Silver Inventories At Low Levels

However (as also previously noted) part of the frustrated demand for gold in India has morphed into demand for Poor Man’s gold: silver. A year which started out appearing to be a record year for Indian gold-imports quickly pivoted into a year of record silver imports instead.

Because the price of silver itself has been manipulated by the One Bank to such an extreme low, even these “record imports” into India only equal a small portion of the total amount of wealth which Indians had been previously funneling into gold. Presumably, gold-smuggling has only restored a fraction of the level of supply which has been lost in the form of official imports. Thus a considerable amount of pent-up bullion demand remains unsatisfied.

We see evidence of this pent-up, unsatisfied demand in the form of a slow-but-steady decoupling in prices for gold in India. We have the phony, artificially-low “official” price for gold, the product of the One Bank’s price-fixing. But now we also have the steadily increasing real price for gold in India: the blackmarket price.

The results achieved by the One Bank in its savage attack on India’s gold market are a less-than-impressive victory:

a) The beginning of a Decoupling in prices (in the world’s largest gold market) between the fraudulent, official price for gold in the bankers’ dying paper-called-gold markets versus the price for real, physical bullion.

b) Pent-up demand for gold in the Indian market. When (one way or another) the Indian gold market is once again “liberalized”; that tidal wave of unsatisfied demand will be unleashed, just as has occurred in China.

c) Record silver imports.

Massive, heavy-handed attacks on legitimate bullion markets (or any market) result in massive consequences. This is merely the latest example of what we see again and again. It was the savage price-suppression of bullion markets during the 1980’s and 90’s which created the massive bullion-run for gold and silver which lasted for more than a decade.

The longer that the One Bank plays its new game of Hostage Markets, the greater will be the consequences – in the opposite direction. The Laws of Supply and Demand will not be denied. After the previous, twelve-year bull run; do we need to fear (once again) decades of frozen prices in this reborn paradigm of Hostage Markets? Of course not.

What were the consequences the last time the One Bank exerted absolute control over bullion prices in its 20-year reign of terror? It squandered the largest stockpiles of bullion ever accumulated by our species. The 12-year bull run in precious metals markets from 2000 through 2011 was the product of that resultant inventory crisis.

Did the One Bank (and our Puppet Governments) spend that time rebuilding their inventories? No. They continued squandering what little gold they had left (after all their silver was already gone), until the gold-dumping by Western central banks abruptly screeched to a halt in 2009 – at least all official dumping.

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