Our new “era”(?) of Hostage Markets begins with the inventory-crisis which existed in 2000 having gotten substantially worse, fourteen years worse. Fourteen more years of the above-ground stockpiles of bullion being devoured, in an unprecedented shift of wealth and control from West to East. “He who has the Gold makes the Rules.”
As the warning-bells of (official) bullion-default and/or unofficial Decoupling ring even louder at the end of 2013 than they did at the beginning of 2000, they ring loudest in silver. Regular readers will be familiar with the chart below, the last time we saw any legitimate numbers on global silver inventories.
Price-fixing by the One Bank in the silver market during the 1980’s and 90’s (and the 600-year low in the real-dollar price of silver which resulted) led to a 90% collapse in silver inventories from 1990 – 2005 alone. What happened after 2005, as this collapse seemingly began to reverse?
This was when the One Bank instructed its minions to begin falsifying the numbers on global silver inventories. This was accomplished in an absurdly clumsy manner: through adding silver sales receipts into total inventories. Specifically, every ounce of “silver” purchased in the bankers’ paper-called-silver market was added into total inventories. This has produced the totally farcical scenario in this quasi-official “record-keeping” where the more (paper) silver which is purchased, the larger the phony, official inventory numbers grow.
In short; we have absolutely no idea whether there are only two days of supply remaining for global demand for silver or two years. We only know that by 2005 the One Bank was already so alarmed by the complete collapse in global silver inventories that it began falsifying the reporting of this data – and this inventory-fraud persists to this day.