Silver Market – Most Suppressed Market Of All To Witness A Historic Shortage
It’s early Wednesday morning, and I’m all dismissed adult (just wait until we fasten my weekly Kerry Lutz podcast an hour from now); as, per a pretension of a many passionate, intense Audioblog of a 149 we have taped, May 18th’s “FOMC Minutes Attack” has, in usually 3 weeks time, miserably failed. As not usually have gold, silver, and bullion already recouped some-more than half of their blatantly Cartel-orchestrated “losses,” though a COMEX “commercials” (i.e, a Cartel) hardly lonesome any of their all time high exposed brief positions, even if they started to, LOL, try.
In other words, it’s apropos scarcely unfit to cover such gargantuan, undeliverable positions though causing prices to raze – even when they operative what used to be sentiment-draining, for months on end, rapids declines. Heck, a biggest dump of all – holding bullion to, LOL, $1,199.80/oz – was attempted on Memorial Day Eve, notwithstanding all U.S. markets being sealed a following day. Talk about using into a wall of support, when no one is approaching to be around!
Today’s undoubted cornucopia of “PM-bullish, everything-else-bearish” headlines is a ideal backdrop to plead something I’ve wanted to describe for some time – and in doing so, advise of what competence be a potentially approaching – though irrespective, ancestral – china shortage. And by “PM-bullish, everything-else-bearish,” feast your eyes on these topics from usually a past 24 hours…
- German Bund yields strike all-time low, with normal Bund produce next zero
- NIRP Blowback – Commerzbank skeleton to store billions of Euros in vaults, equivocate ECB
- Toyota issues Japans lowest agreeable bond offering, during 0.001%
- Japan’s largest bank quits as primary JGB (Japanese supervision bond) dealer
- Bank of Montreal warns of other banks’ (manipulations) in a bullion business (MUST READ)
- Obama administration protectionism goes chief – seeks sum anathema on Chinese steel
- Fed’s possess Labor Market Conditions Index plunges during fastest rate in 7 years
However, what held my eye many was “copper is crashing after a biggest two-day spike in LMA inventories given 2004.” Yes, “Dr. Copper” – or as we described it dual years ago, when it was $2.94/lb contra $2.08/lb today, “Dr. Death” – continues to plunge, notwithstanding Wall Street, Washington, and a MSMs’ best efforts to fake a tellurian economy is “recovering,” when in fact it’s undoubtedly in a misfortune state, or worse, afterwards a Great Depression. Not a “Great Recession” of 2008, mind you, though a “Great Depression” of a 1930s. When, we competence add, a U.S. inhabitant debt was infinitesimal, compared to scarcely $20 trillion today, not including maybe $200 trillion of “off change sheet” debt and “unfunded liabilities.”
Frankly, we was repelled to see copper indeed conflict to a disastrous register news – as in today’s universe of 24/7 marketplace manipulation, such economic realities are typically paper-covered over with fake futures trades, as exemplified by wanton oil constantly surging any time an register news is “slightly improved than expected” – notwithstanding a fact that wanton oil inventories, and production, are during all-time highs; with nowhere to go though up, amidst a direct sourroundings that will at best be prosaic for a foreseeable future. Yes, there is a “copper PPT” as good – though distinct a current, rabidly active “oil PPT,” it has not been effective in preventing bottom metals from plunging toward their 2008-09 lows, amidst a immeasurable oversupply of register – and implicit cave supply – that will engulf prices for years to come.
Which brings me to my foresee of an upcoming, ancestral china shortage; a grounds upheld by, among large other factors – a fact that two-thirds of tellurian china prolongation emanates from copper, lead, and zinc mines that are so hopelessly oversupplied, prolongation MUST decrease in a entrance years. In fact, worldwide china prolongation already declined last year; and given my expectancy of an unprecedentedly heartless tellurian retrogression (which quantitatively, has already started); total with a aforementioned, rare oversupply of copper, lead, and zinc mines; we not usually trust “peak silver” has arrived (not to mention, “peak” bullion and platinum), though that tellurian china prolongation could decrease by 25% or some-more in a entrance years. This was a finish of Oct 2014’s “Miles Franklin All-Star Silver Panel Webinar” – that today, looks some-more prophetic than ever. And this, in an sourroundings of record high, parabolically surging silver demand.
And by record high demand, usually yesterday the Royal Canadian Mint reported a initial entertain Silver Maple Leaf sales of 10.6 million ounces were not usually 27% above final years’ initial entertain levels (kicking off a year that resulted in all-time high sales), though one million ounces above a RCM’s highest-ever quarter; i.e., final year’s third quarter, when a North American bullion attention gifted a large china necessity (Miles Franklin had a busiest-ever three-month period, predominantly due to china demand). And that, in an sourroundings blank of a form of crisis that catalyzed a ancestral necessity of 2008 – when a attention ran out of product for dual months, and earthy premiums surged to 100%. Or heck, a Apr 2011 shortage, when china reached $50/oz; or even a May 2013 shortage, following April’s “Alternative Currencies Destruction” paper raid.
As for a rest of a world, demeanour no serve than a world’s largest china importer, India, that gifted record imports in 2015 notwithstanding a continued deception of 10% import tariffs by a soon-to-be-overun, fiat-currency-loving government. Or, for that matter, a world’s largest sell bullion market, a United States.
And afterwards there’s a hulk “pink elephant” in a room; i.e., a collapsing tellurian inventories that started when a U.S. supervision sole a final of a vital china haven decades ago. To wit, COMEX purebred china inventories plunged to an all-time low this week, down a whopping 15% in a past dual days alone! In fact, a final time inventories were this low were amidst a 2011 shortages caused by surging prices – when china quickly overwhelmed $50/oz, usually before a ancestral “Sunday Night Paper Silver Massacre” of May 1st, 2011 (which we assure you, CANNOT ever be repeated).
Now that institutional direct has returned after 4 years – as U.S. dollar-priced gold, silver, and bullion have unquestionably re-entered their temporarily Cartel-slowed bull markets, a “perfect storm” of surging demand, plunging supply, and declining above-ground inventories is on us. Combined with parabolic income printing; and generational political, geopolitical, and amicable instability; it is uncommonly probable that we are on a fork of ignition, of a biggest longhorn marketplace in financial marketplace history; that in my view, will be focused on “anti-fiat monies” like Precious Metals and Bitcoin. But nowhere is shortage more expected to start than in a many suppressed marketplace of all, china – where inevitably, a “ultimate quadruple tip breakout,” above $50/oz, will embark a new proviso in tellurian financial history.
Courtesy: Andrew C. Hoffman
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Comex , Copper , Crude Oil Inventories , Lead and Zinc , Precious Metals , Silver Demand , Silver Importer , Silver Inventories , Silver Market , Silver Production , Silver shortage