Silver – The Only Commodity 66% Cheaper Than 37 Years Ago

Silver – The Only Commodity 66% Cheaper Than 37 Years Ago by Dave Kranzler – Investment Research Dynamics

Silver has gone from being the cartel’s kryptonite to being its LHC, or Large Hadron Collider. There are a lot of theories on what is going on with silver but the reality will probably be something even more fantastic. I keep getting back to lumber by way of comparison. The OI in silver is 55 times higher than in lumber, yet the global physical lumber market by dollar volume is actually higher. – quote from LeMetropole Cafe’s “Midas” Report

Those of us who have studied and traded silver for a long time (16 years in my case), have concluded that the Western Central Banks have painted themselves into a corner with their multi-decade effort to control the price of silver. Central Banks ran out of silver to unload on the market a long time ago. As such, they’ve had to resort to using paper derivative silver in the form of Comex futures, LBMA forward and OTC derivatives in their effort to cap the price of silver. In the last year, the amount of paper silver sold short against the available supply physical silver has grown into an astronomical number. At this point the banks can only pray that less than 1% of the longs each delivery period will continue to settle the contracts in cash…

“As a fiduciary, to the extent that you own gold and are going to own it a long time, it is not a trade….in the COMEX warehouse they had $80 Billion of open interest, and $2.7 Billion of deliverables….thats an easy one, you go get it.”  -Kyle Bass

Kyle: “What if 4% of the people want delivery?”
COMEX Delivery Manager: “Oh Kyle that never happens. We rarely ever get a 1% delivery.
Kyle: “Well, what if it does happen?”
COMEX Delivery Manager: “Oh, well price will solve everything.”
Kyle: “I said thanks, give me the gold.”

Here’s the link to that interview with Kyle Bass: “I’ll Take My Gold, Please”

The Daily Coin chatted with GATA’s Bill “Midas” Murphy about the current degree of manipulation in the silver market. The banking cartel is trapped, in a sense. The only resolution of this dilemma is a much higher price of silver – the free market solution – or war:

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Dave Kranzler

I spent many years working in various analytic jobs and trading on Wall Street. For nine of those years, I traded junk bonds for Bankers Trust. I have an MBA from the University of Chicago, with a concentration in accounting and finance. My goal is to help people understand and analyze what is really going on in our financial system and economy. You can follow my work and contact me via my website Investment Research Dynamics. Occasionally, I publish on Seeking Alpha too. As a co-founder and principal of Golden Returns Capital, LLC Mr. Kranzler co-manages the Precious Metals Opportunity Fund, a metals and mining stock investment fund.