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All that is needed…
Bill Holter

…is just one Billionaire to place an order on the COMEX for Silver and POOF…it’s all over!  Seriously, this is true, just a single $1 Billion order would basically wipe out ALL deliverable Silver held at the COMEX.  Not only that, I suspect that if a huge order came through (which is discouraged by position limits on the long side), much of the supposed “deliverable” Silver would change categories or even evaporate prior to being delivered.  Think about how small $1 Billion is.  It is equal to roughly a mere 8 hours time of which our government borrows 24/7.  It is like going to bed and getting a good 8 hours of sleep…wake up and we borrowed another $1 Billion.  Only in this case, once this market gets broken and trust me, $1 Billion will do it, we will go to sleep, wake up, and no Silver will be available.

Years ago, Warren “Gold ain’t money, it’s barbaric” Buffett held 129 million ounces of Silver (equal to nearly $4 Billion at today’s price).  It was speculated at the time when he sold it that he had his arm twisted to do so, maybe, maybe not.  I bring this up because there are now no hordes of this size available, ANYWHERE and the “threshold” to breaking this market goes down every single day.  Have you ever wondered what will happen if (when) this market does get broken?  You might at first think “who cares?” but that would be shortsighted.  I say shortsighted because any action in Silver will surely spill over into the Gold arena and Gold exploding higher is definitely not a “confidence” builder, on the contrary, fear is THE greatest financial emotion of them all.

Putting the Gold market aside, what really will happen when the COMEX Silver pit gets broken and cannot make delivery?  Obviously, the price of Silver will rise.  It will rise because the shorts will get scared and buy, the specs will get greedy and buy BUT, the real catapult will be sellers, or lack of!  When sellers whether they be paper or physical get a whiff of this, they will pull their offers and create an upside air pocket where anyone who wants in…will have to do so at much higher prices.  The physical sellers will probably go into TOTAL hibernation for a spell where they will not accept any amount of fiat paper until they can “trust” what it is that they are getting in return of sale.  A busted Silver market will spill over into everything.  This one “little white lie” will expose many and far larger lies up to and including the fact that the entire system is a Ponzi scheme.  It is really this simple, Silver CANNOT be allowed to be “outed” because it will expose everything else so don’t hold your breath for a miraculous CFTC ruling, failure to deliver WILL be the catalyst.

This is all basic stuff but it is important to understand just how little money is now necessary to detonate the global financial system.  It could be a Chinese or Russian billionaire, it could be a Carlos Slim or someone else that has mining investments, it could be a coalition or whatever.  I will leave you with this thought, “it WILL be done for the simple reason that it CAN be done” and it can now be done with very little money and very little effort.  We, the U.S., have made many many enemies over the years, I cannot believe how stupid it is to have left exposed such an obvious and easily attacked Achilles heal to the entire system.  …and if a foreign sovereign government were to enter the Silver market?  $1 Billion?  $5 Billion?  Are you kidding me?

 

blog.milesfranklin.com

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