Legendary gold trader Jim Sinclair sent an email alert to subscribers last night, stating that the rig (gold manipulation) is up, and that the big dirty secret is out that there is no physical gold in volume.
Sinclair states that the biggest moves on a percentage basis for gold and gold stocks has just begun, and provides a formula for profits in the gold sector here and now:
Signs of extreme physical tightness in the gold and silver markets continue to intensify, with reports of banks and firms refusing their customers physical delivery of their own bullion are increasing nearly hourly. The latest report comes from the CME’s former CEO Leo Mahlamed, who reportedly was refused delivery of 2 gold contracts Tuesday! Mahlamed attempted to stand for delivery of 2 April gold contracts (a measly 200 oz), and according to reports from the floor, the CME reportedly refused to physically deliver 200 oz of gold to its former CEO, and would only provide Mahlamed a warehouse receipt! The music appears to be stopping, and the paper game is up!
We already know that an ounce of Silver is not worth the $23 that COMEX says it’s worth. No, buyers-investors-scared fiat rabbits are paying more…30% more for the real, hold in your hand “stuff” that COMEX is so badly underpricing. Let me go back to the beginning, what is an ounce of Gold or Silver worth if and now when an ounce is not available?
The old saying goes, “there’s no rush like a Gold rush“. This saying always speaks to “greed”. The coming Gold rush with its roots in “fear” will be unlike anything before it because in reality it will be an all-out, all-encompassing global bank run!
The COMEX will default in the next week or several weeks and people will be “settled” with Dollars, no more metal will be delivered! So, knowing that “game over” has arrived, they are dumping a massive volume of paper contracts with impunity to push the metals prices as low as possible before the “default”. This way the “shorts” do not have to and will not be “covered” when “supply” cannot be obtained because of “an act of God”. They will be settled in cash (at a profit no less) because these “unforeseen” disruptions in supply. “Who could have seen it coming?” will be the mantra. I would suspect that banking stress and “bail ins” will also become prevalent globally. The pricing structure” will now push any and all physical sellers away from the markets and the “door” to safety is effectively being shut. Either you own metal or you don’t. After the closure of the COMEX and LBMA doors there will be no availability and “price” will be meaningless. Your ability to protect yourself is right now for all intents and purposes being eliminated.
*UPDATE: ALL US WHOLESALE SUPPLIERS ARE NOW SOLD OUT OF EVERY OUNCE OF PHYSICAL SILVER & HAVE SUSPENDED ALL SALES!
Two of the largest wholesale suppliers in the US, including Amark and CNT, who is the supplier of gold blanks to the US Mint for Gold Eagles, and is a registered COMEX depository, HAVE JUST SOLD OUT OF ALL PHYSICAL SILVER!!!
Epic drainage of physical silver inventories continued Tuesday, as 17.3% of CNT’s physical silver inventories vaporized for the 2nd consecutive day, cutting CNT’s physical silver inventories by 1/3 in only 48 hours!
Brinks’, CNT, Delaware, HSBC, & Scotia (every vault except JPM) all saw significant physical withdrawals, as a massive 2.7 million ounces of physical metal fled COMEX depositories.
The cash metals markets, particularly in Silver are tight. Premiums for physical over the paper price are rising and delivery times extending. This can only end one way, “cash and carry” will ultimately “price” these markets and a force majeuer will be unavoidable as the physical does not exist system wide (never-mind on COMEX) to satisfy demand.
Gold and silver will go through a short squeeze unlike any other ever seen. History will call this “hyperinflation”. Once started, just as in a wildfire everything will burn until there is nothing left as fuel for the fire!
The US Mint has updated April sales statistics for the first time since last week, and to no surprise, the Mint again reported more massive sales, with another 833,000 silver eagles reported sold Monday! The April total through 6 business days is now 1.645 million ounces, bringing the 2013 total to a massive 15.868 million ounces. In response to the continued massive demand for silver eagles, the mint also has begun rationing sales of silver eagles to primary dealers resulting in supply delays! Just as was seen in January, tight physical supplies have seen premiums on ASE’s skyrocketing over the weekend and early this week, as ASE’s are rapidly becoming as scarce as 90%!
In the midst of the latest epic cartel paper gold and silver raid this week, legendary precious metals expert Eric Sprott sat down with The Doc for an exclusive, MUST LISTEN interview.
In one of his best and most shocking interviews ever, Eric discusses the latest gold and silver raid, his take on the platinum & palladium markets, the Bundesbank’s recent gold repatriation request and the correlation with massive physical gold buying in Asia, and his view on how the endgame of the Western financial/ debt crisis will play out.