- but, industrial usage each year has been about 60% of what is mined and headed higher.
- conservatively that now ratio to gold is 3 to 1.
- but the silver institute has understated the silver usage ( must be an undersight- surely not an oversight with so many investors relying on accurite data)
- but wait, my understanding is on the comex there are 400 silver ETF's for every 1 oz of silver (i love playing musical chairs but not when myself and 398 other silver ETF holders are not able to sit)
The beat goes on and on but i will stop there and sit with this last comment " wise people say - if you do not hold it , then you don't own it!!! Now, that is something i can believe.
David. Thanks for the well researched articles. In this case in the event of a crises wouldn’t the LBMA simply halt trading like the LME did in the nickel squeeze and the courts sided with them since the contracts said they had a right to cancel.
I don't really get it. Apparently from what I have read, the big banks short the paper gold and silver market and buy the physical. I got this intel from the book "The big silver short." Are they doing this on behalf of the gov who wants to keep silver and gold low so people don't realize the fait scam or are they doing it to take in more and more gold and silver at a cheap price....so when things go belly up they will make HUGE profits. I would suspect they are doing both. But at the end of the day they will be considered criminals. They have been doing this for years and their finger prints are all over this fraud.
In London, selling an unallocated contract into the cash market is selling something that can be physically demanded that is not owned beforehand.
That is a problem when the buyer demands delivery.
Selling a contract in the COMEX is selling something you don't own but the exchange can mandate cash settlement. Face a cash loss as price rises and market knowledge that metal is scarce.
Thanks, that made it clear for me. From your figures it appears that BB may be selling non-physical promises into a market that can be settled with cash in lieu of metal, in order to hold down the Ag price while attempting to cover much larger volumes of [undeliverable] promissories in a market where where delivery may actually be demanded.
Selling a short position of something that does not exist into the cash market, creates artificial supply and lowers the price of the item sold. So long as the buyer does not request delivery, the false supply lowers the market price.
OK thanks, David, so absent a request for delivery, the selling can theoretically be infinite through the use of free money supplied internally?
What I am confused about is that the synthetic players seem to be making profits both ways without caring about the shortage you refer to. Why is that?
How come so much demand for silver in industry is satisfied without a price premium appearing in the market price? Unless there is a black market premium that is settled on the side, outside physical exchanges? It is almost like the two markets are totally unrelated, trading different products. Difficult to understand this.
With the ability to issue massive amounts of virtual metal and a market that has believed there to be lots of silver around, the bb's could cascade the market price lower by selling suddenly into the market and taking out stop-losses.
Selling 5B to 8B oz. of silver in the London cash market has worked until there is demand for metal delivery in size. Then the fraud collapses catastrophically.
Frauds can persist for a long time. However, malpricing of silver now results in insufficient supply (as it always does) and physical delivery is and will be demanded.
Ahhh, fair market- where do we start
- the old Roman ratio of 16 to 1
- but silver mines are producing less silver to
Gold. The ratio is now about 7 to 1.
- but, industrial usage each year has been about 60% of what is mined and headed higher.
- conservatively that now ratio to gold is 3 to 1.
- but the silver institute has understated the silver usage ( must be an undersight- surely not an oversight with so many investors relying on accurite data)
- but wait, my understanding is on the comex there are 400 silver ETF's for every 1 oz of silver (i love playing musical chairs but not when myself and 398 other silver ETF holders are not able to sit)
The beat goes on and on but i will stop there and sit with this last comment " wise people say - if you do not hold it , then you don't own it!!! Now, that is something i can believe.
I wish you well.
Keep up the good reporting. Appreciate your work.
Thank you Jack.
Right on.
David. Thanks for the well researched articles. In this case in the event of a crises wouldn’t the LBMA simply halt trading like the LME did in the nickel squeeze and the courts sided with them since the contracts said they had a right to cancel.
The LBMA is an oversight association.
It does not control an exchange.
It does not control trading which is party-to-party contract trading.
I don't really get it. Apparently from what I have read, the big banks short the paper gold and silver market and buy the physical. I got this intel from the book "The big silver short." Are they doing this on behalf of the gov who wants to keep silver and gold low so people don't realize the fait scam or are they doing it to take in more and more gold and silver at a cheap price....so when things go belly up they will make HUGE profits. I would suspect they are doing both. But at the end of the day they will be considered criminals. They have been doing this for years and their finger prints are all over this fraud.
Hi David, does a short position of the type you describe imply an ability to lower prices? Or does it imply they cannot get any shorter?
What sort of power is available to them and what sort of price do the shorts need to see to close positions? Thanks for knowledge share.
In London, selling an unallocated contract into the cash market is selling something that can be physically demanded that is not owned beforehand.
That is a problem when the buyer demands delivery.
Selling a contract in the COMEX is selling something you don't own but the exchange can mandate cash settlement. Face a cash loss as price rises and market knowledge that metal is scarce.
Thanks, that made it clear for me. From your figures it appears that BB may be selling non-physical promises into a market that can be settled with cash in lieu of metal, in order to hold down the Ag price while attempting to cover much larger volumes of [undeliverable] promissories in a market where where delivery may actually be demanded.
Selling a short position of something that does not exist into the cash market, creates artificial supply and lowers the price of the item sold. So long as the buyer does not request delivery, the false supply lowers the market price.
OK thanks, David, so absent a request for delivery, the selling can theoretically be infinite through the use of free money supplied internally?
What I am confused about is that the synthetic players seem to be making profits both ways without caring about the shortage you refer to. Why is that?
How come so much demand for silver in industry is satisfied without a price premium appearing in the market price? Unless there is a black market premium that is settled on the side, outside physical exchanges? It is almost like the two markets are totally unrelated, trading different products. Difficult to understand this.
With the ability to issue massive amounts of virtual metal and a market that has believed there to be lots of silver around, the bb's could cascade the market price lower by selling suddenly into the market and taking out stop-losses.
Selling 5B to 8B oz. of silver in the London cash market has worked until there is demand for metal delivery in size. Then the fraud collapses catastrophically.
Frauds can persist for a long time. However, malpricing of silver now results in insufficient supply (as it always does) and physical delivery is and will be demanded.
Understood, thanks David.
David, you shot me into a deep thinking circle. I wrote down some thoughts, then others and now I am like in another dimension.
Isn't the question: "Why do all play along?" (again) or "Where is Mr. Hunt?"
There are so many competent players out there, but not one of them wants to kill the bleeding beast. The so called "enemies" do not either.
And all seems so ready for the coup de gras.
Dangerous grounds?
Frauds always collapse sinking the vessel.
Get to a lifeboat is good policy, IMO.
Great insight.
Thank you BK.
So where does one put cash in these times? What scares me about silver is their ability to smash the price at any one time.
Fraudulent price suppression schemes are meant to scare people from owning an asset.