This Thing is Going Down in September! – Harvey Organ

Harvey Organ Joins Us to Issue A Warning On the Markets This Fall:
“This Thing is Going Down in September…”

 

 

Silver Rounds .29 Over Spot
 

Video Transcript:

Doc: [00:00:00] This is The Doc and Eric Dubin with the SD Weekly Metals and Markets wrap. Joining us again this week is Harvey Organ. It’s great to have you back on the show with us Harvey.

Harvey Organ: [00:00:14] Always great to be with you.

Doc: [00:00:17] Well we’re recording on Thursday afternoon here about 24 hours after the Fed released their latest FOMC statement and they hiked rates for the fourth time in the last 18 months here. And after a little bit of initial burst for gold and silver, the metals have been hit hard. On Wednesday afternoon and even harder here on Thursday. Silver turned down I think about $16.60 down about 50 cents on the day. Gold’s been down about $25. Well they’ve recovered a little bit here in the afternoon markets. Silver trading about $16.80 and gold about $1,255 right now. Let’s start with you guys’ take on the latest rate hike and whether after this initial knee jerk reaction down here is over. Are we going to see a fourth sustained rally for gold and silver prices after a rate hike?

Harvey Organ: [00:01:13] Generally, believe it or not when you see rate hikes gold and silver actually rise. Go look at the data from the previous years. Gold and silver actually do quite well. As far as this latest rate hike, I’m pretty sure it was a policy error. Again she is forced in and she says she’s forced to but they’re not getting any wage inflation which is what they really want and it’s certainly raising rates is going to cause problems everywhere else around the globe including China. If you look at China’s mess, they’re not growing at all. And of course they’re the engine of the world and producing all your socks and underwear and all the products that they make and they’re slowing down dramatically. You guys see that Nike today is getting rid of 2% of their workforce around the globe. I’m seeing global growth basically nonexistent, so in order for her to raise rates it makes no sense. You guys should see it in the long bond. The long bond is rising in price. They kind of sense that this is a policy error on her end and eventually they’ll all be born right. The bond traders are pretty good, they’re smart and they realize that it’s a terrible error. I mean that’s my take on that one.

Eric Duban: [00:02:49] The point about the long bonds is a good point because there’s been a disagreement between bond investors, generally speaking, in the stock market has been all messed up to the upside, high valuations and driven by brain dead index fund purchasing and keeping up with the Joneses kind of attitude among money managers when you’re on auto pilot and chasing stocks that took you up a week ago. We have the longer rates in the United States going down because people are assuming that the economy is turning down and that’s what the data is showing. We’re going to have this kind of a mismatch with the equity markets continuing to drift downward despite occasional burst higher when the happy talk about economic numbers and a few factors that come out. Specifically, a tiny amount of wage inflation that they occasionally can put on show. But the last employment report stank.

Harvey Organ: [00:03:49] By the way, generally one guys right. Either the equity players are right or the bond players are right. Obviously that would be a nonstarter. Also the P over E is it’s really high at a record level. There’s going to be a problem. You’re going to see a big market correction and then there’ll be a movement into metals. Similar to what you’re seeing in cryptocurrencies.

Doc: [00:04:34] Do you think it will be before the Dutch showed down or do you think that’s what’s going to trigger it Harvey.

Harvey Organ: [00:04:39] The debt ceiling will trigger for sure. I think it’s time for that. But the debt ceiling has about six months of money when they stated that they reached their debt ceiling at 20 trillion in March. They have this pension money and all of the money and things like that. It’s about six hundred and sixty billion. If you take March to six months during the first two weeks of September and there’s no way the Republicans (the Tea Party) are going to agree to Trump’s big tax cuts and or tax and huge expenses. It’s just not going to happen. Nothing’s going to happen. They’re going to realize, wait a minute, the US is in default and will probably have the same crisis that occurred two years ago when the markets tanked. So that’s probably the case. In answer to your question, September will be the latest. I think that there’s real problems. I’m seeing a lot of scarcity in silver on the markets which is interesting. And I’m seeing a lot of problems with silver at the COMEX.

Not necessarily gold although gold is a little backward in London, not backward in New York. My thinking is backwards in both places and so you guys are our experts in the silver market. This is a good thing your clients are going to be starting to clamor for some silver product pretty rapidly there. There’s an obscure contract that the COMEX if they think long has a contract and somehow in an emergency they can’t deliver. The CFTC allows a product called the EFP or exchange for product. And these are issued to a long and it is a private deal between the long and the bank. And the deal gives them a future contract wherever that is and some paper money. We found out that the dominant deliveries are not from the COMEX but these future papers are forwards from London. In other words they are giving these future contracts and then of course they take delivery.

And that certainly explains why I was having so much difficulty in understanding of how in gold, open interest obliterated as we enter it into first day notice. I couldn’t believe it because the spread between the two months, forward the front month and the next active month was tiny. And yet everybody left. That didn’t make sense why? And then James Turk and also Johnson both basically found out the use of these EFPs. So that would certainly explain. And to this day EFP’s are given on gold contract like there’s no tomorrow. But what’s fascinating in the last three months EFP paper has not been issued or asked for. Borrowers who are long a silver contract says I am not taking a forward. I want me real metal today. Which is interesting because that’s your definition of backwardation. They don’t want to fool around in paper, they want the real stuff and that is why I guess we’re seeing scarcity in solar. It’s been manifested in both London and in the COMEX. So that’s what I’m seeing and I’m certainly trying to work with the CFTC officials and we’re having a huge disagreement. I’m very angry at this because I asked them, I said “if you think it’s so good go write a paper on this why you think it’s OK.”

US Mint Silver Liberty Medal

And they don’t. But I’m telling you it’s wrong because they’re using a different form delivery. They’re using the London as the form for delivery as opposed to the COMEX. And that kind of distorts just about every figure you want. It’s hard to gauge what’s going on because you really don’t know what’s been delivered upon because some of it could be delivered to the COMEX and some of it could be delivered in London. That’s my take guys.

Eric Duban: [00:09:52] The CME group declares that all of these transactions are exchanged for physical are supposed to be declared and reported upon. How confident are you that they are in fact not disappearing in the OTC market never to be seen?

Harvey Organ: [00:10:09] Well the deliveries are. If I have a contract that originated from the COMEX and I was giving a future forward in London to take delivery, how do they know? It’s gone from them, they don’t know.

Eric Duban: [00:10:27] The execution of the forward future at some later month when it comes due or when it’s chosen to be delivered upon. I guess that’s interesting. But my question is the degree to which these exchanges for physical transactions are actually being reported honestly in the first place. I’m wondering if they are in fact partially dark themselves.

Harvey Organ: [00:10:54] Well what Matthew Hunter has been telling me is that they are monitoring those things. So that’s part of their gauge of audit. They can actually see through this. Once it leaves the COMEX, and a delivery is in a form, I guess they lose that. Which is what you thought about the GLD. Once they settle on a GLD contract deal in contract, the idea is that they would get barcodes and everything else, and some sort of physical delivery to consummate their deal. But they got to have some semblance that there is physical being settled upon. It just wouldn’t make sense. It wouldn’t hurt me if it was just paper all the way the COMEX would just blow up. So there has to be some sort of real physical somewhere, and I think with the audit situation of the EFTs they certainly are watching these things. But when it’s settled upon I guess they just would have no idea. A Forward by the way is not necessarily a future month, it could be 10 days, or 15 days, Forwards are done by date, so it’s not like what we have over here at the COMEX done monthly. Anyway, I’m working on this one. But it is certainly causing concern for James Turk and Andrew McGuire. Andrew just noted it’s an unbelievable in gold, huge amounts, and that’s certainly what makes sense to me because you’re dealing with months and months of these EFTs being turned over into metal, and I guess that’s why they have been bombarded with deliveries over there.

Eric Duban: [00:12:48] Andrew made a rather cryptic comment to Eric King over at King World News about that 26 days from now the markets are going to see some fireworks. Do you believe that he’s talking about the insurgent phase between exchange for physical transactions and gold?

Harvey Organ: [00:13:04] That is correct. Andrew is going to talk about this issue. By the way, it’s July 8th. I think it’s July 8th. That’s the day that supposedly when all of these contracts have been written, and maybe one sovereign has been taking all these and going to settle them. That would be exciting. We don’t know yet. But it’s interesting… Andrew’s a trader. He’s an LBMA trader. If there’s anybody that knows it’s him. He knows. I’ll put my money on him anytime. He knows.

Eric Duban: [00:13:55] Well, it’s certainly shaping up for an interesting summer in the political fracas in the United States and the partisanship will make that debt negotiation almost impossible to be anything productive, which means, political confidence within the United States is going to take a punch in the face, at the exact wrong time it comes to our stock market being is highly valued as it is and our economy rolling over. I don’t see how we get out of this without seeing a significant equity correction, and that in turn will be great for assets like gold and silver. which is why they’re trying to keep a lid on silver and gold now.

Harvey Organ: [00:14:35] Right. Which is why they’re trying to keep a lid on silver and gold now. The other thing Andrew said was that in gold, the sovereigns we’re basically taking anything below $1260. He was thinking anything around $1255, from $1250 to $1260 and the sovereigns were in. And my guess is the sovereigns would be China or Russia. I think they’ve had enough.

Doc: [00:15:10] Well, they’re seeing that today.

Eric Duban: [00:15:10] Exactly. They’re on vacation today. The operation of painting the tape yesterday after the FOMC nonsense is, for the time being at least, even broken the perception among paper chasing traders on the COMEX, they were diving after we hit the $1260 mark too.

Harvey Organ: [00:15:27] Well we will see what happens. It’s not going to go much lower. Gold, and certainly silver. Silver at $16.50 is your bottom probably. It’s not going to go any lower, and you just might as well pick it up because it’s still cheap. it’s nice of them for offering it for still cheap.

Doc: [00:15:49] As long as you’re buying it certainly is nice.

Harvey Organ: [00:15:52] As long as you’re buying and store it, and stack it up. I mean don’t play it. Anybody who plays that COMEX is out of their minds. I mean, just go and buy silver and put it away, and buy your gold. Don’t play the game because they know your stop losses and everything else, and they whack you! They’re spoofing, and oh they spoof. Andrew caught them in spoofing three days ago, or two days ago, or whenever they did the big raid. Yesterday. Andrew caught them spoofing and went right to the CFTC and showed them within milliseconds how they were doing it and everything, and the CFTC just let him go and wouldn’t listen to him. Why? Because it’s the government. The government allows the bullion banks to do this so where do you go? A bunch of crooks!

Eric Duban: [00:16:42] And just after the DB, the Deutsche Bank revelations too.

Harvey Organ: [00:16:47] Yeah those tapes. Oh my goodness. It’s the biggest breach of trust I can imagine, of how they are going to bulldoze you and your clients. They have something like 360,000 pages of this stuff. And I don’t know if you heard, but they delayed the case? I don’t know if guys why they delayed the case? It’s because the government, the US government wants to get involved so they asked for a year delay. The judge, not knowing how to handle it, said, “OK I’ll plot it”. And now, it’s now eight months now, and she hasn’t ruled. At the end of the 12 months she says, “OK”. And then, while this happened, another trader from Singapore was convicted. And he starts telling about the number one trader called “The Legend”, and I think everybody is after him. He’s the king-pin, whoever that is. He’s probably from JP Morgan or something. He’s known as “The Legend”, and so, they are going up the ladder. They are giving the guy from Singapore a deal and then they’ll get other traders, and they will finally get “The Legend”, but I don’t know. It’s too slow as far as I can see.

Eric Duban: [00:18:04] Well as it seems they’re targeting particular forms of manipulation that are the least egregious of all forms that we witness. I mean spoof orders? Big frigging deal! I mean that represents what, maybe 5 percent of the net impact?

Harvey Organ: [00:18:20] 3 percent.

Eric Duban: [00:18:22] It’s a limited hangout as they say in intelligence parlance, or in real political circles.

Harvey Organ: [00:18:29] They know. Trust me. They know what they’ve done. these chat rooms.

Eric Duban: [00:18:35] Exactly.

Harvey Organ: [00:18:35] They know. Believe me. They know.

Eric Duban: [00:18:40] And it’s always hung on the “Oh, the evidentiary standard is tough”, and you have to get somebody to come out like that guy in Singapore to fess up to doing malfeasance, and the malfeasance that they’re letting you hang out to dry, is, the least obnoxious form of what in fact is manipulating the silver market and the gold market. Spoofing is trivial compared to the other tools that these bastards use.

Eric Duban: [00:19:05] Do just listen to me. OK, just because they got them on spoofing, it doesn’t mean when you cross examine, they’re going for the marbles and other stuff. I’m not so confident. We’ve been in this what, for now two years, and the powers that be want to get this under the rug. And that’s what they’re trying to do. That’s why we are looking at a case where somebody is being outed for spoofing as opposed to dumping hundreds of metric tons of gold bullion on the marketplace.

Harvey Organ: [00:19:36] Well, it’s obvious. I tell them the crime scene. , I immediately send down where the with 40 tons of gold blast raid was. I said, “It’s at this timed second” . They know. They know they know what they’ve done. Believe me. But the problem is, that crux, is that physical is running out. That’s their problem. As long as they keep using paper it can go on for years. The trouble is the physical is disappearing. All of the sudden they have got to face the music, and I think they are going to face the music pretty fast. I see it in silver. I don’t think it’s going to continue, and that’s my opinion. That’s Andrew’s as well, And James Turk. All of us saying the same thing.

Doc: [00:20:26] It’s about time to face the music. We’ve been waiting a while.

Harvey Organ: [00:20:29] Well I’m having fun with these lawyers, I can’t believe some of the things that have been said, I mean, it’s really bad. You’ve got to see them. But when your own bank, who takes orders for me, and the bank trader says he’s going to bulldoze me, that’s the biggest breach of trust I’ve ever seen. That’s criminal to the highest degree. It’s a breach of trust in everything with these guys, what they’ve done is wrong. And they don’t care, and they keep going. That’s their nature as far as the US it’s like a regal case. These guys are criminals from day one to the end.

Doc: [00:21:16] I mean did anything really ever happen to Goldman Sachs? What’s that been, six or seven, eight years ago with all those Carl Levin hearings of all the mortgage backed securities. I mean they package, slice and dice all the loans and then they sell them to an investment fund.

Eric Duban: [00:21:32] It’s an industry-wide settlement. I mean, the whole damn banking industry was allowed to wash their hands by doing settlement.

Doc: [00:21:37] Yeah, nobody went to jail.

Eric Duban: [00:21:41] Exactly.

Harvey Organ: [00:21:41] I’m not too sure. As far as the problem with gold, is when they find out that the US gold is gone, then that becomes treasonable. When the United States Citizen finds out that, “Wait a minute, it’s not there in Fort Knox? You’re guarding, you have guards, and you’re guarding an empty vault?”

Eric Duban: [00:22:01] Yeah that or just having 10 claims on every single ounce, which is the majority of actually of what’s going on. So that kind of scenario, to be perfectly blunt, gets resolved by wars when you have the counter-party with title to something doesn’t get their gold, and there are 10 other countries, or individual institutions or whatever. By the multi-hypothecation of these ounces that have been sold into the marketplace where the regulators look the other way because half the time they don’t even know what the hell’s going on. And any other time they assume, “Well yeah, It’s just a lease arrangement.” Then the party that receives the paper is going to be selling that paper back, or to be able to be bought back. In other words, the gold doesn’t have to move, but that’s a fiction. When you have 10 people, or 10 institutions or governments with a claim on the same ounce, that’s a recipe for disaster, and that’s what’s going on with the Fort Knox Depository as well as the New York Fed, above and beyond the physical that has been removed, more likely, certainly, the New York Fed physical, the vaulting system within the New York Fed, has been what has been tapped to execute physical dumps into the marketplace when that’s been needed to.

Harvey Organ: [00:23:24] They do it through what they call “Site Swaps”. It’s done through the BIS.

Eric Duban: [00:23:29] Right.

Harvey Organ: [00:23:32] And they have been very active in the last two months in this stuff. I think it was James Turk. When he starts seeing that he says, “We are near the end”. When we start seeing real activity in these site swaps, they’re trying desperately to keep a lid on the price. It’s what happens is when China, and by the way, China sovereign is not taking delivery. China that takes gold going in there is for its citizens. Alasdair MacLeod basically said that China really got its 15,000 to 20,000 tons of gold from 1985 to 2002. They were finished by then. They were they were accumulating already when nobody was apt to notice. And now, China really wants its citizens now to have gold, and they have been very active in allowing that, and that’s probably where, and we’re certainly seeing probably, 1600, 1700 tons of gold net entering into the Shanghai. Into the Shanghai Gold Exchange each year.

Eric Duban: [00:24:35] The Chinese government is accumulating gold still, but Alasdair MacLeod’s point about upwards of 20,000 metric tons being as big as what China may have been able to hoard since the mid-80s is true too. I mean no one knows the exact numbers.

Harvey Organ: [00:24:52] Nobody knows.

Eric Duban: [00:24:53] But I’ve looked through his research, and we talk to him as well too, and the reasoning he employs to come to that number is very sound. People like Jim Rickards are purposefully being very conservative when they say, “Oh four or five thousand tons of gold is probably what China owns right now”. That’s nonsense. China owns a hell of a lot more! And on top of that the citizens own a bunch.

Harvey Organ: [00:25:17] I mean, but when you’re seeing China, China mines about 470 tons a year, which, probably half of it is mined at a loss but they don’t care.

Eric Duban: [00:25:30] Yeah, and even that gold all by itself in the last 10 some odd years exceeds their declared holdings. And we know that their gold doesn’t leave. So even in the domestic mine supply, that gold is all sold directly to the government, and it doesn’t go through to retail channels and so-forth. That all by itself represents more gold than what China has been declaring. And by the way too, I think it was immediately after the inclusion into the SDR basket that China was able to secure, and they had that motivation to be more transparent leading up to that decision by the IMF, all of sudden, they stopped declaring it on their monthly position decisions. , what’s up with that?

Harvey Organ: [00:26:16] They haven’t announced one ounce after that, and I’m telling you.

Eric Duban: [00:26:18] Who here in our audience believes China, the government of China, has not purchased and stored a single ounce of gold in the last couple of months? Please raise your hand.

Harvey Organ: [00:26:31] Certainly the 470 tons of gold that’s coming from the mining, certainly that would add to their reserves, and then the rest of the gold is coming through Singapore and Switzerland. Then these guys, the refiners, are going crazy. They’re going 24/7. They’re manufacturing these kilo bars. They’re are going 24/7, they are not stopping, of course that’s what China wants. They are .9999 fine bars. Anyway, that’s certainly not stopping. Certainly. the other thing to look for also, for you guys for silver, is the amount of silver standing at the COMEX is increasing during the month. When I go on First Day Notice, and we’re talking in June, the amount that was standing with about 2.1 million ounces.

And of course, June is a non-active month, so you don’t see too much. However, every single day, from the first day till today, the amount has increased, and it’s now 4.5 million. Think about this: When you stand, and you always stand the beginning of the month and that’s it’s it. It’s 100%. It used to be for the first two days you deliver upon it then the game is over and that’s it. Then you go away, and you go away for the next month. Now we’re way up and all of the sudden it’s increasing. How can it be increasing? Because people want it. The demand for silver is very high. It makes no sense to see that the silver price goes down. The other thing you’re seeing at the SLV. Silver was at almost $17 or $18, it was $18 almost a couple months or month ago? And all of the sudden it’s $16.50. Well what’s fascinating? The SLV is staying the same! How can that possibly? That’s supposed to represent the demand, there is certainly something wrong with the with the amount of silver inside the SLV, and I just think it’s just paper. I don’t think there is anything in there. Same as gold. So anyway, the demand for silver is strong, and you’re certainly seeing it in London. I’m certainly seeing it in the COMEX, and I’m seeing it in scarcity, OK? Bars are becoming very difficult to get. So generally speaking, that’s the thing that investors should watch for. Not the paper garbage that these crooks start throwing at us. So that’s my take guys.

Eric Duban: [00:29:18] The retail market from a coin perspective has been pretty horrifying. We have not seen very strong North American demand for silver and gold coins, and Doc and I have talked about that quite a bit. But when you look under the surface, there are segments in the smart money, institutional sect that are definitely accumulating. They are even going after mining shares. I mean a couple of days ago Wheaton Precious Metals had a tender offer from private equity where they were looking to take 5 percent of the company. Excuse me, not 5 percent, they offered a tender of 5 percent below the prevailing price trying to scoop up exposure to precious metals. This is the way institutional investors are trying to sneak in and get, rather than go and try to accumulate a whole bunch of physical and vault it privately or whatever. , these particular players are going after exposure in the form of Wheaton Precious Metals because it’s a streaming company.

We see these kind of actions too hearing Jason over at Wall Street for Main Street, and Dave Kranzler, Investment Research Dynamics, others People that talk a lot about what’s going on in the mining sector. There’s definitely a lot of activity of the smart money trying to get in to position quietly in precious metals regardless of what people in the media in particular are focused on when it comes to the retail market, and the North American coin market, and the U.S. Mint numbers and things like that. I mean, that’s that’s not showing what’s really going on.

Harvey Organ: [00:30:57] It’s 100 percent correct. It’s the users. When the silver users are starting to get worried. You see the problem is, that they use such a minute amount of silver in all their things, and you can’t recover it from some photography or whatever. They just can’t. The silver is consumed. There is no above-ground silver. Where gold, every ounce of gold that has been minted from day one is still around! It could be in churches or vaults or home supply, whatever it is. It’s still here. But silver is not. Silver is consumed, and that’s where the problem is. The problem is that the demand for silver is still over a billion, what a billion and one almost? And if you look at the supply, by the way we’ve hit peak silver. We’re now starting to come down. I would suggest we’re about 880,000,000 if you include China and Russia, and I take them out because they never let one ounce go. I think the proper, the correct answer to look for is 700 million ounces is available, and when we start looking at demand over a billion, it shows the demand for silver still very, very strong. Very strong around the world because its uses are so great, and especially for us guys in pharmaceuticals. OK, it’s used in antibacterials, it’s used in photo-voltaic cells, you name it. It has tremendous use, and the demand shows it. The demand is not coming down.

Eric Duban: [00:32:34] Now these lower prices are destroying the forward supply for mines as well, and the invest-ability and productivity, and profitability of mining operations at anything under 20 bucks, never-mind even $25 silver, is such that it’s baking into the industry cake the supply deficit that will go on for frigging years. This is so insane where we are in our current pricing. It’s going to in the long run create a much more sustainable bull market move.

Harvey Organ: [00:33:06] Well what’s happened is that silver is really the byproduct. OK, 75 percent of all silver is produced is really a byproduct of gold.

Eric Duban: [00:33:14] Sure.

Harvey Organ: [00:33:14] OK, so you don’t have any primary mines other than Pan American Silver, and a few others, Coeur d’Alene. They are primary, and they represent the 25 percent, so that becomes very difficult for them if silver is just a primary market. I think for silver; their mining costs are now dramatically going up with energy costs. Whereas, you can imagine having a downturn, and all of a sudden copper, and all these others, and if all the sudden these mines shut down and are not making copper, then of course, automatically gold production would be lower and also silver.

Eric Duban: [00:33:56] Yes 25 percent is still a sizable slice of the industry pie, and that is not profitable for the vast majority of producers, and then you have the global economy laying an egg, and copper going down, etc., all that byproduct is also in jeopardy.

Harvey Organ: [00:34:12] That’s what I’m saying. Anyway, that’s what we should all watch for the next few months. Certainly that field, the debt ceiling, Trumps trying to get his things passed which he won’t be able to. He’s going to have real problems with his party, the Republican Party divided, and I doubt very much that he can do anything. the metals will just wake up.

Eric Duban: [00:34:43] Maybe the scandals and all this “Russia is behind everything” and all that nonsense will blow up the Democratic Party, and the Republicans fighting each other will blow themselves up.

Harvey Organ: [00:34:52] That’s right.

Eric Duban: [00:34:53] We can dream, can we not?

Harvey Organ: [00:34:58] We can certainly do that. It’s a very exciting time.

Doc: [00:35:02] Harvey you were commenting before the show that you have your eyes on September?

Harvey Organ: [00:35:06] I’m pretty sure. Well that’s the latest. No question. Because that’s the last of the debt ceiling. The debt ceiling will be the first two weeks of September. That’s when the $660 billion dollars is going to be used up. And of course, they’re going to have to make something, and they just can’t. All of the sudden Republicans, and can you imagine some of the Tea Party is going to agree to huge expenditures? There’s no way. And also tax cuts? Come on. It’s just not going to happen., it’s just going to freeze. Everything is going to freeze. And these investment guys write about this with blinders on. They just don’t see it. But just watch for that you’ll see. There’s no way there is going to be any agreement, whatsoever. And then all of a sudden, the United States Dollar will tank. Gold and silver will skyrocket, and know what you’re going to see is what you saw in the advance of Bitcoin and Ethereum. Both dramatic increases. The huge rises in those will be transferred to the real money, gold and silver. And that’s when the fun begins. And that’s when you guys are going to be so busy you are not going to know what to do with yourselves. The phone is going to go off the hook with everybody calling, “I gotta get my hands on metal! Where can I go?”.

Doc: [00:36:30] At that point it is going to be like, “Here’s your ticket. Get in queue”.

Harvey Organ: [00:36:34] “Get in line”.

Doc: [00:36:35] “Get in line, and we will contact you in a couple of months”.

Harvey Organ: [00:36:41] That’s going to happen.

Doc: [00:36:43] At some point. I believe it will happen at some point. Whether that will be this September remains to be seen, but I believe it’s coming at some point.

Harvey Organ: [00:36:50] I think at the latest. I think that something is going on July 8th, and I’m going to find out. I will email you guys. Well, it will be in my commentary.

Doc: [00:36:58] Yes, as soon as you do let us find out Harvey.

Harvey Organ: [00:37:01] I’d be very happy to because I write every night. At midnight, I get the preliminary data. Maybe I should give that to you guys as well? I think I’ll do that. I find out all the crazy things that go on in the middle of the night.

Doc: [00:37:16] Sounds good.

Harvey Organ: [00:37:18] It’s funny, I get it around 11:00 p.m. Eastern Standard Time. One hour ahead of you guys, and then I wake up at 7 o’clock and see what was happened in Asia, so I don’t get too much sleep, but anyway, I’m basically around the clock 24 hours finding out what’s going on around the world. I just concentrate and I just love learning about the physical markets. The physical is where I believe where the action is going to be. That’s when people realize they’ve got to turn their paper assets into real stuff. No longer these paper obligations. They are going to be rushing to authority to turn their paper into real. That’s when the fun begins.

Doc: [00:38:02] Well, we certainly look forward to the fun beginning, don’t we Eric?

Eric Duban: [00:38:06] Yeah, and the leverage in paper versus actual physical within the vaults of COMEX and London’s LBMA, and all that, is just so ridiculously over-levered that, only a tiny change in sentiment amongst the standard Wall Street/financial community worldwide will send prices up so fast that the cartel won’t be able to control it. We’ve already seen little bursts of that, things like reaction after the surprise Brexit vote, and things like that tell the tale of what happens when you get a burst of interest among broader communities that for the most part, more often than not, ignore gold and silver, but that will change.

Harvey Organ: [00:38:52] Oh yeah. Guaranteed. Guaranteed. it’s when the average people around the world lose faith in the dollar, and the dollar will lose the faith as the reserve currency of the world. And that, I’m pretty sure, that by September, that’s certainly going to happen.

Eric Duban: [00:39:11] And it doesn’t necessarily require a total loss of faith. We should note that as well so people know. The diminishment of faith is all that is required for people on an incremental basis to want to hedge their positions in the financial community., average Wall Street types are looking around saying, “Gee, the FANG stocks are ridiculous, valuations are high across the board, what can I buy that’s a laggard asset? And gee, the dollar is falling? Yeah, I’ll consider a little bit of gold.” That thought process is where the mainstream, basically know-nothing money managers who are completely oblivious to even the level of manipulation that goes on, will in fact transpire and create a very significant bid for gold and silver that will be even bigger than what the cartel is able to deal with.

Harvey Organ: [00:39:58] I agree with that.

Eric Duban: [00:39:59] They’re barely able to deal with what’s going on right now. I mean, even yesterday with the FOMC, before the FOMC announcement, people weren’t concluding, that the economy is going to be a lot weaker than what the Fed is arguing for, and that, , Harvey’s comment about them making a policy error is where a lot of people were assuming is in fact our immediate future. The Fed always breaks things. When was the last time the Fed did a rate hiking cycle without breaking anything? I sure as heck can’t remember.

Harvey Organ: [00:40:27] I’ll give you one even better, give me a time that the Fed was right in their predictions?

Eric Duban: [00:40:34] Well yeah, that’s a horror story all by itself.

Harvey Organ: [00:40:37] Right, they haven’t gotten anything right.

Eric Duban: [00:40:39] They don’t get anything right.

Doc: [00:40:42] 1913 they predicted if they launch themselves, they could take over our country. That was a pretty good prediction.

Eric Duban: [00:40:49] Haha! Yeah.

Doc: [00:40:50] You like that Eric?

Eric Duban: [00:40:58] Yeah.

Doc: [00:40:58] We’re laughing, but it’s sad.

Eric Duban: [00:40:58] That was humor.

Doc: [00:40:58] All right well, we’ll certainly look forward to Andrew’s events in early July, and hopefully it’ll materialize, Harvey. Let us know as soon as you hear anything.

Harvey Organ: [00:41:11] Well I publish it, and I’m certainly working with Andrew on this, so I’ll let you guys know, but I’m pretty sure of that. Andrew is a cool guy. He doesn’t get excited. I get excited. Andrew gets his cool, and he realizes something big is going. And remember, he represents a firm. He senses that a sovereign is going to be taking on the banks. I’m pretty sure that’s what he is getting at. So, I’ll find out, and I’ll let you guys know.

Doc: [00:41:48] All right. Well Harvey, it’s great to have you back. Always good to have you with us.

Harvey Organ: [00:41:52] OK. And now I have to go back and write for tonight.

Doc: [00:41:56] Sounds good.

Harvey Organ: [00:41:58] And I’ll be publishing at 6:30 p.m.

Doc: [00:42:00] All right. We’ll wrap up this week’s show there. For the Doc, Eric Dubin, and Harvey Organ, thanks for tuning in to this week’s SD Weekly Metals and Markets.

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