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Is A Scandal In Paper Gold/Silver Brewing? – Dave Kranzler

Tuesday, October 13, 2015 11:57

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(Before It's News)

We should realize the suppression of the silver price is overwhelmingly a monetary problem rather than an industrial users collusion. Money creators don’t want silver as a competitor to their wealth transferring synthetic currency. So if the SUA (sounds like a hog call) went away completely and the monetary drive to hinder silver remained, we’ve made perhaps ten percent of the necessary progress. But it seems as if the SUA, better connected in its market intelligence than any silver longs, is in position to know what the megabank and central bank price suppressors know well in advance of any silver long price analysts. – Charles Savoie, link below

TND Guest Contributor: Dave Kranzler

Yesterday it was not widely reported that Mitsui Group’s Precious Metals Division was pulling out of the London and New York paper gold markets. Curiously, the Company will continue its precious metals operations in Tokyo and Hong Kong.

I had suggested that this was another “signpost” of the world’s growing distrust of the massive paper leverage embedded in the Comex and the LBMA.

A good friend and business colleague emailed me a response to my post yesterday. He is a scrap gold/silver recycler and gemologist. He and I worked on Wall Street together:

This is even bigger than you’re making it out to be. And I do NOT mean that snidely: combined with the Barclays and Deutsche moves, it signals that the financial center of the world is also shifting east. Not just precious metals. Pretty big statement by each of these banks, and big banks [especially Japanese big banks] don’t make moves like this without careful consideration.

I agree with Brian that this is a big statement move, especially by one of the biggest corporations in the world from a country that typically a U.S. vassal.

However, even more interestingly was the comment posted by Charles Savoie on my blog. For those of you who are relatively new (i.e. since 2008) to the precious metals world, Mr. Savoie has been around a long time and used to work with David Morgan. In other words, he has impeccable silver market “pedigree.” Mr. Savoie engages in “slavish” silver market research and left this comment:

The two largest members, Du Pont and Dow Chemical, members since before 1950—pulled out as of early last summer. Tiffany & Company and Ferro Corporation also withdrew. The Mitsui interests have usually also been listed. Someone is attempting to sidestep a scandal. Forgive and forget that they were members? Not in my perspective they remain culpable of collusive price suppression for several generations.

Mr. Savoie presented his cash in an article published and uploaded on the SGTReport in July: The Silver Association Is Shrinking

Something has definitely been occurring out of sight of auditors and all other forms of accountability. I fear that many of the widely read commentators who present analysis that is 100% reliant on the validity of what is being reported by LBMA and Comex banks are missing a much bigger event unfolding. In fact, I believe that the true availability of deliverable physical gold/silver is considerably less than what is being reported by the western bullion banks (and the Fed, ECB, BoE). If I’m right about this, then most of the recent commentary/analysis that has been published is highly misleading.

The elitists always drop small hints to warn us about impending disasters. Warren Buffet warned about 9 years ago that the U.S. was in danger of becoming a nation of serfs. Right now over 50% of the country is dependent on some form of Government transfer payment and nearly 1 in 6 people receive food stamps…I would suggest hat the recent withdrawal of highly prominent banks from the London and NY paper bullion markets is another “hint” of a brewing catastrophe.

On the Comex the paper to deliverable gold ratio has spiked up to the horrifying ratio of 200:1. We can only guess at the true paper to physical ratio of gold in London. Of course, that 200:1 ratio is a guess as well unless you are naive enough to believe the bank-issued Comex inventory reports.

Yes, indeed, a scandal is brewing. And it looks like several rats are folding their hands and running for the exits…

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About Dave Kranzler:

I spent many years working in various analytic jobs and trading on Wall Street. For nine of those years, I traded junk bonds for Bankers Trust. I have an MBA from the University of Chicago, with a concentration in accounting and finance. My goal is to help people understand and analyze what is really going on in our financial system and economy. You can follow my work and contact me via my website Investment Research Dynamics. Occasionally, I publish on Seeking Alpha too. As a co-founder and principal of Golden Returns Capital, LLC Mr. Kranzler co-manages the Precious Metals Opportunity Fund, a metals and mining stock investment fund.