JB Slear Asks: Is the Paper Ratio in Silver & Gold Much Wider Than 100 to 1?

paper goldCurrency historian Andrew Gause has informed me that one of his sources thinks the ratio of 100 pieces of paper to every real contract of (1) Gold is being expanded and could be up to as much as a 400 to 1 ratio.
With 80% plus of the products gone from the Comex warehouses since April of last year, the CMEGroup no longer guaranteeing the Comex inventory count, the constant buying from Asia,  their (Singapore and Hong Kong) opening up of the warehouses that promise open disclosure,   and the total lack of trust of the USA’s government both within and without, why not?
The real answers will come in time and most likely when the bank vaults are completely empty.   What can we do as individuals?   Take delivery of Silver and Gold and get it out of the system before China and India take it all with the approval of the western banking system!  [Read more...]

COMEX Gold Stocks At Record Lows As SGE Volumes Surge 61%

EmptyVaultThe supply demand fundamentals of the gold market remain sound with the flow of gold from West to East.
COMEX gold stocks have fallen to new record lows, showing demand for physical bullion remains very robust. Indeed, the scale of the fall in COMEX gold stocks since 2007 and which accelerated in early April 2013 is important to note.
Conversely, on the Shanghai Gold Exchange (SGE), volumes surged in the year 2013, particularly since the peculiar, sudden price drop in April and volumes traded surged 61% year on year.
In addition, the London bullion market has seen intermittent shortages of 400 ounce gold bars. Traders said the shortage of London Good Delivery Bars was pushing premiums for physical delivery for 400 ounce bars as high as 50 cents! [Read more...]

Is JPM Stashing 2 Metric Tons of Gold Kilobars Per Day on Behalf of China?

What if the twenty metric tonnes of gold deposited into JPM’s eligible vault over the past two months really is 20,000 Kilobars, of the 999 fineness variety?
Why would JPM be holding, at a minimum, 20 metric tonnes of Asian Kilobars in their NY vault- could these have been acquired for a big Asian client (China)?
If so, this gives credence to the idea that JPM’s client is China and, by extension, China is the big NET LONG on the Comex, converted from NET SHORT after successfully driving price down by over 30% in the past year!
If you were buying that much gold and had easy access to smash the price first, wouldn’t you do it that way?
I’ve often stated that JPM’s verifiable NET LONG Comex gold futures position is a market corner and it gives them the ability to break and take control of The Comex at a time of their choosing.   If this position is actually China’s…well, that certainly changes the dynamic a bit, doesn’t it?
And now JPM (China) is stashing away 2 metric tonnes per day of Asian-standard Kilobars? [Read more...]

The Comex Fraud Is Growing Larger – 69 Times More Paper Than Gold

As of Wednesday’s open interest report for Comex gold futures, there were a total of 403,947 open gold futures representing 40,394,700 ounces of gold.   As of yesterday, there were 587,234 ounces of “registered,” available for delivery ounces of gold.  That’s a mind-boggling 69x times more open interest of paper gold than available physical gold to deliver to the holders of those contracts.  Think about that for a minute.  If more than 1.4% of those longs stands for delivery, the Comex defaults.
Now we know why Germany wants its gold back, why the Chinese and other BRIC countries are loading up on gold and demanding delivery and why the owners of Comex gold are taking delivery off the Comex.  The Comex is a giant Ponzi scheme.   “In paper we trust” is the motto of anyone who has a long position in Comex futures OR who safe-keeps their gold at Comex vaults. [Read more...]

COMEX Default Risk As Gold Inventories Plummet 36%

EmptyVaultCOMEX gold inventories are down from 11.059 million ounces at the start of the year to 7.034 million ounces today.  This is worth $9.66 billion at today’s prices meaning that a handful of billionaires or just one powerful creditor nation state with large foreign exchange reserves, such as Russia, could corner the COMEX gold market and cause a default. 
Russia’s foreign exchange reserves are at $508 billion . Mainland China still holds the largest foreign exchange reserves in the world, with US$3.4967 trillion at the end of June. It is followed by Japan, which had foreign exchange reserves of US$1.1876 trillion at the end of July.
The possibility of an attempted cornering of the bullion markets through buying and taking delivery of physical bullion remains real and would likely lead to a massive short squeeze which would see gold and silver surge to well over their inflation adjusted high of $2,500/oz and $140/oz.
[Read more...]

The COMEX: A Rotary Phone in a World of iPhones

COMEXIn contrast to almost every other gold analyst, I do not believe that physical gold markets will overwhelm paper gold marketsThe price-setting mechanism will remain with paper gold markets, but it will be overwhelmingly bigger Asian paper gold markets that set the price.  Not the comex!  The comex is akin to a rotary phone, in a world of iPhones.  The comex won’t blow up, but it will become irrelevant. [Read more...]

The Comex Warehouse Stock Report Fraud Clarified

Bernanke-Dimon-Fed-TunnelI realized after assessing some comments posted on my Tuesday article about the fraud going on at the Comex that I did not articulate a key point about the credibility of bank financial reporting.  It seems that there is still a contingency of people who are willing to believe that if a bank issues an accounting report, it must be valid.
Let me preface this clarification post by saying that given the long laundry list of charged and prosecuted high profile fraud cases against all of the big banks, I just assumed that everyone understood that banks can not be trusted at all.  Here’s my Golden Rule:  banks can not be trusted at all.  Fool me once, shame on you;  fool me twice, shame on me; fool me three times, I’m a moron.  Got it?
This clarification is to explain exactly why bank-produced paper reports at the Comex are more than likely riddled with fraud and it clarifies the difference between owning physical gold in your own possession vs. owning a paper claim on gold sitting somewhere else and a claim which can be hypothecated such that you actually lose legal entitlement to that underlying asset.
With that in mind let me clarify how the Comex warehouse gold and silver stock reports are produced. [Read more...]

*Breaking: The Comex Confirms That Its Gold and Silver Inventory Reports Are Fraudulent!

“The information in this report is taken from sources believed to be reliable; however, the Commodity Exchange, Inc. disclaims all liability whatsoever with regard to its accuracy or completeness.  This report is produced for information purposes only.”

[Read more...]

Texas University Sells $375 Million in Gold Bars…to Re-Invest in Gold Futures!

jump into fireTwo years ago, Texas University shocked the gold community by taking delivery of $1 billion in physical gold from the COMEX, under the guidance of Texan hedge fund titan Kyle Bass.
Bloomberg reports this morning that the University’s Endowment fund has just liquidated $375 million of its physical gold position over the past 3 months, and will plow the proceeds…back into the PAPER GOLD FUTURES MARKET (along with general equities).
Nothing like identifying a coming trend and getting out of Dodge in time…just to come running back and jump into the fire when the game actually starts heating up!
Somehow we suspect that Mr. Bass was not consulted on the University’s latest financial decision… [Read more...]

Silver Shortage Intensifying, Will Result in a Buying Panic

When it comes to real physical “hold in your hand” metal, there is NO ONE selling.  If no one is selling then how is it that the price could go down?  …COMEX and LBMA!  The paper markets, that’s how.  Paper contracts that are “sold” with no Silver, no Gold backing them AND no intention of ever delivering have hit the markets to knock prices down.

This “strategy” however, has spawned the unintended consequences of increasing demand for the real thing.
The recent US Mint shutdowns and premium spike in 90% silver is the looming “shadow” of shortage and as long as the “price” in the paper markets have JP Morgan’s boot on its throat, the shortage situation will continue, get more acute and ultimately blow up in a buying panic…exactly what JPM has been trying to avoid at all costs!
[Read more...]

Gold Run? 43 Tonnes of Gold Stand for February Delivery on 1st Notice Day

empty COMEX vaultToday was first notice day for February delivery in gold, and as usual, we had a waterfall raid in gold to $1655.  The cartel MO has long been to raid gold and silver on options expiration as well as first notice day, to help prevent longs from standing for delivery.

While the the cartel raid was successful based on the paper futures price, it was an epic fail based on physical gold delivery requests, as a monumental 1.391 million ounces, or 43.26 tonnes of gold stood for delivery today on first notice day

To put this number in perspective, December delivery in gold, which is traditionally the largest delivery month of the year, saw less than 10 tonnes stand for delivery. 

Has the Buba’s gold repatriation request ignited a full-fledged run on the cartel gold bank? [Read more...]

18.3 M oz SLV Deposit & JPM’s New Silver Vault: JPM Discovers Way to Bypass COMEX Re-entry Process

shell-game1Submitted by AboutAG:

Why Was 18.3Moz of Silver Deposited into the SLV Jan 16th?

The obvious answer is “JPM opened a new warehouse!”.
However, that does not answer the question, as only 10 Moz went into their new warehouse.

The experts seem to agree that one of the most plausible explanations is that JPM closed out their short position in SLV.
One or more people have 17,016,600 shares of SLV short (about 16,458,115oz) at last count (which could be a couple weeks old). It is believed that JPM is likely responsible for much or all of that short position. The unexplained addition of 17,410,210.4oz to SLV (remember, 967,881.6oz are considered a ‘normal deposit’) would cover the entire short position and then some. Or if another 967,881.6oz (1M shares) were a normal deposit, that would leave 16,442,329.4oz unaccounted for, almost exactly matching the short position.

It appears that JPM has found a way to bypass the COMEX re-entry process, making the transfer of bars from SLV to COMEX and vice-versa extremely simple.
[Read more...]

Year in Review: The Top SD Stories of 2012

20122012 is almost in the books.  That means its time for another review of the year’s top stories on SilverDoctors.

The most important and most popular SD Stories of 2012: [Read more...]