Is The Fractional Bullion Scheme Finally Beginning To Collapse?


We will not be receiving our shipment of RCM 10 oz Silver bars. This coupled with an internal inventory discrepancy has effected a few of our customer orders. We have been working diligently each day to secure RCM bars through various sources for our customers at any cost. Unfortunately, we were unable to fulfill some orders, including yours.   
–  Email sent to Provident Metals customers who prepaid for silver bars which Provident had represented to be in Provident’s inventory

“Internal inventory discrepancy?”  What other inventory discrepancies are occurring at Provident.   What kind of “inventory discrepancies” are occurring at other bullion dealers.  I can’t believe Provident sent notice of delivery default with a claim of inventory control issues.

empty-vault

Why not just admit the truth that the bullion dealer pre-sold bars that it was expecting to receive from the RCM and the RCM stopped production and ran out of supply before Provident received its full order allocation?

On the heels of Bullion Direct direct blowing up, this is another indicator that the fractional bullion system is beginning to collapse.

YTD silver eagle sales reported by the U.S. mint  are running well ahead of 2014’s record sales pace.   Gold eagle sales in July were up 456% from July 2014.  I heard today that the RCM is now putting silver maple leafs on allocation.   Retail demand for bullion is beginning to avalanche.

Gold sales in Malaysia were up 50% in July – LINK.   South Korea is on track to import a record amount of gold in 2015 – LINK.   Gold imports into India have accelerated well ahead of the biggest  seasonal buying period, which begins in a few weeks.  Deliveries into and withdrawals from the Shanghai Gold Exchange our occurring now at a record rate.

The Federal Reserve, in conjunction with the U.S. Government and the Central Banks and Governments of the EU, has chosen to push down the visible price of gold as much as possible primarily by flooding the market with the naked short-selling of paper gold.  The motive behind this is to support and reinforce the highly artificial and uneconomic policies of zero interest rates and money printing in order to keep the U.S. and European economic systems from collapsing.

The unintended consequences of this operation are now starting to surface, not the least of which are several indicators which suggest that there is significant stress in the availability  physical gold and silver  in both the U.S. and London.

The capitulation is remarkable. I see it everywhere. However, I continue to believe that, in retrospect, this will be seen as the best buying opportunity in the history of gold and,especially, silver.   –  John Embry (from email exchange with John earlier this week)

8 thoughts on “Is The Fractional Bullion Scheme Finally Beginning To Collapse?

  1. Don’t worry about the shorts on COMEX. They are highly leveraged. Once the tide turns they will be the most enthusiastic gold and silver buyers you can imagine.

  2. If there was a way to do some serious damage to those who buy silver for their own protection and insurance, what better way to wage asymmetrical warfare against silver businesses and their clientele than co-opt and damage the reputations of government backed or controlled Mints and their supply chains
    The US Mint is a part of the US government and thus completely controllable by the government.
    RCM is a private for-profit mint with sketchy account and a $100,000,000 minting subsidy from the Canadian government. It’s spotty shortages will grow with time as silver’s ready availability becomes increasingly questionable. The US Mint is out and RCM is catching that fever. I believe this is not an accident.
    These glaring deficiencies in precious metal inventory, availability and near force majeure delivery situations quite possibly are a result of government coercion designed to damage the reputation of good businesses like Provident, scare consumers and create artificial scarcity when there should be none, thus creating concerns in all precious metal buyers that silver and gold are too speculative and dangerous an investment. If the retailers cannot maintain adequate stocks, are unable to deliver inventory on prepaid orders and cause disarray and lack of trust in the wholesale to retail markets, damage is as complete as direct government action against precious metals.
    Is this a conspiracy against precious metals? Given the war on cash (even in its paper form) and its fellow storehouses of value, this is not to far fetched.
    Cheers. Keep up the good fight

  3. God, I hope so, Dave. This whole under-pricing of silver has got me thinking about what prices the eastern bullion sellers are offering for silver at the moment. You, Bill, Embry, Hoffman, etc, are all right; the East is going to set the price when the western bullion banks collapse, so what’s the news from their side, I wonder? Are their prices rising in real terms in relation to our own?

    Talk about irony; we Americans are so used to buying stuff for cheap from China, that we’ll soon realize the tables have turned, at least for the precious metals. Time to start learning Mandarin!

  4. A bit off topic I know, but I felt it should be posted here to remind everyone that paper promises, much like digital trades, are risky no matter how careful you are, especially when the counterparty turns into Lehman 2.0

    Posted on Zerohedge

    http://www.zerohedge.com/news/2015-08-08/12-trillion-fat-finger-how-glitch-nearly-crashed-global-financials-system-true-story

    And the original post-

    http://www.b3ta.com/questions/expensivemistakes/post95910

    If hackers ever wanted to take down the West for good, they would skip targeting the power plants or military and concentrate on the softest target, namely the big banks. Considering the the enormous hubris, over self confidence and perceived self invulnerability, penny pinching mentality and greed of the big banks, don’t expect any of them to have a plan B when their version of Hal goes down for the count.

  5. As much as I’d like to add to my very modest stack at these price levels I’ve come to realize enjoying some freedom away from work is more important. Got my scuba certification in April and did some fantastic diving in the Caribbean. Going to La Paz in November and Similan Islands in February. Take Dave’s advice and live while the living is good, don’t over extend yourselves in the PM space.

    My undersea images are here: http://www.reefheart.com

    Cheers

    1. My Singapore dealer is pretty well stocked but I have noticed much less current inventory this week than usual. Going to call them after the weekend holiday ends Tuesday (50 years independence), and see how they feel about RCM and their other suppliers.

      Also, you guys talked about pensions and retirement accounts at the end, I made a very difficult decision to retire early from a very lucrative job so I could convert my 401K to a self directed IRA and get it the hell offshore! (there were other factors to help the retirement decision). Don’t know if that will protect MY money, but it sure feels better to have control over it, more or less.

      Great show, great Intel as usual, Dave you know your shit!

  6. Hi Dave,

    Where I work you don’t have to participate in the company’s 401K plan. They match part of your contributions up to a certain percentage. The big issue that I see is that you are limited in the types of funds that you can invest in. Plus, there is the threat that the government will change the rules. If the system blows up which is a real possibility IMO then all bets are off. For those reasons and due to my current financial situation I am not participating in the plan.

    As far as Jade Helm is concerned if they were training to institute martial law in another country then the exercise would be held there not here. They may not be planning on instituting martial law but they are clearly preparing to be able to do so.

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