COMEX SILVER 72213BSomething interesting has been going on in the Comex silver warehouse inventories this week.  Not only have large amounts of silver been removed from the Comex since Monday, but there also have been some large transfers that seem quite peculiar.
In three days this week, Scotia Mocatta transferred 1.8 million oz of silver from its registered inventories to JP Morgan’s eligible inventoriesFurthermore, a total of 2.7 million oz of silver were withdrawn from the Comex (net of transfers) and Scotia Mocatta saw its registered silver inventories decline nearly 20%.
The real question is… what’s going on here? Is JP Morgan building physical supplies to hand in against delivery notices?


In this week’s SD Weekly Metals & Markets The Doc & Eric Dubin discuss:

  • This week’s rally in gold & silver- metals close strong ahead of next week’s FOMC statement
  • GOFO negative 15 days & counting
  • India gold smuggling & unprecedented Chinese gold demand
  • JP Morgan’s announcement Friday evening of the sale of its physical commodities business is JP Morgan really closing down their gold vaults?

SD Weekly Metals & Markets is below:

Gold stocks are actually enjoying a great month, a stark contrast to this year’s brutal death spiral lower.  But after catapulting up by more than a quarter in less than a month, investors are wondering what to do next.  Is it time to cut losses before the catastrophic plunge resumes, or double down on the birth of a major new upleg?
With this sector still wildly oversold and absurdly undervalued, I’m betting on the latter.

EmptyVaultWith JPMorgan’s COMEX gold vault down to all-time historic lows and the firm looking at a $1 billion settlement with FERC over Blythe Masters’ manipulation of the electricity market, JPM has just announced shocking news that the firm is seeking a sale, spin off or strategic partnership of its physical commodities business.

Russia and China have now pooled their efforts in order to make their dreams of a stronger rouble and yuan come true. The currency wars raging around the world are just the tip of the iceberg, the famous US trader Russ Winter says. China has launched a series of manoeuvres to wrest away from the dollar its current status as the planet’s main reserve currency. In accordance with a long-standing Chinese tradition, the strategy of that war is based on deception.
The two allies’ plan is as follows: first they want to put a tight noose around the dollar’s neck, and then, when a convenient moment comes, kick the chair out from under the United States.

Jamie DimonSubmitted by Ted Butler:

One market participant, JPMorgan, determines what will happen price-wise in gold and silver (and other commodities). This is a crooked bank that has no business controlling the gold and silver markets by its easy to document dominant market position. It’s encouraging that there is wide discussion on the unnatural control that big banks have on LME metal warehouses and that the Fed is reconsidering the wisdom of allowing banks to deal in physical commodities. But the most obvious danger of all is allowing JPMorgan to hold dominant market shares in regulated futures markets.

If our leaders could have recognized the signs ahead of time, do you think that they could have prevented the financial crisis of 2008?  That is a very timely question, because so many of the warning signs that we saw just before and during the last financial crisis are popping up againMany of the things that are happening right now in the stock market, the bond market, the real estate market and in the overall economic data are eerily similar to what we witnessed back in 2008 and 2009It is almost as if we are being forced to watch some kind of a perverse replay of previous events, only this time our economy and our financial system are much weaker than they were the last time around.  Without a doubt, disaster is coming.
So will we be able to handle a financial crash as bad as we experienced back in 2008? 

70% of the recent COMEX selling pressure is from short sellers of paper gold.
Should the buyers of these paper gold short positions wish to take possession of the gold, they can demand it.”  -Sentry Investments

While western markets believe the fires of inflation have been extinguished by a slowing global economy, central bankers globally are piling higher monetary kindling. Eastern investors are scrambling at the opportunity to purchase gold at these levels, and western investors will no doubt jump on board after a few-hundred dollar move (or more) higher in price.

Silver Eagle Sales & Ratio To Gold EaglesWhile owning precious metals will be a very wise store of wealth and investment in the future, silver will actually turn out to be the “King of Investment Gains.”  A good barometer of the retail gold and silver market is shown by eagle sales on the U.S. Mint.
In the first three months of the year, investors were purchasing silver eagles at an average ratio of 48 to 1 to gold eagles.  However, after the huge April 12th precious metals take-down, investors overwhelming purchased a great deal more gold eagles in percentage terms that month as the price of the yellow metal fell $200 in two days.
However, something startling has taken place in the month of July.  Investors have been purchasing silver eagles at ratio of 95 to 1 compared to gold eagles.
Investors are presently buying, nearly 50% more in silver eagles than in gold eagles in dollar terms!

Central banks remained net buyers of gold last month as seen in the IMF data released overnight.
Many emerging-market countries with considerable foreign exchange reserves continue to diversify their fx reserves, most of which are in dollars and euros, and increase their gold reserves.
Emerging market central banks have increased their holdings of the monetary asset over the past few years as the sovereign debt crises in the EU, U.S. and Japan put pressure on reserve currencies such as the Japanese yen, U.S. dollar and the euro.
Falling gold prices to their lowest levels in almost three years made gold more attractive to many central banks.
Russia, Greece, Ukraine, Kazakhstan, Kyrgyzstan, Belarus and Azerbaijan increased their gold holdings in June according to the IMF data.
Mozambique, Serbia and Tajikistan increased holdings in May, which updates as countries report according to Bloomberg.

jim sinclairOne day, the US Dollar is going to die.  And with it, a lot of people will suffer enormously.
Jim Sinclair, whatever else you may want to say about him, is one of the more experienced and knowledgeable minds in our business. PERIOD
Give the man some credit for trying to avert the coming tragedy of the many at the hands of the criminals that determine the paper prices of your physical holdings.  If you can’t stand the volatility of the markets, then sell down to your comfort level and forget about the metals.
Jim Sinclair is NOT YOUR ENEMY.  The enemy is the BANKING CARTEL!!

Are the big banks really as powerful as some people say that they are?  Do they really control the global economy?  If y0u asked most people, they would tell you that governments control the global economy.  But the campaigns of our politicians are funded by the ultra-wealthy, the big banks and the large corporations that they control.  Others would tell you that the Federal Reserve and the rest of the central banks around the world control the global economy.  But the truth is that the Federal Reserve was established by the bankers and for the benefit of the bankers.  As you will see below, at the very core of the global economy there exists a “super-entity” of financial institutions that control an almost unimaginable amount of wealth and power.  These financial institutions and the ultra-wealthy individuals behind them are really the ones that are pulling all the strings.  In this world money equals power, and the borrower is the servant of the lender.
When you follow the pyramid all the way to the top, it begins to become very clear who really is in control.

binford xlRon Paul was on CNBC Wednesday, discussing the recent drama at the Federal Reserve of whether to taper or not to taper, as well as the recent smash in gold.
When asked about his view on gold after the recent correction Paul stated: “Gold is a real good long term identifier on the value of a currency and the value of our dollar… we’re printing money faster than EVER, and there’s pretty good evidence right now there’s a shortage of physical gold.
The former Republican Presidential candidate’s full interview with CNBC on The Fed & gold is below: Exclusive By Eric Dubin

The Reserve Bank of India has launched yet another round of measures aimed at restricting the country’s massive inflow of gold.  These efforts are foolish.   Addressing the country’s ballooning current account deficit and gold’s primary impact is rather straightforward.  If they reclassify gold imports as the importation of a monetary reserve, valued at prevailing market rates, rather than as the import (“purchase”) of a commodity, the current account deficit problem caused by gold would vanish.  The global central banking community probably would throw a fit.  But clearly, a reclassification would be in the best interests of India — even their oligarchs.

© Darien Sánchez |

Banking was conceived in iniquity and was born in sin. The bankers own the earth. Take it away from them, but leave them the power to create money, and with the flick of the pen they will create enough deposits to buy it back again. However, take away from them the power to create money, and all the great fortunes like mine will disappear, and they ought to disappear, for this would be a happier and better world to live in. But, if you wish to remain the slaves of bankers and pay the cost of your own slavery, let them continue to create money.

~ Josiah Stamp – Bank of England Chairman, 1920s

It really should not be any surprise that banks, in particular – with their extraordinary power to lend money out of thin air (that’s what ‘fractional reserve’ allows) and their unlimited-duration corporate lives – are able over time to accumulate, accumulate some more, and finally end up owning everything.
While we’re not quite there yet, we are well on the way.

Recent media reports in China and Russia suggest that China is continuing to consider backing the yuan with gold. Since 2005, we have said that such a move by China was likely as China seeks to become a superpower and lessen and undermine U.S political dominance.
This decision, if taken, may lead to huge volatility in foreign exchange markets, a depreciating dollar and ultimately an international monetary crisis.
John Butler in his book ‘Golden Revolution’ and Jim Rickards in his book ‘Currency Wars’ have warned that China and or Russia could move to back their currencies with gold which would then lead to the U.S. and EU having to follow suit in order to prevent currency crises thereby leading to a new gold standard.
According to media reports, the People’s Bank of China is considering phasing out the dollar as the reference currency or peg for the yuan, and to start using gold as the reference point.

In his latest Silver Update, BrotherJohnF discusses Odyssey Marine Expedition’s latest haul- 61 tons of silver recovered from the SS Gairsoppa off the coast of Ireland- recovered in a record 3 miles below the surface.
Silver Update: Silver Salvage is below:

The pension nightmare that is at the heart of the horrific financial crisis in Detroit is just the tip of the iceberg of the coming retirement crisis that will shake America to the core.  Right now, more than 10,000 Baby Boomers are hitting the age of 65 every single day, and this will continue to happen every single day until the year 2030.  As a society, we have made trillions of dollars of financial promises to these Baby Boomers, and there is no way that we are going to be able to keep those promises.  The money simply is not there.  Yes, I suppose that we could eventually see a “super devaluation” of the U.S. dollar and keep our promises to the Baby Boomers using currency that is not worth much more than Monopoly money, but as it stands right now we simply do not have the resources to do what we said that we were going to do.  The number of senior citizens in the United States is projected to more than double by the middle of the century, and it would have been nearly impossible to support them all even if we weren’t in the midst of a long-term economic decline
Tens of millions of Americans that are eagerly looking forward to retirement are going to be in for a very rude awakening in the years ahead. 
There is going to be a lot of heartache and a lot of broken promises.

What is going on in Detroit right now is a perfect example of what will soon be happening all over the nation. 

“We [now] have confirmation that June 28th was indeed an intermediate cycle low and a yearly cycle low.  I think this yearly cycle low is not going to get violated for the rest of the bull market and I think we are starting either another C wave advance or this is the bubble phase.
Each one of these C waves is getting bigger and bigger. The last one I think did 170% from the D wave bottom to the C wave top. This one should be bigger and especially considering that in my opinion we had some manipulation in the market.
So an artificial move down should make the move up that much more aggressive and go that much further. So if the last one did 170% and the miners did a little over 300%, this one should be bigger.
We’re probably going to see 200% or more in gold and 400% or 500% in the miners if this is a C wave. If this is a bubble phase, then we’re probably going to see 300% to 400% from the bottom [in gold] at $1179 to the bubble top.