Shanghai Withdrawals Explode, Crimex Registered Gold on Fumes

The Shanghai gold exchange experienced it’s largest withdrawal week in eighteen months. 73.3 tonnes of gold was hauled off.  Keep in mind that this is pure physical demand and not churn.  Churn is very challenging in China as SGE rules dictate bars withdrawn are not permitted to re-enter the vaults unless remelted and assayed by an SGE approved refinery.

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The IRR Fashion Du Jour is Fuzzy Thinking

The big fashion du jour among those following metal development stocks is to produce IRRs based on $15 silver and $1,100 gold and pronounce projects “in trouble.” Then the stocks are trashed down to some level that assumes this “trouble” is permanent. Maybe it is my sensitivity to “twilight language,” but again a few distinctions need to be made.

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Literally Hot Air

There have been some very good articles describing the over-trading and gaming in paper precious metal futures. A clarification needs to be made about the term “naked shorts.” Although commonplace, this term is technically incorrect. I have used it myself incorrectly, so am not casting dispersions. A naked short is an illegal transaction. The transactions on the Crimex are not illegal as they involve selling against an existing or a newly created futures contract with a buyer on the other end.

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Game Theory and the Energy Washout

One just has to laugh — LoL-style — at the U.S. Mint. On the second day of its latest offering, buyers snatched up 1.222 million Silver Eagles. Of the 3 million offered, that’s 2.554 million coins out the door in just two days. Still, I suppose the mint can be forgiven, as this run rate gobbles up about 60% of global silver production for the two days. Yes, silver no doubt is hard to come by. Unless we are in Truman World sometime today, another announcement will be forthcoming about the “mint” once again suspending its silver coin biz.

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The ‘Strange’ Death of Gareth Williams

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A yoga expert failed to lock himself inside an identical bag without any outside assistance source: Daily Mail

Gareth Williams was a code/cypto expert within British intelligence. He had the highest-access security clearance. Williams turned up dead in his bathtub on Aug. 16, 2010. But he wasn’t merely dead. He was locked into a red North Face bag, which was padlocked from the outside. To any thinking person, it should be obvious that Williams became a loose end that needed to be tied up. Some, including me, believe he decoded a plan for a major false-flag attack on the U.S.

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US Mint is Back in the Silver-Coin Biz — at Least for a Few Days

Below you will find a clean chart showing the strong performance of gold in the bond bust of the 1970s. The second chart shows the deep corrections and powerful rally cycles of the gold stocks over the last 40 years.

Rising interest rates would almost certainly be accompanied by a large swoon in overpriced stock markets as well. This would create a flight of capital from falling markets that has to go somewhere, particularly if cash balances held in the banks are at a growing risk from systemic default. This would apply very much to the China crash scenario and explains why withdrawals from SGE are currently strong, which runs counter to the “news” misdirection out there. This may be just the tip of the iceberg.

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Source: Casey Research

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Muslim Demonization Hoaxes Matter

The latest in the mounting cascade of “coincidences” is in on the sloppy Muslim demonization hoaxes. Here we see indication of yet another shifted persona stagecraft situation.  About all they did is change the skin tint, background, and went with a digital resolution in the second photo. Lance Cpl Larry Wells was killed in Iraq 2004:

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“Skip” Wells killed in Chattanooga last week:

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Is the Cabal Set to Release the Hounds?

The Commitment of Traders report was shocking beyond belief. Its data certainly explains some of the ferocity of the attacks. The managed-money boyz added 10,317 more shorts on their way to a Hunt Brothers oblivion. They were aggressively joined by small specs, who tossed 6,566 more shorts into the brew. Specs large and small tossed 2,890 longs.

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