Banks Go Long As Silver Soars To All-Time Highs | Andy Schectman

Key Concepts

• Silver Market Dynamics: Focus on JP Morgan’s shift from shorting to going long on silver, Comex deliveries, and industrial demand (the “gif and good” phenomenon).
• Green Confiscation Concerns: Debunking of AI-generated claims about silver confiscation and clarification of HR9847.
• Bricks & Geopolitical Shifts: Discussion of the BRICS expansion, the potential for a new reserve currency backed by gold, and the US’s evolving relationships with China and Russia.
• Digital Currency & US Financial Policy: Analysis of the Genius Act, stablecoins, and the potential impact on the US dollar and gold/silver demand.
• Comex & Physical Silver: Examination of the movement of silver out of Comex registered inventories and the implications for price discovery.

Market Update & Geopolitical Analysis – December 15th, 2025

This discussion between Kaiser Johnson of Liberty and Finance and Miles Franklin CEO Andy Schechman provides a detailed market update focusing on precious metals, particularly silver, and the broader geopolitical landscape influencing these markets. The conversation, recorded on December 15th, 2025, covers concerns about potential government intervention, the shifting balance of global economic power, and the implications for investors.

I. Debunking “Green Confiscation” Claims & HR9847

The discussion began by addressing circulating claims of impending silver confiscation, fueled by a viral video. Schechman firmly dismissed these claims as largely based on misinformation and AI-generated content. He specifically refuted the assertion that HR9847 mandates reporting of private precious metal holdings, clarifying that the bill actually pertains to early childhood education and amends the Higher Education Act of 1965. He emphasized that the classification of metals as “strategic” or “critical” was done through an executive order under President Trump, focused on expediting energy infrastructure projects, and does not involve mandatory reporting or government acquisition. He further clarified that Form 8300 applies to large cash transactions in retail settings (over $10,000) and not to precious metals purchases, even substantial ones made via wire or check.

II. JP Morgan’s Silver Position & Comex Dynamics

A central theme was the dramatic shift in JP Morgan’s position on silver. Schechman highlighted a report from the Economic Times indicating JP Morgan holds over 750 million ounces of physical silver (valued at over $40 billion) and has transitioned from being the largest short seller to the largest buyer in the market. This involved adding 21 million ounces while simultaneously closing a 200 million ounce paper short position. This action is interpreted as removing downward pressure on prices and signaling a bullish outlook.

Furthermore, the discussion detailed significant movements within the Comex system:

• 16.6 million ounces of silver were removed from registered inventory, with an unknown destination.
• 169 million ounces were moved into a “non-deliverable vault,” technically still existing on paper but removed from the delivery system.
• Record Comex Deliveries: November saw unusually high deliveries (almost 17 million ounces of silver and 1.5 million ounces of gold), and December (as of the 12th) already reached 58 million ounces of silver and 3 million ounces of gold, with contracts continuing to be added. Schechman emphasized that the scale of these deliveries – requiring billions of dollars monthly – indicates informed traders anticipating future events.
• Margin Increases: Comex is raising margins to curb speculation and slow deliveries, but this is proving ineffective as buyers are largely cash-funded and not reliant on leverage.

III. Industrial Demand & the “Gif and Good” Phenomenon

Schechman explained the concept of “gif and good” in relation to silver, meaning that as the price increases, demand also increases due to its essential role in various industries (Tesla, iPhones, solar panels, military applications). This inelastic demand means that industrial users are willing to pay whatever price is necessary to secure silver for their production processes. He cited reports of Samsung negotiating silver supply deals in Mexico as an example.

IV. Geopolitical Shifts: BRICS, China, and the US

The conversation then shifted to the broader geopolitical context, focusing on the rise of the BRICS nations and their challenge to the US dollar’s dominance. Key points included:

• BRICS Expansion: 50 countries have expressed interest in joining BRICS, with 23 formally applying.
• Shanghai Metals Exchange & Yuan Internationalization: China is expanding its metals exchange network, facilitating trade in yuan and reducing reliance on the US dollar.
• The “Unit” Currency: The BRICS are developing a new reserve currency (“the unit”) backed 40% by gold and 60% by BRICS currencies, settling trade imbalances in gold.
• US Strategic Reassessment: A leaked US national security strategy draft suggests a potential shift towards a “core five” power structure including the US, China, Russia, India, and Japan, signaling a diminished role for traditional allies like Europe.
• China’s Silver Acquisition: China is actively acquiring silver doré and concentrate from countries like Peru and Mexico, bypassing Western markets and securing its supply.

V. US Financial Policy & the Genius Act

Schechman detailed the implications of the Genius Act, passed in July 2025, which allows the US Treasury to issue stablecoins backed by US Treasuries. He views this as an attempt to create synthetic demand for US debt, potentially devaluing the dollar and driving investment into gold. He also highlighted Tether’s (USA Tether) significant gold purchases, suggesting a similar strategy.

VI. The Future of Precious Metals Transactions

The discussion touched on the potential for state-sponsored bullion depositories (like in Texas) and digital apps to facilitate transactions using gold and silver, potentially bypassing traditional banking systems. However, Schechman noted that federal tax implications remain a challenge.

VII. Miles Franklin Specials

Kaiser Johnson briefly promoted Miles Franklin’s weekly specials:

• Half ounce US Gold Eagles: $170 over melt.
• 2026 1oz Silver Canadian Maple Leafs: $5.75 over spot.
• 100 Silver Bars (dealer’s choice): $2.25 over spot.
• Christmas special on 90% junk silver.

Conclusion

The conversation paints a picture of a rapidly changing landscape in the precious metals market and global finance. JP Morgan’s dramatic shift in silver positioning, coupled with record Comex deliveries and increasing industrial demand, suggests a bullish outlook for silver. Simultaneously, the rise of the BRICS nations and their efforts to create an alternative financial system pose a significant challenge to the US dollar’s dominance. The Genius Act and the development of stablecoins represent a potential attempt to maintain control over the financial system, but also carry risks of devaluation. Ultimately, the discussion emphasizes the importance of diversifying into precious metals as a hedge against economic uncertainty and geopolitical instability. The key takeaway is that informed traders are positioning themselves for significant shifts in the global financial order, and the current activity in the silver market is a strong indicator of these changes.