Submitted by Tyler Durden on 07/24/2015 15:50 -0400
For the first time since records began, hedge funds are net short gold futures, according to CFTC data…
This is what happened the last time gold saw a ‘low’ net long position…
Is this why Gold is spiking this afternoon?
Squeeze…
Charts: Bloomberg
If gold is a canary in the economic mine, obviously TBTP are trying to kill it but gold is part of mankind’s heredity and that will not die no more than TPTB can kill Christianity or God.
Maybe this time is different. I used to read a site called SilverDoctors until it became a hyperbole filled, wolf cryin’ waste of time. I still peruse headlines there now and then. I came across this partial headline there today:
“Sunshine Mint SUSPENDS SALES OF ALL SILVER BARS AND ROUNDS, & the RCM SHOCKS Distributors Friday By Announcing 90% Decrease in Silver Maple Allocations!”
The US Mint recently halted sales and stopped taking orders for Silver Eagles. For those that don’t know, Sunshine Mint manufactures the majority of 1oz silver blanks for the US Mint. They also manufacture and sell their own lines of silver rounds and bars and I believe they make boutique generic rounds for others. The “RCM” mentioned is the Royal Canadian Mint. I have no idea who makes their blanks or if a blank shortage is the problem for them but I’ve never seen both the USM and RCM unable to deliver like this. I’ve heard whispers that the Perth Mint is and has been having trouble for several weeks as well.
The US Mint has had trouble with blank (planchettes) supplies in the past. I believe this was due to the Congressional Law that mandates Silver Eagles be made from “newly mined” “domestic” silver. I do not recall Sunshine Mint ceasing production of their own products during previous US Mint shortages as they are not subject to that law.
Over the last few years I’ve read that annual sales of physical silver have been exceeding annual mined silver production. If Sunshine Mint, a private company, has to discontinue production of its own product lines AND cease production on a lucrative, major govt contract due to a lack of wholesale silver, we may have finally hit that supply side wall. I’m not convinced the shortage is real or significant yet. If it is, this may be the point where paper and physical prices diverge.
If you are inclined to buy silver and you can still source it through your LCS you might want to grab some while you still can.
TPTB are so diabolical and powerful that one day eagles may be officially $25 with a $1,000 premium.
I should add that most of the big online retailers seem to still have most silver products in stock for immediate delivery with reasonable premiums.
It’s a game but it’s really not. I mean because Gold has been a store of value for the last 5,000 years, but it’s never been “virtualized” before now. IMHO only a matter of time before the “virtual” side bifurcates from the “real” side. It’s GOT to happen. Already happening as Mr. Siddell jr. points out.