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.



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.