I have a little theory that I’ve been kicking
around for a couple of years. The
theory is that there will come a time that you will not be able to buy silver
at any price. It will not be because there is not any silver
around to be purchased or that silver will not have any value. I think that
we won’t be able to buy silver at any price because there will be a
very sudden and a very dramatic shift in the perception of silver’s
value. A time will
come when the value of silver is so strong and the value of the dollar so
weak, that only a fool would ever trade silver for the dollar.
I have stated in many previous articles that silver is the Achilles Heel of the Global Power structure. This honest money will not only bring down the fraudulent banking
system, but it will bring down all of the forces that are a scourge to
humanity. You see, without a corrupt monetary system, trillions of dollars
will not be available to fight needless wars, fund Wall St schemes and a
myriad of other horrible events.
Right now, we have two separate forces fighting over
a precious, limited and diminishing resource called silver. In one corner, we have the Elite that know that they have Quadrillions
in paper assets riding on the perceived value of the dollar. They use that
wealth to control politicians, armies, natural resources, medias,
corporations, capital markets and ultimately you. They can sustain unlimited
paper losses to keep the game going. The problem for them is that their
infinite money is running into a very finite world, especially in silver.
In the other corner is an increasingly Aware group
of people, that know that the end is near for the
dollar. Fathers are worrying about how to
secure their family’s future and mothers are concerned about rising
food and fuel costs. Business owners are starting to see that they need to
protect their assets. Investors are worried about rigged markets and
inflation destroying their returns. Corporations are becoming increasingly
aware that their market capitalization might be at risk if they do not have
the materials necessary to make their products. Even nations like China are
seeing the value of this strategic resource. This Aware group sees that
owning tangible assets is the best strategy to not only
defeat this enslaving system, but also to protect their wealth. No
other tangible asset in the world is as attractive as real, physical silver.
(Read the Silver Bullet and the Silver
The Elite use a multi-pronged attack on silver to
hold it down. All of their weapons are nothing more
than paper tigers. The Aware have found that by taking physical delivery of
silver, the Elite’s powerful weapons are rendered useless. Actually
even worse than useless, these paper weapons actually help the Aware to buy
more physical silver at discounted and subsidized prices, hastening the
Elite’s ultimate demise. Keep
those shorts coming and we will keep stacking!
As a result of this battle, the CRIMEX now has less
than half of what it had in registered inventory than it did at the bottom of
the Bear Trap of 2008. In July of 2008 there were 87 million ounces in the
registered CRIMEX vaults. Today, there is just over 40 million ounces left.
The trend line is dramatically down even as the price of silver spikes up.
Less than $1.5 billion would empty the CRIMEX of the last bit of silver at
current prices. With no
silver to deliver, the jig is up for the Elite.
The Silver Door is closing on this game and I feel
it could happen by the end of this month. I
made the prediction
that silver would be $50 by the end of March but I also said that it might
not be available at any price. Both of these predictions center around a physical silver default at the CRIMEX. This would
be the equivalent to a bank run where people turn in their receipts/contracts
to get their money/silver only to find out that there are much more
receipts/contracts than there is money/silver. We all know that banks run on
a fractional reserve banking system. According to whistle blower Andrew
Maguire, the CRIMEX/LBMA are trading 45 to 1 paper
versus real metal. Got physical?
The first part of my prediction may have already
come true with $50 silver according to this article. It was reported that Blythe Masters offered a deal that no trader could refuse. She offered an 80% premium NOT to take
physical delivery of silver in March. The trader was told
that JP Morgan could not deliver 20 million ounces (4,000 contracts) and that
if the trader did not take this pay off, they would be left holding the bag
as an unsecured creditor. Vito Corleone would have been proud of Blythe with this offer. Of course this is all rumors at this point, but where there is
smoke, there is fire.
Another interesting twist in this silver saga is
noted in this article form Along the
Watchtower. There are claims that JP Morgue, through silver derivative bets, could
have exponential loses when silver goes above $36. They estimate that if
silver goes to $50 they might be out $40 billion. And that is IF they don’t cover
their shorts! The article claims JPM has a $170 billion
market cap with $40 billion in cash. That means if silver goes to $50, JPM
will be insolvent. (That is IF the Fed doesn’t give them their own QE3
or IF JP Morgue does not set up Enron like banks to dump these bad positions
into in the Caribbean.)
We can see the inventory of silver they are able to
deliver is depleting, which is one side of the closing door. The other side of the
closing door is as the silver’s price rises,
the more silver goes into Aware hands. The further the price of
silver rises, the larger the floor there is for the silver market. Buying
silver is not like buying a stock, bond or any other asset. It almost has a
cult like following that is growing stronger every day. Some buy for the
financial opportunities. Some buy as a way to “stick it to the
man.” Some buy for the honesty of the money. Some buy as a preservation
of wealth. For me, it is a shot in the next American Revolution for freedom.
There are hundreds of reasons to buy silver but very few reasons to ever sell
for dirty green pieces of paper with “all seeing eyes.”
The total amount of silver production sold short
between the 8 largest banks equals 150 days of world silver production. If silver starts marching up and these banks are forced to not only
cover their paper shorts, but also deliver the real physical silver, this will cause the largest short
squeeze the world has ever seen. This will cause severe
dislocations in the world’s economy to say the least. I believe will
coincide with a crash in all of the world’s fiat currencies. At that point the Silver Door will then
Sooner or later the silver door will be
shut, as all of the physical silver sits in the hands of the Aware. The Aware will not sell until a new paradigm of freedom comes into
existence. They will not care about a world wide
military empire. They will not care about public pensions. They will not care
about vampire squid banks on Wall St. They will not care about sock puppet
politicians and their budgets. They will not care about propaganda from
controlled media. They will hold, because they will then have the power.
“He who has the
silver, makes the rules.” -Chris Duane
When the Silver Door is closed, you will hear a
deafening silence from around the world. When
there is a silver default on the CRIMEX, the Elite will be forced to admit
that they have been playing a huge game of illusion. Everyone will then know
the world has changed, forever. Those who do have silver will be awe struck
at their new found wealth they now have. They will have hit the lottery
because the real purchasing power of their silver will rise astronomically.
They might be able to trade 1 ounce of silver for 1 ounce of gold. They might
be able to pay off their mortgage with a few ounces of silver. They may be
able to buy the entire Dow Jones share for a handful of silver.
“It is better to be 6 years too early than 1
day too late on this silver rocket.” -Chris
I believe that we are in the beginning of a Mania
Phase in this silver bull market as I said in my article the Silver Rocket. If we are in the Mania Phase, the game
has changed already. Things that worked in the past will no longer work in
the future. Traders that don’t see this sea change will either be left
off of the rocket or burned. Those that short silver with leverage in the
Mania Phase will be wiped out as the market stays irrational longer than they
can stay solvent. Ultimately these silver shorts are the ones that will send
silver to the moon because they HAVE to buy or risk bankruptcy.
Silver traders may sell silver at a
“top”. When they see the silver price keep going higher, they
will get back into the market buying less silver for more money. They will
learn this hard lesson once. When they get back into the silver market they
will stay in.
I have had my run ins with more than one silver
trader who has said that it is frothy and it time to short silver. The very well respected David Morgan thinks we are going to have a pull back in silver. Even one of my favorite analysts of
the silver market, Adam Hamilton of Zealllc., is saying we are in unprecedented territory as silver is 50% over its 200dma.
Even the very fact that I am spending so much time talking about silver in
this delivery month of March, would seem very bubble like. For the reasons
stated above and many more, I think we could be seeing the Silver Door
closing. If that is the case, then these traders could be in a very dangerous
I would caution traders that silver has or will
decouple from the control of the Elite into the hands of the Aware. If you are taking “FRN profits”, that is one thing. If
you are shorting silver, like some guys I know, be prepared to be swept up in
the largest short squeeze of all time. (Remember, you don’t have the
luxury of the Fed’s printing press to back you up.) If we are truly in the Mania Phase of
the Silver Rocket, there might not be a way back into the market.
I would also caution silver buyers, do not ever use
leverage in this most volatile of commodities. Stick to physical
silver in your possession only. I watched my holdings take a
60% hit in 2008. Thankfully I was in physical and knew enough to buy more
when silver was on sale. If I were buying today and did not have a single
ounce, I would be buying a good first shot right now to have something. I recommend
averaging in on a weekly or monthly basis. Think of it as just trading your
fake digital and paper money for the real stuff and it becomes less scary.
Find your own comfort level and do your own due diligence. And for Pete’s sake, don’t
panic if a hit does come. (It looks like they tried last
Thursday and Friday. All of that work shorting silver got reversed in a few
hours to finish 1.7% higher.)
If silver does what it did in 2008 and dumped 60%,
would you have enough confidence in buying more or would you be selling into
that trap? If you said you would be selling, then don’t buy now or
ever, because you are weak handed. You will have your money taken from you
and be left with no metal. How sad.
If that happened again would you actually be a
little excited to buy more at a discounted price? Then get going and buy now.
Be sure leave some powder dry for the smack downs. 10 am EST seems to be a
good time to buy just about everyday thanks to Blythe…
I will sleep soundly regardless if silver dumps or
moon shots in the near term. I
have seen this movie before and I know the ending. All of the dramatic plot
twists mean nothing to me. In the end, the good guys ride off into the sunset
with their girls, guns, and sacks of silver.