tag:blogger.com,1999:blog-7982981413278241287.post7266543210201145044..comments2023-10-28T17:54:39.467-06:00Comments on The Golden Truth: Are The Currency Wars For Real?Dave in Denverhttp://www.blogger.com/profile/03016238915167131989noreply@blogger.comBlogger37125tag:blogger.com,1999:blog-7982981413278241287.post-91743282929672678722013-02-26T21:35:37.753-07:002013-02-26T21:35:37.753-07:00Is it possible for the government to use both flex...Is it possible for the government to use both flexible and fixed exchange rates within the same economy? and if so,..what would be its effect on equilibrium income? thank you!!<br /><br /><a href="http://hvactrainingpro.com/hvac-schools-in-delaware/" rel="nofollow">hvac schools in Delaware</a>Anonymoushttps://www.blogger.com/profile/06106007750484567313noreply@blogger.comtag:blogger.com,1999:blog-7982981413278241287.post-59754500166024884182013-02-21T23:08:53.416-07:002013-02-21T23:08:53.416-07:00just think it is a example, i think everyone shoul...<br />just think it is a example, i think everyone should have their own opinion.<a href="http://www.topgw2gold.com/CD-Key/" rel="nofollow">Guild wars 2 KEY</a><br />Anonymoushttps://www.blogger.com/profile/02996957078607230288noreply@blogger.comtag:blogger.com,1999:blog-7982981413278241287.post-48291736630856825322013-02-14T02:31:45.488-07:002013-02-14T02:31:45.488-07:00The Fed has announced that it will continue bank b...The Fed has announced that it will continue bank bailouts on the black hole derivative debt that the banks have gotten themselves into. With BRIC countries pushing for a common currency, will we see a currency war come from this?<br /><br /><a href="http://hvactrainingpro.com/hvac-schools-in-delaware/" rel="nofollow">hvac training in Delaware</a> Anonymoushttps://www.blogger.com/profile/12736452060408924515noreply@blogger.comtag:blogger.com,1999:blog-7982981413278241287.post-5538372580357998072013-01-31T11:10:11.833-07:002013-01-31T11:10:11.833-07:00If Mankiw thinks looting is rational and is the to...If Mankiw thinks looting is rational and is the top of his profession and faculty at the esteemed(?) Harvard, what makes people think the rest of the ethically challenged would tell the truth about the gold being unencumbered?<br /><br />Speech William K. Black at the Public Eye Awards 2013 <br /><br />http://youtu.be/moWKXQsxgN0?t=3m37s<br /><br />Sumners was from Harvard....think about it....Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-7982981413278241287.post-11956948946328459052013-01-31T10:49:42.440-07:002013-01-31T10:49:42.440-07:00The Battle of Athens: Restoring the Rule of Law
T...The Battle of Athens: Restoring the Rule of Law<br /><br />The Battle of Athens was an armed rebellion led by WWII veterans and citizens in Athens and Etowah, Tennessee, United States, against the tyrannical local government in August 1946.<br /><br /><br />http://youtu.be/U5ut6yPrObwAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-7982981413278241287.post-23617319029383557642013-01-31T10:24:03.034-07:002013-01-31T10:24:03.034-07:00The price of anything is the amount of life you ex...The price of anything is the amount of life you exchange for it.<br />- Henry David Thoreau<br /><br />Society is like a stew. If you don't stir it up every once in a while then a layer of scum floats to the top.<br />- Edward Abbey<br /><br />When the rich wage war, it’s the poor who die.<br />- Jean-Paul Sartre<br /><br />The Stock Market: Food Stamps for the 1%<br /><br /><br />For most of the past four or five years, I have spent the majority of my time studying the dominant forces that fuel the power structure that exists in these Unites States today, and indeed throughout the world. My education began quite suddenly and unexpectedly in the middle of the last decade when I started understanding fiat money, Central Banking and the global monetary system. Since then, I have expanded my understanding to mainstream media brainwashing, the military-industrial complex, the role of the political oligarchs in Washington D.C., the corruption of the food industry under the complicity of the FDA itself and much more. The more I peered under the curtain, no matter what the industry, the clearer it became that the system had no chance of survival under its current form. What's worse, it became obvious that the very small 0.01% of the population that I call oligarchs (financial and political), who are actively gaming the system for their own pleasure, are well aware of the system's terminal nature. That’s why they are rapidly putting in place the police state grid.<br /><br />http://libertyblitzkrieg.com/2013/01/31/the-stock-market-food-stamps-for-the-1/#more-3416Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-7982981413278241287.post-53434426166590290982013-01-31T09:58:26.797-07:002013-01-31T09:58:26.797-07:00Credit Supernova!
Minsky’s concept, developed nea...Credit Supernova!<br /><br />Minsky’s concept, developed nearly a half century ago shortly after the explosive decoupling of the dollar from gold in 1971, was primarily a cyclically contained model which acknowledged recession and then rejuvenation once the system’s leverage had been reduced. That was then. He perhaps could not have imagined the hyperbolic, as opposed to linear, secular rise in U.S. credit creation that has occurred since as shown in Chart 1. (Patterns for other developed economies are similar.) While there has been cyclical delevering, it has always been mild – even during the Volcker era of 1979-81. When Minsky formulated his theory in the early 70s, credit outstanding in the U.S. totaled $3 trillion.† Today, at $56 trillion and counting, it is a monster that requires perpetually increasing amounts of fuel, a supernova star that expands and expands, yet, in the process begins to consume itself. Each additional dollar of credit seems to create less and less heat. In the 1980s, it took four dollars of new credit to generate $1 of real GDP. Over the last decade, it has taken $10, and since 2006, $20 to produce the same result. Minsky’s Ponzi finance at the 2013 stage goes more and more to creditors and market speculators and less and less to the real economy. This “Credit New Normal” is entropic much like the physical universe and the “heat” or real growth that new credit now generates becomes less and less each year: 2% real growth now instead of an historical 3.5% over the past 50 years; likely even less as the future unfolds. <br /><br />http://www.zerohedge.com/news/2013-01-31/bill-gross-credit-supernovaAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-7982981413278241287.post-63370483901329765992013-01-31T09:35:51.498-07:002013-01-31T09:35:51.498-07:00http://www.merkinvestments.com/downloads/2013-01-3...http://www.merkinvestments.com/downloads/2013-01-31-fools-gold.pdfMichael Jacksonhttp://outsourcingtheuniversitypress.com/noreply@blogger.comtag:blogger.com,1999:blog-7982981413278241287.post-18009416593678009072013-01-31T07:55:24.310-07:002013-01-31T07:55:24.310-07:00Gold Overlay Works As Currency Hedge In EM Currenc...Gold Overlay Works As Currency Hedge In EM Currencies<br /><br />Hedging emerging market currency risk can be expensive because sometimes those markets are not very liquid and when price direction changes, it can be difficult to lift the hedges. Research by the World Gold Council released Thursday shows that gold can work as a partial hedge for emerging market currency risk.<br /><br />Their study showed that using a blend of a 50% gold overlay and 50% currency hedge can reduce portfolio drawdowns - or peak to valley declines - for investors with emerging market allocations relative to a foreign-exchange hedge. Gold also works as a way to reduce tail-risk – that is to help minimize losses during catastrophic events, their research showed. Also, since emerging market demand for gold is one of the reasons why gold prices have risen in the past 10 years, gold also offers some correlation to emerging market growth.<br /><br />The study was done from a U.S. dollar view, but the council said its findings are applicable to other foreign investments where higher borrowing costs make traditional currency hedging expensive.<br /><br />The sample portfolio tested had a 10% emerging markets exposure and no gold. The council looked at three strategies: one, an unhedged emerging market index (in U.S. dollar terms); two, a currency-hedged emerging-market index; and three, a hedging strategy split between 50/50 between a currency hedge and a gold overlay.<br /><br />The council’s previous research has show gold can play a role in long-term strategic allocations, with optimal ranges between 2% to 10%. So why do a study with gold as an overlay?<br /><br />Part of it was to show how the metal acts in a different setting, and specifically as a borrowed asset, said Juan Carlos Artigas, global head of investment research at the World Gold Council, in an interview with Kitco News.<br />“We wanted to see how gold would act if you added exposure in a different way. As an overlay you add exposure by borrowing cash to do it. The net effect is similar,” he said.<br /><br />In the past several years, gold has been seen as an alternative currency by some investors and this research underlines that view. Also, Artigas said, for those not yet ready to embrace gold ownership, a gold overlay is one way to get familiar with its role.<br /><br />“For those who aren’t ready to put it in their portfolio, we wanted to show that gold works as a currency,” he said.<br /><br />http://www.kitco.com/reports/KitcoNews20130131DeC_interview.htmlAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-7982981413278241287.post-15942508517951438572013-01-30T21:10:08.525-07:002013-01-30T21:10:08.525-07:00http://www.youtube.com/watch?v=1CLhqjOzoyE&fea...http://www.youtube.com/watch?v=1CLhqjOzoyE&feature=player_embedded#!Michael Jacksonhttp://outsourcingtheuniversitypress.com/noreply@blogger.comtag:blogger.com,1999:blog-7982981413278241287.post-12224079840007486612013-01-30T19:05:53.609-07:002013-01-30T19:05:53.609-07:00The registered silver is silver that is being kept...The registered silver is silver that is being kept at the Comex by investors. Of the bona fide investors, this is going to be investors who took delivery from their long position are "safekeeping" it at the Comex for whatever reason, not the least of which would be that they intend to sell it back on Comex via shorting futures. <br /><br />Now, it's Ted Butler's theory that the enormous daily/weekly movement of silver in and out of the Comex is a sign of market shortages. There can be a lot of reasons for this. I don't watch the daily inventor swings like he does, although Ed Steers Gold/Silver Daily reports on inventory changes every day and Ted Butler provides analysis of it in his bi-weekly subscription letter. Ted Butler has spent his professional career for the last 30 years studying all aspects of the silver market. No one understands it better than him, except for insiders are JP Morgan.<br /><br />I do know from observing the Comex warehouse inventories over the last 12 years that the amount of silver moving in and out over the last 4-6 months has been enormous relative to the last 11 1/2 years. Absolutely enormous. When silver moves in and out of eligible inventory, it means that it is physically loaded into trucks and shipped. You tell me what it means. I trust Ted Butler understands the dynamic better than you and me put together.<br /><br />My view - and it's shared by many with better insight than me - is that SLV/GLD are used to put out physical shortage fires. There's been quite a bit of movement and one rather large one last week/this week in and out of SLV. I believe BOTH the Comex inventory and the SLV inventory is used to fight delivery shortage fires.<br /><br />This is from Butler's Saturday issue: "One of the facts that favor silver is the relative tightness in the physical supply of silver versus gold. My prime indicator of wholesale physical silver tightness, the movement of metal into and out from the COMEX-approved silver warehouses, registered perhaps the most frantic turnover yet this week, despite it being a 4 day bank work week. More than 4 million oz came in and were shipped out this week, as total inventories rose less than 200,000 oz, to almost 152.3 million oz. Try as I might, I can come up with no more plausible explanation for the frenzied metal turnover than it being due to almost hand to mouth conditions in the wholesale supply chain. And the more I think about it, I don’t know if there could be a better indicator for a developing shortage."<br />--------------------<br /><br />I would not keep silver at any Comex inventory. The Comex is a very corrupt beast. Our fund takes delivery of Comex silver but we specifically use a NON-Comex private depository in Delaware.<br /><br />In terms of the big increase in eligible silver, it's jumped up by like 40mm ozs in the last 9-12 months. Without delving into the cumbersome CME website to track the history of contract deliveries, I'm sure the bulk of that is easily explained by investors taking delivery.<br /><br />In terms of the silver basis question, I don't pay a lot of attention to the shape of the silver futures curve unless we go into periods of backwardation. Currently the curve is in contango. To be sure, if the enormous physical silver movements are being used fight shortage fires, then the manipulators can pre-empt the market from going into backwardation.<br /><br />The U.S./Canadian mint 1 oz coin delivery issues is probably a better signal right now than the silver futures curve.Dave in Denverhttps://www.blogger.com/profile/03016238915167131989noreply@blogger.comtag:blogger.com,1999:blog-7982981413278241287.post-69617395837711800582013-01-30T17:33:08.729-07:002013-01-30T17:33:08.729-07:00You wrote "The rise in inventory means more i...You wrote "The rise in inventory means more investors are taking delivery of their silver futures". Could you please explain more on this? If more investors were taking delivery of physical silver, then there would be violent movements in the registered silver category. However, the registered silver category remains a bit too calm, but the eligible silver category sees very big increases. Any thoughts on that? <br />By the way, do you think the "silver basis" is useful for predicting the tightness of the physical market? Many people are pointing at the increase in the silver basis since last July to claim that the physical market is not so tight. Personally I don't think the silver basis concept is useful. What do you think?Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-7982981413278241287.post-18324212276310973582013-01-30T10:43:45.118-07:002013-01-30T10:43:45.118-07:00Draghi’s Bank of Italy Knew of Monte Paschi Misste...Draghi’s Bank of Italy Knew of Monte Paschi Missteps in 2010. <br />The Bank of Italy under former Governor Mario Draghi spotted accounting irregularities that allowed Banca Monte dei Paschi di Siena SpA to mask losses more than two years before the lender was forced to say it will have to restate profit.<br /> In 2010, “a problem came to light” on Monte Paschi’s booking of a structured deal called Santorini, Italy’s Rome- based central bank said in a report dated Jan. 28. The Bank of Italy alerted “other authorities” a year later and talks with those regulators, which it didn’t identify, haven’t concluded. It didn’t explain the delay in forcing the bank to disclose the information.<br /><br />The Bank of Italy’s account of Monte Paschi’s use of derivatives, released yesterday, calls into question its oversight of the world’s oldest bank, which is seeking the second taxpayer bailout in four years. Bloomberg News revealed the Santorini deal in an article on Jan. 17. Monte Paschi (BMPS) borrowed about 1.5 billion euros ($2 billion) in December 2008 from Deutsche Bank AG (DBK) as part of a derivative deal, dubbed Project Santorini, that helped it disguise losses. Hours after the Bloomberg report, Monte Paschi said it will conduct a “thorough” review of several structured deals to determine their effect on previous years’ accounts as well as any future impact.<br />Draghi Role<br /><br />Draghi, 65, led the Bank of Italy from 2005 to 2011, when he left to succeed Jean-Claude Trichet, 70, at the helm of the European Central Bank. He has worked as an economics professor in Italy, a financial diplomat at the World Bank, a bureaucrat at his country’s Treasury and a banker at Goldman Sachs Group Inc. (GS) In December 2005, he was named to replace Italian central bank Governor Antonio Fazio, 76.<br /><br />Officials for the Bank of Italy didn’t have an immediate comment. Asked about Draghi’s role in overseeing Monte Paschi, an ECB spokeswoman declined to comment.<br />Masking Loss<br />Santorini helped Monte Paschi obscure a 367 million-euro loss from an older derivative contract with Deutsche Bank, according to more than 70 pages of documents outlining the deal and obtained by Bloomberg News. As part of the arrangement, the Italian lender made a losing bet on the value of the country’s government bonds. The bank’s new management is still trying to determine the extent to which Santorini and two other derivative deals were used to distort earnings.<br />http://www.bloomberg.com/news/2013-01-30/draghi-s-bank-of-italy-knew-of-monte-paschi-missteps-in-2010.html<br /><br />and ever other bank is clean if you believe in fairy tales.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-7982981413278241287.post-11786416081597364012013-01-30T10:22:25.829-07:002013-01-30T10:22:25.829-07:00Manhattan real estate maintenance fees breaking th...Manhattan real estate maintenance fees breaking the bank<br /><br />Monthly maintenance fees in Manhattan have soared to an average of $1.70 per square foot, meaning that a 1,200 square foot condo will cost you $2,000 a month in maintenance fees, on top of your mortgage, utilities and (usually) property taxes, according to CNBC.<br /><br />http://www.housingwire.com/fastnews/2013/01/30/manhattan-real-estate-maintenance-fees-breaking-bank?<br /><br />pretty steepAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-7982981413278241287.post-34216476639379390512013-01-30T10:18:20.556-07:002013-01-30T10:18:20.556-07:00Lanny Breuer on Whistleblowers and Prosecuting Ban...Lanny Breuer on Whistleblowers and Prosecuting Bankers (Liar Liar version)<br /><br />http://www.capitalismwithoutfailure.com/2013/01/lanny-breuer-on-whistleblowers-and.htmlAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-7982981413278241287.post-9031505399832306452013-01-30T10:01:16.271-07:002013-01-30T10:01:16.271-07:00Lack of Criminal Prosecutions Linked to Obama and ...Lack of Criminal Prosecutions Linked to Obama and Holder's Wall St. Connections<br />January 30, 2013<br /><br />Dimitri Lascaris: Department of Justice under George Bush secured convictions of major figures from the business community in complex financial frauds and Obama and Holder have not done so following the worst epidemic of financial fraud in the modern era.<br /><br />http://therealnews.com/t2/index.php?option=com_content&task=view&id=31&Itemid=74&jumival=9580#.UQlQgEdpDRVAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-7982981413278241287.post-2940031658285487572013-01-30T07:38:37.466-07:002013-01-30T07:38:37.466-07:00India to bring back IIB's to keep investors aw...India to bring back IIB's to keep investors away from Gold<br /><br />NEW DELHI(BullionStreet): India's central bank has decided to reintroduce the inflation-indexed bonds (IIBs) with slight changes and also to allow banks to buy back gold.<br /><br />The move is part of a series of efforts by authorities in the world's largest gold consumer to cut down imports and to keep investors away from gold.<br /><br />RBI governor D.Subbarao said the central bank had introduced IIBs some years ago but it did not take off due to some design flaws.<br /><br />The most important change is that both principal as well as the coupon rate on the bond will be indexed to inflation, he added.<br /><br />He however said some clarifications need to be addressed before the official launch such as which inflation index to be followed, wholesale price index-based inflation (WPI) or consumer price index-based inflation (CPI).<br /><br />http://www.bullionstreet.com/news/india-to-bring-back-iibs-to-keep-investors-away-from-gold/3931<br /><br />how foolish....Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-7982981413278241287.post-91494981734863823172013-01-30T07:16:58.552-07:002013-01-30T07:16:58.552-07:00Envelopes of Cash: Corruption Charges Put Madrid o... Envelopes of Cash: Corruption Charges Put Madrid on Defensive<br /><br />New revelations about the corruption scandal that is rocking Spanish politics has put conservative Prime Minister Mariano Rajoy and his party on the defensive. Voters are beginning to lose patience.<br /><br />The powerful reacted the way powerful people react when they are in a tight spot. Former Prime Minister José María Aznar instructed his attorneys to sue the newspaper El País. Current Prime Minister Mariano Rajoy, a conservative like Aznar, threatened to sue anyone who leveled accusations at his People's Party (PP).<br /><br />For weeks, Spanish newspapers have published new details about one of the country's biggest ever corruption scandals, called "Gürtel affair," named in German after businessman Francisco Correa, whose last name means "belt". For years Correa allegedly bribed PP officials with money and gifts in return for public contracts.<br /><br />The general outline of the affair was known, but not the fact that the former treasurer of the People's Party, Luis Bárcenas, had amassed up to €22 million ($30 million) from dubious sources in accounts with Dresdner Bank in Geneva. The judge on the Spanish National Court only learned of this as a result of legal assistance from Switzerland. Even the conservative newspaper El Mundo could no longer refrain from delving into the scandal.<br /><br />For as long as Bárcenas managed the PP's finances, El Mundo writes, the politician handed party officials envelopes filled with banknotes worth between €5,000 and 15,000 every month. A former member of parliament for the PP confirmed this practice. Although accepting additional pay is not prohibited if a person declares it on his tax return, the conservatives are nonetheless worried. Bárcenas may have recorded the source of the funds in his notebooks (anonymous donations to political parties have been banned since 2007), as well as to whom the money was passed and why.<br /><br />http://www.spiegel.de/international/europe/corruption-charges-have-spanish-prime-minister-rajoy-on-the-defensive-a-880244.htmlAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-7982981413278241287.post-17517685781637610942013-01-29T22:57:31.697-07:002013-01-29T22:57:31.697-07:00Actually, 1000 oz bars are what you want. That si...Actually, 1000 oz bars are what you want. That size is the global trading standard. Yes, the bars aren't necessarily exactly 1000 ozs. But the bars should be Comex eligible. Make sure Monex sends you the paperwork for bars, which should list the actual weight, serial number etc. Keep the 1000 oz bars rather than paying to have them broken down into rounds.Dave in Denverhttps://www.blogger.com/profile/03016238915167131989noreply@blogger.comtag:blogger.com,1999:blog-7982981413278241287.post-35143952194460940322013-01-29T22:53:24.733-07:002013-01-29T22:53:24.733-07:00Thanks for the feedback - I appreciate it! My com...Thanks for the feedback - I appreciate it! My compensation is in the form of the mental therapy writing these posts give me lolDave in Denverhttps://www.blogger.com/profile/03016238915167131989noreply@blogger.comtag:blogger.com,1999:blog-7982981413278241287.post-59530018092296264732013-01-29T22:26:44.680-07:002013-01-29T22:26:44.680-07:00I read a lot of economic breakdown on the web, and...I read a lot of economic breakdown on the web, and i always come back here for very clear, concise analysis. No spin, just say it the way you see it....<br />Do you have a donation link?Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-7982981413278241287.post-57003213926882224522013-01-29T21:26:40.069-07:002013-01-29T21:26:40.069-07:00Two major Swiss banks nudge customers into allocat...Two major Swiss banks nudge customers into allocated gold<br /><br />Swiss Banks Lose Old Taste for Gold<br /><br />By Jack Farchy<br />Financial Times, London<br />Tuesday, January 29, 2013<br /><br />http://www.ft.com/intl/cms/s/0/46c25732-6a10-11e2-a7d2-00144feab49a.html<br /><br />The wealthy have for centuries turned to Switzerland as a safe and convenient place to stash their gold. But Swiss banks are now demanding higher fees to accept the world's bullion, as they seek to reduce the size of their balance sheets.<br /><br />UBS and Credit Suisse, which dominate the powerful Zurich-based physical gold market, have hiked their charges for holding the metal, according to clients and people familiar with the banks.<br /><br />The move is an attempt to persuade their biggest clients -- including other banks, hedge funds, and institutional investors -- to take direct ownership of their gold in so-called "allocated" accounts, with the bank simply acting as a custodian.<br /><br />http://www.gata.org/node/12187Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-7982981413278241287.post-64991932870831479002013-01-29T20:43:55.614-07:002013-01-29T20:43:55.614-07:00The account is call "Atlas". You can le...The account is call "Atlas". You can leverage your purchase as much as 5:1. I have done it at times, but mostly own my bars outright. I believe I will take your advice. I was thinking of taking delivery and sending the bars to Quality Silver Bullion where they can convert them into rounds or bars. I would then take delivery. My one apprehension is that I've heard 1000oz bars may not be 1000oz. Thoughts? Thanks for taking the time. Keep up the great work!ChicagoMarkhttps://www.blogger.com/profile/00156461718854457236noreply@blogger.comtag:blogger.com,1999:blog-7982981413278241287.post-63726430018251602182013-01-29T20:37:38.259-07:002013-01-29T20:37:38.259-07:00one more point about the Comex open interest. The...one more point about the Comex open interest. The true industrial and commercial users of physical silver, the commerical end users as opposed to the bullion banks who are also classified as "commercial," require physical delivery under any circumstances. It is my hunch and it is highly likely that the persistent high level of silver o/i could be attributed to the fact that the commercial end-users of physical stay long regardless of the paper raids. They need the silver to run their businesses. If we could determine if this is the case in terms of a detailed breakdown of the open interest, then my analysis is 100% correct.Dave in Denverhttps://www.blogger.com/profile/03016238915167131989noreply@blogger.comtag:blogger.com,1999:blog-7982981413278241287.post-85508178186648989862013-01-29T20:37:06.175-07:002013-01-29T20:37:06.175-07:00You and everyone else is puzzled. The eligible cat...You and everyone else is puzzled. The eligible category is supposed to be silver that investors safekeep in Comex warehouses. I would not trust them with my silver, however. The rise in inventory means more investors are taking delivery of their silver futures, assuming the Comex isn't playing accounting games with the physical. I sent these thoughts to Bill Murphy this past Saturday re: o/i:<br /><br />Two interesting observations: 1) most of the growth over the past year has been in the eligible inventory. I don't know if you've been following Ted Butler's analysis, but every report now pretty much he goes over the massive flows in and out of the Comex every week. This is something that didn't start occurring until about 4-6 months ago. He's convinced that it is direct evidence that it's a signal of how tight the physical market is. That combined with the SLV/HSBC reports is quite strong circumstantial evidence that SLV and the Comex eligible inventory is being used to put out physical "fires" on a weekly basis. 2) JPM has gone from not being silver vault custodian on the Comex about 18 months ago roughly to now being the third largest custodian. Given that is commonly accepted that JPM is the primary illegal Comex silver manipulator, combined with the fact that is the primary SLV custodian, can only lead one to conclude that JPM, the Comex and SLV are the heart of a massive scheme to cover up just how short the paper market is of physical silver. Just look at the inexplicable delivery to HSBC - the largest Comex silver custodian and no longer an SLV subcustodian - of $876 million worth of 1000 oz silver bars. Now the U.S. Mint and the Royal Canadian Mint are failing to meet the retail investor demand of physical silver. The difference between the Comex and the Mint business is that the mints have no choice but to either make hard physical deliveries or cut off orders. They are both cutting or limiting orders. When you put all of this together and stir it up it, the only conclusion is that the world is massively short physical silver delivery obligations. This is why the Comex long interest is staying so persistently high at the 140,000 contract level despite numerous aggressive cartel raids. We have never seen the silver open interest behave this way under such paper duress. There is a massive physical shortage of delivery obligations derived from the massive paper short, both Comex and OTC derivative based. There is going to be a huge explosion higher in the price of silver at some point in the near future.Dave in Denverhttps://www.blogger.com/profile/03016238915167131989noreply@blogger.com