It took awhile, but W was right about silver

Back in July of last year, V and W were guests on numerous radio shows talking about an insider code that was issued pointing towards a globalist play for silver.  At the time there was no complete blueprint on how the precious metal would be used for the purposes of the elite, but all indicators pointed towards silver being an important factor in the future as the fiat currency system rushed towards a time of reset, or even collapse.
And while it has taken more than a year for silver to show its importance in monetary policies both home and abroad, the forecasts and insights of W are now rearing themselves with blinding speed, and the 15 month window that was given over a year ago may suddenly be closing as there is hardly an ounce of metal available for anyone who wants to purchase it.

INDIA vs COMEX: Physical Silver Demand Will Destroy Paper Rigged Markets

If there’s one chart silver investors need to see, it’s the INDIA vs COMEX chart.  This chart puts into perspective just how little Registered silver remains at the Comex warehouses.  In addition, Comex Registered silver inventories continue to fall as two large transfers were reported over the past two days.

If we go by the Comex Registered silver inventory update as of yesterday (Wednesday), it held 44.3 Moz in its warehouses… this translates to 1,385 mt.  Again, in just the month of August, India imported more silver (1,400 mt) than the total remaining Registered silver inventories (1,385 mt) at the Comex.

However, the Registered silver inventories are now at 43.7 Moz.  Which means, the present trend shows an average decline of 5.3 Moz a month.  This is nearly three times greater than the 2010-2011 trend.  This should wake up investors to the fact that… SOMETHING IS SERIOUSLY WRONG in the market.

Nature always abhors a vacuum, and when India instituted capital controls on gold importation it was quickly filled by citizens buying silver in massive quantities, beginning about the time W made his forecast of silver being in play.

U.S.-India-Silver-Imports-vs-World-Mine-Supply
U.S.-India-Silver-Imports-vs-World-Mine-Supply

Graphic courtesy of SRSRocco

Glencore: MF Global on steroids

In recent weeks, commodity desks like Glencore and Trafigura have been under immense pressure due to the deflated prices in nearly all metals and commodities.  As an institution that runs the gambit for credit default swaps (CDS’s), their downgrades and the sudden death of Trafigura’s founder has led many to cite their struggles as perhaps being the next ‘Lehman moment’, or at best a replay of MF Global where balance sheet holdings in toxic assets could quickly bring insolvency should the markets turn by just 5%.

Glencore’s unprecedented action was in direct response to an S&P downgrade warnings from the previous week, which threatened to strip the world’s biggest commodity trader of its critical investment grade, BBB rating, which would have dramatic and adverse consequences on the company’s trading operations: thing an AIG-like collateral waterfall. The S&P warning is also why last week the company’s CDS blew out all the way to 450 bps, the widest since the financial crisis. – Zerohedge

Glencore CDS
Glencore CDS

Is it 1979 yet?

During the stagflation days of the late 70’s, the move towards record gold and silver prices was due in part to the Hunt Brothers, and geo-political events in Afghanistan and Iran which threatened the fledgling petro-dollar system that was just six years old.  The response of course was a large move by the public into physical metals, which ironically ended about the time the propaganda media started its End Apartheid movement and forced dealers to stop the sale and import of South African Kruggerands.  And what was interesting about this era was that the purchasing of foreign gold and silver coins was more popular in the 70’s and 80’s than the purchasing of American Eagles were.

And like most Americans, who have this idiotic tendency to buy high and sell low in nearly all markets, they will not see the merit of getting into physical gold or silver until it is ‘1979’, and the price and inventories are well beyond their ability to purchase in an affordable manner.

And today is again 1979.

The public didn’t get involved in buying silver until the later part of 1979 and 1980.  Unfortunately, this was at the time the price of silver peaked at $49 an ounce.  As the price of silver fell to $4.98 in June 1982, so did silver investment buying.  However, buying picked up once again later that year due to several circumstances:

W’s omens and forecast from a year ago are now coming to fruition, and much more than gold, silver is the metal that is in play, and could be a catalyst that brings down the dollar and the global monetary system far better than its older brother can.  And while it is important to have a stake in the yellow metal for functions not applicable for the white metal to deal with, survival and sustainability in what is coming may hinge on how much silver all of us were able to garner as the trough sits at near zero.

16 comments

  1. Darn you Ken this is a portion of what my article is about, but with a manufacturing angle, and yes you are so right “W” hit on something. In fact I think it may be even bigger than I realized (the reason for my installment angle). Trying to crystallize my final writings.
    Great stuff my friend, as always you are a trend setter.

    Wolf Gray

    1. That’s where the term ‘Born with a silver spoon’ came from. Kids in rich families were fed these food in the pre-microwave, pre-refridgerated era, with Silver spoons, the silver killed the bacteria. Those that weren’t (poor families who couldn’t afford Silver) usually died before their first birthday.

  2. Great news for all of us who have our little stacks of Ag upon reading about these new developments regarding silver and the global financial world here in your article, Kenneth. I also just read the one by Wolf too. I think that you two RM staffers are psychically brain fused! :-)I had read SRSrocco’s article recently about the ‘Record 8-Year Silver Buying Intensity’, and as SloopyJoe mentioned above about colloidal silver, there are so many uses for the stuff both here on earth and as we head out to colonize other planetary worlds. I recently saw this list of 101 uses of silver in everyday life:

    1. Myrna,
      You might find this video interesting. I can’t vouch for the cancer cure claims, but I can vouch for the extended life of liquids. Bacteria is what causes various drinks to spoil. Silver kills/inhibits the bacteria growth. There are ancient stories of seafarers 1000s of years ago who would put a Silver coin in a barrel of wine for the many months at sea. No spoilage = happy sailors.

      https://www.youtube.com/watch?v=W_-Jp28XIwY

      I erred above. I meant to say that Colloidal Silver is the original Antibiotic not Anti-Bacteria. Colloidal Silver was still widely used early last century until the Shekel hunting Pharma companies got involved.

  3. “And like most Americans, who have this idiotic tendency to buy high and sell low in nearly all markets, they will not see the merit of getting into physical gold or silver until it is ‘1979’, and the price and inventories are well beyond their ability to purchase in an affordable manner.”
    Dr Jim Willie: If they can find any!

    “And while it is important to have a stake in the yellow metal for functions not applicable for the white metal to deal with, survival and sustainability in what is coming may hinge on how much silver all of us were able to garner as the trough sits at near zero.”

    For those outside the United States, the degree of collapse or recession will vary from country to country and together with the unknown final pricing of Silver this means uncharted territory for where someone with a Precious Metal Silver investment will want to do with his rewards.

    “If we go by the Comex Registered silver inventory update as of yesterday (Wednesday), it held 44.3 Moz in its warehouses… this translates to 1,385 mt. Again, in just the month of August, India imported more silver (1,400 mt) than the total remaining Registered silver inventories (1,385 mt) at the Comex.

    However, the Registered silver inventories are now at 43.7 Moz. Which means, the present trend shows an average decline of 5.3 Moz a month. This is nearly three times greater than the 2010-2011 trend. This should wake up investors to the fact that… SOMETHING IS SERIOUSLY WRONG in the market.”

    COMEX doesn’t cover the global Silver being mined. India has to be sourcing it from somewhere else. Central Asian states that are being opened up to the Silk Road also produce Silver, although far less than Mexico, Australia and the famed South American countries.
    (Scroll down to Production Areas: https://en.wikipedia.org/wiki/Silver_mining )

    So much lies its hard to say what’s going on.

    Will the real Silver Supply please stand up, please stand up, please stand up….?

    1. Well, Jim Willie says the junk silver is going straight to refiners now. I have no idea if there is enough of this to fill demand. that’s a helluva a lot of cull coins and silverware.

  4. Great post Ken!!! One thing that I will say about the Junk Silver market it is the most thinly traded market in the world. About one year ago I have a a client purchase $700,000 in junk silver that is over 50x 50lbs bags at that time. That single purchase alone dented the market and caused premiums t skyrocket. My client will be sitting pretty when all this is over. I believe there are less than $400,000 in junk silver available at any one time in this country. Compare that to almost 2 years ago when there were about a $1 million plus at any given week.
    Times are changing and changing fast. Silver will be the commodity backing currencies from Mexico down to Argentina so much of Central & South America. The US? Well we will have two devalued fiat currencies to play with and a fire sale on our infrastructure to pay back the debts we owe. Prep Up and Step Up…Keep Stacking.

    1. I would have preferred to be further up the rankings when it comes to stacking in PMs like that $700,000 client (total I’ve spent so far is less than $40,000), but its better than nothing.

        1. Just that I recognise that this is a once in a very long lifetime opportunity, and its frustrating when I can’t do more to exploit this opportunity.
          Some of the money has to go into stacking canned food and instant noodle type stuff, in the unlikely (but not entirely impossible) case a US dollar collapse also guts the Singapore dollar (since almost all currencies are pegged to the US dollar since Bretton-Woods) to the point that hyperinflation is seen in the supermarkets for some time.

          After all the corporatists in the Singapore Govt just signed the country on to TPP so I don’t know WTF is going on with this country that’s also having large Gold Vaults (that by the way also serves Karatbars clients) and having FTAs and AIIB proposals with China.

  5. Well even if there is no physical silver for sale at all, the paper price of silver will still be low for years if the cabal ain’t removed.

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