By Silver Shield, on March 13th, 2011
I have a little theory that I’ve been kicking around for a couple of years. The theory is that there will come a time that you will not be able to buy silver at any price. It will not be because there is not any silver around to be purchased or that silver will not have any value. I think that we won’t be able to buy silver at any price because there will be a very sudden and a very dramatic shift in the perception of silver’s value. A time will come when the value of silver is so strong and the value of the dollar so weak, that only a fool would ever trade silver for the dollar.
I have stated in many previous articles that silver is the Achilles Heel of the Global Power structure. This honest money will not only bring down the fraudulent banking system, but it will bring down all of the forces that are a scourge to humanity. You see, without a corrupt monetary system, trillions of dollars will not be available to fight needless wars, fund Wall St schemes and a myriad of other horrible events.
Right now, we have two separate forces fighting over a precious, limited and diminishing resource called silver. In one corner, we have the Elite that know that they have Quadrillions in paper assets riding on the perceived value of the dollar. They use that wealth to control politicians, armies, natural resources, medias, corporations, capital markets and ultimately you. They can sustain unlimited paper losses to keep the game going. The problem for them is that their infinite money is running into a very finite world, especially in silver.
In the other corner is an increasingly Aware group of people, that know that the end is near for the dollar. Fathers are worrying about how to secure their family’s future and mothers are concerned about rising food and fuel costs. Business owners are starting to see that they need to protect their assets. Investors are worried about rigged markets and inflation destroying their returns. Corporations are becoming increasingly aware that their market capitalization might be at risk if they do not have the materials necessary to make their products. Even nations like China are seeing the value of this strategic resource. This Aware group sees that owning tangible assets is the best strategy to not only defeat this enslaving system, but also to protect their wealth. No other tangible asset in the world is as attractive as real, physical silver. (Read the Silver Bullet and the Silver Shield.)
The Elite use a multi-pronged attack on silver to hold it down. All of their weapons are nothing more than paper tigers. The Aware have found that by taking physical delivery of silver, the Elite’s powerful weapons are rendered useless. Actually even worse than useless, these paper weapons actually help the Aware to buy more physical silver at discounted and subsidized prices, hastening the Elite’s ultimate demise. Keep those shorts coming and we will keep stacking!
As a result of this battle, the CRIMEX now has less than half of what it had in registered inventory than it did at the bottom of the Bear Trap of 2008. In July of 2008 there were 87 million ounces in the registered CRIMEX vaults. Today, there is just over 40 million ounces left. The trend line is dramatically down even as the price of silver spikes up. Less than $1.5 billion would empty the CRIMEX of the last bit of silver at current prices. With no silver to deliver, the jig is up for the Elite.
The Silver Door is closing on this game and I feel it could happen by the end of this month. I made the prediction that silver would be $50 by the end of March but I also said that it might not be available at any price. Both of these predictions center around a physical silver default at the CRIMEX. This would be the equivalent to a bank run where people turn in their receipts/contracts to get their money/silver only to find out that there are much more receipts/contracts than there is money/silver. We all know that banks run on a fractional reserve banking system. According to whistle blower Andrew Maguire, the CRIMEX/LBMA are trading 45 to 1 paper versus real metal. Got physical?
The first part of my prediction may have already come true with $50 silver according to this article. It was reported that Blythe Masters offered a deal that no trader could refuse. She offered an 80% premium NOT to take physical delivery of silver in March. The trader was told that JP Morgan could not deliver 20 million ounces (4,000 contracts) and that if the trader did not take this pay off, they would be left holding the bag as an unsecured creditor. Vito Corleone would have been proud of Blythe with this offer. Of course this is all rumors at this point, but where there is smoke, there is fire.
Another interesting twist in this silver saga is noted in this article form Along the Watchtower. There are claims that JP Morgue, through silver derivative bets, could have exponential loses when silver goes above $36. They estimate that if silver goes to $50 they might be out $40 billion. And that is IF they don’t cover their shorts! The article claims JPM has a $170 billion market cap with $40 billion in cash. That means if silver goes to $50, JPM will be insolvent. (That is IF the Fed doesn’t give them their own QE3 or IF JP Morgue does not set up Enron like banks to dump these bad positions into in the Caribbean.)
We can see the inventory of silver they are able to deliver is depleting, which is one side of the closing door. The other side of the closing door is as the silver’s price rises, the more silver goes into Aware hands. The further the price of silver rises, the larger the floor there is for the silver market. Buying silver is not like buying a stock, bond or any other asset. It almost has a cult like following that is growing stronger every day. Some buy for the financial opportunities. Some buy as a way to “stick it to the man.” Some buy for the honesty of the money. Some buy as a preservation of wealth. For me, it is a shot in the next American Revolution for freedom. There are hundreds of reasons to buy silver but very few reasons to ever sell for dirty green pieces of paper with “all seeing eyes.”
The total amount of silver production sold short between the 8 largest banks equals 150 days of world silver production. If silver starts marching up and these banks are forced to not only cover their paper shorts, but also deliver the real physical silver, this will cause the largest short squeeze the world has ever seen. This will cause severe dislocations in the world’s economy to say the least. I believe will coincide with a crash in all of the world’s fiat currencies. At that point the Silver Door will then be closed.
Sooner or later the silver door will be shut, as all of the physical silver sits in the hands of the Aware. The Aware will not sell until a new paradigm of freedom comes into existence. They will not care about a world wide military empire. They will not care about public pensions. They will not care about vampire squid banks on Wall St. They will not care about sock puppet politicians and their budgets. They will not care about propaganda from controlled media. They will hold, because they will then have the power.
“He who has the silver, makes the rules.” -Chris Duane
When the Silver Door is closed, you will hear a deafening silence from around the world. When there is a silver default on the CRIMEX, the Elite will be forced to admit that they have been playing a huge game of illusion. Everyone will then know the world has changed, forever. Those who do have silver will be awe struck at their new found wealth they now have. They will have hit the lottery because the real purchasing power of their silver will rise astronomically. They might be able to trade 1 ounce of silver for 1 ounce of gold. They might be able to pay off their mortgage with a few ounces of silver. They may be able to buy the entire Dow Jones share for a handful of silver.
“It is better to be 6 years too early than 1 day too late on this silver rocket.” -Chris Duane
I believe that we are in the beginning of a Mania Phase in this silver bull market as I said in my article the Silver Rocket. If we are in the Mania Phase, the game has changed already. Things that worked in the past will no longer work in the future. Traders that don’t see this sea change will either be left off of the rocket or burned. Those that short silver with leverage in the Mania Phase will be wiped out as the market stays irrational longer than they can stay solvent. Ultimately these silver shorts are the ones that will send silver to the moon because they HAVE to buy or risk bankruptcy.
Silver traders may sell silver at a “top”. When they see the silver price keep going higher, they will get back into the market buying less silver for more money. They will learn this hard lesson once. When they get back into the silver market they will stay in.
I have had my run ins with more than one silver trader who has said that it is frothy and it time to short silver. The very well respected David Morgan thinks we are going to have a pull back in silver. Even one of my favorite analysts of the silver market, Adam Hamilton of Zealllc., is saying we are in unprecedented territory as silver is 50% over its 200dma. Even the very fact that I am spending so much time talking about silver in this delivery month of March, would seem very bubble like. For the reasons stated above and many more, I think we could be seeing the Silver Door closing. If that is the case, then these traders could be in a very dangerous space.
I would caution traders that silver has or will decouple from the control of the Elite into the hands of the Aware. If you are taking “FRN profits”, that is one thing. If you are shorting silver, like some guys I know, be prepared to be swept up in the largest short squeeze of all time. (Remember, you don’t have the luxury of the Fed’s printing press to back you up.) If we are truly in the Mania Phase of the Silver Rocket, there might not be a way back into the market.
I would also caution silver buyers, do not ever use leverage in this most volatile of commodities. Stick to physical silver in your possession only. I watched my holdings take a 60% hit in 2008. Thankfully I was in physical and knew enough to buy more when silver was on sale. If I were buying today and did not have a single ounce, I would be buying a good first shot right now to have something. I recommend averaging in on a weekly or monthly basis. Think of it as just trading your fake digital and paper money for the real stuff and it becomes less scary. Find your own comfort level and do your own due diligence. And for Pete’s sake, don’t panic if a hit does come. (It looks like they tried last Thursday and Friday. All of that work shorting silver got reversed in a few hours to finish 1.7% higher.)
If silver does what it did in 2008 and dumped 60%, would you have enough confidence in buying more or would you be selling into that trap? If you said you would be selling, then don’t buy now or ever, because you are weak handed. You will have your money taken from you and be left with no metal. How sad.
If that happened again would you actually be a little excited to buy more at a discounted price? Then get going and buy now. Be sure leave some powder dry for the smack downs. 10 am EST seems to be a good time to buy just about everyday thanks to Blythe…
I will sleep soundly regardless if silver dumps or moon shots in the near term. I have seen this movie before and I know the ending. All of the dramatic plot twists mean nothing to me. In the end, the good guys ride off into the sunset with their girls, guns, and sacks of silver.
A SGTreport silver update. The Banksters prevented the Pan Asia Gold Exchange from ever doing damage to their fractional reserve bullion banking monopoly, they won’t be so lucky a second time.
For the Andrew Maguire KWN interview, click Here.
For the Ned Naylor-Leyland TFS Metals Report interview, click Here.
******** You Must Watch This Video ************
I have been flooded with emails asking me what I thought about Andrew Maguire’s ground breaking interview on King World News. My response was simply, these guys have NO idea what they are up against. In the interview, Andrew admits that a few calls from some powerful people, shut down all of their efforts to launch the Pan Asian Gold Exchange. Andrew should consider himself lucky as already surviving a very questionable hit and run to have only had his efforts thwarted by a few calls. I fear that unless all realize what we are up against,and change tactics, his next efforts may be stopped by something far more serious.
I have great respect for Andrew MacGuires tenacity and he has an absolutely correct view of the problem, but unfortunately, I feel he does not have the correct answer.
Andrew correctly sees that heavily leveraged long silver players who are forced out of the market are just as big as the problem of the manipulative shorts that raid the markets.
He correctly shows how actions like the Leap day massacre was a totally concocted paper event to manipulate the paper price down and turn back weeks of price advancing in one shot.
In order to see where his answer, his silver arrow, falls short we need to look deeper into the problem.
“It is difficult to get a man to understand something, when his salary depends upon his not understanding it!” -Upton Sinclair
Andrew MacGuire was a former Goldman Sachs metals trader who testified with GATA at the CFTC public hearing on how the major banks manipulate the silver and gold markets. Not surprisingly all of this fell on deaf ears as usual since the CFTC is part of the problem.
Ted Butler has for years banged his head against the wall trying to get those that should do the right thing, to do their job. Until he understands that the men that he is trying to convince have a stake in the current paradigm and will never change, he will have wasted the better part of his life on something that will never come to be.
GATA is another organization that has done an incredible effort to expose the fraud even so much as to taking out a 264,000 full page ad in the Wall Street Journal in 2008. That effort alone was bold but it did not change anything.
All three of these metals crusaders and the hundreds of other people who work tirelessly on exposing this fraud of a life time will waste all of their efforts unless something fundamentally changes.
Andrew Maguire thought he had the answer with the Pan Asian Gold Exchange. In the PAGE, metals would be exchanged outside of the Anglo American empire’s control in Kunming city China. The idea was that this exchange would bring more competition to the Anglo dominated markets and that this market that would not be subject to the same margin shenanigans and force players to take physical delivery would be nice. It could have been a huge threat to the fractional reserve bullion banking system. as More physical and money flows towards those markets them more it would chip away at the illusion of the Anglo American Markets.
Andrew then goes on to say in his KWN interview that a New York based entity with very strong Chinese relationship made a few phone calls and killed PAGE. Just like that, months of work down the drain. Andrew should consider himself lucky, because there are men that have wasted decades.
In that same interview Andrew announced that he is going to ramp up the pressure by having the original creators of PAGE create a new exchange where the first contract out of the gate is a fully backed silver contract. He calls this the silver arrow in the Achilles heel of the fractional reserve, something that I threw around a year ago. While I believe that physical silver is the cure for this debt based world, I fear that even this effort, will be for nothing.
“You cannot solve a problem from the same consciousness that created it. You must learn to see the world anew.” – Albert Einstein
Andrew admits that the men that he is up against operate with impunity and none dare challenge their power. While Andrew is correct that these men are very powerful, I do not feel he fully appreciates what he is up against. The Rothschilds and Rockefellers have power beyond the markets he fighting against. The Rothschilds got their Hong Kong Mercantile Exchange up and running in no time but the outsider plan of the PAGE got shut down. I fear that while a few phone calls shut down the PAGE something much worse might put an end to his next venture. He is up against men that have their wealth and power derived off of debt and death. Just look at the founding of HSBC and you will see a bank set up to funnel drug money from the Opium Wars. These families that he is up against own the world’s central banks, and by extension, all other banks, corporations, governments, regulatory agencies, militaries and so on.
This is why we see men like Saddam Hussein invaded and killed, for daring to sell his oil for Euros. This is why we see Gaddafi invaded and killed for daring to sell his oil for the purposed Gold Dinar. And this is why the war drums are beating for Iran as they continue to sell oil for any other currency than the dollar in their Oil bourse on the Isle of Kish. This battle is not just about silver, it is about world control and there is no way to win inside a paradigm that they control. If these men that control nations can wage physical war against other nations to maintain their power, what chances do you think Andrew is going to have?
Andrew Maguire’s new company Coghlan Capital is to help people stay within the paper paradigm that they claim they are fighting against. You cannot reform a corrupt system, by gambling in their corrupt casino. You cannot defeat a electronic market with another electronic market. You cannot defeat a centralized power with a collective action. You cannot over turn a secretive banking institution with more insider guidance. In order to truly win this battle you need to be of the opposite consciousness on every level.
The Silver Bullet and the Silver Shield is my best attempt at this opposite consciousness rebellion. The plan is to convince enough people to sell all of their paper assets and buy physical silver. To walk away from the paradigm at every level, not fight against it. That is an opposite consciousness as it shows that every action has an equal and opposite reaction. By taking your wealth out of their paper casino and buying real physical metal in you possession it acts as a de-leveraging event that will end their paradigm. It is decentralized effort which is of the opposite consciousness of any other action out there I have seen. Any centralized effort could be put to a halt by the Criminal Elite focusing on the most powerful opposition as the story of the Hunt’s showed. Even major proponents who champion silver can and will be taken out by any means necessary as this power will not go quietly into the dark.
“If you can describe a problem better than your audience can, they will assume you know the answer and follow you anywhere.” – Master Media Guru
Far too many people are very good at describing the problem and fall short on their answers. If the problem is a rigged stock market, then silver stocks are not the answer. If debt is the problem, bonds are not the answer. If market manipulation and greed is the problem then playing in their casino is not the answer. Don’t you find it ironic that so many out there offer solutions that more or less is of the same consciousness? They rail against the dollar but then offer you secret stock tips, for a price. That is because there is no big money in the opposite consciousness. Even silver investors who focus on dollar profits are part of the problem You cannot talk about dollar price targets of silver and future dollar profits and be of the opposite consciousness. You must see that you are buying physical because the fiat world must mathematically collapse and that only real tangible assets will preserve your purchasing power. Only then will you be a strong hand in the physical silver market.
I would ask that more people take think about this battle in these terms of becoming the opposite consciousness in order to win this battle. If some of the biggest names out there set aside their own efforts and endorse this Silver Bullet and Silver Shield we could truly end this battle once and for all. A decentralized, educated, mass of investors taking physical silver off of the table is worth a hundred Pan Asian Gold Exchanges or Hunt Brothers.
You cannot change the outside world to become free or happy.
You must change yourself to make the world free and happy.