Is The Gold & Silver Rally Back On? | Andy Schectman

**Adam Taggart** (0:01)
All right, and we should be live finally. Folks, thanks so much for waiting with us here for the first couple of minutes while we resolved a couple of tech issues. But I am back with the man himself, the precious metals expert, Andy Schectman, co-founder and CEO of Miles Franklin, the endorsed precious metals solution by Thoughtful Money. Andy, you look great, buddy. How are you doing?

**Andy Schectman** (0:22)
Good to see you, Adam. Likewise, always good to be here, my friend.

**Adam Taggart** (0:25)
Thanks. Well, I hope you're staying warm today. I hear it's pretty darn cold in Florida. Temperatures in the 40s, iguanas falling out of trees. You doing okay?

**Andy Schectman** (0:34)
Yeah, I didn't know that coming from Minnesota, but they do. They basically get paralyzed and they do. They fall out of trees.

**Adam Taggart** (0:42)
They're cold-blooded, right?

**Andy Schectman** (0:43)
Yeah. They're not dead, they're just hibernating. When it warms back up, they wake up. It's interesting to see it raining iguanas.

**Adam Taggart** (0:51)
I'll bet. Well, we know it's an interesting time in the world when all these crazy things that haven't happened before, massive inventory squeezes at the LBMA, silver prices at all-time highs, now iguanas falling from the skies. Who knows what's going to happen next? Well, look, Andy, so glad you're here. Lots to talk about. I'm particularly thrilled for folks that have been watching here. I think this is the first time seeing me after I have finished the five-day fast I was just on, and it went fine, folks. Actually, it was really great. Thanks for all the support everybody sent. But I will tell you, folks, nothing beats that first meal after not having eaten much for five days. So anyways, Andy, it looks like we're in the catbird seat here. All right, so I want to start this off. So I titled this particular live stream, Is the Gold and Sober Rally Back On? Let me just start with this screenshot that I just grabbed a couple of minutes ago. We see that gold here is fighting its gold futures, are fighting their way back up to $4,200. Up $66 bucks an ounce so far today. And silver, not to be outdone, is up almost 4% today. Back up strongly over $52 bucks an ounce. Who knows, maybe $53 bucks an ounce by the end of the day. Again, folks, those are futures prices.
But Andy, is the rally back on?

**Andy Schectman** (2:22)
You know, I think that there are a lot of things at play when they knocked it down. The answer is yes. But I think you have to examine what happened when they knocked it down. I mean, it got knocked down in two days. You saw in both instances a couple of weeks ago, you saw massive amounts of gold and silver dropped in what's called the access market. It started anyway at a period of time in between New York closing and Asia opening it. There's no liquidity in the market there. And when this happens, it would be the worst possible time to ever do it. In fact, there wouldn't be a trader on the planet that would ever do it. If they did, they would be fired and shot and probably not in that order as you're dumping copious amounts of gold and silver onto the market when the New York traders are gone for the day and there is no liquidity in the marketplace. And it hits stops because there's no one there to fill the order. So it just triggers stops all the way down. It's a drive by shooting.
The interesting part about it was that Michael Lynch, I believe is his name, I think that's his name, an analyst who talks about the Colmex says, you know, there was interesting movement when the price got slammed down. Two American commercial banks came in and bought massive amounts. It was Bank of America and Morgan Stanley. They came in and literally silver went right back up and gold came up about halfway because it hit so many stops on the way down where funds that use algorithms to trigger sell limits or sell orders just fall, fall, fall, fall. But the interesting part about Morgan Stanley and Bank of America is you have the chief investment officer, of course, of Morgan Stanley. It's well known now that said sell half your bonds and put 20% of your assets in gold. And then Bank of America lead analyst Michael Hartnett is saying, yeah, make that 25% in gold. And so these two banks came in and gobbled it up. But when you look at how this has tremendous strength and resiliency, I look back over my career, Adam, and anytime that the market got hit this hard, they'd step on its neck and it would never come back. You know, everyone was saying, this is it, it's over. Gold broke 4,000, silver broke 50, the bull run is over, sell your gold. Yeah, it never left. And it was done if when the media said that, they said, by the way, the start of this massive sale happened when no rational trader would have ever done it. It was dumped in the middle of the night when there was no liquidity. This would have been done over hours or days during New York trading, not bang, when there's no one there. If they would have said that, I think the market may have looked at things a little bit differently. Oh, I see. And then two big US commercial banks who have changed their allocation recommendation to gold came in and scooped up physical on the cheap. There are a lot of games going on, bottom line. And I think you just have to have strong fingertips and see the bigger picture.