Are we ready?

"How tight is the physical supply of silver?

1) it took over 6 weeks for HSBC to physically deliver the silver to our fund from our May Comex contract technically it should have left HSBC's vault on May 29th.

2) the people at our depository - First State in Delaware - told us they customers still waiting for delivery of silver on their April contract

3) all week this week, September silver and spot silver have been trading, for the most part, even dollar. in a healthy functioning market - i.e. freely traded and no shortages - September silver should be trading at least 3-4 cents higher than spot silver. What's even more significant is that September is a large delivery month, which means that large buyers would rather get a hold of their silver today rather than wait for September.

Prepare yourself for a big Commercial Signal Failure - all the signs are there that it's coming soon...

…And a good point about the Greenlight Capital hedge fund switching all of its GLD stock into actual custody of physical gold. We all know why this was done. BUT the hedge fund world tends to be "monkey see, monkey do" and several big hedge funds are large holders of GLD. I guarantee you that every single one of them is now analyzing why Greenlight made the switch, which means they are going over the GLD prospectus with a fine tooth comb. You can take that to the bank. We are edging closer by the day to the Midas Commercial Signal Failure.

…There is a fair amount of chatter on the internet about a coming dollar devaluation and banking holiday in early fall. Have no clue myself. However, a number of us in our camp have mentioned for YEARS that one day the financial landscape regarding gold will change overnight … which is why you don’t want to be too tricky and not be VERY invested in the precious metal sector. There will be those who will make a quick fortune and those who were too cute and out of position, and did not.

The financial markets are in lockdown … held in mostly broad trading ranges…

*An obvious one is gold between $930 and $940.
*The DOW has been on both sides of 8500 of late.
*The yield on the 10 yr T note has been up and down between 3.2% and 4%.
*The dollar is flatlining around 80.

…The price of 1-ounce gold coins is $1,000 despite efforts of the U.S. government to hold down the gold price. How high will this price jump when the rest of the world decides that the bankruptcy of "the world's only superpower" is at hand?

I seem to remember that Paul Craig Roberts in a previous article intimated the US Government suppresses the price of gold. I think you wrote to him at the time and he wriggled out of admitting he knew it was government policy despite him having worked at the Treasury. Here he is again going on record but this time categorically stating as fact that the US Government is trying to hold down the price of gold. Once could have been a slip but twice is certainly showing he knows more than his prayers. When an ex-assistant Treasury secretary asserts that the gold price is suppressed by the US Government I would say that is as good as a confession as you are ever going to get with putting the cartel under oath and water-boarding them!

Chalk up another victory for GATA!
Cheers
Adrian

…Paper, Scissors, Gold

We have often said that when the real crisis of liquidity comes, and the final flight to safety from the credit collapse begins in earnest, the exchanges will alter the rules to allow for cash and paper settlement of claims for bullion, which they cannot or will not be able to deliver at the agreed upon prices.

This is what makes the current structure of the short positions held by a few banks on the precious metals exchanges a 'racket,' a type of Ponzi scheme where the same thing is sold repeatedly with no means of satisfying the aggregate of the claims and ownership.

The wheels of justice grind slowly but they grind exceedingly fine.

http://jessescrossroadscafe.blogspot.com/2009/07/paper-for-gold.html

…Swiss banks running out of storage space for gold bullion

Worries about the economy and the success in marketing gold ETFs has seen Swiss banks finding difficulty in meeting secure storage requirements for gold bullion.

Author: Lawrence Williams
Posted: Friday , 17 Jul 2009

LONDON –

http://www.mineweb.com/mineweb/view/min
eweb/en/page34?oid=86392&sn=Detail

…Max Keiser on France 24 TV
"Goldman Are Scum"
http://www.youtube.com/watch?v=VSwWy4E6I04

"The only solution is Gold"
http://www.youtube.com/watch?v=ZoQrYa_NKQQ

Max also has a weekly show on the BBC

…The Federal Reserve’s policy of Quantitative Easing is failing. The US budget is ludicrous, spending is out of control, spending promises are out of control, the world knows it - and we know it. For all the pundits who see the economy improving over the next year, we invite you to explain to us how this debt crisis will resolve itself without significant turmoil. We’ve tabulated the numbers above - and they do not lie. As we wrote this past January, welcome to 2009. -- Eric Sprott, Markets at a Glance: June 2009 Special Issue.

http://www.sprott.com/Docs/MarketsataGlance/June_2009.pdf