Silver News

The Mission Of The Silver News Surfer Has Always Been & Will Always Be - To Preserve Your Wealth, Protect Your Purchasing Power and Create Generational Wealth!

May Health Wealth And Success Be Yours!

Two Of The Most Important Charts You’ll See All Day!

August 9, 2013 8:32 am est

The Mission Of The Silver News Surfer Has Always Been & Will Always Be – To Preserve Your Wealth, Protect Your Purchasing Power and Create Generational Wealth!

May Health Wealth And Success Be Yours!


On to the business of protecting your wealth…



I sincerely hope you don’t get lost today. I sent a tremendous of information that demands your immediate attention.

The COMEX & LBMA are having some serious issues. What does this mean for you? Everything! This scam of “paper” claims of silver and gold is about to be exposed and when it does, watch out! The quest for phsical will drive the prices north in a hurry –  Can’t happen?

How about Bear, Lehman, LIBOR, PFG Best, MF Global – Didn’t think that would happen either! Ask the clients who lost their life savings – if they would have received a warning, would they have got their money out? Of course they would! This is no different! I strongly recommend an exit strategy for ETF’s and any other “paper” claims and switch to physical, even if it is at a loss. (read Mark Twain below)

If you read through all this, which I truly hope you do, and you still don’t understand, please feel free to call me so we can talk about it.

The two most important charts you’re likely to see all day – This chart courtesy shows the amount of gold bullion at the COMEX that is registered and available for delivery, currently 935,000 ounces – the lowest amount in at least five years.

Notice how the previous low in this chart in mid- 2011 (single dot), coincided with the gold price bottoming at $1500 and subsequently rising to $1915. The high point in this chart at the end of 2011 (two dots), coincided with the gold price topping out at $1915.

“History does not always repeat, but it often rhymes”.. Also, “I am more concerned with the return OF my money than the return ON my money”… Mark Twain.

Read More Here

Allow me to assist you in understanding these ever changing and challenging financial markets and more importantly, how you can profit on the upside potential and protect yourself from the downside risks….

Now, onto the breaking news that matters…

Entities Prepare For COMEX Failure That Will Shock The World – We had the gold and silver prices take a dive a couple of days ago when a Fed governor in Chicago made some noises about the Fed potentially tapering QE.  But we are already seeing gold and silver rallying again.  The gold and silver prices are not going to stay down where they are for much longer. The reality is that the stock and bond markets will crater if the Fed gets serious about tapering….

I strongly believe that we are going to have very big upward movements in gold and silver prices in the third and fourth quarters of this year.  There will be some sort of major event, a failure of a large bank in Europe, a default in bonds by one of the PIIG countries, a terrorist attack, or some other disaster that will trigger massive advances in gold and silver. All I know is that this ‘trigger’ which is going to ignite this move is coming, and it will involve substantial repricing of both gold and silver.  One possible trigger may turn out to be a failure of the COMEX.  We do know that there is a shortage of physical gold for delivery, and that’s because so much gold is going to Asia right now.

You can see by the price action in the U.S. dollar right now that the Asians are dumping their dollars.  But, interestingly, they are also paying a premium to get physical gold right now with no delay in shipment.  So there is a loss of faith in the paper gold and silver markets by major participants.  It’s almost as if they expect a failure.

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Default Feared – Gold & Silver Paper Claims Hit All-Time Highs – The gold market also has a series of daily ‘fixes’ both on the COMEX in New York and the LBMA in London and, though the scale of the leverage involved pales into insignificance against the vast derivatives markets layered atop LIBOR and ISDAFIX, there are still currently 42 outstanding claims on every ounce of gold remaining in the fast-dwindling COMEX warehouse stocks thanks to the availability of paper gold in the form of futures contracts (see chart below courtesy of Nick Laird at which is by far an all-time high.

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Proof Bullion Banks Are Buying All The Physical Gold They Can – Most physical gold sold in Asia carries premiums, especially in India, and bullion banks are moving to fill that void in order to capture those lucrative premiums.

They are doing so by procuring physical gold in the U.S., not only from the COMEX warehouses and ETF liquidations, but also directly from refiners.  The gold is then converted into forms, which Asians are comfortable with — mainly kilo bars, and then the gold is shipped to Asia.

Several weeks ago I exchanged emails with a rep for a major precious metals refiner about the huge ETF liquidations and speculated that the liquidated gold was in fact going to Asia.  After all, the gold coming out of the ETFs and the COMEX warehouses has to go somewhere.

As everyone knows, Asia, not just China, has grown tremendously wealthy since WWII, and Asians have an affinity for gold not felt anywhere else in the world, except maybe the Middle-East.  The gold being shipped to Asia is now in very strong hands and will not come back any time soon.  Actually, acknowledgement of a shortage of physical gold, which is so often discussed on KWN, is the reality of what the world is now witnessing.”

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COMEX Deliverable (Registered) Gold Declines By Almost 60,000 Ounces – Since last Friday the registered gold in the COMEX warehouse has declined by almost 60,000 ounces to a new recent low of 875,710 ounces. Total gold including eligible gold stored by customers in COMEX warehouses but not offered for sale holds steady at around 7 million ounces. There was a transfer of about 6,445 ounces of customer gold from HSBC to JPM. But this was not deliverable gold as indicated on a popular website, but merely a transfer of eligible ounces from one warehouse to another.

I noted today that about 8,300 ounces of gold bullion in 400 oz. bars was redeemed from the Sprott Physical Gold Trust. Gold in this form is ready for delivery to Asia. I cannot imagine why else someone would go through the redemption process unless there was an immediate need for physical gold. Given the amount of bullion actually being offered for sale at the COMEX, higher prices seem to be indicated in this delivery cycle with a little over 200,000 ounces worth of contracts standing for delivery, at least for now.

Read More Here Also, Read Here

Gold Markets Get Strange – Is Economic Danger Near? – As I pointed out earlier, metals markets are supposed to reflect certain fundamental trends in our fiscal system. However, as has been thoroughly documented, international banks like JP Morgan and companies like the CME have gone far out of their way to manipulate PM markets. JP Morgan has been caught red handed using coordinated short positions to force silver down. Gold and silver certificates (otherwise known as ETF’s) have been issued by banks for literally tons of metals that don’t exist. There is no vault where these metals are held. JP Morgan’s physical holdings are limited, and when they finally run out, the scam will be exposed, and the ETF market will go down like the Hindenburg.

Official market prices for gold and silver have seen a heartbreaking drop in the past few months, yet, foreign central banks around the world are buying like they know something average Americans do not. China is set to become the largest holder of Gold reserves in the next two years:

Read More Here Also, Read Here

COMEX Gold Backwardation Continues – HOUSTON — As we mentioned yesterday in What is Wrong with this Picture, including a screen shot of the futures backwardated, COMEX gold has moved into a more robust form of backwardation.

Not only is the spot or cash price (the price for gold sold for immediate delivery) trading above the near active futures contract, but we are now seeing the near months’ contracts trading at higher prices to months thereafter in the front part of the futures strip.

This backwardation is occurring at the same time when the gold forward offered rates in London, the interest rate offered for gold by bullion banks called GOFO, have been negative for a full month (beginning July 8)  and appear at last glance to be widening (growing even more negative).   Essentially that means that gold is commanding a higher interest rate than U.S. dollars which is the same thing as saying that demand for immediate delivery and soon to be delivered gold is high enough to pay a premium for gold today.

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The primary silver mining industry is not sustainable at present market prices. – Financial reports are starting to be released and by the end of the month we should have a pretty good idea on how bad the losses will be.

According to my calculations of my top 12 primary silver miners (excluding Frensillo & Hochschild as they only release financials twice a year), the net income break-even for the group as a whole was $25.40 in Q1 2013.

If we go to Kitco and look at the average price of silver during the second quarter of 2013, it was $23.10 — that should set off some alarm bells.  Not only is the average price of silver Q2 2013 much less than the realized price for the group Q1 2013 ($29.85), but its less than their net income break-even of $25.40 by $2.30 an ounce.

Read More Here