For a few frenzied minutes, while everyone was sleeping, the price of silver spiked 56 cents. Well, at least the West Coast of America was sleeping. It began at 8:30 in New York, where presumably most traders were not sleeping. And of course, it was afternoon here in London (where Monetary Metals just held a seminar). The catalyst was a news release: the non-farm payroll numbers.
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.
COT Silver Report - October 2, 2015
A recent Reuters report about surging silver coin sales all over the world (click here) has precious metal investors wondering if this is not an early sign of the sort of increased physical metal demand that would surely precede another big take-off in silver prices like in 2009 to 2011 when silver rocketed from $8.50 to $49.50 an ounce, still just short of its 1980 all-time high.
In an ironic twist of fate, the mining conglomerate Glencore is seeking to pay down its massive debt by selling future gold and silver output. While this is only part of its solution to pay down a third of its $30 billion in debt, it’s quite interesting that the company is selling forward production of two of the most despised monetary metals in the Mainstream Media.
These stock market rallies are driven by the expansion of the money supply, causing a big increase in value of paper assets (including stocks) relative to real assets. When the increase in credit or the money supply has run its course, and is unable to drive paper price higher; value then flees from paper assets to safe assets such as physical gold and silver, causing massive price increases.
The global silver-coin market is in the grips of an unprecedented supply squeeze, forcing some mints to ration sales and step up overtime while sending U.S. buyers racing abroad to fulfill a sudden surge in demand.
Someday, the nightmare for Precious Metal holders will end – perhaps, in 2016 – for having not only been right, but for the right reasons. Although, per what I wrote last week; yesterday; and countless other times over the past four years, not necessarily for “paper PM investments.” The difference being, of course, that TPTB cannot manufacture gold and silver. Conversely, they can “manufacture” as many mining, ETF, and closed-end fund shares; futures; options; and even unallocated bullion storage certificates as they want, in their aim of quashing PM sentiment amongst the millions of uneducated investors that have been brainwashed to believe dollars, Euros, and Yen are money; silver, an “industrial metal”; and gold, a “barbarous relic.”
While the Mainstream Media and Financial Network hacks delude Americans into believing the Fed and U.S. Treasury are in control of the financial and economic system, investors continue on a record eight-year buying spree of silver. This multi-year silver buying trend is unprecedented in history. Precious metal investors need to understand just how different this current trend of elevated physical silver demand is compared to previous periods in history.
Another day passed, and another day closer to the cataclysmic end of hope that a return to “normalcy” as we have known it can be regained; not in this generation, and not until the cancerous fiat currency Ponzi scheme that caused the world’s economic demise is destroyed.