200428723-001In the latest Keiser Report, Max Keiser and Stacy Herbert discuss Mom and Pop investors taken out on a slab and their wealth burnt to a crisp by the high cathedral of fraud that is the New York Stock Exchange and its degenerate priests of high finance. Max proposes a scheme of mortgages collateralized by food stamps.

silver investment demand jumpsThe world’s largest silver producer saw its production decline substantially in the first half of 2013.  Many assume this decline came from Fresnillo, which is known as the largest primary silver miner in the world.  However, it was recorded by KGHM Polska Miedz, the largest by-product silver producer on the planet whose annual silver production was 41 million oz in 2012.
Silver production at KGHM Polska Miedz declined a whopping 17% from 653 tonnes in 1H 2012, to only 544 tonnes 1H 2013.
I believe we will see the global peak in silver production occur first in the base metal mining industry.

Bullion was mauled in the overnight session, when thin volume facilitates cartel price management.  As can be seen with the overnight session’s sharp decline, this was not the typical stair-step downward move that would be considered normal profit taking following last week’s big gains.  In fact, the regular session on Monday saw normal profit taking during London and New York trading sessions.  Who in their right mind would try to exit large positions for profit taking during the most illiquid period during Tuesday’s overnight session? 
Today’s upside reversal speaks to the underlying strength of this new bull cycle.  The character of the bullion market has changed, readily apparent to anyone with a lick of “mercantile sense” as James Sinclair observes.

gold bull marketU.K. gold ‘exports’ to Switzerland exploded from 92 tonnes in all of 2012 to a whopping 240 tonnes in May this year alone and a very large 797 tonnes in the first six months of 2013.
It is worth noting that the 797 tonnes, while a large number in tonnage terms, for the very small physical gold market, is only worth $37 billion in dollars terms which is less than half the $85 billion in quantitative easing or money creation and debt monetisation that the Federal Reserve does every single month.
The 797 tonnes of gold “exported” from the U.K. to Switzerland  is nearly 30% of total annual gold mining supply.
Rather than “exported,” the flow of gold to Switzerland is more a form of capital flight as, the safest form of money in the world, gold, flows out of the U.K. and into strong, store of wealth, hands in Asia and storing bullion in Switzerland.

You can see it coming, can’t you?  The yield on 10 year U.S. Treasuries is skyrocketing, the S&P 500 has been down for 9 of the last 11 trading days and troubling economic news is pouring in from all over the planet.  The much anticipated “financial correction” is rapidly approaching, and investors are starting to race for the exits.  We have not seen so many financial trouble signs all come together at one time like this since just prior to the last major financial crisis.  It is almost as if a “perfect storm” is brewing, and a lot of the “smart money” has already gotten out of stocks and bonds.  Could it be possible that we are heading toward another nightmarish financial crisis?
Could we see a repeat of 2008 or potentially even something worse? 

UK authorities reportedly raided the Guardian’s office in London to destroy hard drives in an effort to stop future publications of leaks from former NSA contractor Edward Snowden. The action is unlikely to prevent new materials coming out.
Guardian editor Alan Rusbridger revealed in a Monday article posted on the British newspaper’s website that intelligence officials from the Government Communications Headquarters (GCHQ) told him that he would either have to hand over all the classified documents or have the newspaper’s hard drives destroyed.
After more talks, two “security experts” from GCHQ – the British version of the National Security Agency – visited the Guardian’s London offices.
Rusbridger wrote that the government officials then watched as computers, which contained classified information passed on by Snowden, were physically destroyed in one of the newspaper building’s basements.
We can call off the black helicopters,” Rusbridger said one of the officials joked.

Regular readers are familiar with daily cartel patterns of crashing the gold and silver markets on both the LBMA and COMEX open.
It appears that pattern has changed.

After crashing nearly $1 in seconds during Asian trading (just prior to 2 AM EST), silver methodically retraced its losses throughout the London session, and has burst back above $23 to $23.20 on the COMEX open. 

Jim SinclairWith gold and silver continuing their strong short-covering rallies, gold expert Jim Sinclair sent an email alert to subscribers this weekend, warning that a major game changer for the US dollar is at hand, and advising CIGA’s to: Close that new gold swap you have, buy your full of bullion position back as bullion gold and double it in the next few weeks.

Sinclair’s full alert is below:

silver demandIf you want to track how close we are to the next financial collapse, there is one number that you need to be watching above all others.  The number that I am talking about is the yield on 10 year U.S. Treasuries, because it affects thousands of other interest rates in our financial system.  When the yield on 10 year U.S. Treasuries goes up it pushes long-term interest rates up.  When interest rates rise, it constricts the flow of credit, and a healthy flow of credit is absolutely essential to the debt-based system that we live in.  Just imagine someone squeezing a tube that has water flowing through it.  The higher interest rates go, the more economic activity will be squeezed.  If interest rates continue to rise rapidly, it will be more expensive for the U.S. government to borrow money, it will be more expensive for state and local governments to borrow money, the housing market may crash again, consumer debt will become more expensive, junk bond investors will be in for a world of hurt, the stock market will experience a tremendous amount of pain and there is a good chance that we could see the 441 trillion dollar interest rate derivatives bubble implode.  And that is just for starters.

myelchreestSomething very foul is in the air.  I can sense it.  While it seems as if the fragile economic system of ours can be propped up, duct-taped, manipulated and held together for an indeterminate period of time, I believe things could get ugly… very quickly.

Precious metals and mining shares have finally confirmed a 1-2-3 reversalpattern, suggesting a violent regression to the mean is now underway in goldto be further angered as capital flees a collapsing bond market.
“Big money is now trying to get in on the long side and I think this move up out of this bear market bottom probably isn’t going to behave like a normal rally…
it’s going to have a violent regression to the meanmy theory was that we were going to see a pretty strong V-shaped rally out of this bottom…that appears to be what’s going on…we could see gold retesting those September 2011 highs in the next three or four months depending on how hard the dollar falls.” -Gold Trader Gary Savage

binford xlAccording to investment banker James Rickards, rumors of the Federal Reserve ending the money printing propping up the markets is not going to end anytime soon. Rickards predicts, “My view is they won’t. The economy is fundamentally weak. We have 50 million on food stamps, 24 million unemployed and 11 million on disability, and all these numbers are going up.” When the subject of gold confiscation came up, Rickards said, “I just don’t think it will happen because the government will find it will be very hard to enforce.” Join Greg Hunter as he goes One-on-One with Jim Rickards, the best-selling author of “Currency Wars.”

Gold forward offered rates (GOFO),  remain negative and are becoming more negative. This shows that physical demand is leading to supply issues in the highly leveraged LBMA gold market.  GOFO  rates are those which  contributors may use to lend  gold on a swap for  dollars, according to the  London Bullion Market  Association and the negative gold interest rates show a preference to own gold over dollars by bullion banks.
Negative 1, 2, 3, & 6 month GOFO rates mean that bullion banks lent their customers, including other bullion banks, gold to obtain a positive return, thereby increasing the “paper” gold supply. Some may now may be struggling to get their gold  back which may explain the significant decline in COMEX gold holdings of certain bullion banks. This is creating significant supply demand issues in the physical gold market which should lead to higher gold prices.

In the latest Keiser Report, Max Keiser and Stacy Herbert discuss boycotting and shrugging in response to the total surveillance state where even the ‘progressive’ recycling bins are following you. They look at the email service providers who committed corporate suicide and destroyed their assets rather than collaborate in ‘crimes against the American people.’ In the second half, Max talks to John Butler, author of The Golden Revolution, about interest rates, bonds and gold.

fiscal cliffNegative GOFO rates and physical shortage of gold and silver are but a few of the manifestations of the impending beginning of the collapse of the $US. Of course, as the $US and other Fiat Currencies lose Purchasing Power, Gold and Silver gain in price. Savvy Investors are thus acquiring Physical Gold and Silver and Taking Possession Now.
The Era of The Fed’s Creating Money from “Nothing” is soon coming to an end.  Even if QE were stopped today, the Central Banks’ QE already in the System will ensure that The Major Climacterics which we have been forecasting will come to pass.

Zeal081613AThe flagship GLD gold ETF has suffered a radically unprecedented mass exodus this year.  But just this week, money started flowing back into GLD for the first time in months.  This likely marks the dawn of the GLD exodus’s reversal, which is wildly bullish for gold.  Falling stock markets will play a critical role.

Gold finished Friday up $14.10 on average volume to 1375, with silver up $0.25 to 23.18 on heavy volume.  The gold/silver ratio dropped to 59.31.  Silver’s 50 day MA has flattened and is beginning to turn up.  The last time silver’s 50 MA was moving up was mid-November 2012.  Silver has moved up 8 straight days in a row; the move is getting a bit extended, and may be due for a rest.

1 CMPWith JPMorgan’s COMEX gold inventories plunging to all-time lows, it appears that Mr. Dimon has no use for an empty (and now publicly known) gold vault, as Bloomberg reports that JP Morgan is seeking to sell its 1 Chase Manhattan Plaza tower, which houses the world’s largest commercial gold vault 5 stories below street level.
With Ted Butler recently claiming that JP Morgan has now cornered the (paper) gold market to the long side, the 1 CMP sale may indicate that Blythe and Jamie can see the writing on the wall for the coming 3rd (mania) phase of the precious metals bull market, and have indeed decided to get out of the short manipulation game while the getting is good.

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*Podcast download has been updated.  We apologize for the episode version error uploaded previously.

On this week’s Metals & Markets The Doc & Eric Dubin cover:

  • Blast through $21 silver, as we forecast last week, demonstrates a major change in market psychology
  • Short covering and new long buying repeats end of week pattern from last week; expect higher prices next week!
  • Long-term interest rates moving higher combined with….
  • Political lunacy over the budget and debt ceiling coming in the Fall will provide gasoline for the bullion bull market fire
  • The Doc’s analysis of wholesale bullion market trends

The SD Weekly Metals & Markets with The Doc & Eric Dubin is below:

The largest Islamic nation in the Middle East is on the verge of descending into civil war, the Syrian civil war is starting to spill over into Lebanon, and the worst violence in five years has just hit Iraq, but Barack Obama is way too busy to be bothered with any of that.
It is absolutely ridiculous how much time Obama takes off, and Congress is even worse.  Congress is taking a five week vacation right now.  Most Americans don’t get that much vacation in an entire year.
Meanwhile, as our leaders enjoy their rest, the Middle East is coming apart at the seams.