Protesters climb a fence surrounding the U.S. embassy in SanaaVery significant demand is being seen throughout the world for physical bullion – in Japan, India, Australia, the U.S., Europe and elsewhere.  The speculative raid by one or two banks which led to the price crash is being seen as a gift by eager buyers internationally.
Gold buyers in India, the world’s biggest consumer, are flocking to stores to buy gold jewelry, coins and bars. “This is a perfect time to buy as prices will only go up from here,” said Vishal Mehta, a 33-year-old garment dealer, “I usually buy one gold coin a month, but this time I am buying two.”  The same is being seen in Japan. Reuters report that Yujiro Yamashita, 63, made his way to Tokyo’s posh Ginza district to buy the precious metal for the first time in 20 years after he woke up to news of the fall in gold prices.

In this MUST LISTEN interview, the Golden Jackass Jim Willie states that in the wake of the impending LBMA default that Andrew Maguire warned was in progress Monday, physical gold orders in size are being filled at the $2,000/oz price level, while the COMEX futures prices crashes and burns!

Is the long-awaited final disconnect between paper and physical gold and silver occurring before our eyes?  The fact that US wholesalers are SOLD OUT of physical silver as of Monday evening seems to substantiate this fact.
Jim Willie’s full report is below:

The most recent gold bear raid has vastly enriched the bullion bankers, once again, at the expense of everyone trying to protect their wealth from global central bank money printing. The central plank of Bernanke’s magic recovery plan has been to get everybody back borrowing, spending, and “investing” in stocks, bonds, and other financial assets.  But not equally so – he has been instrumental in distorting the landscape towards risk assets and away from safe harbors. That’s why a 2- year loan to the US government will only net you 0.22%, a rate that is far below even the official rate of inflation. After the two years is up, you are up $44k (interest) but out $260k (inflation) for net loss of $216,000. That wealth, or purchasing power, did not just vanish: it was taken by the process of inflation and transferred to someone else. This explains, almost completely, why the gap between the rich and everyone else is widening so rapidly, and why financiers now populate the top of every Forbes 400 list.  There is no mystery, just a process of wealth transfer of magnificent and historic proportions; one that has been repeated dozens of times throughout history.

The silver market is seeing a new wave of buying emerge once again as prices soften. This is much like what occurred during the notable market dip down to the 8.44 level seen in October of 2008.
Short term anxiety in the silver market tends to play into the hands of the mainstream financial media that loves to cherry-pick data in order to support the sentiment flavor of the day.
This sentiment is normally biased against holding hard assets like silver, resulting in them being misunderstood or scorned.
Furthermore, as the trading range for silver widens and awareness grows of silver as an investment vehicle, more people will have bought the metal at higher levels within the trading range. They therefore tend to suffer from buyers’ remorse if the market subsequently falls.
Long Term is a Different Story

Gold rebounded as store of value and diversificaiton buyers deemed a 14% plunge over two days to be excessive and an Asian central banker said that policy makers may take the opportunity to buy.  The decline in prices would give central banks an opportunity to buy, Central Bank of Sri Lanka Governor Ajith Nivard Cabraal said in an interview on Bloomberg Television today.  The Bank of Korea said that bullion’s drop isn’t a big concern as the bank’s holdings are part of a long-term strategy for foreign-exchange reserves according to Bloomberg.
Holdings in the SPDR Gold Trust, the biggest ETP backed by bullion, fell to 1,154.34 tons yesterday, the lowest level since April 2010, data on the company’s website showed. That’s 15 percent, or 199 tons, below the peak reached in December.

*UPDATED
5 million ounces of annual silver supply and 500,000 ounces of annual gold supply have just been vaporized landslided.
Rio Tinto’s Kennecott mine in Utah- the US’ 2nd largest silver mine and world’s largest copper mine has just suffered a massive landslide which will likely shut down production at the mine for years as upwards of 1 billion tons of dirt and ore have collapsed into the basin. 

16% of US annual silver production just vanished.  Good thing there aren’t any physical supply issues in silver currently or anything…

Astonishing Photos below:

*UPDATE: ALL US WHOLESALE SUPPLIERS ARE NOW SOLD OUT OF EVERY OUNCE OF PHYSICAL SILVER & HAVE SUSPENDED ALL SALES!  SDBullion.com has closed due to lack of ANY AVAILABLE SILVER!

Two of the largest wholesale suppliers in the US, including Amark and CNT, who is the supplier of gold blanks to the US Mint for Gold Eagles, and is a registered COMEX depository, HAVE JUST SOLD OUT OF ALL PHYSICAL SILVER!!!

By SD Contributor Marshall Swing: 17 silver

Gold & Silver COT Report 4/12/13:

Many writers were declaring a bottom for the silver slide after price rose from last Friday’s low of $26.57 and rose to $27.90 at Tuesday’s close.
They were wrong.
Almost all writers have previously declared $26 as the holy grail never to be broken downward again.
They were wrong. 
How low can price go?  I will repeat what Martin Armstrong has said we may see $23 and then if that, then $17 is possible.

guillotineAs we predicted several hours ago, adding insult to injury and likely intensifying the gold and silver smash over the next 48 hours, the CME has just announced an 18.5% margin increase in both gold and silver, effective after the close Tuesday 4/16.

As the margin calls-induced slaughter intensifies, expect the CME to hike margins again in a vicious negative feedback cycle until margins equal cash. 

Precious metal expert Rick Rule is not worried about the recent smack down in gold and silver prices.  Rule is motivated by wealth protection.  So, the price decline is a “nonevent.”  Rule asks, “What are the alternatives?  Perhaps you’d like to buy a 30-year U.S. Treasury, something Jim Grant famously described as a return-free risk.”  Rule thinks the financial world is far from healthy and says, “I have extreme nervousness in regards to a collapse. . . . The only way we could avoid collapse is if we inflate away the net present value of our obligations.  In both sets of circumstances, I am personally more comfortable owning precious metals than not.”  Cyprus is a stunning example of why people should store some wealth in precious metals.  Rule contends, “If you were a Cypriot citizen and you had stored your wealth in gold and silver as opposed to having your money on deposit in a Cypriot bank, the Cypriot banking crisis, for you, would be interesting but not relevant.”  If there is war in Korea, Rule predicts, “If a nuke goes off on the Korean Peninsula, the first move in precious metals would be down. . . . The second move would be higher.  I also believe precious metals would hold their value over time UNLIKE most other asset classes.”  Join Greg Hunter as he goes One-on-One with Rick Rule.

SGEIn an exact replica of the May 2011 massacre, the Shanghai Gold Exchange threatened early this morning that if gold and silver prices did not significantly recover off of early Monday lows (after a brief bounce they have since plunged even further), the SGE would hike gold and silver margins to 12% and 15% respectively…which precipitated a new wave of selling.

Count-down to the CME hiking gold and silver margins to cash in 3…2…1…

gold & silver sold out“Price” or “value” ultimately will be decided upon and truly obtained in the cash physical market which we will need to keep a close eye on in the coming weeks.  The paper markets are saying that Gold and Silver are worth “less” Dollars, now we will watch and see if the supply in the physical markets dry up in protest that the paper markets are wrong.  This is already occurring in the Silver market.  For example, the premium over spot in the junk market has gone to the +15% range which means actual “hold in your hand” pre 1965 dimes and quarters ended the week unchanged even though the paper Silver markets showed a 6-7% loss!

Jamie DimonFour key influences seem to be at play in creating artificially low prices in the silver market:
1. Outside Markets – these tend to have a deflationary influence, until suddenly they do not.
2. Physical Market – this has been surging ahead of and outside of the manipulated futures price.
3. Commercial Traders – these typically dominate the market and act as fronts for the manipulative central banks that are the so-called “not for profit” market participants often spoken about.
4. Tech Funds and Professional Traders – these players tend to be relatively stoic and inwardly focused. Their trading decisions are typically purged of all emotion and seem insensitive to the above factors.
Price Control – Here’s How to Do It