BREAKING NEWS: COMEX's Scheme to CRUSH Silver Prices Exposed! 🥊💰

Precious Metals Market Update & Forecast with Michael Pachone (Can-Am Bullion)

Key Concepts:

• COMEX Deliveries: The process of delivering physical silver to fulfill futures contracts on the COMEX exchange.
• FOMO (Fear Of Missing Out): The anxiety that an exciting opportunity will pass by, driving investment.
• Repo Market: A market where financial institutions borrow and lend securities overnight.
• QE (Quantitative Easing): A monetary policy where a central bank purchases government securities to increase the money supply.
• Junk Silver: US 90% silver coins (dimes, quarters, half dollars) historically used as a form of wealth storage.
• Secular Bull Market: A long-term market trend lasting several years, characterized by rising prices.
• Wealth Transfer: A significant redistribution of wealth, often occurring during economic shifts.
• Gold Standard: A monetary system where a country's currency is directly linked to a fixed quantity of gold.

I. Silver Market Dynamics & Price Surge

The discussion centers around the recent surge in silver prices to all-time highs and the factors driving this movement. Michael Pachone attributes this to a confluence of factors: significant shortages evidenced by record COMEX deliveries (over 60 million ounces as of mid-December, with almost half the month remaining), a technical breakout in silver’s price chart, and increasing retail investor interest (FOMO). He anticipates further participation from institutional investors (hedge funds) in both silver and precious metal mining shares. Pachone notes a degree of nervousness regarding the speed of the price increase, expressing a preference for a more gradual, sustainable climb with building support levels.

Quote: “Silver, the sky’s the limit at this point. I don’t really see much holding it back.” – Michael Pachone

II. Macroeconomic Factors & Potential Catalysts

The conversation highlights broader macroeconomic concerns fueling the precious metals bull market. These include a potential credit/liquidity crisis, evidenced by a $125 billion emergency borrowing in the repo market and the resumption of quantitative easing (QE) – currently at $40 billion/month in Treasury bond purchases, with the possibility of undisclosed additional purchases. Falling interest rates, signaled by recent Federal Reserve commentary, and potential money printing are also cited as bullish indicators. Pachone suggests a potential reset of the financial system is on the horizon.

Data Point: $125 billion borrowed in the repo market in a short period, indicating liquidity concerns. $40 billion/month in Treasury bond purchases (QE).

III. Can-Am Bullion’s Observations & Inventory

Pachone reveals that Can-Am Bullion is experiencing the highest level of silver selling since he’s been in the business. While this is a source of supply, he believes many sellers underestimate silver’s potential upside, viewing the current 110% year-to-date gain and 300% gain over the last few years as the peak. He frames this as “inning one of a nine-inning game,” suggesting a long-term bull market is underway. He notes that while interest is present, new money flowing into the silver market is still relatively limited.

Can-Am Bullion is actively buying silver, and Pachone states he is not hedging his inventory, choosing to gamble on further price increases. He anticipates silver reaching $100-$200 per ounce by the end of next year. He acknowledges the risk of a 20% correction but is willing to absorb potential short-term losses.

IV. Investment Strategies: Bars, Coins, & Junk Silver

Pachone provides specific recommendations for investors:

• Junk Silver: Highly recommended due to currently low premiums near spot price. Ideal for bartering in a crisis scenario where electronic transactions are unavailable.
• Government Minted Coins (Eagles, Maples): Premiums are still relatively low compared to privately minted rounds.
• 1oz Denominations: Advised over larger bars due to easier liquidity and higher resale value. He cautions that selling large bars (e.g., 100oz) can be difficult and may result in a lower price.

Quote: “The biggest mistake first-time precious metals investors do is buy the big bars because they think they’re getting a discount…even though you’re saving up front, you’re going to lose out on the end when you go to sell.” – Michael Pachone

He anticipates potential future sourcing difficulties for 1oz government minted coins, similar to the shortages experienced during the COVID-19 pandemic.

V. Geopolitical & Financial Landscape Concerns

Pachone expresses significant concern about the banking system, stating that banks do not trust each other, leading to the need for emergency funding in the repo market. He believes many banks are insolvent and that a crisis is inevitable. He suggests the Federal Reserve will likely respond with further money printing to avoid a systemic collapse, potentially exceeding $10 trillion over the next 12-24 months. He also notes the potential for a weaker dollar to support US manufacturing and the possibility of a return to a gold standard.

VI. Advice for New Precious Metals Investors

Pachone urges viewers to take precious metals investing seriously, framing it as crucial for their financial future and a way to participate in a historic wealth transfer. He emphasizes the importance of education, understanding economic cycles, and recognizing the current late-stage secular bull market in stocks. He recommends diversifying into commodities, particularly silver, and seeking guidance from reputable dealers like Can-Am Bullion. He stresses the importance of taking action now to capitalize on the beginning of a potentially massive bull market.

Quote: “If you’re not playing on the right side of this biggest wealth transfer in history, you’re going to struggle…this is your opportunity.” – Michael Pachone

Conclusion:

The interview paints a bullish picture for precious metals, particularly silver, driven by a combination of supply shortages, macroeconomic concerns, and potential systemic risks within the financial system. Pachone advocates for a proactive investment approach, emphasizing the importance of diversification, education, and seeking expert guidance. He believes the current environment presents a unique opportunity to secure financial futures and participate in a significant wealth transfer.