The world’s whitest metal is where the real fortunes will be made

October 19th, 2012 → 5:57 pm @ // No Comments

Get ready for the Silver Bomb to go off.

We are on the brink of an absolute change in the economy of the
entire world and particularly in the economy of the Americandominated
western empire. For some, it is the brink of unfolding
disaster, as none of the old ways will function and those caught in their
mechanisms become the final victims. For others it is the brink of
unmatched opportunity as we come face to face with a “cosmic
alignment” of the forces of economy and history.

This moment will likely never happen again, and is destined to be
the creation of some of the greatest fortunes ever imagined. These will
be fortunes of substance, representing tangible wealth that is not tied
to the whims of a controlling system of central banks. The history of
man suggests that the coming moment (or what will be but a moment
in relative terms) will be eventually swept away by another system,
probably a truly global system, as opposed to the present westerndominated
system. The time in between now and then will be the great
reset of values of all commodities, across all economies that the world
has ever seen. Items of intrinsic value will again have it attributed to
them. Items that are in and of themselves worthless will return to
evaluation as such.

As the value reset happens there will be no ignoring certain
conditions that have never before occurred together and will combine
to make silver to be the single greatest investment opportunity ever
seen. This has never before happened. It is usually the opposite end of
the cycle in effect as commodity metal is occasionally diminished in
value. New discovery of vast amounts of a usually precious metal has
occurred, which has negatively affected the price of that metal, such as
the downward pressure put on Spanish silver and gold from the
Americas.

For the few that understand the tremendous opportunity, silver is
positioned for a price explosion. The world is running out of silver.
It will be recorded when this phenomenon comes fully into view
that the Silver Bomb has gone off, that it is over, and the silver is now
essentially gone, except for the rare and accordingly-high-priced stashes
of it that remain in private hands.

The world is consuming the metal silver like never before in all of
history. Of all the silver ever mined which is around 50 billion ounces,
only about 1 billion ounces, or 2% of it, still remains above ground, with
the rest having been consumed as an industrial metal. Compare that to
gold, which has been kept and not consumed like silver, so that of the 5
billion or so ounces of gold that has ever been mined, about 2 billion
ounces, or double the amount of silver is still around. As a basis of
comparison, the silver supply when measured in months of available
silver has vanished so fast, that while there was 140 months of available
above-ground silver in 1970, supply had diminished to only 50 months
worth by 1990, and shockingly, there was only 11 months of available
above ground silver to be had by 2010.

Most of the silver mined annually is consumed in all the electronic
gadgets, batteries, windows, pesticides et cetera, in which silver is used,
all of which after use, get thrown away. Once it has gone into these
products, it is not recoverable. People worldwide are becoming
surrounded by gadgets and gizmos that none of their predecessors had
and proved they could live without. Today, their lives are so
intertwined with electronic devices that they can’t imagine living if they
were suddenly deprived. The devices are all essentially disposable with
short functional life-spans. They are delicate and get broken fairly
easily, are not repairable by the average user, and are constantly in
danger of becoming obsolete as they are rendered technologically outdated
by new versions or cutting–edge alternatives. The older models
are essentially thrown away and replaced.

Of all metals silver is unique and therefore special in several ways.
It is the most electrically conductive metal known. Silver is used in over
10,000 commercial applications, yet it does not get recycled because
the arduous task of recycling only becomes cost effective if the price of
silver is around $1,000 an ounce. Silver is being consumed at an
increasing and alarming rate. It is alarming, in that it is being used up
faster than it is being mined. It is believed that as much as 98% of the
Earth’s above ground supply of silver has already been consumed. The
industrial demand for silver is approaching a half billion ounces per year
which is over half of all silver produced annually. It continues to
increase and is expected to possibly be as much as 85% of annual silver
production by 2015.

In addition to the recent acceleration in its use, silver is not being
extracted out of the ground as fast as it used to be. The annual amount
being mined is less every year. There have been exceptional periods in
history when huge, unprecedented finds of silver have recalibrated the
basic value of the metal. Usually however there has been a steady flow
of, if not “mother” lode-sized, then still sizeable new discoveries. These
larger finds have historically added to the annual mining output. That is
no longer the case. For the last decade, there have been no new
discoveries of silver made that have been sizeable enough to affect the
basic equation that silver demand has critically eclipsed silver supply.
Unlike Gold which is chemically inert, much of what makes silver so
industrially versatile is the fact that it can chemically bond to other
elements. The “tarnish” that is seen on silverware is a combination of
the oxygen in the atmosphere with molecules of silver on the item’s
surface. Gold does not do that, and gold coins have been brought to
the ocean’s surface from the sight of centuries-old shipwrecks that
looked as if they could have been minted quite recently.

Silver does occur naturally in its pure metallic “native silver” form,
but it is exceedingly rare. It has been found more often in naturally
occurring alloys with other metals, such as gold known as electrum, but
still these are also rare.

The massive lode claims of the past were essentially concentrations
of silver that were discovered in “veins” of a blue-colored material,
which when assayed were found to be nearly pure sulphuret of silver.
These massive silver-rich veins were, in places, hundreds of feet thick.
These are essentially gone. Most of the silver being mined today is in
the form of lower quality silver-bearing ores of variable concentration
found in veins of only fractions of an inch. That is when it is found in
“blue dirt” veins at all.

Often, silver-bearing ore is discovered as the by-product of the
extraction of some other, more concentrated metal. Base metal mines
of, for example, copper, zinc, or lead have yielded silver from the leftover
“tailings.” The silver in most commercially-viable ores today does
not come easily, as it is often “locked” in chemical compounds with
other elements which must be separated in difficult and expensive
chemical reaction processes. It may take the processing of incredible
amounts of ore to obtain any recoverable amounts of silver. The
Comstock Lode discovery yielded tons of nearly pure silver ore. Today,
ore that yields a paltry 3 ounces of silver per ton is considered to be
“high-grade”. Existing silver ores are now the lowest quality ever seen.
There is no replacement for silver in its present role as an industrial
precious metal. It has been used for centuries in the manufacture of
mirrors, and more lately, in the manufacture of polarized and UV lightreflective
glass, but that’s not what is gobbling it up. It is, by
comparison, silver’s relatively new utility in the recently begun age of
electronics which is proving to be the reason for its being consumed at
such an auspicious rate. The societal changes brought about by the age
of electronics have created a trend toward a high-technology hungry
lifestyle that shows no sign of reversal. Silver is simply critical to the
world of electrical and electronic technologies, and manufacturers and
investors will pay whatever they must to own it.
Silver, as the world’s greatest conductor of electricity, is used in
electrical and electronic devices of every type. It is used in every
television, telephone, computer and thousands of types of electrical
contacts, switches, fuses, relays, and connectors. The exploding
demand for silver is also being fueled by the voracious appetite for
silver-zinc batteries which are common in small “personal” electronics
such as watches, cameras and auto alarm remote control key-fobs. The
recent spread of cell-phone technology in developing markets has
demonstrated the demand for billions of silver-dependant,
photovoltaic-equipped, solar-charged cell phones.

Silver has critical uses in the medical field as well. It has long been
understood that silver has special antibiotic characteristics. The legions
of the Roman army found that water would not stagnate if it was
transported in silver urns. It remains the vessel and utensil metal of
choice for the well off for a reason, as reflected in the old saw
describing a wealthy heir having been born “with a silver spoon in their
mouth.” Surgical silver wire, screws, plate and staples have all found
their place in modern surgical suites. Silver impregnated swabs have
been used to sterilize the eyes of newborn infants and silver
impregnated bandages are used, most notably, in the treatment of
infection-prone burn victims.

It has been observed that molecular silver in a nano-particle form
has effective general antibiotic tendencies. As is shared to a lesser
degree in the case of zinc and other elements, silver is superior in its
ability to thwart the reproductive cycle of single-celled micro-organisms,
and it is believed, that of simpler mechanisms such as viruses. This
growing field of research has found a loyal following in users of what is
referred to as “colloidal” silver as a broad-spectrum antibiotic. Colloidal
is a term that refers to the size of a particle being so small that it
remains “in suspension“in a liquid such as distilled water. Colloidal
silver is used to combat the growth of infection in external or “topical”
application and in internal use, both when swallowed for targeting of
digestive tract infection after which it must be followed by reintroduction
of normal gut flora or “pro-biotic” therapy (silver targets all
microorganisms and does not know the difference between good gut
bugs and bad ones), and when used through sub-lingual absorption
directly into the user’s system.

At the same time that industrial use of silver is mushrooming,
demand for silver as an investment commodity has blossomed to never
before seen levels in the developing nations. Most notably, Chinese and
Indian investors have taken to buying both gold and its cheaper
running-mate silver as a store of their new found wealth. Investor
demand is increasing along with industrial demand. This double
demand has created a great part of the unique set of conditions that are
now beginning to become apparent.

The supply of above ground silver, sought after for all of these uses,
particularly in the last few decades since the advent of electronics, has
been seriously diminished. The all-time greatest discoveries of silver
have all but been consumed, returning the world’s supply to scarcity
levels not seen for over700 years. Demand for silver is high and silver
supply is low. That is usually the recipe for sky-rocketing prices of any
commodity. Usually it only takes motion, in either the supply or the
demand of a commodity, for it to reflect in market pressure-triggered
adjustments to price. Usually, if demand goes up, but supply remains
constant, prices react to upward pressure and go up. Likewise, if
demand is constant, but supply diminishes, prices also usually rise. Both
of these changes reflect more demand than can be met with existing
supply, and both are normally reflected in higher prices. If demand goes
up at the same time that supplies diminish, the demand-outstripping–
supply upward pressure effect is exponentially amplified and the price
goes astronomically high.

Strangely, this has not been the case with silver…not yet.
Silver exists in the earth’s crust at about sixteen times the amount
of gold. That means that historically, there is about sixteen times the
amount of silver being mined as there is gold. That has always priced
silver at about one-sixteenth the price of gold.

There have been exceptions to the 16:1 rule, notably when the
silver supply in the United States swelled with the discovery and
development of anomalously rich silver finds, such as the legendary
Comstock Lode. These finds of the late 19th century caused the
issuance of millions of one ounce U.S. silver dollars, which were for
decades the prominent form of common currency. The amount of silver
flowing into the economy was a great factor powering the burgeoning
national expansion of the United States of America.

Much of the wave of industrial mechanization of farming was
financed with silver as the “silver farmers” as they were known were
able to by-pass the central banks as they could receive low-cost silver
money instead.

The effects of these forces began a running battle between the
central banks who sought to control the price of silver, and free-market
forces which would adjust its price naturally according to true supply
and demand.

The manipulation of the silver market has been behind the scenes
throughout the history of central banking in the U.S. including recently–
surfacing evidence of banker collusion to manipulate silver. While
market manipulation has been going on since there were markets, this
practice has now gotten so out of hand that the news of it has leaked
out into public view.

It began as part of the fallout from the 2008 debt crisis. Several
banks took advantage of a competitor’s illiquidity and absorbed them
lock, stock and barrel, such as in March, 2008 when J.P. Morgan Chase
(JPM) acquired the fatally-ill investment firm Bear Stearns. Part of what
came in the purchase, were a massive number of Bear Stearns’s existing
short positions on silver futures contracts. A short position is essentially
a bet that the price of a commodity will fall. Stearns’s positions would
be worth billions of dollars if the price of silver fell. It would have been
a tidy sum for J.P. Morgan to have had bought ownership of. There was
but one fly in this multi-billion dollar ointment and that was the rush of
investors into silver positions as a safe haven for their hard-hit dollardenominated
portfolios. Were this to have had the normal effect, it
would steadily drive the price of silver up. On March 16, 2008, the very
day that Bear Stearns went out of business, silver had risen to a level
not seen since the 1980’s and hit the price of $21 per troy ounce.

This would have been devastating to J.P. Morgan Chase who was
sitting on piles of bets that the price would go down, not up. Then the
un-thinkable according to laws of economics happened. Inexplicably,
from March 16, 2008 forward, when it was directly in J.P. Morgan
Chase’s favor, the price of silver fell nearly 17% lower. While the
average investor scratched their head in disbelief and tried to fathom
how this decline in the price of silver could happen, J.P. Morgan Chase
was not only saved from catastrophic losses, but allegedly took on even
more short positions and heavily increased their take.

Silver began to rebound and by July, 14 had righted itself to $19.30
per ounce. It again looked like JP Morgan was going to get clipped as
they then held, along with the HSBC bank, at some estimates over 85%
of the commercial net short positions in silver futures contracts on the
COMEX. This would have allegedly caused them to have been in arrears
for an eye-popping 169 million ounces of silver. Virtually equal to the
entire COMEX warehouse stockpile, the second largest in the world,
that much silver would have been roughly 20% of the entire world’s
annual mine production. There seemed to be no way out for JPM.

Again, for no discernible reason, the price of silver began to sink…and
sink…and sink even more, until it had lost over a third of its value in just
thirty days, when by August 15, it stood at $12.82 per ounce. Then the
bottom totally fell out and by October, silver was left gasping at a
measly $9.00 an ounce. Many investors were destroyed, and for a
moment, silver was so low it essentially could not be gotten rid of.
This was un-cannily fortunate for JP Morgan Chase who made an
obscene amount of profit off of their gigantic, concentrated short
positions. It is alleged that off of the drop in the price of silver from
August 14 to the very next day of August 15, 2008, that JP Morgan
Chase raked in $220,000,000. Considering that figure amounted to
profits for just one day, the entire descent in the price of silver from
March through October 2008 would produce incalculable profits for JP
Morgan Chase and HSBC.

The metal commodities market is theoretically to be monitored by
the Commodities Futures Trade Commission (CFTC) for illegal and unfair
trading practices. They are expected to prevent unfair circumstances,
such as not allowing a trader to corner a large enough concentration of
short position holdings to be able to continuously hit the boards with a
strong enough showing of short bids to be able to absorb any upward
pressure and artificially cause a drop in prices, essentially manipulating
the market. JP Morgan Chase’s outrageous fortune finally caught their
attention.

The story was run on March 9, 2010 by the New York Post that the
CFTC in joint action with the Department of Justice (DoJ) Anti Trust
division was conducting an investigation of JP Morgan’s activities in the
silver market. JP Morgan stated that they were not under investigation
by the DoJ. The statement did not deny that JPM was under
investigation by the CFTC. This would be followed by reports on the
website of the Gold Anti-Trust Action committee (GATA) that a London-
Based metals trader had blown the whistle on JPM and HSBC. The
trader, named Andrew Maguire had apparently been aware of their on8
going investigations and in November, 2009 made contact with the
CFTC during which he would report criminal trading behavior.
From January 26 through February 9, 2010 Maguire had sent emails
to the CFTC’s enforcement division which detailed silver market
manipulation before it happened, predicting when it would happen and
pointing out the accuracy of his predictions both while it was in progress
and after it had happened. In a February 5 follow up email to Eliud
Ramirez, a senior investigator for the enforcement division of the CFTC,
after his predictions sent in an earlier email had played out exactly as
described, Maguire expressed his opinion that the CFTC was also
culpable for not taking any action against JPM. In the email which is
reproduced in full below from the GATA website Maguire wrote,
“A final e-mail to confirm that the silver manipulation
was a great success and played out EXACTLY to plan as
predicted yesterday. How would this be possible if the
silver market was not in the full control of the parties we
discussed in our phone interview? I have honored my
commitment not to publicize our discussions.

I hope you took note of how and who added the short
sales (I certainly have a copy) and I am certain you will
find it is the same concentrated shorts who have been in
full control since JPM took over the Bear Stearns
position. It is common knowledge here in London
among the metals traders that it is JPM’s intent to flush
out and cover as many shorts as possible prior to any
discussion in March about position limits. I feel sorry for
all those not in this loop. A serious amount of money
was made and lost today and in my opinion as a result
of the CFTC’s allowing by your own definition an illegal
concentrated and manipulative position to continue.

… Even if the level is in dispute, what is not disputed is
that it exists… Obviously they feel they can act with
impunity.
If I can compile the data, then the CFTC should be able
to too.
I would think this is an embarrassment to you as
regulators” (emphasis added)

After numerous emails to Ramirez at the CFTC, Maguire had heard
nothing in response. On February 9, 2010 Maguire wrote again
referring to his having nailed down details of a planned manipulation
event and expressing frustration with the CFTC’s lethargic enforcement,
“Surely you must at least be somewhat mystified that a
market move could be forecast with such accuracy if it
was free trading.

All you have to do is identify the large seller and if it is
the concentrated short shown in the bank participation
report, bring them to task for market manipulation.
I have honored my commitment to assist you and keep
any information we discuss private, however if you are
going to ignore my information I will deem that
commitment to have expired.”

Unsatisfied with the lack of action on the part of the CFTC, on
March 23, 2010 Maguire went public and contacted, GATA Director
Adrian Douglas and shared his information. The story was widely
publicized by GATA, which had already entered the arena of exposing
metals market manipulation in a full-page ad in the Wall Street Journal.
That advertisement, ran on Thursday, January 31, 2008 and was titled
“Anybody Seen Our Gold?” and states that it could be proven that the
gold reserves of the United States and that of other Western Nations
were being “used for the surreptitious manipulation of the international
currency, commodity, equity, and bond markets”.

In just a few days after Maguire went public with his information,
the details began to surface, including in a hearing of the CFTC
presumably convened in order to publicly appear to be doing
something. Not surprisingly, on March 26, in a bizarre and eerily
coincidental incident, Maguire seemed to have been handed a clear
warning to shut up…or else. On March 29, 2010 the New York Post
again reported on the on-going silver manipulation saga in an article
describing an unidentified “hit and run” driver that struck Maguire and
his wife, nearly killing them in their car, and sending them to the
hospital. In a scene that might have been pulled from a tense
Hollywood thriller or intrigue film, the driver nearly killed another
pedestrian as he fled the scene, crashing into several other cars and
triggering a chase involving helicopters and London police. Even though
the London Police allegedly caught a suspect in connection with the
incident, neither the identity nor whereabouts of the suspect, presumed
to be Maguire’s attacker, has ever been disclosed.
Maguire’s accusations did not end with the short traders and the
CFTC, but included the Federal Reserve when he expressed in a March
29, 2010 radio interview with GATA board member Adrian Douglas
that,

“JPMorgan acts as an agent for the Federal Reserve;
they act to halt the rise of gold and silver against
the US dollar. JPMorgan is insulated from potential
losses (on their short positions) by the Fed and/or
the U.S. taxpayer.”

In light of the negative press exposure and ramped up activity from
the CFTC, JPM “quietly reduced” their short position holdings in August
of 2010. Interestingly, the price of silver began to rise in September of
2010 and continued doing so, tripling in price from $16.00 to over
$48.00 per ounce. Whoever might have anticipated JPM’s movement,
or possibly more to the point the suspension of their manipulative
movement, could have gone long on silver and absolutely cleaned up.
On October 27, 2010, a $5,000,000.00+ Class Action Complaint case
number 8157 was filed with the United States District Court Southern
District of New York

“PETER LASKARIS, ON BEHALF OF HIMSELF AND ALL OTHERS SIMILARLY
SITUATED, PLAINTIFF VS. JP MORGAN CHASE & CO., JP MORGAN CLEARING
CORP., JP MORGAN SECURITIES INC., JP MORGAN FUTURE INC., HSBC
HOLDINGS PSC., HSBC SECURITIES (USA) INC.,HSBC BANK USA, NATIONAL
ASSOCIATION, AND JOHN DOES 1-10, DEFENDANTS”
The lawsuit alleged among other things that in violation of Section 1
of the Sherman Act [15 U.S.C § 1] and Section 9(a) of the Commodities
Exchange Act [7 U.S.C § 13b] the defendants “had the power to and did
suppress COMEX silver futures and options contract prices, and the
COMEX silver futures” and that the “options contract market is
susceptible to collusion”.

Following their expensive but nevertheless artful dodging of the
bullet of the “great silver squeeze”, JPM significantly exited their short
positions. The ensuing rise in the price of silver between August 2010,
and the spring of 2011 was perfectly understandable from a market
economics viewpoint. Assets that had been plugged into the bond
market were steadily losing value against inflation, and the stock market
was still seriously anemic and in some sectors had all but flat-lined.
Silver and gold, as a safe haven for asset value, have always attracted
investors whose confidence is being shaken in times of high volatility,
market instability or downturn. This surge into metal was continuing to
weaken confidence in the US Dollar, and something had to be done.

Returning to what is appearing to be their standard operating
procedure, JPM stepped up to the plate and picked up new silver short
positions. By March 2011, they had re-expanded their holdings to
25,000 silver short contracts. Precious metal futures on the COMEX are
traded in contracts for 5,000 ounces each. This increase in short
positions equated to a net short position held by JPM of a whopping 125
million ounces.

Just as these contracts would have come due which would have
triggered a landslide of losses if the silver price had held, on May 1,
2011 silver began to plummet in price losing 12% in fifteen minutes. By
the close of trading on the 6th, silver was down almost a third again.

This occurrence stands out from the seemingly endless list of
manipulation events in that it was timed with an event which again
shook silver out of weak hands.

Much of the futures market is traded on margin, which is for the
investor to be “credited” with a portion of the funds needed to make
the trade until the contract nears or expires. Different margin
requirements are placed on different trader’s market history, different
levels of investment, different portfolio sizes, et cetera. Margin
accounts can be “secured” by a relatively small deposit on the amount
of the trade, the bulk of the price of the trade is “outside the columns of
the ledger” and accounted in the “margin.” A future contract for the
standard 5000 ounces of silver due at $20.00 an ounce, for example,
would be settled at $100,000.00. To buy into the fresh option may have
been accomplished for a margin requirement of only 10 percent of that.
This allows the investor to cover more contracts, and carry more
positions, as long as no margin call comes due which cannot be met.

Margin requirements can be changed to adapt to changes in
investor or market conditions either by traders or altered or prohibited
at any time by the metals exchange. The drop in silver between May 2
and May 6 2011 was simultaneous to a rapid-fire barrage of margin
increases from the COMEX itself. In an increase of nearly 85%, the
initial COMEX margin requirements (individual investors may be
required by their broker or trader desk to pay more) were bumped up
from $11,745 to $21,600. This is usually the time that margin
requirements go down, or at least hold, as the drop in a commodity
brings out lower futures prices, and usually lower margin requirements.
It was not so this time, as margins were raised at the same time as the
price was falling.

This pulled the legs out from under thousands of average investors
who were forced to sell off their holdings to make the margin calls. The
price was falling so their losses mounted as they got less and less for the
assets they had been forced to sell. This motivation perpetuated more
panic short selling and drove prices down even harder.

Eric Sprott, as one of the leading experts in precious metals markets
carries a mantle of considerable credibility. Sprott is the CEO of Sprott
Asset Management LP, a major league metal market player, wielding a
hefty bat of $8.5 billion in assets under management. Not mincing
words in any way, Sprott laid it on the line in the summer of 2011 in an
interview with Silver Invest News, when he said,
“In my heart of hearts, I believe it was a
manipulation…There was no market, it was a setup.
They’ve just pushed it down. It’s ridiculous…I think it
was the short…the people who were short that were
caught. They were losing gargantuan amounts of
money and therefore, they initiated the attack on May
1.”

Likewise to King World News, Ben Davies, CEO of Hinde Capital
explained in August of 2011,
“Certainly along with many others in the market we
understood the perhaps vile manipulation that was
going on by some of the larger houses who, as we know,
occupy that space… which is what we’ve been seeing…”
There are silver “smack-down” events that appear to be warning
shots fired over the bow of voices in opposition to the status quo as well
as social engineering events with the intended double–duty purposes of
free market enthusiasm dampening and managed market-reflex
conditioning.

During Congressman Ron Paul’s historic “showing of the silver bullet
to the fiat currency vampire” speech, as it has been dubbed, at the
same moment when millions of Americans were looking right at
Congressman Paul as he held a one ounce silver coin up in front of Fed
Chairman Ben Shalom Bernanke, while describing the silver as being
capable of “real preservation of value,” the silver market was slapped
down again by massive short selling and it lost over 10% of its value in
one hour.

It couldn’t have been said any clearer by the ”banksters,” as they
are more and more frequently referred to, unless someone over at one
of the big publicity firms had released an official statement saying,
“We’re still in charge here…This is our market!”

That was the intended meaning of the manipulation event, and that
was the meaning that everybody went away having an understanding
of. At least they had some version of that understanding. Like
motorists knowing that it could be punishable by the application of
undue attention, which are careful not to make challenging and defiant
eye-contact with the overly zealous officers at a choke-point traffic stop,
many will deflect their eyes at such a moment, so as to not have to
process the disturbing enormity of it all. Some who understand the idea
that there is market manipulation happening, are thankful it is not them
that got squeezed this time or that, and reckon events like this to be
managed learning curve defining moments, where “The Powers That

Be” have given an instructive demonstration of the futility and expense
of disobedient, independent, free market behavior.
At the same time that demand for silver is increasing at an alarming
rate, the price is enigmatically low.

Metals are never bought as a producer stock. That is not their
natural function. They naturally act as barometers of other factors in
the equation. They are intrinsically valuable. That means that they
represent a store of value in and of themselves. There is a certain level
of effort and investment required to obtain them that is represented in
their value. The rest of their inherent value is the utility they find in
human endeavor and whether or not they are to be found as
indispensible, which makes them wanted. Their value is inside their
very molecular make-up which cannot be duplicated. They are, by
cosmic design, the measure of the value of other things.

Regardless of how long it is that their intrinsic value is obscured or
skewed, it will continuously reassert itself, and unavoidably make itself
known. It is a factor of time. Things that have no other final destiny,
other than that which is logically inevitable from current conditions, can
be observed in their fulfillment of their destiny as predictably as the
hands of a clock being expected to arrive at each hour on schedule.
Is there a collaborated effort to manipulate metals markets
downward, so as to mask the lowered buying power of the now
untrustworthy paper asset currencies of the western bankster empire?
History will be the final arbiter, but soon the entire question will be
quite academic.

With the opening of the Hong Kong Mercantile Exchange, silver
buyers are not limited to the monopolistic, closed-loop markets of the
west. The Chinese and all of Asia can now buy silver and take
possession of it in Hong Kong. They can purchase from the Hong Kong
“Merc” with Yuan directly from their bank accounts. They are not
restricted to the minimum 5000 ounce contracts of the western
exchanges. This will effectively allow for an end-run around the
stranglehold of the western empire. Silver will be squeezed between
high demand and low supply and the price will inevitably skyrocket.

Whistleblower Andrew Maguire put it this way,
“If just 1% of Agricultural Bank of China customers buy
500 ounces of silver, that would require 1.6 billion
ounces of silver! I believe the leveraged and naked
existing short side concentration in silver will be blindsided
by this. None of this potential new physical
demand has been factored in by analysts and I expect a
large and unanticipated drawdown of physical gold and
silver over the next few months, ahead of the
international contracts going ‘live.’ China is keen to
diversify their cash holdings and is also encouraging
citizens to make investments in gold and silver. The Pan
Asia Gold Exchange is another step in this direction by
opening up ease of access to physical gold and silver to
their bank customers. This physical backed exchange is
going to be a big game changer. This factor will
ultimately destroy the remaining short positions in both
gold and silver… In my opinion it will create a massive
short squeeze.”

Rob McEwen a prominent gold entrepreneur has stated that for
silver a reasonable price following a foreseeable increase in gold and
using the 16:1 ratio, that “$200 is conservative.”
Europacific Capital CEO Peter Schiff agreed in his statement,
“I think eventually silver north of $200 with gold over
$5,000 makes a lot of sense.”

And Silver guru Eric Sprott, who has put his money where his mouth
is by making a $1.5 billion bet on it, leaves no room for ambiguity when
he says,
“It’ll be the investment of this decade… it’s only the
beginning of things.”

The last run up in silver saw a 300% price jump from $16.00 to
$48.00 per ounce. That will be nothing compared to the coming super8
squeeze between east and west, when the dam finally breaks and silver
takes its rightful place as a truly precious commodity metal.
The global silver market price will correct to potentially 10 times its
present price, perhaps even more, and those who have positioned
themselves in advance of that correction will see seemingly
unbelievable gains from timely investments in silver.
The price in silver will not be kept down forever and when the
actual demand for, rarity, necessity, and therefore value of silver can no
longer be hidden and the truth emerges, the greatest windfall of the
ages will be realized by those who have taken advantage of this special
moment in history.

The Silver Bomb is about to explode.


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