We can expect a "force
majeure" to be imposed by the COMEX when
buyers will no longer agree to cash settlements as substitutes for the
physical silver delivery. The imposition of such an action will be - of
course - to ensure their banking co-conspirators are sheltered from financial
disaster. This crime will be disguised as a 'natural occurrence'.
The public will accept this explanation as truthful, and keep on moving,
while potential silver buyers and users will be on their own, or await a
government nationalization edict by executive order.
April 9, 2013 | By Tekoa Da Silva
A stunning piece of information was brought to my
attention yesterday. Amid all the mainstream talk of the end of the gold bull
market (and the end of the gold mining industry), something has been
discretely happening behind the scenes.
Over the last 90 days without any announcement, stocks of gold
held at Comex warehouses plunged by
the largest figure ever on record during a single quarter since
eligible record keeping began in 2001 (roughly the beginning of the bull
market). See chart
below.
Total drainage of physical inventories reached
nearly 2 million oz.’s of gold, which at today’s prices
represent roughly $3,000,000,000 dollars.
According to chart sage Nick Laird, this data indicates that, “Eligible stocks which are owned
in LBMA/Comex good delivery form are being drawn
down—which means they are being removed from the warehouses. As to how and
why they are [being] removed, that is a mystery. [Up until now], eligible
stocks were on the continual increase throughout the bull market. Now that
trend has changed.”
What is most interesting in reviewing this chart data, is seeing where the
largest drops have occurred. The largest inventory drainage is being
reported from JP Morgan Chase & Scotia Mocatta
warehouses. See charts below.
JP Morgan Chase’s reported gold stockpile dropped by
over 1.2 million oz.’s, or rather, a staggering $1.8
billion dollars worth of physical gold was removed
from it’s vaults during the last 120 days.
Scotia Mocatta’s gold
stockpile removals were nominal in size when compared to JPM’s, but
registered in at over 650k oz’s of gold,
or over $1 billion dollars worth of physical
gold was removed from its vaults over the last 90 days.
In further conversation with Nick on the implications of this chart data, he
commented that, “The owners have taken [their gold] offsite, and it’s
no longer stored in Comex warehouses…Has the bull
market ended? Are people taking their gold out of Comex
storage [because] of lack of trust? It’s a mystery, [but] I think it’s more
the majority of long term holders are taking their gold elsewhere…because
they no longer want to store at Comex.”
—
Bottom line: While mainstream voices question whether or not gold is
still in a bull market, smart money appears to be questioning something else.
They appear to be asking themselves, “Do we want to continue storing
our physical metal within the Comex
system? How can we best whisk it away from fraud, theft, or bankruptcy
(including our own)?”
The timing of this trend change is also quite shocking, as it’s happening
during a time in which public sentiment towards the metals are at their
worse levels in years.
The boy who cried wolf has certainly cried many times over the years with
regard to the Comex, but if there was ever a
time to be concerned of a major market event or default—now might be it.
—
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(Special thanks to Nick Laird for helping me on this piece.)
Thanks,
Tekoa Da Silva
Bull Market Thinking
Bull Market Thinking
