PodcastCommodity CultureAndy Schectman

$100B Gold & Silver Buy: Is the US Government Preparing for a Reset? Andy Schectman

Schectman links official critical-mineral designations and China- and BRICS-related gold infrastructure to a possible larger role for gold in international settlement, while emphasizing that these developments do not prove U.S. buying or replace the dollar system. He points to elevated metals delivery activity, reported Chinese purchases, and physical buying during market weakness, while arguing that markets understate the financial costs of ongoing conflicts. His outlook for gold and silver is conditional on developments in conflict, inflation, military spending, and financial stress.

GoldSilverPrecious MetalsGeopolitical RiskCommoditiesCurrencies

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Key Takeaways

Schectman describes China’s Shanghai Gold Exchange offshore vaulting and yuan settlement as potential alternatives to dollar and Treasury channels, not replacements for the dollar-based system. He pairs that infrastructure with the host’s account of more than 6,000 tons of gold held by China and BRICS/BRICS+ members and reported Chinese purchases of 21 tons in September.

Schectman interprets silver’s 2025 critical-mineral designation and Executive Order 14241’s inclusion of gold as signals that the administration views gold as strategic, while cautioning that they do not prove government purchases. He also says Judy Shelton reported Trump supported starting with a 50-year Treasury redeemable in gold, followed by shorter maturities, to build bond-market demand and credibility without upfront borrowing costs.

Schectman cites more than 9,000 tons of silver standing for COMEX delivery during the year and more than 600 tons of gold delivery activity as evidence of unusually high activity, while noting that delivery does not necessarily mean metal leaves vaults. He interprets that activity, alongside increased silver buying and imports in the first two quarters, as signs that sophisticated buyers are accumulating physical metals during paper-market weakness.

GEO-POLITICS

Critical Mineral Status — Schectman says silver was officially designated a critical mineral in 2025 and that Executive Order 14241 explicitly includes gold. He interprets these actions as signs the administration views gold as a strategic asset, not as evidence of government metal purchases.

“A lot of people don't know that also in March 2025, President Trump signed an executive order and it's number 14241 which explicitly includes gold along with some other minerals…”—

China’s Gold Rails — Schectman argues that China is building gold-related infrastructure, including Shanghai Gold Exchange offshore vaulting and yuan settlement. These systems could let partners such as the UAE and Saudi Arabia trade and access gold outside dollar and Treasury channels, though he describes them as potential alternatives, not a replacement for the dollar-based system.

“To me, the story is the infrastructure they're bu they're building around it. You have the Shanghai Gold Exchange, which is expanding offshore vaulting, especially in Hong Kong…”—

ECONOMY

Gold-Backed Treasuries — Schectman says Judy Shelton reported that Trump supported starting with a 50-year Treasury redeemable in gold, followed by 30-, 20-, 10-, and five-year maturities. The proposal was intended to build demand and credibility for the bond market without upfront borrowing costs.

“And she said, "Trump under no uncertain terms said he's going to back a 50-year Treasury to begin with, then 30, 20, 10, and five redeemable in gold with no…”—

MARKETS

COMEX Deliveries — Schectman cites more than 9,000 tons of silver standing for delivery during the year, worth about $17.5 billion at current prices. October delivery activity totaled about $5 billion in gold and $650 million in silver; year-to-date gold delivery activity exceeded 600 tons, worth about $81 billion. He says COMEX is used to offset risk, historically fewer than 1% of contracts stood for delivery, and delivery does not necessarily mean metal leaves vaults.

“If you look at the numbers for this year alone, this year more than 9,000 tons of silver have stood for delivery. That's approximately 290 million ounces or $17…”—

Physical Buying — Schectman argues that sophisticated buyers are using paper-market weakness and falling prices to accumulate physical metals. He cites increased silver buying and imports during the first two quarters, along with unusually high delivery activity, as signs of repositioning.

“And the biggest money on the planet, whether it be here or China, during the first two quarters of this year, as the price got kneecapped on a drive-by shooting…”—

JPMorgan Fine — Schectman cites JPMorgan's payment of more than $920 million to settle charges involving manipulation and spoofing in the metals market as evidence that such conduct has occurred before.

“We know JP Morgan paid over $920 million, the largest fine the Justice Department ever handed out to settle charges involving manipulation and spoofing in the metals market.”—

FORECASTS

Conditional Revaluation — Schectman says revaluing gold could become attractive when the strategic advantage of revaluing gold already held exceeds the benefit of continuing to accumulate at low prices. He adds that the United States may not want to be left behind if gold plays a larger role in international settlement.

“I believe it would be when the strategic advantage of revaluing what they already own is greater than the advantage of continuing to accumulate at BS prices, man…”—

Conflict-Driven Upside — Schectman reports that James Rickards expects gold to reprice upward if conflicts drag on and it becomes clear they are not nearing an end, as safe-haven demand kicks in. This is Rickards' conditional forecast, not a claim that repricing has occurred.

“I had James Records on the show not too long ago and he said that's coming…”—

Coming Up

Schectman argues that heavy COMEX silver deliveries and physical buying during price weakness suggest ongoing accumulation, while cautioning that delivery activity alone does not identify buyers or prove a collapse in demand.

Silver is Back To $60

He cites past metals-market manipulation and unusually large gold and silver deliveries, then speculates that institutions or government-linked proxies could be accumulating quietly; he stresses that the Treasury theory is unproven.

Big Players Suppressing Prices

Schectman says China’s reported gold purchases may understate its accumulation and emphasizes its growing yuan-based vaulting and settlement infrastructure as a way to facilitate trade beyond dollar-centered channels.

China Ramps Up Gold Buying

He doubts a change in Brazil’s government would lead the country to leave BRICS, predicting Brazil would remain a member while potentially balancing its relationships with Western countries and the Global South.

Do Brazil Elections Change BRICS?

He says BRICS is more likely to build interoperable payment, custody, vaulting, and settlement systems than issue a shared currency, creating alternatives to dollar-based trade without immediately replacing the dollar.

BRICS Payment Systems and Gold

Schectman sees China building infrastructure that could increase its influence over gold pricing, but says it has little reason to seek higher prices while accumulating; he speculates, without proof, that U.S.-linked proxies may also be buying.

Will China Set Gold & Silver Prices?

He argues that markets understate the financial consequences of ongoing conflicts, pointing to energy-driven inflation, military spending, debt, and financial stress as possible support for gold and silver.

Global Conflict and Precious Metals

Schectman and the host discuss how to follow his media and precious-metals businesses, exchange thanks, and close with a brief promotion for the Commodity Investing Academy.

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Important Disclaimers

Not Investment Advice: For education only — not financial, tax or legal advice.

AI-Generated: Made by AI from source transcripts and may contain errors.

No Guarantees: Past performance does not predict future results; investing carries risk.

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