Senator Paul, in the spirit of your sponsorship of the FAIR Act, which would protect honest people’s life savings from British redcoat style brigandage and piracy, we ask you to consider making a ten minute speech in the Senate chamber warning President Obama to not rev up his accumulated disgraces by being so brazen as to cite “precedent” and “national emergency” or “military crisis” or “systemic banking collapse” or “overseas dollar repudiation” for invoking Executive Orders in any way comparable to those issued by Franklin Roosevelt on April 5, 1933, seizing gold from Americans, followed by the tyrannical EO of August 9, 1934, ordering Americans to surrender bullion silver to the Treasury Department.
Chinese silver inventories are growing increasingly tight as stocks at the SFE continue to fall to record low levels.
After the PAPER SMASH in the price of silver in April 2013, we can see just how fast inventories declined.
By August, 2013, silver inventories at the Shanghai Futures Exchange fell 610 mt to 533… a staggering 53% decline. Inventories continued to fall, but a slower pace until they reached a low in November at 418 mt.
Then over the next three months, there was a build of silver stocks to a high of 575 mt in February, 2014.
Once the price of silver started correcting lower, inventories declined in March to 417 mt, and then a huge fall to 246 mt by the end of April. In May and June, silver inventories remained relatively flat as spot price bottomed then headed higher in June.
When June rolled into July 2014, once gain, the price of silver headed lower right along with the decline in silver warehouse stocks.. Another 86 mt were withdrawn in July as inventories are now the lowest level (148 mt) they have ever been.
In a nutshell, silver inventories declined nearly 90% from their record peak set in March, 2013.
The Shanghai Futures Exchanged experienced a net decline of 995 mt from March, 2013 to the end of July this year.
The gold mining industry literally devours energy to produce an ounce of gold. In the past decade, fuel consumption at the top gold miners more than doubled, but the actual energy cost grew at a much higher rate.
The huge increase of diesel consumption at the top 5 gold miners is due to several factors. As ore grades continue to decline, the gold mining companies need to extract more ore to produce the same amount of gold. Thus, the massive haul trucks that transport this ore burn more diesel in the process.
Furthermore, as open-pit mines age, they deepen which forces the haul trucks to travel longer distances at a higher grade. One of the largest haul trucks in the world is the Caterpiller 797F. These haul trucks are massive and can transport 400 metric tons of ore in a single trip.
The CAT 797F costs $5 million a pop and uses six tires that cost $42,500 a piece. Studies show tire costs can exceed 25% of total haul-truck operating costs per ton; and total tire service and replacement costs over the useful service life of a haul truck can exceed the original purchase price of the truck!
The CAT 797F has a standard 1,000 gallon tank and has options for a 1,500 and 2,000 gallon tank.
Did I mention that the CAT 797 gets 0.3 miles to the gallon of diesel?
Gold has been banished from everyday use, and can only be hoarded unproductively. Gold is going into hiding.
This is not the first time gold has gone into hiding; gold went into hiding in the days of the collapse of the Roman Empire of the West.
It is going into hiding again, in the present slow-motion financial collapse of the world.
The price of gold will enter a rising trend, no matter how violent the official interventions to control its price, because at the present low prices it will be impossible for the gold market to satisfy demand for gold from a largely silent minority of mankind that wants to own gold. When this happens, we can expect the criminalization of gold ownership, at least in some quarters of the world.
Gold today has really only one enemy: the Federal Reserve of the US.
I bid you welcome to The New Dark Age.
While the average price of silver remains at a multi-year low, there are several indicators pointing toward a much higher price by the end of the year.
If we look at all three INDICATORS-SIGNALS together, we can see SOMETHING BIG is getting ready to occur in the precious metals market.
The first involves what appears to be evidence that JPMorgan has gone MASSIVELY LONG silver:
It looks like at least one country is still taking advantage of the extremely low paper price of silver.
From information just released, India continues to import a near record amount of silver in 2014.
Even though silver imports slumped in June compared to last year, demand is still extremely strong.
Do you really believe top silver producing countries like Mexico and Peru as well as many other South American countries will continue to give away their silver for a mere pittance when the Dollar finally loses its World Reserve status?
The organization responsible for destroying the role of silver as money, is documented in this article.
This organization makes the Bilderbergs look like pikers.
If you think you know the true story of Silver, this article will surely DESTROY many myths and incorrect assumptions.
With the results for 2013 finally in, the top gold miners average yield fell to the lowest level ever.
This is a surprising development considering that the average price of gold dropped to a low of $1,411 in 2013.
Normally when the price of gold falls, gold miners switch to higher grades to remain profitable.
However, the top five gold miners’ average yield declined another 5% in 2013.
“Who are these Pilgrims? I have since made a study of them. Their organization is one of immense power, and just now they hold our country in the hollow of their hands. They control the banks, they control the press and can sway public sentiment by means of their corrupt news services from one end of the country to the other. They are determined to force this country into war.”
In the first four months of the year, the U.S. exported more gold to Hong Kong than it produced from its domestic mining industry. Actually, gold shipments to Hong Kong were 29% higher than total mine supply from Jan-Apr. That’s a pretty big deal when we consider U.S. gold production ranks third in the world.
According to new information obtained from a bank analyst, data provided to the public is intended to distort reality.
I sat down with the analyst who shared some interesting insights on how gold and energy data are manipulated to mislead the public.
Things will continue to get more and more BIZARRE in the world financial system.
That is why it is wise to own physical gold and silver.
The DEATH OF THE DOLLAR is coming… we just don’t know the exact date.
In the middle of this jungle of jaundiced analysis…and jumble of misapplied facts… there is an elephant in the room.
A golden elephant – with enough time and patience, it’s mysteriously invisible presence in plain sight will be made apparent to all.
The theme of China’s(or if you like –Asia’s) growing gold purchases has taken on a life of its own in the gold community… the jist of which is that every ounce of gold which goes from west to east serves to strengthen the price of gold in western markets, and ultimately, bring about that hallelujah moment that westerners have been impatiently waiting for – when the POG skyrockets… to the sound of goldbugs popping champagne corks!
This post is about correcting that narrative… so that western precious metals investors can be better served, by more accurate information.
As the MSM, Wall Street and various so-called analysts waste time focusing on worthless and insignificant data, the price of silver is positioning itself for the coming TWO-STAGE RALLY.
The majority of the precious metals analysts discuss the revaluation of silver as it pertains to the amount of fiat currency in the system.
While this is a good determination (from past historical guidelines), it only deals with one part of the overall equation.
The second and maybe the more important factor… is the destruction of “PAPER CLAIM CHECKS” on physical assets.
We are heading towards a tipping point in the global economy and broader stock markets.
Monetary Malpractice by the Fed and Central Banks created an economic system of, “Delusional Markets.”
Nothing is as it seems, and we continue to kick the can down the road.
Furthermore, U.S. Treasury sales are no longer being bought by foreign buyers and it looks like we are approaching Net Selling. Which is the reason the Fed is forced to create more liquidity to continue purchasing U.S. Treasuries.
However, LIQUIDITY IS NOT WEALTH OR COLLATERAL.
In the first three months of the year, Hong Kong received half of total U.S. gold exports.
This was an interesting change of events as Switzerland held the number one spot as the largest importer of U.S. gold during the same period in 2013.
According to the USGS Gold Mineral Industry Surveys, Hong Kong received 78 mt. (metric tons) of gold from the U.S., while Switzerland came in second at 51 mt.
If we look at the chart below, we can see the breakdown of U.S. gold exports for the first quarter of 2014: