SD Metals & Markets’ Eric Dubin joins The Daily Coin’s Rory Hall for an in-depth interview discussing the latest PM takedown and the possibility a long anticipated COMEX default is looming.
Join us as we take a look at the silver market since the US Mint sold out of American Silver Eagles.
We review what has happened and the possibilities that loom around the corner.
During this past COT period we see in silver that price flat lined during the first part of the period then on Thursday evening after hours there was an explosion upwards.
This is what I call a speculator short shakeout on the part of the commercials because price had been deteriorating more than they desired. Thus, we see in the COT the large speculators covered 4,526 shorts.
Simple, dear Watson…
Both the producer merchant and the swap dealers picked up similar amounts of shorts at higher prices after the short shakeout.
In gold, we see a very similar short shakeout...
- Massive US gold exports: NY Fed stealing sovereign nations gold- Harvey states ALL CUSTODIAL GOLD AT NY FED has now been shipped to China!
- GOFO Negative & silver backwardation with huge physical premiums in Shanghai- shortage looms
- Death-blow to the dollar– Russia/China $400 B Gas deal a decade in the making is official
- Eric Dubin explains how after years of rumors, COMEX default could come this summer!
- Eric makes the case for a 50% upside move in silver coming in 6 months, while Harvey states that the cartel is nearly down to their last ounce of gold, & AN OVERNIGHT REVALUATION OF GOLD TO $4,000 WITH NO-BID SELLERS IS COMING IN 2014- PERHAPS AS EARLY AS JUNE!!
“The fun starts when the run on COMEX begins- $1.4 quadrillion in derivatives will burst in 2014 in a full-blown implosion! -H.O.
The SD Metals & Markets With The Doc, Eric Dubin, & Guest Host Harvey Organ is below:
With the price smashes of the past few weeks, the increasing desperation of the bullion banks seems palpable.
I now believe that we are truly witnessing the end of the era. We’ve all been waiting for the day when the fractional reserve bullion banking system would fail. I believe now that that day is very close. Maybe not next week or even next month but NOT 2017, either.
Sometime very soon, likely before the end of 2014.
*Editor note: With sentiment near all-time lows for the entire bull market, we thought it apropos to bring back SRSrocco’s viral, comprehensive FUNDAMENTAL ANALYSIS on the forces that will push silver over $100/oz.
PLEASE CHECK YOUR EMOTIONS AT THE DOOR AND REVIEW THE FUNDAMENTALS!
There are tremendous forces at work that will push silver over $100 an ounce.
According to the 2012 World Silver Survey, total global silver investment demand has risen from only 31.6 million oz in 2002 to a staggering 282.2 million oz in 2011. As world economic fiat based monetary system continues to deteriorate, investors are taking delivery of physical silver rather than holding on paper contracts that may not be backed by any metal whatsoever.
This has created a run on the LBMA… the largest metal exchange in the world. Once the world ‘s liquid energy supply starts its inevitable decline from its current plateau, annual silver metal production will decline as well. There will be no silver glut and there will be no silver available when the world’s fiat monetary system finally dries up and blows away.
Get ready. The forces for pushing silver over $100 have just begun.
Fundamentals for gold and silver have become the incense of reality for Westerners. The primary focus is on how many tonnes of gold China has been importing for the past many years, the depletion of available stocks from the central bankers straw men, aka the LMBA
and COMEX, the number of coins sold by various governments to the public.
People are focusing on the price of PMs, treating gold and silver as vehicles for increasing in price relative to their cost of purchase. It is the reason for buying and holding gold and silver that matters. As a consequence, attention is paid to what people think should happen to the price of gold and silver, and not on the reality of what the artificially suppressed market is showing.
Know this: It does not matter what you pay/paid for owning physical gold and silver.
Price is temporary; physical is permanent.
The warning signs are increasing as the death of the Global Fiat Monetary System approaches. The bullion banks lost 88% of their Comex registered gold inventories over the last year and are now rushing to build their stocks to satisfy future deliveries.
As the chart below demonstrates, since April of 2013, the Comex Gold Registered Inventories have declined 88% from 3 million oz to a low of 369,212 oz at the end of January.
In just the past three days, the bullion banks transferred nearly 200,000 oz of gold from their Eligible inventories to their Registered in a desperate effort to avoid default. The bullion banks only had 439,900 oz of registered gold in the inventories on February 4th. During the next three trading days, the bullion banks transferred 197,590 oz from the Eligible to the Registered category. It is quite interesting to see the bullion banks rush to add 200,000 oz while the majority of contracts standing for physical delivery in February were settled with cash.
Will the bullion banks be able to stave off a February default in COMEX gold?
Harvey Organ joins the SD Weekly Metals & Markets Wrap this week to warn of a possible February COMEX Gold Default:
- Continued decline in “registered” gold inventory at the COMEX- 2o tons of gold “kilo bars” withdrawn from JPM vaults headed to Hong Kong!
- 2014 will mark the year where physical forces deep “managed retreat” in the least
- Geopolitical and Global Macro review: From MyRA & pension fund confiscation to Ukraine & Emerging Markets
- Fed Taper Review- Eric believes the Fed will overshoot tapering to $50 billion/month, while Harvey believes Wednesday’s taper will be the last
- Harvey discusses why February may very well see strains to the point of the long anticipated COMEX default in gold!
The SD Weekly Metals & Markets with Harvey Organ is below:
Currency 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!
Ranting Andy Hoffman joins the SGTReport to discuss the COMEX and the fraud that is paper gold.
The COMEX is one very bad joke. And technically speaking, the Comex is in DEFAULT on the December contract… and the whole world knows it.
The 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!
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?
DON’T MISS THIS ONE: “We are on the cusp of something historic happening on the Comex,” says TF Metals Report’s Turd Ferguson.
In this SGTReport roundtable discussion which also includes the Doc from Silver Doctors, we examine the strange recent purchase of gold contracts with a $3,000 strike price in 2015. We cover the PROVEN Gold and Silver manipulation with the London fix, we chat about the new gold-backed crypto-currency known as e-gold, and we finish with the gripping story of the very real drain of PHYSICAL from the Comex.
According to Turd, ‘We know that for the first time anyone can remember, the US banks are net long Comex gold futures, US banks meaning JP Morgan. And net long to the point of having CORNERED the paper gold market in New York because the position is so large. I’m talking the extent of 20% of open interest. And now we’re heading into the December delivery period…
It looks like the stagnate two month bottom in the Comex Gold inventories is now over as a huge withdrawal from HSBC has taken the total warehouse stocks to a new low not seen since 2006.
173,358 oz of gold were withdrawn from HSBC’s Eligible category.
This single withdrawal was so massive that it would have totally wiped out Brinks, HSBC, Scotia Mocatta, and most of JP Morgan’s Registered inventories.
With 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.
While Jim Sinclair was admittedly several months early in calling a bottom to the current gold correction, few if any today understand the FUNDAMENTALS for gold today as well as Mr. Gold.
With gold notching its biggest up day in over 13 months Monday, trading up $40 to over $1340, Sinclair has alerted readers that the GOFO holding negative 11 days and counting is screaming the truth that that there is no meaningful above ground supply of gold.
As a consequence, Sinclair states that the COMEX will be forced to move to cash settlement for gold contracts within the next 90 days, and that the chaos resulting from the COMEX changing their spot contract settlement could result in multi hundred dollar days to the upside for gold!
Sinclair’s full MUST READ alert is below:
Gold has recovered nearly $150 or more than 12% in less than a month since hitting a three-year low of $1,180/oz on June 28th. Gold has made the strong gains due to robust physical demand as seen in the still high premiums in Asia.
Respected investor and precious metals guru, Jim Sinclair has again warned of a risk of a default on the COMEX and said that gold prices will rise to $3,500/oz and that gold at $50,000/oz is “not out of the question.”
*UPDATED 2:45pm Sunday:
A journalist on scene on Wall Street this evening has just sent us footage of a massive fleet of Firetrucks and ambulances in front of the JP Morgan Chase building, with fire-fighters stating they are responding to a COMMERCIAL VAULT FIRE IN THE BASEMENT!
*FDNY has confirmed that the fire is in a commercial vault at JPMs old HQ of 15 Broad St.
With JPM’s gold inventory plunging 66% Friday to an all-time low of 46,000 ounces, and with reportedly over 502,000 ounces still standing against JPM for the JUNE gold contract, is the long anticipated force-majeure event in progress?
Video footage on scene is below:
The Gold manipulation will continue until the Gold market is totally broken, until the big banks that control it are totally broken, or until the USDollar & USTBond structures are totally broken. Personally, I am encouraged by the mid-April events to crash the Gold price. It has resulted in exposure of the criminal element, in exposure of the COMEX & LBMA as being desperately low in Gold inventory, in exposure of the great difference between paper Gold price (futures contracts) and physical Gold price (actual high volume sales), and in tremendous motivation by the very wealthy to reclaim their Gold in Allocated Gold Accounts. The bankers have brought to the table a Prima Facie case that their corrupt Gold market attack was motivated by having no Gold for contract delivery.
The Jackass forecast is for the next great scandal to be centered upon the Allocated Gold Account thefts, which my excellent source informs me involves the improper usage, leasing, and theft of over 20,000 metric tons of Gold bullion. The German Government formal request for repatriation is the tip of the iceberg. It is a contest, a race, between the breakdown of the USD/USTBond structure and the COMEX & LMBA Gold market structure. The former is in the process of being rejected by the Eastern nations, now organized. The latter is in the process of being recognized as an empty arena with no Gold in inventory.