indian silver demand

In 2013 when the paper price of silver dropped off the proverbial cliff from $32 in February to under $20 by June, Indian silver demand increased dramatically.
Not only was 2013 a robust year for Indian silver imports…. at a staggering 5,819 mt, it blew away its previous record set in 2008 at 5,049 mt.

gold & silver sold out

The U.S. Mint had to suspend sales on November 5th due to its inventory being totally wiped out. 
The Royal Canadian Mint also put the sales of its Silver Maples on limited basis due to high demand as well.

If the Royal Canadian & U.S. Mint have difficulty now trying to meet demand for the 2-5% of public demand… what happens when the GREAT RUSH INTO GOLD & SILVER BEGINS??

silver bars

There was a huge development reported in the silver market last week as the GFMS is reporting SIGNIFICANT DRAWDOWNS of UK silver inventories:
With imports in the first ten months totalling a massive 169 Moz many vaults in the UK, traditionally the largest supplier to India, have seen significant drawdowns.

A drawdown of U.K. silver inventories may mean a REAL ACTUAL TIGHTNESS of wholesale silver (not retail) in the future. 

silver production

The GFMS is predicting that the official arrival of PEAK SILVER will occur in the next 2-3 years. 
Meanwhile, a draw-down of LBMA silver inventories may be the beginning sign of looming future physical delivery problems.

Official-Central-Bank-Gold-Demand

Something BIG changed after the collapse of the U.S. Investment and Housing Markets as a huge crack in the Fiat Monetary System took place.  After the world nearly disintegrated under the debt-based U.S Dollar system in 2008, some of the Central Banks of the world finally found MONETARY RELIGION.
At this time, and according to some of the more enlightened Central Banks, gold was no longer a worthless piece of metal whose sole purpose in government was to be pawned off to support a worthless paper monetary system.
In just a few years time, the huge flood of Central Bank gold into the market dried up and switched to become a large source of demand.

Yen-Gold

Since Japan’s December 2012 turn to “Abenomics”, Gold and the Yen have moved tick for tick. 
The more Yen Japan prints, the farther the price of gold fallsahhhh the irony that gold, the finite measuring stick of infinite currencies, seems now only to be measuring the depths TPTB will go to hide currencies relative worth!
Note in the chart below the relatively mild dollar movement vs. the strong correlation of gold vs. the Yen…particularly gaining strength since the onset of “Abenomics” in late 2012:

srsrocco

The amount of leverage in the U.S. Dollar fiat currency system reached an all time high in 2013.  Even though the growth in total U.S. currency more than doubled since the collapse of the Housing and Investment banking system in 2008, the majority of the increase was from just one bill in particular.
U.S. Department of Engraving and Printing issued more $100 Federal Reserve Notes in 2013, than in any year prior.
The total face value of the $100 bills printed in 2013 were $443 billion, the cost was just a mere $580 million… basically one-tenth of a percent of the cost of the face value.
If we extrapolate this further, at the current price of gold (including Friday’s HUGE MOVE UP) of $1,170 an ounce, it would take twelve $100 bills to purchase an ounce of gold…. with a little change left over.
However, if we compare the costs below, we can see owning PHYSICAL GOLD is a much better and safer deal when the Fiat Monetary FAN finally hits the COW EXCREMENT:

JP Morgan only has 577,937 oz of gold remaining in its vaults.   A few weeks ago, JP Morgan experienced a ONE DAY removal of 321,500 oz from its warehouse stocks.   This is not a trend JP Morgan can afford to continue.
Furthermore, total Comex gold inventories fell nearly 2 million oz since its high of 10 million ounces at the end of August.
This is a 20% decline of total gold warehouse stocks in just three months.

China gold

Chinese gold investment demand increased more than five times in 2013 compared to 2008, yet even the chart below doesn’t represent the true increase.
If we assume that total Chinese gold demand in 2013 was double the figure put out by  World Gold Council, we can assume that physical gold bullion investment demand was probably more like 700-800 metric tons, and not the 400+ mt.
Which means 2013 Chinese physical gold investment demand is probably 10 times greater than what it was in 2008.
It’s hard to tell if the World Gold Council underestimated other regions or countries, but I highly doubt Americans increased physical gold investment demand as the majority of U.S. citizens are still brainwashed into believing DIGITS in a bank or brokerage account is wealth.

SILVER-RUSH

Investors snatched up a record number of Silver Eagles as the paper price was manipulated to new lows today.  This is a very strange market phenomenon, as several “Official” analysts forecasted a drop or sell-off of physical metal if the price continued to decline.
In just the past two days, investors purchased more than 1.4 million Silver Eagles.  This pushed the total sales for October to 5,790.000, surpassing the record set in March at 5,354,000:

JPMorgan

Just in time for the Halloween Spooks to come out and play by slashing the prices of the precious metals, JP Morgan (vampire squid), experienced another ghastly withdrawal from its gold inventories Friday.   Something quite eerie seems to be taking place as the majority of Comex gold withdrawals are coming out of the dark dungeons at JP Morgan Chase.
In just one week, JP Morgan has lost 41% of its total gold inventories. 

Gold-Loan-2-1

We can’t speak about the manipulation of the gold price today without understanding the derivatives market.
These products have never been tested in the real world and especially in adverse conditions as a major crash.  
I have concluded that the next financial crisis will have derivatives at its core.
The 2008 crisis confirmed it to some extent.   The next crisis will be much worse and it will also have derivatives at its core.
In the gold market derivatives are presently dictating to the physical market what the price should be whereas by definition, as derivatives, they should be derived from prices set in the physical market.