Silver: Is it the LBMA's Greatest Rig?

Discussion Jay Taylor and David Jensen on January 7, 2015

Topics

by definition, trading of virtual gold and virtual silver to create large virtual positions of non-existent metal held on the LBMA manipulates the gold and silver price
institutions and sovereign investors have relied on the LBMA to create gold and silver positions held through the LBMA
creation of these non-existent gold and silver positions creates supply to market of metal that does not exist and by definition distorts the pricing of gold and silver
unravelling of this leveraged structure will occur and will lead to a market failure to deliver through the LBMA
daily gross gold trade volume in November 2014 at the LBMA is 207M oz. using LBMA's 10x net cleared volume vs daily gross trade volume based upon the LBMA's market survey report: http://www.lbma.org.uk/assets/Loco_London_Liquidity_Surveyrv.pdf
keep in mind that the LBMA asserts London trades 85% of daily global gold trading volume & the LBMA has an implied open interest of 400M to 600M oz of gold (much of which is not extant and can't be delivered) - London appears to steer the world's physical gold price by creating this non-existent virtual supply of gold
the virtual market rig only works until the small fraction of available metal is removed from the market thereby collapsing such a scheme
Greenspan states that gold is a premier currency stronger than all paper currencies

deflationary impact historically is that money (gold and silver) buys more goods

economic models promoted by central banks of inflation creating growth is snake-oil

central banks printing money to hide deflationary collapse created by excess debt
need to manipulate the gold price to hide the ongoing deflationary economic collapse due to removal of gold from the monetary system as John Exter (Fed Board of Governors) predicted would occur leading to currency failure and hyperinflation

silver is historically the daily monetary medium of exchange for enterprise while gold was used for larger transactions
new daily silver fix provided in part by Reuters - a traditional propaganda arm of UK Gov

daily net cleared volume 172.3 million oz. in November 2014
using the LBMA's 10x gross trading volume vs net clearing volume estimate, London trading 1.7 billion oz per day gross trading volume

annual global silver supply (including 800M oz of mine supply) is estimated at 1 billion oz.
global refined silver stockpiles are estimated at 1.2 billion oz. of silver (including ETF holdings; note: CPM group estimates global silver stockpiles at 0.9 billion oz in 2014)

many ETF's have issued disclaimers that they cannot guarantee metal held by sub-custodians

artificial supply of silver appears to be created at the LBMA far exceeding global stockpiles of refined metal
it is a pain to take delivery of gold and silver but lifeboats are also considered a pain by ships' captains because they are bulky and take up deck space
beware the salesmen saying "everyone needs gold - but don't buy gold, buy paper" http://video.cnbc.com/gallery/?video=3000342885

all fiat money regimes collapse in the end
countries globally scrambling to keep economies functioning
not so much currency wars as desperate monetary inflation to address problems caused by monetary inflation
similarly push by West for military conflict with Russia through military coup in Ukraine with Oliver Stone now calling-out the shameful behavior of the West http://www.zerohedge.com/news/2015-01-02/oliver-stones-new-movie-ukraine-cia-coup-coming-theater-near-you
http://www.infowars.com/czech-president-only-poorly-informed-people-dont-know-about-ukraine-coup/
some (BRICS) moving to sound (gold) money to protect their citizens
Jim Rickards and Western governments pushing Special Drawing Rights (SDRs) through the IMF as the next paper 'solution' to a problem caused by paper money
Since Paul Voelker spearheaded the untethering of the US Dollar from gold in the 1970s, the monetary and economic distortions have increased to the point of crisis today