Jim Sinclair: Expect 100% Cash Margins in Gold & Silver As the Gold Banks Attempt to Execute the COMEX

Jim SinclairIn his latest alert to subscribers, legendary gold trader Jim Sinclair asks rhetorically where all of JPM’s gold has gone, and whether the gold banks are in the process of executing the COMEX.  Sinclair states that COMEX is experiencing a death rattle, and that they will soon per-emptively raise margins in gold and silver to 100% cash to prevent a full default.

Where has all the gold gone?
Is this where all the gold in Morgan’s vault went?
Are the Gold Banks executing the Comex exchange?
This is the Death Rattle of the Comex exchange.
Gold and Silver exchanges are going to be forced to become cash spot contract physical exchanges.
The Comex will not wait until they have only one ounce left in the warehouse. They will once again change the rules of delivery and go to 100 percent margin.

Sinclair’s full alert is below:

 

Lowered Prices

 

From Jim Sinclair:

Gold and Silver exchanges are going to be forced to become cash spot contract physical exchanges. Is this a market mistake, or a massive physical gold project of those who now own all the gold?

 

It is a project in my opinion that the knuckle draggers at the Comex are yet to figure out. If you are a successful knuckle dragger at the Comex you become a board member but remain a knuckle dragger intellectually.

 

The Comex will not wait until they have only one ounce left in the warehouse. They will once again change the rules of delivery and go to 100 percent margin. This is gold taking advantage of the premium of physical over Comex spot contract, their cash gold representation. I do not see this as a market accident but a well crafted plan to kill paper no gold contracts and emancipate physical to rise to prices once said here but never again.

 

Ask yourself these following questions again:

Where has all the gold gone?
Is this where all the gold in Morgan’s vault went?
Are the Gold Banks executing the Comex exchange?

 

Remember, sharks love to eat sharks until there is only one fast shark left.

 

This is the Death Rattle of the Comex exchange. It was originally falsely reported as scrap gold for refining. It is now more properly reported as follows:

 

“They added that it was likely that a client who had invested in the gold futures market had decided to take physical delivery of its gold bars in the US when the contract expired. The gold is most probably just passing through and bound for markets such as China or India. While there are refineries in North America, gold can be sent to different refineries around the world depending on prices or existing relationships.

 

One reason to refine the gold might be because there is a premium for a smaller bar sold in the retail industry in India and China.”

 

South Africa to refine $1.1 billion worth Gold for US

 

Tuesday, May 21st 05:42 PM IST

 

JOHANNESBURG(BullionStreet): South Africa’s largest gold refinery, Rand Refinery, also one of the biggest in the world, said it will refine huge quantities of gold from the US.

 

According to Rand Refinery’s chief executive, Howard Craig, the shipment of unusually large quantities of gold bound for the refinery (worth $1.1-billion) is just business as usual for the company.

 

He said it is nothing out of the ordinary as Rand Refinery does refining of gold and silver for Africa as well as the conversion of gold from various other countries, such as the US.

 

The company imports over 200 tonnes of gold per annum and its activities are not necessarily event or country specific,” although it does not source any metal deposits from conflict-affected areas, he added.

 

Craig said the company could not acknowledge or attest to any statistics or facts that had not been provided by the company itself.

 

The commodity movement was detected in recent United States trade data that showed South Africa’s $402-million trade surplus with the US in January had turned into a $689-million deficit by March.

 

More…

 

 

2013 Silver Maples As Low As $2.79 Over Spot At SDBullion!

Silver Maple

 

Comments

  1. As a PM holder for a couple years, it feels like walking into a bar with a “Free beer tomorrow” sign. We’re perpetually  just a day or 2 away from our big day..

    • I have long tired of being told by the Guru’s sitting on the side of my bed, telling me how good it’s going to be!

  2. Look at the S & P and Dow if the Fed does not increase QE likely to see sales where the S & P and Dow begin to fall and precious metals grow … it looks like the growth of QE begins to be filled …

  3. Where has all the gold gone?
     
    lol
    Thinking Bix should run with that line…and to the tune of, “Where Have all the Flowers Gone”Come up with a fun lil diddie for his YT channel…..

  4. Here Sinclair is giving us the clear signal to look for to determine the true level of COMEX gold.  When margin rates start rising we’ll know they are approaching empty.

  5. I can see $60-$90 Silver by the end of the year.

  6. So if the Comex hikes margin requirements to 100% cash, there will be massive selling in the paper market, and maybe that would make the bottom.
    Who is going to able to come up with the cash to maintain the contract?  Most will sell.
    I would love to see this happen, it will clean out all the speculators, and will we have a physical market dictating price.

    • Yes, takes the leverage right out of it, but be careful what you wish for.  De-leverage the market and the speculators leave, then liquidity drops, then no more contract, then mines make their long term contracts with the biggest buyers (governments/banks) and the price mechanism in that market is far from transparent.  I’ve still not seen anyone here willing to post a link that shows good cash prices for bulk precious metal (industrial grade or refined).  

  7. That’s what I pay when I buy metal.  100%.   If it means an end to the paper game so be it.  

  8. 100% won’t be a problem to those intending to take delivery. Supply/demand might come in play for pricing, wow.

  9. Just opted for a early cash payout in full from a pension that I wasn’t even aware I had (from an employer I hadn’t worked for in ages). Somehow, the piece of mail alerting me to it miraculously made it to me, after many years in different residences in different parts of the country. A respectable chunk of change, I might add. So, I went all the way and also closed out a profit-sharing account with another former employer (though not quite as lucrative). Once the checks arrive, a good chunk will go towards the metals, both white and yellow, which I will add to my already steadily-growing stack. Will also pick up some much-needed pepping supplies, a little more ammo (while the law in my state still allows), and will keep a smaller chunk handy and accessible in fiat. Something is telling me not to look a gift horse in the mouth and jump on an opportunity that I will likely never see again, both in terms of the retirement accounts and blue light special prices for metals that may one day be unavailable.

  10. Gee, I buy all my physical on 10% margin, doesn’t everyone else?   LOL

  11. Just Don’t Be Dreaming Of Silver. Keep Stacking It.
     
    To dream that you lose something silver, suggests that people do not respect you anymore.

    To dream that you see silver jewelry or objects, suggests that riches and honors are ahead and you deserve it.

    1) To dream of silver coins, indicates that you have a difficult responsibility.

    2) Dreaming that you donated something silver, signifies that you will have a proposal for marriage or intrigue.

    3) Dreaming that you see a virgin silver object, suggests that you are bold and self-interested.

    4) To dream that you see lots of silver, suggests that you may have worries and anxieties.

    5) To dream that you give away or buy silver, indicates that you will have property and tangible benefits.
    Now I know your problem @Ranger You Dream To Much.
     
     

    • @marchat45…
      thats crazy, i just dreamed last night, i think i was in an auction and i bought silver…but i also had two girlfriends with me! Haha…what does that mean

    • Auction tomorrow with tons of rolls of silver dimes and quarters… a lot of me wants to be there, but I’ll be trout fishing and mushroom hunting with the family… though I will be e-mailing the auctioneer to try to discover what the selling price was!

  12. Bad times are coming, matter of when.

  13. Scene at the local coin/bullion store today: I was completing my final fiat money conversion to a few silver rounds, when a normal looking guy (about 45-50 looking) dressed in shirt and jeans, who appear clean looking, like anyone you see all around you, enters the store and asks th dealer – Do you buy coins? Yes, we do. He spreads a handkerchief small stack of small coins (I think they are 90% silver) and the dealer selects which ones he will buy and gives him a price of $30.00 (thirty dollars).
     
    I walked out of the store feeling bad. I think he will take the deal. I feel bad because someone who looks like he can be anyone of us, is now at a point where he has to sell his small coin collection (worth US$30), must be financially hurting. I feel and know the real economy is bad, but this really slammed it home to me. 

    • The guy also saw something in the store and asks “Do you also buy maps?”, which was answered with YES. The guy I got some maps at home, and I will bring them to sell … to which the dealer stated that “Bring them over so we can see what we can do”. 

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