The latest CME stops and issues report illustrates that bankers are continuing to lose their war against gold and silver. To begin, I want to state that for those of you that read my article “Bankers are Hemorrhaging Physical Silver to Start April”, I posted an important correction to some of the data shortly after, as I discovered a mapping error from some of the CME reported data to my excel spreadsheets regarding the stops and issues report for the COMEX traded 5000 oz silver futures contract. (If you republished this article on your website, as long as you abided by our republishing rights for our original copyrighted content, then none of the data that contained the errors should have been re-published on your website).
Regarding bullion bank house and client accounts, COMEX bullion banks cumulatively stood to possibly lose about 1.2M AgOzs of physical silver from their warehouse inventory, due to the net action of 5000-oz silver futures contracts that stood for delivery during the start of April. However, due to the mapping error I mentioned above, the data for the past four rolling months originally posted was incorrect regarding net gains/losses for warehoused physical silver stored on behalf of clients and house accounts. Bullion bankers still had a cumulative net positive increase in physical silver supply from December 2019 to 9 April 2020 of 3.29M AgOzs, despite the 1.2M AgOzs that were marked for delivery during the first nine days of April, an event that also marked a substantial reversal in the four month rolling trend at the time.
This month, the hemorrhaging of silver has continued. Given the below data from December 2019 to 6 May 2020, there has been a further contraction of the net physical silver supply in the bullion bank’s combined client and house warehouse inventories by another 3Mozs from 3.29M AgOzs to just 205k AgOzs.
If this pace continues, then next month should move the net gain/loss of physical silver supply for the past five rolling months into net loss territory, a definite mark of a turning tide in the bankers’ war against gold and silver. Consequently, regarding the numerous videos I have seen spring up on youtube with titles like “I’m not buying physical gold and silver at these prices because their too high, meaning prices of less than $1,800 and $21.60 respectively for 1-oz Canadian gold and silver maple leaf coins”, there are people and institutions standing for delivery for millions of ounces of physical silver that apparently disagree with these sentiments. Of course, a built in advantage exists for those standing for delivery of physical silver with the huge arbitrage opportunities of paying spot prices for the silver and then being able to resell it at much higher prices in the physical market at the current time. Even so, a significant uptick in the number of silver futures contracts that are being requested for physical settlement indicates a belief in continuing rising prices.
With gold, regarding the five-month rolling trend of issues and stops for the 100-oz gold futures contract, the bullion banks have lost more than a net cumulative amount of 2M AuOzs from their house and client accounts as can be seen below. This massive loss, though the trend was temporarily reversed last month, is another sign of the banker’s failing war against gold and silver. As can be easily spotted below, JP Morgan remains one of the biggest players in the trading of COMEX 100-oz gold futures contracts in both house and client accounts.
Due primarily to JP Morgan’s gold futures client accounts soaring in issues versus stops this past month, JP Morgan bankers were temporarily able to reverse the trend of losing physical gold in the combined house and client accounts of all bullion bankers, which improved the overall physical gold supply picture for the COMEX bullion banks as of 6 May as opposed to a month prior. However, despite this temporary reprieve, physical prices in the gold futures markets still reveal a global physical gold supply shortage and a developing global physical silver supply shortage as the premiums of real physical precious metals over the spot prices used to settle paper contracts reveal the absurdity of paper prices. As I’ve stressed for well over fifteen years now, people should stop watching all mass media financial news when it comes to gold and silver prices as their persistent insistence of only quoting fake spot prices and never real physical prices is only going to distance you from reality. In fact, if you source all your knowledge about global gold and silver markets, you are likely completely ignorant about the fact that bankers have been losing the war against gold and silver at the current time.
Those of you that recall my old business and were clients of mine know that I was the only company in the world back then, as far as I know, that believed in the purchasing power preservation properties of gold so much that my services were based upon a constant weight of real physical gold that remained unchanged for more than a decade. When the dollar price of some of my services doubled and people asked why I was raising prices, I answered, “I never raised prices, because my company’s services have remained a constant weight of gold for ten years.” If you understood sound money, you would file your complaint with Ben Shalom Bernanke (the US Central Bank chairman at the time) because he destroyed the US dollar’s purchasing power relative to gold weight and is the culprit responsible for the rising prices of my company’s services, not me. Furthermore, you may recall that I based the prices of my services not upon the spot prices of gold, but upon the price of a 1-oz Credit Suisse bar of 99.99% gold.
Consequently, in the interest of buying gold and silver, I only track real physical prices for gold and silver versus tracking the paper prices because absurd, unrealistic paper prices are completely irrelevant to me. I suspect that within another 12-months, spot gold and silver prices may be completely irrelevant to you as well when not just 1% of the world’s population understands that spot prices are fake, but more than 90% of the world’s population understands this.
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