David Morgan Interview. Computing Today's cash dollars on market - Gold would be $10,000, Silver 1,000 per ounce

I interviewed David Morgan of Silver-Investor  about what is happening in the metals market right now and how the events of the world are and will affect the metals.

We discuss how the sanctions against Russia and their bartering with Iran for oil now can lead Gold and Silver much higher in the markets.

We discuss how the manipulation could end of Gold and Silver and what it would take.

We discussed Silver being the most important metal in the world.  Here is an article I did about that and why it is the most important metal. 

David computes the amount of M1 (dollars in cash) circulating in the world, not credit, derivatives or fractional system of digital money to what Gold and Silver would be at, if we used the Gold standard.   He did not even attempt to compute the fractional money system to Gold and Silver prices because that would really put Gold and Silver at prices that are Zimbabwe numbers.

The interview is worth listening to.

David has excellent insight to the metals market and helps people understand the value of them and where the markets could head in the future.

Hong Kong Mercantile Exchange (Commodities: Gold Silver) is surrendering all metal trades and will settle in cash. Defaulted! No Gold or Silver to be given!

This is Super Huge news in my opinion!

The Hong Kong Mercantile Exchange, which is the gold and silver commodities trading house in Hong Kong is immediately stopping/discontinuing and will be settling all gold and silver trades in cash that are in house at this time.  Besides that, they will determine what amount/price they will settle the trades/contracts at.

This is the exchange that began trading gold and silver in 2011 for the Pacific areas.  This is the one we had all hoped would break the gold and silver manipulation.  It seems the manipulation and physical amounts, broke them and they are not able to provide the physical.

On May 18, 2011, HKMEx formally began trading with a US Dollar gold futures contract. ^[9]In an interview with Reuters, Helmig said it plans to launch gold and silver futures contracts denominated in renminbi. He also said HKMEx will follow precious metals products with contracts in base metals, and then energy and agriculture.^[10] On July 22, 2011, the exchange launched a second product, a US Dollar silver futures contract.^[11]As of 5pm on February 13, 2012 trading on HKMEx’s gold and silver futures reached 1,003,210 contracts, representing total turnover of over US$50 billion (around HK$390 billion).^[12] Trading on the exchange's US-dollar gold futures for the first time surpassed the 10,000 contract mark on June 4, 2012.

You have to wonder if people in  Asia were demanding the physical metals, compared to the paper as the Comex people are happy with.   It seems to me they ran out of physical and can no longer operate with physical gold and silver as a commodity.

They are using the excuse of commodity trading not providing enough money for them.  But lets face it.  The fact that gold and silver have been hit super hard the last couple of months and the fact that the Asian's have been buying all the physical they can get their hands on..... doesn't leave much to the imagination of what the truth is.

It seems we now have an official Default of an exchange for gold and silver!   When will the Comex put something out like this?

It will reapply later to trade gold and silver again with the Renminbi, but is ceasing all trading immediately.

There is no physical metals to be had from the exchange for anyone who put trades on it.  

Media Release from Exchange:

HKMEx Voluntarily Surrenders Authorisation To Provide Automated Trading Services

HONG KONG, 18 May, 2013  – The Hong Kong Mercantile Exchange (HKMEx) announces today it has decided to voluntarily surrender the authorisation to provide automated trading services (“ATS”) granted by the Securities and Futures Commission (“the SFC”).

With immediate effect, no new orders may be placed and all open positions will be financially settled at the settlement price determined by HKMEx and its designated clearinghouse.

The voluntary surrender decision was made to enable the Exchange to re-align its strategy with the new industry environment since its trading revenues have not been sufficient to support operating expenses and, as a result, its inability to meet the required regulatory financial conditions.
While trading on the Exchange will discontinue, HKMEx as an organisation will continue to operate with its existing staff, and will focus on developing new products including renminbi-denominated precious and base metals contracts that will better meet customer needs. It also intends to re-apply at an appropriate time for an ATS authorization to launch these products with stronger and more effective market maker programs.

“The favourable conditions under which HKMEx was founded have not changed. Global commodity demand continues to shift towards Asia as the region undergoes sustained growth, presenting great opportunities that we will continue to exploit,” said Barry Cheung, Chairman of HKMEx. “Our priorities now are to protect members’ interests by ensuring effective closing of open positions while strengthening our shareholding base and developing new products that play to our distinctive strengths.”

In closing out the open positions, the Exchange has developed a plan in consultation with the SFC to ensure the process is orderly and that investors are well informed of the matter. The Exchange will disseminate settlement prices to its members the morning of next Monday, 20 May 2013. Investors may contact the Exchange’s hotline at +852 3900 9898 for any assistance or enquiry.

My interview of David Morgan Silver-Investor - Confirmed U.S. banks will go Cyprus. Paper prices separating from physical. Get metals while you can!

David Morgan, Silver-Investor.com  spoke to me this morning about the Federal Reserve Governor Jeremy Stein, coming right out and saying the U.S. will do as Cyprus if needed and take the creditors (depositors) money so a bank will not fail.  Your money in the banks is not yours it is the bank's money and when you signed the signature card, you acknowledge that.

The blue print has been established.

Great last minute interview with David and he provides Very Important information.  He points out Everyone needs to protect themselves, immediately.  The Physical market is tight now and getting tighter even in the U.S., get gold and silver right now while you can.

He says the U.S. citizens need to Wake Up and get smart and informed NOW!






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

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:

_______________________________________________________________________________

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.

_________________________________________________________________________

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. 

Jim Willie Interview April 15, 2013. Real Physical Cost for bulk purchases over $2000 an ounce. People should be rejoicing end of Comex coming!

UPDATE - 4/20/13 - Information from Jim Willie's April Hat Trick Letter - Premiums and Dealers are Out of metals. 

I interviewed Jim Willie, The Golden Jackass and writer of the Hat Trick letter, this morning, April 15 2013 about the smashing of the metals.

He had emailed me this morning about it and that email and article is here.   He then agreed to do a fast interview as it is important for people to understand what is really going on.

He provided Awesome information as always and said those who purchase metals in bulk are having to pay $2000 or more an ounce for gold in the Asian markets.

He gives real information and is telling everyone not to freak out and to hold on.
This is a great interview especially for those who are concerned and watching the gold and silver prices drop.

People should be rejoicing as this is ending the Comex with the prices getting smashed as they are.  It is all paper that is going down there is no real physical involved.

Jim doesn't mince words and tells it as it is in this interview.

I have recording software that can only record in ten minute segments, so I am apologizing ahead of time for the cuts.  I have normally put them on different youtube videos at 10 minutes each, but I believe people prefer to be able to listen to it all on one video.

Here is Jim Willie no holds bar and giving the straight talk and information about what is real and what is not regarding the metals.    He also questions the Utah mining landslide and 'who' may have  been involved and was it really an accident?





Edit to add - Article: $20 billion in gold paper dumped.

Bill Murphy of GATA and Le Metropole, email to me this morning 4/15/13 about the Gold and Silver Smash Down

Bill Murphy the founder of GATA  and the publisher of Le Metropole, a subscriber newsletter emailed me back this morning when I asked his opinion of what is happening with metals.

Here is his email to me unchanged:

Hello Sherrie,

Black is White and White is Black in the gold world. The more bullish the situation is, the more they attack. Ever since the first week in October, when the price of gold traded $1793 and silver was $35+, the selling by The Gold Cartel/JPM has been the most intense I have seen in 15 years. Not one single day has gone by since then when they could not be spotted with one of their maneuvers.

This collapse has all been orchestrated with this collapse set in motion on Friday following the PM Fix when the physical pricing was over the day (PLAN B). In addition The Gold Cartel loves to attack on Friday. There is an 83.2% chance of gold being lower or unchanged on Friday because of what they do and when.

Gold was hit so hard by The Gold Cartel forces, it broke below key price levels and down from a massive base. After falling to $1501 on the Comex, it was bombed in the Access Market to $1477 (PLAN C). And on we went from there last night and today to below $1400.

As far as silver goes, my "smeller" has told me for some time JP Morgan was going to crash the market so they could cover more of their massive short position. Whilethe open interest in gold is fairly low, the silver open interest has blown into multi-yearhighs. Because of the strength in the physical market, super longs were taking JPM on.

They are now paying the price for doing so.

It is all beyond corrupt. Could go on for hours here. For any Canadian readers of yours, suggest they watch the CBC documentary on Thursday night, The Secret World of Gold. It will explain a lot of what happened today and why.

All the best

Bill

Jim Willie, The Golden Jackass email to me this morning about the smash down.  

Jim Willie the Golden Jackass, email to me this morning 4/15/13 about the Gold and Silver Crashing.

Jim Willie, The Golden Jackass and writer of the Hat Trick Letter emailed me this morning after I asked for his comment about what is happening with the Smash/Crash of metal prices.

Here is his email without any changes to me:

simple, and I dare you to post this !!

the Boyz want to kill demand by removing supply

the COMEX could actually shut down before long, like soon, dunno when

remember the lunatic BS monetary policy by the USFed

where they kill final demand by destroying the USEconomy ??

same artists at work

the divergence between the paper and metal Gold price is growing

it means the Western Gold market is broken

I have been forecasting the divergence for a long time, and it is here finally

huge precious metal demand growth, lower price, therefore corrupted (sorry, I dont fall for it)
looking forward here to the day when COMEX shuts down
it will come after they steal all your money in private accounts
if the Gold price is being pushed down, it is because the Bad Guys want to buy it from the Idiot Sheeple sellers
I try not to be a flippant a-hole
if you want the COMEX to be busted, then you must hope for a paper vs metal price divergence
the true price for large authenticated transactions is at least 15% to 20% higher than what COMEX says

I hear at least $2000/oz now, and at times much higher
I want a divergence to show up
I want very big coin price premiums
I therefore am ENCOURAGED BY THE SMASH DOWN
it means the Boyz are dying an unspeakably horrible death !!!
yet 90% of the dumfuk gold community is pissing and moaning like bonafide morons
they dont understand the gold market at all, after all these years
I have lost patience with most, since they are so so so unenlightened
but many colleagues I deal with and key clients are indeed enlightened
some stupidoes depend on the COMEX price for income, like total fools, some with leverage, even after MFGlobal
carry on
not meant as any insult to you unless you stare at the COMEX price all day long like a mesmerized rat

the divergence is absolutely killing the banking syndicate

they are committing suicide in front of our eyes, as the East is draining planeloads of gold from them

they want to kill Western gold demand, but they have killed their own big hollow reed banks

/ jim

Jim sent an additional comment to me in another email:

it is pathetically humorous what is happening in gold right now

investors should be rejoicing for the death throes of the big banks

instead they are pissing & moaning, when the bankers are preparing to steal their private accounts

the nation is populated by morons

I am also linking the most ridiculous article this morning from Bloomberg about the metals being smashed.  They are saying it is due to "The recovery of the economy and extended 'metals bear market!"  What a LAUGH!  Who would believe such B.S?  Goldman is advising people to sell.  

The turn in the gold cycle is quickening and investors should sell, Goldman Sachs Group Inc. said April 10.

 “A combination of stronger dollar, Cyprus gold selling news and talk of quantitative easing ending later in the year all weighed on the price. We need some rationale back in the market before one thinks about getting involved again.”

As a perspective to all this "get rid of gold and silver talk being broadcast on MSM, we have the fact that I have received an email from a large dealer saying never before has it been where he could not get inventory of gold and silver, but there is no physical of the metals to be had.  Then look at this site, which is a large bulk metals dealer site, Tulving and you will see "SOLD OUT" for the silver and gold.

Edit to Add 1:15 pm - I interviewed Jim this morning about the metals smash.  here is the interview:


 

Edit to Add: Bill Murphy of GATA emailed me this morning about the metals smash, here is email.

Mexico wants to Physically Audit their Gold at Bank of England

Jan Skoyles gave me permission to reproduce her article about Mexico wanting an audit of their Gold at Bank of England.  The original article is here.

The Mexican standoff: Gold, Banxico and the Bank of England

Posted MAR 6 2013 by JAN SKOYLES in GOLD BULLION, INDEPENDENT COMMENT & ANALYSIS with 6 COMMENTS

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Late last month it was reported that Mexico is going to organise an audit of their gold stored at the Bank of England.

Financial journalist Guillermo Barba, writes that that the Mexican Superior Audit of the Federation (“ASF” in Spanish) has made an official ‘recommendation’ that the Bank of Mexico “should “make a physical inspection with the counterparty that has the gold under its custody, in order to be able to verify and validate its physical wholeness and the compliance with the terms and conditions of dealing with this Asset…” It was verified by the ASF that this has never been done by Banxico.”

It turns out the Banxico, isn’t really even that sure how many gold bars they own.

Barba’s concern, along with many other individuals and countries, is that the gold may not even be there. In documents received by Barba, from Banxico, reference is made to the London Bullion Market Association which he finds ‘disquieting.’ This is of course down to the fractional reserve system which large bullion banks operate on. This can, of course, only survive if the countries don’t come running for their gold at the same time.

The gold stored at the Bank of England came under (weak) media scrutiny at the beginning of the year when Germany announced that it would be bringing back some of its gold, not from the Bank of England, but from Banque de France and the Federal Reserve.

At the time many speculated that the gold held at the Bank of England was not being returned to Germany as storage was not being charged for and it ‘made economic sense’. In case anyone was in any doubt as to the existence of the gold the Queen of England was rolled out for a photo-op, just to reassure any doubters around the world.

It’s clear that Queen Elizabeth II’s visit did not do enough to put the Mexicans’ minds at rest.

The news of Germany’s repatriation, and now Mexico’s audit request should not be big news.

The fact that it is news shows what idiots central bankers have been. These various central banks are now thinking maybe they should have paid better attention to the quality, location or even existence of the gold.

Gold bullion storage on Threadneedle Street

Historically it seems a gentleman’s agreement has been enough to guarantee the existence of your gold in another central bank.

Mexico has, according to official figures, 125 tonnes of gold bullion, 95% of which is held abroad and 99% of this is held on Threadneedle Street. The gold represents a mere 4% of Mexico’s reserves, and works out at just over 1.12g per capita.

Mexico doesn’t just hold gold abroad it’s also increasing in the production stakes. Whilst silver is the country’s mining cash cow, Mexico is also the world’s tenth largest producer of gold. By 2014, the World Gold Council (WGC) estimate it will be producing approximately 75 tonnes a year – an 80% increase in production since 2007. Between 2010 and 2011 gold production increased by 22% meaning Mexico had the world’s highest growth rate in terms of production. At present gold production only accounts for 0.38% of GDP.

Back in 2011, the country made headlines when they bought nearly 100 tonnes of gold between the February and March. At the time it was, and remains, one of the largest single, monthly purchases by a central bank in recent history.

The Bank of Mexico indicated that the decision to invest in gold was as part of a decision to divest the country’s reserves which had rapidly expanded from approximately $75 billion to $120 billion between Q1 2007 and Q1 2011.

Buying up gold reserves is one thing, it is often explained away by it being good practice to diversify the country’s reserves. But nowadays increasing numbers of people see that as showing a concern for currencies – whether your own or the dollar.

But to ask for an audit or to repatriate it makes it almost personal that one country to another doesn’t have any trust.

What’s made the Mexican ASF decide now is the right time to start asking questions about their gold?

Along with all other fiat currencies across the world, the Mexican peso is rapidly losing value. But not a significant amount more than the British Pound.

As we wrote a while back, in 5 reasons why a country would repatriate their gold, one of the reasons to start checking up on your gold is when you don’t trust the custodian country to look after their own currency. Recent developments in the British pound may go some way to explaining ASF’s move.

Perhaps Mexico foresaw the drop in the British pound, ahead of the Moody rating announcement and thought they should start paying more attention to their most precious assets. In fact this month gold is down against the MXN, compared to the pound in which it is up.

The Bank of England should be held solely responsible for the devaluation of the pound. Things are so bad, that the pound is only one of two currencies which is down against gold at the moment.

Despite the loss of the long-held and cherished triple-A rating, the Bank of England still remain set on weakening the British Pound, both the outgoing and incoming governor appear keen to carry on with QE, even discussing increasing it.

Can you trust the Bank of England?

Another reason we believe explains the investigations into gold holdings is that you don’t trust the gold might actually be there.

As Alasdair Macleod explained in a recent article, the Bank of England is one of the most trusted in the world and ‘oversees the largest bullion market by far.’

However, as Mr Macleod concludes (and Barba mentioned earlier), that , ‘on the basis of reasonable supposition it appears that the total amount of monetary gold at the Bank of England, including that of Germany, Austria and Mexico and the UK’s own stock, cannot be more than 3,320 tonnes, perhaps significantly less. The belief that the world’s central banks store a significant amount of their gold in London is therefore incorrect. This raises two interesting questions: where is it all, and does it actually exist?’

At the moment Mexico is at risk of non-payment, until the gold’s existence is at least verified and then brought back to home soil, how will they really know that their reserves are safe?

Mexico’s on-going gold investment

Last week it seemed we couldn’t read anything on gold that wasn’t declaring the end of the bull market. Yet when booming emerging economies are not only checking up on their gold, but also stocking up on it we have to wonder if these analysts in their dollar-funded towers really know what’s driving this bull-market.

Whilst the price might be lying low we should bear in mind that we shouldn’t just look at its price. We should also be looking at what the fundamentals to gold are doing. Central banks’ relationships with gold have been one of the top drivers for gold over the last few years, increasingly so. When they’re not buying up hundreds of tonnes, it doesn’t mean they’re no longer interested.

As chatter of currency wars hots up just look out for other central banks talking about getting their houses in order.

Do you think Mexico, or any other central bank, will be looking to bring their gold back? Let us know in the comments below
Want protection from debt and defaults? Buy gold online in minutes…

Please Note: Information published here is provided to aid your thinking and investment decisions, not lead them. You should independently decide the best place for your money, and any investment decision you make is done so at your own risk. Data included here within may already be out of date.

David Morgan Interview "Hold On" - Unlimited Paper Silver but limited Physical Silver

David Morgan of Silver-Investor and the Morgan Report did an interview with Elli Martin Report, about the smashing of Silver over the last few days.

Besides the interview, David and I spoke on the phone yesterday about the smashing of the metals.
One thing he said clear and firmly to me:

"They have unlimited Paper in the Silver market.  But there is limited actual physical silver!  They can play the game but it will catch up with them when the physical silver depletes.  When will that be?  Who knows.  But it will happen, when they pressure the markets as they do with paper."

I interviewed David last year about the psychology of crushing the metals market and what it does to people who believe in the metals.  The link has the same video I am inserting here at the bottom, but it also has the complete transcript of the interview, in case you want to read it, besides listening to it.

 David's interview with Elli Martin



My interview of David - last year





FYI - check out Ebay and the Silver Bullet Silver Silver Shield coins, they have sold (completed listings) anywhere from $45+ to $125 each.   The banker coin, which is no longer available is selling at $100 to $125 easily on ebay.    Though some listings have outrageous prices on them at $500 plus for one coin, those have not sold.

Now is the time to buy both gold and silver with the paper prices low.

So far today 2/15/13 12:20 PM est,3 years worth of mining of Gold has traded (dumped) on the market. Silver 1/2 years of mining (Charts of Silver and Gold today)

So far as of 12:20 PM est 387,250,000 ounces of Silver have traded as a whole.   There are approximately 760 million ounces of silver mined every year (year 2011 - 761 million ounces mined).   

Here is the site with information about Silver trades today. 

Here is the information and amounts traded to what months in the Silver futures market so far today 2/15/13.  You can see the volume next to what futures month of the contracts (5000 ounces each) have traded dumped.

The chart below is for March 2013 contracts only as of 12:20 Pm est.   The amount of contracts just for next month is:  261,160,000 ounces dumped for the month.  

Here is gold's future trades for so far today:

Each of the volume contracts shown for the future months is 1000 ounces of gold.

All together they show 238102 contracts traded dumped so far, that equates to 238,102,000 million ounces of Gold traded.

There are approximately 2471 tonnes mined of gold a year which equals to 79,442,650 ounces of gold.

That means 3 years worth of gold dumped so far.

Chart for Gold April 2013 future contracts.

They decided to do a major smash today.  Considering there is a major shortage of Silver happening and countries are asking for their Gold back, the big shorts seem to be dumping their contracts.

Bill Murphy Interview with me today 2/1/13 about Gold Manipulation, Germany's Gold, Silver shortage, Chinese Yuan and numerous other discussions.

I was honored to interview Bill Murphy the founder of GATA and lemetropolecafe.  We discussed Germany's Gold, China being backed by Gold, the Comex, Jp Morgan and their shorts and the class action suit that was dismissed.   You will need to turn up your speakers as the audio from Bill's side is not very loud, but you will then hear me "loud and clear."

Related article - IMF confirms Chinese Yuan as "Global Reserve Currency"

Part 1 of the interview

 


Part 2 of the Interview

David Morgan Interview with me about Silver Shortage, Germany's Gold and China as the Global Reserve Currency on 1/29/13

David Morgan the Silver-Investor.com and Morgan Report graciously allowed me interview him today 1/29/13 about what is happening in the Silver market, Germany wanting their gold and China using "Global Reserve Currency" in an article for the Yuan today.

Part one - Silver shortage/manipulation


Part 2 - Germany and China




Part 3
 

Chinese News Article: Crossborder Yuan Loans - "Before it becomes a Global RESERVE Currency."

Update -1/30/13 - IMF Confirms Yuan a Global Reserve Currency

It is the first time I am seeing the words from China that comes right out and says what the plans for the Yuan is.

The first batch of cross-border yuan loans agreements were signed on Monday after thecentral government approved the Qianhai area in Shenzhen to test a freer yuan before it becomes a global reserve currency.

 As the loans come from Hong Kong, the move is a test offurther capital accounts opening by allowing offshore funds tobe transferred to the mainland.

Previously, offshore yuan could flow back to the mainland onlythrough yuan-denominated trade and renminbi qualified foreigninstitutional investors.He added that the yuan is marching gradually and steadily toward becoming a global currency,and he expects more breakthroughs on that front this year.

They have never said "Global Reserve Currency" before.  They have said "Convertible currency" and other words.

China has actually imported more gold and silver than they admit to.  They imported an estimated 1000 tons of gold over the last few years but experts believe it was much more than that.   They have also been importing silver in major quantities that are not being revealed.  I read a story the other day about someone in China trying to buy silver and gold bullion but the place was nuts with crowds all trying to buy the gold and silver the dealer had just gotten.

Kingworld News has an article about China being a gold backed currency.

Jim Willie did an interview last week and he mentioned that China was going to take it slow and not be totally overt in becoming the Global currency because they don't want the U.S. to start a war for some made up reason against china.

Mining.com has the rumor China plans on importing 5000 to 6000 tons of gold this year (article from 2012). 

unconfirmed speculation" that China – the world's number one producer and second-placed consumer (at the moment) – is gearing up to buy up to at least 5,000 to 6,000 tonnes starting before the end of the year.

Silver is huge in China too.  There has been a lot of talk in the "silver world" saying there is a major shortage.  Besides the fact that the 2013 Eagles sales have been suspended due to over 5 million orders in the first few days of 2013.   The majority of silver mined is used for industrial purposes and it seems there is a shortage happening.

The writing is on the wall.  China plans on having a Gold backed Global Reserve Currency.  I have written about the agreements China has with other countries and has already began trading in Yuan instead of dollars.  The BRICS began those trades last year.  The only thing that is keeping the dollar as the "reserve currency" right now is because it is the "Petrol Dollar."   Saudi Arabia is the reason the dollar is still the oil trading currency.  Is it any wonder that Obama bows to the King of Saudi Arabia as the U.S. is obviously beholden to them otherwise it would not still be the official reserve currency of the world.

Once Saudi Arabia decides to go with the rest of the world and begins using other currencies for oil as India, Iran, Russia and China already do.... it will be game over for the dollar.

Obviously the day is getting closer since the article says "Global Reserve Currency" from China Daily.  Again they have never used those words before from what I have seen.  They have used "Global convertible currency."  Remember China purchased the London Metals exchange last year, which began using the Yuan and the CME began added the Yuan as a trading currency last year too 

China holds things very close to their chest in information and they don't put information out normally until deals are done.  So with them allowing "Global Reserve Currency" words out, what deals have been done already and how fast will it all go down and the dollar with it?

Some of my favorite metals sites are: David Morgan of Silver-Investor always has great information about Silver and what is really going on.   I go to Gata, Got Gold Report , and 24 hour Gold for the latest in gold information.

Few probably are aware of this, but long time subscribers to The Morgan Report (TMR) were notified that a meeting had taken place in South East Asia roughly a decade ago discussing -- you guessed it --A GOLD BACKED YUAN.

Most people in the West do not understand the Chinese mind set of looking out several generations, 

Edit to add:   I found another article today on the same Chinese News site - Their frustration with the dollar titled "The Unloved Dollar"

But the dollar's role as international anchor is beginning to falter, as emerging markets everywhere grow increasingly frustrated by the Fed's near-zero interest-rate policy, which has caused a flood of "hot" capital inflows from the United States. That, in turn, has fueled sharp exchange-rate appreciation and a loss of international competitiveness - unless the affected central banks intervene to buy dollars.

Wow - they have really put out information now as I have never seen before and the two articles being out on the same day...... says something is already happening, we just don't know the full extent yet.  But I have a feeling since they have come right out and said "Reserve Currency" and "Unloved Dollar" whatever the changes of Currency will happen this year.

Update - 1/29/13  - David Morgan of Silver Investor allowed me to interview him today about this subject, the silver shortage and Germany and their gold.