When you look at the math, especially the supply/demand and inventory/delivery “math” there is only one question that remains. The question is not whether the PM’s are grossly undervalued. It is not whether supply can meet demand. It is also not whether known inventories can continue deliveries at the pace of the last couple of years. The only question which remains is “when”. “When” does the current unsustainable and lopsided (soon to be proven fraudulent which yes, includes “intent”) business model of the precious metals market blow up in a default?
When does it end in the same fashion that every banking panic in human history has seen?
[Read more...]
The Million Dollar Question: When Does the COMEX Default?
Alasdair Macleod- What COMEX Default?
In this interview with AltInvestors, GoldMoney’s Alasdair Macleod discusses why the COMEX will NOT default, and what tricks the banksters may yet have up their sleeves to keep the paper metal futures markets functioning. [Read more...]
SGT Report UNBOUND: MEGA Precious Metals Update
This is a MEGA Precious Metals Update from SGT Report. The news is coming at us so fast and furiously (pun intended) that it’s hard to keep up, even for us. But here’s a half hour update dedicated to the very latest cartel precious metals manipulation news as we watch the end game unfold before our eyes: The COMEX default and economic collapse nears as 99% of ALL gold sales in the last 3 months was thanks to primary broker and agent of the FEDERAL RESERVE, JP Morgan. You can’t make this stuff up – it can ONLY happen when and if the collapse is at hand. [Read more...]
Andrew Maguire: Cyprus Was Straw That Broke the Camel’s Back- A Gold Default is Underway!
Whistle-blower and gold trader Andrew Maguire was on the latest Keiser Report, discussing last week’s gold and silver cartel take-down with Max Keiser. Maguire, who CPM Group’s Jeffrey Christian once claimed was a figment of Bill Murphy’s imagination, states that a gold default is underway & states that The straw that broke the camel’s back was the Cyprus issue.
On physical gold vs. paper promised Maguire stated:
If you think you are a holder of bullion, and you happen to turn up and ask for that bullion and you’re told, I’m sorry, we don’t have that bullion, you will have to take cash instead. Technically, that’s a default. If you read through the LBMA’s fine print, technically you can be settled for cash, however, that’s not what most people think.
You’ve either got something in your hand that you can klunk, or it’s paper. I don’t trust the latter.
Maguire’s full interview on the gold default underway is below: [Read more...]
Odds of COMEX Default Increasing Exponentially
A”default” can occur if too many longs stand for delivery. This very well could happen and the likelihood has risen in just the last 2 trading days as open interest has increased rather than decreased. If 10% of the longs stood for delivery in Silver, the inventory would be wiped out. The fact that the “drop” in price was CAUSED by new shorts opening positions rather than longs scurrying away tends support the case that the long position is a resolute buyer with deep, VERY DEEP pockets. If they hold in and meet the margin calls created by the price drop AND higher (18+%) margin requirements as of yesterday, the shorts and the exchange itself have a very big problem on their hands as the availability to deliver on the open interest just does not exist.
If open interest does not decline after the drop in price and this latest margin hike (and maybe more to come) the odds of longs standing in a big way for delivery increases exponentially. [Read more...]
Ann Barnhardt in 2011: When You See Metals Cash & Futures Price Decoupling, The End is Nigh!
Shortly after the collapse take-down of MFGlobal in October of 2011, Ann Barnhardt walked away from Barnhardt Capital Mangement, and published a prescient prediction on the coming collapse of the paper futures markets, as the loss of confidence by arbitrageurs in the paper markets would result in a decoupling of the cash markets from the futures markets. Barnhardt warned readers to:
Watch for the gold and silver futures to sell off as people walk away from paper, while the online cash dealers, seeing that market demand for their physical inventory is robust, begin to ignore the futures prices and hold their prices steady or even raise them. When you see this basis decoupling and absence of arbitrage, lo, the end is nigh. A parabolic spike is coming.
Exactly what we’ve seen in the physical silver market over the past week. Is the end nigh? [Read more...]
Force Majeure Was the End Game All Along, COMEX Will Default in the Next Week!
The COMEX will default in the next week or several weeks and people will be “settled” with Dollars, no more metal will be delivered! So, knowing that “game over” has arrived, they are dumping a massive volume of paper contracts with impunity to push the metals prices as low as possible before the “default”. This way the “shorts” do not have to and will not be “covered” when “supply” cannot be obtained because of “an act of God”. They will be settled in cash (at a profit no less) because these “unforeseen” disruptions in supply. “Who could have seen it coming?” will be the mantra. I would suspect that banking stress and “bail ins” will also become prevalent globally. The pricing structure” will now push any and all physical sellers away from the markets and the “door” to safety is effectively being shut. Either you own metal or you don’t.After the closure of the COMEX and LBMA doors there will be no availability and “price” will be meaningless. Your ability to protect yourself is right now for all intents and purposes being eliminated. [Read more...]
Force Majeure Inevitable as Silver Shortage Reaches Climax
The cash metals markets, particularly in Silver are tight. Premiums for physical over the paper price are rising and delivery times extending. This can only end one way, “cash and carry” will ultimately “price” these markets and a force majeuer will be unavoidable as the physical does not exist system wide (never-mind on COMEX) to satisfy demand.
Gold and silver will go through a short squeeze unlike any other ever seen. History will call this “hyperinflation”. Once started, just as in a wildfire everything will burn until there is nothing left as fuel for the fire! [Read more...]
THE FORCES THAT WILL PUSH SILVER OVER $100
*Editor note: With sentiment near all-time lows for the entire bull market, we thought it apropos to bring back SRSrocco’s viral, comprehensive FUNDAMENTAL ANALYSIS on the forces that will push silver over $100/oz.
PLEASE CHECK YOUR EMOTIONS AT THE DOOR AND REVIEW THE FUNDAMENTALS!
By SRSrocco
There are tremendous forces at work that will push silver over $100 an ounce.
According to the 2012 World Silver Survey, total global silver investment demand has risen from only 31.6 million oz in 2002 to a staggering 282.2 million oz in 2011. As world economic fiat based monetary system continues to deteriorate, investors are taking delivery of physical silver rather than holding on paper contracts that may not be backed by any metal whatsoever.
This has created a run on the LBMA… the largest metal exchange in the world. Once the world ‘s liquid energy supply starts its inevitable decline from its current plateau, annual silver metal production will decline as well. There will be no silver glut and there will be no silver available when the world’s fiat monetary system finally dries up and blows away.
Get ready. The forces for pushing silver over $100 have just begun. [Read more...]
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