china foxDid China lend the West 300 million oz of silver in order to drain every last ounce of gold from NY and London!?!
In this MUST READ missive, Bill Holter explains why The Chinese silver fox is in the West’s golden hen house!


Submitted by Bill Holter, JSMineset

I recently had a long and very interesting conversation with John Embry of Sprott Resources.  It is always good to speak with him as I consider him one of the five sharpest economic/precious metals minds I know of and certainly value his opinion.  John’s name came up a couple of days ago when someone asked “where is all this silver coming from” to meet the outsized physical demand?  I said “this is the number one question John Embry and Eric Sprott have been asking for about a year now”.

Our conversation was quite broad but let’s zero in on the “silver supply” aspect because I believe it is more important than anything else in our world today.  That is a very big statement but stay with me as you will see toward the end why I believe this.  John asked where IS all the silver coming from?   
Let me first say what follows was my best educated “guess” and I know of no one who has the firm and hard answer;  I told him during the 80’s and early 90’s the amount of “scrap” could be a very logical explanation.  Then during the 90’s and early 2000’s the silver deficit could be explained by the huge amount of silver recovered from the “Manhattan Project” estimated to be nearly 1 billion ounces. 
I also believe the Chinese lent somewhere around 300 million ounces of silver to the U.S. back in 2003 for a 10 year term which expired in that “magical year” 2013.  If this was true, it would explain the massive paper takedown in May of 2013 because the lease was “up”. 
I believe silver had to be taken down as the price was getting away and threatening $50.  A collapsing price would allow the U.S. to say “don’t worry, you will get your silver back as we have the price under control”. 
Here is where I believe the silver to meet delivery has come from, CHINA!  But why?  First and foremost, China was a “silver nation” and had used silver as money for longer and in greater quantity than any other nation.  In other words, the silver has come from the only place it could have because China had it. 
OK, but even if China was the only large stockpile, why would they “throw good money after bad” if they were already defaulted on?  I believe they wanted the crown jewel of the West, Gold! 
They had silver but the West had the gold accumulated during the 1900’s and especially after WWII.  Yes the U.S. dishoarded in the 50’s and 60’s but we did still have 8,000 plus tons left and are (were?) custodian for other Western gold holdings. 
It is my contention a deal was made where silver has been supplied by China to prevent the Achilles heel (silver) from defaulting and blowing up everything. 
In other words, keeping the game going for longer would allow China to accumulate gold and drain what is left, had the game blown up in 2013, China would not have had the ability to accumulate what they have since then.  Call this “dropping pennies to pick up dollars”.
Getting back to what I said at the beginning where I said “silver is more important than anything else in the world”, please follow this through. 
Silver is a very small market, some would say unimportant except for its various technological, medical, etc. uses.  However, in no way could silver’s price get away to the upside without dragging gold with it. 
Were the price of gold to get away to the upside, demand would explode (particularly in China where they are known as speculators and “chasers”). 
Were this to happen, the existing supply would be chewed up and the uncomfortable request “please deliver my gold” would become prevalent.  At this point the game would be over as the scam of fractional reserve gold (and silver …and everything else) would be public knowledge. 
You see, “trust” is at the heart of it all.  Our entire financial system is based on trust.  Trust in government, trust in fiat currency, trust in cross trading partners, trust in your bank or your broker… it is ALL TRUST! 
What would happen to this trust if it turned out that a Ponzi scheme turned up somewhere?  Not just any Ponzi scheme like Madoff but one where the exchange itself was running a fractional reserve fraud and could not deliver?  Trust …IN EVERYTHING would fail! 
As usual I am sure I will be trolled for the above and called an idiot but I must ask you this- If global gold supply has not met demand for 20 years or more, where can the metal have come from to meet the deficit? 
The same goes for silver and even more so because the supply/demand deficit has been even more severe and longer in duration?  The answer is most obvious, the metal had to come from the only place available, above ground supplies.  For gold, that can only mean “official” stockpiles (vaults).  For silver, I believe the only large above ground stockpile left was legacy silver in China.
Please do not point at the price and say “see, there are no shortages” as we have seen shortages, rationing and backwardation in both silver and gold over the last two years.  If you gave me 100 billion counterfeit shares of IBM I could sell whenever I wanted, I am pretty sure I could make IBM look like a falling down drunk whenever I wanted and the price would certainly be depressed! 
Herein lies the fault, gold nor silver can be “printed” and when all is said and done investors holding receipts for same will be in for a very big and very bad surprise!
To finish, if I am correct about the silver for delivery coming from the most likely of all places, China, then I believe this will be looked back on by historians as “the Chinese silver fox in the West’s golden hen house! 
Am I correct?  I don’t know but we will soon see as the global paper financial edifice is quaking on its own.  John Embry told me, “of all the many theories I have heard so far, yours makes the most sense and is the most logical”. 
I mentioned this topic to Jim yesterday and he told me when we first talked about it six months back he was skeptical but the more he has thought about it …the silver can ONLY be coming from where it exists…Chinese legacy silver! 
I think China has done some very intelligent maneuvering particularly since the 2008 crisis.  They figured out our fractional reserve scheme was toast but they played along anyway.  They even levered up as much or more than we did since then. 
However, with this increase in credit they have built infrastructure in the form of roads, bridges, cities, plant and equipment …all for and with future uses.  The West on the other hand has thrown a “standard of living party” and neglected infrastructure to the point of dilapidation. 
Yes China’s financial system will implode with all the rest, they may even lead it!  But, they will be left with new infrastructure and “money” (our gold) to get started again.  President Xi has even said this to his people and to the world.  He said the short term would be difficult but the long term beneficial. 
I think he is telling the truth!
  1. With all of their metals escapades, they should be called Shine-a. It certainly seems to this fool that since we have shipped all of our manufacturing and  gold towards the east for years, that the east has been earmarked for some time now to become the epicenter of global economic dominance. As I have said before, the powers could care less which side of the planet they make and store their wealth and they see the U.S. as an expendable, lost cause.

    • Since 1913 the FED has succeeded at decimating Americans funancial base and transfering our jobs and industries off shore.

      PMs must be returned back into the hands of the population. The PEOPLE of every any country create wealth, PMs are the only true store of value. The FEDs fiat paper has stripped US of our fortunes, our jobs and soon our homes.


      Jefferson was correct, a Central Bank DOES result in impoverishing our future generations.

    • Indeed so.  In fact, quite a bit of it went into most of our safes.  But with India buying up large tonnages, it’s not hard to see that the world-wide demand is high and thanks mainly to the very low prices, miners are not producing as much as they have in the past.  At some point falling supply and rising demand WILL meet and when they do a lot of things will happen that haven’t happened before.

      If, as Holter suggests, it is the Chinese who are supplying 300M ozs. to the US for our needs and are swapping it for gold, that’s about 4-5 months of world silver production.  Just how long can that last?  What happens when this supply is exhausted?  So many questions, so few answers.


  2. Bill: I am so glad that somebody is finally looking at the historical love affair between China and Silver. Question: as the global reset now takes hold and China leads the world back to a metal standard, will China find it advantageous to control the vast untapped silver resources of Argentina, Bolivia, Mexico and the American Southwest?


    Your points here about letting the Silver price drop while she accumulated Gold makes sense. Do you think that China has now filled her golden cup? Is she ready to now lead the West down to Ground Zero of the western financial system? And then the next step is to take hold of the global reins and begin rebuilding global trade on a metal-backed system of some kind?


    In the book “The Babylonian Woe,” author David Astle wrote, long ago, that the banksters of the Middle East knew full well how to profit on the arbitrage between Gold and Silver spot prices as they traded West versus East, for centuries. China used Silver as her monetary basis rather than Gold for this blatantly obvious reason: Silver costs less to mine than Gold does. It would not surprise me that this millenia-old cabal is yet again working to turn the tidal flow of gold and silver in the opposite direction. They’ve been playing this game for 4000 years.



  3. The Chinese Silver Fox in the West Golden Hen House, was an invite by the Golden Hen who at that time trying to ‘out Fox’ the Fox, so the Chinese Fox say ok ,now our 6 billion people need work,. so you dump Mexico and other South American countries and build your Factories in China  ,then we will give you legacy Silver from the Silk Road centuries old…The Golden Hens chuckled and said Mo Money !cool Deal.  The Chinese Silver Fox saw the Golden Eggs and was desirous, but was smart enough  to know the Roosters and the Farmer was around ,so instead trying to steal the Golden Eggs persuaded the Hens to sell Au Gold  at below ground prices, and they would sell Ag Silver at below ground prices .The Chinese Fox had 5 year plan ending 2016.



  4. Chinese President Xi Jinping will start his five day visit to the Middle East starting Tuesday. During his visit, the president is set to arrive in Saudi Arabia, Egypt and Iran.

    © Flickr/ Trey Ratcliff
    Courting Arab World? China Building ‘Silk Road’ to the Middle East

    The three countries are important partners and active supporters of the Chinese initiative to build the economic zone of the Silk Road.


    Xi Jinping’s trip will highlight a new incentive for bilateral transport and communications interconnectivity and will indicate a new direction for bilateral cooperation, Chinese People’s Daily reported.

    The planned visit to Saudi Arabia and Iran comes amid diplomatic tensions between the two countries following the execution of the prominent Shi’a cleric Nimr Al-Nimr.
    China has always supported the peace process in the Middle East as it stands in favor of stability in the region.
    The country has stood up for resolution of complex issues through peaceful means, including political dialogue and consultations.
    China cooperates with the Arab countries in areas of energy, construction of infrastructure, simplification of conditions for trade and investment and new energy resources.
    China published its first official Arab policy paper, claiming to “support Arab countries’ struggle to uphold sovereignty and territorial integrity, pursue and safeguard national interests, and combat external interference and aggression,” Daily News Egypt .

  5. ​Relations with the Arab world, according to Beijing, should be based on China’s Silk Road initiative, also known as One Belt, One Road, using a “1+2+3” formula. The $40-billion development strategy, which was unveiled in 2013, is meant to promote economic integration, particularly in Eurasia, and consists of two main components – the land-based “Silk Road Economic Belt” and “Maritime Silk Road.” 

    The “1+2+3” formula views energy as the core element of bilateral cooperation. Developing Infrastructure, as well as promoting trade and investment is seen as the “two wings” of cooperation, while “3” refers to breakthrough areas, including nuclear energy and renewables, as well as space.
    When it comes to energy relations between China and the Arab world, “the full truth is even more striking,” The Diplomat pointed out. “Saudi Arabia alone is China’s largest supplier of oil, and when you factor in Iraq, Kuwait, Oman, and the United Arab Emirates, the Arab world accounts for over 40 percent of China’s total oil imports.”
    The document also calls for greater security cooperation between China and the Arab world – an area, which has been largely absent in bilateral relations. In particular, Beijing indicated its willingness to take part in counterterrorism operations in the region.
    “China is ready to strengthen anti-terrorism exchanges and cooperation with Arab countries to establish a long-term security cooperation mechanism, strengthen policy dialogue and intelligence information exchange, and carry out technical cooperation and personnel training to jointly address the threat of international and regional terrorism,” the policy paper detailed.
    The Diplomat maintains that China’s contribution to counterterrorism efforts in the Middle East will be multilayered. It is likely to focus primarily on providing financial assistance and offering “capacity building support” to local armed forces than directly participating in military campaigns to tackle terrorism in the region.

  6. I like my story better. That all the big govs are buying all the gold and silver at cheap low gov made prices close to confiscation prices. Hoarding it till the big meltdown an new one world dollar. And all this new QE monies that never get lent out to there countries people all in the mega banks hands.

  7. “You see, “trust” is at the heart of it all”

    What a load of cobblers.   Governments never trust each other because they all know they are all a bunch of lying cheats.   Can you imagine any of the banks ‘trusting’ each other.

    “As usual I am sure I will be trolled for the above and called an idiot “


    • Trust IS at the heart of it but it is not between banks and governments.  It is between both of those and the citizens.  We accept fiat money as if it has real value when it does not.  All it has is the value that we are told that it has.  We are told this by those who create it out of thin air with virtually no cost or effort on their part.  The US$ and all other fiat currencies will die when people stop trusting that it has real value.  This has been demonstrated in many countries and is still true today.

  8. This is just an extension of the failed Harvey Organ theory. I remember Harvey said the Chinese must get their silver back by the end of 2014 or they would exhaust their supplies – he presented graphs as evidence – we all know how that worked out! Bill is speculating here and I will add my own speculation – the price of silver dropped because of declining demand and a surplus of scrap coming to the market. Scrap is now declining and investment demand is picking up so this should be reflected in the price. I will consign this latest post by Bill to the same file as $100,000 gold/nuclear bomb in China/ derivatives have already exploded – all sensationalist speculation and complete rubbish.

    • ” I will consign this latest post by Bill to the same file as $100,000 gold/nuclear bomb in China/ derivatives have already exploded – all sensationalist speculation and complete rubbish.”


    • @gbs @agxiik

      i wasn’t sure whether that economist cover was a fake, or they have removed it from their website (they show only 41 covers for that year).

      after a little checking i found the date on that issue to be (x)-15 january 1998. the jan 17 cover is missing from their website. it’s not easy to find that image on the net, but found one which appears to be a scan of a library copy. in all i can only find about 5 occurrences.

      i thus believe it to be genuine, which leaves no doubt in my mind that they are actively trying to suppress that cover from public view.

    • SN…The cover is genuine alright. It’s not hard all that difficult to find. Google search for it under ‘Images’ tab. I find the 2018 date on the coin very interesting.

    • @ugludog

      what i meant by “not easy to find” is that you have to know what you are looking for in order to find it. they make it near impossible to just stumble upon it by chance.

      google images:

      “the economist 1998 world currency” gives only 4 hits, the rest irrelevant.

      “the economist world currency” gives lotsa hits.

      “world currency” gives no hits until very far down. it does show just 2 images of the chinese gold coin billboard – this again is evidence to me of how utterly manipulated google search results are.

    • SN…Agreed, one is not likely to just stumble upon that cover of the Economist. But, if you know what you are looking for it’s not hard to find is all I’m saying.

  9. @GBS   True   All governments are self serving and all banks are self serving. Both are populated by morons (intellectualoid poseurs), psychopaths (the killers) sociopaths (the politicians and salesmen) drones (paid apparachiks that do the heavy lifting)  
    The only time a government is surprised at the actions of another government is when one goes completely off the handle and declares war of one sort or the other. That should not come as a surprise because every government has the potential for declaring war.
     Otherwise, all governments generally tend to their own business, stealing from the people and enslaving them whenever possible.
    Bankers finance all of this, enabling governments to pursue their worst behaviors.

    The only question I have is like the chicken and the egg.

    Which came first?

    Bankers or governments.

    • @AGXIIK


      “The only question I have is like the chicken and the egg.  Which came first?  Bankers or governments.”

      IMO, governments came first and then banksters came afterwards.  Sort of like dogs coming first and then fleas.  😉


  10. @silver-nurse  it is kind of funny that when the overlords get called out, their snail tracks and scat laid out, evident for all to see and for all to understand their plans. they think that scrubbing something remove it.  IMO these people operated in the 19th century, forgettingthat with this 21th century technology, nothing is every scrubbled including youtube, facebook and other social media, most of which are heavily influenced by the oligarchs.  Silencing the voice of the people at the behest of the elites is near impossible.  Removed the footprints of this people is just a futile.   We snark and snap at placed like Silver Doctors but the fact that the trolls manifest themselves here in squads of psyop soldiers is proof that our voices are read, heard and are having an effect on these ghouls

    • @AGXIIK


      “Silencing the voice of the people at the behest of the elites is near impossible.”

      Which is precisely why the US Gov now has an “Internet Kill Switch”… in case of emergency.  In their terms, TRUTH is the usual “emergency” and it MUST be controlled and spun into something that they can use to preserve their power.


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