Trillions In Paper Silver

Now that it’s been clarified that the gold and silver markets are indeed manipulated (see this LINK), we can examine the absurd size of the paper gold and silver markets in relation to the underlying physical supply of gold and silver.

I was invited to join Sean and Rory and SGT Report to discuss our corrupt fiat paper system.  Here is Part 1:

9 thoughts on “Trillions In Paper Silver

  1. I know desperate people do desperate things but
    you would think the over educated egomaniacs
    responsible for creating this mess would understand
    they have painted themselves into a corner and look
    for an honorable way to deescalate but instead choose
    to go balls to the wall and fuck the consequences because
    they expect the little people will end up paying while they
    count their money in their guarded compounds. However If it
    gets as bad as I expect the pricks responsible will be in for the
    shock of their lives and all their wealth won’t save them from
    the wrath of the little people.

    a

    1. They know EXACTLY what they do. They know the inventories, the flow of actual metals, they own the books and the exchange that sets the price for the time being. And, they are the insiders, they know what is being planned behind the scenes at the IMF, BIS, FED, etc. Sure they are in a corner, but so where they in 2011 and they got out. They’ll get out this time as well. They can paper settle the CONeX contracts anytime they want, so they will never get the epic metal short squeeze the KWN-pumpers talk about. They make the rules, bend the rules and the regulators have a blind eye (they own the governmint, the FED, the regulators, so why worry ?) . Will they use the next crisis to cover up all their wrong doings? I think so, and the bankers will have enough metal in their possession when this thing turns – and if not, even better 😉

      Some sort of epic repricing is carved in stone now. China could end it any time they like. They hold 4 T U$s. Assuming they earn 1% interest on this, that’d be 40 B. If they employ just this on the yellow metal, they could (do?) soak up 1000 T of metal and still hold 4 T U$s. That’s ~half the world’s mine supply outside China/Russia. They openly aim for 8.5 Mega tons of yellow metal. Lower prices, bring it on, China will buy buy buy. Indians will buy buy buy. Russia will buy buy buy… Half the world is buying what discouraged, weak-handed speculators (and this includes the miners! ) are throwing out the window at a loss.

      When the repricing comes it will be swift. Can’t let the suckers back in. Thus I strongly doubt this will “trade up” in any orderly fashion again. This is freed precious metals in the making (hat tips to F/FOA/FOFOA). Will gold and a possibly gold-backed remninbi be a part of a new IMF SDR basket ? We will see. What is clear is that the CONeX is levered about ++40 : 1 paper:metal so I see no problem in physical prices going 40x higher eventually, or even much much more, should physical gold be used to cover (or as collateral) in the quadrillion dollar derivative casino. Only they strong hands will be aboard. Have enough cash at hand to make it through the coming turmoil, but don’t sell fizz. Add to positions if you can. Good luck to all, we’ll all need it.

      @Dave – keep up the great work, it’s much appreciated.

  2. AgreeD! There’s scant space left for the paper silver bubble to maneuver. Even worse, all credit fueled asset bubbles are vying for limited support, and moving in to clash with each other’s safe margins, guaranteeing epic operating errors .
    Besides Dave’s work, John William’s recent discussion also highlights the danger in opaque, synthetic systems and data that are hyper-modeled, digitally compounded and exponentially leveraged to cheat most laws of physics:
    http://www.shadowstats.com/article/no-672-october-labor-data-money-supply-m3-federal-deficit-election-2014
    Excerpt:
    “No. 672: October Labor Data, Money Supply M3, Federal Deficit, Election 2014

    November 9th, 2014

    • October’s Labor Numbers Skewed by Seasonal-Factors Distorted by Last Year’s Government Shutdown
    • Resulting Understated October 2014 Unemployment Rates: 5.8% (U.3), 11.5% (U.6), 23.0% (ShadowStats)
    • Election Polling Again Indicated No Economic Recovery, With Pocketbook Issues Dominating the Voting – New Proprietary Analyses
    • GAAP-Based 2014 Federal Deficit Was About $6 Trillion, Versus Headline Cash-Based $0.5 Trillion Shortfall
    • 2014 Net Federal Obligations Approached $100 Trillion, GAAP-Based, Net Present Value
    • Reporting Shenanigans: Headline Deficit Well Shy of Jump in Debt
    • Fed Monetized 78% of Headline 2014 Federal Deficit
    • Annual Money Supply M3 Growth Held at 4.2%”

  3. When I finally realized what is going on it all makes sense. The US and Germany, and possibly other sovereigns, are behind the metals paper bashing. The Germans want their gold back but the US no longer has it. So the US has ordered the big banks, like J.P. Morgan to force the metals prices down as far as possible so they can buy back gold at an acceptable level, what ever that will be. Then the US will transfer the paper to Germany to pay them off. That is why there has not been and will not be any prosecutions for this criminal action. When the US begins buying back the (paper) metals) the prices will explode. Of course the bank conspirators will be warned ahead of time but the small metals shorters will be crushed.

  4. I am wondering if I did the right thing by purchasing silver and gold. It has going down so much that my head is just turning. I purchase us bonds 10 and 12 years ago and cash them in the other day and to see what thing came back. So where do you put your money. The system is for the rich and the others are hurting.

    1. @Grayghost. you wrote:
      “So where do you put your money. The system is for the rich and the others are hurting.”

      I agree but when I first read it, suddenly “well that’s the price for being stupid” popped up in my mind.

      Did I just say (think) that? It’s so not like me . Suddenly it dawned upon me. It was an article by Mike Shedlock about Obamacare and “the Stupidity of the American Voter” I read earlier today:

      Obamacare Architect Explains “Stupidity of American Voter” Needed to Pass ACA

      Read more at http://globaleconomicanalysis.blogspot.com/2014/11/obamacare-architect-explains-stupidity.html#XPoydmSMISjiQ4vA.99

    2. So if I have all this silver and the price is now at $15.67 and I took a lost because I purchase my silver at around $33.00 oz and I watch all these video about silver and gold being the real money since 1971 and I see this going on now. The whole world is so screwed up and we trust the banks with our money. Who do we trust.
      Grayghost

      1. Greyghost..You have only lost if you sell at these prices…Otherwise you still have the same number of ounces which one day will reward you well…

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