The Global Silver Run: The death knell sounds for Western fiat paper capitalism
Alcuin Bramerton
A photograph. A year ago this piece of metal was worth $18,000. It is now worth $49,000. In one year's time its value could be in excess of $140,000.
Is what is happening to the global silver price about to sound the death knell for Western fiat paper capitalism? The division of the New York Mercantile Exchange (NYMEX) which is known as the Commodity Exchange (COMEX) has five major precious metals bullion depositories. One of these, Scotia Mocatta (Canada), has recently seen a 25 percent transfer (reclassification) of silver from "registered" (deliverable physical) to "eligible" (undefined). Quietly, at the stroke of a pen in a single depository, 5.2 million ounces of physically deliverable silver, worth about $240, have been dematerialised. Two other COMEX bullion depositories, HSBC and the Delaware Depository, have now followed suit.
Is this a panic response to a global silver run? Everybody in the know wants to hold physical silver; nobody, any longer, trusts fiat paper which talks about silver but isn't actual silver itself.
A COMEX default on the delivery of precious metals, and specifically of silver bullion bars, is now a real possibility. Silver is in backwardation. An élite attempt to corner the silver market through buying and taking delivery of physical bullion is very real. This would lead to a massive short squeeze. Silver could surge to well over $140 an ounce. It is currently at $49. A year ago it was at $18. A silver price chart can be seen here. A silver versus gold versus US dollar chart is here. And a global stock prices overview page can be viewed here.
Following two margin hikes by the Chicago Mercantile Exchange (CME) at the end of April 2011, one for 9% and one for 10%, MFGlobal has hiked its silver margin to $25,397. The latest CME margin is $14,513, or about 6% of the contract value of $241,750 assuming a silver price of $48.35. So MFGlobal's is 175% of the CME.
Everyone on the inside of US cabal finance is now hell-bent on trying to destroy the parabolic move higher in gold and silver. But this upward trend is happening for a very good reason: deranged fiat money printing by the US Federal Reserve Board. BinyaminShalom Bernanke's Weimar Rally is beginning to have a tangible effect. The global markets are assigning a de facto world reserve currency status on gold and silver.
More here(29.04.11), here(27.04.11), here (20.04.11) and here(20.04.11). And a comment on the Sphinx-like bona fides of the Chairman of the US Federal Reserve Board can be found here(29.04.11).
http://alcuinbramerton.blogspot.com/2011/04/altnews7-1ab-alcuin-alcuin-bramerton.html
May 1, 2011