Silver Doctors

Jerry writes:

Doc, I have a question. I want to buy a house and the lending institution wants a financial report as to my net worth. How do I explain to them I have a million dollars in silver & gold locked up in my safe? Without this disclosure I might not be qualified for a loan being most of my assets are in PM. What are my options?


Great question Jerry, and one that The Doc actually experienced himself first hand about a year ago.  The asset/net worth requirements vary greatly between financial institutions.  One bank in particular required the cash used for the down payment to be sitting in a savings account for at least 6 months!  (Who leaves $30,000-$70,000 inflating away in a 0.00001% interest bearing savings account for 6 months!?!) 
Even the banks that are more “lenient” in their requirements want financial account balance statements- meaning cold hard cash will not do if it hasn’t been sitting in your bank account, so you can forget about using phyzz.   Most of the financial guys working the desks of these banks that The Doc came across didn’t even know what gold and silver are, and didn’t even have a clue as to what affects interest rates!  (The lender couldn’t figure out why the November 2010 FOMC meeting/announcement (QE2 announcement for those who forget) would have an effect on interest rates, or what I was talking about. LOL)
In The Doc’s case, I advised prospective lenders that most of my net worth was tied up in “physical assets” that were not easily/ quickly liquify-able, and implied that I meant real estate (land).  The days of stating your assets with no documentation are long gone.  Most of these banks have been burnt so badly by the housing bubble collapse that they now require ridiculous documentation and have strict lending standards in place. 
As far as physical assets- These guys all wanted the receipts/ deeds of purchase.  Needless to say, The Doc did not make photocopies of his phyzz purchase receipts and report his phyzz as assets.  I ended up using only the trading account that holds my mining positions as my “total” net worth. 
Please also consider the potential safety implications of telling a complete stranger that you possess over $1 million worth of precious metals in your own home.  This is NOT information you should be sharing with complete strangers if you do not want to be led to your basement with a gun to the back of your head and your vault emptied.
For those who are 100% in phyzz, another option is FHA financing.  These federal geniuses are still giving out housing loans with only 3.5% down.  You should be able to save up 3.5% for a down payment in a few months, or sell a small portion of your phyzz if absolutely necessary to reach this amount.
Finally, The Doc would ultimately recommend that you still hold off on purchasing a house unless absolutely necessary (as was The Doc’s case due to an unexpected family addition) as the housing market still faces massive declines vs. hard currencies such as gold and silver over the next 5-10 years.
There will come a day when you will be able to borrow money against your phyzz.  There will come a day when a small corner of your stack will be welcomed as collateral vs. the piles of paper assets offered by the general public.  That day is not here yet, the paradigm shift is not yet complete. 
Hope this helps, and good luck with your housing search/ purchase.

-Doc

Jim Rogers on why the masses will rush to gold and silver during a sudden crisis.

BrotherJohnF is back with another Silver Update: Finished

Brother John explains why the CME Group itself is Finished (i.e. the jig is up, the game is over) in the aftermath of the breakdown of the rule of law in the MF Global collapse.

Blythe just tried to sneak a massive 613,738 ounce silver adjustment past the market this afternoon on one of the thinnest trading days of the year, but The Doc’s all over it like white on rice- and WAIT TILL YOU SEE WHERE THE RABBIT TRAIL THE DOC JUST RAN DOWN LEADS!

The Morgue adjusted 613,738 ounces of silver from eligible vaults into REGISTERED vaults on Wednesday!
Not to be beaten, Scotia topped its 1.2 M oz deposit reported Wednesday, by receiving a massive deposit of 2,395,835 ounces!
Rather coincidental seeing Brink’s had a nearly identical withdrawal Tuesday of 2,346,587 ounces!

COMEX WAREHOUSE SILVER INVENTORY UPDATE 11/25/11

*Delaware had a small withdrawal of a single bar (999 ounces) from eligible vaults


*HSBC had a small withdrawal of 2,035 ounces from eligible vaults

*No Changes for Delaware

*Scotia Mocatta reported a massive deposit of 2,395,835 ounces into eligible vaults!

*JP Morgan adjusted 613,738 ounces out of eligible vaults and into REGISTERED VAULTS!
Don’t forget this number, we’ll get back to it at the end up the inventory update.

*TOTAL COMEX REGISTERED SILVER increased to 34,051,874 ounces
*TOTAL COMEX ELIGIBLE SILVER increased to 73,893,167 ounces
*TOTAL COMEX SILVER INVENTORIES increased to 107,945,041 ounces

Ok.  Now back to the 613,738 ounce adjustment by The Morgue.  This silver is the 613,738 ounces that was deposited into The Morgue’s eligible vaults last Friday, Nov 18th.
Where might this silver have come from?
This is not an ignorant client depositing his phyzz at The Morgue, because it was adjusted today into REGISTERED inventory-meaning its silver that is available for Blythe’s delivery needs.

We have been updating readers that 1,420,916 of registered silver is currently unavailable as it is nowhere to be found in the aftermath of the Corzine/ MF Global scandal. 
With today’s update from The Morgue, The Doc decided to break down the numbers of the unavailable/stolen silver .

Here are the numbers again:

Total:                                                                       1,420,916
Now I’m not sure why I never noticed this previously, but isn’t it interesting that in the wake of the MF Global client silver theft, there is registered silver missing from EVERY SINGLE VAULT EXCEPT JP MORGAN’S!?!

The Doc decided to break the numbers down one step further, by removing the missing MF Global silver in the HSBC vault (HSBS is the other big bullion back allegedly manipulating the price of silver to the downside) from the totals. 

Outside of The Morgue’s manipulation buddy HSBC, there are 627,182 ounces of MF Global clients’ silver that remain missing. 

Now for the timeline:
MF Global is taken down on Oct 31st/Nov 1st.  About a week later the CME begins reporting that 1.4 million ounces of registered silver is unaccounted for and unavailable for delivery-including 627,182 ounces from non-cartel banks.
Roughly 7-10 days afterwards, JP Morgan suddenly reports a deposit of 613,738 ounces into eligible vaults.
Exactly 7 days later, JP Morgan adjusts this silver into registered vaults.
JP Morgan has not had a significant silver deposit in MONTHS prior to this 613,738 deposit if my recollection serves me.

This is not an allegation:
Make your own conclusions, I’ve made mine.

Still think that your silver is safe ANYWHERE OUTSIDE OF YOUR OWN POSSESSION!?!
The F***ing Morgue can burn- this is BANKSTER WAR PEOPLE! 

Guest Post From SD Reader AGXIIK:

Just when you thought it was safe to read SD this comes up. Russia is dangerous as hell.
Putin and his sock puppet President Medvedev consider the Chorney Zhup in the WH as less than a rank amateur. They play him like a cheap fiddle.
They’re buying gold with OUR monopoly money. Call it Rodina toilet paper.
As Douglas notes in his article, Central banks are buying gold and silver with something worth less than recycled newspaper. They buy gold with a click of a mouse. Countries throughout the world are buying this rare commodity at a bargain basement price of $1,700 an oz.
But as Douglas mentions, it doesn’t matter what gold costs, these central banks will either print the script or use our dollars to strip-mine every ounce of gold that exists.
Hide your metals.
Uncle Same wants you (r precious metals). If you sell gold for depreciating FIAT you are playing right into their hands. Bastards!
We have to work our a**es off to save enough to buy gold and silver.
They buy it with digitally printed FIAT. Bastards!
The Central banks are hoovering up gold like rats in a grain bin. What they don’t eat, they piss on. As a recovering banker I really detest the breed.
As for the speed of the Euro collapse, it’s accelerating. I’m no insider but am close enough to some people who are in the know to say that we are about to witness an event that we can tell our grandchildren—if we survive this apocalypse.
The DStag will soon vote on exiting the EU and reinstating the DMark. The time line is less than 6 months. The article about the UK crisis indicated they may dump their Euro bonds for Pounds and will try to do so ‘In an orderly manner‘.
They are in far worse shape as a country than Germany. The Mooch Class is restive.
I doubt if exiting the Euro in an orderly manner will work out as planned.
It’ll be like a security guard trying to stop a Walmart crowd on Black Friday. Old Blightey WILL get trampled!

The TED spread, the fear factor interest rate spread, is climbing upwards much like the 2008 banking collapse. Lending shut down world wide for over 6 months after that FUBAR episode. We got lucky, if you can call it that, but the FIAT that flooded the market did little but exacerbate the worldwide economic problems.

I have doubts if the Fed can provide enough digital FIAT backstop to prevent a collapse of the Euro and consequently the EU itself.
Even $5 trillion might not be enough. The combined GDP of Europe and the US is over $30 trillion.
Europe is 20% of our US worldwide exports. It’s also 20% of the S&P’s total revenues. Our banks hold $1.5 trillion in European Bonds, including nearly $50 billion in Italian debt. It’s one thing for Europe to get the flu when we get the sniffles. But when Europe contracts the economic equivalent of the Black Death, this is a pending disaster to the world economy Even China will get hit hard. That country could even collapse internally. No wonder they are buying gold hand over fist.

I have to confess that I’ve been in the lending arena for 31 years. I view business and countries through a financial lens.
I watched the 2008 banking collapse from a front row seat and barely survived the crunch of 1990-1993. 1,000 US banks failed in that time period.
The 2008 Fed funding that saved our banking system had the unintended consequence of leading to the collapse of Tunisia, Egypt and Libya through food inflation, a vital tipping factor that continues today.
The flood of currency required to save the Euro and US will make 2008 look like a summer day. I’m just saying that maybe the Fed can’t save the world this time around.
So step right up, hand the Doc a silver dollar, buy a bag of popcorn and watch the show on Silver Doctors. You won’t be disappointed

Signed. Another SD ‘tard

Bloomberg reports this afternoon that Hugo Chavez has announced on Venezuelan state television that Venezuela’s first repatriated gold shipments from cartel banks in London and NY are being delivered today.

Naturally this news is announced in the afternoon on one of the most thinly traded days of the year, when literally only Tyler Durden and The Doc are anywhere near a trading desk.

The Doc’s recommendation for Mr. Chavez: cut every last bar in half as we give it 2:1 odds Hugo was shipped gold painted Tungsten.
Chavez, speaking on state television, said that the bars will be escorted to vaults in Venezuela s central bank by the military after arriving by air to the South American country. The gold that was over there in England will soon be arriving,  said Chavez.  The opposition says that I’ll put the gold in the presidential palace or give it away to Cuba or something. This gold is going back to where it should have never left — to the Central Bank of Venezuela. Chavez, a former paratrooper and self-professed socialist, in August ordered the central bank to repatriate $11 billion of gold as a safeguard against volatility in financial markets.
Read more:

S&P has just thrown the hammer down on Belgium, downgrading the European nation from AA+ to AA, with outlook negative.
Belgium was likely ONLY downgraded to AA because it is attempting to shift its portion of the Dexia bailout. 

Hows your LDL looking Sterling?

SGT has released an interview with former Goldman Sachs Managing Director Nomi Prins discussing the former insider’s view on the Corzine/ MF Global theft, as well as the CRUMBLING OF THE RIGGED HOUSE OF CARDS that is the paper financial debt markets.
A MUST WATCH 2-part interview.

Part 2:

As if Europe Wasnt Collapsing Fast Enough Already.
Headlines indicate that Greece has decided to bypass the ECB, and NEGOTIATE WITH DEBTHOLDERS directly, and is reportedly seeking haircuts of 75%!
This would represent a further 50% increase to the currently agreed upon 50% haircuts, which were deemed “not a default” to prevent a derivatives supernova. 
We can’t wait for the spin describing a 75% write down as “voluntary” and “not a default”.  LOL.

SUCK EUROPEAN DEBT JP MORGAN!!

These days Ted Butler interviews are few and far between as his time is mainly devoted to his subscription only newsletter.  Butler remains THE premiere silver analyst in The Doc’s opinion, and we highly recommend his subscription service, as well as taking the time to read/ listen to any of Butler’s material made available to the general public. 
TFMetals has published an interview with the silver guru from earlier in the week, and Butler has also allowed TFMetals to publish his weekly subscription analysis from 11/19.
A Black Friday treat for all silver investors.

For those wishing to subscribe, Butler’s subscription service can be found here:

Many of Butler’s articles on silver are absolute classics and can be found in SilverSeek.com’s archives as well which are easily found using google and/or the SilverSeek archives.

*Eric Sprott confirms new “continuous filing” gives PSLV the right to raise additional $1.5 B “overnight“
*Funds would be used to buy PHYZZ
*Sprott is sending letter to major silver producers encouraging them to save in physical silver rather than saving fiat in banking system

As Cleburne61 has stated, even a small portion of $1.5 billion used by Sprott to purchase PHYSICAL SILVER will be a TSUNAMI for the small physical silver market.

I’ve always stated that I’m not going to do anything that would negatively affect the premium of that fund.  In my ideal, we get a couple of institutions come in here and say, ‘Hey we’d like to take down a couple of hundred million bucks worth of silver, we love your vehicle.’  And then we might go and say, ‘Okay, I think it’s time to go out there and go raise some money to buy silver.
Read more:

Too much turkey and gravy yesterday Blythe?
This is not what the type of chart action we are used to seeing in gold or silver in the first two hours of COMEX trading- vertical moves UP in gold and silver. 
Blythe- did you fat finger gold and silver from your IPhone8 in the best buy line?

On the daily charts, you can see that the vertical moves just wiped out the entire past 24 hour sell-offs in both metals.

Market participants continue to be surprised by gold’s continuing weakness and some are even questioning gold’s safe haven status. However, the fundamentals of broad based global physical demand remain very sound as evidenced by the central bank gold buying data today. Russia bought 19.5 metric tons of gold in October bringing their total gold reserves to 871.1 tons according to IMF data released today. Belarus increased holdings by 1 ton, Colombia by 1.2 tons, Kazakhstan by 3.2 tons and Mexico by 0.9 ton, the data show. Germany reduced reserves by 4.7 tons and Tajikistan cut reserves by 0.4 ton, the data show. Thus, Russia, Kazakhstan, Colombia, Belarus and Mexico added a combined 25.7 metric tons of gold to reserves in October, after gold prices corrected from record highs…Might Russia and China use gold in order to undermine U.S. political and economic dominance? There is certainly the possibility that they may use gold as a geopolitical weapon against the U.S. and as a way of furthering their growing global political and economic aspirations. Putin’s endorsement in 2005 of the Russian Central Bank’s plans to diversify the Russian reserves out of fiat currencies and debt instruments and into gold bullion was seen by some as as much a political act as an economic one.

From Goldcore:

Gold is trading at USD 1,680.50, EUR 1,268.60, GBP 1,084.30, CHF 1,554.30, JPY 130,130 and RUB 53,210 per ounce.
Gold’s London AM fix this morning was USD 1,676.00, GBP 1,084.02, and EUR 1,263.86 per ounce.
Yesterday’s AM fix was USD 1,699.00, GBP 1,094.72, and EUR 1,270.38 per ounce.

Gold is marginally lower in all currencies today. A myriad of financial and economic risks are supporting the yellow metal at these levels.
Market participants continue to be surprised by gold’s continuing weakness and some are even questioning gold’s safe haven status. However, the fundamentals of broad based global physical demand remain very sound as evidenced by the central bank gold buying data today.
Russia bought 19.5 metric tons of gold in October bringing their total gold reserves to 871.1 tons according to IMF data released today.
Belarus increased holdings by 1 ton, Colombia by 1.2 tons, Kazakhstan by 3.2 tons and Mexico by 0.9 ton, the data show. Germany reduced reserves by 4.7 tons and Tajikistan cut reserves by 0.4 ton, the data show.
Thus, Russia, Kazakhstan, Colombia, Belarus and Mexico added a combined 25.7 metric tons of gold to reserves in October, after gold prices corrected from record highs.

Cross Currency Rates including Russian Ruble
While 25.7 tonnes is a lot of physical gold in tonnage term (given very small size of the global physical bullion market) , it is very small in fiat currency terms as at current market prices (gold averaged $1,671.25 last month according to Bloomberg) its value is a meager $1.38 billion.
Thus, Russia’s purchase of 19.5 tonnes is valued at a tiny $1.05 billion.
Bloomberg reports that Kazakhstan’s assets increased 3.2 tons to 73.6 tons, Colombia’s gained 1.2 tons to 10.4 tons, Belarus expanded assets by 1 ton to 31.9 tons and Mexico added 0.9 ton to take holdings to 106.3 tons, the data show. Germany cut reserves by 4.7 tons to mint commemorative coins and Tajikistan cut 0.4 ton of gold.
Germany’s gold reserves are at 3,396.3 tons, the IMF data show. The country is the second-biggest holder after the U.S., according to the World Gold Council. A Bundesbank spokesman confirmed the sale German gold and said it was done to mint commemorative coins, which is the only reason it sold bullion during the past few years.
Central banks are expanding reserves for the first time in a generation due to unprecedented monetary and systemic risk.
Purchases may reach 450 tons this year, according to the World Gold Council. Central banks and government institutions officially bought 142 tons last year, IMF data shows.
Astute analysts continue to point out that this is just the officially declared purchases and many central banks and especially the Peoples Bank of China continue to quietly accumulate gold reserves.
Emerging market and or creditor nation central banks have long been diversifying out of U.S. dollars. Now they are equally concerned about the euro and other fiat currencies such as the yen and pound.

Gold in Euros – 1 Year (Daily)
These central banks, including China and Russia, hold huge U.S. dollar and other fx reserves. Even a small shift to gold will have a major effect on its price.
Despite the increase in central bank gold reserves, their central banks still only hold some 5% of their reserves in gold.
This percentage will likely increase significantly in the coming months as they continue to diversify their currency reserves.
Even a small portfolio reserve allocation into gold would create a very large increase in demand for gold.
The Russian government is aggressively adding gold bullion to its gold and foreign currency reserves and their gold buying appears to be accelerating.
This trend may continue to accelerate given the increasing tensions between Russia and the U.S. over Syria, the Middle East. Missile defence in Europe and other geopolitical and economic disagreements.
Yesterday, Russian President Dmitry Medvedev threatened to target and, if necessary, destroy the U.S. missile defence shield in Europe once it is built (see video below).
Russian Prime Minister Vladimir Putin recently accused the United States of living beyond its means “like a parasite” on the global economy and said dollar dominance is a threat to the financial markets.
Medvedev and Putin knows that a prerequisite for strong economy and powerful country is a strong and internationally respected currency and increasing gold reserves helps to protect the Russian currency from any possible economic turbulence or instability.
In 2007, the Head of External Reserves in the management division of Russia’s Central Bank, Maria Gueguina argued that holding gold acts as a buffer against political and economic uncertainty.
In June 2004, the Deputy Chairman of the Russian Central Bank, Oleg Mozhaiskov, told a meeting of the London Bullion Market Association in Moscow that western central banks had been rigging the gold market to the detriment of the developing world.
Mozhaiskov said that “although there are only a few reserve currencies, an appalling lack of discipline is demonstrated by the U.S. dollar. As things stand today, the United States is indebted to the external world to the tune of $3 trillion. This sum actually exceeds the total official currency reserves of all the nations of the world — including the USA. . . The evolution of the reserve role of the American currency in recent years gives grounds for a pretty pessimistic prognosis. The relationship between the state of the dollar and the value of gold is obvious. In relation to our discussion today, this means that gold continues to have particular monetary attraction in the minds of all prudent financial investors. . . .
The internal imperfections of the international monetary system (which I spoke about earlier) have already led to a number of regional financial crises and still carry the danger of larger upheavals. Under these conditions, the growing interest of investors in real assets, gold in particular, is more than justified.”
Might Russia and China use gold in order to undermine U.S. political and economic dominance?
There is certainly the possibility that they may use gold as a geopolitical weapon against the U.S. and as a way of furthering their growing global political and economic aspirations.
Putin’s endorsement in 2005 of the Russian Central Bank’s plans to diversify the Russian reserves out of fiat currencies and debt instruments and into gold bullion was seen by some as as much a political act as an economic one.

Putin’s overt and PR like choreographed endorsement of gold was replete with many interesting and highly unusual photos.
It was the first time in recent years that a head of state of one of the larger and more powerful G8 global players has expressly endorsed its central bank buying gold and probably the first time that a head of state has been photographed many times holding and admiring gold bullion bars.
Importantly, it was central bank buying that broke the back of the anti-gold cartel or the London Gold Pool in the late 1960s early 1970s. This paved the way for the massive bull market of the 1970s.
Putin’s calculated gesture may have been the most important statement on gold by a head of state since French President de Gaulle praised gold as the ultimate from of money and wealth: “There can be no other criterion, no other standard than gold. Yes, gold which never changes, which can be shaped into ingots, bars, coins, which has no nationality and which is eternally and universally accepted as the unalterable fiduciary value par excellence.”
Some have posited that Putin may have been sending a “shot across the bows” of the U.S. government as De Gaulle was doing some 35 years ago. Putin and many in Russia are increasingly nervous and wary of Washington’s increasing military and economic presence in what they have always considered their backyard – Eastern Europe, Eurasia and the Caspian.
Russia, like China and other ‘strategic competitors’ to the U.S. are aware of the predicament which the U.S. finds itself in. While it is the world’s remaining superpower and overwhelmingly superior to all its rivals in military terms, it has a dangerously exposed Achilles’ heel in the form of its fiat paper reserve currency, over dependence on Middle Eastern oil, its massive indebtedness and balance of payments issues.
Russia, like China, is now one of the U.S.’ creditors and thus has considerable leverage which it has so far chosen not to exercise. Should it do so there would obviously be a marked increase in geopolitical tension and the potential to create real instability in capital markets and even an international monetary crisis.
Given continuing currency debasement by the US and other debtor nations, the simmering currency wars of recent months may soon heat up.
SILVER 
Silver is trading at $31.16/oz, €23.55/oz and £20.15/oz
PLATINUM GROUP METALS 
Platinum is trading at $1,527.50/oz, palladium at $569.75/oz and rhodium at $1,575/oz.
NEWS
(Bloomberg)
Biggest Gold Hoard Ever Bolstering Bullish Bets From Traders
(Reuters)
Gold ticks lower; heads for 2nd straight weekly drop
(Reuters)
Gold profits from bargain hunters, euro gain
(The Guardian)
Medvedev: Russia will deploy deterrent to Nato missile shield – Video
COMMENTARY
(24HGold)
Adrian Douglas: Central Banks are NOT Ordinary Gold Investors
(Business Insider)
RICHARD RUSSELL: The Gold Skyrocketing Phase Still Lies Ahead
(ZeroHedge)
European Bailout Time Of Death: EFSF Cut In Half Due To “Market Conditions”
(ZeroHedge)
Pictures From A Latvian Bank Run As MF Global Commingling Comes To Town
(The Telegraph)
Death of a Currency as Eurogeddon Approaches
(NY Times)
In Nervous Market, Gold Gains Respectability (When was it disreputable?)

While you were eating Turkey on Thanksgiving, Fitch Rating downgraded Portugal to JUNK, from BBB- to BB+, with outlook negative.

Portugal’s 10-year yield has surged past 10% to 12.362% this morning on the news.

Now that each and every one of the PIIGS is in full-blown crisis/collapse mode, perhaps we can turn our focus to the big guys who are the next dominos- namely France, The UK, and the US
The Doc’s still waiting for his acronym to catch on.

FUK US PIIGS

Fitch Rating downgraded this Thursday Portugal’s rating from ‘BBB-’ to ‘BB+’ keeping a negative outlook citing fiscal imbalances, high indebtedness and adverse outlook.

The rating agency also lowered Portugal’s growth forecasts expecting gross domestic product to contract 3% in 2012 in light of the worsened European outlook. Besides this, Fitch says the state-owned enterprise sector is another key source of fiscal risk.
Read more:

JP Morgan’s big to acquire MF Global’s stake in the LME is now official, giving JPM an 11% stake in the PM exchange.
The Squid and The Morgue are now the #1 and #2 shareholders of the London Metal Exchange.

* JP Morgan becomes biggest LME shareholder with MF Global shares

* Takeover could mean big changes for the LME

* Floor trading, metals business models could be at stake

LONDON, Nov 24 (Reuters) – JP Morgan has dramatically boosted its influence in the battle to acquire the London Metal Exchange by increasing its stake this week to become the biggest shareholder.
JP Morgan Chase now has stronger input into any changes proposed by suitors while making a tidy profit from any sale, but retains the option to team up with others to block a takeover, analysts and industry sources said.
The U.S. investment bank won a bidding process to buy a 4.7 percent stake in the LME, the world’s dominant market for industrial metals trading, held by defunct broker MF Global Holdings.
The sale gives JP Morgan a stake of 1.4 million shares or 10.9 percent, jumping ahead of the former dominant shareholder, Goldman Sachs, which owns 9.5 percent.
Read more: