Thursday, December 20, 2012

In Case You're Wondering About Gold And Silver

There is no subtler, or surer means of overturning the existing basis of society than to debase the currency.  The process engages all the hidden forces of economic law on the side of destruction, and it does it in a manner which only one man in a million is able to diagnose  - John Maynard Keynes, "The Economic Consequences of Peace"
 That quote right there is the foundation of Keynesian  economics. 

In response to several email inquiries, I wrote an explanation for the current price correction in gold and silver, since we might have expected that gold and silver would take off to the upside after the FOMC expanded its QE program.

The fact of the matter is that we saw very similar price action in mid-December last year, prior to a big rally in the entire precious metals/mining stock sector in January.  There's a lot of reasons for this and I don't want to pontificate about the illegal manipulation and corrupt nature of our financial system.  Instead, I wanted to focus on a little-known technical aspect of the paper trading on the Comex - tied in explicitly with said manipulation, as has been affirmed by Bart Chilton, one of the CFTC commissioners. 

I highly recommend reading this article.  You will understand an aspect of the gold and silver market that very few people are aware of and even fewer understand:  Comex Open Interest Liquidation Manipulation


  1. The point being that there IS no "price correction" in gold. It is paper that is being "priced" and it is currencies that are being traded. Gold has very, VERY little to do with it.
    Once your readers (and gold market commentators) begin to treat physical gold as reality demands, we will all see that a traded commodity that is 199 parts paper and 1 part gold can only be called "gold" in a fantasy world of perception management.
    In that time, people will rush to physical gold and stop trying to capture a top sell for paper profit.
    In that time, all paper will burn as it's REAL value falls once again to ZERO as all fiat currencies have for the last 6000 years, time and time and time again.
    In that time, the true value of gold will again be recognized.

    But it starts with semantics. And it is our responsibility to recognize physical gold as utterly distinct from the COMEX paper pricing mechanism ... especially at a time when this mechanism is failing, and about to be rendered irrelevant.

    Let us call [paper what it is: paper. And let us call only physical gold: GOLD.

    We will all be doing a great service to many worried souls if we stick to that simple fact of reality.

    Merry Christmas to all !!

  2. The whole ball game: They can’t talk about it

    It was time again for the Deutsche Bundesbank to slam the door in my face. Germany’s central bank can’t give a candid account on its gold policy at home and abroad.

    By Lars Schall

    On December 12, I’ve published a response that I’ve received from the press department of the Deutsche Bundesbank with regards to reasonable questions concerning Germany’s gold reserves and the handling thereof – see here. The answers that I’ve received from the Bundesbank’s press department reminded me instantaneously on some classic words spoken by the murdered Black Panther Fred Hampton: “You come up with answers that don’t answer, explanations that don’t explain, conclusions that don’t conclude.” Therefore, I wrote on the very same day again an e-mail to the Bundesbank’s spoke person Susanne Kreutzer.

  3. Dave - do you have an LCS or two you recommend in Denver or NoCo that has decent premiums and takes sizable cash for purchases?


    1. Hi Tia, Chad Roach 303-956-3455


  4. For silver, Craigslist is the best. I've transacted both buys and sells many times with no problem there. Just make sure you meet at a public location (even met in the conf of a 1stbank once).

    For gold you solicit offers on Craigslist, but I haven't seen many sell offers posted there recently.

    If you're really looking for size, like 20 ozs of gold or 500 ozs of silver - use

    Otherwise LCS' are a rip-off in terms of premium charged.

    You might be able to go into Dave's on Broadway next to Rky Mtn Coin and negotiate a transaction if its big enough. Rky Mtn Coin is lame plus they've been selling 1 oz gold coins as soon as they get them in, so they won't be flexible.

  5. Dynamics of Paper Versus Physical Basis

    Grand divergence dynamics are becoming clear. Ann Barnhardt explained in detail how the COMEX will go away. It will not default, but rather fall into irrelevance. She laid it out in credible detailed form with numerous factors coming to play. The COMEX might still suffer the shame and spotlight of criminal prosecution. It will more certainly suffer from being ignored and shunned. The physical basis market will not respond to the declines in the paper futures market. The current dominant market will go away due to lost integrity and eroded trust. The consequences and implications of the recent major scandal and coverup are enormous, staggering, and sweeping. The changes from the MF Global failure and theft of private segregated accounts will come in time, perhaps accelerated by another similar event to slam the message home. The Syndicate has turned desperate, resorting to theft in the open daylight, which has resulted in direct consequences. Hundreds of COMEX clients waited in line for delivery of gold, and had their wallets stolen by JPMorgan. Their Gold & Silver set for delivery found its way into JPMorgan accounts at the COMEX. The details of the missing silver then reappearing silver is discussed in the December Hat Trick Letter. The slow mentally overlook this fact. The alert who point to fraud consider it a smoking gun. On its face, evidence mounts that JPMorgan simply converted 614k ounces of MF Global client silver into JPM licensed vaults. Big hats off to the Silver Doctors for excellent financial fraud forensic analysis. Do not expect prosecution over the crime, for MF Global, for JPMorgan, or for the accomplices in London, not even Jon Corzine. The Fascist Business Model in the Untied States does not permit prosecution. The bigger the crime, the more likely the perpetrator is in control of the government high offices, the financial ministry, the printing press, or the regulators.

  6. Black: Too Big to Prosecute and It's Obama's Fiscal Cliff

    Published on Dec 22, 2012

    Bill Black: Criminal money laundering goes unpunished and Fiscal Cliff was
    created by Obama

    what else will be overlooked in the name of the bankster's stability?

  7. “We are quite likely to have a failure on COMEX in the silver market”

    L.S.: Okay. So we enter again the fall and winter season.

    A.M.: Yes. There are so many systemic dangers now but I think the story I’m going to alight on is one I wrote about recently about gold and silver on the COMEX. The bank participation report came out on the 4th of December, and I was able to complete the figures for this year. Bank shorts are at or near record levels. And what is interesting is that with the prices of gold and silver well below the all-time highs there are no profit-takers in the market to sell contracts to close their shorts. And in silver it is very, very alarming. This leads me to think that we are quite likely to have a failure on COMEX and in the silver market in particular.

    If you have a failure in silver on COMEX then that is going to affect the gold futures market as well. The West’s central and commercial banks have suppressed the price of both gold and silver by supplying central-bank gold and increased short positions, making prices far too cheap. The result has been a massive transfer of gold and silver to Asia. This is the relevance of the point that you have been raising about Central Banks gold holdings, and it is also going to bring into question the solvency of the bullion banks who are short.

    So, I think that while it may not be obvious to many people at the moment, when we look back at the fourth quarter we will see that the conditions were in place for a huge bear squeeze, for silver in particular. I would assume that the short position in gold is more controllable so long as Western Central Banks continue to make bullion available to the bullion banks that are short either on COMEX or with LBMA. But silver is different, nobody has it for sale. There is no silver around.

    L.S.: Yes, there is no stock.

    A.M.: No, exactly.

    L.S.: And that’s the big difference?

    A.M.: Yes, and this silver position could actually destabilize other derivatives in financial markets. I blame complacency on this matter on Keynesian economists and monetarists saying, “Oh well, gold is just a commodity”. It’s absolute nonsense, we are talking about the most important money to all mankind. If you go into Asia and you ask what is money you will be told, ”Gold and silver”, not rupees, not any paper currencies issued by governments. Gold and silver, that’s what they regard as money, that is where they put their savings. And that is why we are short of it.

  8. Secede Secede Secede Secede Secede Secede Secede Secede Secede Secede Secede Secede Secede Secede

    There's only one word which must take place between the physical and paper world of gold and silver....simply put , if you don't hold the physical...
    you don't own it...period.

  9. 'Must listen' interview. Dovetails nicely with what you've written.

    Andrew Maguire: Whistleblower & Independent London Metals Trader

  10. At this time Gold had another range bound week of trading. We saw prices firm up a bit and close near the high end of the range on Friday. We do not really have much new to report this week as Gold is continuing it’s long consolidation phase.
    invest in silver