Something Is Broken In The Gold And Silver Markets

Something Is Broken In The Gold And Silver Markets | gold-and-silver-market-450x300 | Economy Economy & Business

Earlier today I was speaking with Dave Kranzler and we fell into a discussion regarding the current state of gold and silver. This is how I described everything to Dave as we talked:

Beginning in December, as Dave pointed out in Is The Global Financial System On The Brink Of Collapse?, something happened in the derivatives market and I believe something broke and there has been an ongoing smoldering fire just under the surface. The criminals at the too big to prosecute mafia organizations, formerly known as banks, have been doing their level best to keep the fire from coming to the surface. The desperate behavior by the Central Planners reeks of the unmistakable scent of fear. If you think the Wall Street criminals aren’t scared right now, then explain this:

I’ve never seen so many sophisticated Wall Street’ers this scared in my entire career. – This comment comes from a very well-connected Wall Street/DC insider and is in reference to how illiquid the bond markets have become – InvestmentResearchDynamics.

Subsequent to whatever it was that blew up behind the scenes in December​, a smallish bank in Austria bl​ew up and filed bankruptcy. Approximately two weeks later a bank in Germany began having problems due to the derivatives associated with the Austrian bank.

In April we learn, by way of Mr Steve St. Angelo​ of the SRSRocco​ Report, the gold and silver miners are beginning to have serious cash flow problems and output slowing down. We also learned, from Mr Jeff Brown​ when we interviewed him on Shadow of Truth, that China had been removing silver ore directly from the miners. We believe this was to supplement their solar program which requires approximately 90% of the silver that China mines internally; leaving them virtually nothing to create silver bullion coins, medallions, silver bars or ingots for investment purposes. We also learned that India is also following the same line as China and has undertaken a massive solar energy program for their country. Currently, we do not have the information regarding how much silver India is pulling from the market but we do know their silver bullion imports have exploded in 2015.

On July 5, the Prime Minister of Greece, Alexis Tsipras, decides to hold a referendum and allow the people of Greece to decide if they want to stay in the EuroZone and continue using the Euro as their currency. The Syriza Party, which Mr Tsipras is a member, was elected with 35% majority, for the specific purpose of ending of austerity. As many people know, Greece has experienced enormous economic problems since joining the EuroZone and has taken on approximately $350 billion worth of debt from the IMF. The people of Greece voted, by a margin of 61% to 39%, to leave the EU and stop using the Euro. The Prime Minister responded by telling the Greek people, they would NOT be leaving the EuroZone and would in fact be taking on more debt from the IMF and would continue using the Euro!! The Greek’s responded accordingly and have been protesting, rioting and various other nasty things since this happened. I don’t blame them one bit.

The second week of July 2015 the US Mint sells completely out of American Silver Eagles. This was unannounced, no fore-warning was given at all. Usually if supplies become tight the Mint, in the past, has moved to allocated (read rationed) sales to the wholesalers. Not this time. The Mint opened their doors (figuratively) for​ business​ and before lunch had announced they were sold out and promptly​ ​closed their doors!

The following week China announces, for the first time in five years, their current Official gold holdings. The increase was greeted with little enthusiasm as no one actually believed the amount announced. Most analyst​s​ believe the amount of gold held by China is much higher than they are willing to share with the world.

Then a very curious thing happened. With all of the bullet points above as a back drop, four days after China makes their announcement of current gold holdings, someone or something triggered a massive selloff of gold futures. 716,000 ounces of gold, approximately 3% of annual global gold mining production, was sold in approximately 1 minutes time. WOW!!! Why would this happen at this time unless something was very, very wrong? China just announced they had increased their holdings, the global economy is in trouble and someone decides that now is the opportune time to unload 3% of global gold​ in 1 minute!! Does that make sense to you? Does that sound like the act of a desperate, trapped rat? It does to me. It seems like something else other than ​a derivatives​ event happened in December 2014​ which​ has broken in the gold and silver markets​. It seems like something unprecedented is about to make a grand entrance. I am not 100% sure, but I know this, if you don’t have several months worth of cash, food, water and security on hand you better make a move and you better make it quick. Fall is coming and there have been way too many people saying that fall of 2015 that something was going to change; the picture seems pretty clear​…

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Rory Hall has been a daily contributor at SGTReport.com. for more than two years. He has written several original articles and interviewed some of the top precious metals professionals in the industry, as well as top preparedness specialists in the world. His YouTube Channel, The Daily Coin, was launched in February 2014 and his website TheDailyCoin.org was launched April 25, 2014. QUOTE: “As a student of monetary, financial and economic history for the past five years it has taught me to watch the markets with an open mind and a hand on my wallet.”

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About The Author

Rory Hall, Editor-in-Chief, The Daily Coin, has studied the precious metals market, economic and monetary policies as well as geopolitical events since 1987. I have written well over 700 articles and produced more than 200 videos. Beginning in 2014 The Daily Coin became his latest incarnation. Prior to launching his own website and YouTube channel, Rory began working with SGTReport.com in 2012 and still contributes to their website daily. The YouTube Channel, The Daily Coin, was launched in February 2014 and website TheDailyCoin.org was launched April 2014. Rory’s original articles have been published by such notable websites as Zerohedge, SHTFPlan, Sprott Money, GoldSilver and The Sleuth Journal just to name a few. He has interviewed some of the top professionals, in their field, from around the world, including Dr. Paul Craig Roberts, Dr. Marc Faber, Eric Sprott, Gerald Celente and Peter Schiff, to name but a few. The Daily Coin is enjoying global growth for both original works and delivering some of the best economic, precious metals, geopolitical and preparedness news from around the world.

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