As the increasingly volatile stock markets bounced back higher today, JP Morgan experienced one of the largest withdrawals of gold from its inventories this year. In just one day, a stunning 321,500 oz of gold (10 metric tons) were removed from JP Morgan’s Eligible inventories:
“GOLD HAS NO USEFUL PURPOSE TO SERVE IN THE POCKETS OF THE PEOPLE”—Pilgrims Society member Alan Sproul, president of Federal Reserve Bank of New York, addressing the anti-precious metals American Bankers association meeting in San Francisco.
According to the financial media, the global economy is supposedly rolling over causing a glut of inventories producing a deflation in the prices of many commodities. If this is the case… someone should tell that to King of base metals… Copper.
Something doesn’t seem to be making sense in the copper market as the price continues to decline, so are the level of global copper inventories. You would think the opposite would be the case, but we must remember in the new Financial Paradigm — Paper assets such as Derivatives, Stocks and Bonds are KING, while Gold-Silver and commodities are GARBAGE.
If we look at the chart below, we can see a very interesting trend taking place in global copper inventories. Not only are we are near record lows, we are down to less than five days worth of copper inventories:
Ever since the world suffered a near collapse of its economic and financial system in 2008, investors around the globe have purchased physical gold in increasing volume. However, if you lived in the United States… the opposite is the case.
Not only did Americans purchase less gold, they ranked DEAD LAST on the planet.
The Federal Reserve created false demand for real debt created by the Treasury…and now the Federal Reserve wants to pretend it can step aside for a real buyer somewhere out there for all this debt.
After the recent price smash in silver, investors purchased a record amount of Silver Eagles. In the past week, the U.S. Mint sold a great deal more Silver Eagles than it did during the same time period in every other month of the year.
Not only are first week sales of Silver Eagles stronger than any other month, they have already surpassed the total sales in the month of July and August!
The best time to buy Gold or Silver is anytime before the Financial System collapses.
The day after… will be too late.
The Primary Silver Mining Industry continues to suffer from manipulated low metal prices.
The miners produced 37% more silver only to see their total revenues decline while their adjusted income fell an amazing 88% over the past two-years.
And remember… this was at an average realized price of silver at $19.89.
Can you imagine what the losses will be at $17??
We all know that the end of COMEX price rat-holing of gold and especially silver has a more limited life now than ever before.
Have you wondered what will be the response of the President and Treasury Secretary might be to a silver default?
Something is brewing in the gold market…
The market has reacted to the big drop in the paper price of silver by a huge increase in Silver Eagle purchases.
September was turning out to be a much stronger month compared to July and August even before the last update of the month.
On Monday, the U.S. Mint reported 3,375,000 sales for the month.
Then this evening, I checked to see if they had updated their figures.. which they did in A BIG WAY.
The values of gold and silver would be substantially higher if it wasn’t for the massive derivatives market. Americans have no idea that the Derivatives Monster destroyed the ability for the market to properly value physical assets, commodities and the precious metals.
Without the Fed & Cartel Bank market rigging, a Dow Jones of 6,000 would mean gold would hit $6,000 (at 1980 Dow-Gold 1/1 ratio) and silver would reach $272 (at 1980 Dow-Silver 22/1 ratio).
The financial markets today are riding on FUMES. There is no way telling how long the FACADE can go on, but with tensions between the West & East increasing significantly, we may see fireworks sooner than later.
At some point, the BRICS will pull the plug on the GREATEST PAPER PONZI SCHEME in history, making gold and silver some of the best assets to own.
As the manipulated paper price of silver heads lower, so are the silver inventories as the Shanghai Futures Exchange. The silver stocks hit an all-time low today as the price of silver trades in the $17 range. At the peak, the Shanghai Futures Exchange held 1,143 metric tons of silver. However, today only 7% of that record amount remains.
As we can see from the chart below, silver inventories declined from a high of 575 mt (metric tons) in February, to a low of 81 mt today.
While it’s true that the entire financial system is rigged today, some markets are manipulated more than others. This is certainly true for the precious metals… particularly SILVER.
This metal is the whipping boy of the Fed and Cartel Bullion Banks. Most would believe it’s impossible to manipulate a metal for decades… it isn’t.
If we look at the two charts below, we can see just how much more of a beating silver has taken compared to copper over the past 3 years:
There is a chart that every silver investor needs to see. Especially now, as the Fed and Central Banks continue to manipulate the precious metals lower while propping up the broader stock and bond markets. Even though precious metals sentiment is at record lows, this normally represents a turning point in the gold and silver markets.
Silver Eagle sales held up much better than Gold Eagles in 2014. According to my year-end estimates, 2014 Silver Eagle sales will only decline 13% year-over-year, while Gold Eagle will fall 45%.
Now… let’s get to the chart I believe every silver investor needs to see:
The U.S. Empire is in real trouble.
While it’s true that the gold and silver market have taken a lot of punishment over the past several years, there’s a good reason China, India and Russia continue to add to their gold hoards.
The day will come when an AVALANCHE of countries exiting the Dollar will finally destroy its value.
Unfortunately, the majority of Americans holding onto paper assets will be the last to know when this occurs, while precious metal investors saw it coming….. much later than they anticipated.