If You Own Gold or Silver, Watch This NOW — Mario Innecco

Added: 2026-05-11

[00:00:00]China started to sell treasuries.

[00:00:03]And I noted that the 30-year uh yield uh on the Treasury was spike uh spiked seven basis points, which is a lot more than the other ones. It was above 5% at 535.

[00:00:18]And then >> a new warning is coming from market analysts. And this time it's about what they're calling the financial endgame.

[00:00:24]The idea is simple but powerful. We could be entering a phase where major countries, especially China, start moving away from the US dollar system.

[00:00:33]This process, often called ddollarization, could have massive consequences for the global economy.

[00:00:39]China has already been reducing its holdings of US Treasury bonds over the past decade. And now with rising geopolitical tensions and US sanctions targeting key Chinese industrial sectors, the situation is becoming more serious. The argument being made is that China cannot back down. These sanctions are not just economic pressure. They directly impact core infrastructure, energy strategy, and major industrial projects that are critical to China's long-term plans.

[00:01:10]>> Tuesday, May 5th, 2026. Well, Eric Young, who I have on regularly on the channel or aka King Kong 98, he thinks we're entering the uh endgame.

[00:01:24]And by endgame, he he means the uh exit uh out of dollars, especially treasuries by China. And we know they've have their holdings of treasuries in the last 10, 15 years or so. it's just below 700 billion. But uh he he thinks uh this is going to be massively bullish for gold and silver. And I agree with him a and I would say that uh it's akin to what happened in 2022 when the Ukraine uh war started and Western Europe and the US basically froze or or confiscated or stole $300 billion of Russian reserves. So I think what's going on um geopolitically is very important. This is gonna also hurt the bond market because China is a big participant still in the bond market and and if they're not there to buy it, who's going to be buying it? Well, um and the reason I'm doing this is not to defend China or anyone. is just to help you uh realize what's going to happen to interest rates, what's going to happen to gold, to hard assets. And uh I'm not surprised because up until recently, well maybe five, six years ago, the world seemed to work quite nicely together like globalization, right? China worked with the US, Russia, uh Europe, but now globalization's finished. And uh is it any wonder that China is probably going to really accelerate their ddollarization now? Because would you want to support or finance uh your major competitor? Uh I I didn't even use the term enemy, but it US and China might become enemies and I hope they don't. I hope the world cooperates, trades, and does business together and competes because that's what it's all about. But uh when empires uh lose uh their influence and power, uh yeah, they don't feel like competing. They they throw their toys around. And I I feel that uh not just the US but also Western Europe which still thinks it's an empire, they're throwing their toys out of their pram and uh it's not going to end well in my opinion and that's why we need to look at this. So yesterday Eric uh posted uh peeps don't understand that this is the beginning of the endgame.

[00:04:18]And he goes on to say why China cannot back down from US sanctions on Hangi and Iranian oil refineries and why physical gold is now the only solution.

[00:04:32]So we'll go through this. This is what he says. China cannot back down.

[00:04:39]Uh US sanctions on Hangi and four refineries uh structural and strategic red line. So number one uh not a teapot national strategic asset hang 280 billion remimi investment 20 million tons a year refining 1.5 million tons ethylene 17 million tons PTA 5 million tons coal chemicals 2025 revenue 201 uh billion remimi uh group 899 billion remimi direct hit on core industrial backbone.

[00:05:19]Number two, anchor of Dalian Shenzhing Island Pro Chemical Base, one of China's seven major national petrochemical hubs.

[00:05:29]Not >> because of this, China may accelerate its shift away from the US dollar. And if China, one of the largest players in global trade, starts stepping back from buying US debt, it raises a big question. Who will replace that demand?

[00:05:44]This could put significant pressure on the bond market. We are already seeing signs of this with long-term US Treasury yields rising above key levels. Higher yields mean higher borrowing costs, not just for governments, but for the entire economy. At the same time, this shift could push China and its trading partners to increase their focus on hard assets like gold and silver. If trust in the dollar system weakens, countries will naturally look for alternatives that hold value independently. And this is where the impact spreads globally. If demand for the dollar declines, it could lead to higher prices for goods and services, especially essential items. It wouldn't just affect the US. It would affect consumers worldwide since many commodities are still priced in dollars.

[00:06:28]The situation is not isolated either.

[00:06:30]Isolated supplies entire regional chain other firms and logistics cannot detach without massive disruption.

[00:06:39][clears throat] Number three, endpoint of northeast green hydrogen strategy handles shipping, bunkering and derivatives for green hydrogen chemicals from Liao Ludning, sorry, Jillin Helen Jang. Uh, sanctions would derail Beijing's flagship green energy plan for revitalizing the Northeast.

[00:07:05]Number four, tied to worldleading ship building. Hangley owns world's largest ship builder. Holds 80% of global VLCC.

[00:07:16]Uh that's very large container vessels, VLCC's uh orders in 2025. So yeah, it's massive. Uh the ship building uh for that uh group produces 180 dual fuel marine engines um per year. LG, LPG, methanol, ammonia. Prochem petrochemical division directly supports China's um green maritime dominance.

[00:07:45]So they've activated now this uh blocking statute from 2021. That's number five.

[00:07:55]First activation of China's blocking statutes. So Beijing uh explicitly ordered all Chinese firms not to comply, calls US action unjustified uh extr territorial overreach. Backing down would be accepting US jurisdiction over domestic core industry and dangerous precedent.

[00:08:21]And number six, regional and national credibility at stake. Northeast revitalization is top political priority. Hangi is flagship project in national prochemicalbased sanctions here cross into core infrastructure, green strategy and ship building areas China has signal it will fight over.

[00:08:46]So it says previous sanctions hit peripheral shang dong teapotss. Hangi is different core national infrastructure.

[00:08:55]China cannot possibly relent.

[00:08:59]So yeah, this looks like it's very significant.

[00:09:04]Uh, and I reposted this and I said, "Eric thinks US sanctions will uh accelerate the dollarization." And a little later, an hour later, and this was yesterday, I posted something. I said, "China started to sell treasuries." question mark. And I noted that the 30-year uh yield uh on the treasury was spike uh spiked seven basis points which is a lot more than the other ones. it was above 5% at 5035 and then um this was in the morning before the US came in but when the US came in uh all Treasury yields rallied massively and uh right now as I speak the 30-year is still above 5% at 502 the 10-year got up above 440 it got up to 446 right now it's at 445 uh am I saying that it's China that's selling here. Well, it's possible, but I think it's going to [clears throat] not only uh push China into selling its treasuries, uh, but it's going to push China into acquiring even more gold. And that's what Eric Young thinks, and I agree with him, and silver for that matter as well. And uh what it's going to do uh because China is such an important trading partner for so many countries uh that's going to push uh China's trading partners into the same kind of policy. And what's that? Well, that's ddollarization. Uh, buying more gold, buying more silver, and uh not being so dependent uh on on the United States because the United States is using the dollar and the fact that it still has uh quite a bit of influence uh as a reserve asset to uh push its political agenda. It's not using the dollar is not being used as a utility for for uh economic growth for international trade and uh I'm not saying the Chinese are perfect or the other countries dealing with China are perfect but I I think uh what this will mean to you uh in the US as a consumer is that u you will see uh the cost of everything go up. Not just financing but the the cost of uh goods and services especially basic necessities. Yes. Uh the cost of luxuries and u discretionary goods that might go down but the things that you really need to survive uh they're going to be um yeah the dollar is going to be uh buying a lot less of this because there will be less demand for dollars.

[00:11:57]And it's not just uh US consumers that >> rising bond yields and financial pressure are being seen across multiple regions including the UK and Europe.

[00:12:07]This suggests a broader shift in the global financial system. In response, central banks may have limited options.

[00:12:14]They could try to control interest rates or support markets through policies like money printing or yield curve control.

[00:12:21]But these actions often come with long-term consequences, especially for currency value. Despite short-term fluctuations, the overall environment appears supportive for hard assets. Gold and silver are increasingly being viewed as stable stores of value during uncertain times. Even though prices may move sideways in the short term, this kind of consolidation has been seen before major upward moves. Market sentiment may feel uncertain right now, but that often happens before significant changes. At the moment, global uncertainty, including geopolitical tensions and conflicts, is creating what can be described as a fog.

[00:13:00]And in uncertain conditions, the best approach is often patience. The fundamentals remain clear. Rising debt, increasing government spending, and ongoing money creation. These factors continue to build pressure within the financial system. So, the key takeaway is this. We may be entering a major transition in the global economy. And while the exact timing is uncertain, the direction is becoming harder to ignore.

[00:13:27]The real question is as this shift unfolds, where will value and stability be found?

[00:13:33]>> Are going to be hurt. It's also going to be consumers all around the world because right now a a lot of uh like commodities are still priced in dollars and I think the dollarization and the waning uh power of the dollar is going to affect that. There's going to be less demand for dollars and the uh the rising yields and falling prices of bonds. It's not just happening in in the US. It's happening in the UK as well.

[00:14:02]It's happening in Germany. is happening everywhere. And I've said many times before, of course, that I thought the the bond market, the bond boom market that we had since the early8s was very long in the tooth uh back in 2020, 2021.

[00:14:20]And I think that's going to continue. Uh there will probably be a uh reaction to this from the powers that be at the Fed and the Treasury. I think uh uh there's no other way out except to uh print even more or to do yield curve control. I I think the Fed is going to cut short-term rates. That's all they can really cut.

[00:14:45]Um the Fed funds target, they might bring the short-term uh part of the curve down, but uh longerterm yields are going to keep going up. The curve is going to keep steepening. So, they're going to have to institute yield curve control, which is just as good as uh money printing. And uh don't don't believe in uh the uh story that the new uh Fed chairman that's taking over on the 15th of May is going to be like Paul Vulker. No, he he's going to do uh what it takes to maintain financial stability. uh and uh when push comes to shove the Fed is not really independent.

[00:15:28]It it will work with the Treasury and uh this is going to happen worldwide with with other central banks uh Bank of England included and uh the biggest beneficiaries as I see still are going to be hard assets in terms of money and liquidity is going to be gold and silver because they are real money. Um, yes. So, what are the markets doing this morning?

[00:15:56]I I know it's been a little bit frustrating. We still have this consolidation in gold and silver, but I think they're preparing for another move higher just like we saw last year. We had a a consolidation from April to August. It was quite long and then eventually the market took off. Um, yeah, we're still up on the year both on gold and silver. Yes, things feel a little bit the sentiment is down, which is probably a good thing. But right now, as I speak here, it's quarter to 8:00 a.m. We've got spot gold at 4545. That's up 23 bucks. I I saw that yesterday. We got down to 4500.

[00:16:40]Uh, silver's at 7313, is up 43 cents.

[00:16:44]It's still fairly choppy. And I guess uh right now I wanted to say this actually.

[00:16:51]Yeah, we've got the fog of war, right?

[00:16:54]We had some we saw oil spike higher yesterday. We saw the stock market come off. Uh we saw that uh Iran attacked some UAE oil facilities with drones and that there's no real like uh accord between the US and Iran. So yeah, when there's fog, right, what do you do?

[00:17:18]Well, you you don't drive, right? Uh where I play golf here uh in the UK during the winter sometimes, uh we can get fog early in the morning.

[00:17:28]Uh so you can't tee off until the fog comes, you know, dissipates. So it's the same thing here.

[00:17:35]We know the fundamentals, right? We know that there's uh a problem with the debt.

[00:17:40]We know that President Trump wants to increase the uh defense budget from 900 billion to 1.5 trillion. We know uh Europeans are also increasing their spending and def defense budget. So, it's going to be endless spending, endless money printing, uh endless debt, uh and uh yeah, that's a a perfect environment for precious metals and hard assets. But right now, yeah, there's a bit of fog out there. Just I I would just sit tight and wait until it dissipates and then things will be a lot clearer. So um with that uh I want to wish you all a very good day. Take care.

[00:18:26]Bye.