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:


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.

31 thoughts on “Is Silver Intentionally Being Drained And Diverted From The Retail System?

  1. Oh Dave, Sounds like some solid thought progression on the depravation of the real money from the masses. Will see if the sheep wake up and push the issue or if perhaps the premiums can wake people up. Can say when I have asked people I know who have casual amounts of physical if they are up on the premiums most say uh NO! I speak of a CPA, one of Wichita’s finest, and a Chemistry Prof.. Can also say the knowledge has altered at least one acquisition plan as in accelerating more purchase. So on face the evolving delusion has at least bought the crooks some time.

    Volker needs to depart the earth. I can remember thinking he was a decent central banker even though mortgage interest rates were near 17% when I bought my first house. He seemed honest at the time now he is quoted for saying honest money (gold and silver) needs to be crushed…EFF HIM and may he ROT IN HELL!

    We as a society refuse to have our date with reality and at this point we can all understand why…but as pointed out we not be able to evade the consequences of that reality. Our denial is in exponential function for the correlated consequences. May The Road not be our fate.

  2. Indeed the Western block, US, UK Commonwealth, seems intent on pursuing the Mark of the Beast; digital currency through biometric identification. The US has gone full USSA and may have intentionally sold off all of its PM’s knowing (thinking) they would never need them. TPTB have one major issue with implementing a digital currency, drugs and covert operations, these are conducted singularity with cash. I would assume that they would make drugs legal first, then a full digital currency.

    But as Jim Willie has stated what will the USSA use for balance of payments and imports?

    I have been adamant about holding some if not most of your PM’s overseas, even mentioned it on TFM. TPTB fully intend to lock all of the doors and exchanging your PMs in this country will most likely be difficult, at best!

  3. How much gold and silver is in private hands? That would be a very hard question to answer with acceptable documentation. Smart folks prefer to make no statement of account on such matters. It’s known for certain that more people own gold and silver in non-monetary form (jewelry) by far than hold it in fungible units. With states like Texas making moves to recognize that gold is money and that they no longer care to trust New York bankers to store it, people in all states should tell their lawmakers to take steps to re-monetize metals. That includes telling the District of Columbia crowd “hands off.” But Texas leaders are seriously in error waiting till they have a new building up before “asking” HSBC to cough up Texas gold. They are risking never seeing it again. It should be demanded immediately and can be adequately protected by state National Guard units in a building basement. I realized several years ago the Money Power intends to drain the public’s wealth away by medical exploitation, so Mr. Warner’s group may be less concerned about seizing PM by EO or Congress. But since few people own gold and silver, those who do may be stunned to see how far these are bid up once the CME Group is pushed aside, Fed currency really hits the skids, and people generally regard it as trash, including electronic demand deposits. Remember what money will still survive if the Internet goes dark? Not Bitcoin, but the “primitive” precious metals. Contact your state legislators at once on re-monetization moves!

    1. They did ask for their gold back a month ago. I live in Texas so it was published on the internet and in Texas news papers. Where did you get your incorrect information?

  4. a small question/point in regards to ” the U.S. mint is required to produce enough silver to meet demand. ”

    i was under the assumption that the mint no longer needed to produce enough ase’s to meet demand, but per the ‘coin modernization, oversight, and continuity act of 2010’ only produce “quantities that the Secretary determines are sufficient to meet public demand”.

    31 U.S. Code § 5112 – Denominations, specifications, and design of coins

    (e)Notwithstanding any other provision of law, the Secretary shall mint and issue, in qualities and quantities that the Secretary determines are sufficient to meet public demand, coins which—
    (1)are 40.6 millimeters in diameter and weigh 31.103 grams;
    (2)contain .999 fine silver;
    (3)have a design—
    (A)symbolic of Liberty on the obverse side; and
    (B)of an eagle on the reverse side;
    (4)have inscriptions of the year of minting or issuance, and the words “Liberty”, “In God We Trust”, “United States of America”, “1 Oz. Fine Silver”, “E Pluribus Unum”, and “One Dollar”; and
    (5)have reeded edges.

    keep up the great work.

  5. Dave, you heard grandma Yellen talking about negative rates at the FOMC last week. Negative rates are not theoretical any more. The FED will put it into effect the very moment the economy detoriates further. For negative rates they need to abandon cash including gold and silver which are just some special kind of cash. Otherwise there would be a nation wide bank run. Your theory is not far-fetched at all. Welcome to the matrix!

  6. Yes the dogs got in their best licks,
    But would never bone up to their tricks.
    But their high-bred partners in the crime,
    They turned tail and on a dime.
    Dog eats dog for Crimex dog chow,
    Making dog meat of this cash cow.
    So bring it on, outlaw cash now-
    Tail wag the dog, dog and pony show,
    This dog does not hunt, don’t you know?

  7. Hmmm…I’m inclined to agree as well. As stupid and as counter-productive as it would be, they’ll try banning monetary alternatives.

    Of course…it’s IMPOSSIBLE to ban alternative monies…because the market will either smuggle them (black market) or choose a different money altogether. If it has to be CORNFLAKES, then the market will use that. Hell, prisoners already use cigarettes as money, so why not that too? So go ahead, Fed. Make my day! There is nothing you can do to stop the inevitable hyperinflation. NOOOOTHIIING!! BUAHAHAHAHAHAHA!

  8. Great analytical deductions. If Sherlock Homes existed he’d add you to his finance team. A potential contender for large amounts of Silver is India’s demand for power. Since they don’t have their own sources of energy they are building a large Solar power grid. I believe they embarked on the largest solar power plant in Jan 2014. Multiple utility companies building the Solar plant set aside 23,000 acres of land. Its phase one is suppose to come online in 2016 with 1 Gigawatt of power. Eventually they will grow to 4 Gigawatts. The idea is to compete with imported power sources such as coal. These are the types of projects that could break the PM cartel.

    After Fukashima Germany embarked on clean power as well. Its worth noting that Germany provides 75% of its power from Solar and wind. Both technologies use a lot of silver. What I find interesting is that Germany’s adoption rate of solar power decreased substantially in 2012.

    Interestingly in 2011 Saudi Arabia announced that they were embarking on a large solar project and had ear-marked $ 1.09 Billion for their solar project. The project was later delayed by eight years.

    I can’t help but wonder if Silver was being consumed at a much higher rate then previously suspected. Is it possible that silver availability became so tight that TPTB lowered oil and gas to levels in order to crush silver demand used in solar energy technologies? Could that be the true reason Iran was brought back into the energy community? To lower oil prices so that Solar cannot compete? Just a conspiracy theory…but something to think about.

  9. A bit off topic but I was looking at the US Dollar chart and to me it has a striking resemblance to that of the gold chart before it took the big plunge back in April of 2013. Almost the same pattern just on different time scales. I was looking at a one year candlestick chart of $USD on So pull that up and then look at the $GOLD chart from roughly mid 2010 to early March of 2013. Eerily similar.

  10. Great article Dave!
    Something else I wanted to share with you that are good benevolent government is doing…… So we all remember the US Census Bureau. And allegedly they count the US population/population growth every 10 years for government statistics even though it seems like just a big waste of tax payer money to temporarily hire some dipshits, I remember when the Census was about to start we were still at peak unemployment. This was well before we created all these part-time shtt jobs and I remember all the biggest dousches were applying for these crappy temporary jobs and they were all super excited to walk around and get doors slammed in their face. But hey! Everything is awesome and the government is doing it’s patriotic duty to spend more money we don’t have doing something unproductive that doesn’t produce anything or create any wealth whatsoever. But remember….. they are doing God’s work kind of like Goldman Sachs lol and therefore creating jobs. Stick with me because here is where it gets downright weird and I would love for everyone here on this blog to throw out some ideas of WTF. Rant over for the most part. here’s the thing!
    Well…. just the other day I was standing in front of my girlfriends house getting ready to leave to go salmon fishing and guess who strolls up the driveway unannounced….. A US Census Bureau worker with a whole file and clip board ready to ask questions. My first question to her was, “Hey didn’t we already complete the US Census a few years back? What are you doing here then?” The lady went on to inform me that my girlfriends address was one of FIVE ‘randomly’ selected addresses in my city with a population of roughly 65,000 people to do follow up questions. So as I’m putting on my chest waders and loading up the jeep with the rest of the fishing gear I then asked, “How long would this ‘survey’ take if I do it right now?” The lady said 15 to 20 minutes!!!!!! I was heading out and didn’t have time for this lady’s BS and told her politely thanks but no thanks. She went on to inform me that we would HAVE to do it no matter what and that she would keep coming back until the survey was completed.
    I started interrogating her on why us and what if we don’t want to? Why can’t she just pick a different house like the one across the street that’s all living off the governments dole.
    Get this Dave…. this lady clearly stated to me almost like a threat saying that it is written in the US Constitution and that if we didn’t take the time to answer her bullcrap invasive private questions that they could use the threat of imprisonment and a fine to get us to comply. She never did show me where in the US Constitution it says any of that. She also went on to say that this was already her THIRD attempt at our address (I say ‘our’ address because I basically live with my girlfriend of 5 years and we just found out that she’s 8 weeks pregnant!!!)
    And then the lady had the nerve to schedule an ‘appointment’ time on the weekend where she would be back and handed me it on her business card which states that she’s based out of the California field office. And then like a crack head she scurried off. I made sure I wasn’t home on Saturday lol.
    What nerve that haggard crackhead looking Census worker had to schedule an appointment time and day without me agreeing to it. She’s a persistent one doing lots of scurrying about bobbing and weaving through bushes ducking up and down climbing on top of roof tops and poof like magic she was gone……… Didn’t even get to see what vehicle she was driving if any vehicle at all. All of this is true except the bobbing and weaving through bushes part and the rooftops part. Just had to throw that in there for some comedic relief. haha
    What do you make of this Dave? Even her name sounds fake….. And we live in Auburn Washington which is just about 35 minutes South of Seattle and They sent someone from the Los Angeles Regional Office? WTF? To much scurrying about and twitching going on around here. lol
    Her business card states:
    U.S. Department Of Commerce
    U.S Census Bureau
    15350 Sherman Way, Suite 400
    Van Nuys, CA91406
    Her name is
    A. Renee’Shows
    Field Representative
    Los Angeles Regional Office
    Phone:(206) 429-2262
    Office: (800) 992-3530

    1. She must have failed the class in high school that taught what’s in the Constitution. I doubt there’s
      any law that states that you are bound by law to answer CB inquiries, unless Obamma signed an executive order
      making it a requirement.

      It’s troubling that she was so combative and used false assertions to try and impose her will on you.

      This country is fucked.

      1. If you were talking about my post sure do whatever you would like with it. I wanted people to be able to read it and see how far into the idiocy our government agencies have gone. Specifically government workers who think the work they are doing is super important and more important than our Constitutional freedoms. Police are even worse. And I really don’t like the Bureau of Land Use Management. They are the most difficult people to work with and have all sorts of stupid rules on what I can and cannot do on my own property.

    2. Curve –
      Your post really resonates with me when I read it……I get the same sorts of notifications in the mail stating something to the effect of – send this back so we don’t have to come to get you. Who the we are I cannot for the life of me figure out – The notifications look official – document appears to be OMB stamped with official numbers on it etc. Looks like your typical standard issue govt doc – blue highlights on white non tooth OMB type paper – but it just is fishy. I am convinced it is either the statists out to extract info or a scam – one of the two – either way I am not responding at all.

      I live in Chicago area – I have received 4 of these notifications telling me if I don’t comply I will be threatened with imprisonment.
      My reaction is the same as you posted. I don’t do anything with the CB unless it has to do with the 10 year update.
      I just wonder what this is all about. I am fairly conservative – post on a couple of blogs like this one from time to time – I just wonder who is watching me and how they can intimidate me to just shut up.
      Interesting thing is the document that I received last week – looks very official but was addressed to ‘resident’ not my name at my address. I live in a faily nice nabe in a nice building in the NW burbs of Chicago – have assets to take care of me and mine and I just wonder. I have a bad sick feeling this is Obama and his puny little minded creeps trying to extract information to use for malicious purposes. I don’t trust big govt and I have let them know it in no uncertain terms.
      I am near 60 years of age – never seen anything like this document outside the official census in my life. I have been through 4 separate 10 year re-ups and never been threatened with imprisonment for not complying.
      Bottom line – I don’t trust any of this – these creeps who run around purporting to be govt. officials are in my estimation anything but. What have we become but a state sponsored gulag anymore?
      I will do my best to PDF the document I have at home that I am NOT responding to at all and see if I can post it here with Dave allowing. I think people need to be aware of this – seems very creepy and very dead fish smelly to me.

    3. Hey, Curve. That whole scenario sounds really shady. I used to live in a neighborhood that is adjacent to ‘Sherman Way – Van Nuys.’ It is an extremely run-down, low-income area – south central San Fernando Valley. I wouldn’t trust anything that came from that area. ‘Crack central’ is literally correct. Bad, bad news. be careful. I would almost be inclined to advise you to inform your local authorities.

  11. I had to laugh last Friday how CNBC’s first story it either during their 4 or 5 EST show was how gold was up but LOOK at the miners being DOWN! And look at gold’s DOWNTREND! Basically, don’t dare look to gold….

  12. Janet Yellen makes only $200k per year and is an idiot. Conclusion, Janet Yellen is not in charge of the FED.

    Warren Buffet, Jamie Dimon and Larry Summers make millions per year and are some of Obama’s economic advisors. Conclusion, these are the people making the real monetary policy decisions.

    Jamie Dimon sits on the Board of Directors for the Federal Reserve Bank of NY.

    Me thinks that the FED is really run by the top agents for the Richest Family in the History of the World. Jamie Dimon, Bill Dudley and Larry Summers are the most likely top decision makers at the FED.

  13. US, China should coordinate better global financial system: experts | Xinhua 2015-09-21 16:42 (GMT+8)

    “China and the United States could work together to improve the global financial system in order to achieve a stable and sustainable economic development for the world, officials and experts said at a recent symposium.
    “As economic integration between the two countries and their influence on the rest of the world grew, the coordination of economic policies between them became much more important,” said Chinese vice finance minister Zhu Guangyao at the symposium titled “Building the Financial System of the 21st Century: An Agenda for China and the United States.”

    ….There are three major trends affecting global markets that require careful attention: transformative financial technology, strained trading liquidity, and the large scale of market intervention by central banks, said Christopher Giancarlo, commissioner of the US Commodity Futures Trading Commission.
    “A successful management of these challenges will determine the health and vibrancy of the global financial markets,” said Giancarlo, adding, “The US and China are experiencing different stages of financial development, but we share the common determination to continue to improve markets and economies.”

    ….The 7th China-US Strategic and Economic Dialogue (S&ED), held in Washington DC in June this year, produced ample outcomes in various economic issues, including the promises of building more open and stable financial sectors in both countries.
    Both sides spoke highly of the S&ED dialogue this year, which was widely seen as the groundwork for success of President Xi Jinping’s state visit to the United States slated for Sept. 22-25…”

  14. I’ve read the comments concerning those government types who show up at your doorstep, demanding you comply with their questions (or else), and here is how I dealt with the situation last time around (this was the Canadian census, by the way).

    When the questionnaire landed in my mail box the first time, I ignored it. When it came back a second type, with a note that I comply (or else), I also ignored it. On the third time, an actual person showed up at my doorstep, threatening me with heavy fines and imprisonment if I did not comply (the person doing the threatening , I noted with a bemused smile, was a recently arrived immigrant from China). Okay, no problem, I filled out the questionnaire. When it came to the question of sex, I answered “hermaphrodite”(biology teaches that no organism is exclusively 100% male or female, correct?). With race, I answered “multi-racial” (in this wonderful new politically correct age where I can self- identify as whatever I want, who dares to contradict me?). With origin, I answered “African” (Africa is the cradle of all human life, is it not?). And so on and so on. I answered their questions all right (I did comply), but I’d like to see how they made sense of any the answers they received (they probably rolled their eyes, regretting that they were so insistent on getting me to participate in the first place. Whatever, piss on them). Like Bart Simpson once said, do a crappy second rate job, and they’ll never bother you again.

    Disclosure: I am a multi-racial, multi-lingual, handicapped, hermaphroditic lesbian of African origin.

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