In perhaps the biggest story in gold since Hugo Chavez sent shock-waves throughout the gold market in mid 2011 (and propelled gold up $300 to a record $1915), the German Federal Accountability Office has ruled that the Bundesbank must conduct an audit on German Central Bank gold holdings, and in anticipation, has begun the repatriation of German gold from the NY Fed.   The Bundesbank will request the NY Fed ship 50 tones of German gold back to the motherland a year for the next 3 years!

It appears de Germans are about to receive a crash course in the lesson He who owns the gold makes the rules (aka possession is 999/1000ths of the law).

Assuming that the NY Fed does decide to comply with the Bundesbank’s request to keep up appearances for the other central banks, we wish the cartel luck in finding 150 tons of TUNGSTEN FREE PHYZZ over the next 3 years as the Bundesbank reportedly will PHYSICALLY VERIFY THE GOLD.   So much for the cartel plans to fill repatriation requests with  tungsten salted phyzz.

While it was likely a fat finger of the data entry variety by an employee of the bankrupt Kitco.com, silver’s 24 hour live chart reveals a massive $1.50 spike from $32 to $33.50 just prior to midnight eastern. 

Unfortunately for Blythe and her monkeys, the spike failed to trigger a single liquidation algo on physical silver holdings.
With the October FOMC statement due later Wednesday, perhaps a late night caption contest is in order?

Jim Sinclair sent an email update to subscribers this afternoon regarding media reports that Fed Chairman Ben Bernanke will step down and retire when his current term expires in January of 2014.

Sinclair states that like former Chairman Alan Greenspan who retired immediately preceding the collapse of the housing bubble leaving Bernanke holding the bag, if Bernanke steps down a year from January, it will indicate a monetary mushroom cloud of EPIC PROPORTIONS looms on the immediate horizon and Bernanke has no tools to prevent it.

The lovely Megan Duffield has informed us that the long awaited Silver Circle Movie will debut Thursday at the Silver Summit in Spokane Washington. 

SD readers unfamiliar with the film can find out more from our recent interview with Megan on the movie, or by visiting the film’s website.

We have a limited supply remaining of the 1 oz silver rounds commemorating the film available at SD Bullion while supplies last.

Submitted by SD Contributor SRSrocco:

The US Mint’s frantic silver sales pace continued over the weekend, as the Mint reported 430,000 ounces of silver sales over the weekend on Monday.  Perhaps more importantly, the US Mint Silver eagle to US Gold eagle sales ratio continues to exceed 50 to 1, a pace that is simply unsustainable with a current mine ratio of 9 to 1.

Unconventional Finance has released an interview with former GATA member Bix Weir discussing the new entrance of Citibank into the silver derivative market for the purposes of continuing the price rigging operations, as well as Weir’s belief that a massive silver shortage will soon hit the market.

Full interview below:

In less than two years, the Chinese Mint has increased the production of its 1 oz Chinese Silver Panda 1233%,  from 600,000 per year to 8 million in 2012.

Even though this is certainly a massive increase in just two short years…. this may only be the beginning of something really big that is being planned by the Chinese Mint.

According to Louis Golino’s article “China Strives to Make Silver Pandas as Popular as American Silver Eagles“, we have just begun to see just how many Silver Pandas the Chinese plan on minting.

In his latest update, former Bear Stearns trader Greg Mannarino states its time to level the playing field between the average Joe and professional investors.    Mannarino notes the vanishing volume in the equities markets, states the stock market is getting ready to roll-over, and states the bottom-fishers’ cash will wind up in the pockets of professional investors.
Mannarino states it is now time to exit the equities markets and plow the proceeds into PHYSICAL GOLD AND SILVER to protect your assets from the 1-2 punch of the coming massive equities correction along with dollar devaluation courtesy our friends at the Fed via QE∞.

German Federal auditors handed in a report slamming the Bundesbank for not inspecting their foreign held gold reserves to verify their book value. The report says the gold bars “have never been physically checked by the Bundesbank itself or other independent auditors regarding their authenticity or weight.” Instead, it relies on “written confirmations by the storage sites.”  The lion’s share of Germany’s gold reserves (nearly 3,400 tons estimated at $190 billion) are housed in vaults of the US Federal Reserve, the Bank of England and the Bank of France since the post-war days, when they were worried about a Cold War Soviet invasion. The Bundesbank stated, “There is no doubt about the integrity of the foreign storage sites in this regard”. In contrast with best industry practices Germany’s gold reserves do not seem to be independently verified by a third party. Philipp Missfelder, a politician from Merkel’s own party, has asked the Bundesbank for the right to view the gold bars in Paris and London, but the central bank has denied the request, citing the lack of visitor rooms in those facilities, German’s daily Bild reported. The Bundesbank won’t let German parliament members inspect the German gold vaulted abroad because the central bank vaulting facilities supposedly lack “visiting rooms. And yet one of those vaults, the Federal Reserve Bank of New York, offers the public tours that include “an exclusive visit to the gold vault”.

Less than a month ago news broke that 10 PAMP gold bars filled with tungsten had been discovered in Manhattan.  An SD reader then discovered a Chinese firm openly promoting the sale and production of tungsten filled gold bars and coins.
The tungsten filled gold scandal has just gotten exponentially larger, as an Australian Seven News investigation discovered 300 fake Perth Mint gold bars and uncovered a Chinese gold ‘forgery factory’.

The investigators were able to purchase 300 Chinese sourced 1oz gold bars for a total of $300- and to no one’s surprise, when the investigators melted down the bars, all 300 were discovered to contain roughly the same gold content as Fort Knox

Submitted by Cleburne61:

The self-doubting going on around the metals community recently about the facts of manipulation are, after all this time, downright annoying.

Ted Butler’s point has always been that what’s occurring is manipulation not because the spread positions and hedges are unbalanced, or because it’s naked shorting, but because there exists a grossly disproportionate concentration and collusion of positions within the bullion bank activities in silver.

As of two weeks ago, JP Morgan alone held more than 1/3 of ALL short positions in COMEX silver.  THAT is concentration that would’ve blown the Hunt brothers’ minds.

Fabian Calvo buys and sells a $100 million worth of distressed mortgage debt and property a year.  He says, “We haven’t even scratched the surface of being at the bottom of the housing market.”  Calvo predicts, “. . . massive default and massive foreclosures after the election.”   Calvo is an outspoken critic of crony capitalism on his “Fabian4Liberty YouTube channel that has nearly 2 million views!  Calvo says, “You have to flush out mal investment to get the economy working again and to rework the Constitutional Republic, you have to flush out the criminals who have hi-jacked it.”

In his latest update, former Bear Stearns trader Greg Mannarino states he expects further weakness in equities as well as gold, silver, and oil.   He states the current pullback in the metals is a GIFT, and should be met with strong accumulation by precious metals investors.
Mannarino discusses the importance of remaining detached from your investments, and states that investors should expect massive volatility in the next few months and should remain prepared to capitalize on further price weakness in the metals.

Mannarino stresses that what happens in the short run with the metals DOES NOT MATTER, the equities and treasury bond bubbles WILL BURST, and will DESTROY investors that are not protected with gold and silver.