Tuesday, November 22, 2011

Gold and Silver Have CRIMEX Cartel Backed Into A Corner Facing December Delivery Shortages

Just another option expiry in gold, Embry tells King World News
Sprott Asset Management's John Embry tells King World News that the smashing of gold and silver prices today was a predictable consequence of the advent of futures option expiry on Tuesday. He advises being ready for "extreme money creation at all levels and virtually throughout the world."

"Open interest for December silver only dropped 1711 contracts to 32,588. 615k ozs left the Brinks registered inventory, leaving 32.5 million deliverable - registered - silver at the Comex. That's 6500 contracts. A drop in silver o/i from 32,588 down to 6,500 would be unusually large and will require either a massive price drop OR massive price rise."
 -Dave in Denver, The Golden Truth

Sprott Asset Management Files Prospectus With SEC for $1.5 BILLION PSLV Follow-On
From SilverDoctors
The Doc has discovered that on Wednesday November 16th, Sprott Asset Management filed a prospectus with the SEC detailing intentions to offer an additional $1.5 BILLION UNITS of the PSLV trust.

Notice that the cartel initiated a new massive silver raid THAT VERY EVENING, so far taking silver nearly 15% lower from $35 to near $30! This obviously seems counter-intuitive as a 15% discount on silver means that Sprott will be able to obtain 15% more phyzz with the proceeds of his follow-on.
We believe that the cartel is gambling with this move BIG TIME, and GOING ALL-IN with their play to induce massive panic/fear in the hopes of scaring potential investors away from PSLV/ silver.

As to the potential implications of what a $1.5 billion unit PSLV follow-on would mean to the physical silver market, Sprott's last issue in 2010 was for $580 million, and silver ran from $18 to $49 over the next 6 months while it took Sprott over 2 months reportedly to source all of the silver.

$1.5 billion would be approximately 40-50 million ounces of silver- meaning we are talking an amount of physical silver equal or possibly exceeding the ENTIRE 2011 US MINT SILVER EAGLE PRODUCTION!

Also meaning we are talking an amount of physical silver that is 10-20 million ounces greater than the entire COMEX registered silver inventory!!

Word is that this could be approved in UNDER 2 WEEKS, and that Sprott already has the silver orders in place. As in, SEC approval, BANG! 50 MILLION OUNCE PHYZZ ORDER PLACED.

Perhaps The Morgue really is going home in a body bag....do da, do da.

TORONTO, November 16, 2011 — Sprott Asset Management LP announces that it has filed a preliminary short form base shelf prospectus containing information relating to units of the Trust with securities commissions or similar authorities in all provinces and territories of Canada. Under the shelf prospectus, the Trust may offer from time to time during the 25 month period after a final receipt is received for the prospectus up to US$1.5 billion of units of the Trust.

This notice does not constitute an offer of securities for sale in the United States.

Sprott's prospectus with the SEC can be found here:

MF Global Trustee: MF Global Client Theft May Be More Than Double Previous Estimate, Above $1.2 BILLION
From SilverDoctors
James Giddens, the MF Global trustee appointed by The Morgue, has reportedly stated that the MF Global client asset theft may be more than double previous estimates at over $1.2 BILLION!

MF Global missing funds may hit $1.2 billion
CNN - 14 hours ago
MF Global (MFGLQ) was forced to file for bankruptcy last month after it disclosed $6.3 billion in exposure to troubled sovereign debt from weak European ...

MF Global: Was It A Hit?
By Lawrence Lepard, via ZeroHedge
Imagine you are Ben Bernanke, or on the Board of Governors of the Federal Reserve. The time frame is July and August of 2011 and the price of gold is on a tear. Commodities inflation has been persistent and is breaking out everywhere. Your prediction that inflation “is contained” and is a “temporary phenomena” are beginning to look absurd. What do you do?

Simple. Hint that QE3, the primary drive of inflation, is coming and then fail to deliver at the September FOMC meeting. That takes care of the price of gold and the gold stocks. Ah, but those pesky commodities speculators keep making money and trading against what you want the markets to do. So what is to be done there? Hey Jon Corzine, how about you tank the largest broker for the small commodities punters in the world, and we let them twist in the wind? That will serve them right. Teach them to bet against the government approved scenario.

Think it did not happen? Well think again. All of the pieces fit. It sure is convenient that all those commodities speculators are now out of the box. Also, who will want to speculate on commodities in the future given customer funds are no longer protected. Furthermore, commodities speculators are not a very “All American” group. From the authorities point of view they can say: screw them, who will feel sympathy? Hell, James Bullard, Fed Governor, in an interview on CNBC yesterday said the MF Global collapse proves that the system works. Yes it does Jim, for you. Personally, I have $90,000 at MF Global and I would like to have my honestly earned money returned. Unfortunately, the odds of that happening any time soon seem slim. In part because when MF Global entered bankruptcy the judge appointed a Trustee whose law firm has done substantial work for JP Morgan, a deeply interested party. We will probably never find out what happened here. But for those of us whose eyes are open the results speak for themselves.

This whole mess stinks to high heaven. I am with Gerald Celente, if the largest commodity broker in America can go bankrupt and nothing is done, then where can you put your money and expect it to be safe? I, for one, do not accept that Jon Corzine is stupid enough to lever up MF Global 40:1 and use the proceeds and customer money to bet on European sovereign debt. This was a hit, pure and simple. That is why there is no resolution to the problem, and it is just another example of the deeply corrupt US political/financial axis. It may take money away from a bunch of commodities speculators, and it may cool down the perceived inflation, but it is just another hole in the dike which is The US Financial System. A dike whose life can probably now be measured in months, not years.

Don't Sweat The Correction In Gold
By Jeff Clark
The following charts document corrections in the gold price of 8% or more – first measured with daily prices, then monthly, quarterly, and finally annually. See if this doesn't put things into perspective.

While the gold price has had plenty of major corrections since late 2001, they're not so concerning when viewed beyond a day-to-day basis. In fact, if one resists checking the gold price except once a quarter, one might wonder what all the fuss with price declines is about.

So, Wait, Gold Is NOT Outperforming Stocks By 23% YTD?
From ZeroHedge
Listening to all the mouth foaming commentary out of assorted TV channels and economics professors which have apparently suddenly woken up from their deep hibernation regarding the imminent death of the gold market, one could be left with the impression that gold was wiped out, collapsed, imploded and will never rise again. After all: what does it really bring to the table aside from complete lack of monetary dilutability and a safe haven to hundreds of trillions in derivative counterparty risk (in its physical form that is, as Celente recently found out), not to mention a hedge to human idiocy as Kyle Bass said a few days ago? Well nothing really... So we were shocked, shocked, when we ran a simple chart comparing the performance of gold and the S&P Year to Date to discover that outperforming by a margin of about 23% is... gold? Huh. But wait, the real safe haven are bonds many would say. After all, the US has no counterparty risk and it has prudent fiscal and monetary authorities. So how do they compare? Well, as of today: flat, with gold actually outperforming modestly. That's right - gold and the US long bond, even following the recent "drubbing" in gold have generated the same price return. So... what were we talking about again?

MF Global - The Beginning of the End of Paper Markets
"Ranting Andy" Hoffman
Meanwhile, in economic land, the "Super Committee" charade has reached its end, with not a shred of hope for an agreement by Wednesday's deadline. Rating agencies may not be credible, but are certainly moving in that direction for fear of being swept up in the tsunami by continuing to rate JUNK at "Triple-A." S&P's downgrade of the U.S. to AA+ included language stating it would consider further downgrades if the government "does not make progress in paying down its debts."

Well, let's see. That was just three months ago, when the U.S. debt was $14.1 trillion, compared to $15.1 trillion today, with the debt ceiling about to be breached and subsequently raised to $16.4 trillion with little, if ANY spending cuts. And even if there are eventually any cuts, NONE would occur in 2012 (how convenient in front of thePresidential election), a year when the fiscal deficit is projected to be $1.5-$2.0 trillion!


Just as the first downgrade prompted gold to soar from $1,620 to $1,920 in three weeks, the impact of DEBT CEILING DEBACLE II will be similar. Look past the current Cartel shenanigans, as in their death throes, they are throwing EVERY illegal trick at PAPER gold and silver they can find, including the "kitchen sink." The letter of the law is long-dead, taken over by the iron fist of tyranny, governed by NO ONE and regulated by THEMSELVES!

Word from the CFTC is they will NOT be defining the word "swap" this week as suggested by Bart Chilton. When called for an explanation, the CFTC spokesperson said they were "too busy with the MF Global situation to hold an official meeting". Basically, they are too busy dealing with a problem created by their own lack of regulation to implement laws meant to prevent problems BEFORE the they happen. HA! Of course, we know the truth. The CFTC is delaying any such implementation to prolong the con game and not to CAUSE the pending global meltdown. In the end they WILL implement the laws but it will be too little, too late.

I believe this desperate PAPER attack will be the last chance to purchase PHYSICAL gold below $2,000/ounce, and PHYSICAL silver below $50/ounce, in our lifetimes, and more likely, EVER!

$15 TRILLION U.S. Debt, Supercommittee IMPASSE to SUPPORT GOLD

FINALLY, on to MF Global, which was been so kind to supply the following headline AS I PREPARED to pen my first line on the topic! Apparently, not only is $600+ million of client funds lost, likely into the belly of JP Morgan to pay for year-end bonuses, but the amount of the total fraud may be VASTLY higher, by at least $1.2 billion and potentially much more.


This failure, of a "derivatives broker" spreading cancer in the underworld of financial corruption, run by one of America's top white-collar crime bosses, may be the "Lehman moment" that triggers the long-awaited domino effect of bank failures, fueled further by Europe's EBOLA virus, of course. But not only that, it may PERMANENTLY destroy the concept of "futures markets" AND "investment banks," as least for several generations.

I put quotes around "futures markets" because, for all intents and purposes, their original M.O. of enabling manufacturers to hedge production and costs has been permanently overridden by speculation, leverage, and fraud, supplemented by the most corrupt regulatory system in financial markets history. Likewise, "investment banks" are no longer anything of the sort, as they are now principally engaged in borrowing FREE money from their paid-in-full government puppets to make leveraged bets with insider information, aiming to DESTROY, in the process, as much capital and competition as possible.

Jeffries and six other banks SUED for FRAUDULENT MF Global bond issuance

In fact, the letter below, from a Colorado-based commodities broker, explains exactly what MF Global has wrought on the "investment world," which again I put in quotes because, in the words of GATA's Chris Powell, "there are no longer markets, just manipulations." In other words, what you see today on your screens is the sum total of a decade of MONEY-PRINTING, HIGH FREQUENCY TRADING, and GOVERNMENT-BACKED, WHITE COLLAR CRIME. For the record, I no longer expect a "crash," but instead an end to ALL trading of stocks, bonds, and currencies for a time TBD when the coming market holiday is forced upon us by necessity.


I believe the concept of PAPER trading is in the process of being PERMANENTLY destroyed, or certainly well into the future when a new system, based on avoidance of the current system's failures, arises. In its stead, I expect PHYSICAL assets to take over ALL trading, and not just in the Precious Metals markets. Margin, short-selling, futures, derivatives, ETFs, and even options will likely fall in the wake of the most historic collapse in the HISTORY of financial markets.

Even for RANTING ANDY, this would appear to be going out on a limb, but all one needs to do is OBSERVE what is happening, and inside you will KNOW I am right. As Darth Vader stated so eloquently in The Empire Strikes Back, you KNOW it to be true.

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