Silver prices peaked in April 2011 and dropped about 60% over the next 25 months. Sentiment by almost any measure is currently terrible. Few are interested in silver; most have lost money (on paper) if they bought in the last two and one half years, and the emotional pain seems considerable. It reminds me of the years after the NASDAQ crash in 2000.
So will silver drop under $15 or rally back above $50?

When we stated yesterday that the police state was in for a LONG evening last night as massive riots in Istanbul continued far into the evening, we had no idea that Turkish militarized police forces were about to engage in an act that would immediately polarize the entire nation against the Turkish government with the potential to unite the people into a civil war.
The militarized police did just that however as the video footage below shows, as Turkish cops unleashed not one, but 2 water cannons on a wheelchair protestor simply waving a flag
Footage of the cops turning their water cannon on the wheelchair protestor and today’s live feed are below:

EmptyVaultJP Morgan’s Eligible (Customer) gold inventory fell a whopping 61% today.  That’s 6.7 metric tonnes of gold taken off of JP Morgan’s inventory.  As you can see in the chart below, there are only 136,380 oz of gold left in Morgan’s Customer inventory.   Basically, JP Morgan has a little more than 4 metric tonnes of gold left in its Eligible or Customer inventory.
Furthermore, that 217,844 oz withdraw from JP Morgan’s vault accounted for 28% of its total inventory….meaning JP Morgan only has approximately 555,000 oz left in its total inventory.

 

Source: Chip Somodevilla/Getty Images

Source: Chip Somodevilla/Getty Images

Employees have been front-running client orders and rigging WM/Reuters rates by pushing through trades before and during the 60-second windows when the benchmarks are set, said five current and former traders, who requested anonymity because the practice is controversial.  Dealers colluded with counterparts to boost chances of moving the rates, said two of the people, who worked in the industry for a total of more than 20 years. The behavior occurred daily in the spot foreign-exchange market and has been going on for at least a decade, affecting the value of funds and derivatives and all investments.  The Financial Conduct Authority, Britain’s markets supervisor, is considering opening a probe into potential manipulation of the rates, according to a person briefed on the matter. Informed observers have long warned that the global $4.7-trillion-a-day foreign exchange market, the biggest in the financial system has all the hallmarks of a casino. The inherent conflict banks face between executing client orders and profiting from their own trades is exacerbated because most currency trading takes place away from exchanges.

“The NSA has built an infrastructure that allows it to intercept almost everything.”
“With this capability, the vast majority of human communications are automatically ingested without targeting. If I wanted to see your e-mails or your wife’s phone, all I have to do is use intercepts. I can get your e-mails, passwords, phone records, credit cards.”
Any analyst at any time can target anyone. Any selector, anywhere… I, sitting at my desk, certainly had the authorities to wiretap anyone, from you or your accountant, to a federal judge, to even the President…
To do that, the NSA specifically targets the communications of everyone.

“The great fear that I have regarding the outcome for America of these disclosures is that nothing will change. [People] won’t be willing to take the risks necessary to stand up and fight to change things… And in the months ahead, the years ahead, it’s only going to get worse. [The NSA will] say that… because of the crisis, the dangers that we face in the world, some new and unpredicted threat, we need more authority, we need more power, and there will be nothing the people can do at that point to oppose it. And it will be turnkey tyranny.”

The following are 27 quotes from Edward Snowden about U.S. government spying that should send a chill up your spine…

Are you on the list?  Are you one of the millions of Americans that have been designated a threat to national security by the U.S. government?  Will you be subject to detention when martial law is imposed during a major national emergency?  As you will see below, there is actually a list that contains the names of at least 8 million Americans known as Main Core that the U.S. intelligence community has been compiling since the 1980s.  A recent article on Washington’s Blog quoted a couple of old magazine articles that mentioned this program, and I was intrigued because I didn’t know what it was.  So I decided to look into Main Core, and what I found out was absolutely stunning – especially in light of what Edward Snowden has just revealed to the world.  It turns out that the U.S. government is not just gathering information on all of us.  The truth is that the U.S. government has used this information to create a list of threats to national security that the government would potentially watch, question or even detain during a national crisisIf you have ever been publicly critical of the government, there is a very good chance that you are on that list.

Bill MurphyIn this excellent interview with Finance & Liberty’s Elijah Johnson, GATA’s Bill Murphy discusses the CME’s recent disclaimer regarding the accuracy of their physical gold and silver reports, the potential for a bail-in collapse of the banking system here in the US, and when the gold manipulation scandal might finally join the Benghazi, IRS, PRISM, and ever-widening plethora of scandals plaguing the Obama administration.
Murphy’s full interview is below:

barbaric relicThe war against gold continues.  Last week, New York University professor, Nouriel Roubini, published another article with singular aggressiveness, in which he said that by 2015, the price of gold will collapse to a thousand dollars an ounce.
Roubini is a well known Keynesian and always refers to gold as a “barbarous relic”.  Roubini became famous as one of the few economists who predicted the financial crisis that erupted in 2008, and since then, the mainstream media echoes his words every time he utters an outrageous prediction.
This is not surprising, since the interests of the so called “mainstream media” are usually –not by mere coincidence, the same ones as those of the monetarists and Keynesians: the monetary stimulus (QE), public deficits, bank bailouts, etc.
In other words, Roubini has become one of the favorite analysts of the Powers that be.

Jamie DimonWhat can be said for both gold and silver is their price trends are down, whether viewed from the Potemkin COMEX, or whether viewed from the known strong demand from any part of the world.
Is there anyone unaware of these two opposing forces?    For right now, the world of make-believe is winning.  What is right or wrong does not matter.  What relationship supply has to demand does not matter.  Whether central banks can make delivery of physical does not matter.
No matter what the disdain is that PM holders, and the rest of the world, have for the Potemkin paper exchanges; no matter what the demand is world-wide, what the premium is over spot; no matter how empty central bank [gold] cupboards are, what is the one source to which everyone remains riveted?  The Paper Market!  What else can be said?

There still seems to be huge misunderstanding by many investors as to what it really costs to mine silver.  I still come across individuals and analysts who believe the price of silver is overvalued because it is so cheap to mine the metal.  Part of the reason for this FALLACY, especially from bearish silver analysts, is due to the reporting of CASH COSTS.
It doesn’t matter which mining company report you look at, just about all of them list what their cash cost is to produce their main metal.  Furthermore, the Silver Institute lists the primary silver miner’s cash cost per ounce from the Annual World Silver Survey on its website for all to see.

Gold priced in yen, euros or Australian dollars may outperform bullion priced in U.S. dollars in the coming months due to the financial and economic challenges facing Japan, the Eurozone and Australia according to Bloomberg Industries.
A pledge to double the size of the Bank of Japan’s balance sheet has already seen the yen fall sharply versus all major currencies and gold.
Actions by the ECB to potentially boost monetary stimulus amid weakness in the region have not led to material weakness in the euro yet.
A bursting property bubble, weakness in iron ore and coal prices in addition to lower benchmark rates have led to declines in the Aussie dollar in recent days and further weakness in the Aussie dollar is very likely – especially versus gold.

empty vaultThe Gold manipulation will continue until the Gold market is totally broken, until the big banks that control it are totally broken, or until the USDollar & USTBond structures are totally broken.  Personally, I am encouraged by the mid-April events to crash the Gold price. It has resulted in exposure of the criminal element, in exposure of the COMEX & LBMA as being desperately low in Gold inventory, in exposure of the great difference between paper Gold price (futures contracts) and physical Gold price (actual high volume sales), and in tremendous motivation by the very wealthy to reclaim their Gold in Allocated Gold Accounts. The bankers have brought to the table a Prima Facie case that their corrupt Gold market attack was motivated by having no Gold for contract delivery.
The Jackass forecast is for the next great scandal to be centered upon the Allocated Gold Account thefts, which my excellent source informs me involves the improper usage, leasing, and theft of over 20,000 metric tons of Gold bullion. The German Government formal request for repatriation is the tip of the iceberg.  It is a contest, a race, between the breakdown of the USD/USTBond structure and the COMEX & LMBA Gold market structure. The former is in the process of being rejected by the Eastern nations, now organized. The latter is in the process of being recognized as an empty arena with no Gold in inventory.

silver demandI think monetizing debt and spending and deficit is going to get much, much worse until the world rejects the dollar.  And there will be a rejection here at home, and prices will soar, and eventually interest rates will break loose and they will start rising.
When people become frightened, they look for things of real value, and I don’t think they can repeal the laws of economics that says that for 6,000 years metals have been beneficial. They will go to monetary metals, gold and silver, and they will buy other things, such as buying property.
But no matter what we have, whether we have our gold coins or we have our property, if we have an authoritarian government, that is our greatest threat.

So, I would like to think that there is no perfect protection, other than shrinking the size and scope and power of government, so that we can be left alone and take care of ourselves.
Chris Martenson’s full MUST LISTEN interview with Ron Paul on gold, silver, dollar collapse, and the totalitarian state is below: