Tag Archives: US Mint

Is Silver Intentionally Being Drained And Diverted From The Retail System?

One of the rules by which the elite aristocrats abide is they consider it rude to not issue a warning before they do something bad to us. They’re like criminals with manners. In other words, it’s gauche to flush the toilet while the serfs are in the shower without giving a “heads up.” – John Titus, Best Evidence

I want to preface this post with the stipulation that it is, at this point, only a theory that may be completely off-the-rails.  But, then again, it might be simplistic enough to meet the requisite  explanative demands of Occam’s Razor.

Most commentators and bloggers do a fine job regurgitating and repackaging information and developments which have already become obvious.  But the large majority refuse to take the analytic and intellectual risks required to advance ideas based on “tracks in the snow.”  Or they may just not see or be aware of the “tracks” that have appeared.

I know that since it became clear to me in late 2001 that the U.S. population was under “attack” by the wealthy, power-hungry elitists who have gained control the system, I have been able to see how the economic, financial and political collapse of the U.S. was going to unfold with a fair amount of clarity by applying this think-like-a-criminal algorithm:  “what would I do next if I were a criminal that could operate unshackled from Rule of Law?”

Let’s start peeling this onion with two possible motives.  The simplest explanation for the retail shortage of silver, which is growing more severe by the day and is occurring in several locations globally (U.S., UK, Australia, Hong Kong, just to name a few from which I’ve received detailed reader accounts), is that the wholesale stockpiles are diminishing to the point at which the holders of massive paper short positions risk running out of bars to deliver to the entities holding the long side of short positions.

This wouldn’t be a Comex-specific issue, because very little metal is delivered on the Comex.  This would be an LBMA and OTC derivatives issue.  It’s one thing if there’s not enough silver to keep the mint supplied.  This just causes anger and angst among the tiny percentage of hoi polloi trying to convert their fiat money into real money.  No big deal from the Government’s point of view. (Note:  the argument that there’s production capacity issues at the refiners who supply silver blanks to the mints is disingenuous beyond the point of silliness).

But its an entirely different issue if there’s a major delivery default to strategic/industrial users and uber-wealthy barons in India, China and the Gulf State Countries.  If word leaked out of a default on that level, the price of would silver launch into orbit and the exorbitant paper short position put on by the bullion banks would incinerate the TBTF banks.

We know the “registered” silver vaults on the Comex started dropping fast in mid-March – click to enlarge:

Graph1

But where is this silver going?  We also know that indications of retail shortages started appearing late-June, followed by an announcement from the mint that it was halting production and sales of silver eagles. The halt was remedied about three weeks later.

For the record, the mint announced a 20% cut-back in silver eagle production in August and another 20% cut-back in production on September 15:  US Mint Choking On Silver Shortage 

This suggests to me that domestically held silver in the United States is needed elsewhere to extinguish supply “fires” and the U.S. citizens can “eat cake” instead.  This would explain the sudden jump in U.S. silver exports to India, first discovered by SRSRocco LINK, in May and June.   If the the mint needs silver to produce enough silver eagles to meet retail demand, why is this silver being sold to India?

By law – this “law” was written in an era when the elitists were somewhat constrained by Rule of Law – the U.S. mint is required to produce enough silver to meet demand.   If silver that could be used to stamp silver eagles to meet demand is being exported to India – in the context of the registered silver stock at the Comex dropping like a dead fly, it suggests  perhaps  that the authorities are intentionally draining the retail silver distribution system in the U.S in order to meet demand obligations offshore.

Thus the first possible motive for draining the retail system of silver is, simply, that the silver is needed elsewhere, with adverse consequences if the silver is not delivered.

The second motive is substantially more insidious – and some might say “conspiratorial” – but equally as possible as the first motive.  Recall that there’s been discussion of eliminating physical cash currency and converting the western currency system into a digital currency system.  In fact, several somewhat influential Keynesian-influenced criminals economists have expressed strong support for this idea.

This falls into the “the elitists like to issue a warning before they do something bad to the population” category from the quote at the top.

The reason for draining silver from the system is that it represents a threat to the plan for imposing upon us an electronic fiat currency system.  Silver was actually used as a currency before gold.  Over time, silver became known as “poor man’s gold” because of the low worth per ounce relative to gold.  But because of its low relative worth, an ounce of silver is more fungible for everyday use a currency.   For these reasons, the sale of silver mint coins exceeds the sale of gold coins by about a 100:1 ratio.

If a large enough percentage of the population holds silver in large enough quantities, it is quite possible that the use of silver and gold would develop and an “underground economy” alternative to the digital fiat currency system being contemplated.   As long as only a small percentage of the population owns gold and silver, the Government can still impose control over the currency system and therefore the entire system without any threat of a black market alternative currency system based on metal.

Please recall that Paul Volker has said that it was a mistake for the Fed to control the price of gold when the U.S. dollar was devalued against the yen in 1973.  Furthermore, he recently referred to gold as “the enemy.”  And make no mistake, the prolific amount of anti-gold propaganda in the media this year is the Fed/Government’s premeditated and calculated effort to vilify gold as little more than “a Pet Rock” and thereby aggressively discourage the public from thinking about gold/silver as an investment.

If the Government can drain as much gold and silver from ready-access by the public at-large before a much larger percentage of the population understands gold’s value as vital protection against ongoing rampant currency devaluation, then the Government can avoid imposing the overt totalitarian measure of confiscating gold, like FDR did in 1933.

In short, the Government needs to remove gold and silver from the U.S. economic system in order to eliminate precious metals a competitive alternative to the plan for imposing an digital currency system on the country.

One last point, when I see  dubious representatives of institutions like the Perth Mint disingenuously attempting to dispel the fact there’s a silver shortage with long articles loaded with half-truths, distorted truths and willful omission of facts, I begin to suspect that the shortage is worse than is known.  This is true regardless of whether or not the two theories proposed above hold true.

SoT #53 – Doc @ Silver Doctors: Retail Silver Supplies Are Disappearing

People also need to recognize that the gold and silver shortage is real. We’ve got the Royal Canadian Mint, for example, not being able to supply silver coins without a lengthy time delay…Eric, you and I believe the metals are headed for a complete turnaround that’s going to astonish everybody. If we look at the 90 percent junk silver bags. I deal with one of the largest companies in the world and what we are seeing is what I call ‘The 90 percent factor.’ Historically, when gold and silver are set for an explosive move, 90 percent bags become virtually unavailable.

When the biggest suppliers in the industry, and I’m talking directly with two of them, are saying ‘We can’t even get 90 percent bags and we probably won’t be able to fulfill any order for at least 8 – 12 weeks on those,’ you know we have serious supply problems. So 90 percent bags are virtually unavailable at these prices and those who are primary dealers in them can’t even acquire them.   – Steve Quayle on King World News

The Federal Reserve and the bullion banks are now blatantly manipulating the price of gold and silver using paper gold and silver, which can be printed in unlimited supply.  They no longer try to hide or disguise their operation and certainly never deny that they are constantly intervening in every market – not just the precious metals – in order to disrupt and prevent the valid price discovery mechanism of free markets.

I’ve always said that 90% bags are the leading indicator of impending market shortages…we saw that the week before the big smash-down in the silver price the first week of July, when premiums on 90% bags spiked.  Then around July 6th or 7th,  90% bags went “no offer” at the largest market maker of 90% bags in the U.S. at the wholesale level.  And it’s been “no offer” ever since. – Doc from Silver Doctors on Shadow of Truth

I used the quote at the top because it independently confirms everything we heard from Doc at Silver Doctors today, who told us that across the product spectrum silver coins are selling out at the wholesale level.  The only reason this can be occurring is because there’s a shortage of unrefined silver that has developed globally.

The U.S. mint production has been going down about 20% per week. The first week they resumed sales the total allocated to authorized dealers was 1.4 million coins, the next week it went down to 1 million, last week it was down another 20% and I haven’t heard the number yet for this week. The Royal Canadian Mint didn’t take any orders last week and they’re not advising when they’ll resume taking orders for maples.  – Doc

China and India are primarily attributed with importing most if not all of the annual mined supply of gold for the past couple of years and both are on track to import a record amount this year. But very little is mentioned about their silver consumption. India is on track to import a record amount of silver and China is using all of its internally mined silver to supply its massive solar program (see this SoT podcast:  Solar Energy Drives Silver Demand).

The reason it’s important to understand the retail demand function for silver is because, at the margin, it will be the retail investors who will “tip the scale” on the Government’s silver manipulation operation and force shortages that will overwhelm the naked paper short interest, both on the Comex/LBMA and in the OTC derivatives market.

Rory and I visited with Doc today because we wanted to hear first-hand about what he’s seeing in the markets which feed into the retail supply for silver investment products.   The only time premiums across the board for retail silver products were higher than they are right now was during the 2008 take-down of gold and silver. There were a lot less retail participants back then, which means that the current market has been set-up to become even more extreme than it was in 2008.

Of course, do not overlook the fact that the price take-down and shortage of metals back then preceded the Great Financial Collapse, because we know that current fundamental conditions are worse than they were in the period leading up the de facto collapse of the financial system.

GLD Continues To Be Looted While The Public Loads Up With Physical

From the day back in 2004 that I first read James Turk’s analysis of the GLD ETF, I had suspected that GLD had been created to take investor money and accumulate a large pile of 400 oz bullion bars that would be used eventually to manage the growing western Central Bank short position in paper gold.  Paper gold being the fraudulent, blunt instrument used to illegally manipulate the price of gold.

GLD’s objective is not to provide investors with the opportunity to own gold bullion by investing in the shares of an ETF. Rather, GLD is designed to track the price of gold. That objective is no different than what is accomplished by a gold futures contract or any of the dozens of numerous gold derivatives available these days. More to the point, futures and derivatives are sold even if the seller does not own the underlying gold bullion needed to deliver on its obligation. They are in practice fractional reserve systems, which allow liabilities for gold to far exceed the quantity of gold owned by the seller of that liability.  – James Turk, “Where Is The ETF’s Gold,” November 2004

In 2009 I wrote a reseach report on GLD in which I went through the GLD prospectus line by line and determined that the prospectus was specifically set up to enable the bullion banks – with HSBC suspiciously designated as the custodian of the GLD, as HSBC is the LBMA gold market counterpart in London to JP Morgan’s Comex silver market function – to amass gold in a legal structure that would enable the banks to finance the purchase of 400 oz ounce bars which could be leased or hypothecated via the “backdoor” web of subcustodians.   Shockingly, even the trustee and sponsor of the the GLD trust,  Bank of New York Mellon and the World Gold Council respectively, are not permitted to inspect the contents of HSBC’s vault without significant notice.  And inspection is allowed according the prospectus only intermittently.  Furthermore, no outside party is entitled to inspect any gold held by any subcustodian.  The list of horrors is endless and eventually I’ll update and republish my report from 2009.

Everyone likely remembers the infamous scene on CNBC back in 2011 when CNBC made a big production of putting Bob Pisani inside the GLD vault to show the world GLD’s gold. Pisani was directed toward a stack of bars that were in the GLD “allocated” section of the vault. Pisani randomly picked up a bar and it turned out that – much to the horror of everyone watching live – based on the bar’s serial number, the bar did not belong to the GLD Trust despite sitting on the GLD stack.

In a world governed by Rule of Law, the operations of GLD should have been suspended and a full independent audit of all of the GLD vaults, including the subcustodial vaults, would have commenced immediately.   But the world is governed by Rule Banks And Thieves and the episode was summarily dismissed.

It now looks like the looting of GLD is in full motion.  The “reported” holdings of GLD peaked in December 2012 at 1351 tonnes.  Since then, through last Friday, the number of bars “reported” has declined to 680.  The last time there were this many bars reported by the GLD Trust was September 19, 2008 (679 bars) and the price of gold was $869.

I say “reported” because the integrity of the daily reports are dependent on the reliability of HSBC.  See what I mean?  HSBC has been found guilty of fraud and market manipulation of almost all of its major business segments.  It would be highly improbable that the one area of its business that HSBC conducts honestly and ethically is in its precious metals operations.  More likely the fraud and corruption in this business segment is the nexus of the bank’s criminal behavior.

But let’s suspend disbelief for a moment.  According to the prospectus, the only mechanism by which gold bars can be removed is to amass shares in 100,000 “baskets” and turn them in to the Trust – BNY Mellon – in exchange for the equivalent amount of bars. It’s the only way gold is supposed to leave the Trust – in theory.  Of course, the language in the Prospectus enables the Trustee to deny share for gold redemption and I have heard of a few large funds who have tried to redeem shares for gold but have been denied.  In all probability, any gold redeemed and removed from the GLD vault has gone to the bullion banks for their use in delivering gold committed to large Asian buyers of paper gold issued and shorted in London.

It does not make sense that the amount of gold in GLD would decline with a fall in price. A fall in price would indicate a drop in demand for gold (or an increase in supply of the physical metal, which we know is not the case). For GLD to be losing gold indicates an increase in demand for physical gold.  The physical markets are dominated by purchasers, and suppliers cannot keep up with the demand.

As an example, we know that China is currently on pace to buy a record annual amount of gold based on the YTD withdrawals from the Shanghai Gold Exchange.  Contrary to reports from the World Gold Council and Reuters, movement into and out of the Shanghai Gold Exchange – LINK – has been rising, indicating that demand in China for gold is increasing.  In fact, China is on pace to buy up the total amount of gold produced annually by mines globally.

Then there is India.  The bullion premiums are evidence that Indian demand has increased significantly well ahead of its traditional autumn seasonal buying period.  According John Brimelow’s “Gold Jottings” report, ex-duty premiums in India were as high as $13.59 last Friday.  When this metric is positive, it indicates healthy import volume.  When it’s in the teens, it indicates aggressive buying.  This fact is confirmed by this article from the Hindu Times – Brisk Sales At Jewelry Shops As Gold Price Dips.

Furthermore, the U.S. Mint report record gold eagle sales in July:  Gold Eagles Hit Monthly Record In July.  It seems Americans are trading their fiat money for real money.  This is confirmed by this fact – 1/10th of an ounce gold eagle sales soared in July to their highest level since 1999 (source:  Smaulgld.com, edits are mine):

july-one-tenth-american-gold-eagle-july

Unable to get silver, people turned to the 1/10th ounce gold coins. Who wants fiat money that pays negative interest rates?
The gold holdings of the GLD Trust are behaving inversely to the observed behavior of the global market for physical gold. If gold is in a bear market and people are selling rather than buying, GLD’s holdings should be rising, not falling from withdrawals.

By printing uncovered futures contracts, the bullion banks have artificially increased the supply of paper gold in the futures market where price is determined.  This artificial price created by manipulating the quantity of paper contracts implies a bear market.  Yet all evidence indicates rising demand for physical metal.

The ONLY explanation for this is that GLD is being looted by the bullion banks.

Comex Paper Precious Metals Open Interest Is Going Parabolic

Since the end of May open interest has risen 14.23% while gold basis the stock market close has fallen 2.69%. Gold has been battered by a powerful short-selling campaign. MKS Geneva last night furnished the colorful remark:  “Shorts grew 12% last week to a new all time high. The position is about 3.6 times the size of the last 20 years average!!” – from John Brimelow’s Gold Jottings Report

The price level and trading activity in the precious metals market – gold and silver specifically – has reached mind-blowing absurdity.  Make no mistake about it, the fact that the U.S. mint had to suspend sales of 1 oz Silver Eagles until at least early August is definitive evidence that the natural market function of price as a mechanism to balance supply/demand has been completely destroyed by the western Central Banks using the big bullion banks as their agents of manipulation.
As we already know, the silver open interest on the Comex has soared to preposterous levels to an open futures level which far exceeds the amount of silver produced by mines globally in a year:

Silver OI 062415 As you can see from this graph to the left, the open interest in silver is historically correlated with the directional price movement of silver.  This correlation blew up and the amount of paper silver open interest on the Comex began to go parabolic last summer, while the price continued to head south.  This is direct evidence that that Comex paper silver is being used to push down the price of silver.

In fact, as we all know from the work by SRSRocco, India finds the price of silver so attractive that it is on track to import a record a amount of silver this year.

The gold paper open interest on the Comex has now begun to go parabolic.  As recently as April 3, the total gold paper open interest on the Comex was 382k contracts, or 38.2 million ounces of gold.  As of yesterday – July 14 – the open interest in paper gold had soared to 462k contracts, or 46.2 million ounces.  This is a 21% increase in the amount of paper gold. In fact, China finds the price so attractive that it is on track to “consume” a record amount of gold this year.

To put the gold paper open interest in perspective, as of yesterday Comex vault custodians were reporting an alleged 482k ozs of gold in the “registered” account and 7.8 million in total gold.  The open interest just for the August front-month gold contract is 235k, or 23.5 million ounces.  This is 48x the amount of physical gold that has been made available to back the August open interest.  The total open interest in paper gold on the Comex is 600% greater than the amount of total gold that could potentially back that open interest.

To describe as “absurd” this imbalance between the paper gold and silver contracts on the Comex and the condition of the global supply/demand for physical gold and silver is an insult the word “absurd.”  This is nothing less than complete criminal and fraudulent manipulation of the gold and silver markets by elitists and bankers who are now officially above all Rule of Law.

As my friend and colleague, John Titus, has concluded after pouring over several transcripts from the 2009 FOMC meetings around the time that QE started and which were recently released at the beginning of 2015:

The more I learn, the more I realize that the Fed is nothing but a criminal enterprise and the guys at the top know it.   Everyone within breathing distance of top slots at the NY Fed is a criminal. Remember, the NY Fed shares space with the ESF even though the latter’s formally part of the Treasury.

The real underlying issue with this manic and blatant manipulation of gold and silver is yet to be determined.  But when Janet Yellen announces that the Fed is on track to raise interest rates this year, when the economic reports released daily show an economy starting to collapse, and when an obscure and opaque “military exercise” across the United States begins on July 15, 2015 – yes, Jade Helm begins today – and the S&P 500 spikes higher while the price of gold and silver are slammed – then you know your system is doomed.

It’s pretty obvious by looking at the numbers above that the bullion banks – JP Morgan, Scotia and HSBC – are using paper futures to loot the gold and silver on the Comex.  If that’s not the case then I would urge them to allow us to conduct a physical audit of their vaults.  Otherwise please explain how the mint can run out of silver.   It’s also quite obvious that the Comex is headed for a force majeur cash settlement of the open interest.  There is no other explanation.

Several years ago a good friend and colleague of mine and I both asserted that we would know they’re ready to let the system collapse when they let the Comex default.  I would suggest that we drawing close to that time.

When you see that trading is done, not by consent, but by compulsion–when you see that in order to produce, you need to obtain permission from men who produce nothing–when you see that money is flowing to those who deal, not in goods, but in favors–when you see that men get richer by graft and by pull than by work, and your laws don’t protect you against them, but protect them against you–when you see corruption being rewarded and honesty becoming a self-sacrifice–you may know that your society is doomed.  – Ayn Rand, “Atlas Shrugged”

 

JP Morgan And Citi Are Using OTC Derivatives To Manipulate Gold And Silver

Financial regulators around the world have recognized an immediate and pressing need to address possible regulatory protections in the OTC derivatives market.   – Brooksley Born, 1998 as Chairman of the CFTC – LINK

(Please note:  this scheme too will blow up in their face just like Long Term Capital, Enron, Bear Stearns, Lehman, AIG/Goldman.  The taxpayers will be bailing out the banks – and now we know why Citigroup wrote the legislation that enabled banks to move their OTC derivatives positions to their FDIC insured units – but gold and silver will go parabolic)

Back in the late 1990’s, the then head of the CFTC – Commodities and Futures Trading Commission,  the Government entity which is supposed to oversee futures and derivatives markets (enforce the laws in place to prevent criminal activity in these markets) – Brooksley Born embarked on an effort to impose oversight and regulation on the burgeoning OTC derivatives markets.  We all saw back then the dangers they impose on the system when Long Term Capital imploded and almost took down the global financial system.

I was a junk bond trader back then and vividly remember the entire affair.  In fact, Bankers Trust was the pioneer in OTC derivatives and it also had to pony up the most amount of money to bail out the system from Long Term Capital.  I also had been involved in using OTC high yield derivatives – unregulated – to hide large, risky and illiquid junk bond positions from the Bankers Trust risk management team.  We always did this right before the period in which the bank began calculating bonus pools.  In other words I know first-hand the many ways in which OTC derivatives can be used in corrupt ways to game the system and squeeze enormous profits from the markets.  “Markets” meaning, the people on the other side of your trade.

Of course, Robert Rubin,  Larry Summers and Alan Greenspan put on a full-force lobbying effort to destroy Ms. Born’s effort in Congress and the rest is history.  OTC derivatives are not only financial nuclear weapons of mass destruction, they are right now about the only source of real cash flow for the big banks.

But they are also used to inflict criminal manipulation on the gold and silver markets.  Dr. Paul Craig Roberts and I have written an article outlining the most likely way in the which the big big bullion banks – primarily JP Morgan and Citigroup – are implementing the recent massive spike up in gold and silver OTC derivatives in order to manipulate and suppress the price of gold and silver.   Bear in mind that, thanks the Rubin/Summers/Greenspan triumvirate, we have absolutely no way of knowing exactly how these securities are structured.  And yet – as we’ve seen with Long Term Capital, Enron, Bear Stearns, Lehman, AIG and Goldman – they can catastrophically effect our lives financially.

Are Big Banks Using Derivatives To Suppress Bullion Prices?

Paul Craig Roberts and Dave Kranzler

We have explained on a number of occasions how the Federal Reserves’ agents, the bullion banks (principally JPMorganChase, HSBC, and Scotia) sell uncovered shorts (“naked shorts”) on the Comex (gold futures market) in order to drive down an otherwise rising price of gold. By dumping so many uncovered short contracts into the futures market, an artificial increase in “paper gold” is created, and this increase in supply drives down the price.

This manipulation works, because the hedge funds, the main purchasers of the short contracts, do not intend to take delivery of the gold represented by the contracts, settling instead in cash. This means that the banks who sold the uncovered contracts are never at risk from their inability to cover contracts in gold. At any given time, the amount of gold represented by the paper gold contracts (“open interest’) can exceed the actual amount of physical gold available for delivery, a situation that does not occur in other futures markets.

You can read the rest of this here:   OTC Derivatives Are Used Manipulate Gold And Silver

Click to enlarge:

GOLD_Q1SilverOTCderivs1

SoT Market Update: “We’re Fighting Evil”

It’s depressing to know our entire world is this corrupt – Rory Hall, Shadow of Truth

The brown stuff is starting to hit the fan blades.  The trading was suspended on the NYSE this morning right about the time the entire stock market was about to go off a cliff.

UntitledOn Monday one of the primary HFT Electronic Communication Networks “broke” in the middle of a big sell-off in stocks in response to the “NO” vote in Greece. Interestingly, when the stock market did a “U-turn” yesterday resulting in about a 40 point swing in the S&P 500 and a 400 point swing in the Dow, none of the major HFT ECN’s seemed to have any issues.

But, the fact that they had to unplug the entire NYSE today tells us how desperate they are to keep the market propped up in the face of rampant sell programs hitting the market.

Two things are inevitable:  1) at some point money managers running large pension portfolios, hedge funds and mutual funds have to regard their fiduciary duty to their investors and get rid of their historically overvalued stock positions – this will cause a major sell-off in the market because the ONLY buyer is the Federal Reserve;  2)  at some point the elitists will prevent widespread selling by declaring market “holidays” and lowering redemption “gates” on mutual funds – in other words implement capital controls. Both of those two events are fait accompli.

The cause of this week’s market turmoil – at least on the surface – is the Greece situation. Paul Craig Roberts published an article yesterday in which is noted that the IMF’s statement about Greece released a couple days ago signals to us that the U.S. is flexing its muscles on this situation, which means a resolution to this crisis will occur which keeps Greece in the EU.  Apparently the “front-office” neo-con-in-chief, Victoria Nuland, was recently visiting Tsirpas to exert undo influence on his decision-making process.

But there’s more going on behind the curtain that hides the real Wall Street and DC than just Greece. When the report hit the tape that Tsirpas caved in and begged for mercy from the Troika, the stock market bounced briefly and then sold off even more. The fact that they couldn’t prop up the stock market with most of it closed on a week in which the majority of market players are still at the beach in the Hamptons reflects bigger problems occurring behind the scenes than Greece.

Finally, as most of you are aware, the U.S. mint declared “force majeure” on its legal requirement to produce enough silver eagles to meet demand and suspended sales at least until the beginning of August.  In simple terms:  the U.S. mint is out of silver and the Comex is out of silver that it can hypothecate to the mint.

We are starting to see the collateral damage and unintended consequences of unfettered Government/Central Bank intervention in the markets and in world affairs.  Domestically, the U.S. has been terminally infected with rampant criminality and corruption. Internationally, the neocon-fueled U.S. Government has become a despised tyrant working furiously to exert it rapidly waning authority on global affairs.

I know Rory prays everyday that I’m wrong, but my instinct tells me that Victoria Nuland and her neoconservative band of scumbags who control U.S. foreign policy will eventually resort to flinging nukes at that which they can not control…

The Mint Is Out Of Silver Eagles

***UPDATE*** This just in from my source who said that there would be a shortage of silver at refiners by September/October:  “silver is tight as can be.  Nothing around in size”

The bullion banks knew that the Mint was going to be forced to release the news that it was out silver – that’s why silver was slammed in the paper market when the Comex trading floor opened.  This is as criminal as it gets.

This also means that the Comex vaults are technically out of any silver that they could supply to the mint.  CNT is one of the bigger silver custodians and they specifically supply the mint with silver.  If the Comex vault operators had customer silver that they could hypothecate to the mint they would be doing that.  It tells me that the Comex vault operators don’t think they can get ahold of silver to replace any silver that could be “borrowed” and sent to the mint.   Technically, the mint is required by law to make enough silver eagles to meet demand….

Bill Holter broke the news – Silver Doctors confirms:

*Breaking:
The US Mint has just notified Authorized Dealers that it is ENTIRELY SOLD OUT of Silver Eagles, and WILL NOT TAKE FURTHER ORDERS UNTIL AUGUST 2015!
This morning we warned that a massive jump in silver premiums was imminent as premiums on 90% silver had tripled in the past 48 hours.

Less than 3 hours later, that has been confirmed as the US Mint has just SOLD OUT ENTIRELY of all Silver Eagles and suspended sales for at least 3 weeks.  

The Mint also advised when sales resume Silver Eagles will once again be on allocation. 

Wholesale premiums instantly jumped 50% on the news…for the few authorized dealers who had any coins remaining in inventory. 

We will keep you updated as the silver shortage progresses.   Silver Doctors

Perhaps the trading floor rumors in London about a probable shortage of silver developing by September at the Swiss refineries…As my colleague Rory Hall – The Daily Coin – points out:  “they sold out in 2014 in the late fall – October/November – and now they’re sold out by July.  They can’t even go a year without inventory running out…”

Stay tuned tomorrow for a fascinating podcast from the Shadow of Truth with Wolf Richter of Wolf Street – Howling about Business and Finance.