now the daily traded amount of silver at the lbma this is every this this is everything right all the cash contracts at the lbm daily on every day there's 250 million triones so basically what he's saying is that whatever they have in free float is let now less than what they're trading every day on paper so in the unlikely event that let's say um half the people or let's say one3 onethird of those paper contracts um want to stand for physical delivery at the lbma this free flow is going to last only three days monco 64 hob alternative economics and contrarian views today I have the pleasure of speaking with Eric Young AKA King Kong 98 on X if you want to find him he's doing some great work about the precious metals Market uh welcome again Eric thank you Mario for having me on your show again oh you you're more than welcome thank you for for being here as well and I just wanted to uh let the viewers know that we're speaking on Friday March 21st so uh with no further Ado uh Eric could we talk about what's going on in the Sprout um silver ETF or more commonly known as pslv um there's there seems to be something going on there that we've never seen before so if you uh could uh yeah explain to us well it looks like um there's uh some big entities probably Bulan Banks shorting pslv and a lot of people have been talking about that why is that and um my theory is that um because pslv cannot be um be you cannot go to pslv as a Boolean bank or a author or an authorized participants and borrow um pslv shares and then try to redeem it for physical because it says right in the um pslv prospectus that if you want to redeem um the shares to physical metal at pslv the shares that you're doing it with has to be encumbered so if you're borrowing it that's the definition of unencumbered if you borrow the shares that means it's unencumbered right it's not encumbered encumbered meaning that you're free and clear nobody has claim but if you're borrowing it it's unencumbered right if it's unencumbered they don't allow you to to redeem shares physical right so so it's not so they can't do what they do Tov and GV because that's what they do remember we talked about that SLV and GLD the booing Banks the aps they go in and they simply borrow SLV and GLD shares and they redeem the the borrow shares to physical and they use it like a pigy piggy bank right that's what they do and it's a common practice Robert glip he's the ex JPM JP Morgan executive you know bullan Bank executive explain this in detail that's how they play the Arbitrage game right using that with the ETFs so simple p uh that's the SLV and GLD back to pslv like I said you cannot do that you cannot just borrow pslv shares and then use the borrow shares to redeem physical metal because those Shares are unencumbered it's no encumbered right you can't do that so what do they do to um suppress pslb I mean if you just let pslv grow naturally like for example recently there might be more retail investors or hash funds who buy pslv right and if they buy pslv um I'm not going to going going to go into the technical details of how pslv procure but essentially if more net buying happens net buying remember that word right net buying of pslv shares okay then pslv V will have to buy physical metal for the ETF so that's net buying if there's more net buying of pslv shares then pslv has to buy more physical metal for the pslv ETF simple enough okay so what is happening now all these um you know uh APS it looks like right looks like Boolean Banks big entities they're shorting pslv why is that my hypothesis is that these entities do not want PSL V to go out and buy more physical metal so how do they do that because like we said if you know investors want to buy PSL shares and then pslv has net buying of his shares it will have to buy fiscal metal right so how do these big entities put you know put a stop to that or at least slow it down how did they do that well they short pslb that's why you see that huge volume of shorting of pslb so what is shorting I'm just going to explain it to your viewers simple right shorting is just you're selling you're borrowing shares from from people hold the shares and you're selling the shares right now and then you return the shares at a later date that is it that is shorting yeah and you so if huge entities are shorting pslv right now as we as like on a daily basis that means that's selling pressure on pslv so let's say you have like back to my example you have a bunch of guys bunch of hedge funds buying PS LV shares but these big entities are shorting pslv means they're selling pslv that means your net buying might actually be flat or slightly negative or just say just let's say flat relatively flat then what happens PV doesn't buy as much or it doesn't buy any physical meals at all for the fund for the ETF yeah I I mean this is just it shows uh to me desperation by the uh bullan Banks because I I've seen the uh chart of the shorting and uh it's never happened before and the other thing uh Eric it's not happening either on uh SLV is it or or even GLD and it's probably because SV and GLD they're not really uh bonafide physical ETFs I would say and uh uh pslv is and that is a problem for uh the the bullan banks uh and uh what would you say uh to people who are invested in pslv and a lot of these people of course are sometimes also stackers but they want to have uh uh let's say if they want to buy a bigger quantity and instead of having to keep all that silver uh close to you you get it through psov what would you say would be a good way to uh stop their shares being being uh uh lent I guess I I I saw some someone who contacted you you on PO on X he he replied and said uh I have my psov with Fidelity and they offered me a pretty good uh uh loan rate um so yeah what what else can can one do to to stop this because it seems to me that uh it's a total manipulation of the market and unfortunately uh like the uh Market Regulators when it comes to gold and silver they they'll do nothing uh to really stop it so apparently um if you don't call your broker even if they let's say don't offer you a um borrowing borrowing rate um they can take your SL uh pslv SLV and um gldd shares and and L it out apparently so especially if you have a margin account that's what people tell me if your um if your equities account is tied with your Marin account they can do that and uh so this is not Financial advice but I was told that you just simply need to call your broker or call whoever is um handling all your equities and tell them that you don't allow any sort of borrowing of your gldd SLV and pslv shares it's that simple just do not allow it and then that will stop all this um you know big boyan Bank AP whatever right borrowing of pslv SLV and GLD shares it's that simple it's not you don't need to buy anything new it's just pick up the phone call your broker that's yeah yeah I saw the other day um maybe yesterday or the day before that uh is it true that the U shorting of pslv shares uh they they've shortened more shares than there are shares uh existent I'm I mean that that of course would be naked Short Selling which happens all the time I mean I saw a guy uh who runs a big brokerage uh company in the states uh he he was in a a video a few years ago and he admitted uh we we even sell sell shares that we don't have do you think uh they could be doing that uh in pslv no I I don't think so I saw I saw the actual like somebody posted the number I think is below um 10% but um you know they don't need to um like of total outstanding shares I'm talking about right yeah but the percentage increase of um you know shorts that they short positions that they' have taken is geometric we all saw that chart it just went up uh more than 100% in terms of like the number of shorts that they added for pslb but in terms of overall uh out of all outstanding shares is below 10% but that's not the point Mario the point is that they just did whatever is enough to suppress um pslv ability or not I shouldn't say ability or psvs um physical silver adding mechanism to kick it that sounds better yeah yeah they basically that's what it is yeah yeah so here's the I found the chart this chart so you can see I I mean this is huge uh there's definitely a problem so H how do you think Eric this is going to sort itself out and how long do you think until uh I think uh silver has been the silver price has been suppressed for so long that once this blow blows up because I I don't think these kinds of uh how can I say uh nefarious activity we can see this is totally unusual they can I don't think they can last forever so I I know it's hard to predict but uh do you think we're uh months away uh or weeks away or years away uh I tend to think we're pretty close to some kind of event well they they're praying that the silver they're praying a couple things right number one they're praying that um the London um silver shortage situation is going to yease itself why do I say that why do I say that because if you look at the London um physical silver inventory The Vault inventory oh I'm talking about the lbma it decreased 1,000 metric tons last month from the month before so you might ask yourself you know is that a huge number let me let me put that into context um according to Robert goip since the middle of December the lbma has been drained of 109 million met uh troyes or physical sare that's equivalent to$ 390 metric tons so that's in line with what I just told you right 1,000 last month so let's say a, little bit more every month guess how much free float physical silver that's left at the lbma it's not the 20,000 metric tons that they tell you because remember what we talked about right like 20,000 that includes the allocated stuff that they can't touch like either owned by ETFs or some of their other customers I mean they can get the ETF stuff but they have to go through that you know borrowing you know and uh Red Redemption process that we talk about right so let's focus on the U on the estimated free flat so this is what Robert G reported the estimated free float of physical silver at the lbma is at 247 million troy ounces Which is less than 7,6 um 7,670 metric tons now the daily traded amount of silver at the lbma this is every this this is everything right all the cash contracts at the lbma daily on every day there's 250 million triones so basically what he's saying is that whatever they have in free float is let now less than what they're trading every day on paper dur in the unlikely event that let's say um half the people or let's say oneir oneir of those paper contracts um want to stand for physical delivery at the lbma this free flow is going to last only three days I'm just saying like hypothetically right of course me and you both know Mario that they got a hell of a lot of paper compared to physical probably even in this scenario right now probably more than 10 paper to one physical right so some experts estimate that they this um free FL number that they have the $ , 670 metric tons which is 247 million troy ounces might last them 7 months seven months is not a long time Mario no I mean I mean and you said that the the prev the last month it was a thousand thousand yeah so seven months right seven months and it could increase who knows exactly so so we know his training right this is straight from Robert godet that the guy is there right now as a you know Commodities Trader is doing it at the lbma in New York so we know that this invo legitimate yeah yeah so you know it just goes back to what you said Mario you you said that there's a tightness in the um in the silver market in London and uh at New York at the CarMax and there's also a dislocation going on so like you said Mario this suppression of pslv is just one way for the big boys for you know the aps or boan Banks whatever you call them to make sure that there's no additional Demand on physical silver other than what is out there already because imagine this if it's 1,000 metric tons of silver demand per month right now from the lbma now this is just the Vault demand okay because we as we know the lbma also uh settle Le OTC contracts outside of lbma approved vaults as well so it might be more than 1,000 but 1,000 is just the Vault number so let's say pslv all of a sudden like this um short is gone they they're not shorting pslv anymore and pslv is adding 500 more tons every month into his well that's going to take that seven months and shorten it down to three and a half months that's what we're looking at Mario they're trying to save their own skin Yeah by just decreasing all other avenues of demand of physical silver outside of what is going on right now and the lbma yeah why why do you think they uh they're so adamant on keeping the silver price from being like from having a natural price Discovery um yeah I just you know if it's such a useless metal as as they to uh think well first of all is not useless is a very useful level is I know not for you and I but a lot of these they act as if it was though that's what I was trying to say I think what's happening Mario goes back to Gold I think um the US government is repatriating some of his gold a lot of it through is Boolean Bank um us Boolean Banks okay so I think that like it's proxies which are the US Boolean Banks and then uh um people who are close to the US government they they probably know of this so they are participating somewhat in the uh importation of physical gold in the US so not all the physical gold the 2,000 plus tons that uh Stone X reported that import 2,000 plus metric tons in total not all of it are from US Government proxies like the Budan Banks not all but most of it some of it probably from you know people who call went you know like Donald Trump's buddies I'm just saying hypothetically right it happens all the time but what is something that tracks gold that the US government may not watch as tightly as gold it's silver it's silver so a lot of these people the Bulan Banks their their value customers the people who know what's going on they are probably importing physical silver into the us so that that is my theory and actually it coincides with a lot of what other experts are saying I mean they are missing the US government proxy po because they some of them need def definitive proof I get that but the other parties that involved in importing this uh these precious metals golden silver into the US I think we in agreement so that that is what's happening I think because gold is being repatriated by the US government through his buyan bank proxies silver is tagging along um because these uh people who know know that gold is being um it's going to be higher in price probably yeah in the next year or two so they want to be on the silver train I think that is what is happening the people will know importing silver so it's not just industrial demand per se that's my point and they they want to keep uh the public away from Silver because they want to get the silver before the public oh absolutely I mean you see that every day there are people the experts out there saying that there's no silver shortage of any kind yeah like Jeff and others oh sure yeah but like like how do you define a shortage right like I asked them that question how do lbma worldwide if at The Price is Right there's always going to be silver or gold so if you define it that way there's never a shortage right so these people I can talk to them all day and um I can ask them these questions I mean you you're doing like a a really good service uh to the precious metals investors the stackers because you're using a lot of energy and like uh to look into this thing and try to explain to people and I'm really glad I I found you you know we've been following each other for a few years on X because I've been trying to uh uh expose like this manipulation as you can see here uh on my channel I even have a a playlist precious metals manipulation and uh it goes back nine years you know and like people like Bill Murphy from Gata they've been doing it since 1999 um and uh I I think eventually it's going to be like usaid it's going to come out and and people are going to say well that was not a conspiracy theory so I'd like to uh thank you for you know the what you're doing here uh Eric um I hope you uh have a great weekend in Hong Kong and uh I'll talk to you later thank you Mario you too thank you