|
Specifically,
at a time when actual silver inventories are at their lowest level in
centuries, the (supposed) amount of “bullion” these funds claim
to hold has singlehandedly resulted in “official” inventory
levels tripling in just three years – after plunging by 90%.
Today’s
market price is based upon these phony “inventories” despite the
fact that the bullion-banks who claim to hold all this silver are never
subjected to audits, to determine that they are not only holding enough
silver to cover their custodial agreements with the
“bullion-ETFs” - but are also holding sufficient silver to cover
the MUCH larger “short” positions of these Manipulators (see
“Silver Manipulation the worst in history – Ted Butler”).
Unless
and until there is such a full and complete audit, the only rational
assumption for investors is this supposed “tripling”of
inventories is totally illusory, which also means that the
“bullion” that is claimed to be held by these bullion-ETFs is
also illusory.
As I
have also mentioned before, it is elementary economics than any
“good” which is undervalued will be over-consumed (relative to
its current price). Thus, we have TWO extremely important dynamics which are
setting up this sector for a final “implosion” of the criminal
conspiracy by the anti-precious metals cabal.
First,
price-suppression means the (actual) tiny inventories of silver are still
declining not increasing. It is simply absurd to claim that with record,
investment demand and declining mine production (due to the dramatic cuts in
base metals production) that inventories are increasing. The under-pricing of
silver simply confirms this trend.
Secondly,
with real inventories only 1/3rd of what is claimed by the Manipulators,
continuing to under-price silver (through continued manipulation) must result
in a supply “squeeze” which inevitably causes the price to
“spike” (and begin to correct toward some sort of medium-term
equilibrium). Given that there has been no similar depletion of gold
stockpiles (merely the transfer of ownership), it is far more likely that the
final defeat of the anti-gold cabal will be accomplished via a default in
silver markets.
The BIG
question in the minds of all precious metals “bulls” is when and
how will this final victory occur?
Many
commentators have pointed to the rigged Comex markets in New York as the
place where the final destruction of the Manipulators will occur. However,
with the short positions of the bullion-banks, and their (supposed)
“custodial agreements” with the bullion-ETFs being “two
sides of the same coin”, then implosion could originate in either
component of this fraudulent manipulation.
A
bullion-default at the Comex (or “Crimex”, as some like to call
it) is a very simple scenario. The Comex is essentially selling its phony,
“paper” futures for less than any other bullion market. Thus, at
some point, large buyers will simply step into this market and continue
relentless, heavy buying until default occurs.
Specifically,
there would be a “failure to deliver” of bullion to a buyer (or
buyers) - who chose to hold their futures contract until expiry, and thus
take “physical” delivery of real bullion. As has been reported by
several commentators, apparently such a default nearly occurred just weeks
ago (see “Did ECB save Deutsche Bank from Comex gold-default?”).
There
has been a great deal of frustration among the “gold bugs” (in
particular) that such a final “show-down” has not already taken
place. However, perhaps we would all be more patient in this respect if we
were to try to put ourselves in the position of such big
“players”.
Tom Szabo
Silveraxis.com
Also by Tom
Szabo
Tom Szabo introduces The Metal Augmentor, which will be the detailed coverage of mining equities from junior
explorers to major mining companies.
Subscription is
US$ 87 per year, and you will receive in addition the Mining Equities
Report: Cash is King?" which includes the following :
- Coverage of over 30 exploration and mining
companies trading near or below cash value
- Technical analysis charting on 25 of these
companies
- A robust, interactive Excel file
- Over 60 pages of material
- Free access to future, updated editions
Please click here to subscribe or for more
information about the Metal Augmentor.
Copyright © SILVERAXIS.COM 2006
| 
