The Secret Silver Stockpile, Part I

Jeff Nielson: As indicated in my most-recent commentary; we are very likely already in a Post-Default World in the gold market. Specifically, at some time (likely several years ago) the bankers’ paper “gold market” experienced technical default, where current and immediate claims on existing gold inventories significantly exceeded those inventories.

Actual (versus “official”) inventories of gold in the bankers’ metals warehouses today are now a large, negative number – in the many millions of ounces. Official (and visible) default in the gold market has only been averted by a cornucopia of fraud, primarily “fractional-reserve banking” in the gold market, i.e. through “selling” each ounce of actual gold possessed by the banking cabal to numerous chump-owners.

The magnitude of this ‘fractional-reserve’ fraud is something about which we can only speculate, but we do have parameters. With respect to their own fraudulent, debauched paper currencies; the Western banking crime syndicate is allowed to leverage their paper by a ratio of roughly 33:1. We also know (in this era of mark-to-fantasy “accounting”) that these Big Bank tentacles have (at least) two sets of books.

Furthermore, we know that these career criminals have no respect for any laws; having already been “fined” or “investigated” for any and every form of financial crime capable of being devised within the human mind. The notion that these banksters adhere to mere rules on leverage limits and “reserve” requirements is quaint, and utterly naïve.

In the realm of “bullion trading” (i.e. gold and silver fraud); we also have the testimony of (ex?) Goldman Sachs Stooge, Jeffrey Christian to guide us. It was “100-to-1” Christian who first blurted out (at a CFTC hearing) that the various forms of paper-fraud committed by the bankers in the gold market exceeded the actual amount of gold being traded by a dollar value of 100:1.

In the silver market; we have various reasons for believing that the crisis faced by the banksters in terms of evaporating inventories (and stockpiles) is even more severe/desperate than in the gold market, and thus the level of fraud is likely at least as high, if not higher. The starting point in such suspicions is a now-infamous chart on (supposed) “silver inventories” which the One Bank probably wishes its minions had never created.

The sickening plunge in silver inventories between 1990 and 2005 (where inventories collapsed by 90%) meant that we were already at a crisis-point in the silver market nearly a decade ago, whereas it’s only in the last year or two where anecdotal evidence (and the bankers’ own actions) seem to indicate a crisis in gold inventories – yet actual “default” in the gold market likely occurred several years before this.

As was also explained in my last commentary; we have no reason to believe that the supposed “reversal” in silver inventories depicted in the chart above has ever taken place. This is because most of these phantom inventories in the silver market (by the bankers’ own calculations) are composed of nothing but the holdings of the banker-operated “bullion-EFT’s” – which, themselves, are nothing but a gigantic paper-fraud.

We obtained absolute, empirical proof that these bullion-ETF’s are nothing but paper during the stampede out of the largest of the gold bullion-ETF’s, the SPDR Gold Trust (GLD), which began in the spring of 2013. When panicked unit-holders dumped 40% of the holdings of this fraud-fund (on a net basis); if that fund had actually contained any gold, Comex inventories should have exploded higher – as all that “gold” was dumped onto the market.

Instead (as we saw) Comex inventories went in the opposite direction, plummeting lower in fraudulent synchronization with GLD. It’s the bankers who tell us that most of our “official” inventories of silver (and gold?) are nothing more than the supposed holdings in “bullion” funds where they (conveniently) are the “custodians”. It’s the bankers who have shown us that those same “bullion” funds are nothing but paper.
But all of this discussion centers on inventories. This is only ½ of the equation when it comes to available/existing supplies of bullion – the (somewhat) more visible side. The invisible portion of this supply is represented by stockpiles. Here it’s important to engage in definition of terms, so that readers can clearly distinguish between these two, distinct concepts (which are often muddled together).
An inventory (supposedly) represents the amount of silver or gold which is immediately available to any buyer willing to pay the current “spot” (or “futures”) price. Stockpiles, conversely, represent the amount of gold/silver which is potentially availablefor sale or consumption, but only at some (undetermined) higher price level.

How “quickly” such stockpiles would/could ever come onto the market (i.e. at how low a price) is primarily a function of how highly the present holders/owners of these stockpiles actually value their silver and gold. But this assumes that the holders of these stockpiles are primarily motivated by maximizing proceeds from the sale of those stockpiles.
In the case of the silver market; we have many reasons to believe that the majority of stockpiles (likely the vast majority) are held by a cabal separate from the bankers, but clearly allied to them: the (industrial) “silver users”. Here the authority is Charles Savoie, whose detailed chronology of the silver market he has (aptly) entitled “The Silver Stealers”.
According to the large body of evidence compiled by Savoie, and his own work in connecting-the-dots; it is our servile politicians who facilitated the looting of most of the world’s silver, and the bankers who perpetrated most of that stealing, but it’s the industrial Silver Users who are the likely holders of what remains from what was pillaged from markets (and even nations).
The nexus of this alliance among Oligarchs is that (unlike with gold) the bankers have no desire to hold silver themselves. They simply want to prevent ordinary people from holding silver. It’s only when ordinary people can be prevented (or simply deceived) from storing their wealth in the safety of silver (or gold) that they will turn to the bankers’ paper currencies.
As knowledgeable readers now understand; the moment that anyone is foolish enough to hold their wealth in the bankers’ paper (currency), such wealth can be stolen completely (over time) through a plethora of frauds, but primarily through the game of “currency dilution”. So it is the bankers who have made silver available to be bought and hoarded by the Silver Users at fraudulent, bargain-basement prices. In return; the Silver Users have promised to use as much of this hoarded silver as they want – while recycling as little as possible – thus literally “consuming” global stockpiles of silver.

What is the best way to ensure that the billions of Little People around the world can’t convert the wealth from their labours into the security of silver? Destroy that silver, first.

Here the authority is noted researcher and veteran silver analyst, Ted Butler. According to Butler’s estimates; global stockpiles of silver exceeded 6 billion ounces as recently as the 1950’s. On a per capita basis; this amounted to more than 2 ounces per inhabitant of our planet. But that’s when industrial usage of silver really began to ramp-up, aided greatly (at that time) by the explosion in the use of silver-based photographic film.

Going back nearly a decade; Butler estimated that this rapacious “consumption” of global silver stockpiles had/has devastated those stockpiles. By Butler’s own calculations; by last decade the world’s stockpile of silver had declined to approximately 1 billion ounces – or roughly 0.15 ounce per human inhabitant.

With silver presently less than 10% as plentiful (or more than ten times more precious); clearly the One Bank’s crusade to keep silver out of the hands of ordinary people is a much simpler one today . But “success” has its price.

The bankers’ ongoing (and illegal) scorched-earth tactics against the gold and silver miners is stifling almost all new mine development. The consequence of this is that mine supply has peaked, and (with gold) is already on the decline. Meanwhile the continued suppression of prices means close to maximum demand – at least in the ¾ of the world which still understands the difference between “money” and (mere) “currency”.

Combined, this has created a massive supply deficit in both the gold and silver markets. The difference is that unlike silver, global gold stockpiles have been conserved. Thus there is a much larger stockpile of gold accessible to the bankers (which they can then “sell” to multiple owners).

But in the silver market; the One Bank’s economic terrorism now works against it. Having simultaneously destroyed most of the world’s stockpiles of silver and created a massive supply-deficit in the silver market; we are now in a countdown to an event beyond the (unofficial) default in the bankers’ fraudulent paper markets.

Soon the silver market will simply implode. The world will literally “run out” of silver. The obvious question on readers’ minds is “when”. Part II will sift through the falsified data, and do some number-crunching with the data which is reliable, in an effort to provide some answer to that question.

This article is brought to you courtesy of Jeff Nielson From Bullion Bulls Canada.