When the music stops….WHO’S GOT THE SILVER?
I’m hearing a lot of speculation in the silver world about a possible run on the COMEX inventories and I want to share my thoughts on this possibility. I too believe that we are in the midst of a run on silver BUT I do not believe it will be visible until the default is already done and gone. Religiously following the COMEX inventory withdrawals or delivery notices is NOT where the default truth will be revealed….NOT A CHANCE!
Hopefully, we all know by now that the COMEX/NYMEX is corrupt to the core and the CFTC facilitates the market manipulation by running a fake oversight operation. That has been fully analyzed, discussed and proven by many in the silver manipulation camp… but what about the actual physical silver those warehouses claim to possess? How do we know that the “Authorized COMEX Warehouses” are holding any metal at all?
Let’s first take a look at the COMEX Approved Warehouses and try to see who’s side they may be on….
There are 4 authorized depositories for COMEX silver and they are the Delaware Depository, Brinks, Scotia Mocatta and HSBC.
1) Delaware Depository - Currently holds 9% of COMEX silver inventory and is owned by FideliTrade which from their website “comprises the former precious metals investor service operations of Wilmington Trust Company, Citibank, Bank of America, Bank of Delaware and Sunshine Mining Company”. Although not a big holder of metal, the fact that the Delaware Depository is registered as a Delaware Corporation could give great tax shelters to corporations holding silver there. This is all well and good but the only time I see Bank of America’s name in the silver world is when they are delivering large chunks of physical silver on the COMEX (for example on 11/28/08 they were called to deliver 2,000 contracts or 10,000,000 oz!) Is it a coincidence that 10M oz equates to almost all of the silver in “their” warehouse? Maybe, maybe not but clearly a large, physical silver, long position was called for delivery and Bank of America was named as the counter party (short) to deliver.
2) Brinks - Currently holds 7% of COMEX silver inventory. At quick glance, Brinks is a legitimate security company without much history of cabal banking ties. I have no reason to assume that Brinks would have any motivation to lie about the amount of physical silver they hold in their warehouse. If I had to hold my physical silver in a COMEX warehouse (which I don’t) I would choose Brinks if only for their lack of banking ties.
So I am not too worried about the first two COMEX warehouses and although the B of A connection doesn’t sit too well with me, the amount of silver held in the Delaware warehouse is not enough to shake the foundations of silver manipulation. Together these warehouses only claim to hold 16% of the COMEX cache of physical silver. So far so good.
Now let’s look at the 2 major COMEX warehouses:
3) Scotia Mocatta - Currently claims to hold 29.6M oz or 23% of COMEX silver in inventory. Scotia Mocatta has long been suspected as a MAJOR manipulator by silver analyst Ted Butler (Fighting Back) and for me Ted Butler’s work is proof enough that Scotia is one of the “bad guys” in silver….So why should we believe them when they say they hold almost 30M oz of silver in a warehouse that nobody is allowed to audit except them? And while we’re on that issue, has anyone noticed that the Scotia Mocatta silver depository is located at the JFK Airport? How much of that silver is there or needs to be flown in/out to satisfy the global silver market manipulation machine? How much of that silver, so conveniently located next to the Virgin Airlines cargo loading, is pledged to the silver ETF that JP Morgan is the custodian for in the UK? Why should we believe Scotia Mocatta about anything? I don’t.
4) HSBC - Currently claims to hold 78M oz or 61% of COMEX silver in inventory. HSBC holds the mother load of physical silver at the COMEX approved warehouses. HSBC! Where do I start with these guys?! Just run a Google search on “HSBC Conspiracy” and you can start to connect the dots. Or you go to the best source IN THE WORLD for the history of gold/silver market manipulation….LemetropoleCafe.com! I ran a search in the Cafe search function of “HSBC” and found HUNDREDS of entries where HSBC was either involved in blatant manipulation, suspected of manipulation and even had employees ADMITTING manipulation going all the way back to 10/10/2000. Are we supposed to believe that HSBC is not lying when they report silver inventories of 78M oz in THEIR warehouse? If you believe in silver market manipulation you need to understand that the operation is global in scope and includes EVERYONE in the silver metal complex that could influence the operation. If you believe that HSBC is in on the manipulation operation you must seriously question their honesty in silver warehouse reporting.
Hopefully, after understanding how these facilities are connected to the banking cabal, you will look at the COMEX warehouse reporting with the proper amount of skepticism as the run on silver progresses.
As for the SLV inventory, once you read the Prospectus you can easily see that this ETF is nothing more than a market rigging mechanism by the banking cabal. This truth was made even more clear when iShares CHANGED the original Prospectus to REMOVE the word “bullion” from all references to silver. From that point on silver “held” in the silver ETF could be almost anything including certificates, pooled accounts, COMEX contracts, 90% silver, 50% silver, 0.001% silver….it stopped mattering.
And what’s that mysterious connection between JP Morgan controlling the SLV inventories at the same time they are MASSIVELY shorting COMEX silver (as exposed by Ted Butler (Real Story) to manipulate the price down? Did the CFTC justify the silver short manipulation by claiming JPM had access to the physical metal because they are the custodian for SLV so they could naked short to their heart’s content? Just because they have custodial responsibilities for a large amount of physical silver does not give them the legal right to manipulate the price of silver.
Who ultimately owns all that silver? SLV shareholders or the “Authorized Participants” who also have “pooled accounts”, metal loans, leases, swaps, etc.? As I exposed in my Road to Roota III article, there is a very blurry line between the COMEX silver inventories and the SLV inventories. David Kass of the CFTC should have never answered my emails and exposed this grey area (…since then Commissioner Bart Chilton has blocked all my emails!). It is my contention that not only is there a tremendous amount of double counting in those “un-auditable” inventories, but I highly suspect that there are multiple owners for EVERY bar that is controlled by the bullion banks. The regulatory agencies are well aware of these practices and the Morgan Stanley Silver Fraud shows just how prevalent this practice is.
Your average silver investor can have no idea how much physical silver is available with the 2 largest publicly reported holdings (the Delaware Depository and iShares Silver) being controlled and inventoried by the 2 largest banking cabal manipulators, JP Morgan and HSBC! So how much physical silver do YOU think is actually available for sale? My guess is a lot less than meets the eye!
Pile all this information on top of the fact that GOVERNMENT MINTS around the world have stopped the production of silver coins (which happens to be illegal in the US), the price of silver being cut in half by JP Morgan in a matter of months and a SERIOUS shortage of physical silver around the world and you’ve got yourself one genuine global silver market rigging conspiracy!
So my advise is KEEP UP THE FIGHT!
WE MAY BE LOSING BATTLES BUT WE’RE WINNING THE WAR!
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