There's A Global Run On Physical Gold (And Silver) Starting Right Now | 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. Welcoming you here for another monthly session with Thoughtful Money's endorsed Precious Metals Analyst. And of course, I'm talking about none other than the wonderful Andy Schectman from Miles Franklin. Andy, how are you?

**Andy Schectman** (0:21)
Adam, what a nice introduction. I'm well, thank you. Thanks for having me, buddy.

**Adam Taggart** (0:26)
Well, thanks so much for joining. Folks, quick apologies. Hair still drying from the shower, just got in late last night from being on the road for a couple of days. So if I seem like I'm just getting into the groove here, that's the reason behind it. Andy, I also just want to say too first before we get into all the topics that we have to talk about today and there's a lot to talk about. Just want to say thank you again for how nicely this partnership between Thoughtful Money and Miles Franklin has kicked off.
Clearly, it seems like there's a lot of people that has gone over and been helped by your staff. I just want to say the feedback that I've gotten from folks has been nothing but positive. When you enter into a partnership, you have hopes for it, but I'm kind of from the school of like trust but verify, make sure that your assumptions actually pay off. So far, it has been everything I could have hoped for. So I just want to thank you for how well you have treated this audience.

**Andy Schectman** (1:20)
Thank you. No, the honor truly is mine.
So it's my pleasure to do and it's awesome to hear such great feedback. Appreciate that.

**Adam Taggart** (1:30)
Okay, great. All right. Well, look, enough of the love fest. We'll jump into the good stuff here. I'm really trying not to start today's discussion off with silver, Andy, because I feel like gold has had a little bit of a price correction, but it is remaining strong here. And the miners have caught up a bit to gold this year. They still have further to go if historical ratios hold. But silver has been kind of dancing here in between 32 and 35, looking like it's just getting ready for that breakout. And we talked about kind of the precious metals complex is moving like a whip. The gold handle moves first, then the miners move after and they move further, but then the silver as the tip moves the furthest, the fastest. But let's set that aside as a teaser as much as I want to start there. So I guess first we got a number of topics we want to get into, but I guess first let me just ask you a broad question, which is we thought that gold was going to have some sort of pullback because it had risen so far so fast. It got up to about 3,500 an ounce, certainly did on the futures markets. And I think maybe briefly it got there on spot. You would know better than I.
Okay, it did. And then we saw it got kind of beaten down into the lower 3,000s. Today and the day we're talking, it had a strong day yesterday. It's up above 3,300 an ounce again today. So what do you think here? Has the pullback largely been over and is this sort of a healthy correction? Do the fundamentals still look good for the gold price going forward from here?

**Andy Schectman** (3:06)
Honestly, I don't think they've ever looked better. I mean, just in the month of May, Adam, we've seen a 700% spike in gold delivery from last year, same time, and which is May is usually a quiet month for gold.
We've seen the largest delivery in the history of the COMAX market. Last I looked, it was over 16,000 contracts at 100 ounces a piece. People are institutions, whoever the heck it is, US government, Treasury itself. I don't know. They're standing for delivery at a level nobody has ever witnessed before. 16,000 contracts. Adam is $5.3 billion worth of gold. The largest delivery in the history of the COMAX market, not just in gold, but also in silver, too. So there is a huge demand for physical holding of gold and silver. And you look at the gold price that gets knocked down by $200, $100 for two days in a row nearly, and it shoots right back up. That strength and resilience that I have never seen in 35 years. So to me, the physical demand is overwhelming the paper price. And this is, I was reading something on X the other day, a comment, if you will, between Vince Lancy and Luke Groman. And, you know, Luke said, now imagine what happens if it was the US government bringing back that gold and the response to all the commercial banks, because they were basically saying that there was, it almost looked like a sell-only market, that they were in coordinated fashion, that they got together with the managed money and said, this is about to blow up the whole market. There is no more buying allowed, only sell only. And that's what he was intimating. And he says, and response to the above from the US government is F you, he says, send us more gold next month too, and more behind for July, August and September. And Vince Lancy says, it was Luke, it was, no ifs, ands or buts, you know it, bullion banks to cover the treasury, calling it back or the Department of Treasury itself, it most certainly was. Now these are two of the smartest guys in the world, and basically what they're saying is that it's the US government bringing all this gold back in, and if you look month over month over month over month, in fact, let me, if you don't mind, just share one thing with you.