Last Friday we updated readers of an astonishing 3.6 million ounce REGISTERED silver withdrawal from Brink’s COMEX vaults.
The physical silver drain continued Tuesday, as a massive 1.2 million additional REGISTERED ounces were withdrawn– again from Brink’s vaults!!

This brings the total to nearly 5 million ounces of REGISTERED silver withdrawn from a SINGLE COMEX DEPOSITORY in the span of 3 days!   This is approximately 25% of Brink’s entire REGISTERED inventory, and 12% of the entire COMEX REGISTERED SILVER INVENTORY!!!

In typical fashion, Jon Nadler (top bullion specialist for Kitco) has decided to add more BEARISH RHETHORIC on the precious metals.  In his Oct 15, 2012 IN THE LEAD column, Nadler thought it was time to bring in a so-called VETERAN MARKET MAVEN to describe the future forecast for silver:

The most recent Value View Gold Report written by veteran  market maven Ned Schmidt notes that Silver has risen in  parabolic fashion, to the top of [its] trading range. It has stalled, and moved  through that parabolic. The only reasonable expectation from the chart is that  it should now trade down to the bottom of the trading range. The forecasts of  an imminent upward explosion in the price of Silver simply cannot be supported  by either the fundamentals or the charts.”

Here we can see that one of my favorite analysts (sarcasm added) has been included in Jon Nadler’s commentary.  Of course, Nadler hardly ever includes analysts that might paint a BULLISH forecast for the precious metals.  I am simply amazed that anyone still reads anything that Mr. Nadler has to say.  It that vein, it is no surprise that KITCO has received its 4th bankruptcy extension… as the Doc posted here yesterday….LOL

Greg Mannarino says “open-ended” QE by the Fed is “the big print that is signaling “the currency is dying. The debt based economic model is over . . . and a new system is coming.” Mannarino is a financial analyst who advises, “Bet against bonds which is debt, and bet against currency which is debt, and you will come out of this good.” Mannarino says the dollar calamity that is unfolding is the biggest financial event ever. He goes on to say, “We have never witnessed anything like this in the history of the world.”  Mannarino states investors must become their own central bank by acquiring PHYSICAL GOLD AND SILVER NOW!!!
Join Greg Hunter as he goes One-on-One with Greg Mannarino.

By Stewart Thomson

Market prices move mainly on perception. For stock markets, money printing is becoming perceived as the “engine of growth”.  Silver can do very well when institutional money managers operate on the perception that stock markets are healthy, growth is stable, and money printing is good. It doesn’t matter what the economic reality is; it’s their perceptions that determine their liquidity flows.  Commodity traders might call the price action around the $35 area a double top pattern, but it’s pretty small.

I’d like to draw your attention to the current position of the Stochastics (14,7,7 series) indicator. The red line is already reaching oversold status, near the 20 area.  From the lows near $26.25, silver rallied more than 30%, to the $35 area. Since then, it has only declined by about 8%.  Silver may not be able to outperform gold in this crisis, but it can still do very well in the current environment of institutional perception.   I expect MACD to turn up very soon, and the silver price to move towards the high at about $37.50.

After months of dragging their feat and claiming it was necessary for national security reasons to keep the info classified (sounds like an freedom of information request to the Fed) The Bank of Mexico has been forced to comply with the Federal Transparency Law and release information revealing where the Central Bank’s gold reserves are held.

In what will not be a surprise to any SD reader, the report reveals that The Bank of Mexico holds less than 5% of it’s gold reserves within Mexico, while the remaining 95% of it’s ‘physical’ gold reserves are held in the US and London (translation- nearly the entirety of Mexico’s gold reserves are held at the Bank of England and the NY Fed basement, and have likely been rehypothecated more times than an MFG client’s assets).

Our friend Eric Sprott recently pointed out in his monthly newsletter Do Western Central Banks Have Any Gold Left? the likelihood that the Western Central banks have largely leased out the gold they are supposedly holding as reserves.
In effect, Mexico just admitted that their actual, tangible gold reserves are 1/20th of the stated total.  Perhaps Mexico should consider hiring Hugo Chavez as their gold reserves consultant.


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.