Oil's energy contribution has declined by about 12% since 1999. The world's economies have also declined by about 12%. (Using conventional metrics, which are time delayed determinations, this will only be seen in hind sight). The massive destruction of asset values now occurring testifies to it happening.
Peak is well behind us, world economies have peaked and will continue to decline.
Posted: Tue Sep 30, 2008 10:37 am Post subject: Unprecedented and New Silver Investigation Announced!
All things financial are upside down and spinning like a tornado out there. This stage will pass and the markets will once again make sense. Unfortunately, the sense they make will shock people.
At some point, commodities will explode like they never exploded and the global system will never be the same. No society or economy or family will be unaffected.
Silver, I believe, will be a star performer among commodities. The fundamentals of dwindling supply (above and below ground) as well as diverse inelastic demand (from industry) as well as parabolic potential demand (from monetary shelter seekers) are for it. The 27+ year illegal paper short manipulations against silver by the elites will come to an end and the elites already know that and that is why they have already hoarded most of the stuff even while they manipulated the price downwards.
But this obviously illegal manipulation may soon have an investigation. The below article says. And a few proxy investment houses might be sacrificed by the elite printers in tihs next move. And depending upon how the current investigation goes, there may be a trigger soon after that will rocket silvler by multiples, like ten times or so upwards to a place where its price clears actual market demand realities of our times.
We shall see. No promises, but this is the type of scenario I am basically expecting from commodities in general and silver specifically as we round petrocollapse into the age of enduring deficit we may call the "Great(ER) Depression".
Not only is it rare for the CFTC (or any government agency) to reveal a serious active investigation, it is unheard of to reveal an investigation of a potential crime in progress. If a regulator suspects a crime in progress you would assume the regulator would first end the suspected crime and then finish the investigation. If the regulator didn't think there was a sufficient evidence of an ongoing crime, then why reveal that an investigation has been opened?
snip....
Quote:
When I first uncovered the data in this report, a little more than a month ago, I couldn't believe my eyes. I had studied the data in previous Bank Participation Reports for years, but that's because I'm a silver data junkie. This is usually a nothing report. In all the years I studied this data, it seemed like a waste of time. It was an obscure report that I never heard anyone ever refer to before. But the data in the August report was so disturbing that, in order to make sure I wasn't imagining things, I asked two trusted associates, Izzy Friedman and Carl Loeb, to review the data with no advance suggestion from me as to its meaning. I wanted their unvarnished opinion.
When they confirmed that this was the clearest case of manipulation possible, I faced a new dilemma. I was inclined to believe that the data was in error. I suspected the CFTC would retract the data. So I was worried about being publicly embarrassed for making a big deal out of what may have been a clerical error. But the more I matched this data against the weekly Commitment of Traders Report (COT) data, I could see the data was accurate. Certainly, if the data was incorrect, the CFTC would have said so by now.
The data is clear - one or two U.S. banks sold short the equivalent of 140 million ounces of silver in one month. That's more than 20% of world annual mine production. Less than three U.S, banks sold more than 10% of world annual mine production of gold simultaneously. The price of silver and gold then collapsed by an historic amount. These same banks have used the sell-off as an opportunity to buy back as many of their short positions at a giant profit. Those are the facts.
It is important to put these numbers into perspective, in order to appreciate their significance. One way to do that is by comparing what just took place in silver to other commodities. If one or two U.S. banks sold short, in a period of one month, the equivalent of 20% of world annual production of corn, that would equal one million futures contracts. (25 billion bushels x 20% divided by 5000 bushels). Since the entire open interest in corn futures is one million contracts, a sudden short sale of that amount would crush the price.
If one or two U.S. banks sold short 20% of the world annual production of crude oil, that would be the equivalent of 6 million NYMEX futures contracts. (30 billion barrels x 20% divided by 1000 barrels). Since the entire open interest on the NYMEX is around 1 million contracts, a sudden sale of 6 times that amount would drive the price of oil to ten cents a barrel. It would also be market manipulation beyond question.
The CFTC doesn't need to investigate. They only need to explain why their own data fails to prove manipulation in silver and gold. Save the taxpayer some money and all of us some time. This needn't take days, weeks, or months. This should take, literally, minutes. Why maintain and publish the data in the Bank Participation Reports if the CFTC won't recognize an obvious manipulation that is a crime in progress.
THE COTS
The latest COTs confirmed the one thing I was hoping and expecting them to confirm, namely, that the biggest shorts continued to cover their short positions in gold and silver. What makes their short covering most noteworthy is that the buybacks in the most recent report occurred on a sharp rise in price, some $3 in silver and $120 in gold for the reporting week. This tells me that the big short, the U.S. bank(s), is serious about getting out of as much of its massive silver short position as it can.
From the time of the August Bank Participation Report, the big shorts have now covered nearly all of the gold short position put on during July. Therefore, the manipulation in gold was a complete success. In silver, while the manipulation must be considered a success, because the big short has covered an impressive amount, it has not covered all of its manipulative short position. In looking at the structure of the COTs, it does not appear to me that much further liquidation can occur to the downside. To say that the COTs are structured bullishly, would be a gross understatement.
snip....
Quote:
How many reasons does one need to load the boat with silver?
Posted: Tue Sep 30, 2008 11:02 am Post subject: Re: Unprecedented and New Silver Investigation Announced!
Fantastic post directinfo! I have been reading up on Silver for the last few days and considering converting my toilet paper into silver. One blog I have paid attention to is Canadian Silver Bug, who has time after time pointed out the shortage of physical silver everywhere while silver is only at $12-13 an oz. Can anyone recommend a good source of physical silver near Stuttgart? Even ebay the pickings are slim and selling 2-3 times silvers actual price. _________________ April 2008 Global Population: 6.8 billion
April 2010 Global Population: 7 billion
April 2012 Global Population: 7.2 billion
Posted: Tue Sep 30, 2008 11:04 am Post subject: Re: Unprecedented and New Silver Investigation Announced!
You're right, of course. The price is artificially low right now, in order to shake out the long positions so the big players can swoop in and take physical possession. Once the paper market collapses, we will see $100/oz.
I just wish I could find some local dealers with something in stock. Even with $6-7 premiums, it's going to look like a giveaway 6 months from now. _________________ The whole of human history is a refutation by experiment of the concept of "moral world order". - Friedrich Nietzsche
Posted: Tue Sep 30, 2008 11:20 am Post subject: Re: Unprecedented and New Silver Investigation Announced!
If there is a Scotiabank in Stuttgart then perhaps you can buy silver Maple Leaf coins there. I recommend the Maple Leaf silver and gold because it is .9999 pure.
I've been buying silver for some time now, for wealth preservation rather than speculation. _________________ Gravity is not a force, it is a boundary layer.
Everything is coincident.
Love: the state of suspended anticipation.
To get any appreciable distance from the Earth in
a sensible amount of time, you must lie.
Posted: Tue Sep 30, 2008 11:31 am Post subject: Re: Unprecedented and New Silver Investigation Announced!
RdSnt wrote:
If there is a Scotiabank in Stuttgart then perhaps you can buy silver Maple Leaf coins there. I recommend the Maple Leaf silver and gold because it is .9999 pure.
I've been buying silver for some time now, for wealth preservation rather than speculation.
I will have to have a look thanks RdSnt. I also started looking into silver as a form of wealth preservation now that I am earning twice my expendatures. It would be a shame to be so frugal and have it all destroyed by inflation. But I am convinced it will rocket up in price soon. I missed my chance a number of years ago when gold was at $300 and I got given so much advice to buy. _________________ April 2008 Global Population: 6.8 billion
April 2010 Global Population: 7 billion
April 2012 Global Population: 7.2 billion
Posted: Tue Sep 30, 2008 12:44 pm Post subject: Re: Unprecedented and New Silver Investigation Announced!
The RCM has either stopped producing silver maples or is so far behind the curve that they are only filling existing orders. Either way, your chances of getting silver maples direct from the RCM are just about nil. Paying 2X the spot price on eBay may be your only option. _________________ Drive to work... work to drive!
Posted: Tue Sep 30, 2008 1:05 pm Post subject: Re: Unprecedented and New Silver Investigation Announced!
God I hope so. Seems like every time I buy any it quickly plummets. _________________ "We were standing on the edges
Of a thousand burning bridges
Sifting through the ashes every day
What we thought would never end
Now is nothing more than a memory
The way things were before
I lost my way" - OCMS
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