Jim Willie - Golden Jackass Information from his April Hat Trick Letter: Physical Gold Premiums will be $500 or more in the near future, Silver 40%. Dealers Sold OUT Now

Jim Willie, The Golden Jackass and writer of the Hat Trick letter is allowing me to publish a little of his April subscriber Hat Trick Letter.

Jim emailed me this information today along with an article (and link) about physical gold and silver being bought out and major dealers do not have any for sale now.

Here are a few paragraphs (with his permission of publishing here) from Jim's April Hat Trick Letter for subscribers only:

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PREMIUMS FOR GOLD PURCHASES WILL RISE QUICKLY. THE PROCESS HAS ALREADY BEGUN. THE GOLD PREMIUM WILL EVENTUALLY BE $500 TO $600 PER OZ, LIKE IN A COUPLE MONTHS, MAYBE A LITTLE LONGER. THE DIVERGENCE WILL BE VISIBLE IN REALTIME FOR GOLD, BUT FOR SILVER IT IS ALREADY 40%. PUBLIC DEFIANCE WILL RISE AGAINST THE BANKERS, LIKE WITH PREMIUMS IMPOSED. WATCH FOR LAWSUITS RELATED TO THE ALLOCATED GOLD ACCOUNTS. WATCH THE BAFIN INVESTIGATION AGAINST DEUTSCHE BANK, WHERE OFFICIALS ARE SIGNING IN A CHORUS. $$$

A client close to the gold trade in Dubai United Arab Emirates has offered to provide a regular update on the DBX gold price. My hope is to be updated almost daily, but that is asking too much, since he is busy running an office. The premium reading is like an EKG for a man suffering a heart attack with monitors attached. He wrote on Friday and again on Saturday, shooting updates. He wrote, "No more physical Au available in Dubai. The big refineries tell people they might be able to fill orders for 100 kg bars in a week or two, but they might not be bound to the screen price. Premium now $18 over spot Gold price and rising (on Friday). We shall see $500 over spot not before long. Investment grade Ag is already trading at 40% over spot if you want physical in volume. Saturday here in DXB and the premium is now $25. There is no physical anywhere. Now the premium is $30 (one hour later)." 

For newbies, Au means Gold and Ag means Silver. Some simple math permits one to conclude that a $500 premium could arrive in fifty days if it comes at $10 per day. My belief is that the full premium will come more quickly, as the jumps will tend not to be linear. The traders in control of scarce inventory will sense the injustice and smell the destination of a true valid Gold price!!

The defiance against the criminal power jockey bankers will be visible in the open very soon, with public statements and calls for lawsuits and prosecution. Worse, the events and premium rise will be accompanied by direct formal action taken against thefts of Allocated Gold Accounts. Watch the German story, since the political response by their Parliament has begun for repatriation of their national account held (sold) by the New York Fed. The latest chink in the armor is a BAFIN investigation against Deutsche Bank in Germany. Several high level officials wish to avoid prison time, which motivates them to sing in a chorus tune. They are providing information on the $79 trillion in D-Bank derivatives, which permitted them to do illicit balance sheet extensions in the past. It is all tied to gold and the malfeasance behind the gold account management.

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Jim had sent me the below about physical demand of metals being off the chart.  

http://www.libertygoldandsilver.com/GoldandSilverBlog/?p=174

PHYSICAL DEMAND OFF THE CHARTS!

We are in the midst of experiencing two of the most radical weeks in the history of the precious metals markets. Paper prices for gold and silver, those prices determined by the fraudulently managed commodities exchanges (namely the COMEX and the London Bullion Marketing Association – LBMA) and regulated by the equally corrupt and complicit Commodities Futures Trading Commission (CFTC), have been driven into the basement.
Simultaneously, the available physical supplies of precious metals, especially silver, have suddenly nearly disappeared. Some of the most extreme shortages for silver in memory have caused premiums for all types of bullion and coins to skyrocket. Nearly all major wholesalers in the United States, and for that matter the world, are completely out of stock for smaller denominated silver rounds and bars, with no projected delivery dates in sight. This phenomenon is a worldwide event.
Here is a brief overview of the extraordinary world events highlighting the tremendous surge in precious metals demand.
India
Last week, the highly reputable Business Standard of India reported that there are “acute” shortages of gold in southern India. Reports the Standard, “Major jewelry manufacturing centers in southern India are facing an acute shortage of gold ahead of the wedding season despite the industry’s claim to have seen a record import of the yellow metal last financial year.”
Thailand
US ex-patriots living in Bangkok are reporting that gold dealers in that city are completely out of bullion products other than minor amounts of jewelry. These reports are stating that there is not one ounce of gold bullion available for sale! Dealers are taking orders but these are limited to 2.5 ounces per person.
China
Gold demand is surging. China’s domestic gold consumption is outpacing its internal production 5.5 to 1. China’s mining output was up 5.8% in 2011 but its domestic consumption of the yellow metal increased by 33%.
Hong Kong
Reports from Hong Kong have seen line-ups out the doors of precious metals dealers. Dealers are reporting massive buying with almost zero selling. Some dealers are reporting that they have sold more gold in one day than they normally do in three months with walk-up clients buying over a million dollars in gold with cash and taking it out the doors in gym bags!
Europe
Dutch Bank Shuts Down Gold Deliveries
Possible major shortages of its clients’ deliverable gold has forced Dutch megabank ABN Amro last month to dramatically change its custodian rules. ABN Amro announced March 24th that it “will no longer allow physical delivery.” Hysterically, ABN Amro account managers attempted to soothe their clients by saying, “You need to do nothing” as “we have your investments in precious metals.”
Major German Auto Manufacturer Hoarding Silver
It is being reported from Switzerland that a world famous German automaker is now resorting to storing thousands of pounds of .999 fine silver for perceived future shortages. The company’s purchasing manager has been quoted saying, “For some metals, like silver, there’s no such thing ‘just in time’ delivery anymore.” It has further been reported that this company is buying every available ounce it can in preparation for severe world shortages.
Switzerland to Buy a Stunning 1,000 Tons of Physical Gold?
A political movement inside Switzerland has acquired one hundred thousand signatures towards new legislation to eliminate future gold sales by the Swiss National Bank as well as to require the Swiss government to buy back immediately one thousand tons of gold that it already sold. If this becomes law, it will have a significant impact on tightening world gold supplies.
United States
16% of US Annual Silver Production Vaporized in Mine Collapse
A massive landslide at Rio Tinto’s Kennecott mine in Utah, on April 12, 2013, has wiped out five million ounces of annual silver production and five hundred thousand ounces of gold production. Taking into account that the US Treasury requires all US Eagles be manufactured exclusively with US mined gold and silver, the extreme shortages of these products can only increase.
US Mint Reports Massive Silver Sales
The US Mint reported that it has sold one 1.645 million ounces of Silver Eagles through the first six business days in April, bringing its 2013 total to an extraordinary 15.868 million ounces this year. This is on pace to completely crush the current annual record. Because of unprecedented demand, all dealers are on very tight allocations with almost all retailers as well as major wholesalers completely out of stock. Earliest expected shipments are at least 4 – 6 weeks out!
US Mint Gold Sales Setting Monthly Records
In April 2012, the US Mint sold 20,000 ounces of gold bullion coins. As of April 16th this year, the US Mint has sold over 50,000 ounces of gold and the month is only half over!!
Precious Metals Sell/Buy Ratio Going Hyperbolic
An unofficial but reputable survey of US bullion wholesalers is reporting a sales to buy ratio over 50 to 1. There are no forecasts for this to ease any time soon.
Huge Wholesale Premium Increases
Unprecedented shortages in silver have resulted in huge premium increases for silver dealers at all levels. Premiums for US Eagles and Canadian Maple Leafs have jumped $1 in the last week.
Premiums for “junk silver” are completely off the charts. It has been reported to us that buyers in areas such as northern New Jersey are paying an incredible $9 an ounce over spot for pre-1965 US silver coins. As far as we know, this may be the highest in history. Wholesale premiums for “junk silver” have risen 2,000 percent in the last six months. Most importantly, there is almost none to be found anywhere. Some dealers are taking orders with three months waiting time.
Zero Inventories at Major Private US Mints
Two of the largest silver bullion fabricators in North America, A-Mark Precious Metals of Santa Monica, California, and the NTR Bullion Group of Dallas, Texas, have just notified their retail dealers that they have suspended sales of most of their silver products. A-Mark has announced that it is ceasing taking orders for all its one ounce, ten ounce, and one hundred ounce rounds and bars. There is no projected date for resumption of sales!
Retail Coin Stores Completely Out of New Stock
It is being reported to us that the majority of local retail coin dealers are entirely out of stock of any silver products. Our unofficial surveys reveal almost no customers selling where buying requests are reaching a frenzied level. The silver shortage situation is fast approaching the extreme level currently experienced in ammunition sales. Basically, neither can be found!
Ladies and gentlemen, it is becoming patently obvious that world citizens are waking up fast to the inherent risks of fractional reserve private central banking, and the extreme threat that burgeoning government debt means for them. Wise people everywhere are no longer looking for yield but are seeking safety in ever increasing numbers. And, they are looking for it hard and fast. What they are finding is the ultimate safety for wealth protection, namely, gold and silver.

As I have stated before, Jim gives real information that everyone needs to know about what is really happening in the physical world of Gold and Silver.   

Edit to add - My Interview of David Morgan- Silver-Investor.com this morning 4/20/13 about Silver and the U.S. will Go Cyprus per Federal Reserve. 

UPDATE - 10:15 pm - CONFIRMS everything Jim has said.. Zerohedge about gold and getting hard to get physical. 

China's Gold demand to outstrip supply by 2015 by 550 metric tons

China has a ferocious appetite for Gold now.  In 2012, Hong Kong shipped 94% more gold to the mainland than they did in 2011.

They are buying all the gold they can get and China's gold councils have projected by 2015, China's demand will outstrip their supply by 550 metric tons.   

There are approximately 2471 tons of gold mined annually around the world.  China mines approximately 403 tons of that.  That means within 2 years time China will be buying almost half the gold mined.

It is estimated they bought 832 tons of gold in 2012.  Here is an article from China on that subject alone.

China's gold consumption amounted to 832.18 tonnes in 2012, an increase of 9.35 percent from a year earlier, data from China Gold Association showed Saturday.

Consumption of gold jewelry rose 10.09 percent year on year to 502.75 tonnes, while those of gold bars and gold coins gained 12.22 percent and 21.63 percent, respectively, to 239.98 tonnes and 25.3 tonnes.

But consumption for industrial and other uses saw a drop last year, the association said.Demand for gold has grown steadily over the years as more Chinese see it as a hedge to diversify investment risks and battle against inflation.  China is currently the world's second-largest gold consumer after India.

China produced 403.05 tonnes of gold in 2012, making it the world's largest producer for the sixth straight year, according to previous data from the association.

Portions from article about demand:  (sorry for some reason the below will not format correctly, it splits the words when published)

The country's demand for the precious metal is expected to outstrip supply by at least 550 metric tons by 2015, statistics released by several gold councils showed.

China has been the world's biggest producer of gold for six years since 2007, with an annul output of 403 tons in 2012, a year-on-year growth of 11.7 percent.

A quarter-to-quarter comparison shows China's demand for gold investment saw a 24 percent increase in the fourth quarter of 2012, said Marcus Grubb, the council's managing director for investment.

To meet demands for physical gold, Hong Kong shipped 114 tons of gold to the mainland in December, a record high for monthly exports. Hong Kong's net gold flow to the mainland jumped 47 percent in 2012, totaling of 557 tons.

Data from the Hong Kong Census and Statistics Department show Hong Kong's total gold shipments to the mainland in 2012 jumped 94 percent from 2011 to more than 832 tons, while imports were six times higher at 275 tons.

You really have to wonder with China's purchases of gold and the demand so high, how is it that gold keeps getting hit and the price falls drastically as it did this last Friday.

I spoke to David Morgan from Silver-Investor.com  on Friday when Gold and Silver were getting smashed about what is going on.  He said that he believes they are in such a bad position of shorts that they had to smash it to get people to give up their long positions and to sell their gold and silver.  We spoke about the psychology of it and getting into people's mind in giving up their gold and silver.  Last year I interviewed David about that subject and the psychology of smashing metals.

I have no doubt that China loves the manipulation of Gold by the Western bankers so they can purchase at lower prices.  It is said they participate in the manipulation, which would make sense, so they can keep purchasing all they can get their hands on.

The question is.... are we now getting to the point that full demand has outstripped the physical and they are playing the paper to get people to give up their physical?  Is there such a shortage with countries now wanting to repatriate their gold, they are desperately smashing it for the last few times until it breaks away?

In regards to silver, there was an article two days ago on Silver Doctor  about a German car manufacturer hoarding silver due to the shortages of it and the need for them to have it in manufacturing their vehicles.

Portion:

New signs of an extremely tight wholesale physical silver market have now emerged, as a first-hand account has revealed that one of the largest and most famous German automakers is hoarding massive amounts of physical silver inside one of the most secure vaults in Zurich, Switzerland.

Everyone needs to ask themselves.... "Am I going to take advantage of these prices right now or am I going to give up on metals?"

I really hope that everyone makes the right decision and understands what is happening with the prices are all based on paper trades and not real physical gold and silver.

With the demand coming out of China for physical gold, (which does not include India's or Russia's appetites for Gold right now) prices will have to break out in a violent fashion one day (in the near future?).  At some point the truth will have to be revealed.

Think about how in less than 2 years (by 2015) the demand in China is going to outstrip supply.  This does not include any other country's demand or countries demanding their gold back.

Change coming To Silver - Manipulation to Ease? Also Demand is Huge - compared to Supply!

I am a big believer in Silver - Also you will see in various postings of mine earlier - I have discussed all the ongoing manipulation of metals - along with charts.

Before I get to the article - I also want to say, if you are familiar with the webbot - then you know they are pretty much on target with what will be happening. Something keeps coming up in the language at various times. What might that be?

Silver!!

Silver keeps being mentioned in the Alta Reports - one says next year Silver will be from $600 to $800 per ounce!! Imagine That!! Compared to under $15.00 today per ounce. Recently in the language there was a mention of silver, it was where it would be $24.00 per ounce one day and just days later - it would shoot up to $350.00 per ounce!! NOW Imagine That!!

Is the above information guaranteed? NO - Do not take that information as gospel - I am simply relaying what it says happens. Of course I can HOPE!!

So, knowing this language has been out there about Silver - I like to see what news is around regarding it.

I found a wonderful article today - from someone I follow and is truly a Silver Expert.

Ted Butler - he has a newsletter called "Silver Seek".

He had some great information today, which is encouraging to me, that the Webbot Alta language may just be on to something.

link to article: http://news.silverseek.com/TedButler/1249414304.php


"For instance, despite a sharp $3.50 decline from the $16 level in early June, no metal was liquidated in the combined holdings of the silver EFTs. This was very much at odds with the normal pattern of some liquidation in past price declines. Instead, combined silver holdings rose to new records. Plus, a number of new investment vehicles buying physical silver were introduced during this period. By my count, as many as 15 million ounces of silver may have been accumulated by existing and new ETF vehicles in the past month, adding to the hundreds of millions of ounces accumulated and taken off the market over the past few years. This contrasted with a notable liquidation in gold ETF holdings, even though the gold price declined in much smaller percentage terms over the same time period."

Above you can read, silver holdings have increased more than gold.

Oh, by the way, in case you did not know - there is actually less Silver in the World than there is Gold!! Also Silver is used for many more applications than gold is. Silver is an industrial metal besides an investment metal.

"In addition, Silver Eagle sales from the US Mint have accelerated over the past two months, with July recording the second largest monthly sales of the year. Gold Eagle sales, while still very strong for the year, recorded the second lowest monthly sales for the year in July. The Mint is on a pace that could result in more than 28 million ounces of Silver Eagles being produced and sold this year, the most in history and roughly three times larger than the average for the past decade. To put this number in perspective, the 28 million ounces potentially consumed in new Silver Eagles would represent more than 75% of all the silver mined annually in the US, the world’s eighth largest producer. This takes silver off the market and tightens physical supply. For comparison purposes, Gold Eagle sales, on the current pace, will consume 15% of gold mine production in the US, the world’s fourth largest producer."

As you can read - almost all the silver produced is consumed, compared to Gold - only 15% is consumed.

"Now there are promising signs of change, the most important being the appointment of a dynamic new chairman at the CFTC, Gary Gensler. He brings to the Commission something rarely observed in the history of the CFTC, market experience and a sense of purpose. As I indicate in this new interview with King World News, Click Here

I think Gensler is already the best chairman in CFTC history, even though he has been on the job for little more than 2 months. I think he represents the best chance ever that the CFTC will terminate the decades-long silver manipulation. Someday, I may have to eat my words, but that day is not today. Let me explain why."

Since there is a new Chairman, Ted Butler feels there is a good chance the manipulation will end. He has a very good, but somewhat complicated explanation at the link. The explanation is detailed, so I would advice going to the link to read it completely.

The long and short of it is, hopefully with the new chairman - the obvious manipulation which has been ignored for decades will now come to an end. The manipulation is at that point where only fools involved with the manipulation can deny it. The data has gotten overwhelming and obvious. I am reinserting graphs here, that I have in a post farther down on the page.

With the new chairman and knowing almost all the silver is being taken that is produced in the U.S. - then it does not seem unfeasible for Silver to shoot to the moon.

We can only Hope and Watch the market.

Have you positioned yourself for the manipulation of the metals market to possibly and finally come to an end?