While no additional silver was put on deposit at the Comex
during the [past] week, The Banks sold contracts for 120MM oz. This is
If you were to poll the public about comparing the investment returns
between gold, silver and stocks during the first quarter of 2017, it’s
highly probable that the majority of the populace would respond that the
S&P 500 outperformed the precious metals. That’s a result of the
mainstream media’s unwillingness to report on the precious metals market
other than to disparage it as an investment.
In reality, among silver, gold, the Nasdaq 100 and the S&P 500,
the S&P 500 had the lowest ROR in Q1. Silver led the pack at 14%,
followed by tech-heavy Nasdaq 100 at 11.1%, gold at 8.6% and the S&P
500 at 4.8%. Put that in your pipe and smoke it, Cramer. Imagine the
performance gold and silver would have turned in if the Comex was
prevented from creating paper gold and silver in amounts that exceeded
the quantity of gold and silver sitting in the Comex vaults.
As an example, as of Friday the Comex is reporting 949k ozs of gold
in the registered accounts of the Comex vaults and 9 million ozs of
total gold. Yet, the open interest in paper gold contracts as of Friday
totaled 41.7 million ozs.
This is 44x more paper gold than the amount of physical that has been designated – “registered” – as available for delivery. It’s 4.6x more than the total amount of gold sitting on Comex vaults.
With silver the situation is even more extreme. The Comex is
reporting 29.5 million ozs of silver as registered and 190.2 million
total ozs. Yet, the open interest in paper silver is a staggering 1.08
1.08 billion ozs of silver is more silver than the world mines in a
year. The paper silver open interest is 5x greater than the
of silver held in Comex vaults; it’s an astonishing 37x more than the
amount of silver that is available to be delivered.
This degree of imbalance between the open interest in CME futures
contracts in relation to the amount of the underlying physical commodity
represented by those contracts never occurs in any other CME commodity –
ever. Historically, when the amount of paper exceeds the amount of
underlying commodity that is available for delivery by more than 20-30%,
the CFTC intervenes by investigating the possibility of market
manipulation. But never with gold and silver.
The Comex is perhaps the most corrupted securities market in history.
It is emblematic of the fraud and corruption that has engulfed the
entire U.S. financial and political system. The U.S. Government has now
issued $20 trillion in Treasury debt for which it has no intention of
every redeeming. It’s issued over $100 trillion in unfunded liabilities
(entitlements, pensions, etc) for which default is not a matter of “if”
but of “when.”
In today’s episode of the Shadow of Truth, we discuss “The Big Lie,”
which is also known as the “Comex,” and explain why those looking to
protect their savings should be buying physical gold and silver now:
Rory Hall, Editor-in-Chief of The Daily Coin, has written over 700 articles and produced more than 200 videos about the precious metals market, economic and monetary policies as well as geopolitical events since 1987. His articles have been published by Zerohedge, SHTFPlan, Sprott Money, GoldSilver and Silver Doctors, SGTReport, just to name a few. Rory has contributed daily to SGTReport since 2012. He has interviewed experts such as Dr. Paul Craig Roberts, Dr. Marc Faber, Eric Sprott, Gerald Celente and Peter Schiff, to name but a few. Visit The Daily Coin website and The Daily Coin YouTube channels to enjoy original and some of the best economic, precious metals, geopolitical and preparedness news from around the world.
Dave Kranzler spent many years working in various Wall Street jobs. After business school, he traded junk bonds for a large bank. He has an MBA from the University of Chicago, with a concentration in accounting and finance, and graduated Oberlin College with majors in Economics and English. Dave has nearly thirty years of experience in studying, researching, analyzing and investing in the financial markets. Currently he co-manages a precious metals and mining stock investment fund in Denver and publishes the Mining Stock and Short Seller Journals. Contact Dave at email@example.com.
The author is not affiliated with, endorsed or sponsored by Sprott Money Ltd. The views and opinions expressed in this material are those of the author or guest speaker, are subject to change and may not necessarily reflect the opinions of Sprott Money Ltd. Sprott Money does not guarantee the accuracy, completeness, timeliness and reliability of the information or any results from its use.
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