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gunPrecious Metals Fund Manager Dave Kranzler joins the show this week to discuss:

  • Cartel capping gold at $1300 and silver at $20
  • London silver fix to end in August after 117 years- is the end of the silver manipulation at hand?
  • Kranzler discusses the Smoking Gun on The Fed’s money laundering US Treasury purchases through Belgium
  • We break down Ted Butler’s claims that JPM is buying all the Silver Eagles- is Jamie Dimon suddenly attempting to corner the ASE market, or is the American public finally waking up?

The SD Weekly Metals & Markets With The Doc, Eric Dubin, & PM Fund Manager Dave Kranzler is below:

 

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“We have not seen gold just as money, it is related with all aspects of our social life. We have always attached the term ‘gold’ with anything good in our life. In our society, gold is connected with security, respect and a friend in need during hours of crisis. It is also related to the well-being of our daughters through exchange of the matter during marriage times. After a doctor, the goldsmith is the most trusted man in the family.” –  Narendra Modi, India’s Bharatiya Janata Party (BJP) Leader and Majority Victor of this week’s Indian Election

# # # #

If it wasn’t for Bloomberg News taking the Federal Reserve to court over the Fed’s failure to comply with freedom of information act requests, the world would never have learned about gargantuan credit swap lines opened up with the ECB following the 2008 crash.  Truth is, outside the Fed’s marbled halls, no one really knows how large these swap lines ultimately were, nor what relationships exist today.  But we’re talking about tens of trillions of dollars.  That’s right.  Tens of trillions of dollars.  Compare that to angst over the official Federal Reserve balance sheet bloat of $4.3+ trillion.  With this ocean of liquidity as context, Metals & Markets reported weeks ago about Belgium’s highly suspect treasury bond purchases.

The latest Treasury International Capital (TIC) report shows the pattern continues.  Dave Kranzler and Dr. Paul Craig Roberts reviewed the data and published must-read articles this week.  Click here and here.  Notice the sudden change in Belgium’s purchases in yellow after many months of relative stable inventory:

Belgium’s economy is relatively small.  It’s pretty much inconceivable to see this leap higher in bond treasury holdings based on Belgium-based funds.  It’s not as if a handful of skyscrapers in Antwerp were sold and the government parked the money in US treasuries.  Tune into the show for Dave’s analysis.  The Fed killed the reporting of the money supply aggregate M3 a few years ago.  Maybe the Treasury’s “TIC” report is next?

 

As expected, Narendra Modi, the pro-business leader of the Bharatiya Janata Party (BJP) swept India’s election.  This is a major positive for the gold and silver market.  But naturally, as has been the case with nearly all precious metals bullish events over the last decade, gold and silver were taken down on raids Thursday and today.  The counter-intuitive price action in the face of bullish international events has a correlation even greater than take-downs on non-farm payroll releases.  It’s simply astounding, and arguably demonstrates the importance the cartel places on attempting to destroy any notion of gold and silver serving as safe haven or acting according to historical norm, per the days when it wasn’t seen as a “barbarous relic.”

It’s important to set this price action against the context of the latest real estate data release, and who better to turn to than Dave Kranzler given that he’s been spot-on about the real estate market for months.  Kranzler was quoted in Bill Murphy’s newsletter today:

“What makes the hit on the metals even more absurd is that if you drill down below the ebullience of the headline reports for housing starts, the line-item numbers are extremely bearish. More on this later.

The metals started selling off 10 minutes before the Comex opened, the big hit occurred right at the Comex open and then again when the housing data was released.

For the time being, $20 silver and $1300 gold are being defended with great force.  But the good news is that a huge amount of money is sitting on the sidelines, ready to be employed by buyers once silver dips to $19 and gold dives to sub-$1280 levels.  These “smart money” buyers know what the Fed and Treasury are doing.

Click here if you’d like a two week free trial to Bill Murphy’s newsletter — and no, he’s not paying us for the plug.  It’s a great letter.  While I’m in plugging mode, Dave Kranzler will be publishing research reports on mining companies and special situations, offered on an à la carte basis.  It will be nice to have additional research perspective.  He should have the offering up and running soon at Investment Research Dynamics.

For additional weekend reading, I recommend clicking here for a flashback to an insightful Indian press article on Narendra Modi and BJP perspective on gold.

On a final note, the CME lowered gold and silver COMEX trading margins yesterday.  Makes you wonder what that Reuters story about placing trading bands on gold and silver given fears about high volatility was about…

Have a great weekend — Eric Dubin, Managing Editor, The News Doctors

 

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  1. Decreasing margin is consistent with imposing daily percentage move limits.
    CME lowered margins to increase their depleted trading volume. Volume has decreased as bona fide investors abandon this undeliverable sham exchange to the algos.
    CME needs more trading volume to control price, just like they need to cap price moves (upward) to control price.
    As as been mentioned here before, I think this daily price percentage limit is very indicative of what’s coming, as they would never put these limits in place if they felt they could continue with impunity to bang the price down 5% in a day….

  2. Dave from Denver is one of the best essayists out there, right along with PCR ,Bill Holter and Alistair Mc.  
    Great ‘get’ Doc.
    There’s only one thing larger than the Fed off book transactions and that’s the MOPE spun to baffle the viewers.  
    Maybe more than one thing larger, but when things get serious, LIE.
    When it comes to the Fed  < sellers are yellers; buyers are liars >.
    I can’t wait until the day of reckoning, when all the liars are outted.
     If a banker breathes, he lies.  If he lies, he  dies.

    • @AGXIIK
       
      “Maybe more than one thing larger, but when things get serious, LIE.”
       
      With this crowd, lying is what they do ALL of the time.  If it’s serious, they lie.  If it is not serious, then they lie just to stay in practice for the time when it is truly needed.  In ancient times, lying was cured with either a blade or a hot piece of iron.  That was incredibly effective, as those so treated NEVER lied again.

      Oh, don’t leave Andy Hoffman off that list of uber-posters. :-)

  3. Anyone who believes that we are winning because the silver fix will no longer exist after August has got to be walking through life with their eyes closed. TPTB can do ANYTHING they want. The rules are for us and subject to change anytime THEY say so. For example on January 7, 1980, COMEX changed its rules. Investors were limited to 10 million ounces in futures contracts, and any amount above that had to be liquidated by Friday, February 18.

    TPTB hate silver and gold. This info tells how they destroyed 1/2 of the world [who was using silver at the time for money] and also caused the crash of 29 by killing silver. It looks like this group is so powerful that they get what they want when they want it.
    Here are the links…
    http://silverstealers.net/tss.html
    lots of info here… http://www.nosilvernationalization.org/

    Rome too had financial woes. But let me ask… “How long did it take Rome to lose power and fall? Google it. You won’t like the answer because you will not be alive when the USA loses power if it follows the path of Rome. So we can hold on to our silver and stack on – but it may be a longer wait than any of us anticipated.

    • I hear ya on ROME… and in some ways the empire still stands. 
      Look at the old British Empire as well! It is still going, covertly, thru the IMF and shadow bank$ter system.

    • “TPTB can do ANYTHING they want.”
       
      Yes, they can.  What they cannot do, of course, is control the results of their actions.  Those can and likely will spin out of their control because they are building an unsustainable system that WILL collapse one of these days.  I agree that we do not and cannot know when that will occur… but then, neither can they.
       
      “But let me ask… “How long did it take Rome to lose power and fall? Google it. You won’t like the answer because you will not be alive when the USA loses power if it follows the path of Rome.”
       
      True, but we are Rome on steroids… MUCH bigger, stronger, faster… and in a LOT more financial trouble than they ever were.  If it took them 400 years to collapse, well, heck, I’m sure that we can do it in HALF that time… a lot of which has already passed.  We’ve managed to reduce the value of our currency by about 97% or so in only 100 years.  Now, is that an over-achieving society or what?  :-/
       

    • It is hard to speak about the Roman Empire without looking before and after the split into the West and the East.
      The Empire may have lasted only 400 years in the West, but the East did not disappear; it became the Byzantine Empire which lasted until it was finally overrun by the Turks in 1453. The Byzantines were known for their good coin especially after Constantine I made Byzantium his capital (such was necessary for trading). While the united Empire had begun to debase their coin long before the split, he order it to standards which were kept until the Turks defeated them a millennium later. The West however, due to corruption, political infighting and continuous wars continued to debase their coin until it was essentially worthless. The West debased their money much, much more than we have already, so we still have a long way to go …. still, people saw what had real value and what did not.

      There is a moral in this if you look.

    • @Cyberspace Void
      Facts and Figures, Please! 
      We went off “real money” which was really a 100% devaluation right away, in a sense. 
      When we inflated this funny money, even more debasement. I’ll argue further, that when 
      Gold reached $1921/oz in Sept 2011, we were screaming towards one cent on the dollar 
      had it not been smashed back for the last 3 years. Using that as a jumping off point, 
      (as in extrapolating towards the REAL value of the U$D) I believe we are well under a 
      true value of fractional cents of the U$D! This is not even considering derivatives. 
      With derivatives, I guarantee our F’ed Reserve makes the Romans look like school girls in this arena…

    • @Ed_B
       
      97% debasement only if you buy into the “official figures”. 
      Just figuring it against GOLD alone, 98.4% of the U$D value is gone. 
      Plus, we know GOLD is suppressed heavily, and “dollar” figures are 
      under reported, so IMO our currency is debased MORE THAN 99% !
      Not too hard to see that this is likely the real truth!

      Fully Agree with the rest of your statement, BTW.
      Steroids :D

    • @undeRGRound
       
      “97% debasement only if you buy into the “official figures”. Just figuring it against GOLD alone, 98.4% of the U$D value is gone.”
       
      Split all the hairs you want, RGR, the bottom line remains the same.  The US$ is f***ed… and so too will be they who bet their economic future on it.  Hence, the desire to stack something that won’t just be inflated to zero one of these days like all the other fiat currencies either have or eventually end up doing… and for virtually the same reason: the inability of those in charge to resist printing it to greater and greater excess until it becomes worth less and less and eventually zero.
       
      @Cyberspace Void
       
      “It is hard to speak about the Roman Empire without looking before and after the split into the West and the East.”
       
      True, but my comment was more of a generalized statement and not one of exactness.  MANY parallels can be drawn between the fall of ancient Rome and the path that the US is on currently.  No, they will never be exact but they can be and are similar in many ways. Debauching the currency seems to be one of the primary problems with empires and their endurance as social / cultural / military / political entities.  The Western Empire of Rome certainly did that.  I don’t know that they removed 98% of the silver or gold from their coins but they might have.  At some point in all that metal dilution, the appearance of the coins become very different; obviously not the same.  The people become aware of this and inflation sets in as more coins of lower precious metal content are needed to buy the same amount and type of goods.  Taken far enough, both citizens of the country debauching their currency and those in other countries who trade with them give up on the currency and no longer accept it.
       
      “There is a moral in this if you look.”
       
      Indeed there is… and as a member in good standing of the Awake And Aware (AAA), I am always looking for such things. I generally find them as well.
       
      Thanks for the comments on the history of that time and region.  I know a little of that but additional facts are always welcome and appreciated.  :-)
       

    • @MaryB
      In finance it was commonly quoted in the past that the Asians plan 50 years in advance, the Europeans 20 and the US the next quarter. It is an over simplification of course but it is generally true as you have indicated.
       
      @Ed_B
      The Romans’ most common silver coin was the denarius (averaging 4.5g of silver or about two US silver dimes) which content was stable for 150 years until the Republic period ended (note: The Bible refers to the denarius as a day’s wage for a common laborer) … debasement ensued soon after the appearance of the Empire. At first it was just a slight drop in silver content as that was easy to hide. Eventually it was called billon when the drop in purity was obvious, but that was not the end of the deceit. Next came the follis which was a base metal coin covered in a thin foil of silver. Finally even this was too much and coins with a silver wash were produced by the Roman mints. Of course they didn’t call all of these coins by the same name …. a little razzle dazzle muddles the water and makes it harder for the public to compare.

      Interesting enough, the denarius was the same as the original English penny, thus the abbreviation “d” used in denoting English coins.

    • @Ed_B
       
      You say splitting hairs, but what I am really saying is that the “official” figures you are citing 
      are overly optimistic! Just figuring against the “official price” <sic> of Gold alone, the stated 
      value of the Dollar is $.014 which is half the official “value” and by considering just simply 
      all of the monopoly money “created” by the F’ed Reserve we are well into the fractional cents range. 

      I’m at a guesstimated $.001-.009 range at this point, more like the middle of that range and lower.
      Then we can make it really ugly, figure in manipulation of PM prices and notional derivatives,
      but when the true money supply is accounted for, PM prices would be higher,automatically, so
      I’ll not change my figures. Now here’s the kicker, if the U$D is ever kept around by TPTB long enough
      to socialize these derivatives, the last solid numbers I had seen (backing up to a different measure)
      Gold Value would be in the $57,000 to $6x,000 range, and it was increasing as the criminal bank$ter$
      were piling it on. Let me just round it up to a nice simple number, $100,000/oz Gold. Now compare
      that to $20/oz Gold, and doing the math, that leaves us with a true Dollar Value in Gold Standard Terms, (pre-1933)
      of… Wait For It, :D
      $.0002 or 2 hundredths of a Cent! 
      So in reality, what you called Splitting Hairs was in reality a factor of at least 2 to 1, (split a hair in half, OK!) 
      but possibly up to 150 to 1! This current shell game TPTB is playing, however, allows us time to buy with “money” 
      which has not felt even the proper price discovery effects, yet. Thankfully, derivatives have not “done their thing” 
      yet, and even if they do not, “Golden Jackass” has our U$D at a very healthy $.006 valuation. Meaning the “official” 
      figures are off by a factor of 5. 
       
      Yes, we are F’ed by the F’ed Reserve but the question is how hard, and do we get lube??? ;)
       

    • PS: Hence my comment that those nasty old Roman emperors 
      ain’t got NUTHIN’ on our criminal bank$ter$! Not Even close!
      It just is not all revealed, yet. 

    • @undeRGRound
       
      “You say splitting hairs…”
       
      Yes, I do and I stand by it because whether one uses your figures OR the “official figures” one still ends up in exactly the same place… which is to say screwed, if one places their future in the hands of these currency printers.  Those of us on here, by and large, choose not to do that and we don’t much care which figures are used.  It’s a bit like a room with 2 doors.  You can go in this one or that one but… you still end up in the SAME room.  Now, if one set of figures resulted in a different outcome, then it would not be splitting hairs as to which figures one used.  ;-)
       
      “Yes, we are F’ed by the F’ed Reserve but the question is how hard, and do we get lube??? “
       
      Let me venture a guess and say that, NO we do not get lube because lube costs good money and they will not be willing to ease ANY of our suffering at their own expense.  As to how hard, let me further guess “as hard as they possibly can!”.  :-/
       
      @Cyberspace Void
       
      “Of course they didn’t call all of these coins by the same name …. a little razzle dazzle muddles the water and makes it harder for the public to compare.”
       
      Which is pretty much always what politicians do… this is why we now have something called “Quantitative Easing” or QE, rather than its true name of “money printing”.  The Fed spokes-mouths all swear up and down that QE is not money printing but then they have been known to be wrong and also to lie, so their comments need to be considered carefully before being taken as facts.
       
      Yes, I knew about the denarius but found it interesting that the lower case “d” came from it in conjunction with English money.
       

    • @sam520

      “TPTB can do ANYTHING they want.”
       
      Thats absolutely ridiculous and dangerous and only the most brainwashed of government boot lickers would even consider saying such a thing. TPTB can only do what you let them. Can they come to your house and **** your wife and daughter? Would you let them?  The answer for 99% of the population is “NO”. The population simply needs to engage its will and TPTB’s “power” evaporates overnight. Soviet Union style. BTW, the Soviet Union lasted about 70 years, yet was the first to space, the first to make nuclear power, etc.
       
      “For example on January 7, 1980, COMEX changed its rules. Investors were limited to 10 million ounces in futures contracts, and any amount above that had to be liquidated by Friday, February 18″
       
      People playing the paper markets, yes, but the owners of Physical had no such obligation.  So what you are describing is far from “god like power” and much more like some pathetic street corner game of 3 card monty. The dealer winning the 3 card monty is not “god”, he is a petty crook.

    • SeanKelly … “The dealer winning the 3 card monty is not “god”, he is a petty crook.”
       
      Sean, I’m solidly on your side of the fence. Government and its banking agents operate 99% on … image and illusion. As soon as one discovers how to solidly impose … reality … on these f’ers, their Shadow Puppet screen falls away, revealing nothing more than two-dimensional cutouts. The whole damned thing is paper and words … from their ‘law’, to ‘finance’ and ‘economy’. Nothing but 100% contrivance.

    • @Ed_B
       
      If you consider that we are down to (in terms of U$D valuation) a “hair” of what it used to be, 
      then YES, I am splitting hairs. Agreed. But we will see just how far they can split it, and it is 
      pretty much limited only by the available time and their crooked, crusty, corroded imaginations… 
       
      I get our point now. I just see that TPTB still has room to “split” 

    • @undeRGRound
       
      No doubt that they will take it to the bitter end.  It’s not that they are not smart.  They would have to be to keep this ridiculous fiat paradigm going for as long as they have.  But they are using their smarts in a way that is absolutely counter-productive… not only for us but, in the long term, for them as well.  Yes, they do have room to split some more but that room is shrinking.  There will come a time when they can no longer do this and that will be when the collapse comes.

  4. Like Mr. Kranzler, I’m not excited by the ‘end if London silver fixing’. ‘They’ have the OTC market in which that ‘fixing’ can be occluded … as well as gold, I might add.

    In further agreement, I concur that the more logical source for ASE demand is an awakening general population. THAT’s especially encouraging in conjunction with the regular thinness arising in ‘junk’ coin demand.

  5. MONEYTALK with Bob Brinker just had 2 calls in a row about burning SD topics (at least 1 current and one past)
    London Whale was discussed, the caller asked who was on the other side of the losing trades (ie. the WINNER) and 
    Brinker said we usually never find out, and prolly won’t… he would not speculate. OK, I’m fine with that. 
     
    Next, a caller was on point about THIS TOPIC, the bond laundering thru Belgium, and asked if it was the FED and 
    (shill-mode) Brinker said he refused to be a “conspiracy theorist” and RULED OUT THE FED (using NO FACTS, btw!) 
    and said they are not lying to the US Public and doing extra QE thru Belgium. HE DID, However, sat that the purchases 
    through Belgium were most definitely a “laundromat” and repeated it 3 times! But the FED is not doing it. 
    Just like the London Whale trades, he punted. But he categorically denied it is the Federal Reserve. 
     
    He has NO BALLS on these questions, and every, I mean EVERY TIME I tune in to his show, he gets at least one 
    question like SD covers, and every time, he refuses to allow that our F’ed Gubment could have even a shred of involvement. 
     
    All this guy really knows is tax mitigation on investments, and it seems he knows it quite well. 
    But for the questions he airs, totally outside his area of expertise, this seems to fit  :D
     

    • I stopped listening to this guy years ago.  Oddly enough, that was at about the same time that I started stacking.

    • Maybe so, Ranger, maybe so.  We know that it IS coming but we have no clue as to when it will arrive.  Reminds me a bit of pregnancy in that regard.  Problem here is that there won’t be any proud papa claiming paternity and mama is more than a bit of a tramp. 

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