Comex Registered Gold 20614The 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?

gold & silver sold outThis year’s 2014 American Silver Eagles debuted on Jan. 13, or about a month after the 2013 American Silver Eagles sold out on Dec. 10. United States Mint distributors could not order as many as they wanted, as sales were rationed. The U.S. Mint allocated how many it sold during the first week to fewer than 3.6 million, and then reduced the amount to less than 600,000 for the second week so it could “begin the process of slowly building weekly inventories.” The final week of Silver Eagle sales reached 741,000.
…..The United States Mint now has the capability to fulfill demand, but the limited supply of silver blanks has kept allocation alive.

Before gold goes berserk like Godzilla rampaging across Tokyo—and frees silver to supernova—let’s have a look into backgrounds of key Federal Reserve personalities, with special focus on the New York Federal Reserve Bank.
The NY FED is the center of an international scandal regarding refusal (incapacity) to return German-owned gold.
The outrage will worsen.

Price Silver MoveAs we continue to witness orchestrated take-downs in the paper price of silver, the real market rigging is taking place in another industry.  After the price of silver fell 5% in a twenty-four hour period of time, precious metals investors are once again concerned about the future outlook of the shiny metal.
If psychology is the key to market trading, the Fed and its member banks have done an excellent job destroying market sentiment in silver currently.  I say currently, because “ALL” fiat currencies and Ponzi schemes collapse.  There are no exceptions.
Precious metals investors need to understand that in order for this Grand Derivatives Ponzi Scheme to continue, the price of gold and silver have to be controlled to keep the masses from waking upTo keep the public purchasing worthless 401k’s, IRA’s, bonds, most equities, pension plans, CD’s and etc, the OUT OF SITE, OUT OF MIND TACTIC is used by the Fed, U.S. Treasury and member banks.
When the price of gold and silver move up too high, this puts a kink in the fiat monetary authorities game plan.  The Fed and banks have no use for a public that is WELL INFORMED AND AWAKE As long as Americans continue to behave and purchase the crap the U.S. Treasury and banks sell them… everything is fine.

Blythe Masters Jamie DimonIn another stunning withdrawal, JP Morgan had  an additional 321,500 oz  gold ounces removed from its vaults today.
Since last Thursday, JP Morgan has lost 44% (20 metric tons = 643,000 oz) of its gold inventories.

If a picture is worth a thousand words, then the table below is worth over $400 million (at current market prices):

Place your bets wisely because 2014 may turn out to be quite the pivotal year for the markets.  As MSM and Wall Street continue to push the hype regarding the Great U.S. Shale Boom, serious cracks are beginning to appear in the natural gas market.
Also, in another stunning withdrawal, JP Morgan had  an additional 321,500 oz  gold ounces removed from its vaults today.  Since last Thursday, JP Morgan has lost 44% (20 metric tons = 643,000 oz) of its gold inventories.
February is going to be a big delivery month with nearly 40 metric tons standing for delivery at the Comex. 
It will be interesting to see if the Comex has the ability to settle with physical gold… or if will they be forced to settle paper gold contracts with cash only.
At some point in time, we are going to see a DEFAULT on the Comex.

The citizens of the U.S. & world are headed into a future that few are prepared for.
It will also turn out to be much worse than most realize as it will be unlike anything we have witnessed in the past.

Gold & Silver will become some of the most important stores of wealth and investments in the future.  The U.S. Dollar will not be the safe-haven as Dent and many other analysts believe due to the fact that a Fiat Monetary System based on Compound Interest and Fractional Reserve need a growing energy supply to SURVIVE.
There is no PLAN B and very few are prepared for what is coming.  The debate on Technical Analysis vs Fundamentals will seem very silly when the U.S. & World heads into the worst economic collapse in history.
As Ex-Assistant Secretary of the U.S. Treasury stated recently… when the price of gold and silver revalue much higher, there won’t be any physical metal to purchase.  Trying to time the market for the best price, may be turn out to be a huge mistake.

empty-vaultIn a surprising change from its inventory build over the past few months, JP Morgan had the largest one-day withdrawal of gold ever Friday.  JP Morgan had 321,500 (exactly 10 metric tons) withdrawn from its Eligible category.

In just one day, JP Morgan lost 22% over its total gold stocks at the Comex.
It seems as if 2014 may be the year that the Financial System finally falls over the cliff.

U.S. Gold Export ScrapAs the U.S. economic and financial system continue down the road of self-destruction, there is an increasing amount of evidence that suggests the day of reckoning is fast approaching.
One such indicator is the amount of U.S. gold export scrap.  At one point in time, the United States was exporting a great deal of gold scrap and waste, however it looks like its citizens are now…. tapped out.

2013 Total U.S. Gold Exports Jan-OctTotal U.S. gold exports picked up substantially in October after a low was hit in September at 37.6 metric tons.  As the price of gold declined from $1,400 at the beginning of September to a low of $1,250 in October, gold exports increased to Hong Kong & Switzerland.
Total U.S. gold exports increased 31% from 37.6 mt in September to 49.4 mt in October.
2014 may turn out to be an interesting year for gold.  There are so many inherent weaknesses in the present financial system, that anything could push it over the cliff.

silver rushThe key to investing in silver is getting in before the big gains are made. The sector that will have the largest impact on future silver investment demand will be institutional buying.  According to Rick Rule of Sprott Asset Management, we may be witnessing the beginning stages of what could be a big move of institutional investors in the physical precious metal market.
The writing is on the wall.  The Fed & Western Central Banks are propping up the world financial markets by pumping in huge amounts of liquidity.  This policy has put into question the long-term viability of the Treasury & Bond markets.
Even though the East is participating in the Grand Paper Liquidity Scheme, they are forced to do so because the Dollar is still the global reserve currency.  However, as confidence in the Treasury & Bond markets begin to wane, we are going to see more institutions and retail investors rotate out of paper and into physical assets.

Registered Gold Inventories 10914 NEW RECORD LOWAfter a brief pause in the decline of Comex Gold inventories, it looks like it has continued once again as there were several big withdrawals over the past few days. 
Not only was there a large removal of gold from the Comex today, the Registered (Dealer) inventories are now at a new record low.

Many precious metal investors would like to know where the price of silver is headed in 2014.  After the huge take-down of the price of gold and silver in 2013, investors would like to know if silver has finally put in a bottom and is getting ready for a new move higher this year.
I don’t believe in Technical Analysis in a rigged market.  I am quite surprised professionals still pay attention to this meaningless metric.

I am not quite sure of where the price of silver will go in 2014.  There are just too da*n many variables.  We could see an explosion in the price if we do get the “RUMORED” Global currency reset.  We could see a sharp move higher in the first quarter with a retrenchment and then a move higher by the end of the year.
Whatever the price movement, I doubt we will see much lower prices.
That being said, I have not invested in silver for short-term gains I believe in holding for the longer term.  Gold and Silver will be some of the best investments to own in the future… it just takes a great deal of patience to realize the gains.

Silver vs Oil Price & Ratio 1981-2000You can buy more than three times the amount of silver compared to oil today than you could during the decade of the 1960′s.
The Central Banks and Monetary Authorities have done a fine job bamboozling the public in making sure that gold and silver remain as silly investments only the fringe in society would purchase and hold.
When the price of silver reached $35 an ounce in 2011 it wasn’t a parabolic move higher, rather it was behaving more like a balloon being released from far below the surface of the water.  The coming explosion in the value of silver will be a shock to the world.
If we were to value silver today compared to its oil ratio during the following periods, this would be the result:

Dow to Silver Ratio Dec 2013The huge rise in the price of silver since 2005 has been due to Investment, not Industrial Demand.  The price of silver remained below $5 since the late 1990′s even though there was a silver supply deficit.
The only way to destroy the price of silver is to crush INVESTMENT DEMAND….. period.  Hence, the work of the FED and member banks.
Many precious metal investors today are troubled by the current weakness in the price of silver and are concerned that prices could fall much lower.   While the price of silver could continue to fall a bit from here, it’s more likely we will see a higher, rather than a lower trend in 2014.
If we look at the table below, we can see the total three-quarters of financial metrics from the top 12 primary silver miners: