[KR63] Keiser Report – Markets! Finance! Silver!

Stacy Summary: We look at the latest scandals of fetishes for black swans; American youth unconcerned by the coming collapse of their Social Security they bought and paid for; Tony Blair’s 2007 photo op with Colonel Gaddafi and the farting camels of Tripoli. In the second half of the show, Max talks to Ned Naylor-Leyland of Cheviot Asset Management about the silver market.

176 thoughts on “[KR63] Keiser Report – Markets! Finance! Silver!”

  2. William Of The Oranges

    @Gordo

    The way the comex works now is that it does not deliver, but settles in cash. You can immediately see that that implies they can pretend to have any amount, they can thus absorb any demand and the price is a complete construction. The criterium must be plausible moves, so perhaps good explanations of down moves evoke amplified moves down, and good explanations of up moves are ignored. As long as the majority buys the explanations and remains oblivious of the fact there is no limit ti the amount of gold and silver the comex can pretend to have, the desired control is achieved. Sad thing is there is imho no way to break this unless there is a widely pubicized concerted demand for delivery.

  3. Danny

    @ronron
    Getting a new Gretsch next week. had to to it man. Oh and some gold too, at these prices!!

    @Stacy or anyone who knows
    What’s with ‘option expiration’? Is it a set time, say every couple of months or does it alterate?

  6. ronron

    @Stacy . it’s really amazing to see. Americans are buying stratford ontario canada. the largest bank in canada is moving there head office here. i bet they build a big vault for metal. i think i’m in the middle of olidhark land. i will be starting footings there so i will know what is going on. you should buy a cheap house here. google stratford ontario. large theatre crowd. lots of movie stars hang here. they like it cause the locals are used to them. a cheap ontario cottage is 175 thousand. soon to be a gazzilion.

  7. ronron

    @Danny. buy a vintage strat. there getting cheap. when you walk out of the store with your new guitar. the store door closes and your guitar just lost 40%. take your time.

  8. F. Beard

    Violins can now be made that sound as good or better than Stradivarius, I’ve read but I can’t remember where.

  9. William Of The Oranges

    @Dann

    A future is a contract to take delivery of some commodity at some future date. In the case of gold and the Comex that would gold owned by the Comex. As I understand it, usually though people do not take delivery, but trade those contacts until they expire, that is the delivery date has been reached. Then they will roll over the contracts, so replace them with new ones with an expiration date as far into the future as the original future. Manipulation can however cause people to get less for the contracts than they paid, and less then they need to buy new contracts. This can force people out of the market leaving the manipulators with cheaper contract to pick up. This is where people learn you can not buy and hold a futures conract.

  10. ronron

    buy a french or a german fiddle . no chek ones. same with a stand up bass. althou kay usa made a nice dog house. oh ya don’t count out nippan japan. velly nice.

  13. Youri Carma

    Is there really a key to reboot the internet? http://www.guardian.co.uk/technology/2010/jul/27/internet-key

    It sounds like a Fellowship of the Ring for the internet age – a carefully chosen alliance of technology warriors, safeguarding a mythical key that could one day shut down the internet. According to yesterday’s news reports, these keyholders will share responsibility for “rebooting the web” in the event of a catastrophic global meltdown.

    So would that giant ctrl+alt+delete reboot the whole internet? “Nope,” says Kane – only the small proportion of internet sites using DNSSEC. “The rest of the internet would continue to function as normal.”

    And it’s not actually a key – it’s a swipe card. And technically, just one fifth of a key. “Yes. I have a fragment of the key,” says Kane, whose enthusiasm for dumbing down his hard work is clearly starting to wane.

  14. Youri Carma

    So essentially the story sticks altough it’s not the complete Internet and Kane hasn’t the complete key.

    Still in essence it’s a (part of) key to reboot (Part) of the internet?

  15. Chris

    Just curious,

    Do gold and silver usually go down at options expiry? I haven’t been tracking this. If so, it would be a good think to keep an eye out for as a buying opportunity. But it seems like, depending on which options someone buys, they might want it to pop up next time.

  18. ronron

    it’s funny. when you want to buy metal and there’s none for sale. hahahaah. the comex. fuck off. history. you fucking watch. there AIG.

  23. Youri Carma

    FT: World Bank warns on ‘farmland grab’ trend

    “Investor interest is focused on countries with weak land governance,” the draft said. Although deals promised jobs and infrastructure, “investors failed to follow through on their investments plans, in some cases after inflicting serious damage on the local resource base”.

    In addition, “the level of formal payments required was low”, making speculation a key motive for purchases. “Payments for land are often waived … and large investors often pay lower taxes than smallholders … or none at all.”

    The draft was leaked to the Financial Times by a person who said they wanted to prevent the World Bank releasing the report in the middle of the summer holiday period.

  24. ronron

    well y’all. just got the call. doin 5 tens @58 years old forming footings. hahahaha, i’ll be buff one more time in my life. gonna do it y’all

  25. Youri Carma

    US recovery elusive amid fiscal gaps (FT)

    - States faced a collective budget shortfall of $83.9bn for the fiscal year 2011

    - New gaps totalling more than $12bn that have opened for 29 states.

    - At least 25 states budgeted for additional money from the federal government for Medicaid.

    - In Pennsylvania without the extension, the cuts he will have to make – potentially including the jobs of 10,000 to 20,000 teachers, case, city and fire safety workers.

    - Other states face similar concerns.

    - Two-thirds of states already forecast a cumulative gap of $72bn for 2012 and 23 states are projecting gaps of $64.3bn for 2013.

    - In North Carolina, for example, the state plans to cut about $50m for in-home care under Medicaid – ending the service for about 20,000 elderly and disabled people, or more than half of those who now get help.

  26. ronron

    @Youri. ronrons going back in the union. building a bank. hahaha fucking too much. you think i’m a silly boy?

  27. Youri Carma

    Banks face lawsuits over alleged Ponzi scheme (FT)

    Investors who lost millions in an alleged German Ponzi scheme are threatening legal action against Barclays, HSBC and Rabobank, alleging that the banks may have acted irresponsibly – Jul-27

  29. bammbamm

    In the classical setup, the king’s role was to protect the poor from the abuses of the aristocratic class. Look’s like America needs a king. Away with democracy. Crush the infamous thing.

    (Wouldn’t it be great to be ruled by one who only needed to say, “Because I said so.”? How refreshing. No more bullsh_t.)

  31. Youri Carma

    US lawmakers beat back Afghan war challenge after leaks http://rawstory.com/news/afp/US_lawmakers_beat_back_Afghan_war_c_07272010.html

    US lawmakers on Tuesday easily approved urgent funding for President Barack Obama’s escalation in Afghanistan, despite a huge leak of secret military files that stoked anger at the unpopular war.

    The 308-144 vote in the House of Representatives set the stage for Obama to sign the legislation, which provides some 37 billion dollars to fund the conflict in Iraq and pay for his “surge” of 33,000 more troops to Afghanistan.

  38. bammbamm

    Question for Max. On a typical trading day, if you were to take all the shares bought and sold on the NYSE (for instance), and attributed each buy or sell to the individuals who made each choice to buy or sell, what would the profile look like by person and proportion? (e.g. individuals, fund managers, etc.)

  40. Youri Carma

    H.R. 5741 Slave bill now in Committee http://www.infowars.com/h-r-5741-slave-bill-now-in-committee/

    H.R. 5741 will give the president the authority “To require all persons in the United States between the ages of 18 and 42 to perform national service, either as a member of the uniformed services or in civilian service in furtherance of the national defense and homeland security, to authorize the induction of persons in the uniformed services during wartime to meet end-strength requirements of the uniformed services, and for other purposes.”

  41. Mep

    Can’t finish watching the second half of the show: You Tube has been seriously laggy for me lately, and this show started getting really bad just before Stacy signed off. Bummer.

    To add to the previous thread on water shortages, I just came across another water tale a little while ago: Nestle Ok’d to turn Arkansas River springs into bottled water product. Nice.

    Oh, and OT GMO jibber jabber, I recently realized that on the very bottom of the label on the prenatals I was taking, it says: Contains soy. I have to assume that since some 91% of our soy crops are GM that the soy byproducts in those vitamins are also GM. Not surprised at all, but it sickens me on a very deep level to know that that shit is being put into freaking prenatals. As if the normal development of a fetus isn’t complicated enough. So I went looking around the Web and found just a couple of brands of vitamins that don’t have soy in them. Also found this 2006 article on modified soya and new born rats. It’s too bad that nobody cares to find out what effects the garbage has on developing fetuses and newborns.

    When I look around at all of the effed up stuff going on in this world, I like to think that we’re really not so fucking stupid, and it’s really just the politicians and corporate sociopaths who are screwing it all up.

  42. Chris

    Thanks for discussing silver, important topic. However this guest leaves a bit to be desired, expert though he may be. I can’t help thinking that he’ be better off with a guitar in a Monkey’s tribute band.

  43. Giuseppe Bagodonutti

    @Mep

    It’s just the American rhyme
    based on the Decline and Fall of the Roman Empire
    sped up to Techno rhythms (120bpm+)
    http://librivox.org/the-decline-and-fall-of-the-roman-empire-vol-i-by-edward-gibbon/

    BTW… there are 6 Volumes in this bastard…
    LONG time of listening to a dead guy’s words from 200+ years ago…
    Volume 1 is 19hrs 50mins alone
    :lol:

    which reminds me…
    someone posted a link to a paper on the Hyperinflation of the Roman Denarius a while back which looked like it was cut ‘n pasted from a type-writer…
    but damnit.. I can’t find that page on Google….
    Hopefully they’ll repost it…
    it was really good for info…

  44. Randy

    Buy copper! Three dollars a pound seems cheap. For thirty dollars you can get ten pounds of copper but only about 2 oz of silver.

  49. Mep

    @Giuseppe – Thanks, I’ll have to bookmark that and check it out later. I’d say that I’ll save it for a rainy day, but it’s more likely that i’ll save it for another hot day when I don’t feel like venturing outside.

  51. Giuseppe Bagodonutti

    @mep

    It’s long and long-winded…
    but I see it referenced a great deal, so it must be of value…
    Something for the subconscious to absorb.

    That said, they also are working on Adam Smith’s “Wealth of Nations” which, in my opinion, is probably better listened to than read…

    @Randy

    Jim Dines pumped Uranium before,
    and if his “work” could only get three months of decent activity from REEs, I’d give him only a couple weeks on the REHASH of his Uranium PUMP…
    I saw one of his top picks, URC.V (TSX Venture) going nowhere today…
    So clearly even his manipulation of the media has its limits…
    if you look at the actual Supply and Demand for Uranium, you’d probably realize it won’t go too far any time soon…
    ;)
    Good Luck

  53. FranSix

    @Sprott

    Sprott created an allocated physical silver etf just recently.

    @Negative interest rates

    Anybody watching the precious metals are probably more than curious about negative interest rates, since bullion and sterling leases are chronically in the negative.

    The key to these negative rates are ‘ failures to deliver.’

    Negative rates also apply to repurchasing agreements in equities (or what have you) Look at where repos were in 2003:

    http://www.ny.frb.org/research/current_issues/ci10-5/ci10-5.html

  54. jischinger

    honestly, isn’t time to start a new country somewhere?
    I’m up for secession – suggestions?

    seriously folks, nothing’s getting done, they are squeezing the bottom of the toothpaste tube and Americans are just taking it.

    Is there some known secret quiet underground place people are gathering to take a stand and cut these scroundrels off?

    or are people just leaving the US for other civilized places?

  55. Randy

    @Giu, I was daring people to buy “physical” uranium. Now wouldn’t that be funny? Nevertheless, I will pimp for anybody if the price is right.

  57. dan valley

    “Nearly all men can stand adversity, but if you want to test a man’s character, give him power.” Abraham Lincoln

  58. dan valley

    Wow! gold hitmen don’t take vacation. ;-) Not remotely concerned about price action. Buy, buy, buy. $$

    Greenpeace closes 50 BP gas stations in London. Signs saying:”Closed. Moving beyond petroleum.”

  59. jischinger

    @danvalley it’s the only peaceful way – it seems to make sense, if like minds gather in once place –

    I think funding will have to come from foreign investors through trade

  60. flicks

    Isn’t the real result of the Andrew Maguire revelation that people just do the same as JPMC the first Friday of every month when the non-farm payrolls number is announced. What would the incentive be over that now ? Every month they can profit, the govt wont stop it due to the need to control gold and hence the $. As that silverfuturist guy says: it ($) will trump any regulation law . Where is the realistic incentive to hold physical when you can do that every month? People arnt going to act in a moral way. In finance its the incentive that controls.

  61. Youri Carma

    An average of 1.7 trillion dollars a year in Unofficial Black Projects

    You have two sorts of Black Projects:

    The official one mandated by congress trough the CIA act of about $40 billion.

    The unofficial Black Projects which can be deducted from the money moved trough the departement of defence which can not be accounted for.

    The Inspector General reports from 1989, 1999 to the year 2000 show of how much money was flowing trough the departement of defence with no auditing mechanism in place with an average of $1.7 trillion a year over these three years.

    Coast to Coast AM – 2 of 12 Secrecy, Sightings, & Exopolitics http://www.youtube.com/watch?v=-gs7Ybtvoxw

  62. farang

    Sawasdee Krab from Nong Hoi!

    Thanks for the vid, Khun Stacy looking lovely as usual, and Khun Max doing his comic routine to keep us from crying. You guys are great.

    It’s a lovely day in Chiangmai, y’all. Sun is shining, Ducati running strong, flowers blooming, river is high, so am I, smiling, sweet-voiced, beautiful ladies abound…..where the first thing asked is: “have you eaten?”

    Ah, the ancient “Kingdom Of Lanna”….”Sipsong Lanna”…”Land of the Million Rice Fields”…..”Sipsonglanna” (Thai) …becomes “Xishuangbanna” (over the border in China)….. we ARE Shangra-la. That’s right, here where the foothills of the Himalayas begin, all the way to Nepal. Come see for yourself. Korp Khun Korb!

    Enjoyed hearing Naylor-Leyland talk about how the average Joe can get behind silver investment. Um Ned, we peasents are already aware, still have our 50s and 60s silver hoards. Lug them around wherever we end up….very sharp guy this Ned. Well worth giving your undivided attention when he talks silver investment. We have a little silver industry here in Chiangmai, Waulei street market, come see some Saturday night….bargains for those willing to look around….

    Can’t have a bubble blown without strong lungs, many lungs inflating it. That is what us worker class is for. Yes, I know Ned wasn’t saying that: farang is. Notice how careful Ned is to not stress the certain upswing. He stress fundamentals….and properly so. But he knows full well once the collapse hits of fiat currency, should it do so, the bubble will become enormous before it pops. It’s one of those events we have not really witnessed in our times: a dual rise in value on one asset based on it’s use as money, and it’s speculative value as a commodity.

    Us peasants always do the heavy toting, don’t we? Next we must carry our jobs back from China, build America back up again, so we can give billionaires another Bush tax cut to destroy the balanced budget, and so we can pamper Wall Street behinds in the manner they are accustomed to.

    Interesting contrast this discussion…Max offering his visions of upcoming events, Ned bringing the discussion back to the present conditions….exactly the kind of contrast that makes for interesting viewing. Have Ned back more often, Max. Somewhere between the two of you is the “answer.”

    I see too many of my fellow “gold bugs” turn their noses up at the mention of silver, perhaps when in a good mood they might reluctantly acknowledge it’s use as common currency for common market exchanges by commoners, like when their cook buys the food, or their chauffeur fills up the 5th Mercedes……and arguing that silver is not a “money” like gold, it’s a common commodity….nonsense. Elitism that will cost them. Dearly.

    Unlike gold, it is both. Both, making it a more versatile asset to hold. Like I have said before, back in the 50s, 60s, when I would assault every adult to show me their pocket change so I could scan it for silver, I recall many many American homes with little hoards of silver. Silver coins. Bags of them. Not so much the gold, it was too expensive. I’m from Arlington, not Georgetown.

    Do you know what a bag of old dimes sells for by the pound on eBay now????? Yeah, that much.

    The next phase of the precious metal markets? “let’s get physical, physical, I wanna get physical..let’s get into physical….” and drive the crooks out.

    Aren’t you damn glad disco died????? If it hadn’t, we’d have to go strangle it right now until it stopped kicking.

    Krab!

    .

  65. Youri Carma

    High-Frequency Trading: Something Black? by Karl Denninger http://market-ticker.org/archives/2528-High-Frequency-Trading-Something-Black.html

    Now this is interesting, coming from the annual “black hat” conference in Las Vegas (for those not involved in the computer security world, that’s an annual gathering of hackers where various presentations are made that amount to brags and bags that have or can be run on various parts of information technology):

    Among the talks conspicuously absent from this year’s schedule: a presentation exposing security vulnerabilities in banks’ high-speed trading systems.

    The talk, planned by security researchers Varun Uppal and Gyan Chawdhary, would have dealt with methods for hiding risky unauthorized trades in high-speed trading applications, as well as demonstrating a “sniffing” software tool capable of siphoning trading information to a faraway hacker to allow a high-tech form of real-time insider trading. But Uppal tells us that the talk has been cancelled after concerns were raised by a financial industry client of the security auditing firm he works for, Information Risk Management.

    Methods eh?

    I suppose we’re supposed to believe that this is all theoretical, right?

    Oh, somehow I doubt it.

  67. What-me-worry?

    @farang: calm words, beautiful sentiment, cheery tale, ‘home truth’ from Thailand. Thank you.

    Have a terrific day, you deserve it. Enjoy each moment with celebration and anticipation of the fun you’re going to enjoy in the next moment, endlessly.

    PS: Sunshine, Ducati and Thai-stick seems like a great cocktail. “Get your motor running…………………………………”

  71. Paddy

    anyone else think the timing of this Pakistan air disaster is suspicious? A message from Langley to Islamabad maybe?

  73. Tears of the Moon

    Thanks Stacey & Max for posing my question to Ned Naylor-Leyland. Stumped him a bit, as I expected, and he didn’t address the 10 to 1 bullion inventories in favour of silver. But no matter it allowed you to segway into the Andrew Maguire and JP Morgan story as I had hoped it would :-) Brilliant interview Max.

    If you want to follow precious metals and associated economic news please visit my blog which I try to update daily: http://ausbullion.blogspot.com

  74. Davey Jones

    Consider the mythological, ancestral, inborm, subconscious knowledge of the “silver bullet myth” pertaining to vampires who purportedly live off the blood of the common people. Just saying. Also. look at the respective scarcities of Au and Ag in the crust and you’ll see that silver is fucking cheap.

  75. Zamfir Master of the Pan Flute

    @Tears – That cracked me up when Max introduced your question as “Tears from the Moon.” It kind of stunned the guest. It would have been even funnier if the question was from Zamfir, Master of the Pan Flute! YukYukYuk.

    Here’s me in one of my most amazing emotional moments:
    http://www.youtube.com/watch?v=b_JTonpCFxo

  76. Steven Moyers

    I am glad you brought the social security thing up because; here they are taking 15% of our income a year and then calling it (social security) an entitlement. Then they (irresponsible, elected? “leaders”) squander the said funds on one boondoggle after the other; and the first thing they talk about cutting every time is Social Security. So, they steal it once steal it twice, let’s go make war and not make nice. And then, let you make enough money to insure yourself, don’t be silly, p/ass the kool aid.

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