Commodity Trade Mantra

Is Silver Intentionally Being Drained And Diverted From The Retail System?

Is Silver Intentionally Being Drained And Diverted From The Retail System?

Is Silver Intentionally Being Drained And Diverted From The Retail System?

One of the rules by which the elite aristocrats abide is they consider it rude to not issue a warning before they do something bad to us. They’re like criminals with manners. In other words, it’s gauche to flush the toilet while the serfs are in the shower without giving a “heads up.” – John Titus, Best Evidence

I want to preface this post with the stipulation that it is, at this point, only a theory that may be completely off-the-rails.  But, then again, it might be simplistic enough to meet the requisite  explanative demands of Occam’s Razor.

Most commentators and bloggers do a fine job regurgitating and repackaging information and developments which have already become obvious.  But the large majority refuse to take the analytic and intellectual risks required to advance ideas based on “tracks in the snow.”  Or they may just not see or be aware of the “tracks” that have appeared.

I know that since it became clear to me in late 2001 that the U.S. population was under “attack” by the wealthy, power-hungry elitists who have gained control the system, I have been able to see how the economic, financial and political collapse of the U.S. was going to unfold with a fair amount of clarity by applying this think-like-a-criminal algorithm:  “what would I do next if I were a criminal that could operate unshackled from Rule of Law?”

Let’s start peeling this onion with two possible motives.  The simplest explanation for the retail shortage of silver, which is growing more severe by the day and is occurring in several locations globally (U.S., UK, Australia, Hong Kong, just to name a few from which I’ve received detailed reader accounts), is that the wholesale stockpiles are diminishing to the point at which the holders of massive paper short positions risk running out of bars to deliver to the entities holding the long side of short positions.

This wouldn’t be a Comex-specific issue, because very little metal is delivered on the Comex.  This would be an LBMA and OTC derivatives issue.  It’s one thing if there’s not enough silver to keep the mint supplied.  This just causes anger and angst among the tiny percentage of hoi polloi trying to convert their fiat money into real money.  No big deal from the Government’s point of view. (Note:  the argument that there’s production capacity issues at the refiners who supply silver blanks to the mints is disingenuous beyond the point of silliness).

But its an entirely different issue if there’s a major delivery default to strategic/industrial users and uber-wealthy barons in India, China and the Gulf State Countries.  If word leaked out of a default on that level, the price of would silver launch into orbit and the exorbitant paper short position put on by the bullion banks would incinerate the TBTF banks.

We know the “registered” silver vaults on the Comex started dropping fast in mid-March –

Graph1

But where is this silver going?  We also know that indications of retail shortages started appearing late-June, followed by an announcement from the mint that it was halting production and sales of silver eagles. The halt was remedied about three weeks later.

For the record, the mint announced a 20% cut-back in silver eagle production in August and another 20% cut-back in production on September 15:  US Mint Choking On Silver Shortage 

This suggests to me that domestically held silver in the United States is needed elsewhere to extinguish supply “fires” and the U.S. citizens can “eat cake” instead.  This would explain the sudden jump in U.S. silver exports to India, first discovered by SRSRocco LINK, in May and June.   If the the mint needs silver to produce enough silver eagles to meet retail demand, why is this silver being sold to India?

By law – this “law” was written in an era when the elitists were somewhat constrained by Rule of Law – the U.S. mint is required to produce enough silver to meet demand.   If silver that could be used to stamp silver eagles to meet demand is being exported to India – in the context of the registered silver stock at the Comex dropping like a dead fly, it suggests  perhaps  that the authorities are intentionally draining the retail silver distribution system in the U.S in order to meet demand obligations offshore.

Thus the first possible motive for draining the retail system of silver is, simply, that the silver is needed elsewhere, with adverse consequences if the silver is not delivered.

The second motive is substantially more insidious – and some might say “conspiratorial” – but equally as possible as the first motive.  Recall that there’s been discussion of eliminating physical cash currency and converting the western currency system into a digital currency system.  In fact, several somewhat influential Keynesian-influenced criminals economists have expressed strong support for this idea.

This falls into the “the elitists like to issue a warning before they do something bad to the population” category from the quote at the top.

The reason for draining silver from the system is that it represents a threat to the plan for imposing upon us an electronic fiat currency system.  Silver was actually used as a currency before gold.  Over time, silver became known as “poor man’s gold” because of the low worth per ounce relative to gold.  But because of its low relative worth, an ounce of silver is more fungible for everyday use a currency.   For these reasons, the sale of silver mint coins exceeds the sale of gold coins by about a 100:1 ratio.

If a large enough percentage of the population holds silver in large enough quantities, it is quite possible that the use of silver and gold would develop and an “underground economy” alternative to the digital fiat currency system being contemplated.   As long as only a small percentage of the population owns gold and silver, the Government can still impose control over the currency system and therefore the entire system without any threat of a black market alternative currency system based on metal.

Please recall that Paul Volker has said that it was a mistake for the Fed to control the price of gold when the U.S. dollar was devalued against the yen in 1973.  Furthermore, he recently referred to gold as “the enemy.”  And make no mistake, the prolific amount of anti-gold propaganda in the media this year is the Fed/Government’s premeditated and calculated effort to vilify gold as little more than “a Pet Rock” and thereby aggressively discourage the public from thinking about gold/silver as an investment.

If the Government can drain as much gold and silver from ready-access by the public at-large before a much larger percentage of the population understands gold’s value as vital protection against ongoing rampant currency devaluation, then the Government can avoid imposing the overt totalitarian measure of confiscating gold, like FDR did in 1933.

In short, the Government needs to remove gold and silver from the U.S. economic system in order to eliminate precious metals a competitive alternative to the plan for imposing an digital currency system on the country.

One last point, when I see  dubious representatives of institutions like the Perth Mint disingenuously attempting to dispel the fact there’s a silver shortage with long articles loaded with half-truths, distorted truths and willful omission of facts, I begin to suspect that the shortage is worse than is known.  This is true regardless of whether or not the two theories proposed above hold true.

 

 

Courtesy: Investment Research Dynamics

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