bank taking a stake in silver. Could this trend accelerate? And could silver soon be stacked alongside gold by central banks around the world? The silver and gold miners have started to rip? How big could this bull market be? And is this just the beginning of an epic rise for the mining stocks? All of this and so much more ahead. So strap yourselves in for my conversation with Eric Young. Eric Young, great to have you on Commodity Culture. I want to kick things off with the silver space and some big news there and that is that silver has now been added to the Department of the Interiors 2025 list of critical minerals, platinum also being included. What are your thoughts on this addition? Do you think this could have a big impact on the demand side for silver and ultimately for the silver price? >> So, uh, first of all, thank you for having me on your show, Jesse. So, um, my thinking is this. I've been telling people for the longest time that, um, the the fact that the silver price is so low, I mean, a lot of people say it's suppressed. I'm I'm in that camp myself. Actually benefited China in the last um 30 or so years because China is the primarily primary um manufacturer of um electronics and goods that need to utilize silver. Okay. So I think um you know like I said in the last 30 years um the bullion banks like JP Morgan, HSBC, Goldman Sachs they may have been you know working with China to suppress the price of silver to keep it in check so that um you know the the um the miners they don't starve to death but they make a little bit of a margin over their costs of mining and that silver goes to China to be made into manufactured goods and shipped back to the US and the rest of the world where the US and the rest of the world make uh makes the biggest margin of that um manufacturing value chain. So what's happening right now is is something that actually predicted um I guess a year ago a year or two years ago. What I mean by that is something changed in in the last year. Um we all know that um Donald Trump is now slapping tariffs on everybody especially China. So what that tells me is that um essentially uh China is you know especially in the uh in the eyes of the US is no longer going to be going forward the prim primary manufacturing hub for it imports. Therefore, and um my logic uh goes as such, um you know, if China is not going to be the primary manufacturing hub for the US or potentially maybe the West, why suppress the price of silver to assist China to keep uh things cheap because now you you see what I'm saying? You're competing with China with your own domestic manufacturer products, right? So this, you know, looping back to what you what you reported just now, the um the fact that silver is proposed to be on the uh strategic metals uh or commodity list of the uh department of uh interior in the US. That is a signal telling us that the US government is no longer willing to subsidize China with cheap silver. That's what that means. So instead of subsidizing China with cheap silver, the US is going to be competing with China to get the silver in its jurisdiction. >> Very interesting. I was going to ask this later, but it connects to what you just said, so let's jump ahead to it. And that is reports that I've heard from a number of guests on this show that representatives from China are flying around the world. I think a lot of the reports are coming from South America and they're buying silver concentrate directly from miners. Does this also tie in into this situation that you've just laid out for us? >> Absolutely, Jesse. That just like, you know, I mean, exactly is a symptom of what I just talked about, right? So now you have um the US and everybody essentially competing for strategic minerals and commodities um and you know voila you see China going directly through the source to secure future you know um impulse of um physical silver. So that's just really like you know like like what I just said is a symptom of the grand scheme of things which is we're no longer in a um globalized um manufacturing value chain where China is the um world factory manufacturing everything for everybody. The US is trying to reshore manufacturing. Therefore, declaring um physical silver and other minerals and metals as strategic and therefore China is no longer relying on western uh supply chains, right? China is going directly to places like Peru to secure the um strategic minerals like silver at its source. And I want to also bring up an interesting news item that came across X recently and that was the purchase by the Saudi central bank of 932,000 shares of the SLV ETF. The knock on silver or one of the knocks on silver versus gold has been well central banks aren't buying silver. Now let's not you know celebrate at this point. This is very difficult or sorry very different than them taking possession of a large amount of actual physical silver and standing for delivery. Um but it is a fascinating development. I wonder what your thoughts are. Do you think we could see more central banks follow suit and perhaps eventually start stacking physical silver? >> So that's a very good um you know interesting development, Jesse. Right. Saudi Arabia, central bank of Saudi Arabia buying a big chunk of SLV. Now, I just want to add that what that means is that I know they're not directly buying physical silver, but because they're such a big player, the big buyer of SLV, that means they are a an authorized participant. Okay, which means that they can actually withdraw physical silver from the SLV v. So, so it's not direct, but it's like a step, you know, like just basically um one step detached from them actually own owning the actual physical silver. Now, in terms of my um analysis of the situation and um what I think is actually happening, well, this is very interesting, Jesse, because um the Shanghai gold exchange earlier this year has um well, the Chinese government and the Shanghai gold exchange have announced that they're going to start um basically establishing offshore for um SG V. So, so right now like you know um the vault of the SG for gold and silver they are located uh all over China mainly around Shanghai. Um since they made this announcement they have started um setting up a vault in Hong Kong. So in terms of like you know you told me off camera Jesse that you had traveled around China in the past and you're pretty familiar with the place. So you know that to the mainland Chinese I mean even though Hong Kong is part of China um economically speaking you know um in terms of the their legal systems Hong Kong is offshore to mainland China so it's a big deal they set up um this year it's already begun an offshore vault in Hong Kong. Now there has been uh have been rumors in China that the next destination of um a SGE Shanghai gold exchange offshore vault for gold and silver. There's been rumors saying that that's going to be in Saudi Arabia. You see? Okay. Now, why is that important? Why is that important? because you know I'm sure you heard um you know this from other experts like Luke Roman who has um talked about this uh many times which is the BRICS countries that is that includes China, Russia, India etc. They're trying to I wouldn't use the word um you know I mean to put it simply is the dollarization right so they don't want to use the US dollar as the middleman they want to deal directly with each other using the local um domestic currencies but um there's there's a problem there right because um you got trade bidances with these different countries So uh some of these uh countries may not want to hold um some foreign domestic currency. I mean like you know we got to admit the US dollars for all the flaws that it that it has it has been functioning as a global reserve currency global reserve asset for the last 50 years. So that worked right now you're jumping into local domestic currencies. there needs to be something that is neutral to all these players that they can settle in and that thing is physical gold. So by establishing an a uh an offshore vault for the SGE, what China is saying is that um you know Saudi Arabia will deal with you guys in R&B but if you have access R&B by selling us oil, right? China buys crude oil from Saudi Arabia. So Saudi Arabia has a whole bunch of R&B, right? So if you use Saudi Arabia, you don't want to keep that much R&B. We are setting up a physical gold and silver vault in Saudi Arabia where you can convert that RMB, yen, okay, Chinese, which is the Chinese currency into physical gold and silver in your jurisdiction. Okay. All right. Because I mean like all the um the people who were um who were against this theoretically, right? I'm talking about just um people on X uh in the past when this idea bounced around. They were saying uh well the gold and silver is in China physically. We can't trust the Chinese. So the Chinese maybe they heard all these concerns, right? They're saying fine, you don't trust us, we'll put the vote in the countries um who we dealing with. So your news there with Saudi Arabia buying SLV, okay, it might just be another symptom of you know this physical golden offshore physical gold and silver um vault that China is establishing. Okay, >> that's what I'm seeing. >> And now a quick break to hear from our sponsor. Ark Silver Gold Obium owner Ian Everard is considered one of the most honest and levelheaded gold and silver dealers in the United States. Praised even by his competitors. So give him a call today to take advantage of the specials right now. Silver Kangaroos 2023 1oz coins mint fresh only $247 over spot. Mint fresh silver maple leaves 2025 coins 1 ounce $2.87 over spot while supplies last. Reach out today at 3072649441 or by email at ianarchsggo.com and make sure to tell him that commodity culture sent you. And now back to the interview. Yeah, that's very interesting because you're right. A lot of the discourse around the BRICS countries potentially trading in gold with each other has been well they don't trust each other. These are completely different cultures. The these political leaders are not you know compatible with each other in terms of of establishing levels of trust. But the methodology you've outlined with uh the vaults actually being located within member countries makes a ton of sense. I want to shift over to some other news that just dropped recently. I'm going to read this post on X by Mr. Uppy. He said, "Someone just dropped 1 billion into GLD in a single dark pool block. Largest trade in its history. Who was it? Saudis stacking? America fighting fiat collapse? Black Rockck sneaking in? Gold chess pieces are moving. Who could this possibly be and why? Now, what is your assessment of this massive trade in the GLD? And any speculation as to who it could be?" So before I comment on this, I want to I want to just read some details for you for your audience, right? Um this trade that you just you just talked about the relative size of this trade is7 times larger than the average CLLD trader, >> right? >> Okay. Like it's just, you know, unbelievable, right? Like I mean I need to um cross check this data and make sure it's legit but um from where I'm sitting where I'm looking at it looks legit. Um anyway another piece of information relating to this and this is the largest GLD trade since it began trading um since 2004. Isn't that amazing? So if you ask me Jesse like something some somebody from somewhere knows something is going to happen. That's what this tells me. And then you know combined with the fact that just right before I got on this interview with you today, okay, somebody dropped another piece of news on my desk and it says that Vietnam, okay, the country have just announced that they're going to um essentially take down the barriers to physical gold trading in the country. So if you if you know in the past like you know physical gold in Vietnam is tightly controlled by by the Vietnamese government. So now they're saying uh private enterprises can uh buy, sell, trade, import and also smelt physical gold. Okay. And then another piece of news that um that kind of floated floated around yesterday which is the um China has been accelerating its goal impulse physical gold impulse through Hong Kong. So in my opinion all these things are not coincidences. What we seeing here, Jesse, is that the world, like I said earlier in the program, is in the process of remmonetizing physical gold as an international reserve asset in place of US treasuries. And what we're seeing, what you're reporting and what I just told you, told your audience are all symptoms of this. They're simply symptoms of a bigger picture of physical gold slowly getting back into the world monetary system. >> I think that dovetales very well into the next question, which is revaluing gold. Do you think the United States could potentially revalue its gold reserves? If so, what would this actually accomplish? This is an interesting question because I get all sorts of responses from different guests from people like Alistair Mloud who say, "It's never going to happen. Just forget about it. It's more noise than signal." To people like Vince Lansancy who say, "I believe it must happen." I wonder where you stand and and if the gold was to be revalued, let's say marktomarket or or if you'd like to speculate on perhaps that they would even value it higher, what could its implications be for the gold price, the US dollar in the global economy? >> So, I'm right smack in the middle of uh of um Vince and uh Addis Terry Mloud. Okay. So, I think it might happen, might not. Um, and if you ask me, if they were to do it, it's going to be done in uh at a mark tomarket price. So, why do I say that? Because I've said this many times in the past. If let's say they take arbitrary number like $20,000 orders and they want they revalue physical gold uh US Treasury physical gold. Okay? state can only revalue US treasury physical gold not the gold that me and you hold but essentially when they revalue US treasury physical gold that means everybody like there will be equilibrium right everybody will follow so anyway back to your question um in terms of revaluing market why do I say that that's because number one um if they don't do it at market to market it will be a huge shock to the system right like what I just said in the previous statement which is they can revalue US treasury gold to $20,000 what does that mean that means they prepared to buy physical gold at $20,000 from anybody who is willing to sell it to them at $20,000 >> right >> right that makes sense so so so that's why when You know, if you remember, like a couple weeks ago when when um when the Trump administration said that they were um there was some confusion there um that people were speculating that the Trump administration may actually slap tariffs on physical gold. that to me like you know when I read that I thought that was possible because if let's say they um want to revalue physical gold that I don't know $45,000 right now then they do need to slap tariffs on physical gold for the US you know why is that that bad is because like I just said before right if they revalue it at $45 $5,000 All of a sudden the gold flows will flow into the US. People would want to sell it, sell the physical gold to the US. But if the US have a tariff that you know takes the imported physical gold to the revaluation price then the flows would be in equilibrium. Okay. So what I mean by that, Jesse, just you know, putting all this together, what I mean by that is that if the US want to uh revalue physical gold at a arbitr arbitrary high price to be set, they would need to implement tariffs on physical gold before they do that. so that the um post revaluation uh physical gold flows around the world would be in equilibrium or they can simply revalue physical physical gold at a mark to market price and when they do that there won't be any flow issues right it's just you know like today let's say the gold price is at uh $3,400 they revalue it at 300 $3,400. Therefore, the um you know, flows of physical gold would be the same as before revaluation. There will be no difference. So, so again, like I said, um because I don't see them because they're not slapping terrorists on physical right now, my uh deduction is that they would probably revalue it at a mark to market price. Now the next question is um that's they market they revalue the physical pure US treasury physical gold at mark to market price. What happens? Well once they do that um first of all the US Treasury uh will have a whole bunch of um US dollars free and clear from the Federal Reserve because that's what they do, right? Like every time they revalue physical gold, the uh Federal Reserve would print the increase the value equivalent of that physical gold in US dollars and give it to the US Treasury free and clear. Okay? So you don't need to incur any additional debt in doing that. So they would have like one or two trillion dollars in the uh TGA which is the um US Treasury general account which they can use to um you know alleviate their uh debt situation that they have which is I think pushing $ 38 trillion right now in total national debt. Um, the other thing that will happen is that once they revalue physical gold, let's say at $4,000, $5,000, whatever, whatever that market to market prices at that point when they when they pull the trigger, that will be the um, you know, they essentially set the bottom price for physical gold in US dollars, right? Like I said, because what that means is that um the US US government is saying they're willing to buy any physical gold at that price. >> That makes a lot of sense. Um interesting outlook. Now, if they did mark the gold to market and and use that to cover debt obligations, it would kind of be a drop in the bucket, would it not? >> Well, um it would, but they can do this um multiple times. So they can like for example when Nixon did it, he did it twice. Once in 1971 and once in 1973. So, I think what's going to happen is they might do it once at let's say $4 or $5,000 and then they do a second revaluation at a much higher price which would um bring in um much more US dollars like maybe even $10 trillion which would um solve all the issues essentially with US debt. I want to highlight uh a tweet you made recently where you said the physical gold liquidity squeeze will be worse than the USD liquidity squeeze because they can't print physical gold. They control the paper, not the physical metals that God created. What What do you see as the physical gold liquidity squeeze? Could you break that down for us and its implications for the gold market? >> So, we're not there yet, but um imagine this, right? Like the world right now runs on US dollars. It still does not mean gold is just get kind of getting back into the picture. >> Yeah. >> But everybody uses US dollars, US treasuries as collateral. Um, you know, most people transact in US dollars internationally, right? So when there's a US dollar liquidity squeeze, what happens? Um, in the past, everybody runs to the Fed, right? And then they printo print a whole bunch of money and the system is um again flushed with US dollars and everybody's fine because you can always print fiat money to flush the system with liquidity. Now what happens let's say if the world is running on honest money which is physical gold and we don't need to imagine this because it happened um you know during and before the great depression the US was on the gold standard well you know let's say um the market gets leveraged up everybody's playing with leverage like 1929 and then the system implosed. Your currency is backed with physical gold back in 1929. The only thing you can do is to get somehow get more physical gold to inject into the system or devalue your currency against physical gold, right? Which is um which is essentially what FDL did. um they revalue gold which is essentially uh higher which is essentially devaluing the US dollar. But um looping back to what I said on my tweet, in a world where physical gold becomes the primary um global reserve asset, if there's a physical gold liquidity squeeze, the world is going to be in trouble because they cannot print physical gold like the way they print US dollars to requequify the system. So the way around that Jesse is that governments will have to be honest. They will have to live within their means. There will be no more um you know reserve currency privilege for any one single country. And that's what I meant with my tweet on X. And you think this sort of austerity and fiscal responsibility will ultimately be forced on governments um seeing as obviously they'd fight it tooth and nail unless they absolutely had to do it. I think if you have a whole bunch of whole bunch of countries like the bricks where um nobody is above anybody else. So everybody is trading on equal terms and they're using a neutral reserve asset uh like physical gold as a measure of trade surplus or deficit. It, you're right, it pushes them into austerity because now physical gold is remonetized in the mix where everybody will be looking at that as a uh measuring stick. >> That makes a lot of sense. I I do want to pivot to the gold and silver mining sector for a moment here. both sectors that have been underperforming most investors expectations as gold ripped to all-time highs until the last few months when they've really come to life. As we speak year to date, the GDX and GDXJ ETFs are up over 70% with the SIL up over 65%. Obviously, that's an amazing performance, completely crushing the broad market. Um, vastly outperforming the metals themselves. Of course, we're not hearing anything about it on CNBC or or Jim Kramer's show. I wonder at what point do you think the generalist investor and fund managers become drawn to the gold and silver mining space now that it started to massively outperform uh the big indices? Well, first of all, Jesse, I think um the delay that you mentioned um was due to the fact that um gold miners and silver miners, they their prices, their stock prices react to a average price of gold and silver rather than, you know, let's say if gold and silver spiked to um I'm just going to throw a number out there. let's say $4,000 for gold for like a week and it drop back down to 2,000 let's say, right? So, gold and silver miners might respond to that, but like if it does, it's not going to be it's not going to be sustainable, right? Okay. In the case of the last couple years, it like they didn't even respond at all to any spikes because of what happened in uh 2020 and 2021. Everybody is gunshy including the big players in the space. So what gold and silver miners um look at or their prices or the stock prices look at is a an average price gold and silver over a per period of time. So, let's say if um you know, well, what happens? Let's say gold the gold price is above $3,000 for um 6 months on a continual basis. It's not dumping below $3,000. It stays above $3,000. All of a sudden, your gold miners um you know balance sheet, they are reflecting the new goal price about $3,000. It's not like a one day, two day, one month wonder, right? It's it's sustainable month after month after month. So what I'm trying to say is if your audience know a little bit about charting the stocks you know if the 150day moving average moves up eventually that will reflect on the um prices of uh gold and silver miners which what that's what we saw in the last uh couple months. Okay, for example, just give you a personal example, my miners, um, I own a lot of miners, gold and silver, and the amount of profit that I that I made on paper for my gold and silver miners doubled in the last two or three months. I'm not the only one. I mean, I talked to a lot of people. Um, some people and they some people are like, you know, they are the uh host of different shows like yours, right? >> Yeah. They're telling me that their miners went up 200%. You know, because they bought like most of them at like at the lows in 2023. I mean, if you're smart enough to do that, it's not um unbelievable that you're making, you know, 300% gains on average on your miners. So, anyway, back to um your question, when are the general investors going to jump in? So I think the fact that the uh ETFs are making good gains like like you mentioned let's say just say around 70%. For the uh GLD and SLB or sorry not GSLB GDX and SIL most of the minor ETFs. >> Yeah. Um, I think I think um that's a good start, but I think really what needs to happen is for gold and silver to break some big numbers, okay? Like some big barriers. Like for example, if gold breaks about $4,000 and silver break about 50, okay, then you see um the hash funds, the may maybe even the institutions, the bigger institutions jump in into um into the miners and then they will really start flying. That's what I see. Well, I want to cover a few other pieces of news out of China and get your thoughts. Um, one is that the government is encouraging and incentivizing citizens to purchase gold. I'd love to hear your take on that, whether that's true or false and and to what extent that's actually happening. And the second is Chinese insurance companies are now being allowed to invest in gold. How big of an implication could that have? because obviously being allowed to and then actually investing in gold are two different things. Are these insurance companies actually taking action and taking advantage of that? Um what what is actually going on as you are boots on the ground in China? So first of all, China is encouraging it citizen citizens to buy physical gold because because earlier this year, China um started allowing um its commercial banks, the big five and I believe a lot more commercial banks have follow suit since then to uh start these um you know gold accumulate programs which are essentially like a um like a gold savings account. So, you can, you know, imagine this. You have a savings account, you put money in, you're buying fractional gold, and then once you hit, let's say, a certain threshold, um, whatever their smallest goal buys that they have in inventory, let's say 10 grams, you can withdraw the physical gold from the bank. So, that's that's pretty amazing, Jesse, because why do I say that? In the past, um, yeah, China has a lot of people buying gold, but the, um, but the premiums were not super low because you're buying it in a form for form of jewelry at the jewelry stores. At the banks, you're paying uh, super low premiums like below 3%. And a lot less in some cases. in Hong Kong um you know with Wingfung the you know the Hong Kong gold exchange smelter now saying that they will they will um sell directly to the public you're essentially paying less than 1% premium on physical gold >> so all this Jesse all this okay >> what what the Chinese government's telling you action not just worse they're telling you that all the choke points in in in the past I call them choke points Because if a government tells you that like gold is uh you know a a commodity a um a um you know investment vehicle whatever they call it that is um freely available free free flowing whatever they call it. They can say all that all they want. But if they make it difficult for you to buy by having high premiums, okay? If they if they do that then it's just all talk and and I have to admit like even with China and Hong Kong in the past they had these choke points points okay where they do encourage people to buy gold but when you do want to buy cheap premium gold sometimes it's not available right so so if you so if you you if let's say I'm a consumer I want to buy physical gold after the money but the low premium gold is not available. What does that what does that tell you about that market? It's not functioning properly. They're choke points. So let's get back to today with this uh gold committee program with wing fun. What they're telling you by the action is that they're removing all these choke points just like the earlier story with Vietnam. What Vietnam is doing. they're beginning to remove these choke points where what they're saying is that in the future um physical gold is going to be uh freely uh is going to be freely um flowed within the system without any big choke points to stop it. So I love to get back to this example that people understand. Um you know about the Hunt brothers, right? >> Yeah, >> Jesse, >> in the uh 1980s and 1980, right? When when gold went to 50 bucks, what what did what did the US government do? They jacked up um the margin requirements at the comx and they also um you know did not allow any buy orders as I understand it was sell only at one point. Okay. So basically they're putting this huge hook point this barrier um at the callax in such a way that the uh physical silver price crashed. Okay. So what we seeing with Hong Kong and China right now at least on the ret retail side as you because you asked me that question what's happening with retail customers we see these choke points being removed and um I see that China is going to be buying a lot more physical gold in the future and it's already really busy right now. If you go down to Shenzhen to the gold market is like packed every day. So I think that covers the retail side and then the insurance side. You're correct. Chinese government announced that the insurance companies can use up to 1% of their assets under management to buy physical gold. Now that's a huge deal because that translates to 350 metric tons of physical gold purchasing from these insurance companies per year. Now, to give you some perspective, the Shanghai Gold Exchange um delivers around 1,450 tons of physical gold per year before this. So, that's what that's 25% right off the bat increase of physical gold demand on top of what China uh the SG SG did uh last year and the year before that. And if you ask me whether or not the uh Chinese insurance companies are using up to 1%. As far as I understand, they are. And that number can uh eventually get up to potentially 5%. Or even 10%. Imagine that. Well, let's end by taking a step back from the precious metals space and I'd like to ask you if there's any other areas of the market outside of gold and silver that you're currently seeing value in. Whether that's in the commodity space, we hear a lot about a coming commodity super cycle. Obviously, we talk about that a lot on on this show. Um, or whether that's areas outside of the commodity space that you're potentially seeing value. Um, where where else are you looking outside of gold and silver? So I own uh platinum, uranium and copper um in the form of um uranium miners. Um platinum I own some physical platinum and uh copper I own some uh copper miners. So it all goes back to what we touched on earlier in the program where the US government is now um declaring a lot of these um minerals and commodities as strategic and um in terms of um uranium is a really important strategic metal because that's where the base power comes in for both the US and China especially China because China is trying to um lessen its dependence on crude oil because China is a net importer of crude oil. So let's say um the China and the US um end up being in armed conflict down the road or not even that let's say like a cold war escalated cold war and the US blocked the uh strait of Mala well how is China going to get um oil from Saudi Arabia at that point so it makes sense for a country like China to develop um is nuclear power facilities and in fact China is doing that. I mean like I think you know China is planning 20 or more new nuclear reactors to be online in the near future. So that's why I'm bullish uranium. I own a lot of uranium stocks and copper well simple. Copper is AI um EV, right? Anything high-tech requires a lot of copper. So, I own uh some copper stocks and then um platinum is such a small market. Um Jesse is like something like 60 times more rare than physical gold, but it's at what like onethird the price right now of physical gold. Not one/3, maybe like maybe less than half, right? But um but it's a no-brainer build to some own some platinum. Eventually I think platinum will revert to mean which means that it will be at least at the same price of physical gold. >> Well Eric for people who want to follow your work is the best place to go X where they can follow you at King Kong98. Is there anywhere else you'd like to direct people and any parting words that you have? >> Well uh that's where they can find me Jesse. That's the best place. And um I put my daily force on uh gold, silver, uranium, etc. on my ex account. And um my parting words to your audience is that it's actually not too late to get into the gold and silver space. If you do not own physical gold and silver already, I would suggest that you know whoever is in that predicament, start stacking gold and silver, physical gold and silver and they can do it on a um dollar cost average manner. So don't put all your money you know in it immediately at once. do it in a um dollar cost average um you know approach so that um you know let's say if even if the price of gold and silver corrects in the near term you will have um a lot of cash to take advantage of that correction to um to utilize your cash into gold and silver. >> Yeah, that is great parting words of wisdom. I completely agree with you. Thank you so much, Eric, for coming on the show. There will be a link uh in the description below to your account on X so people can follow you there and really appreciate you coming on and sharing your knowledge with the audience. >> Thank you, Jesse. >> Thank you for joining us today. Take advantage of Arc Silver Gold Osmium special silver kangaroos 2023 1oz coins at only $247 over spot. Silver maple leaves 2025 1oz coins just $2.87 over spot. while supplies last. Call owner Ian Everard today at 307264-9441 or by email at ianarchsg.com and make sure to tell him that Commodity Culture sent you. And pick up your Commodity Culture merch using the link in the description below. Everything backed by a 100% quality guarantee. And I'll see you guys in the next episode. Commodity Culture is a series on commodities and natural resources. If you would like to see more, be sure to subscribe and hit the bell notification so you're always up tod date with the latest episodes.