Tom Bilyeu

This is the trader equivalent.

No one cares what your bank does with your money as long as it's there for you when you need it.

So banks lend out way more money than they actually have.

It's called fractional reserve banking, and usually it's fine.

Most people don't want their money in any one given moment.

They want it in the bank earning interest.

But in those rare moments,

When everyone wants their money at the same time, banks collapse and the perpetual Ponzi scheme is exposed.

What just happened with silver is kind of like a bank run.

By locking the supply down, China exposed the illusion of silver's guaranteed supply.

And now, to paraphrase Buffett, the tide has gone out and we can see that basically everyone is skinny dipping all the time.

When China restricted 60 to 70% of the world's refined silver exports, they didn't just create a new method of price discovery,

They broke the confidence of the entire silver paper market.

If even 1% of those 356 paper owners suddenly decided they actually need the physical metal for their semiconductor factories or solar plants, the entire exchange collapses.

There isn't enough silver in the world

there isn't enough silver in the world to satisfy those paper claims.

This is why you're seeing the price scream towards $100.

It's the sound of the paper market realizing it is holding a bag of ghosts while China holds the actual metal.

This brings us back to our central question.

the staggering vulnerability of the US dollar.