On today’s SD Weekly Metals & Markets, we’ll discuss a number of subjects, including:

* Physical market trends and Doc’s direct market intelligence on the rapidly growing shortage in physical silver, and now physical gold!

* Constructing a timeline of the past month’s market events culminating in the epic gold & silver raid for deeper understanding

* Where to now?  Our outlook on a number of possible scenarios, including speculation about metal exchange defaults, Jim Sinclair’s thesis about bullion banks eventually going net long and gold’s eventual return to having an explicit role in the global trading and banking system.
This week’s SD Metals & Markets is a MUST LISTEN!

Submitted by Deepcaster:

On Friday, April 12, the Fed’s agents hit the market with 500 tons of naked shorts. Normally, a short is when an investor thinks the price of a stock or commodity is going to fall. He wants to sell the item in advance of the fall, pocket the money, and then buy the item back after it falls in price, thus making money on the short sale. …with naked shorts, no physical metal is actually sold…
“Consider the 500 tons of paper gold sold on Friday. Begin with the question, how many ounces is 500 tons? There are 2,000 pounds to one ton. 500 tons equal 1,000,000 pounds. There are 16 ounces to one pound, which comes to 16 million ounces of short sales on Friday.
Who has 16 million ounces of gold? At the beginning gold price that day of about $1,550, that comes to $24,800,000,000. Who has that kind of money?

no bottomBy SD Contributor Marshall Swing:

Gold & Silver COT Report 4/19/13:

Commercial longs added 581 contracts to their total and 5,155 shorts to end the week with 46.34% of all open interest, a huge increase of 3.18% in their share of total open interest since last week, and now stand as a group at 112,490,000 ounces net short, which is an increase of just under 23 million net short ounces from the previous week!
I will go on record and say the bottom is not in yet.

Former bank regulator and Professor William Black says, “Apparently, regulators are much more sophisticated than we were because we had never thought of leaving felons in charge of our largest financial institutions.”
Dr. Black contends, “This started with the first lie of the virgin crisis–that the banks are pure and had stopped violating the law. The second lie is that we can’t prosecute . . . because if we did, we would cause the financial system to collapse. This is ludicrous.” Dr. Black predicts, “The U.S. banking system is absolutely primed for the next meltdown. Dr. Black and others think, “There is pervasive fraud at the most reputable banks. . . . The U.S. financial system is sick, and we still have the fundamental dynamic of a regulatory race to the bottom.” Join Greg Hunter as he goes One-on-One with UMKC Professor William K. Black.

Is the United States about to experience another major economic downturn?  Unfortunately, the pattern that is emerging right now is exactly the kind of pattern that you would expect to see just before a major stock market crash and a deep recession.

History tells us that when the price of gold crashes, a recession almost always follows.  History also tells us that when the price of oil crashes, a recession almost always follows.  When both of those things happen, a significant economic downturn is virtually guaranteed

The Swiss Financial Market Supervisory Authority (FINMA) has quietly joined the growing parade of western nations who have quietly re-written banking laws to allow depositor bail-ins upon the next banking crisis.
If Switzerland, the once ultimate safe haven for banking deposits across the world is preparing to confiscate depositors funds, there truly is no protection anywhere other than physical gold and silver in your own possession!

In the event that a bank is failing or where its capitalization is no longer adequate, the Swiss Financial Market Supervisory Authority (“FINMA”) may take measures to improve such bank’s financial viability rather than liquidating it. “Loss absorption” and “bail-in” are important instruments to support any such measures.

Jeff Nielson from Bullion Bulls Canada joins Sean of SGTreport.com to cover the pure desperation of the Banksters. We cover it all in this one; the Comex raid, the decoupling of paper price from physical reality, the Cyprus litmus test, the Canadian banks bail-in plan & the webbots prediction that silver WILL hit $500 and beyond in the near future, ultimately trading at 1 to 1 with gold.

FtKnoxGoldSD has discovered the manuscript of a 1981 article by The Globe which reported that 7,000 tons of gold bullion were removed from Fort Knox from $1973-74, and the only bullion that remained was from melted down gold coins & was of such poor quality (at least 10% copper) that it would not be accepted on the open market by any nation.

“300 truckloads of bullion were simply driven away.”

Full 1981 report by The Globe is below:

The cartel showed their hand and the “free press” portrayed what happened to gold and silver last Friday and Monday as a “selling panic”.
They were correct 100% in their assertion…what they didn’t do was tell you who was doing the selling and who was doing the panicking.

Friday the 12th and Monday the 15th of April were memorable days. It is clear that both silver and gold paper markets were taken down via a devastating attack of naked short selling that triggered margin calls that accelerated the decline. Gold and silver investors panicked, and some sold into the lows.

We have been there before. Using SLV prices (slightly lower than spot silver), a high near $21 was reached in March of 2008. Markets crashed, both stocks and metals investors were seriously hurt, and the banksters received a bailout – TARP. Ancient history – but the point is that, in 2008, silver dropped about 55% from its high price, while gold lost about a third from its high price.

U.S. gold coins sales have been at record levels this week. Lower prices and the tragic events in Boston may have contributed to increased buying due to concerns about the risk of terrorist attacks.  Premiums are rising in Europe and the U.S. and there are delays of a few weeks on some smaller coins and bars showing the growing tightness in the market.
We are hearing of huge jumps in premiums for all gold products at the street level, so there is a sense that the downdraft for gold futures has overrun the rear physical metal market in a big way,” said Gene Arensberg, editor of the Got Gold Report.
High premiums mean supply is drying up and it is just a question of time before that shows up in the paper gold markets,” he said.

bail-inOutgoing Bank of Canada Governor (& Goldman alum and incoming BOE Governor) Mark Carney just released an epic Freudian slip today during a televised speech in Washington regarding the Western financial system’s co-ordinated move from bailouts to bail-ins as official policy to future bank crises.

It’s one thing when the editor of an obscure financial blog discovers bail-in language written into policy by the Fed, Bank of England, the Bank of Canada, Italy, & New Zealand and it goes viral throughout the alternate financial blogosphere, and it is another thing entirely when the incoming head of the Bank of England himself accidentally lets slip that Western financial policy-makers are working diligently to devise an international “bail-in” regime to prevent big bank failures.

Mark Carney’s DIESELBOOMesq retraction in 3…2…1….