The Global Rush For Physical Gold & Silver Is Going Into Overdrive | Andy Schectman

**Adam Taggart** (0:01)
And we should be live. Welcome to Thoughtful Money. I'm Thoughtful Money founder and your host, Adam Taggart. Welcome you here for another live session here, another live stream with my good friend, Andy Schectman, CEO of Miles Franklin, Precious Metals expert extraordinaire, fresh back from a week on the high seas. How are you doing, Andy?

**Andy Schectman** (0:21)
I'm good, my man. I'm good. Thank you. It's good to be back, Adam. Hope you're doing well also.

**Adam Taggart** (0:27)
I am. Thanks. Finally, I think I finally kicked this stupid cold I had that lingered for over two weeks, so I'm feeling a little frisky. Hair is still drying from the shower right before here. So folks, you're going to get as fresh as things get.
So Andy, as you know, I got to title these live streams before we actually have the conversation.
So I titled this one, The Global Rush for Physical Gold and Silver is Going Into Overdrive. And you have been beating the drum for much of the past year on this channel saying, look, the story is all about physical, the amount of volume that's being taken for delivery unprecedented in your career. And we've obviously seen over the past couple of years, the central banks increased their buying of gold. But now we're starting to really see countries, I mean, this isn't new, but we're seeing countries continuing to lean into saying like, yeah, I want more gold, but I want it domestically. So the gold that's been stored on behalf of other countries here in the US., increasingly they are saying, thanks for holding it for me, US., but I want to take that home now. I think France basically just took the last or most of their gold home with them.

**Andy Schectman** (1:45)
They did, yeah. And they didn't take it home. It's interesting. They sold it to the Federal Reserve and then bought it back in the open market over a few tranches. Because the gold that we are led to believe exists within Fort Knox and the New York Federal Reserve and a few other places, Denver Mint, West Point Mint, etc.
is what's called coin melt. All the coins that were confiscated by Roosevelt in 1933 melted down or 90 percent pure. So, but they did. And you know, that's really Adam what alerted me back in 2017 to this trend of the beginning trend of de-dollarization, of accumulating gold and silver on behalf of countries is a big message. But when you see the Bundesbank, the Bank of Austria, Hungary, Turkey, Poland, the Czech National Bank, the Dutch National Bank, I'll say to the New York Federal Reserve and to the Bank of England. Bank of England would give direct access to the LBMA, 140-year-old metals market, and the New York Fed direct access to the Comex. It's convenience. You want to put your metal on the exchange, buy, sell? We'll keep it here for you safely. When they say, you know what, we prefer physical possession and removal of counterparty risk over convenience, that should tell you something.
And yes, we've seen India do it, and now we see France do it, where they say, look, you know, send us back our gold. But in this case, because the coin melt gold does not meet global standards of 999 pure 24 karat, they did it that way. But it's an indictment when our allies are saying, yeah, we don't, you know, we would much rather have the real thing than let you hold it. We'll forego the convenience. It's eye opening and people should pay attention for sure.

**Adam Taggart** (3:34)
Okay. And Andy, you probably remember this.
But back in, what was it, Die Hard 2, the whole plot of the movie there was stealing the gold that was being held for other countries underneath the New York Federal Reserve. Yes. Here's an image of it, actually. So, you know, each of these kind of cubbies here, if you will, a country would have pallets of gold based upon how much that country was storing. That's pretty much what's getting either shipped home, I think in the case of Germany, or liquidated and then, you know, proceeds being used to buy gold back in their home country, like has just happened with France, correct?

**Andy Schectman** (4:13)
It is. And again, Adam, I truly believe that everything that we see, much of what we see happening right now globally, you could find one way or another to tie it back to one word, and that is trust.
And, you know, when they do this, to me, it's much more than convenience. It's saying, you know, we don't trust you, the system, your exchanges. When you see four glitches, glitches since Thanksgiving that are never supposed to happen in the markets where two to the up, two to the down, the circuit breakers don't work, when you see glitches on the Comex market, that if you're paying attention, you're like, you know what? That's not cool. That's a lie. Fooled me once, shame on you. Fooled me seven times, shame on me. And that's what these entities are saying. And it's like, let's get it home before we can't. You know, it's the same thing when, you know, trust, Nixon closed the gold window in 71, went back on the trust. It was supposed to be temporary.