The Silver Door Is Closing

(Article Source: www.dont-tread-on.me)

 have a little theory that I’ve been kicking around for a couple of years.  The theory is that there will come a time that you will not be able to buy silver at any price. It will not be because there is not any silver around to be purchased or that silver will not have any value.  I think that we won’t be able to buy silver at any price because there will be a very sudden and a very dramatic shift in the perception of silver’s value. A time will come when the value of silver is so strong and the value of the dollar so weak, that only a fool would ever trade silver for the dollar. 

I have stated in many previous articles that silver is the Achilles Heel of the Global Power structure. This honest money will not only bring down the fraudulent banking system, but it will bring down all of the forces that are a scourge to humanity. You see, without a corrupt monetary system, trillions of dollars will not be available to fight needless wars, fund Wall St schemes and a myriad of other horrible events. 

Right now, we have two separate forces fighting over a precious, limited and diminishing resource called silver. In one corner, we have the Elite that know that they have Quadrillions in paper assets riding on the perceived value of the dollar.  They use that wealth to control politicians, armies, natural resources, medias, corporations, capital markets and ultimately you.  They can sustain unlimited paper losses to keep the game going.  The problem for them is that their infinite money is running into a very finite world, especially in silver. 

In the other corner is an increasingly Aware group of people, that know that the end game is near for the dollar. Fathers are worrying about how to secure their family’s future and mothers are concerned about rising food and fuel costs.  Business owners are starting to see that they need to protect their assets. Investors are worried about rigged markets and inflation destroying their returns.  Corporations are becoming increasingly aware that their market capitalization might be at risk if they do not have the materials to make their products.  Even nations like China are seeing the value of this strategic resource.  This Aware group sees that owning tangible assets is the best strategy to not only defeat this enslaving system, but also to protect their wealth.  No other tangible asset in the world is as attractive as real, physical silver.  (Read the Silver Bullet and the Silver Shield.) 

The Elite use a multiple pronged attack on silver to hold it down. All of their weapons are paper tigers. The Aware have found that by taking physical delivery of silver, the Elite’s powerful weapons are rendered useless. Actually even worse than useless, these paper weapons actually help the Aware to buy more physical silver at discounted and subsidized prices, hastening the Elite’s ultimate demise. Keep those shorts coming and we will keep stacking! 

As a result of this battle, the CRIMEX now has less than half of what it had in registered inventory than it did at the bottom of the Bear Trap of 2008. In July of 2008 there were 87 million ounces in the registered CRIMEX vaults. Today, there is just over 40 million ounces left. The trend line is pretty dramatically down even as the price of silver spikes up. Less than $1.5 billion would empty the CRIMEX of the last bit of silver at current prices.

With no silver to deliver, the jig is up for the Elite. 

The Silver Door is closing on this game and I feel it could happen by the end of this month. I made the prediction that silver would be $50 by the end of March but I also said that it might not be available at any price. Both of these predictions center around a physical silver default at the CRIMEX. This would be the equivalent to a bank run where people turn in their receipts/contracts to get their money/silver only to find out that there are much more receipts/contracts than money/silver. We all know that banks run on a fractional reserve banking system. According to whistle blower Andrew Maguire, the CRIMEX/LBMA are trading 45 to 1 paper versus real metal. Got physical? 

The first part of my prediction may have already come true with $50 silver according to this article. It was reported that Blythe Masters offered a deal that no trader could refuse. She offered an 80% premium NOT to take physical delivery of silver in March. The trader was told that JP Morgan could not deliver 20 million ounces (4,000 contracts) and that if the trader did not take this pay off, they would be left holding the bag as an unsecured creditor. Vito Corleone would have been proud of Blythe

Another interesting twist in this silver saga is noted in this article form Along the Watchtower. There are claims that JP Morgue, through silver derivative bets, could have exponential loses when silver goes above $36. They estimate that if silver goes to $50 they might be out $40 billion. And that is IF they don’t cover their shorts! The article claims JPM has a $170 billion market cap with $40 billion in cash. That means if silver goes to $50, JPM will be insolvent. (That is IF the Fed doesn’t give them their own QE3 or if JP Morgue does not set up Enron like banks to dump these bad positions into in the Caribbean.) 

We can see the inventory of silver they are able to deliver is depleting, which is one side of the closing door. The other side of the closing door is as the price rises, the more silver is in Aware hands. The further the price raises, the larger the floor is for the silver market. Buying silver is not like buying a stock, bond or any other asset. It almost has a cult like following that is growing stronger every day. Some buy for the financial opportunities. Some buy as a way to “stick it to the man.” Some buy for the honesty of the money. For me, it is a shot in the next American Revolution for freedom. There are hundreds of reasons to buy silver but very few reasons to ever sell for dirty green pieces of paper with “all seeing eyes.” 

The total amount of silver production sold short between the 8 largest banks equals 150 days of world silver production. If silver starts marching up and these banks are forced to not only cover their paper shorts, but also deliver the real physical silver, this will cause the largest short squeeze the world has ever seen. This will cause severe dislocations in the world’s economy to say the least. I believe will coincide with a crash in the world’s fiat currencies. The Silver Door will then be closed. 

Sooner or later the silver door will be shut, as all of the physical silver sits in the hands of the Aware. The Aware will not sell until a new paradigm comes into existence. They will not care about a world wide military empire. They will not care about public pensions. They will not care about vampire squid banks on Wall St. They will not care about sock puppet politicians and their budgets. They will not care about propaganda from controlled media. They will hold, because they will then have the power. 

“He who has the silver, makes the rules.” -Chris Duane 

When the Silver Door is closed, you will hear a deafening quite around the world. When there is a silver default on the CRIMEX and the Elite will be forced to admit that they have been playing a huge game of illusion. Everyone will then know the world has changed, forever. Those who do have silver will be awe struck at your new found wealth they now have. They will have hit the lottery because the real purchasing power of their silver will rise astronomically. They might be able to trade 1 ounce of silver for 1 ounce of gold. They might be able to pay off their mortgage with a few ounces of silver. They may be able to buy the entire Dow Jones share for a handful of silver. 

“It is better to be 6 years too early than 1 day too late on this silver rocket.” -Chris Duane 

I believe that we are in the beginning of a Mania Phase in this silver bull market in my article the Silver Rocket. If we are in the Mania Phase, the game has changed already. Things that worked in the past will no longer work in the future. Traders that don’t see the sea change will either be left off of the rocket or burned. Those that short silver with leverage in the Mania Phase will be wiped out as the market stays irrational longer than they can stay solvent. Ultimately these silver shorts are the ones that will send silver to the moon because they HAVE to buy or risk bankruptcy. 

Silver traders may sell silver at a “top” and when they see silver keep going higher. They will eventually get back into the market buying less silver for more money. They will learn this hard lesson once. They will get back into the silver market and stay in. 

I have had my run ins with more than one trader who has said that it is frothy and it time to short silver. The very well respected David Morgan thinks we are going to have a pull back in silver. Even one of my favorite analysts of the silver market, Adam Hamilton of Zealllc., is saying we are in unprecedented territory as silver is 50% over its 200dma.  The very fact that I am spending so much time talking about silver this delivery month of March, would seem very bubble like. For the reasons stated above and many more, I think we could be seeing the Silver Door closing. If that is the case, then these traders could be in a very dangerous space. 

I would caution traders that silver has or will decouple from the control of the Elite into the hands of the Aware. If you are taking “FRN profits” that is one thing. If you are shorting silver, like some guys I know, be prepared to be swept up in the largest short squeeze of all time.  (Remember, you don’t have the luxury of the Fed’s printing press to back you up.) If we are truly in the Mania Phase of the Silver Rocket there might not be a way back into the market, IF you think like a trader. 

I would also caution silver buyers, do not ever use leverage in this most volatile of commodities. Stick to physical silver in your possession only. I watched my holdings take a 60% hit in 2008. Thankfully I was in physical and knew enough to buy more when silver was on sale. If I were buying today and did not have a single ounce, I would be buying a good first shot right now to have something. I recommend averaging in on a weekly or monthly basis. Think of just trading your fake digital and paper money for the real stuff and it becomes less scary. Find your own comfort level and do your own due diligence. And for Pete’s sake, don’t panic if a hit does come. (It looks like they tried last Thursday and Friday. All of that work shorting silver got reversed in a few hours to finish 1.7% higher.) 

If silver does what it did in 2008 and dumped 60%, would you have enough confidence in buying more or would you be selling into that trap? If you said you would be selling then don’t buy now or ever, because you are weak handed. You will have your money taken from you and be left with no metal. How sad. 

If that if that happened again would you actually be a little excited to buy more at a discounted price?  Then get going and buy now. Be sure leave some powder dry for the smack downs. 10 am EST seems to be a good time to buy just about everyday thanks to Blythe… 

I will sleep soundly regardless if silver dumps or moon shots in the near term. I have seen this movie before and I know the ending. All of the dramatic plot twists mean nothing to me. In the end, the good guys ride off into the sunset with their girls, guns, and sacks of silver. 

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