In January of 1919, one ounce of silver was worth approximately 12 Deutsche Marks.  By the end of 1923, one ounce of silver was worth 543,750,000,000 Deutsche marks.  Unfortunately, the similarities to the years immediately preceding the Weimar hyperinflation are uncanny to our current fiscal and debt crisis.
For a visual picture of what will happen to the dollar value of silver during a hyperinflation, we present a chart of Deutsche Mark silver from 1919-1923 below.

Following last week’s Silver is the New Gold infographic detailing all the supply/demand data and statistics a silver bug could imagine, Visual Capitalist has released the ultimate infographic on gold as an investment.   While it’s not silver, gold is our next favorite investment.

Judge Mark Schrager has granted Kitco Metals a 4th bankruptcy extension until June 26th, 2013.  Kitco’s 3rd extension expired 10/17/12, meaning Kitco faced liquidation had the judge failed to again extend the proceedings. The judge also authorized Kitco to solicit financing, and pay several large invoices to Attitude Montreal, Inc.

SilverMoneyFuture has released an excellent interview with our friend Ned Naylor-Leyland regarding what brought him into the precious metals sector and what he sees for gold and silver going forward in a ZIRP (or even NIRP) environment.

Naylor-Leyland discusses his views on QE3, and states that the Fed and Bernanke is attempting to walk a tight-rope between printing enough to prevent a massive economic collapse, without triggering an increase in the velocity of money by causing global investors to lose confidence in the dollar. Naylor-Leyland states it’s all about managing perception and managing the markets, and that there are no markets anymore, only manipulations.

Full interview below:

By SRSrocco

In a stunning development over the first seven months of the year, the United States has run up a huge gold deficit as it has exported a record 424 metric tonnes of gold.  This is indeed a significant amount when we find that the U.S. exported a total of 488 metric tonnes for the entire year in 2011.

According to the USGS July Gold Mineral Industry Survey, the U.S . only imported 188 metric tonnes of gold between Jan-Jul, but exported 424 metric tonnes leaving a huge shortfall.  Some of this deficit was made up by the U.S. domestic gold mine supply.

However, if we add up all the domestic gold mine supply plus the gold imports in the first seven months of 2012, the United States still ran a large 102 metric tonne gold account deficit.

The United States is exporting a record amount of gold and the majority of it is being sent to Switzerland, London and Hong KongThese large U.S. gold exports are likely being used to try and fill the insatiable demand for PHYSICAL GOLD by the Eastern buyers.

White House insiders reportedly have revealed that the Benghazi attack was a STAGED kidnapping event gone wrong coordinated by Obama and the Muslim Brotherhood to ensure Obama’s re-election when the ambassador was heroically rescued prior to the election.  The insiders state the Obama team went into a panic when the thugs hired by the Brotherhood murdered the ambassador and three other Americans.
These reports have gained credibility in the past 24 hours as Clinton took ‘full responsibility’ for the attack Monday.  Perhaps Clinton is attempting to keep the MSM focus of the FUBAR situation off of the POTUS and his team?

By Ron Paul:

Last week, supporters of the current administration rejoiced over job numbers released by the Bureau of Labor and Statistics (BLS).  For the first time since the administration came to power, the official unemployment number fell below 8%.  Keynesian cheerleaders all claimed the numbers meant we are surely on the road to economic recovery, just in time for Christmas, and also, the election.  Others saw through this ruse.

The situation on the ground looks nothing like a recovery. 23 million people are still out of work or chronically underemployed.  This number is expected to rise dramatically next year. The situation in Washington should not give anyone cause for optimism.  Politicians refuse to look honestly and intelligently at the cause of our economic malaise, and so real solutions are not taken seriously or acted upon.  It is much easier and less painful to simply recalculate the numbers and redefine the terms until a rosier picture is presented.  There is only blind hope that at some point, for some reason, things might change.  But nothing will change for the better if we only stay the course.

The head of industrial and precious metals trading at Barclays, Cengiz Belentepe, has told Bloomberg that investors are selling their investments in gold ETFs and opting for the safety of allocated physical goldAccording to Barclays, gold holdings in ETF products are growing at a slower pace than in 2004-2009 because some investors may be moving to physical bullion after initial purchases of an ETF.
Gold holdings in ETPs have increased 9.6% this year to a record 2,582.98 metric tons, data compiled by Bloomberg show. They rose 7.9% last year and 19% in 2010. Growth in gold ETP holdings has exceeded 35% from 2004 to 2009, the data show.
Barlcay’s Belentepe said “the question is whether the pace of buying has slowed, or whether the people have become a bit more sophisticated in recognizing the costs and liabilities.”

Peter Schiff discusses a just released Fox News Presidential Poll which confirms that inflation is a bigger concern for voters than unemployment and the housing market combined. In fact, more than twice as many registered voters are concerned about the “inflation” tax as are worried about all other federal taxes combined!

Thankfully, the ChairSatan assures us that inflation is UNDER the Fed’s 2% theft target.  Perhaps more people need to listen to the ChairSatan rather than observing their grocery and fuel bills! 

Submitted by SD Contributor Marshall Swing:

Gold COT Report 10/12/12

Commercials sold off -4,536 longs and covered a significant -6,818 shorts to end the week with 54.75% of all open interest, a huge decrease of about -1.57% from the previous week in total open interest, and now stand as a group at –26,698,800 ounces net short, a small decrease of 228,200 ounces net short from the previous week. 

Our favorite member of the European Parliament, Nigel Farage, has responded to last week’s announcement that the European Union has won the 2012 Nobel Peace Prize.

Farage congratulated the EU stating: ‘The Nobel prize itself will be brought into disrepute by this.  Just a few days ago Angela Merkel went to Athens and was greeted with Motolov cocktails, demonstrations, and people dressed up in Nazi uniforms!   What we’re seeing is Europe being divided by North and South, and we’re seeing disharmony caused by the Euro project.

When the host suggested Farage be the one to accept the award he responded:  ‘The one thing you can be certain of is that the person who accepts this award will be unelected, and committed to the abolition of democracy in the nation-states of Europe.

In his latest update, former Bear Stears trader Greg Mannarino states that QE3, in which the Fed is printing over 1,000 million dollars a day to purchase mortgage backed securities will soon be old news as the Fed will begin QE4-outright Treasury Bond purchases beginning in 2013.

Mannarino states that when Operation Twist ends at the end of 2012, the Federal Reserve will have NO CHOICE buy to institute a NEW ROUND OF TREASURY BOND PURCHASES!  The Fed has already stated they will keep mortgage rates low through the end of 2015, and they will achieve it by debasing and DESTROYING the dollar, and making OUTRIGHT TREASURY BOND PURCHASES in order to keep rates at low, artificially manipulated levels.  This will result in a downgrade in the US rating by all of the major US ratings firms.


Submitted by SD Contributor SRSrocco:

The latest USGS monthly Silver Commodity Update IS AN ABSOLUTE SHOCKER.  If we take a look at the difference in silver exports from just June to July, we can see that a staggering 169 metric tonnes of silver was sent to the United Kingdom back in JulyThis is a 5.4 million ounce transfer of silver to the U.K in just one month:

*UPDATE: 2nd wave of raid smashes silver under $32.50, gold under $1730

Apparently Blythe and Jamie were inspired by yesterday’s 25 mile skydive jump by Felix Baumgartner.
Monday’s COMEX open came and went without any apparent manipulative paper dump, but it appears that Blythe  was merely stuck in traffic this morning, as both gold and silver just fell down an elevator shaft at 10am EST.

Silver dropped vertically in seconds from $33.25 to $32.63, and gold dropped vertically from $1745 to $1735.


As both metals are nearing or at strong support, it is time to consider STACKING THE SMACK!!

Our friend Sean from the has released an excellent interview with author James Wesley Rawles.  The pair discuss the inevitable wave of inflation coming to the US as a result of the Fed’s policies which James says will be “Weimar-style”, which means HYPERINFLATION. Where it gets really scary is that precious few people are prepared and in James own words, “People have no idea what the collapse of Western civilization might look like.”

Full interview below:

There was a massive silver withdrawal out of the Comex on Friday.  Over the past week, there has been a steady increase in the total amount of silver in the Comex warehouses.

However, in one huge withdrawal, 3.6 MILLION OUNCES, a whopping 17% of Brinks total REGISTERED silver inventory was removed on Friday.  I have not seen such a large withdrawal from the registered category for quite some time.

Furthermore, this single withdrawal from the Brinks registered category was nearly 10% of all the total registered silver in the Comex warehouses.


Gold saw quick price falls at the open in Asia overnight and hit a two and a half week low, continuing the drop from the prior trading session.  Stop loss selling was triggered that counteracted the news of China’s inflation data which hinted at a need for further QE.  The yellow metal had its largest daily drop in over two months on Friday. More speculative players may have taken profits and closed long positions after US consumer sentiment climbed to a five year high.
October is one of gold’s weaker months and a correction after recent gains was possible and has materialised. Further weakness is possible and indeed likely although physical demand from Asia has picked up and that should support gold at the $1,700/oz level.

UBS said this morning that it is important to point out that “volumes exiting are not overwhelming, the liquidation action is patchy rather than consistent, while outright shorts are in limited numbers.”  US gold futures and options net length climbed to 198,194 contracts for the week ended October 9th, the highest in nearly fourteen months.  This correction should be used to further accumulate physical bullion in anticipation for a rally in gold after the election in November.

The cartel wasted no time on light Globex trading Sunday night, attacking both gold and silver.  Both metals were treated to waterfall declines on the open, with silver smashed UNDER $33 in seconds, smashed from $33.58 to $32.98.
Gold was knocked down $12 in seconds from $1755 to $1738.

Submitted by DeepCaster:

“Can’t debate, so they changed the job numbers.” –Jack Welch, former General Electric CEO

Jack Welch’s Intuition – that the Official Numbers from the Bureau of Labor Statistics are Bogus — is correct. The Real U.S. Unemployment Rate is 22.8%.  But of equal importance is Welch’s focus on the importance of having reliable numbers as the basis for making sound Business Decisions (and Investment Decisions, we add) in order to protect Wealth and Profit.   So we lay out here certain critically important Numbers, and indicate resultant Profit Potential.

Consider, for example, Key Numbers which will help determine the future Gold Price.  In the first two months of Last Year, Chinese Gold Imports from Hong Kong were about 11,000 kilograms. This year, for the same period Imports were 72,000 kilograms for the same period, about a 650% Increase.
Yet China is now the largest Gold producer on the Earth.
onclusion: China is Hoarding Gold.

Submitted by D. Sherman Okst

What do White-Winged Doves have to do with economics?


This short, nonfiction, tragicomedy personifies what is wrong with our country, our economy and our totally inept and very dysfunctional legal system that has become a leech to taxpayers and a threat to humanity.

The Great Depression of the 1930s was brought upon by lawlessness. Documented, historical proof that a functioning economy is dependent on a basic legal framework. One that we no longer have.

It has been dismantled to allow a few megalomaniac psychopaths on Wall Street to become even richer.