JAMES PUPLAVA-FINANCIAL SENSE

The US Mint has suspended the production of US Eagles.

I was told by one dealer this morning, checking with him, they’re telling people delivery dates for silver Eagles won’t be till January, February of next year. One dealer I was talking to said that they can’t even get the plates – so what they were doing is they were ordering thousand ounce bars and they were melting the bars down to make one ounce coins because most people are buying either silver rounds – and I was told delivery dates right now are two months out. So this is August, probably late October. That’s how scarce it is.

So, the other thing is get your physical metals because there is a gross discrepancy and divergence between trying to drive down the paper market price of silver. One dealer told me in July his sales were up four fold last year; and this month alone, his sales are up eight fold. One dealer was telling me today that he had never seen anything like this in his lifetime. On this Friday I just bought a ton of silver and I’ve been told it’s going to take two months to take delivery on that ton. And if the price goes lower, I’ll buy another ton. I’ve got a couple of dealers who store my bullion for me until it’s shipped overseas.

Michael sez: These people out here in the fedgov are not your friends! Who in the hell do you think gave the banks the money to fool around with this? But that lawsuit may be a bit iof a bitch.

THE LAWSUIT I TALK ABOUT

Gene Arensberg, Resource Investor

Everyone can look at the data and form their own conclusions. But when silver is in short physical supply, commanding injuriously high premiums and difficult to locate; when investors are piling into the silver ETF in droves, a 40% silver price plunge is not only not warranted, it smells.

It is difficult to imagine a legitimate reason that two U.S. banks could quickly and systematically amass a net short position on the COMEX which amounts to over a quarter of the entire action on that bourse. It will not be surprising at all if we learn that these two U.S. banks are taken to task by regulators for their actions. It will be even less surprising to learn that they have become the target of multi-billion dollar class action lawsuits by hungry lawyers representing silver investors everywhere.

Futures markets are supposed to answer the actual physical markets, not the other way around. In other words, futures markets are supposed to be a place where producers or large holders of a commodity can lay off price risk to speculators and thereby hedge against unforeseen adverse movements in the price of the commodity. Futures markets are definitely not supposed to be a place where a couple of well connected and well funded entities can bully the market with their own heavy handed trading.If silver really was just taken down by a couple of very big U.S. banks to irrationally low levels, it won’t be long before the laws of supply and demand reassert themselves. Got silver?