SILVER AND GOLD ARE READY FOR A 2026 EPIC RUN

Hello everyone and welcome to episode number 66 of just Dario cigarette time.

Well, it has been another eventful week in the precious metals space. Not only

regarding silver, but frankly speaking, we should start zooming out and paying attentions to other fronts, especially gold because of what happened this week.

We not only had the confirmation that silver is truly reaching an inflection point, a point where ultimately paper price manipulation will no longer be able to brutally distort the real price.

The price where silver should be based on demand, supply and inventory dynamics.

But eventually we are starting to see things happening to this degree elsewhere.

Today I will provide of course an update on silver because interesting things deserve attention beyond the comics technical issue that I discussed in my

silver update yesterday which I thought it was quite necessary.

But after silver, I want to touch upon gold, especially gold at the comments.

Because if you think the criticality is only restricted to silver, well, you might be in for a surprise after you see what I'm going to show you about gold.

Before we continue, don't forget to like the video, subscribe to my channel, and turn on the notifications if you don't want to miss any of my future updates.

The first thing I want to highlight about silver is how because of these incredible price shenanigans in the west, effectively as Mario Ino beautifully highlighted in this post

yesterday, the price of physical silver is now being set in Shangghai and not in New York and London anymore. Besides

this, the intuitive explanation behind that is that people really don't like to play in a market that is consistently rigged against their interests,

especially when suspicious are then being confirmed by reality.

Effectively, put yourself in the shoes of a silver miner, refiner, or just a holder of silver in general. Why should

you be selling your physical silver in a US or a London exchange at a price that is $10 lower than what China for instance is willing to pay you for the

exact same hood. And if you're wondering if the reason might be better proximity and factoring in shipment cost or VIT, the first certainty is that at a current

price, the shipment cost for every ton of silver is actually roughly $1.

So great incentive is there. And the

premium I'm talking about as we discussed at land before is the premium in China before any VIT. Eventually VIT

is going to be paid by the buyer not by the seller because that is how V works.

But now let's move one step further. Why

should a silver miner be selling into an exchange directly or indirectly? meaning

using futures derivatives to short in order to lock in the price of their bullion if the OTC premiums they have been offered directly by corporates that

want to secure silver supply are even higher than the price voted in China for instance as a result what you're seeing now is the comx votes the Shanghai

future exchange votes and the shangai gold exchange votes not only been raining day after day non stops but without barely any hounds of physical

silver getting into those exchanges.

Furthermore, the total open interest is collapsing. Currently for the comics,

collapsing. Currently for the comics, for example, it's standing at the same level as 3 years ago with volumes understandably collapsing as well. To

summarize here, what is clearly happening is that because of this chronic price suppression on silver exchanges, due to the fact that many banks and brokers are stuck with a significant amount of naked short

positions, the market is simply shifting away from exchanges. And if you think this is a good thing, I'm afraid it's not. The reason is that this will

not. The reason is that this will eventually lead to localized prices for silver, ultimately becoming a problem for corporates. They will not have a

for corporates. They will not have a single price reference anymore that they can use for budgeting, supply chain planning and their own business projections. And because the silver

projections. And because the silver price will start to become obscure, the efficiency of the market will decrease significantly.

Now the second important point as I mentioned because of the incredible amount of naked short positions out there it will take such a long time to close them unless we experience a sharp

disruptive and uncontrollable price spike that basically knocks out bullion banks and brokers effectively resetting the whole pricing mechanism driven by exchanges.

The price is going to remain suppressed.

What do you think is going to happen as soon as the exchange vaults are going to be full drained? Eventually, those who are in need of buying silver and still want to take advantage of buying it

cheaply with their assurance that they will receive supply are going to turn to physical ETFs like SLV and PSLV. Why?

Physical silver ETFs allow for baskets of physical silver redemptions through authorized participants. And this has

authorized participants. And this has been happening already. Although this

process is more expensive than just taking silver out of exchanges. So

eventually it will come later. As a

result, you might see a strong beat behind these ETFs for the simple reason that because of the big gap between silver mining supply and demand with chronic shortage is expected to stay in

place for this year and likely next year at current prices. These ETFs will start to be drained significantly in the same fashion that happened through the exchanges bolts. This will cause the

exchanges bolts. This will cause the spot price to rise and eventually will shift the market forward almost becoming a spot market with futures and forward contracts in the OTC market becoming

baseless when there is no assurance that unless you agree to a cash settlement from the beginning physical supply will be there at the end of the contract as

it is today. So clearly the market dynamic is changing.

And here I go to the third part. In this

situation of incredible price suppression, silver miners, refiners, and holders are moving away from exchanges because they don't want to sell their silver cheaply anymore. While

now there is no doubt whatsoever where the price should be due to the dynamics of physical supply ultimately the best go of the real price of silver in the

world is becoming the silver mining stocks. For example, in the last quarter

stocks. For example, in the last quarter has been reported, even if the paper price was supposed to be around $55 in the stretch of time on average, most of

the miners actually reported much higher selling prices with some even reporting a $70 per ounce equivalent in the revenues, effectively confirming what I have been saying so far. Most

surprisingly, if you look at this chart I posted today on AX, it's no shock to see that Sil and Silj ETFs are already trading back at all-time high prices

that were reached when silver was trading at roughly $120.

This confirm another thing I said many times so far. Once the market would have started to acknowledge that this was not just the usual silver price pump that would then get crushed through the floor

as it happened before at that point silver miners would have started to outperform the metal because they will effectively be the price makers not the

price takers anymore because demand significantly greater than supply.

What I just said, of course, will stand true in the long term, but don't forget that I'm still expecting a very sharp repricing in silver because the current situation is not sustainable for the whole system to remain in place. I don't

think that exchanges want to fall into oblivion. It's going to be very bad for

oblivion. It's going to be very bad for their business. Ultimately, they will

their business. Ultimately, they will have to allow for this repricing to happen. And even if they are allowing

happen. And even if they are allowing the NECA shorts to do this as smoothly as possible, a breaking point is closer and closer.

So the silver price is likely to have higher volatility and spike beyond and outperform miners for a brief period of time again until it stabilizes and then when it will ultimately stabilize and

start rising smoothly for the long term because of monetary inflation, silver miners are literally going to print money. The only thing that can spoil

money. The only thing that can spoil this world projection is that once the current balance between physical supply and demand is reached ultimately with

some demand destructions because higher prices there will be some companies that won't be able to afford silver anymore and they will have to move away will be a significant economic slowdown with

less demand for consumer electronic goods, EVs and so on. So less demand for silver in general from the industrial complex might actually impact the demand side beyond the price disruption mechanism ultimately lowering the price

temporarily and then impacting both silver miners and the price of silver.

Why will this be temporary?

How do you expect the governments to react to the next economic crisis? of

course printing even more money and throwing gasoline on monetary inflation even more and ultimately putting even stronger tailwinds for the long term behind precious metals especially gold

and silver. What I just mentioned on the

and silver. What I just mentioned on the potential of a spike is actually something that you can observe [snorts] in this chart where there is volatility of the SLVTF and the underlying price of

SLV. And if you're noticing the circle

SLV. And if you're noticing the circle areas, every single time that the price started to move higher while the volatility was still coming down, that was always a signal of a trust upward

that was about to be unleashed.

Now, on to the last part of this podcast. I want to talk about gold

podcast. I want to talk about gold because things are starting to become pretty important in that space. Why?

Currently, there are roughly 17 million ounces of physical gold bars as registered stock at the comics. while

the open interest for every contract is already almost double than that.

Furthermore, the June contract open interest is already significant. I mean,

this is a movie that we already saw with silver, right? Likely a good chunk of

silver, right? Likely a good chunk of that April open interest is going to roll forward whatever. But again, the dynamic of more and more longs standing for delivery at this suppressed price

precious metals is developing for gold too. And you can actually spot pretty

too. And you can actually spot pretty easily who the shorts are in the space as well, dragging their feet till the last minute before closing their position as opposed here highlighting

how Bank of America in the February contract waited till the very end to clear the 4,000 contracts of open interest they had. They stood till the very last minute and clearly they were

the major owners of that short position and in one single day triggered a $2 billion transactions on gold at the comics in a contract that is in theory

in a non-delyivery months. Now it might start to make sense why there are sophisticated financial institution with access to brokers that can price for them options above and beyond what is

already available on the CME that I've been buying 19,000 to 20,000 US price strike gold options with maturity in December.

These people are really betting on a sharp repricing for gold this year. Will

that happen? I think that the price target is really aggressive to be honest. But if for example the news that

honest. But if for example the news that there is no gold at Fort Nox or that the free float of gold in the exchanges is much lower than anyone is calculating so far because of the hoarding that has been happening especially from India,

China and other central banks in the latest years. This might truly send the

latest years. This might truly send the gold price through the roof and ultimately those people with a very aggressive position proven right. And

let's not forget to make money in those position. They don't need to get to that

position. They don't need to get to that strike price. They just need to have a

strike price. They just need to have a volatility event that ultimately sends the theoretical price for these options much higher and they can sell earlier even before the strike is reached. Keep

an eye on silver of course. Keep an eye on gold and always do your research.

Manage your positions as it fits you. Be

prepared for incredible events to strike at any moment because this is what the numbers are telling us. Thanks a lot for listening to my podcast again today, for supporting me on X, on Instagram, and

for reading my research on just diario.com. I wish everyone a nice

diario.com. I wish everyone a nice weekend.