…is just one Billionaire to place an order on the COMEX for Silver and POOF…it’s all over! Seriously, this is true, just a single $1 Billion order would basically wipe out ALL deliverable Silver held at the COMEX. Not only that, I suspect that if a huge order came through (which is discouraged by position limits on the long side), much of the supposed “deliverable” Silver would change categories or even evaporate prior to being delivered. Think about how small $1 Billion is. It is equal to roughly a mere 8 hours time of which our government borrows 24/7. It is like going to bed and getting a good 8 hours of sleep…wake up and we borrowed another $1 Billion. Only in this case, once this market gets broken and trust me, $1 Billion will do it, we will go to sleep, wake up, and no Silver will be available.
Years ago, Warren “Gold ain’t money, it’s barbaric” Buffett held 129 million ounces of Silver (equal to nearly $4 Billion at today’s price). It was speculated at the time when he sold it that he had his arm twisted to do so, maybe, maybe not. I bring this up because there are now no hordes of this size available, ANYWHERE and the “threshold” to breaking this market goes down every single day. Have you ever wondered what will happen if (when) this market does get broken? You might at first think “who cares?” but that would be shortsighted. I say shortsighted because any action in Silver will surely spill over into the Gold arena and Gold exploding higher is definitely not a “confidence” builder, on the contrary, fear is THE greatest financial emotion of them all.
Putting the Gold market aside, what really will happen when the COMEX Silver pit gets broken and cannot make delivery? Obviously, the price of Silver will rise. It will rise because the shorts will get scared and buy, the specs will get greedy and buy BUT, the real catapult will be sellers, or lack of! When sellers whether they be paper or physical get a whiff of this, they will pull their offers and create an upside air pocket where anyone who wants in…will have to do so at much higher prices. The physical sellers will probably go into TOTAL hibernation for a spell where they will not accept any amount of fiat paper until they can “trust” what it is that they are getting in return of sale. A busted Silver market will spill over into everything. This one “little white lie” will expose many and far larger lies up to and including the fact that the entire system is a Ponzi scheme. It is really this simple, Silver CANNOT be allowed to be “outed” because it will expose everything else so don’t hold your breath for a miraculous CFTC ruling, failure to deliver WILL be the catalyst.
This is all basic stuff but it is important to understand just how little money is now necessary to detonate the global financial system. It could be a Chinese or Russian billionaire, it could be a Carlos Slim or someone else that has mining investments, it could be a coalition or whatever. I will leave you with this thought, “it WILL be done for the simple reason that it CAN be done” and it can now be done with very little money and very little effort. We, the U.S., have made many many enemies over the years, I cannot believe how stupid it is to have left exposed such an obvious and easily attacked Achilles heal to the entire system. …and if a foreign sovereign government were to enter the Silver market? $1 Billion? $5 Billion? Are you kidding me?
Inconceivable! You’ve given everything away! I know where the posion is…
Why wouldn’t someone like Hugo Salinas Price, who is a billionaire, just go in and ask for delivery of all registered Comex silver bars? They would surely object to one person trying to corner the silver market, just like they did in 1980 with the Hunt brothers. It is, however, more likely that total investment demand worldwide will this time break the Comex and make the paper price irrelevant.
This is not true. If this was all that was needed, why doesn’t Sprott do it? Surely he could do it either personally or by doing another offering via Sprott Physical Silver Trust and using the proceeds to take delivery through the Comex.
Why hasn’t a group of billionaires (say 40 or so} already done this? What are they waiting for?
A lot of people seem to have the impression that a collapse will be fun times for all silverbugs and goldbugs. I suggest you put your thinking caps on. Do you think you will be rich if silver goes to $1000 oz? Yes you will be better off than the masses but I don’t think you will be happy paying $30 for a loaf of bread and $60 for a gallon of milk. I don’t think you will like having to make your way through throngs of people outside the grocery store that can’t afford food. I don’t think you will like the riots and fires or living in fear in your own home.
Now that you mention it, I can’t imagine why a billionaire hasn’t already collapsed the system so we can party and be happy with our stacks of metal.
Lesson for pie in the sky metal bugs:
Gold does not go up, fiat goes down, so it takes more fiat to buy the same amount of gold. Therefore it will also take more fiat to live. You will not be rich after collapse if you are not rich now. But you will be much better off than not having any metal, unless the masses or the government decide it’s not fair that you have stuff while others have nothing, and just kill you and take it. Yep, sounds like good times doesn’t it?
I have written about this many many times so please don’t include me with “a lot of people”. I have no illusion as to what the world will look like, I just hope it’s not Mad Max. Even a billionaire’s way of life will be worse in the coming times because “goods” will be very difficult to get.
If there was a need for more silver to make Comex deliveries, there is plenty of silver available in the market. How do you think Sprott was able to recently purchase 15 million ounces without moving the price higher?
WOW, I guess I have created a firestorm or struck a chord (if you are really the “monetary” Martin Feldman). I will do another piece on this Monday since I have received a boatload of e-mails into my inbox. All I will say now is that anyone who doesn’t believe what I wrote today should put a pencil to it and do just a little bit of math. 30-40 million ounces of COMEX Silver available for delivery…at $28 per ounce…equals how much? Oh that’s right, ballpark $1 Billion +- $100 million or so Monopoly Dollars. The amount of available Silver is an absolute ham sandwich compared to the paper available to purchase it! Think this through, “why” hasn’t it been done already?
Even if there are 30-40 million ounces available on the Comex, that is not the extent of world supply. If the Comex silver could not satisfy deliveries, they could purchase the silver from other sources.
Why do you think Sprott hasn’t done this already if it could be done?
We all know that China wants very badly to not merely be on the world stage but to be preeminent on that stage. Is it beyond the realm of possibility that they would be interested in cornering the gold and silver bullion markets in preparation for presenting a new bullion-backed world reserve currency? It would be VERY desired by creditor nations not to have to accept over-printed highly-inflated US dollars anymore in trade for their goods and raw materials. Imagine, no more un-backed funny fiat accepted here! In addition to that, by using hundreds of agents of theirs to buy silver and gold futures, they could rather anonymously invest a LOT of US dollars in such a gambit and then “stand for delivery” of the metals. Such an act would likely crash the COMEX as well as other futures markets… as if they needed much of a push, right? Other markets tied to the futures markets could collapse as well. Anyway, this would be international economic warfare of the type that nations often employ to either rise to the top of the heap or to hold onto their high position in the world. I’m not an economist but even I can see a number of benefits that would accrue to China via doing this. If they can shove a thumb into Uncle Sam’s eye, we all know that they most certainly will. Isn’t it really just a matter of time before they do?
Funny you make this comment today, this link…if turns out to be true will make my comments on Friday and this coming Monday a very moot point!