Submitted by SD Contributor SRSrocco:

THE RETAIL INVESTOR GETS BAMBOOZLED AGAIN

As we can see from many sources, the BIG PLAYERS have increased their gold and silver purchases lately, while the RETAIL INVESTOR cuts back.  This is typical.  I hate to say it… RETAIL INVESTORS are DUMB as a BOX OF ROCKS.  What has happened is that the public has been put into a trance by MSM that this CHARADE will go on forever.  They now believe that the FED and Central Banks can just keep kicking the can down the road until they retire or die.

Some think that the decline in SILVER EAGLE purchases are due to the downturn in the economy and that silver is now in SURPLUS.  So, the rational is that silver will fall during a DEFLATION.
While this is true when Gold and Silver are not considered money, it is not true at the end of a FIAT MONETARY SYSTEM.

Moody’s has just dropped the long-awaited hammer on the US banking sector, downgrading JP Morgan, Goldman Sachs, Citi, Morgan Stanley and Bank of America among 15 total banks!

 

  • Morgan Stanley slashed 2 notches- just avoiding triggering $9.6 Billion in margin calls had it received the 3 notch cut!

  • 10 banks slashed 2 notches

  • JP Morgan cut from A2 to Aa3, outlook negative

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The post FOMC raid in gold and silver continues to intensify, with the raid now smashing silver under $27 near it’s major triple bottom at $26.77.
We fully expect the cartel to attempt to smash silver below it’s major support at $26 in the hopes of triggering another massive decline. Physical buying likely may prevent the cartel’s success however, as there is MASSIVE buying that will occur with any dip into the $25′s.

It appears Ghana is the first nation to follow Venezuela’s lead and withdraw its gold reserves from the Western Central banks.
Ghana appears to be more concerned with Eurozone contagion risks than gold rehypothecation, but none-the-less we are talking about physical gold bullion leaving the LBMA system en masse.

Live 24 hours gold chart [Kitco Inc.]As has been the pattern after every recent public appearance by The Bernank (and as pointed out by Eric Sprott in our recent interview), gold and silver sold off hard overnight, and the sell-off has intensified with today’s COMEX open.

Silver is down another 2% on the day to $27.41, and gold has traded as low as $1579.
At this point it looks likely that silver will test the bottom of its large wedge formation near $26.50.

The Russian central bank has again increased its gold reserves by 500,000 ounces.

Bank Rossii announced that it had increased gold stocks in its international reserves by 0.5 million troy ounces to 29.3 million troy ounces in May from the end of April.

Russia’s gold and foreign exchange reserves declined to $512.2 billion in the week ending June 15 from $512.4 billion a week earlier. Russia’s reserves remain very sizeable and have increased in 2012 as they were at $498.6 billion at year end 2011.    

Financial guru Max Keiser speaks with Patrick Henningsen from Infowars.com in London, about financial terrorism, the Euro crisis in Ireland and Greece, and chronicles the devastation of JP Morgan’s balance sheet by a new and emerging “Silver Liberation Army”, led by Mexican billionaire Hugo Salinas Price.

Welcome to Capital Account. Let’s twist again…like we did last September. The Federal Reserve announced today that it will be extending operation twist — it’s effort to twit the yield curve and keep long-term interest rates low by selling short-dated securities and buying long-term treasuries. It’s just more free market arm-twisting, and the Fed says it’s willing to do more. Sounds like more threats!

And whales have been popular, but what about “operation humpback whale…” What is this? Well, how ‘about the Fed buy both the long, as well as the short end of the curve, and sell a bunch of the bonds in the middle? We’ll float that idea to our guest Jim Rickards. He believes that the same force behind too-big-to-fail banks that is driving anti-competitive behavior on Wall Street is also responsible for driving monopolistic practices in government.

The paper shuffle continued in HSBC’s vaults Tuesday, as HSBC moved a 1,000 ounce bar to Brink’s, and also reported a separate 543,000 deposit.

Is the physical silver supply so tight in the COMEX right now that the cartel needs to play 3 card monte with a SINGLE 1,000 OZ BAR OF SILVER!?!

COMEX WAREHOUSE SILVER INVENTORY UPDATE 6/20/12

While the market is fixated on $267 billion in TWIST but no new QE announcement, the G20 has proposed a £600 billion bailout for Spain & Italy.

The will he or won’t he QE debate is meaningless.  The Western Central banks will print unfathomable amounts- when it is required.
They can pretend it is not currently required, but delaying the implementation will only require a bigger counterfeiting gun when the time comes.

European leaders are poised to announce a £600 billion deal to bail out Spain and Italy, it emerged at the G20 summit on Tuesday night.