Our friend Ned Naylor-Leyland has released a MUST READ letter regarding the implications of the LBMA’s decision to go dark on their reporting of the Silver Forward Lease Rate (SIFO) on Nov 2nd 2012.   Naylor-Leyland states the action by the LBMA smells fishy, and appears to be a smoke signal of increasing problems in the physical silver market.

Naylor-Leyland states: Bearing in mind that while this was going on there also has been near-frantic churning taking place between the COMEX and the SLV and reports of genuine trouble in size orders of silver being delivered by LBMA members, it seems to me that there are presently a lot of coincidences layering themselves all over the silver market.  God’s work perhaps…either way, these backwardation smoke signals are black as can be, and indicate that a move to much higher ground is imminent.

Naylor-Leyland’s Full note below:

 

From Cheviot Asset Management:

  1. The ‘cadence’ of the ‘drum beat’ is quickening. So many indications of dwindling silver and gold circulation are springing up I’m hardly able to keep pace with reading the number of stories and watching the videos lately.

    When I get to the bottom I go back to the top of the slide
    Where I stop and I turn and I go for a ride
    Till I get to the bottom and I see you again. … yeah, yeah, yeah

    Helter skelter, helter skelter Helter skelter.

  2. Good article. They would not be doing this if there wasn’t trouble. They obviously are trying to obfuscate the silver market. It’s just another act of desperation. It serves notice that things are about to get crazy and they can’t stop it.

    • You’re right! The cartel’s silver manipulation is becoming more useless as inflation moves and as the physical silver’s supply is getting reduced due to the growing demands. The cartel is less powerful than they were one year ago or even 30 years ago.

  3. Nobody can stop it Chief, they just don’t have the Silver left. I bet all their employees as running around buying it for themselves as they know what’s coming down the road. The Doom and Gloom is coming quicker now. Keep Stacking while you can.

    • “The Doom and Gloom is coming quicker now.”

      Indeed it is, Charlie.  This has been clear for about a year now, given that the paper PM smack-downs have had to be larger and larger to cause less and less price suppression.  Very strong hands are in the PM markets now, so any time the price is smacked down via paper dumping, buyers with big money rush in to put upward pressure on PM prices.  

      In the past, they would dump a million ozs. of gold paper or 10 million ounces of silver paper and the PM prices would literally fall off the charts, sometimes for weeks at a time.  These days, they dump 50 million ozs. of gold paper and 500 million ozs. of silver paper, the market staggers for a couple of days, and prices bounce right back to where they were before the dump.  This diminishing returns aspect of paper dumping is a strong sign of a failing manipulation process.  Time grows short, guys and gals, so stack all you can.
       

    • Yes, we should all stack whenever we have the opportunity because the cartel is suppressing gold and silver’s real values but they won’t be able to keep them like that forever. We should thank the cartel for keeping precious metals at a very cheap level compare to their historical values.

  4. I remember this red alert from Steve Quayle which was posted on June 13th:
    His contact also states that Morgan Stanley is the next Lehman Brothers due to its Euro and Facebook exposure, and investors have until December at the latest to close all equity accounts, exit the markets, and acquire gold and silver.
     
    December commences Saturday.

    • Grab a brain cell Raider-
      What’s direspectful is hoarding all that wealth when selling off a few pieces of art would literally feed the starving!
      IDIOT!

    • Historically and especially during the Middle Age, the churches, the clergies and the Pope are all using the Bible the bad way and they are spreading propaganda to convince people that they are right. They are making their own rules when the rules weren’t even mentioned in the Bible.

  5. Smoke signals, LBMA is going up in flames after being ransacked of all the precious metals. The amount found was 1/8 of what was claimed to be on hand.  Top executives are being hunted by owners of the silver that is missing.

  6. I have never really understood why selling into the market drops the price of the commodity being sold or why buying the commodity would advance the price. For every seller there is a buyer and conversely for every buyer a seller. Why wouldn’t the two just negate each other and the market flatline? It should take some other reason or force to move a market. I understand supply and demand theory and I’m sure that has something to do with it.

    • @RocketsRedGlare The reason why selling a commodity always influence its price in dollars is because of its supply and demand.

      For example, I have two ounces of silver in the whole market and there’s 70$ in the monetary circulation. To determine the value of my silver per ounce, I would have to divide 70$ by two ounces of silver which will be 35$ per ounce.
      If I mine one more ounce of silver and add it to the market, there would be three ounces of silver in total. To find out silver’s price per ounce, I would have to divide 70$ by three ounces of silver which will be about 23.33$ per ounce.
      If I consume or buy two ounces of silver from the market, there would one ounce of silver in total. To find out silver’s price per ounce, I would have to divide 70$ by one ounce of silver which will be about 70$ per ounce.

      That’s similar to how today’s markets work.

  7. the pope was used in the article … ned made mention of the pope and the selection process and how different symbolism is used in the process … the docs picture is entirely in keeping with the article … to take offence at the use of the picture is somewhat surprising as there is no negative connotation in the article or the picture… i would have expected this from some radical islamic fundamentalist or a born again christian zealot …. but a catholic after all the horrendous crimes that the church has closed its eyes too a little bit rich to be so sensitive to imagined insults …. try recognising accepting and dealing openly with your own priests and their sins before inventing ones to have grievances about …

  8. im of the opinion that the removal of information is in the category of i smell a rat … but when you ask for alternative information or an ability to access that information and that information will only be issued at the discretion of the LME following the forwarding of your email by the LBMA…. smelling a rat really isnt necessary there are 100′s of them everywhere …. public information now released at the discretion of another agency is a way of hiding information …. what are they hiding …. and whatever they are hiding has just got infinitely worse … or why bother hiding it …

  9. If the problems are increasing in the physical silver market, then maybe that’s the reason why silver is pretty high right now and that the cartel is having a lot of hard times to crush silver’s price below 30$ per ounce.

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