Dear Silver Enthusiast...
Let me start off by saying that what I am
going to postulate should not in any way be considered fact...because I am
not in possession of proof. I am merely postulating on where all the mystery
silver comes from to be sold on the physical silver market. Since the early
2000's almost every serious silver analyst has been pounding the table that
there is no above ground silver available and it is the "buy of a
lifetime". But at the same time, silver prices never seem to live
up to their expectation. Of course, anyone with an ounce of common sense can see
that the COMEX and LME silver markets are rigged by a powerful cabal of
bankers (and others) that seem to be above the law (or more likely, in
collusion with the law), but at the end of the day physical silver must be
delivered for industrial applications and investors taking possession. So
where does it all come from? ....I think I may have stumbled upon the answer!
After a grueling day
of watching another COMEX silver rigging operation in late December, I turned
on the History Channel for some mindless entertainment. The program that was
running was called "Lost Worlds - Secret Cities of the A-Bomb" (you
can buy it here http://store.aetv.com/html/product/index.jhtml?id=76496). It was an investigative piece on the Manhattan
Project focusing on the Top Secret city that was built in Oakridge, TN and a
facility called Y-12. The program was interesting to me, but one part
specifically made me jump up out of my seat and run to my computer to find
out what it was all about.
During WWII, in order for the scientists to
enrich enough Uranium for the A-bomb they had to make the largest electro
magnet ever built. It would be called a Calutron
and according to the narrator, they needed many tons of copper wiring which
they claim was not available at the time due to war shortages. Instead of
copper they went to the US Treasury and "borrowed" 14,700 TONS OF
SILVER. (...of course silver is a much better conductor of electricity than
copper, so the copper shortage story was likely intentionally planted to
conceal the necessity of silver). 14,700 tons of silver is about 470,000,000 ounces
that were taken from the US vaults, made into silver wire and "busbars", and installed into the greatest secret
project in the history of the world. Let's call that "deep storage
silver" because, theoretically, the calutrons
could be removed and the silver melted back into bars. As a matter of fact,
according to the program and government statements, that is what was done in
It is interesting to note that the US Treasury
also announced a silver purchase program with Mexico in 1941 the same time
the silver was being transferred out of the Treasury to be used for Y-12.
Here is a picture of the silver magnets being
assembled and installed back in 1941:
Now here is a picture of their enclosures
taken with a low quality digital camera (likely mid 1990's):
The government claimed back in the 1950's that
there was a new gaseous way to enrich plutonium, which there was, and the Calutrons were not needed. But wait! There are many
articles on the internet showing that the Calutrons
were in full operation until 1993, then shut down for 3 years and restarted
in 1995. In
a March 1999 news release Oakridge Laboratories said they got an order from
the DOE to finally "retire" the calutrons.
"ORNL has received instructions from DOE
to shut the devices down permanently. Up until about a year ago, the calutrons were producing stable isotopes after resuming
operations in 1995 following a three-year shutdown."
The "official" line is that the
silver was returned to the Treasury in 1954, but I see no reason for that to
occur. The Treasury knew where the silver was and Y-12 was the most
important manufacturing facility in human history to that point. This was
classic disinformation on the part of the Treasury/Bankers. No way they would
risk the Calutrons not working so they never sent
the silver back, and Y-12 was operational until the mid-1990's
when other priorities developed in the silver market.
There were 32 Calutrons
with 8 of them used for plutonium processing. There was also silver used in
the "busbars" for Y-12. I'm no nuclear
scientist but lets assume
that the Calutrons used about 14,000,000 oz
each and the rest was used in the track. This is a stretch but my take is
they shut down the 24 non-plutonium Calutrons in
the 1993 "stand-down" and sent the silver back to Treasury to be
used to suppress the price of silver. This coincides with the
additional 10,000 tons of silver shipments to the UK from 1995-1998.
Then, with the Buffet purchase and silver
scare in 1998, they went back for the remaining 150M oz
of silver and announced the complete shut down of
Interestingly enough,Y-12 was brought back
into operation in 2005:
"The facility was not part of the
September 1994 stand-down in which virtually all operations at Y-12 were
halted because of safety concerns raised by the Defense
Nuclear Facilities Safety Board."
1) The Manhattan Project needed and received 470,000,000 ozs
of silver for the Calutrons in 1941.
2) There was no reason to "give
back" the silver in 1954 because it would just sit in a vault and the
enriched uranium was the most important item in the world to the new nuclear
super power. According to the program, enriched uranium was very difficult to
mass produce and the calutrons were the best at it.
3) The US could retrieve the silver when it
was needed it by dismantling the calutrons.
4) The calutrons ran
for 50 years without any technological obsolescence. http://www.ornl.gov/info/reporter/no1/calutron.htm
5) In the 1990's something changed such that
the US had to a) shutdown the calutrons for
three years b) bring them back on line for a few years c) then
completely dismantle them by order of the DOE.
6) From1995-1998 approximately 10,000
additional tons of US silver was exported to the UK to suppress the physical
silver market on the LME.
7) The mid 1990's corresponds
directly with the "strong dollar policy" (fixing of the commodity
markets by Greenspan, Clinton, Rubin etc.)
I believe 470,000,000ozs. of
silver that was being used as an essential secret component of the Manhattan
Project magnets to enrich uranium have been removed to assist in the price
suppression of silver. I also believe that the significance of this
occurrence can not be underestimated because it
means the powers that control the rigging of the silver market were so
desperate for physical metal in the 1990's that a strategic military
installation had to be dismantled to retrieve this "deep storage"
silver. I contend that over the past 10-12 years this silver was taken off
the market by industrial and investment users such that the silver ETF had to
be established (likely using the silver shanghaied from Buffett to save
General Re) in order to lease additional paper and divert huge flows of
institutional money into a black hole of non-backed paper silver (SLV). http://www.dollarcollapse.com/iNP/view.asp?ID=52
So where does that leave us?...Well, if 10,000
tons or 320m oz were needed from 1995-2001 and then
add to that the additional 150M oz from 2001-2006
we're looking at a burn rate of additional physical of 40m-50m oz per year on average. This is not scientific of course,
and it is escalating at a rapid pace because of the investor information on
On October 10, 2006, right before their
inventory jumped 20M oz in one day in December, the
iShares Silver ETF filed a new (revised) prospectus
REMOVING the world "Bullion" from all the references to
I would postulate that 100moz the silver ETF
held was leased out and consumed in a matter of 7 months or 15moz/mo, and at that rate the remaining 20m oz should have been gone by February and the silver price
suppression game is running on paper fumes.
Those are my speculations and although I have
no idea if I am right, it sure can explain where all the "mystery
silver" came from over the past 10 years.
Bix Weir is a self
proclaimed Foot Soldier in the GATA Army
Bix Weir is a freelance author and analyst dedicated to exposing the long
term manipulation of the gold and silver markets. He has worked closely with
the Gold Anti-Trust Action Committee helping to pull the curtain away from
the Cabal of International Bankers that have taken
control of our free market system.