Wednesday, January 30, 2013

US 4th QTR GDP STINKS...But, "The Market Is UP"!!!

GDP Shows Surprise Drop for US in Fourth Quarter

Published: Wednesday, 30 Jan 2013 | 8:11 AM ET

Getty Images
The U.S. economy posted a stunning drop of 0.1 percent in the fourth quarter, defying expectations for slow growth and possibly providing incentive for more Federal Reserve stimulus.
The economy shrank from October through December for the first time since the recession ended, hurt by the biggest cut in defense spending in 40 years, fewer exports and sluggish growth in company stockpiles.
The Commerce Department said Wednesday that the economy contracted at an annual rate of 0.1 percent in the fourth quarter. That's a sharp slowdown from the 3.1 percent growth rate in the July-September quarter.
The surprise contraction could raise fears about the economy's ability to handle tax increases that took effect in January and looming spending cuts.
[No kidding? I could swear it was only yesterday that the President assured us that by asking the rich to pay "their fair share" of taxes, the economy would flourish and our debt problem would drift away.]
Still, the weakness may be because of one-time factors. Government spending cuts and slower inventory growth subtracted a total of 2.6 percentage points from growth.
[Yes, the propaganda masters at AP would love for us to believe that government spending cuts "caused" a decline in GDP...After all, the President says we can't cut spending or we will risk America's "recovery".  But did the US Government really cut spending in the 4th qtr?   
[ Q4, the US added some $312 billion in debt. And more to the point, the US government spent a grand total of $907.9 billion in the same quarter. This compares to $877.1 billion a quarter earlier: $30 billion less.]
And those volatile categories offset faster growth in consumer spending, business investment and housing -- the economy's core drivers of growth.
Another positive aspect of the report: For all of 2012, the economy expanded 2.2 percent, better than 2011's growth of 1.8 percent.

[So, as I see it, The US added $1.2 TRILLION in new debt in 2012 and got a +0.4% increase in annual GDP?  Well, at least "the market is up"!]
The economy may stay weak at the start of the year because Americans are coming to grips with an increase in Social Security taxes that has left them with less take-home pay.
[May stay week at the start of the year?  That's wishful thinking!  Unless their "less take home" pay is temporary, it would be difficult to see the economy gaining much strength anytime soon.  But, at least "the market is up"!
Subpar growth has held back hiring. The economy has created about 150,000 jobs a month, on average, for the past two years. That's barely enough to reduce the unemployment rate, which has been 7.8 percent for the past two months.
Economists forecast that unemployment stayed at the still-high rate again this month. The government releases the January jobs report Friday.
[Are these the same economists that forecast 4th qtr GDP would be +1.1%?]
The slower growth in stockpiles comes after a big jump in the third quarter. Companies frequently cut back on inventories if they anticipate a slowdown in sales. Slower inventory growth means factories likely produced less.
Heavy equipment maker Caterpillar, Inc. said this week that it reduced its inventories by $2 billion in the fourth quarter as global sales declined from a year earlier.
The biggest question going forward is how consumers react to the expiration of a Social Security tax cut. Congress and the White House allowed the temporary tax cut to expire in January, but reached a deal to keep income taxes from rising on most Americans.
[Unless of course you were part of the 77% of Americans whose taxes rose when the Social Security tax cut expired.  Buy hey, at least "the market is up"!
The tax increase will lower take home pay this year by about 2 percent. That means a household earning $50,000 a year will have about $1,000 less to spend. A household with two high-paid workers will have up to $4,500 less.
[And everybody knows, thanks to AP and the other mainstream news media propaganda masters,  that a decrease in incomes will only cause a "temporary" set back to the economy at the start of the year.  C'mon, EVERYBODY knows it will get better in the second half of the year.  We've been promised that every first half of the year since 2008.  We can be certain then that "the market" will be up!]
Already, a key measure of consumer confidence plummeted this month after Americans noticed the reduction in their paychecks, the Conference Board reported Tuesday.
[Shhhh, consumer confidence plummeted?  You'll ruin everything!  No wonder this is in the second to last paragraph of this puff piece...]
Economists expected the first reading on gross domestic product to show growth of 1 percent, down from the third quarter's reading of 3.1 percent.

Why This Is 'Best-Looking' GDP Drop You'll Ever See

Negative economic growth in the fourth quarter provided a scary headline to start Wednesday's trading but probably little else in market impact.
Traders at the New York Stock Exchange, January 30, 2013. REUTERS/Brendan McDermidIn the best light, the headline drop of 0.1 percent in gross domestic product masked stronger internals regarding consumer and business spending as well as progress in the housing recovery.
At its worst, the bad news merely provides more cover for aFederal Reserve intent on churning out stimulus until it determines the economy can survive on its own.
"I don't think this negative number is going to have much legs," said Jim Paulsen, chief market strategist at Wells Capital Management in Minneapolis.
The darker scenario, in fact, is actually bullish for stocks, which have ridden the wave of $3 trillion in central bank liquidity to eclipse five-year highs and push towards a new record.
Fed Chairman Ben Bernanke "has to keep the economy high as a kite. He has to make sure we don't sober up and realize how screwed up we are," said Peter Schiff, founder and CEO at Euro Pacific Capital in New York. "We don't have a real recovery. It's an illusion, it's a drug-induced high. The minute you take away the drugs we come down. We can't stop easing, ever."

Styx - The Grand Illusion 1978

[Appropriately 1978, at the height of the last inflationary fiscal fiasco courtesy of the US Federal Reserve]

Doug Casey interviews Peter Schiff

Published on Jan 30, 2013

Casey Research chairman Doug Casey interviews financial pundit and author Peter Schiff. Their conversation covers a range of issues: gold, the validity of the US dollar, the Federal Reserve system and the Schiff family's fight with the IRS.

Peter Schiff is a truthsayer.  Well worth watching as Peter answers several poignant questions about the economy.


US Ends 2012 With 103.8% Debt To GDP

Previously, when calculating debt/GDP metrics for the US, we naturally assumed some GDP growth in Q4. Following today's GDP data we now know what Q4 GDP is. We also know that, at least on a preliminary basis, it posted a decline on an annualized basis. This means that we now have an official print for US Debt/GDP as of December 31, 2012. The numerator, or debt: $16.432 trillion, or the debt ceiling, which as we know was breached on the same day, and which has yet to be formally raised. The denominator, or GDP: $15.829 trillion. This means that the formal debt/GDP is now 103.8% and growing fast.
Tyler Durden's picture

Santelli Blasts Bernanke: "Whatever You're Doing, It Isn't Working"

While some would look at the surge in government spending in Q3 last year (ahead of the election) and subsequent plunge in Q4 as conspiratorial, CNBC's Rick Santelli takes a step slightly further back as he draws the analogy between the mystical monetary experimentation of Ben Bernanke and his horde of central bank cronies and the"bloodletting of leeching" of medieval medicine providers. The point being that if you were sick in the middle ages, leeches were applied; and if you returned weeks later (still sick), more leeches and blood-letting took place - with no lesson learned. The fact that we borrowed $300bn in Q4 and managed a dismally dire drop in GDP growth offers little hope as the world glares agog at the Dow Jones Industrial Average index while Bernanke, six years on from the start of the recession continues to apply the same medicine that has done nothing to resurrect our economy. In Rick's words, "Whatever you're doing; It isn't working!" and in fact the monetary support could potentially hurt the economy in the medium-term as debt piles up exponentially. An epic rant...

Tuesday, January 29, 2013

Silver Shortage? What Silver Shortage?

Is There Really A Physical Silver Shortage?

by Dave Kranzler

I have a couple different business colleagues who have spoken with bullion smelters who say the market is in short supply right now. Furthermore, Swiss money manager Egon Von Greyerz stated yesterdaythat "we are now seeing very lengthy delays in getting physical silver."

What does all this mean? First, let me say that a "shortage" in physical supply does not mean that I'm saying there is not any physical silver available. But what it does mean is that there are not many interested sellers of actual physical at the current price level. To be sure, any shortage of a non-depletable resource can be solved by price. What this means is that we are going to see much higher prices for silver in the coming months, until the new market price is set at a level which balances supply and demand. It's basic economic law.

[also from Dave Kranzler via [Please subscribe]

Two interesting observations: 1) most of the growth over the past year has been in the eligible inventory. I don't know if you've been following Ted Butler's analysis, but every report now pretty much he goes over the massive flows in and out of the Comex every week. This is something that didn't start occurring until about 4-6 months ago. He's convinced that it is direct evidence that it's a signal of how tight the physical market is. That combined with the SLV/HSBC reports is quite strong circumstantial evidence that SLV and the Comex eligible inventory is being used to put out physical "fires" on a weekly basis. 2) JPM has gone from not being silver vault custodian on the Comex about 18 months ago roughly to now being the third largest custodian. Given that is commonly accepted that JPM is the primary illegal Comex silver manipulator, combined with the fact that is the primary SLV custodian, can only lead one to conclude that JPM, the Comex and SLV are the heart of a massive scheme to cover up just how short the paper market is of physical silver. Just look at the inexplicable delivery to HSBC - the largest Comex silver custodian and no longer an SLV subcustodian - of $876 million worth of 1000 oz silver bars. Now the U.S. Mint and the Royal Canadian Mint are failing to meet the retail investor demand of physical silver. The difference between the Comex and the Mint business is that the mints have no choice but to either make hard physical deliveries or cut off orders. They are both cutting or limiting orders. When you put all of this together and stir it up it, the only conclusion is that the world is massively short physical silver delivery obligations. This is why the Comex long interest is staying so persistently high at the 140,000 contract level despite numerous aggressive cartel raids. We have never seen the silver open interest behave this way under such paper duress. There is a massive physical shortage of delivery obligations derived from the massive paper short, both Comex and OTC derivative based. There is going to be a huge explosion higher in the price of silver at some point in the near future…

one more point about the Comex open interest. The true industrial and commercial users of physical silver, the commercial end users as opposed to the bullion banks who are also classified as "commercial," require physical delivery under any circumstances. It is my hunch and it is highly likely that the persistent high level of silver o/i could be attributed to the fact that the commercial end-users of physical stay long regardless of the paper raids. They need the silver to run their businesses. If we could determine if this is the case in terms of a detailed breakdown of the open interest, then my analysis is 100% correct.

Let's refresh our understanding of the difference between registered and eligible status at the Comex.

"Comex has two categories of silver in its warehouse.

The eligible category means that the silver is in a condition that conforms to the standards of delivery. Size and quality of the bar in other words. It is being stored at the Comex warehouse, but is not offered for delivery into contracts.

Registered means that the silver is available for delivery to those who demand bullion by being registered as such with a bullion dealer, in addition to being in a fit condition to satisfy the contract…


The US Mint restarted Silver Eagle sales via allocation/ rationing Monday, and has just updated their month-t0-date sales totals.
Despite 2 production shutdowns in January, the US Mint has sold a record breaking 7.13 million Silver Eagles in only 10 business days in January, shattering the previous monthly record set in 2011!

U.S. Mint Silver-Coin Sales Surge After Temporary Suspension

The U.S. Mint resumed sales of American Eagle silver coins after being suspended for more than a week because of a lack of inventory.
The Mint sold 1.123 million ounces of the coins yesterday, Michael White, a spokesman in Washington, said in a voice mail left late yesterday in response to questions from Bloomberg News. Before the suspension, sales this month totaled 6.01 million ounces, according to data on the Mint’s website. That compares with 6.107 million ounces in January 2012. White did not respond to e-mails or a voice mail left today.
Silver futures are up 3.2 percent this month in New York, after advancing 8.3 percent in 2012, as central banks from the U.S. to Japan pledged more stimulus measures to boost economic growth. Global holdings of the metal in exchange-traded funds rose to an all-time high of 19,699 metric tons on Jan. 18.
“The demand for precious physical metal is surging as the continued global quantitative easing is leading to currency devaluation,” Jeffrey Sica, who helps oversee more than $1 billion as president of SICA Wealth Management, said in a telephone interview from Morristown, New Jersey. “People are realizing this is one of the best asset-classes to hold.”


Exclusive: Coming Short Squeeze In Gold To Shock The World / January 29, 2013
Today the outspoken hedge fund manager out of Hong Kong, who recently lit the gold world on fire with his comments about a coming short squeeze in gold, told King World News that managed money around the world is already beginning to convert paper claims on gold into physical metal.  Kaye, who 23 years ago worked for Goldman Sachs in mergers and acquisitions, and who is now the founder and principle shareholder of Pacific Group in Hong Kong, strongly believes that “… only a small fraction of investors in the world need to do what we are doing to create an enormous short squeeze (in gold).”
KWN will be releasing a series of written interviews today with Kaye which discuss the coming global systemic meltdown, and how it will impact investors and key markets around the world, including gold and silver.  Here is what Kaye had to say in part I of this exclusive interview:  “We know the claims on gold in the marketplace exceed, depending on various estimates, 100 to 150 times the amount of physical gold known to exist.  So when a credible country like Germany has sufficient concerns about whether they can get physical possession and safe storage of fully allocated gold, it’s our contention that any prudent investor should be concerned.”
William Kaye continues:
“When the music stops, what the leverage in the system should tell you is there aren’t going to be enough chairs.  So Germany, as a credible country, is saying, ‘We’re reserving our chair.’  Now this is exactly the type of catalyst that, as investors, we look for as owners of fully allocated gold ourselves.
We share many of Germany’s concerns….
Consumer Confidence in U.S. Falls to Lowest Level Since 2011 
By Jeanna Smialek – Jan 29, 2013 12:23 PM GMT-0300
Confidence among U.S. consumers declined more than forecast in January, reaching the lowest level in more than a year as higher payroll taxes took a bigger bite out of Americans’ paychecks.
The Conference Board’s index decreased to 58.6, the weakest since November 2011, from a revised 66.7 in December, figures from the New York-based private research group showed today. The January reading was lower than the most pessimistic forecast in a Bloomberg survey, which had a median estimate of 64.
The drop in confidence coincides with a two percentage- point increase in the payroll tax used to fund Social Security, a hurdle for consumers after a projected pickup in spending in the fourth quarter. The outlook for employment prospects and incomes also deteriorated this month, today’s data showed.
“The thing that’s particularly troubling is the sizable decline in expectations,” said Guy Lebas, chief fixed-income strategist at Janney Montgomery Scott LLC in Philadelphia, who projected a reading of 61.6. “As those expectations deteriorate, it doesn’t bode particularly well for day-to-day consumer spending.”
The 8.1-point slump in the gauge of sentiment from a month earlier was the biggest since August 2011. Estimates of the 73 economists surveyed by Bloomberg ranged from 59 to 70. The measure averaged 53.7 in the recession that ended in June 2009.

May 2013-End of the Road-John Williams

28 JANUARY 2013
Greg Hunter’s  
Anybody who thinks the U.S. is in a so-called recovery isn’t listening to economist John Williams.  He contends, “We haven’t had a recovery and we’re not about to have one, and it’s getting worse.”  Williams says it’s because, “The consumer is in very serious trouble. . . . The average guy is not making it.  His income is not keeping up with inflation.”  As far as Congress getting the budget and debt ceiling under control, Williams says,“Both sides are faced with devil’s choices.”  If Congress does not get its financial house in order by the new deadline in mid-May 2013, Williams predicts, “It will be the end of the road . . . . They are not going to have another opportunity . . . they are pushing the limit as it is now.”  Williams says he expects, “. . . a negative reaction in the next 3 or 4 months to the dollar.” Williams adamantly calls for hyperinflation to the U.S. dollar by the end of 2014.  Join Greg Hunter as he goes One-on-One with John Williams of


China Just Threatened a Currency War if the Fed Doesn't Stop Printing

Submitted by Phoenix Capital Research on 01/29/2013 10:41 -0500

The tension between Central Banks that we noted yesterday continues to worsen. This time it was China and the EU, not just Germany, that fired warning shots at the US Fed.
A senior Chinese official said on Friday that the United States should cut back on printing money to stimulate its economy if the world is to have confidence in the dollar.
Asked whether he was worried about the dollar, the chairman of China's sovereign wealth fund, the China Investment Corporation, Jin Liqun, told the World Economic Forum in Davos: "I am a little bit worried."

"There will be no winners in currency wars. But it is important for a central bank that the money goes to the right place," Li said.

Speaking at the same session, French Finance Minister Pierre Moscovici voiced concern that the euro was becoming overvalued as a result of quantitative easing and other stimulus actions taken by other nations' central banks.

"Certainly, the level of the euro is high and creates some problem," he said, attributing the single currency's recent gains partly to the return of confidence created by the European Central Bank and euro zone governments in starting to overcome Europe's debt crisis.

So first Germany begins pulling its Gold reserves from the US, and now China and the EU are saying publicly that the Fed’s policies are damaging confidence in the US Dollar.

This does not bode well for the financial system. The primary role of Central Banks is to maintain confidence in the system. If the Central Banks begin to turn on one another it is only a matter of time before the system breaks down.


From The Golden Truth

Are The Currency Wars For Real?

I thought it appropriate to start this piece with a quote from Ludwig Von Mises regarding the global system of "flexible" currencies:

A general acceptance of the principles of the flexible [currency] standard must therefore result in a mutual overbidding between the nations. At the end of this race is the complete destruction of all nations' monetary systems. LINK

That was written in 1949 and essentially prophesied the eventual global currency war that Von Mises visualized unfolding, as countries used currency devaluation strategies in a desperate attempt to prop up their own crumbling economic systems and "protect" their relative export power.
I am not alone in thinking that we entering a very real and very dangerous global currency war. The highly regarded Comstock Partners issued their view on this four days ago: "If we are correct, the U.S. and global economies will contract and there will be a race to the bottom with "competitive devaluations" rampant. All the countries that need exports for economic growth will be very aggressive in the race to the bottom..." LINK.

I remember when I first started looking at the precious metals back in 2001. I read one of James Dines newsletters at the time in which he was promoting gold and mining stocks as the ultimate defense against a global race to devalue currencies to zero. At the time I was unaware that his vision was based on the work by Von Mises fifty years earlier.

Essentially, in a system of flexible, floating national currencies, the currency of each nation achieves relative value in relation to the other currencies based on either relative economic strength or relative supply of the currency. With the weak global economy, nations have resorted to devaluing their own currency in an attempt to keep their respective systems from falling apart from the burdens of too much debt and as a means of making their exports relatively cheaper. The latter strategy is also an attempt to stimulate domestic manufacturing by stimulating foreign demand.

Monday, January 28, 2013

No Time Like The Present To BUY PHYSICAL SILVER

I added to my physical Silver holdings this morning, did you?  I purchased Silver this morning at 30.77 spot, did you?

With options expiration today in the February COMEX Gold futures, and Silver hovering above its 200 Day moving average at 30.60, it was an easy call if you believe in the upside for the price of Silver.  Today just may have been the last chance to purchase Silver below $31 an ounce ever again...but then in this rigged game, who can be sure about anything relative to price.

A monthly chart of Silver just might help convince you that NOW is the time to be accumulating more physical Silver before this train leaves the station once again.

Please click on the chart below to enlarge:

If a picture is worth a thousand words, this MONTHLY chart of Silver worth 1000 ounces!

As you can see on the chart, Silver is presently coiling into the apex of a Symmetrical Triangle:

The symmetrical triangle, which can also be referred to as a coil, usually forms during a trend as a continuation pattern. The pattern contains at least two lower highs and two higher lows. When these points are connected, the lines converge as they are extended and the symmetrical triangle takes shape. You could also think of it as a contracting wedge, wide at the beginning and narrowing over time.  [read more here]

Considering the existing uptrend in Silver since 2003, it should be considered highly likely that this Symmetrical Triangle marks a consolidation period in the price of Silver before it breaks higher.  Frustrating as it has been to watch Silver drift sideways in a $10 trading range for the past 15 months, a break towards new highs may be only weeks away now.

As you can see on the chart, Silver has been capped at $35 since September of 2011.  This cap is believed to be courtesy of the Evil Empire housed at JP Morgan.  I submit that whatever their involvement in the suppression of the price of Silver, it is difficult to argue that the 38% retracement of the fall in Silver from the May 2011 peak to the August 2011 low has also played a significant "technical" role in this cap on the price of Silver at $35 an ounce. 

I submit to you now that a break of the topside trendline of this Symmetrical Triangle will trigger a break of the cap at $35, and subsequently result in a very swift and powerful move higher in the price of Silver over the ensuing months.

A break of this trendline and cap projects a move higher in Silver by up to $30 an ounce.  That's $65 an ounce people.  I consider it highly unlikely that even the "Criminals of the CRIMEX" can take Silver much lower from where we are now.

If you have been waiting to add to your Physical Silver holdings, or are looking to establish a position in the "Best Investment Of Our Generation", there may be no better time than the present.


What To Expect After This Week’s Gold & Silver Smash / January 26, 2013
There has been a great deal of propaganda from the Fed and mainstream media claiming that the world is on the road to recovery. Today one of the wealthiest and most street-smart pros in the business spoke with King World News about the reality of what is really taking place, the gold and silver smash, and where markets are headed from here.
Rick Rule, who is the CEO of Sprott USA, said, “We are in the midst of a commodities super cycle of the same dimension we experienced in the 1970s.”  The 1970s was an extremely difficult period, and it eventually culminated in a flight from fiat currencies into gold as the world experienced a period of tremendous turmoil.
Here is what Rick Rule had to say: “We are in the midst of a commodities super cycle of the same dimension we experienced in the 1970s … By the way, I don’t disagree that there are attempts being made to suppress the price of gold, but the market is bigger than the morons who are trying to suppress it.  As far as I’m concerned, the harder they try to suppress it, the bigger the ultimate move will be.
At some point in time rational people, people who can add and subtract, are going to say, ‘Would I rather have my wealth held in the form of a floating abstraction, like a euro, yen, or US dollar?  Or would I rather have an asset that is not simultaneously somebody else’s responsibility?  Something that can’t be printed and counterfeited.’
My suspicion is that over time, more people will become comfortable with gold than they are with fiat currencies … The Chinese government isn’t trying to suppress the price of gold.  It’s encouraging Chinese individuals to own gold….

An Inside Look at the Rapidly Escalating Physical Silver Shortage
Silver Doctors

On Thursday, we alerted readers to the fact that the US Mint had sold out of Silver Eagles, selling over 6 million ounces over the first 9 days of sales in 2013, and was shutting down sales and production of Silver Eagles through at least 1/28, and would ration sales of eagles upon resumption of sales. 
With a rapidly growing presence in the retail gold and silver market via SDBullion, we have had a unique perspective of the escalating physical silver shortage, and would like to give our readers an inside glimpse of the time-line of events evidencing a growing shortage of physical silver.
Full time-line of the developing silver shortage from a wholesale perspective is below:
Silver Shortage Time-Line:
Mid December 2012: US Mint announces 3 week halt of Silver Eagle production as the Mint transitions to 2013 Silver Eagles.   Wholesale premiums and retail pricing of Silver Eagles do not change. 
Late December 2012:  Wholesale premiums begin noticeably rising on 90% silver -pre-1965 coins. 
Monday 1/7:  US Mint begins sales of 2013 Silver Eagles
Monday, 1/14:  Wholesale suppliers run out of 90% face pre-1965 silver coins.  Wholesale premiums rise 2-3 fold, and suppliers quote 3 week delays.
Tuesday 1/15:  SDBullion’s primary supplier informs us that premiums on generic 1 oz rounds are doubling, effective immediately, with a 1-2 week delay on delivery.  Delivery on previously placed orders are also delayed 1 week.
Wednesday 1/16: Rumors begin to circulate that premiums on Silver Eagles and Silver Maples are set to jump .75/oz imminently.  All major suppliers deny the rumor, and state they expect premiums to remain stable for the foreseeable future.
Thursday 1/17: 9am:  SDBullion’s suppliers all confirm ASE’s are in stock at standard premiums. 
Thursday 1/17: 3pm: US Mint sends the following communication to authorized purchasers:
Authorized Purchasers,
The United States Mint has temporarily sold out of 2013 American Eagle Silver Bullion coins. As a result, sales are suspended until we can build up an inventory of these coins. Sales will resume on or about the week of January 28, 2013, via the allocation process.
Please feel free to call us if you have any questions.
Jack A. Szczerban
Branch Chief, Precious Metals Group
Department of the Treasury
United States Mint
Thursday 1/17: 3:30 pm: SDBullion’s primary ASE supplier raises premiums by .75/oz. 
Thursday 1/17: 5pm:  SDBullion’s primary ASE supplier is sold out of 2013 Silver Eagles
Thursday 1/17: 5:30pm: advises readers that the US Mint is sold out of 2013 Silver Eagles
Thursday 1/17: 6pm: SDBullion is forced to raise premiums on 2013 Silver Eagles as wholesale supply is rapidly vanishing, and premiums are skyrocketing.
Thursday 1/17: 9pm: sells out of all remaining 2013 Silver Eagles
Friday 1/18: 9am: SDBullion is able to procure a small order of 2013 ASE’s from a secondary provider for .75 over normal wholesale premium.
Friday 1/18 3pm: Nearly all wholesale bullion dealers are sold out of 2013 ASE’s, wholesale premiums have risen by nearly $1.50 for those wholesalers with any remaining (and rapidly diminishing) inventory.  
Friday 1/18: 4pm: SDBullion’s primary supplier refuses to honor the new and increased pricing for 1 oz generic rounds agreed to 48 hours prior
2013 Silver Eagle retail availability As of Sunday 1/20/2013:
Apmex: Sold out
Provident: Sold Out
Tulving: Sold Out
Scottsdale: Sold Out
SDBullion: Under 500 oz remaining, with one last inventory order en route.
With the US Mint not scheduled to begin resumption of ASE sales for another 8 days, at which point it will begin sales with rationing/ allocation, expect premiums on Silver Eagles to continue escalating, and expect supplies of alternate forms of physical silver coins and rounds to begin drying up, as investors turn to Silver Maples, Philharmonics, generic rounds, 10 oz and 100 oz bars as alternatives to the skyrocketing premiums Silver Eagles are commanding.

With shortages causing panic buying among silver investors, much the way that the recent gun and ammo shortages and threats of gun confiscation have caused massive demand and 2-3 fold increases in prices of guns and lead futures, a similar situation could easily develop quickly in the silver market, particularly with the fact that silver is a Giffen good, and is an extremely small market.

Embry - Powerful Entity Now Battling The Silver Manipulators

Today John Embry told King World News that a powerful entity is now battling the powers that be in the silver market.  Embry, who is Chief Investment Strategist at Sprott Asset Management also spoke about the increase in net-long contracts in the face of the declining silver price, the silver shortage, as well as the gold market. Here is what Embry had to say in this powerful interview:  “I’m focused on this vicious takedown of gold and silver that’s been ongoing for the last month and a half.  I’ve been following this story for the better part of 15 years and I can honestly say I don’t think I’ve ever seen a more intense, day after day takedown.”

John Embry continues:

“When London opened gold and silver were driven down for about ten consecutive days.  The COMEX PM close was lower than the AM opening.  This just bespeaks very aggressive manipulation.  The question I ask myself is, ‘What’s bothering them?  Why do they feel they have to do this?’

I think there are a lot of reasons....