Saturday, July 3, 2010

commentary..July 3.2010

Good afternoon Ladies and Gentlemen:
 
Gold closed yesterday up by $1.40 to $1207.40.  Silver however fell by 6 cents to close at $17.70.
 
However once the comex closed at 1:30 and the Dow starting to trade badly, gold rose to $1211.70 in the access market and silver rose to $17.87.
 
The comex gold OI fell by a smallish 15000 contracts with a huge 45 dollar fall on Thursday.  The resting position of the OI basis Thursday night
 
as reported by the comex is:  590,685.
 
It is interesting that the silver OI hardly budged.  It closing level came in at : 127254 down only 736 contracts.
 
It is now quite clear that one or a few hedge funds blew up on July 1.2010.
 
These hedge funds went short the Euro and thus dollar long and to boot they bought as a hedge some gold contracts demoninated in usa dollars.
 
They would short, say 5 contracts of Euro notes and buy one contract of gold in usa as a hedge. The thinking here was that the Euro would collapse ahead of all other currencies including the usa dollar.
 
When the Euro failed to break 1.20 to the dollar ( many of these trades were put on with the Euro at 1.21,), the hedge funds knew that their bet was faulty... George Soros and friends
told everyone that they were "all in" as they bet the farm that the Euro was going to collapse first.
 
 
When the Euro started to rebound past the 1.23 mark, these guys were toast and all their contracts were liquidated along with the gold contracts.  The gold cartel knowing this and also
 
well aware that Friday was the all important jobs report, added massive contracts of gold shorts to accentuate the fall.  These bankers  are classic crooks as they can see their customer's positions while they act as brokers.
Well that is how I perceive what happened on Thursday.
 
It is totally amazing that the OI fell by only a small 15000 contracts.  The cartel are now in worse shape than before the hedge fund(s) liquidation as the gold price is 45 dollars lower and an OI ,
 
still close to 600,000.  Actually, I would like to bet that the OI to be announced on Tuesday (basis Friday) will be around 600,000 as many astute players realized what was going on.
 
The media portrayed the fall in the dollar as  similar to the July 2008 deflation financial metdown, where many traders pitched every financial and commodity asset on the planet as markets were melting globally.
 
To their credit, investors saw the Baltic Dry Index fall again to its low of 2300. It has fallen for 25 straight days.
 
The insiders who knew the true story that it was a hedge fund blowing up,  started to pile into gold immediately at 8:30 Friday morning as gold reversed its low of 1197 set in Hong Kong.
 
I would like to emphasize that the volume on Thursday at the gold comex was an astounding: 291,000 contracts.
Remember there were no switches.  Most of the volume was in the front month of August.
 
In essence, Friday was a huge victory for the gold bugs and our banking cartel this weekend have major migraine headaches that they will have to deal with.
 
 
I would now like to give you the COT report and then I will follow it with the inventory comex report.
 
 
first gold:
 
A little change from last week, in that the large speculator longs decreased their positions by a rather healthy 3,929 contracts. The large speculators that were short
 
found the rise in gold to steamy for them as they reduced some of their short positions by a huge 10,019 contracts.
 
 
And now to the all important commercial category:
 
the commercials that were long  (intermediate banks and swap funds and traders) increased their longs by a huge 5258 contracts.  The large commercials
 
where all eyes are focused went "all in" with a massive supply of non backed gold to the tune of 6,298.
 
Since both commercials went in opposite directions, the net short position of the bankers still increased their net short position  by  1040 contracts.
 
The small specs decreased their long position by quite a large 6861 contracts.  The small specs that were short reduced their shorts by a smallish 1,810 contracts.
 
 
Thus in summary, much the same as the large commercials are continually supplying the unbacked paper to many of the hedge funds. (Remember this report is basis
 
Tuesday, June 29.2010).  The hedge fund liquidation on Thursday certainly changed the landscape and will be very bullish for gold this week.
 
Let us now proceed to silver COT:
 
 
A little different story than gold:
 
The large speculator silver holders added to their longs to the tune of 789 contracts.
 
Those large  speculators that were short, reduced their short position to the tune of 1,070 contracts.  (last week they added to their shorts).
 
And now to the all important commercial category:
 
The commercials that were long in silver reduced their long positions by a huge 5266 contracts.  The major commercials who have supplying silver all along, namely JPMorgan and HSBC
 
 
surprisingly reduced some of their positions by 2,333 contracts.
 
Thus the commercials reduced both their longs and shortfalls this week. However the longs were reduced by more than the shorts, thus the net short position increased by 2933 contracts.
 
 
 
The small speculators reduced their longs to the tune of 1886 contracts and their shortfall by 2960 contracts. 
 
 
The raid on Thursday solved nothing with respect to silver.
 
 
Now let us go to the comex inventory and delivery notices:
 
 
OK here are todays figures:
 
 
 Silver
Withdrawals from Dealers Inventory 
 
Zero oz
Withdrawals from customer Inventory   295,000
Deposits to the dealer Inventory  N/A
Deposits to the customer Inventory  N/a
No of oz served  672 3,360,000 oz
No of oz to be served  `1843 9,215,000 oz
Gold
Withdrawals from Dealers Inventory  ZERO
Withdrawals from customer Inventory   ZERO
Deposits to the dealer Inventory  
Deposits to the customer Inventory  
No of oz served  3 3 00 oz
No of oz to be served  xxxxxx
 
 
 
First silver:many developments.
 
Again we see zero oz enter the dealer.  However 295000 oz left the customer inventory for destinations unknown.
 
However there was a huge 1.07 million oz inventory adjustment from the customer to the dealer inventory.  This is a sign of a lease
 
from a customer for a fee of probably 25%.  This is a sure sign of problems at the silver delivery department.
 
There were 672 notices served upon the longs which equates to 3.36 million oz of silver.
 
The total number of notices have that have been served upon longs total1,344 contracts or 6.7 million oz.
 
The total number of silver oz that will stand for this delivery month of July is as follows:
 
6.7 million oz (already served) + 9.215 million (to be served) + .2000oz (options exercized in June ) =  16.115 million oz.
 
This number is a lot better than the originally stated 13 million oz. This is probably our first accurate number and will probably be close to the final number standing.
 
Although a little lower than the 23 million oz average of the two previous months, it is quite good and also one can witness
 
the strange series of events occuring daily at the dealer inventory and the customer inventory.
 
In another strange event, the SLV which has not added a single oz in the last 4 months or so, removed a tiny 120,181 oz
 
from its warehouses.  There is truly  smoke and fire with respect to silver.
 
 
Let us now go to gold.
 
First the comex corrected the 2nd option exercised on July 2.2010.  In reality it was not 1047 contracts exercised, it was zero
 
We are constantly getting data that is compromised and that is because many of the silver and gold oz going to the comex to be settled
 
are probably encumbered and the comex are getting totally confused.
 
 
In gold, the month of July is a non delivery month.  There were only 3 contracts exercised for gold on Friday or 300 0z.
 
The total number of contracts served upon equates to  497 or 49700 oz which is 1.6 tonnes of gold, almost the same amt of gold
 
as registered on the first day.
 
As a side note, the GLD also had a small amt of gold leave its shores: 9780 oz  or .3114 tonnes of gold.
 
Generally when you see gold leave these two entities you can assured that a raid is imminent. 
 
 
 
 
 
 
 
 
 
 
end.
 
 
The USA mint released data for the first day of sales on the gold eagles and buffaloes and on the silver eagles.
 
From Ed Steer:
 

.  The U.S. Mint had its first sales report for the month of July yesterday.  They reported that 20,000 one-ounce gold eagles were sold... along with 1,000 24-K gold buffaloes and 387,000 silver eagles.  The Comex-approved depositories showed that their silver inventories increased by 295,677 ounces on Thursday... with most of it coming into HSBC, USA.  The link to the report is here.

The half year sales of silver eagles was just over 18 million oz silver.  Thus we are heading for 36 million plus sales.  This number is important because the usa produces from all of its mines, 36 million oz of silver.
 
The mint must use this first before importing any silver.  If sales continue like we have been witnessing, you can bet that the usa will have to import silver for the first time in over 160 years.
 
The gold sales for the year will approximate roughly 2.2 million of gold.  The usa mines 7.5 million oz annually, so the usa will not have to import any gold to make gold coins.
 
 
 
Now we shall proceed with the major economic stories of Friday.
 
As promised, the big news event is the jobs report.
 
Here is the official report released at 8:30 am
 

08:30 June nonfarm payrolls (125K) vs consensus (122K); May revised to +433K from +431K

* Private nonfarm payrolls +83K vs consensus +111K
*May private nonfarm payrolls revised to +33K from +41K
* Manufacturing payrolls +9K vs consensus +25K
*May manufacturing payrolls revised to +32K from +29K
* Unemployment rate 9.5% vs consensus 9.8%, prior 9.7%
* * * * *

08:31 June average hourly earnings m/m (0.1%)vs. consensus 0.1%; average weekly hours 34.1 vs. consensus 34.2

* May average hourly unrevised at 0.3%
* Average weekly hours unrevised to from 34.2

 
 
end.
 
 
Due to the huge number of census workers let go, the June nonfarm payrolls declined by 125000 workers.
 
The unemployment went from 9.8% to 9.5% due to 657,000 workers removed from the workforce as their unemployment benefit cheques ran out.  They are removed from the employment data.
 
The B/D (Birth/Death) plug added 147000 fictictious jobs
 
 
On top of that, the all important factory jobs in June also declined badly:

Factory Orders Drop More Than Expected 
July 2, 2010

WASHINGTON (Reuters) – New orders for factory products tumbled much more than expected in May, posting their sharpest drop since the depth of the recession and their first decline in nine months, a government report showed on Friday.

Factory orders fell 1.4 percent in the month, the Commerce Department said, the steepest drop since March of last year. Analysts polled by Reuters were expecting a more modest 0.5 percent decline.

An indicator of business spending, non-defense capital goods excluding aircraft, climbed 3.9 percent.

More…

 
 
end.
 
One other factor in the jobs report must be construed as negative:
 
 the average workweek edged down to 34.1 hrs from 34.2 hrs per week.
 
 
Patrick Heller of Coin Update News has concluded that there is massive drain of silver from silver vaults namely from Bank of Nova Scotia and HSBC.
 
His comments mirror my views to a "T"
 
Here is his paper:
 
 
 

On June 16th, the COMEX reported total silver inventories of 119.5 million ounces.  Ten trading days later, on June 30, total inventories had fallen to 113.56 million ounces, a 5.94 million ounce (4.97%) decline.

There have been significant declines on nine of the last ten trading days, but this story has received almost no coverage by the mainstream media.

One reader of my June 25th column where I broke this story commented that this pattern was consistent with activity a year ago.  It is true that inventory levels do fluctuate.  For instance, the COMEX gold inventories are much higher now than they were a year ago.

However, some information I have learned in the past five days further demonstrates that the current run on COMEX silver inventories is not just something that happens occasionally in a stable exchange.

In particular, a high percentage of the withdrawn silver has apparently been from two specific depositories, not just all of the COMEX depositories in general.  Those who have studied the details closely state that the banks losing the bulk of silver have been Scotia Bank and HSBC.

Scotia Bank has been rumored for many months to have very little physical precious metals in its vaults to cover customer deposits.  This can be done, in theory, if the bank owns derivatives to cover their short physical position, but these derivatives are only as good as the other party’s abilities to deliver on demand in event of a possible Scotia default.  There is not really any hard and fast information to prove that the derivatives are worth the paper they are printed on.  In fact, since the total amount of extant silver derivatives exceed many years of silver mining production, let alone the much smaller amount of available above ground inventories, there is a huge reason to be fearful that the paper silver market could be heading for a crash in the near future.

On one day in June, there were 630,000 ounces of silver withdrawn from other COMEX depositories on the same day that 610,000 ounces were deposited at Scotia Bank.  This seems more than coincidental.  It looks suspiciously like an emergency transfer from another depository to help Scotia Bank avoid default on making delivery that day.

If this drain of COMEX silver inventories continues, it could literally be the spark that brings down the entire global financial system,  Any indication that owners of “paper” silver may not be able to convert their paper into the physical product will only increase the demand to do just that.

As I said five days ago, this run won’t be confined to the silver market for long.  Owners of paper gold will see what is happening and almost certainly step up converting their paper into physical metal.  By the way, the COMEX recently reported that physical delivery of maturing gold contracts thus far in 2010 is running 39% higher than for the same period of 2009.  The parties facing the largest potential losses are naked sellers of gold and silver commodity contracts, where there is no physical inventories to fulfill their liabilities.  The entities with such huge positions are major banks.  As gold and silver (and probably platinum, palladium as well as many other metals) prices rise because of the supply squeeze, it could easily happen that many major banks and central banks could go bankrupt.

It scares me to think of the worldwide upheaval that could result from this growing run on COMEX silver inventories.  I am even more terrified that, not only could it happen, it could bring on a severe financial crisis within a matter of weeks.  Those who will be least harmed by these developments are those who get out of paper silver and gold and into physical metals as soon as possible.

Patrick A. Heller owns Liberty Coin Service in Lansing, Michigan and writes "Liberty's Outlook," a monthly newsletter covering rare coins and precious metals. Past issues can be found online at http://www.libertycoinservice.com/ Pat Heller is also the gold market commentator for Numismatic News. Past columns online athttp://numismaster.com/ under “News & Articles". His periodic radio interviews can be heard on WILS 1320 AM in Lansing, www.talkLansing.net, and on www.yourcontrarian.com.

 
 
 
end.
 
 
Many of you know that I have stated for many years that the GLD and SLV are fraudulent with no gold or silver backing.  It was Reg Howe who took the BIS data and proved with the help
 
of Catherine Fitts commentary, that the bank of England has swapped its gold for paper dollars with the GLD folk.  However the Bank of England can and will at some point ask for this gold back
 
and the GLD must swap back its dollar bills.  The problem here is that gold has risen 5 fold and paper money have remained constant in value. Many of you have written me and said that the Bank of England would
 
just "sell" the gold to the GLD when the going gets rough.  That is impossible, as the gold at the Bank of England does not belong to the sovereign country of England.  The gold at the B. O. E is private gold
 
and is on deposit there from wealthy Arab citizens or maybe other sovereign countries.  England's gold has been depleted due to its crazy sales in 1999-2001 and through leasing.
 
Now we learn for the first time that the SLV is also fraudulent. Fellow Canadian Jeff Neilson has done extensive research into this area and he concludes that the SLV is a fraud.
 
In true form, I sent this to Chairman Gensler.of the CFTC.  (Chairwomen Schapiro never responds to you so it is a waste of time) 
 
Here is my remarks to Chairman Gensler and the Neilson paper:
 
 
I  wrote to Mary Schapiro often on this but it seems to fall on deaf ears.  You must read this:

Inventory-Fraud Increases in Silver Market

 

When I first began examining supply/demand data on the silver market several years ago, I was somewhat hesitant to form conclusions, as silver (and gold) have traits which are very different than ordinary commodities – which affects supply/demand analysis. The second factor which made such analysis more difficult was that supply and demand are reported much differently than for ordinary commodities.


Generally, the supply/demand equation for a commodity is very simple: “supply” is the total amount produced, while “demand” represents consumption. When supply exceeds demand, the remainder is added to inventories, while when demand exceeds supply, the deficit must be taken from inventories.


Reporting of supply and demand for the silver market is totally different. While I originally deferred to such reporting as reflecting the different nature of the silver market, it has now become obvious that the convoluted manner in which supply and demand is reported is simply another deliberate attempt at deceit in this market. In fact, when we look at the numbers closely we see a clumsy sham which should not be able to fool a reasonably perceptive 12-year-old.


Regular readers are already familiar with one facet of this fraud, since I have mentioned it frequently in previous commentaries. All of the “silver” (supposedly) held by bullion-ETF's has been added to silver inventories – the major ruse used to hide the fact that silver inventories are over 90% lower than they were 20 years ago. Since I still get questions and remarks from readers who express doubt about my characterization of this as “fraud”, let me explain this scenario slightly differently.


Let me begin with a definition. An “inventory” is the quantity of a particular good which is warehoused and ready to be sold. When an investor decides to purchase an ounce of silver, obviously that ounce is then subtracted from inventories. It should not make any difference howor where that ounce of silver is purchased. However, suppose our hypothetical silver investor has not read my commentaries – and thus does not know that SLV (the largest, so-called silver bullion-ETF) is nothing but a massive JP Morgan sham.


Instead of buying the ounce of silver directly, our foolish investor chooses to purchase a unit of SLV. Essentially, he is designating SLV as his “agent” to buy and store the bullion on his behalf. So, SLV buys the ounce of silver, and it is then subtracted from inventories (like any other purchase). However, immediately after purchase, SLV takes the investor's ounce of silver and dumps it back into the silver inventory – where anyone else in the world can buy that ounce of silver.


Obviously, SLV has turned this into a sham-transaction. If the investor buys the ounce of silver directly, it is permanently removed from inventories (unless/until that investor chooses to sell it). However, with the SLV shell-game, since every ounce of silver “bought” by SLV is immediately added-back into inventories, what this means is that every unit of SLV could (theoretically) simply be the same ounce of silver purchased and re-purchased hundreds of millions of times by SLV unit-holders.


Of course, on a practical basis this isn't the case. Since many SLV unit-holders hold large numbers of “silver” units, the entire SLV scam could not be conducted with just one ounce of silver. However, it clearly only takes a minute fraction of the total number of units of silver soldin order to operate this scam – much less than 1% of the total size of the fund.


The second aspect of SLV fraud is that the supposed “custodian” of all that SLV silver is JP Morgan. JP Morgan has a massive short position which is never audited that is always almost roughly the same size as the (supposed) holdings of SLV (an amazing coincidence!). Thus, even with the supposed “audits” of SLV, JP Morgan has never shown that is has more than half as much silver as it needs to cover both the short position and the custodian agreement.


Since JP Morgan could suffer potentially infinite losses on that short position (which it hasleveraged by somewhere around 100:1), obviously whatever silver JP Morgan holds would be used to cover its own short position, and if there was anything left over, that would go to SLV unit-holders. Clearly, if JP Morgan was only leveraging its silver by 2:1, that alone could mean that SLV is 100% paper. Since we know (from “Loose-Lips” Christian) that these bullion-banks are leveraged by closer to 100:1, the odds of this fund being even partially backed with silver are very slim.


With 2009 supply/demand data for silver finally being released (more than a month later than last year), I can now add that the clumsy sham of SLV is matched by a set of equally dubious numbers which are supposed to represent supply and demand. Recall what I said about supply and demand for a commodity at the beginning of this piece. Production equals “supply”, consumption equals “demand”. Any excess supply is added to inventories, and excess demand is subtracted.


Then there is the silver market. In the fantasy-land of the silver market, we're told that supply equals demand every year. This is obviously not possible with any realistic model of supply and demand, but here is how this sham is constructed. Once (supposed) demand has been calculated, then numbers for mine-supply + government sales + recycled silver are added to this “equation” - with the net balance always being zero.


What we are supposed to believe is that either the miners, the recyclers, or governments areomniscient (or perhaps all three), because one or all of these contributors to supply supplies only enough silver to the market each year (down to the ounce) to precisely offset demand. Call me a “skeptic”, but I doubt that any of these market players is omniscient. Given the time, effort and logistics involved with mining silver or recycling silver, it's impossible for either of those players in the market to instantaneously adjust their output, so that there is never any surplus or deficit in the silver market.


What about government sales, you ask? Clearly, (nearly depleted) government stockpiles can be released into the market very quickly – so this mechanism could ensure that the market remains in balance. Here's where it gets interesting. Government sales have dwindled year-by-year to the point that they now only account for 2% of total supply. Given the tiny contribution to silver supply made by government sales, obviously the quantity is simply too small to make-up for any substantial supply-deficit.

 

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But wait!


We are also told that in the “magical” world of the silver market, demand never changes. As I reported in a previous commentary, total demand for 2007 equaled total demand for 2008 – right down to the nearest tenth of a ton: identical demand for those two years, despite the collapse of the U.S. economy in 2007, and the sudden, mysterious even greater collapse of the global economy in 2008. We had two of the most-volatile years in economic history, and yet we are supposed to believe that demand for silver remained identical.


Now the numbers for 2009 have been released: the year of the “U.S. economic recovery” and the global economic recovery – and another dramatic reversal in the global economy. And what happened to silver demand? It increased from 888.3 tons to 889.0 tons – a difference of 0.7 tons, which translates into an increase of 0.08%. In the magical world of silver, even the 2% of supply contributed by governments is enough to meet any supply-deficit, because demand (supposedly) never changes.


Because there are large numbers of readers out there who simply refuse to believe in “manipulation” or “conspiracies” or simply lying, I'm sure that there are still some people out there who do believe that in the magical world of silver, demand never changes, and supply always perfectly equals demand. So let's move on.


If supply always precisely equals demand every year, this dictates another conclusion: inventories can never change. Remember how markets operate: if demand exceeds supply, that excess is drawn out of inventories, while if supply exceeds demand the excess is added to inventories. If supply precisely equals demand every year, there can never possibly be any change in inventories.


Now have a look at the chart below. Regular readers are already familiar with how silver inventories made a complete U-turn in 2005, and after plummeting straight down for 15 years, they are now moving nearly straight up – supposedly inventories have nearly quadrupled in that span. Inventories have quadrupled, even though supply equaled demand every year.

 

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To be more precise, silver inventories supposedly increased by over 30% last year alone, from roughly 600 million ounces to nearly 800 million ounces. Given that supply supposedly precisely equaled demand last year, the obvious question is where did this phantom, 200 million ounces come from?

 

Part of the answer to that question I have answered previously: through the fraud of adding ETF-units to silver inventories. However, as the graph below shows, during 2009 holdings of the seven largest silver bullion-ETF's increased by roughly 110 million ounces – from 350 million ounces to 460 million. But that still leaves 90 million ounces which are totally unaccounted.

 

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It wasn't enough for these clumsy fraudsters to merely add the units of ETF's to inventories (despite the fact that this silver is not on the market), they also padded inventories by an additional 90 million ounces – with absolutely no “silver” (not even ETF-paper) to account for it.


 

For argument's sake, let's ignore one of the lies regarding the silver market: that supply equals demand every year. We know the reason for that lie: to created the illusion that the silver market is “in balance”. So let's just completely throw out demand numbers – since we know it was absolutely impossible for demand to remain unchanged for 2007, 2008, and 2009. Let's only look at supply.


There are three components of supply: mine-production, recycling/scrap, and government sales. Total scrap/recycling is falling every year. Not only is government supply also falling every year, but the numbers are being retroactively revised lower. After 2008, government sales were reported as amounting to 30.9 million ounces. However, by the end of 2009, the amount of government silver sold in 2008 had decreased to 27.6 million ounces. Yet another 3.3 million ounces of “silver” has simply evaporated!


We are told that silver mine-supply is supposedly rising every year (by a meager 25 million ounces in 2009), despite the fact that 2/3 of mine-supply is a “byproduct” of base metals mining, and despite the fact that the Crash of '08 decimated base metals mining around the world. Remarkably, in the magical world of silver, silver-production was supposedly totally unaffected. However, what must be clearly noted is that this (supposed) increase in mine-supply is totally offset (down to the ounce) by the decrease in recycling and government sales– yet another remarkable “coincidence” in the silver market. Thus, it is totally impossible for “increased mine supply” to account for the massive, phantom increases in reported silver inventories.


By the end of 2004, global silver inventories had plunged to their lowest level in many decades (and likely several centuries). We know that we can rely upon the data to that point, since the people manipulating the silver market would not want to overstate the decimation of inventories. It is equally clear that all the supply, demand, and inventory numbers since that date have been heavily contrived, to the point of being completely meaningless. Keep in mind that the two quasi-official private “consultancies” who create these doctored-numbers (GFMS and The CPM Group) are intimate buddies with the bullion-banks, indeed Jeffrey Christian(the head of The CPM Group) is a Goldman Sachs “alumnus”.


While it is always an uncomfortable feeling for an investor to “fly blind” in any particular market, let's review what we can say with certainty. We know that by 2005 silver inventories had been reduced by 90% in just 15 years. We know that since that time the banksters and their allies have been so desperate to hide the truth that they have perpetrated numerous frauds, including totally falsifying supply, demand and inventory data.


What can we deduce from this? Obviously, if silver inventories really were increasing then the banksters would want to make the market as “transparent” as possible – to show people all this new silver. Thus, we know that silver inventories are not increasing. However, if silver inventories were staying flat, or even falling at a more gradual rate, then surely it would not be necessary to falsify all the numbers in this market, and on a huge scale – with hundreds of millions of ounces of “silver” being conjured out of thin-air every year (not much different from how the bankers conjure our “money”)?

 

Therefore, even the massive fraud being perpetrated in reporting the activities in the silver market should not deter investors from capitalizing on (literally) a once-in-a-lifetime investment opportunity. Think about how close the silver market must be to its inevitable default, if the high-and-mighty bankers (who continually tell us how brilliant they are) are incapable of perpetrating a scam more believable than this incredibly clumsy farce.

 

The silver you can hold in your hand is real. The shares of silver mining companies are real. The (limited) number of legitimate bullion-ETF's who directly hold their own silver are real. But in the “magical” world of silver, everything else is merely a bankster-illusion

 

 

end.

 

the paper can be found at:

 

   http://www.bullionbullscanada.com/index.php?option=com_content&view=article&id=13244:inventory-fraud-increases-in-silver-market&catid=

 

author Jeff Neilson.

 

 

end.

 

I would now like to wish all our American friends, a very happy July  4th holiday weekend. All usa markets will be closed on Monday so I will not give a commentary until Tuesday.

 

For those of you wanting to know what happened to our new bank failures, I would like to state that the FDIC due to the holiday weekend,  decided to give

 

the banking mortuary a rest.  They will resume their duties and let new deserving entrants into this hallowed shrine, next week.

 

all the best

harvey.

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