Silver Premiums Rise APRIL 19TH 2013

GERALD CELENTE HAS RELEASED HIS LATEST TRENDS JOURNAL (SPRING EDITION)  WITH A SNIPET OF WHAT HAS HAPPENED SINCE THE PRICE DROP (RUBBER SLAM) OF GOLD AND SILVER,
BECAUSE AS IT TURNS OUT THE PRICE ON THE MARKET WENT WAY DOWN AND YET THE REAL PRICE FOR (PHYSICAL)  SILVER WAS $3-$6 OVER SPOT PUTTING 1 OZ OF SILVER AROUND $30.00 AND TOWARD THE END OF THE DAY THIS SILVER COMPANY SOLD OUT!!! PRICES REALLY CAN NOT STAY THIS LOW FOR LONG.

PLEASE CONTINUE READING BELOW IT IS QUITE INSIGHTFUL AND I'M BLESSED TO SHARE THIS WITH YOU

GNS+REASEARCH 

 GERALD CELENTE

"However, because so many subscribers are so concerned about where gold is going, we have included the following hot-off-the-press analysis by former assistant US Treasury Secretary Dr. Paul Craig Roberts, who explains the complex drivers behind the otherwise inexplicable gold sell off … and also what he sees in gold’s future":

Gold Takedown Proves That There Are No Free Markets,
Only Rigged Ones

We know for a fact that the Federal Reserve has been rigging bond prices and interest rates, and we know for a fact that the banks rigged the Libor rate (the overnight London borrowing rate) so we should not be surprised that bullion prices are rigged by short selling.

The recent takedown of gold was orchestrated by massive short-selling, which forced down bullion prices and pulled stop-loss triggers that added to the selling. Then margin calls were sent out. Brokerages warned clients in advance that hedge funds and institutional investors were going to unload their paper gold contracts, and Goldman Sachs egged the scare on with a similar announcement.

The Presstitute media fell in line with the game plan, and bullion prices fell dramatically.

But while paper sales drove down the price, purchases of the physical metal rose. During the two days when hysteria was highest (Friday and Monday, April 12 and 15), bullion coin dealers ran out of stock. With demand for physical possession of bullion exceeding supply, the premiums on coins over the spot price of bullion rose dramatically.

At the large online retailer, Gainesville Coins, the premium on a one Troy ounce Silver Eagle jumped from $3.75 to $5.99. By April 19, the premium over the spot price was $6.25. This percentage increase in the premium was larger than the percentage decline in the silver price, leaving the price of a silver coin unchanged despite the drop in silver price.

On April 19, the premium over the spot price of gold for Gold Eagles at Gainesville Coins was $72 if paid by bank wire and $115.71 if paid by credit card.

The mid-day April 19 inventory of the large Wholesaler, Tulving, shows the company to be out of stock of silver coins and most gold bars.

So, the price of gold and silver was driven down by selling, but there is little gold and silver available for purchase.

How can there be so much selling of bullion but none to purchase?

The answer is that speculators have leveraged the bullion available with paper contracts that are bets on prices. The paper claims exceed the actual metal available to clear the contracts, just as in a fractional reserve banking system, demand deposits exceed the available cash.

As the paper market is larger than the physical market, the price is set in the paper market where short sales can drive down the futures prices. Thus the price can be driven down even while purchases of physical bullion rise.

News reports indicate that during the price takedown, sales of bullion coins reached new daily records. Purchases of physical bullion rose not only in the US but also in India, China, Japan, Australia, and elsewhere.

As I have pointed out, rigging the gold price helps the Federal Reserve rig the dollar’s price or exchange value in currency markets. The Fed’s Quantitative Easing means 1,000 billion new dollars are being created annually, a huge increase in supply. But demand is not growing commensurately. The US economy is weak, as are most of the world economies, and fewer countries are using the US dollar to settle their international accounts.

When supply outstrips demand, it puts downward pressure on price. A drop in the dollar’s exchange value would raise import prices, and domestic inflation would rise. Rising inflation would cause the Fed to lose control over interest rates and bring to a halt the Fed’s ability to support the prices of debt-related derivatives on the balance sheets of the “banks too big to fail.”

The Fed would face more crises than it could handle. The financial crisis associated with the banks’ insolvency would reappear, possibly triggering the large problem of derivative exposure. Rising interest rates would collapse the bond and stock markets. There would be a run on the dollar. Gold and silver prices would explode.

The orchestrated takedown in gold was done in order to reinforce the propaganda that gold is risky and only the US dollar is a safe haven. To add another level of protection to the dollar, Washington has prevailed on Japan and on the European Central Bank to print yen and euros. If other large currencies are printed, the dollar doesn’t stand out as a depreciating currency, and thus the Fed can continue its support of the balance sheets of the “banks too big to fail.”

Of course there is more to the future than gold and much more about the future in the Spring Trends Journal. Our motto is “History Before it Happens.” But unless our lead trend, the great “I Don’t Want to Hear it” trend, is reversed – and you do your part to reverse it – you will surely wish that the history that happens, didn’t happen!

Sincerely,

Gerald Celente