ReverseEngineer wrote:This is not newz as far as I am concerned. I have been hammering down for months on the fact the paper trade in precious metals in NO WAY is reflective of the actual amount of Gold and Silver out on the market to buy. Both the Silver and Gold mrkets are complete Ponzis, with people investing money in stuff that doesn't really EXIST at all, not in anywhere near the amounts being bet here anyhow.
When this market collapses, as it must, theoretically speaking the value of any REAL Gold or Silver you have IN YOUR Possesion would SKYROCKET. However, in relation to what is one question, and how exactly you would go about trading it is another question once the paper (or really digital) market collapses? You would have to trade it physically as a Barter Item, and frankly the Value of an American Eagle versus the value of a good Pistol and some Ammo is pretty small. I certainly wouldn't trade MY .50 Caliber Smith and Wesson for a pouch FULL of Gold Eagles.
If there is a means for you to convert your possessed Gold Eagles into the Currency of the Day in paper money, this might provide you with a means to secure some wealth. However, its unlikely once the electronic markets collapse that there will be a good way to do this. I honestly believe even if you have several pounds of Gold Coins in your Basement Safe they will not do you much good here, not a lot more good than having a Safe full of Copper Pennies. However, they definitely have more value than Toilet Paper, so if you have excess TP you haven't spent on preps, ammo and guns, if you can get hold of some POSSESIBLE Gold, its a better way to dispose of your TP than as mattress stuffing.
Reverse Engineer
TreeFarmer wrote:Micki, when I first glanced at your signature I thought you had a quote from Moist von Lipwig!
TF
COMEX Warehouse Stocks April 6, 2009
The mass exodus of metal from the COMEX continues. Today April 6 2.1 Million ozs of silver were withdrawn from the dealer’s inventory. The dealers have now had 8.5Mozs of silver withdrawn in 4 days. This is truly phenomenal. The breakdown is as follows:
SILVER
2,092,227 ozs withdrawn from the dealer’s inventory.
496,039 ozs deposited in the customer inventory
Total dealer inventory 64,904,847 Mozs
Total customer inventory 52,848,067 Mozs
Combined Total 117,752,915 MOZ
GOLD
ZERO ozs withdrawn from the dealers (registered) category
63,249 ozs deposited in the customer (eligible) category
Total dealer inventory 2.695 Mozs
Total customer inventory 5.889 Mozs
Combined Total 8.584 MOZ
The drawn down in silver running at 2 million ozs each day needs to be watched closely. To put this in perspective 2 Million ozs is 10% more than all the silver mined in the world in a day! It is 62 tonnes, or 2000 times one thousand ounce bars which would need 4 tractor-trailers to move it. In reality it will not be moved by tractor trailer but by Brinks security trucks which probably can’t take more than 4 tonnes so 16 Brinks security trucks would be needed each day. This is a massive amount of silver withdrawal.
There are still 1.08 Mozs of gold delivery notices for April outstanding which is 40% of the dealer inventory. These physical moves are totally incongruous with the COMEX price action unless you know what GATA knows.
Cheers
Adrian…
Bill,
In our telephone conversation last night you mentioned that there may be a program purchasing and delivery schedule of some big entity on the silver side from COMEX. You may well be right. It could be that the amount being taken each day is the maximum that the COMEX warehouses can physically handle being limited by available secure trucks, time and manpower to load them.
In the last few days these were the withdrawals
4/1 Net withdrawal 2.193Mozs….. 1.2 Mozs from Dealers inventory 0.993 Mozs from Customers inventory
4/2 Net withdrawal 2.18Mozs ….. 1.2 Mozs from Dealers inventory 0.981 Mozs from Customers inventory
4/3 Net withdrawal 2.02Mozs…. 2.1 Mozs from Dealers inventory 0.094 Mozs added to Customers inventory
4/6 Net withdrawal 1.6Mozs …… 2.09 Mozs from Dealers inventory 0.496 Mozs added to Customers inventory
The gross amount of metal being handled each day is 2-2.5 Mozs.
This could get interesting!…
(LATE ADD, it sure is)...
COMEX Warehouse Stocks - ANOTHER 2 MILLION WITHDRAWAL SHOCKER!!!!
Bill,
COMEX Warehouse Stocks April 7, 2009
EVEN MORE STUNNING! Today April 7 we had yet another 2 Million oz withdrawal day from the COMEX warehouses. The breakdown is as follows:
SILVER
1656332 ozs withdrawn from the dealer’s inventory.
495,057 ozs withdrawn from the customer inventory
Total dealer inventory 63,314,243 Mozs
Total customer inventory 52,287,283 Mozs
Combined Total 115,601,526 MOZ
GOLD
1584 ozs withdrawn from the dealers (registered) category
ZERO ozs withdrawn from the customer (eligible) category
Total dealer inventory 2.692 Mozs
Total customer inventory 5.889 Mozs
Combined Total 8.583 MOZ
The drawdown in silver has no been running at 2 million ozs each day for 5 straight days. This MASSIVE demand is of course totally coherent with the price of silver being trashed recently (cough, cough!)
Cheers
Adrian
Delivery notices…
The COMEX April Contract delivery notices in silver just doubled today! They stand at 327 contracts or 1.63 Mozs. The delivery notices issued today were 166 contracts but yesterday there was only an Open Interest left in April of 49 contracts. Today the OI is has INCREASED to 196 contracts not decreased. Strangely the estimated volume in the April Contract is 5 contracts …it seems to me their estimated volume is very suspect! What this appears to me is that someone purchased 313 contracts in the April Contract and immediately stood for delivery on 166 of them to leave an OI of 196.
"Now, all of you know these changes are necessary for a very simple reason--silver is a scarce material. Our uses of silver are growing as our population and our economy grows. The hard fact is that silver consumption is now more than double new silver production each year. So, in the face of this worldwide shortage of silver, and our rapidly growing need for coins, the only really prudent course was to reduce our dependence upon silver for making our coins.
If we had not done so, we would have risked chronic coin shortages in the very near future.
Some have asked whether our silver coins will disappear. The answer is very definitely-no.
Our present silver coins won't disappear and they won't even become rarities. We estimate that there are now 12 billion--I repeat, more than 12 billion silver dimes and quarters and half dollars that are now outstanding. We will make another billion before we halt production. And they will be used side-by-side with our new coins.
Since the life of a silver coin is about 25 years, we expect our traditional silver coins to be with us in large numbers for a long, long time.
If anybody has any idea of hoarding our silver coins, let me say this. Treasury has a lot of silver on hand, and it can be, and it will be used to keep the price of silver in line with its value in our present silver coin. There will be no profit in holding them out of circulation for the value of their silver content."
Micki wrote:Silverseek"Now, all of you know these changes are necessary for a very simple reason--silver is a scarce material. Our uses of silver are growing as our population and our economy grows. The hard fact is that silver consumption is now more than double new silver production each year. If anybody has any idea of hoarding our silver coins, let me say this. Treasury has a lot of silver on hand, and it can be, and it will be used to keep the price of silver in line with its value in our present silver coin. There will be no profit in holding them out of circulation for the value of their silver content."
Here is the background to this latest installment in the silver bull story as shown in the chart below. After a grinding bear market of 23 years, silver entered a new bull market on 21st March 2003. This bull will last 20 to 30 years as we enter an age of increasingly greater inflationary forces brought on by Baby Boomer retiree demands, Peak Oil and Silver as well as the underlying upwave of the well known Kondratieff wave.
The fundamentals that will propel wave 3 will be similar to wave 1 as the economy recovers, silver demand picks up industrially but again inflationary pressures begin to bear as commodity demand from China and elsewhere tightens. The inflationary effects of the worldwide credit crunch bailout will also finally filter through but we also expect Peak Oil to finally and decisively appear and oil to breach $200 and beyond. Wave 3 will occupy most of the next decade.
kiwichick wrote:silver going to $1000 .... within 10 years
The follow up would be what will $1000 be worth in 10 years?
16$
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