CHINA’S EMPTY SILVER VAULT
CHINA’S EMPTY SILVER VAULT by Charles Savoie – No Silver Nationalization
TDC Note – This article was originally published in 2004. It is well worth your time as Charles Savoie, as some of you know, is one of the best researchers around. His work takes one of the deepest dives into the murkiest of waters, within the silver space, and he always finds the pearls! This piece is exceptional.
Let’s talk about the People’s Bank of China and its silver vault, from whence has come most of the manipulated silver supply with which to maintain the price suppression, since sometime in 1999. As a gentleman formally known to us as Theodore first pointed out, the Pan American Silver 2003 annual report, page 5, had remarks about some 300 million plus ounces of silver that have found their way out of official Chinese government holdings in the last 4 years, enough to keep the deficit emergency under wraps. In his April 10, 2002 commentary, “The China Silver Syndrome,” Ted was of the view that China wasn’t dumping its government held silver. You know how shorts will turn loose any rumors they can to influence the price. We thought it was rumor, but it turned out to be fact—another ugly fact in a long parade of ugly facts favoring the users and the paper money mob! In “Is Wo Fat Dumping Chinese Silver?” (Archives) it was also my view, as of October 2001, that it could not make sense, from the Chinese perspective, to dump silver at giveaway rates, and therefore, that such was not the case.
By January 2003, when I presented “Silver Devils,” I found I had to change my thinking about Chinese silver. It was noticed here last month that Mr. Xiaochuan, head of the Chinese central bank, is a member of a paper money mob organization loaded with Federal Reserve types, including Paul Volcker, the man who took 158 million ounces of silver away from the Hunts. Running as he does with paper money creators, they persuaded Xiaochuan to dump silver so the low COMEX price could continue to prevail. A mountain of gold and interest rate derivatives, and the dollar, are at risk if silver rises, because silver’s rise would also free gold to rise! Concerns expressed by Gold Anti-Trust Action Committee over precious metals manipulations were expressed long before their founding, and similarly denied by Treasury Department spokesmen! As we find in the Wall Street Journal microfilm, September 13, 1974, page 25—
“All sorts of rumors, focusing on fears that the price of gold may be forced down by gold sales from central bank holdings, have swirled around the (mining) stocks this week. Reports out of London quoting “official” sources as confirming the possibility that Italy might sell some gold over the next two years seemed to buttress those fears. The speculation has even reached “devil theory” proportions, laying to the U.S. Treasury a vested interest in undermining the price of gold in order to damp U.S. investor interest in direct ownership when that becomes legal next year and to advance the Treasury’s aim of further de-emphasis of gold’s monetary role. “That’s nonsense,” says a Treasury official. “The Treasury certainly hasn’t any such policy.” (JUST A POLICY OF LYING!)
As of October 20, 2003, Jeffrey Christian, head of CPM Group, in an alleged “report” entitled “Myths & Errors in the Precious Metals Markets,” said that Chinese government silver stockpile sales are a “myth.” He also suggested gold can’t get much past $400. This is the same fellow who put out an opinion piece in 2001 entitled “Bullion Banking Explained,” evidencing his attitude that precious metals longs just don’t comprehend the gold and silver markets, and for that reason, his genius assistance is necessary in order that we may think clearly. CPM Group, professing to be unbiased and independent, was a spin-off from Goldman Sachs in 1986, an investment banking organization that has cut a wide swath of losses among many investors. Jeff Christian is also a director of International Precious Metals Institute, along with Alex Patel of Du Pont, Silver Users Association executive committee member. Other Silver Users Association members are represented on this board including Handy & Harman; Englehard (of whom we will read much in this report); Gannon & Scott; and New York Mercantile Exchange, which has a political action committee that donates to Idaho Senator Mike Crapo. Mr. Christian (is he one) is on record as denying the claims of Gold Anti-Trust Action Committee. That’s not surprising since Christian has done a research paper with a World Bank economist; that Christian is a personal friend of gold price suppressor Robert Rubin (with Goldman Sachs for 26 years), who also appears on the IPMI board. Considering the confirmations we’ve seen about China dumping silver, and the fact of Christian knowing influential people very well, the appearance is that he wished to “cover” for someone. The Federal government has been an accessory to the paper money mobsters for a longer time than most people who know anything about it realize. For example, speaking of the year 1920, Senator Pittman of Nevada said (Commercial & Financial Chronicle, March 23, 1940, page 1859) —
“The United States government made available to exporters of silver 50,000,000 of standard silver dollars for the purpose of beating down the price of silver.”
The great price depressive silver monster first came into being around 1873, when silver was demonetized in America at the secret behest of the Bank of England, whose gold holdings became so much more valuable as a consequence. Then in 1947 the world witnessed the formal founding of the Silver Users Association. The great price depressive silver monster is a two-headed monster, composed of a fiat paper money faction, and an industrial users association (lobby). This price depressive silver monster set out to soak up as much of the world’s centuries of accumulated silver metal as possible. As one stockpile was exhausted, it has turned continuously to others for low priced, manipulated silver. In the meantime, silver miners have, for most of this time, suffered terrible privations. National coinage programs in various nations have been cheapened from true money—silver—to cupronickel,
aluminum, and other base metal coins, all so the great price depressive silver monster could continue its low-price feast.