LIVE Q & A WITH MILES FRANKLIN

The hosts welcome viewers back to their first Q&A of 2026, noting the unprecedented activity in the silver market. They discuss recent margin hikes by the CME group, which traditionally cripple rallies, but this time, large institutional players are standing for delivery, indicating a shift in market dynamics. Asia is actively buying silver when Western markets attempt to suppress the price, creating an arbitrage opportunity. December saw an all-time high for silver deliveries, with January continuing the trend, suggesting major players are accumulating physical silver.

The discussion moves to the risks associated with silver ETFs like GLD and SLV, advising against owning them due to their prospectus distancing custodians from liability, and the inability to take physical possession. They highlight that storing metal in Brinks facilities offers physical ownership, audits, and tax-deductible storage at a comparable or lower cost than ETF fees. The hosts also bring up a leaked JPMorgan memo suggesting the bank will no longer allow physical delivery of silver after January 31st, transitioning to cash settlements. This, along with a similar memo from Morgan Stanley, indicates systemic risk and counterparty risk in the market, with major institutions prioritizing control over physical deliverable silver.

The Venezuela takeover's impact on the spot market for precious metals is discussed, with the hosts believing it won't have a short-term effect due to government control over critical minerals. They link geopolitical events, like Venezuela and Nigeria applying to BRICS and wanting to sell oil in Yuan, to historical instances of regime change tied to challenges to the dollar. A joint venture between Tennessee and a Korean smelter to increase refining capacity is highlighted as a response to China's dominant refining capabilities and export restrictions. The conversation touches on supply shortages, noting that popular silver products are becoming difficult to acquire, leading to higher premiums and a market where product 'will be gone' due to overwhelming demand.

One host boldly predicts silver will cross the $220 level in 2026, driven by continuous buying and the market correcting years of suppression. The current gold-to-silver ratio (GSR) of 57 is discussed, with expectations for it to drop significantly, making silver an attractive investment. This section emphasizes that the market is just beginning its significant run, with a lot of catching up to do due to historical price suppression. The hosts stress that the rise in prices is not retail-driven speculation but rather large, informed institutional traders standing for physical delivery, as evidenced by massive deliveries on Comex.

The discussion covers the widening spreads and higher premiums on silver products, explaining that dealers cannot hedge premiums, only the spot price of the metal. This makes the business more challenging as market volatility increases. They clarify that dealer reporting requirements (Form 8300) only apply to cash transactions over $10,000, not common payment methods. They also discuss the implications of banks needing to borrow from the Fed's emergency repo facility, highlighting a lack of trust among banks regarding collateral. The segment concludes with a plea for grace from customers due to current delays in processing orders and deliveries, attributing it to overwhelming demand and limited resources in the specialized industry.

The hosts briefly discuss military exercises under the BRICS banner involving China, Russia, and Iran, signifying a shift beyond economic cooperation and a challenge to the US-led global order. They also address a listener's question about Washington state's high sales tax on metals (10.3%) and how to avoid it by storing metals out-of-state. The episode wraps up with a call for viewers to subscribe to their channel, aiming for 100,000 subscribers and promising a special celebration for their community.