Weakening Economy Sets Stage For Gold & Silver Dave Kranzler

Things that make you go hmmmmm

It may sound like conspiracy theory, but it makes so much sense. You need to read this.

Possible Comex Default

From Bill Holter:

“Last week Barrick Resources announced the postponement of their giant Pascua Lama mine. This was to be one of the world’s largest mines and is now tied up in litigation over true ownership as it appears to show that Barrick does not have clear title. The probable reserves were nearly 18 million ounces of gold and almost 700 million ounces of silver. Work on this mine was completely ceased last Wednesday.
‘Last Wednesday’ was also an important day for the Kennecott copper mine in Utah, the ground started to shift more rapidly prior to this weekend’s landslide. They knew this was coming as they closed the visitor center on April 1 and had all equipment and personnel out of harms’ way. This mine produces some 400,000 ounces of gold and over 3 million ounces of silver as a by-product of copper; this is the largest copper mine on the planet. Have you heard even a peep out of the mainstream media on this? I didn’t think so.
Is it not strange that these two events came to a head last Wednesday? The same day that out of nowhere gold reversed from being up and give up $40? And then of course there was Friday with $85 and another $75 this morning. Gold is now down $200 per ounce in just over 3 trading days. Between these two projects, one not coming online and the other going off line, a VERY significant amount of production is not going to happen. Does this make sense? Did you not learn in school that ‘less’ supply meant higher prices? In the real world?
We don’t live in ‘the real world,’ we live in a world where everything financial is manipulated.
Here is what I see happening. They knew that this mine was going to collapse and the production would stop. Then the ruling on the Pascua Lama mine was sent down. Last Thursday President Obama met with 15 heads of the biggest banks and brokers in the country, THIS was discussed as sure as the Sun came up this morning: we have hit the bottom of the barrel! Reserves that could be fed into the market are and have dried up at the same time that production has dropped and future production delayed. The paper game is blowing up …RIGHT NOW and the topic of discussion at the White House was about “how it would play out”.
The COMEX will default in the next week or several weeks and people will be ‘settled’ with Dollars, no more metal will be delivered! So, knowing that ‘game over’ has arrived, they are dumping a massive volume of paper contracts with impunity to push the metals prices as low as possible before the ‘default’.”

More on the Comex Force Majeure

Larry Gold published his related thoughts:

“As for the timing of the prediction, I have a problem with ‘next week or within a few weeks’ time frame. Somehow I don’t see the game ending that quickly. I would expect the COMEX to deliver but it might take 6 months for your contract to get filled with the real physical bullion. Then at the same time they continue to crash the market with intent of making those Goldbugs pay dearly. With that said, I’m not too obtuse to deny the possible charade of forcing metal settlements to be as inconvenient as possible. ‘You don’t really want this old nasty metal in 5-6 months. No, you want nice crisp dollars deposited into your account TODAY!’
If the COMEX does fold, I think they will let silver go first (before gold), and here’s why. Historically, it’s been the habit of TPTB to blow up a small island first and see what happens. Think the Bikini Atoll with the H-bomb. And now more recently think of Cyprus. A ‘Force Majeure’ in silver would be a huge event, but light years away from what a ‘Force Majeure’ in gold would mean. They could invent a silver shortage story to explain it away, i.e. mine collapse, cyber attack, fat finger from a rogue commodity trader, and on and on.”