GOLD INVESTMENT REPORT
PRECIOUS METAL & ENERGY
CURRENCIES & STOCK INDEXES

* Quick Charts & Dire Signals
* Intro Golden Nuggets
* COMEX Shell Games to Avert Failure
* Serious Distress at Mining Firms
* Explosive Gold & Silver Demand
* Paradigm Shift & Gold Market Squeeze
* Disarray in the World over Gold
* Gold Pushes Aside Shackles



HAT TRICK LETTER
Issue #113
Jim Willie CB, 
“the Golden Jackass”
21 August 2013

 

GOLD QUOTES

"They are printing money. The reason for suppressing the gold price is to control the perception that the US dollar is a sound currency." ~ Bix Weir

"In consequence, financial disaster is quickly forgotten. In further consequence, when the same or closely similar circumstances occur again, sometimes in only a few years, they are hailed by an always supremely self-confident generation as a brilliantly innovative discovery in the financial and larger economic world. There can be few fields of human endeavor in which history counts for so little as in the world of finance. Past experience, to the extent that it is part of memory at all, is dismissed as the primitive refuge of those who do not have the insight to appreciate the incredible wonders of the present. There is protection only in a clear perception of the characteristics common to these flights into what must conservatively be described as mass insanity." ~ John Kenneth Galbraith (famous 1960s era economist)

"The bust is the eventual end. Quite frankly, it has to occur based on what the Federal Reserve has done over the last five or six years. I would envision it is going to be like the seventies, but on steroids. Whether [the timing is] in the next 12 months or the next three years, I cannot really say for sure." ~ Chris Casey (fund manager)

"All available data shows very strong Supply & Demand fundamentals and yet a huge, historic 35% Gold price decline in the quarter. This lends credence to the allegations of market manipulation put forward by the Gold Anti-Trust Action Committee, whistle blower Andrew Maguire, Max Keiser, Zero Hedge, and many others in the blogosphere." ~ Mark O'Byrne (GoldCore)

"Personally some measure of enjoyment comes my way watching the COMEX squirm, suffer, and show desperation for gold supply. They will shut down before too many more months. It will be full of intrigue how they describe their death throes, with colorful inventive fiction about exaggerated antagonists who laid waste to their corrupt arena. I want lawsuits and damages and settlements and prosecution and prison time. Either justice or seeing officials to go into exile. Let them seek refuge in Paraguay, where their grandfather nazis hid. Those who can detect the broad banker criminality and baseless paper wealth will find few lifeboats. I do not plan to share my lifeboat with anyone, except one woman who keeps my heart, and not even her mother." ~ the Jackass

"Unfolding events will soon reflect the purchasing power in precious metals that you cite in the Hat Trick Letter from projected Gold Trade Settlement benchmark values. It is only a question of time. Much progress has been completed in its platforms. I am fully convinced that the price of Gold will go far past even the $7000/oz figure you cite, and the price of Silver will go far past even the $150/oz figure you cite. Both will be in today's USD units. Both could very easily make moonshots, and go multiples higher. One need not be a rocket scientist to analyze the price trajectory. The meteoric rise is pure logic. The biggest scandal of all is only beginning, with Allocated Gold Accounts." ~ The Voice (never prone to exaggeration)

"Every action has a corresponding reaction. That includes events with men." ~ from the Count of Monte Cristo (book and movie)

## QUICK CHARTS & DIRE SIGNALS

◄$$$ USTREASURY BOND LONG-TERM YIELDS ARE OFFICIALLY OUT OF CONTROL, WITH THREAT OF SYSTEMIC FAILURE. DIRECTLY AHEAD ARE MAJOR LOSSES TO BIG BANKS ON INTEREST RATE DERIVATIVES. THE BIG US-BANKS ARE LINE UP TO BE KILLED, AS THEY URGENTLY UNWIND THE USTBOND CARRY TRADE, WHICH THEY BOASTED AS BEING EASY MONEY TO REVIVE BALANCE SHEETS. THE WORLD IS DUMPING USTBONDS. $$$

◄$$$ THE RISING CRUDE OIL PRICE REPRESENTS AN INDIRECT DIRE CURRENCY SIGNAL. THE HIGHER ENERGY COSTS POSE A BIG THREAT TO THE ENTIRE USECONOMY. SYSTEMIC FAILURE ON WATCH. THE OIL TRADE IS A HEDGE AGAINST ALL FIAT PAPER CURRENCIES. $$$

◄$$$ FUKUSHIMA RADATION FANS OUT. FOOD SYSTEM AFFECTED. $$$

The August Money War Report showed a Pacific Ocean map, which was presented incorrectly. The map shown was for the tsunami sea level surges, as measured in centimeters. The key was the legend on the right side. Below is the Pacific Ocean current map, which makes far more sense. The west coast of the entire North American continent is exposed to the ongoing radiation. The Fukushima waters are heavily contaminated, pouring out multiples of Hiroshima per day!! Although the claim sounds fantastic, the leading scientists and my sources confirm exactly this threat. Thanks to an alert subscriber, who pointed out the error.

The following is a computer simulation output of the radation as it is diluted over time. Scientists are in agreement that the coastlines and fish food supply will not be saved by rapid dilution. Note the expected dilution after 1 year, 2.5 years, 5 years, and 10 years. The contamination of the US food supply is already being seen. The stillborn human births are rising 6-fold to 7-fold in parts of the Western United States. See the InfoWars article (CLICK HERE).

## INTRO GOLDEN NUGGETS

◄$$$ THE JFKENNEDY EXECUTION MARKED THE END OF THE AMERICAN REPUBLIC, FOLLOWED BY THE BROKEN GOLD STANDARD, AND THE INTRODUCTION OF THE FASCIST STATE. JUST A WILD THEORY, PROBABLY OF VERY LITTLE MERIT, THE LOGIC DELUSIONAL. MAYBE SPOT ON. $$$

The Fascist state merged the leadership of the banks and security agencies, with the military a willing poodle. It was the hatching of what was given birth in the creation of the US Federal Reserve. The Fascists took control by killing John F Kennedy, who had many good restoration plans. The next step was for Nixon to depart from the Gold Standard, part of the plot to kill the president who wished to reinstate the Silver Certificate. Giving Wall Street access to monetary control was the goal, and the requirement for Nixon handed the White House post. War became the major theme of the state with Vietnam, whose hidden motive was to capture the Cambodian Triangle for its heroin trade. More ordinance was dropped on Laos and Cambodia than on South Vietnam or North Vietnam, a little known fact. The lucrative defense contracts were the gravy, replete with Senator bribes. Numerous fascist governments had very cozy friendly relationships with the secretive US Fascists, such as in Latin America, especially Argentina, where photos were forbidden. Any repressive fascist regime that opposed communism was supported by the USGovt, regardless of human rights violations. The lead fascist ambassador has always been Kissinger. The US entered the Balkan War in the 1990 decade, only for to capture the heroin trade, wrested from the Chechens. The Kosovo base serves as a critical distribution point today.

The Fascist State had a full blown global introduction (coming out party) on 911 with a statement made to the banking community and military complex. The World Trade Center was the biggest bank robbery in world history, netting over $300 billion in gold, bearer bonds, and diamonds. The Patriot Act is the Nazi Manifesto. The USDept Homeland Security is the Gestapo. The FEMA Camps are the gulags. Airport and border security are the molestation. Torture in prison is the manner of contempt and disrespect for human dignity. The TARP Fund was self-payment bonus done as added insult following the robbery of national home equity. The News Networks are the propaganda megaphone, recently extended to Hollywood film reels. The vaccines and chemtrails are the genocide. Restricted money is the device to enforce its debt slavery. Narcotics is their $trillion profit center with vertically integrated business, and protected money laundering with big banks. War is the calling card, endless war, promoted war. Genetics is the laboratory pursuit, both human and food. Control of weather and earthquakes is the play toy, used to play God. Witness the Nazi nation, a rising powerful police state. Plenty of resident psychopaths and violent types to recruit. One would think maybe this organization was more related to King Louis and Marie Antoinette than the Old Nazis with all the guillotines being delivered to the FEMA Camps. Enough of wild theories and crazy stories from fertile imagination. No serious person would believe such a historical tale. Just a tail end of a nightmare. Please excuse the rambling by a crazy delusional inventive Jackass, who never studied political science and suffers from illogic.

On occasion of the publication of his latest book, German author Mathias Broeckers talks about the assassination of John Fitzgerald Kennedy in Dallas Texas on November 22, 1963. He sees the event as a coup d'etat that was never rolled back. Papa Bush was in charge of the Dallas security detail, run by Langley, not the Secret Service on that fateful day. See the Lars Schall inteview (CLICK HERE).

◄$$$ KAREN HUDES (FORMERLY OF WORLD BANK) REFERS TO A RETURN TO ORDER, AND A METHODICAL CLEAN-UP OF THE CRIMINAL BANK SECTOR BEING TIDY. IT WILL NOT BE NEAT AND CLEAN. INSTEAD, DISORDER WILL COME BY STORM. ESCAPE HATCHES WILL BE TAKEN. EXTERNAL FORCES WILL SOON BEGIN TO BE EXERTED FROM THE EAST IN MORE OBVIOUS WAYS. $$$

Karen Hudes talks how in response to whistle blowers such as herself, the Rule of Law will be firmly introduced and the cabal will be harnessed for the harmful influence in other countries. She gives the impression that all will be well soon. My response is firm and strident in opposition. Hudes comes from within the system and inside the dome of perceptions, including the indulgence of power. All her perceptions are based upon power within, not outside. Her implication of a return to order in the next several years has no chance whatsoever of happening. Disorder has taken root and is spreading like wildfire, not the least factor of which is the rampant food price inflation in the rest of the world. Most emerging market nations have seen roughly a 30% food price inflation effect in the last six months from the USFed monetary policy action, seen as meted out in unilateral manner. The USGovt continues to make policy in foreign lands, to control SWIFT codes for banks, to block the pipelines, to permit drone aircraft to attack sites in Pakistan, to apply sanctions in trade, to urge governments like India to restrict gold sales, and to permit the big banks to operate with criminal impunity, while they continue to interfere with every conceivable financial market. Even though the bankers are in a certain retreat, they still lash out. Be sure to know that the utmost respect is given Hudes for courage and forthright actions. But her views on a return to order are childlike.

So the West serves the bankers with welfare and toxic bond redemption, while the rest of the world suffers high cost to feed themselves and families. The stress within the system is unspeakable, and has already reached critical levels of stress for fractures, breakdowns, and collapse. The buildings are falling down too fast to maintain the order Hudes implies and expects. The IMF has converted into a Chinese office, and the World Bank has fallen into a defunct dusty corner office. Such transitions indicate diminished Western power. The East is scurrying to resist inflation, to install the USD alternative, to replace key portions of the financial structures, but they lack experience and skill. They will find it. Like countless smart well intentioned people who operate from the US & UK, Hudes never addresses Eastern developments. The Jackass spends 20% of the time bringing the East into the equation. She (like Paul Craig Roberts) are solid people with integrity. But they have a blind spot from being power brokers on the inside of the Dome of American Perception. The system does not have 10 years, but rather 10 months. The bankers will not be treated to justice, or be restrained by law. They will continue to be given a pass. They will respond like cockroaches soon, and seek dark corners (like Paraguay), to escape through cracks (like private airports), while some vanish mysteriously.

◄$$$ TRADEOFF IN GOLD. AN ACCEPTABLE COMPROMISE WITH THE BANKSTERS COULD BE TO GIVE THEM A FORCE MAJEURE TO ESCAPE THE GOLD CONTRACT LOSSES. THEN FREE GOLD FROM THEIR CLUTCHES, WITH THE COMEX SHUTDOWN. FOLLOW WITH ALLOCATED GOLD ACCOUNT RESOLUTION. CLIMAX WITH GOLD TRADE SETTLEMENT SYSTEM PUT INTO PLACE. COMPROMISE TO RELEASE GOLD. BUT PERMIT LAWSUITS AGAINST THE COMEX ON A CASE BY CASE BASIS. THE GOLD PRICE WOULD RISE TO LEVELS MULTIPLES HIGHER FROM REINSTATEMENT OF THE ALLOCATED ACCOUNTS, AND CONVERSION OF THE USTBONDS AT THE BRICS BANK. THE KICKER WOULD BE GOLD SUPPLY COMING FORWARD FROM PRIVATE BANKER ACCOUNTS ( WALL STREET AND LONDON EXECUTIVES), IN HIDING FOR 20 YEARS. $$$

The logic is becoming simple really, on the motive for the gold market ambushes. The banker cartel wishes to escape the catastrophic losses in the gold futures short contracts that have piled up like a mountain. They wish to wiggle out of COMEX gold & silver contracts with Force Majeure declarations. Perhaps give them their escape hatch, but two important consequences could be opened, even agreed upon. First, permit the raft of lawsuits for contract fraud, until the time of the declaration. Some might regard such leniency as unwarranted, but the fraud has been going on for 20 years. Plenty of convictions could be won. Untold tonnage of gold has been improperly taken from allocated accounts to satisfy COMEX deliveries. Untold tonnage of gold has been raped from the SPDR Gold Trust (aka GLD Fund). Untold tonnage of gold has been stolen from Fort Knox. Untold so-called Evergreen Contracts have been used from gold mining firms, to suppress the gold price, with no intention of offering supply in contract satisfaction.

Second, permit the Gold market to be free, with the COMEX banned from further contracts in the gold world. Third, conduct full accounting of the Repatration demands for official gold accounts, like for Germany, Austria, and the Netherlands, even Mexico and Ecuador. Prosecute abuses of the Allocated Gold Accounts, forcing purchases to reinstate the pilfered accounts, regardless of how high the gold price goes. Require all private bullion banks to reinstate accounts also. This step is very significant, since the total tonnage of misused allocated gold could be over 40,000 tons. Their frantic search for gold supply would push the gold price quantum levels higher, but also bring much gold out of private accounts owned by the bank cartel executives themselves. Imagine new supply coming from banker private accounts like in the Carlyle Group.

Fourth, encourage the BRICS Bank to proceed with its transition into the role of Gold Trade Central Bank. Have the Turkish bankers and other smaller players serve as intermediaries in gold trade settlement. This step is the most significant, since it would have the BRICS Bank operate as a processing site to convert USTreasury Bonds and USAgency Mortgage Bonds into Gold bullion. Many would regard the event as debt writedown and liquidation, properly so. The Gold price would return to a proper price multiples higher, to reflect its value, but also to effect a powerful USDollar devaluation in the process. In the next phase, convert the EuroBonds, UKGilts, and Japanese Govt Bonds into Gold bullion. Essentially the BRICS Bank would convert much FOREX reserves into Gold, in particular from emerging nations. Then the widely held reserves in the many national banking systems would transition to gold with similar conversions. The Chinese could manage their own conversion of Chinese Govt Bonds into gold. The target Gold price of $7000 would be achieved rapidly, like in the course of 12 to 18 months in a grand reset.

Clearly to the savvy observers, it seems like a Force Majeure is the goal on the futures contract for Gold with all the naked short ambushes, with all the short contract covering by the big Anglo banks. The banker escape from contract losses comes with some heavy consequences. The outcome is a released gold price. The global demand has skyrocketed in recent months. Conversion from sovereign bond and quasi government bonds would be free to chase the gold price and bring about some equilibrium at a very high price, at least at $5000/oz, likely reaching $7000/oz, and possibly heading toward $10,000/oz. The Jackass would take that tradeoff anyday. The Force Majeure is worth it, especially if the bankers start to go into exile or to vanish in large numbers. Prosecution matters little if money is freed, since hidden forces would lead to many elite criminal bankers into a new world with strange surroundings.

◄$$$ BRAZIL OGX ENERGY FIRM IS GOING BUST (BASTISTA EMPIRE). PREPARE FOR ADDITIONAL INDIRECT EXCHANGE, AS USTBONDS WILL BE RETURNED TO SENDER. FOREIGN CAPITAL IS DESPERATELY SOUGHT TO MAINTAIN CONTROL OF THE OFF-SHORE BRAZILIAN ENERGY OPERATIONS. $$$

Bondholders of Brazil's OGX are urged to act quickly, since no income is generated. The buyers will appear, likely of Chinese shores. Look for USTreasury Bonds to be used in payments. The troubled Brazilian oil & gas company OGX is headed toward the biggest corporate debt restructuring in Latin America ever, a gigantic bankruptcy. The tycoon Eike Batista has been in the Western news lately, as his vast business empire crumbles. A feared default on OGX bonds is near. Be sure to know that a restructure of debt does not solve the problem, since the businesses are not generating sufficient revenue. The former crown jewel in the Batista X empire is hemorrhaging cash while struggling to achieve the promised levels of oil production at its offshore fields. The flow is not there. The corporate bonds plumb new lows. An out of court deal is sought to recoup some money from the $3.6 billion in OGX bonds that are outstanding. OGX has sold a 40% stake in one offshore field to Petronas of Malaysia. Furthermore, market chatter that Batista is seeking potential buyers of OGX's other offshore oil fields has left the impression that the company is being drained of assets.

The bondholders are in big trouble. The Brazil legal system might become an adversary for foreign players. It is noted not to be creditor friendly. The pooling of assets and liabilities of related debtors is not applicable under Brazilian law, which views each subsidiary as a separate entity. Complicating matters is that the largest Brazilian banks are involved at EBX, with its subsidiaries. The total outstanding debt at the Batista X companies is around US$10 billion, not including undisclosed liabilities at the holding level, according to FTI Consulting. New funding is being searched for eagerly. A voluntary debt exchange could be an option. Yet while this may help OGX reduce its cash drain, it may also prompt regulators to view the company as insolvent, which would trigger the termination of vital off-shore concessions. Nor does it solve the problem of how OGX will raise the funds to remain in operation. The corporation requires capital urgently. Enter the Chinese, who have had a swap facility in place for over five years with Brazil. Then comes the Indirect Exchange at work, where the Chinese dump more USTBonds. See the CNBC article (CLICK HERE).

◄$$$ ENERGY PRODUCERS ARE MOVING AWAY FROM SHALE SITES, SINCE THEY ARE GRAND MONEY LOSERS. EVEN EXXON-MOBIL ADMITS IT IS A LOSING VENTURE. DEPLETION RATES ARE HUGE, AND CASH FLOW IS CONSUMED BY NEW WELLS DRILLED. IT IS A PONZI SCHEME. $$$

Exxon Chief Executive Rex Tillerson broke from the previous company line that it was not being hurt by natural gas prices. He admitted by Exxon-Mobil is suffering losses from the weak price. At a meeting before the Council on Foreign Relations in New York, he said "We are all losing our shirts today. We are making no money. It is all in the red." The Shale gas projects are part of their gas fields. Furthermore, the Big Oil firms are slowly and quietly backing out of shale energy, so as to avoid rendering too much harm to their stock prices. The losses will be staggering. The average depletion rate of wells in the Bakken Formation (the largest site in the United States) is reported to be 69% in the first year and 94% over the first five years. The cash flow is eaten up by the new wells urgently needed to sustain production. In the next two quarters, friend and college SRSrocco says to expect some serious impairment charges coming. Then the word really gets out that the national project is a sham, a Ponzi scheme pushed by the USGovt. Expect those shale energy company stocks fall through the floor, and go worthless. Halliburton has the monopoly on fracking chemicals. See the PressTV article (CLICK HERE).

◄$$$ GOLDMAN SACHS DELAY TACTICS IN THE ALUMINUM WAREHOUSE BUSINESS COST THE USECONOMY $5 BILLION IN EXTRA COSTS. THE GREAT VAMPIRE SQUID IS BUSY, AND STILL EXPLOITS. NEW RULES ARE IN EFFECT TO ALLEVIATE THE BOGUS BUT COSTLY WAITING PERIODS. $$$

Wall Street's controversial warehousing businesses to about to face reform, if not already. Numerous are the victims in more Goldman Sachs fraud due to bogus waiting periods and higher premiums paid for quicker delivery in the aluminum industry. The giant vampire squid does whatever it wishes, in order to extort more profit from any and all financial markets it touches. The New York Times accused Goldman Sachs of costing the USEconomy an estimated $5 billion a year extra, by making their aluminum warehouse clients endure long wait times and jacked up prices for the metal. The bank owns the Metro Internatl Trade Services, a Detoit-based warehouse company which is a part of the London Metals Exchange (LME) system. Goldman, for its part, defended the business in a Factsheet released last month. The gaming of this metal market has been a boon to the bank, offsetting low yields for bonds elsewhere. According to Morgan Stanley, the problem has started to impact the price of aluminum in a big way. New rules are in place to force the Affected Warehouses to push metal out as soon as it brings new metal in, seen as a good first reform step. See the Business Insider article (CLICK HERE).

◄$$$ HSBC CLOSED BANK ACCOUNTS AT OVER 40 EMBASSIES, CONSULATES, AND COMMISSIONS, LEAVING DIPLOMATS AND THEIR FAMILIES STRANDED. IT GAVE VERY SHORT NOTICE. THE STRONGEST RUMOR IS ABOUT CURTAILING DRUG MONEY LAUNDERING, FROM DIPLOMATIC ABUSE OF CUSTOMS BYPASS, THE NOTORIOUS DIPLOMATIC POUCH. $$$

HSBC bank has told dozens of foreign missions in London that it will close their bank accounts, causing diplomats across the capital scrambling to find a new place to put their money. Havoc resulted. They cited reduced business risks. The Vatican's ambassadorial office in Britain, the Apostolic Nunciature, is among those affected. The bank actually said embassies were subject to the same assessments as its other business customers. Of the 40 countries involved, 16 are offices from African missions. HSBC stated that five criteria must be satisfied: international connectivity, economic development, profitability, cost efficiency, and liquidity. The London-based bank stated that the missions are considered like any commercial customers, at risk because they fear the money can end up in a money laundering or drug cartel. One diplomatic source suspected that HSBC feared being exposed to embassies after it was fined $2 billion by US authorities last year. See the BBC article (CLICK HERE) and the Daily Mail article (CLICK HERE).

Think cocaine and heroin in diplomatic pouches, and big cash movements in the return trip with the same pouches. Also, something strange is brewing, with a September 1st termination of government and corporate immunity from prosecution. The issue might not be so much about keeping people scared, but about keeping the appearance of cooperation. HSBC is trying to take the high road, appearing to cooperate on money laundering functions by closing down accounts that diplomats had abused in transporting drugs and cash. The new sheriff in town is attacking the bank syndicate. The same HSBC bank has been embroiled in numerous scandals, including LIBOR rigging, narco money laundering across Latin America and Asia, insider trading, tax evasion, and more. It is associated with the Rothschild family, sporting a nickname High Society British Crime. The bank is in the process of shrinking its staff. Last May, the HSBC Group announced a cut of 14,000 jobs which goes counter to any optimistic statements made by CEO Stuart Gulliver about the future perspective.

◄$$$ NORWAY MYSTERY ON FALLING KRONE CURRENCY MIGHT BE EXPLAINED BY DIVERSIFICATION AWAY FROM CURRENCY AND TOWARD GOLD BY OSLO MANAGERS. OR BY VICIOUS TINKERING BY ANGLO BANKERS IN VENGEANCE TO FORCE A HIGHER ECONOMIC COST ON NORWAY. OR BY A COMPLEX ADJUSTMENT PROCESS FROM THE CONVERGENCE BETWEEN THE BRENT OIL PRICE AND THE WEST TEXAS OIL PRICE. $$$

The Norwegian Krone has been weak versus the USDollar and British Pound in recent months. It has declined by 10% versus the GBP since March. The nation is loaded with huge oil wealth, although the output from the North Sea had been falling until a recent mammoth discovery. The sovereign wealth fund in Norway is worth at least $800 billion, a tremendous fund for a small nation of under 5 million people. One would expect the Norwegian haven would be safe refuge from the insane reckless USFed bond monetization. See the Titi Tudorancea bulletin (CLICK HERE).

The opinion of a savvy global consultant was solicited and honored. He said much, which follows, his comments, my edits. The Norwegians have and are refusing to have their wealth fund looted by the Anglo banker syndicate. They have managed to step aside from the London banker cabal of thieves and conmen, who have been put under terrible pressure in recent years. The Anglo offices pressuring Norway simply do not understand how the Scandinavians are wired. They are very sophisticated and tough people. Their currency is de-facto commodity backed, by Brent oil from the North Sea. They recently discovered more oil & gas than they already had in their proven inventory. One can rest assured that they do not disclose all of their data to the public. Norway is a very small country of only 4.8 million people. They have the largest standing army per capita of any country in the world. Norway cannot be held hostage by anyone. If their currency is pressured, it does not really matter to them.


A remarkable angle is at work, worthy of mention. Certain Norwegian technologies are of crucial importance to many countries, such as with many national energy industries. A Norwegian girl was recently jailed in Dubai in the Persian Gulf for her sexual behavior. When she was at the point to be sentenced for a couple of years in prison, the Norwegian Govt asked the authorities in the UAE how they intend to operate their offshore exploration and production platforms without STAT OIL engineers. The next day the girl was pardoned by the Dubai ruler. Never threaten or provoke a Viking. The recent weakness in the Norwegian currency issue is a non-issue. The bigger event was the Oslo violent incident in 2010, which was done by the British MI6 in retaliation for Norway not to supply the London banks with some odd $billions in cash infusions. The event made the Norwegians very angry.

EuroRaj offered an opinion. He made some solid points also. From a technical perspective, the NOKrone is a very illiquid currency. Therefore, the Boyz in London and New York can easily move it either way. Two theories why the NOKrone could have weakened. 1) USFed Taper Talk has gone away, since the NOK is the opposite of S&P stock index, and money has returned into the US stocks. 2) European growth and global growth is quite weak and hence oil exports might be weak, leading to somewhat lower current account surplus in Norway. Never lose sight of the fact that the giant  Norwegian Oil Fund is a mover and shaker in the financial world. Recall an episode in 2010 when a terrorist attempt was made in Oslo main offices. The Boyz were trying to force the fund to invest in US and British debt, but were rebuffed.


The Jackass believes that Norway is using some of the vast wealth stored in funds to purchase more commodities, including more Gold & Silver bullion. The conversion from a NOK base to energy & precious metals assets would bring about a slight decline in the NOK. However, it would also mean the NOK has a firmer backing, unlike the vaporous USDollar and British Pound currencies, both turned toxic. The Norway nation is the beneficiary of a $800 billion sovereign wealth fund. Maybe the fund is undergoing a diversification in defense against the USFed Weimar initiatives that destroy currencies and wealth through unlimited central bank bond purchases. Perhaps the officials in Oslo are shifting from NOK to gold on a large scale, which would make perfect sense, and be ahead of the crowd. Doing so would support Gold but pull down the NOK. Perhaps a side effect is in progress from the Brent convergence with the WTexas crude oil price, a grand event in itself. Very complex mechanisms had been disrupted in the Brent versus WTexas balance. A huge resentment should be expected from the Oslo terror incident, which had an MI-6 and Langley signature clearly. The Jackass was informed about British security responsibility within days of the event. Remember the Lone Gunman, a surefire telling signal of the security agency cloak. The Norwegians refused to assist the London bankers, who faced significant capital problems. The entire incident was vengeance by the Anglos, who surely have vowed to continue the pressure. The US-UK serve as the Axis of Fascism. Watch Norway embrace the BRICS movement and the trade settlement reforms.

◄$$$ THE INDIAN BOURSE SUFFERED A CRASH IN AGRICULTURE SHARES. ALTHOUGH SETTLED IN CASH, PROBLEMS ARISE. A CASH CRUNCH IN LIQUIDITY IS HITTING INDIA. $$$

The National Spot Exchange, which trades primarily agricultural commodities, suffered a crash in early August. All commodity exchanges in India are cash settled. Something happened which caused the shares of one of the exchanges (like NYSE, Deutsche Bourse) to crash. By shares is meant the Exchange Traded Funds such as DBA (Deutsche Bank for Agriculture). A cash liquidity problem has hit the Indian markets. See the Bloomberg article (CLICK HERE).

◄$$$ AUSTRALIA UNVEILED A TAX LEVY ON BANK DEPOSITS. ALTHOUGH SMALL IN SIZE, IT OPENS THE DOOR TO A SEQUENCE OF INCREASES WITH NO VOICE FOR ACCOUNT HOLDERS. $$$

Australia has unveiled a tax levy on some bank deposits. They wish to raise money towards a fund designed to safeguard against a banking collapse. Deposits up to A$250,000 will pay a levy of 0.05% in tax starting January 2016. It will be imposed on banks and not account holders. But banks have warned costs may be passed on to customers, as usual. The move comes as the government warned of slower economic growth and a much bigger budget deficit than previously forecasted. Colleague Craig McC of California added how the disastrous policy which will have significant blowback to the fiat system. Expect later a response to additional hikes of capital flight, increasing black market activity, migration from fiat paper money into precious metals, and more. See the BBC article (CLICK HERE). The Jackass take is to stress its small size. At 0.05% (as in 1/20-th of 1%), then it comes to $5 per $10,000 held on deposit. The concept is bad and the trend is rotten, but this tax is less than miniscule. The monthly service fee on a typical account is $10. Given the trend begun, the door is opened to future bank tax hikes every year.

◄$$$ THE KEYSTONE PIPELINE WILL BE BUILT. THE CANADIAN OFFICIALS ARE ISSUING VEILED THREATS TO THE USGOVT OFFICIALDOM. A RECENT TRAIN ACCIDENT WITH 72 CARS FILLED WITH OIL BLEW UP AFTER BEING DERAILED, KILLING 47 PEOPLE IN QUEBEC. THE ACCIDENT CLEANUP COSTS WILL BE CLOSE TO $1 BILLION. LOOK FOR THE WHITE HOUSE TO APPROVE THE KEYSTONE PIPELINE SOON, UNLESS AMBASSADOR BUFFET BLOCKS THE MOVE. $$$

On July 6th, a Montreal Maine & Atlantic train carrying 72 tank cars filled with oil exploded after its brakes apparently failed, sending it overturned railcars into the small Quebec town of Lac-Megantic, where it exploded. In the conflagration that followed, an estimated 47 people were killed. The rail freight for crude oil has soared on Canadian railways from 500 carloads of crude oil just four years ago to 140,000 carloads annually this year. That is a 280-fold rise. The Canadian ambassador to the US has warned President Obama if he does not approve the controversial Keystone XL pipeline, then he can expect similar oil trains and tanker trucks to enter the United States. The choices are train or pipeline, a simple matter really. In the wake of the Lac-Megantic tragedy, Greenpeace Canada recommended that the federal government order an immediate ban on shipping oil in the older type 111A tanker cars, which the Canadian Transportation Safety Board has identified as susceptible to spills. The group also recommended independent safety reviews to be conducted of all means of hydrocarbon transportation.

The Transport Canada regulators issued a series of emergency orders, some of which incorporate the Greenpeace Canada suggestions. Effective immediately, at least two crew members must work trains that carry dangerous cargo. Also, no locomotive attached to a tanker car filled with dangerous materials can be left unattended on a main track. The safety record of Canadian railways is actually improving on trend over the years. The cost of the cleanup in the Quebec town is estimated between $500 million to $1 billion. In order to prevent such a debacle in the US, Ambassador Doer believes that the Obama Admin will approve Keystone XL. See the Zero Hedge article (CLICK HERE). The Keystone Pipeline delay is believed to be motivated by profiteering from the Warren Buffet railways, which carry oil in the same manner as in Canada.

◄$$$ BANK OF ENGLAND REFUSED COMMENT ON A HUGE DISCREPANCY IN CUSTODIAL GOLD REPORTS. BANK OF ENGLAND MAY HAVE DIRECTED RELEASE OF 1300 TONNES OF CENTRAL BANK GOLD IN PRICE SUPPRESSION SCHEMES EARLIER THIS YEAR. $$$

Based on recent data from the Bank of England, it appears the venerable bank syndicate criminal fortress has permitted the lease of 1300 tonnes of central bank gold from their vaults. The drainage took place during a four month period from March through June. The conclusion can be made by inference, based upon the officially reported inventory level at the end of February and the stated inventory on the bank website at the end of June. Alasdair Macleod of Gold Money believes that the removal and lease of gold bars from its custody was done in support of the gold price smackdown done this spring. The Bank of England refuses to explain what appears to be a huge discrepancy in its gold accounting. They are actually accountable to nobody. See the Cafe Americain article by Jesse (CLICK HERE). One can only wonder whose gold might have been improperly used, possibly the Queen's. Perhaps it was gold from official accounts owned by Portugal, Spain, or Greece. The irony is thick, as the gold ambushes in April and June did not net much physical gold bars as a result of margin calls. If not absconded from European central bank allocated gold accounts, then the Queen is the loser from the ambushes. No respect given by the Jackass to the entire inbred royal family, replete with pedofiles, idle rich, and twisted genetic specimens.

◄$$$ NORTH AFRICAN INDUSTRIAL DEVELOPMENT HAS BEEN SABOTAGED AND SIDETRACKED BY THE USGOVT TAMPERING. TUNISIA WILL ERUPT SOON NEXT. EUROPEAN FIRMS HAD GRAND PLANS TO EXPAND AN INDUSTRIAL BASE TO NORTH AFRICA. THE ARAB SPRING INTERRUPTED THE STRATEGY, ALL PLANS ARE ON HOLD. THE USDOLLAR IS AT HIGH RISK TO BE DISCARDED OF BY EUROPEAN INDUSTRIAL ELITE AND THE SAUDI DISORDER. $$$

The following came from The Voice, who has an ear to the ground on numerous venues, markets, and economic developments. The United States had its bizarre NAFTA for exploit of Mexican labor at border factories in the 1990 decade. Europe has its plans for exploit of North African cheap labor, but also vast minerals. An ulterior motive was present for the Arab Spring disruptions. Apart from stealing Qaddafi's gold account held in London, and the incendiary interference under the banner of exporting democracy, another motive was present, and still is at work. The USGovt started the disorder in Northern Africa in order to derail a European heavy industry development master plan for the Mediterranean basin. Chalk up one more major area of anger and disgust directed at the US helm and syndicate crew, this from Europe. The power elite in certain European countries, plus Russia, are extremely angry. The plan called to set up heavy industries along the coastline of the North African countries bordering on to the Mediterranean Sea. They were to consist of steel plants, chemical plants, huge LNG ports, and petro-chemical plants (including refineries), huge food processing plants, deep sea ports, advanced rail facilities (roll on, roll off), and cargo airports. The goal was to utilize the ample African natural resources and ample Middle East energy, in addition to cheap labor and untapped minerals.

The expansive industrial complexes eventually will be built, and go under European control. The US-based obstruction must be cleared from the pathways. The planning and construction timeframes would be short. By comparison, Europe requires an average of 15 years to secure all necessary permits for the construction of large industrial manufacturing complexes. The North African location has advantages with the discounted natural resources feedstock and cheap labor costs. The proximity of those heavy industries to the European mainland manufacturing plants is ideal. This modernization strategic plan and de-facto re-industrialization of Europe would turn the continent into a powerhouse with few rivals. Russia and the Black Sea component is integral to the master plan, begun from drawing board to hatching since 2005. Italy and Greece, as well as Spain and southern France, even the Adriatic sea countries (Balkans), are all components of the strategic plan. The above is part of the construction of the Eurasian Trade Zone. The unilateral drive to create democratic puppet nations under USGovt control strings has interfered with the reform of Europe. Important elite players are extremely angry. Look for them to participate in accelerated manner with the BRICS Bank and the Gold Trade Settlement. Their secondary motive will be to push the United States off the Western stage.

Word from The Voice, who has excellent British-Arab security connections, is that the next blowout is coming in Tunisia. Over a year ago, the leader escaped with loot in the form of gold bars to Malta. The people are fed up with the Muslim Brotherhood thugs, an armed gang of violent incendiaries who operate under USGovt funding. He wrote, "I am afraid that the entire Middle East and Northern Africa will soon be on fire, as will be a number of Sub-Sahara countries. Egypt is burning, soon to erupt in civil war, and a full fledged civil war has begun across North Africa. All North African countries are going up in flames, if not already. Such is the outcome of the Arab Spring promoted by Washington. Egypt being the most populous with 100 million people, is the most important nation to watch, along with Saudi Arabia on the backside of the Arab world, on the corner of the Persian Gulf. The new leader from the military coup, General Sisi is crushing the Muslim Brotherhood right now. He has the Egyptian people behind him. Tunisia is a similar situation. The nation Lybia is screwed up beyond anything that could be described. The entire Middle East will eventually be on fire. It is only a question of time." The ultimate victim to the Arab Spring could be the USDollar, from European industrial elite vengeance, and from the fall of the House of Saud.

## COMEX SHELL GAMES TO AVERT FAILURE

◄$$$ GRANT WILLIAMS DESCRIBES THE SMOKING COMEX GUN. THE OFFICIAL GOLD VAULTS ARE BEING DRAINED TO MANAGE THE DEMANDS FROM ALL CORNERS OF THE WORLD. THE GERMAN OFFICIAL REPATRIATION REQUEST CHANGED EVERYTHING. $$$

An excellent review of the evidence was given to expose the banker cartel. Grant Williams is thorough. The fractional banking system also includes the gold bullion bank system, as multiple claims are made on the same bullion bars. Gold is leased from the central banks, but appears on both balance sheets of borrower and leasing bank. That partly explains the over 40,000 tons missing. Leased gold is used for investing in yield bearing instruments across the world by financial firms. Many central banks and bullion banks want their gold returned, as suspicions have risen. In August 2011, Chavez of Venezuela demanded their national 99 tons of gold returned from the Bank of England. Mexico caved in the year before, accepting gold certificates. The Venezuelan gold was delivered by November 2011, with a parade in Caracas of armored cars. In the following months, the gold price spiked to $1900 per ounce, believed to be a direct response to the induced shortage from the sudden demand for the repatriation. Ghana and Ecuador followed suit with Venezuela, but the Ghana leader was murdered. To be sure, Africa has fewer spotlights.

The Bank of England and New York Fed used to serve as clearinghouse during the past Gold Standard, often using mere book entries to account for sales handled within their walls, thus the storage sites. In January 2013, the German Govt demanded 350 tons to be repatriated from New York and Paris, a small part of the total German gold reserves. The demand was made only two months after a Bundesbank official gave a speech of trust in New York, a bootlicking exercise to the syndicate that did not go over well back in Germany. One month later, the Germans repeated the formal request for the repatration of their gold. The helm in New York and Paris responded by announcing that the gold would be returned over a seven  year period. Then the Mali war was mysteriously launched, under false pretenses, with volume exactly equal to the German demand over the same seven years. Conclude that Germany is more important than Venezuela.

In the Gold market, stop losses had been set in huge volume at the $1600-1650 range of support. The banker cartel eyed the target. Focus came to gold Registered for Delivery, as gold shifted in class from Eligible to Registered. A GLD basket consists of 10,000 shares, equal to 1000 oz, valued at $1.3 million. It is a minimum requirement for redemption, almost exclusively for the big US and Anglo banks. A whopping 30% of GLD gold held in inventory has been removed by big investment houses in recent months. Redemption is done through authorized participants, a process blocked for individuals. Some recent precedent has been seen where individuals have been denied delivery on their legally binding contracts, even after satisfying the rigorous requirements. The privilege is only for big banks to harvest its gold.

The GLD gold vault inventory has gone from 80-85 metric tons to about 20 tons in recent months. The COMEX gold vault inventory has gone from 1300 tons to about 900 tons at the same time. However in contrast, the SLV and COMEX silver vault inventory has risen gradually. The SLV silver inventory has risen from 740 tons to 1400 tons over the same timespan. The COMEX silver inventory has risen from 9750 tons to 10,500 tons over that time. A major gold short squeeze is in progress at the COMEX. Grant Williams anticipates a vicious powerful upward bounce in the Gold price. A mad massive scramble in underway to return gold to the Bundesbank. Many other central bank allocated accounts must also be returned. Factor in all the bullion bank fraud and deceptions, and therefore the Voice's claim that over 40,000 tons of allocated gold have been misused begins to make sense. See the YouTube video with host Michael Maloney (CLICK HERE).

◄$$$ THE DANGEROUS RISE OF PAPER CLAIMS TO GOLD & SILVER, A HOUSE OF CARDS CERTAIN TO FALL. THE OFFICIAL COMEX VAULTS ARE FAST BEING DEPLETED. A BIG EVENT IS NEAR. $$$

Again, Grant Williams of Vulpes Investment Mgmt puts a spotlight on the COMEX. The demands are rising fast, while the supplies are quickly vanishing. Usually that means a major disruptive event is on the horizon closeby. A picture tells the story. Notice the registered gold stocks at the COMEX, in a sudden dangerous decline since the early months of 2013. Notice the Open Interest (called paper claims) which has tripled since the beginning of 2013. A powerful run on available gold inventory in underway, well along, certain to create a major event, possibly a default. See the interview of Williams on King World News entitled "Default Feared: Gold and Silver Paper Claims Hit All-Time Highs" (CLICK HERE).

◄$$$ THE COMING COMEX SHUTDOWN FROM FAILURE. USFED BOND PURCHASES WILL CONTINUE, EVEN INCREASE. THE PRECIOUS METALS PRICES ARE DUE FOR A REBOUND. THE JUNIOR MINING FIRMS ARE SEEING MERGER ACTIVITY, WHILE BANKS REQUIRE FORWARD HEDGE SALES TO LOCK IN THE CHEAP METAL PRICES. MAJOR PLAYERS ARE DEMANDING DELIVERY OF GOLD, WHICH IS BREAKING THE COMEX DOWN. ASIAN ENTITIES ARE SELLING USDOLLARS IN FAVOR OF GOLD. A MAJOR EVENT IS COMING, MAYBE MULTIPLE EVENTS, THAT WILL TRIGGER A COMEX MARKET FAILURE, AND A SUDDEN EXPLOSIVE RISE IN THE GOLD & SILVER PRICES. $$$

Keith Barron made an interview where he touched on numerous important points. The following are his thoughts put into prose. After the Taper Talk at the USFed has died down, the Gold & Silver prices are rallying again. The reality is that the stock and bond markets will crater if the USFed remains steadfast about tapering, in a fragile situation. They cannot stop buying $85 billion of USTreasurys every month. Not only will the QE continue, but at some point it will have to be augmented to handle the extra supply brought forward. Notice the non-existent response by the USEconomy from the $trillions dumped. At this point the central planners are very afraid of things beginning to shift toward deflation, recession, even depression. Keep watching the junior mining firms, which have seen a recent skein of merger and acquisition activity, as juniors are gobbling juniors. Barron expects a big bounce in the sector after Labor Day. The Gold & Silver prices are not going to stay down for much longer. Another phenomenon is being seen, the revival of hedging. The investment bankers are driving this switch toward hedging. The banks refuse to lend money out unless the companies are committed to hedge with collateralized forward sales. The nasty rub is that these companies are going to be selling their forward production at dirt cheap prices. They are certain to miss the massive price advances in both the Gold & Silver markets soon to arrive.

Very big upward movements in prices will come in Q3 and Q4 of this year. The impetus will be some major event, like a failure of a large European bank, a default in sovereign bonds by one of the PIIGS countries, a terrorist attack, or some other natural disaster. The trigger will ignite this imminent move up, sure to involve substantial repricing of both Gold & Silver. One possible trigger may turn out to be a failure of the COMEX, whose inventory is suffering from acute shortage of physical gold, no longer available for delivery. The gold bars are going to Asia in heavy volume. Notice the price action in the USDollar as the Asians are dumping it in favor of Gold. They are also paying a premium to obtain physical gold in return for no delay in shipment. The major participants are showing a loss of faith in the paper Gold & Silver markets, as if they expect a COMEX failure. The inventory abuses have spread to the aluminum market, where Coors (the beer company) is struggling to secure the metal to package their product. Hence, focus has come to warehouse practices, where Goldman Sachs is present as the vampire squid in exploit.

Barron concluded, "I firmly believe there will be a point in the future when this sort of event triggers a run on the COMEX. More and more entities are going to ask for physical delivery. This will have the effect of breaking the COMEX and creating a failure. When that takes place, you will see an explosion in the prices of Gold & Silver that will literally shock market participants around the world." See the two-part King World News interview of Barron (CLICK HERE and HERE).

◄$$$ THE GLD FUND IS COLLAPSING ITS SHARES. ITS GOLD BARS ARE BEING SHIPPED DIRECTLY TO ASIA IN HEAVY VOLUME. WORD HAS COME FROM AN SPDR GOLD TRUST LOGISTICS OFFICER, DIRECTLY FROM THE INNER WORKINGS OF THE GLD FUND. CONDITIONS FOR A MASSIVE SHORT SQUEEZE AND SUDDEN UPWARD MOVE IN THE OFFICIAL GOLD PRICE ARE NEAR. $$$

Tekoa da Silva does great work at Bull Market Thinking, having relocated to Brazil. The Jackass did several interviews with him in 2010 and 2011. He had a unique opportunity to talk to a source in the bullion bank business, in particular the logistics side. The insider deals on a direct basis with the shipping desks at the GLD fund, formally known as the SPDR Gold Trust. He was surprisingly liberal in sharing thoughts about the operations, which can best be described as devious and scummy. He has been watching a primary GLD custodian, probably HSBC. He commented on the high volumes in movement to Asia, and the likelihood of a sudden rebound in even the official gold price. He said "GLD is collapsing in terms of the number of share issuance, and is being redeemed. We are hearing from my end that the GLD main custodian has been collapsing it and redeeming it, and that Gold is just being shipped via their shipping desk directly to Asia. It is quite clearly a major establishment using their shipping desk to ship gold bullion, and potentially having it re-smelted down in Singapore, Hong Kong, etc. The gold is moving. Anything that can go down as hard as gold [price] has, can obviously have a dramatic short squeeze at some time. At the end of this market, you will have a ridiculous squeeze." The guest is referring to abuse of the GLD fund inventory of gold bars being sold in Shanghai as part of the arbitrage described by the Hat Trick Letter on a few occasions.

To be sure, if a highly publicized, highly disruptive, and highly profitable upward move in the gold price was near to reality, the current events of high demand and vanishing supply would fit perfectly in such a scenario. On the accounting side, the COMEX Gold Warehouse Stocks have declined by roughly 4.5 million ounces so far this year. In dollar terms that comes to $5.89 billion in gold that has fled COMEX depositories. It is safe to assume, based upon the GLD fund logistics inside word, that a majority of the gold bars have found their way to China. See the Bull Market Thinking article (CLICK HERE).

◄$$$ ALASDAIR MACLEOD TALKED FREELY WITH MAX KEISER ABOUT THE GRADUAL COMPLETE AND TOTAL BREAKDOWN OF THE COMEX MARKET. THEIR INVENTORY IS GOING EMPTY. DELIVERIES ARE NOT BEING MADE. THE BULLION BANKS ARE UNDER PRESSURE TO REPLENISH STOLEN ACCOUNTS. PREMIUMS ARE PAID FOR GOLD IN SHANGHAI. THE GOLD PRICE IS BEING SUPPRESSED TO SUPPORT THE VAPOROUS CORRUPTED CURRENCY SYSTEM. $$$

Alasdair Macleod appeared on an interview with the colorful and irrepressible Max Keiser to discuss the physical Gold market. It seemed that Macleod is more at liberty to discuss the intricate and illicit occurrences than on his own homesite at GoldMoney. He covered many important areas. The following are his thoughts and perceptions, but my edits into prose. The Gold market transfer system has turned unclear and murky. Delivery from Shanghai has virtually ceased, with an end to the physical market there. Movement had been at 150 to 300 tons per month, clearing in two directions. The Hong Kong-based refabrication (recasting) has also ceased. Delivery from the COMEX is from an unknown origin. So suspect great gimmicks, shady activity, and nasty forcible actions. Even the COMEX denies the validity of their own data, which is unprecedented. We must conclude that nothing is valid on data.

At the COMEX, the typical activity has for years seen over 95% of contract settlement to be pushed into rollover for the next month. The COMEX actually sees between 20 and 40 tons facing potential delivery each month. No evidence suggests that delivery takes place on a majority of contracts. It is a paper factory. Neither the COMEX nor Regulators are clear. The bigger story is the SPDR Gold Trust (aka GLD Fund). Its gold inventory exits in large volumes, but the destination is usually unknown. The potential destinations are 1) Authorized Participants, meaning big banks with permission to do big raids of their inventory through shorted GLD shares, 2) Bullion Gold Banks taking the bars who urgently need them (like for replacing misused allocated accounts, and 3) Investors who do not believe in the Gold bull market. The indications are that #1 and #2 are dominant, but not #3.

Premiums in the Gold price are seen in Hong Kong, Shanghai, and Dubai, but they are no longer large like in late April. The Shanghai premium can be in the $40 to $50 range per ounce, creating arbitrage potential for profiteering. Regard the premium as reflecting the higher risk of delivery not to happen from other exchanges, from growing distrust in the gold market. Generally the Gold price is suppressed to support the entire fiat paper currency system. The Arab nations recycle their oil surpluses, buying gold in large quantities as a hedge against the USDollar and USTBond risk. There is no better hedge than Gold in protection against currency debasement and monetary inflation. The US population usually puts savings into the stock market, with incentives to do so. Easterners usually put savings into Gold & Silver bars and coins. See the interview video on 24HGold (CLICK HERE) or see the Brother John article (CLICK HERE).

$$$ SILVER WILL VANISH IN OFFICIAL VAULTS NEXT. THE COMEX SILVER VAULTS HAVE NOT BEEN REDUCED SHARPLY, LIKE THOSE OF GOLD. EXPECT THE SILVER VAULTS TO BE DEPLETED VERY SOON, SINCE DEMAND IS HIGH AND THE ASIANS ( CHINA & SINGAPORE) REGARD SILVER AS THE NEW GOLD. $$$

The process of emptying the COMEX silver vaults could be next on the agenda. The underlying dynamics for Gold & Silver are almost identical, both being monetary metals. The Gold vaults have suffered severe depletion, hardly a mere Exchange Traded Fund reallocation, a moronic reason often given. Chinese destinations, and Singapore too, have been the recipients of much gold heading eastward. The phenomenon seen with Gold has yet to occur with Silver, at least not yet. Forces are in place to push the Silver bars eastward very soon, due to availability and gold tax levies. Bloomberg has been reporting a huge silver demand from the plebeians of Asia, who regard silver as the new cheaper gold. The vault demands of Singapore, and the Chinese precious metal warehousing ambitions will work to pull silver like a grand magnet. See the Zero Hedge article (CLICK HERE).

◄$$$ JPMORGUEN REFUSES TO DELIVERY AUGUST GOLD. INSTEAD, THE MAJORITY GOES INTO THE JPMORGUEN WHORE ACCOUNTS. THE PATTERN SHOWN FIRST IN JULY CONTINUES. ON SOME DAYS, NO CONTRACTS ARE DELIVERED UPON, ALL GOING TO THE BIG BANKS IN REPLENISHMENT. $$$

An early August snapshot revealed that JPMorguen continues to hog the available supply released from the COMEX. Witness blatant contract fraud and illicit dominance in the Gold market. The pattern that started in June continues two months later. JPMorguen is hoarding the gold that exits from the ramps for a simple reason. The big bank has none and cannot meet contract delivery requirements. On August 7th, a total of 245 delivery notices were issued for August gold contracts. Of the total, a ripe 233 deliveries were stopped by JPM, all of them directed into the JPM house account. The other 12 went into the customer accounts of Barclays, ABN Amro, and Merrill Lynch. This is basic contract fraud, opening the door for lawsuits, if  not legal prosecution. None were given to clients holding valid contracts. On the five active days of August cumulatively, data month-to-date showed 2515 deliveries for August had been completed. Of the total, a ripe 1963 deliveries (78%) have gone to JPM. Specifically, 1730 deliveries (68.8%) from that entire batch have flown directly into the JPM house account. The fraud and violations are blatant and in the open. Of course, the big broken corrupt bank would claim that they reserve the right under certain conditions to do exactly that, written in the fine print of the contract. Let that defense be heard in court.

◄$$$ JPMORGUEN IS SERIOUSLY FORAGING FOR GOLD FROM ITS OWN ILK. THE BIG BANK APPEARS TO BE TAPPING BOTH SCOTIA MOCATTA AND HSBC FOR GOLD BARS. THE TWO SQUIRES EVEN SWAP GOLD BETWEEN THEMSELVES, DUTIFUL TO SERVE THE JPMORGUE GODFATHER. THESE BANKS HAVE EVEN APPEARED AT THE THE SPROTT GOLD TRUST WINDOW FOR GOLD BARS. THE SEARCH FOR GOLD SUPPLY HAS TURNED CRITICAL FOR THE BIG BANK. THE SHORTAGE IS BEYOND ACUTE. THE TERM GOLDEN MUSICAL CHAIRS COMES TO MIND. $$$

On back-to-back days in early August, the JPMorguen monster saw fit to knock on the door of two major players in the bullion bank business. Both coughed up significant amounts of gold bars, on bended knee. On August 6th the target was HSBC, and on August 7th the target was Scotia Mocatta. They must regard the demand as a polite gold procurement request, which if refused, would leave them subject to serious vengeance of violence, like a fire or a murder, maybe just damaging losses, or pulled credit lines. Lehman Brothers is still remembered as the targeted killjob. Note that Scotia Mocatta is the second fullest New York commercial gold vault, sure to be tapped again and again. The JPM gold vault dropped to another record low of only 380,000 ounces, pressing them into action. The monster must feed. They appealed directly to the COMEX members. Before long, the victims will not answer the call. They will soon have no more unencumbered gold to share.

The JPMorguen monster is moving down the list in orderly fashion. After hitting HSBC for 6445 ounces (6.45 metric tons) on one day, they hit Scotia Mocatta for 20,189 ounces (20.2 metric tons) the next day. The HSBC release came from eligible inventory, whereas the Scotia release came from registered gold held in inventory. The lateral movement of gold is without precedent between two vaults of major participants, without a customary intermediate warrant detachment step. It indicates extreme conditions, and imminent default without action and movement. Furthermore, HSBC shifted 43.4 metric tons from Registered to Eligible, making room for further gold requests by JPM, more withdrawals under pressure. The JPMorguen requests are direct solicitations, the result of the big broken bank running around town begging for gold with a tin cup in hand. See the Zero Hedge articles (CLICK HERE and HERE and HERE). Big kudos to Tyler Durden and his intrepid cohorts. They must have very formidable firewalls to avoid unwanted virus attacks. The two charts are Smoking Guns of vault depletion at the COMEX, when the musical chairs are moving!!

The JPMorguen overlord cannot be refused, as gold is sourced, only to be shipped out rapidly. The players are locked in a golden musical chairs game that awaits the end of the music, when they have no more gold to seize, steal, or rehypothecate. To provide the squire service to JPM, the custodians at HSBC had to concurrently obtain a comparable infusion of gold from Scotia Mocatta, acting in dutiful service to the great morgue. All three major vaults proceeded to convert tens of thousands of ounces in and out of registered in a totally uncoordinated fashion. The conversion is seen in the tally at the bottom of the next chart. The intravault activity is very clearly shown above. The scramble resembles muscial chairs, to source the gold, to avoid a default, to keep the fiat currency charade going. The bankers are running out of time, and music. Their credibility is long gone. Even the mainstream news is beginning to comprehend the fraudulent game in support of the entire monetary system.

As footnote, Jesse at the Cafe Americain also noticed drainage out of PHYS, the Sprott Gold Trust. Drainage out of PHYS is a real sign of shortages. Eric Sprott has a very good vantage point from his office, to notice who makes the demands, and where the physical is moving to.

$$$ JPMORGUEN IS SELLING ITS GOLD VAULT AT 1 CHASE MANHATTAN PLAZA. RUMORS SWIRL AS TO THEIR EXIT OR WHETHER THE VAULT IS EMPTY. THE BANK EXECUTIVE CREW MIGHT SENSE A MASSIVE GOLD MARKET RALLY COMING, IF THEY ARE SMART. $$$

The property is known as 1CMP, as in 1 Chase Manhattan Plaza. With the JPMorguen gold inventory at the COMEX plunging to record lows, it could be that CEO Dimon has no usage or need for an empty gold vault. Bloomberg reports that JPM is seeking to sell its entire 1CMP tower. Maybe the sale proceeds will help to plug some derivative losses. As part of the property, the world's largest commercial gold vault is housed five stories below street level. Keep in mind some intriguing and credible reports, like from Ted Butler, which claim that JPMorguen has cornered the gold market on the futures contract arena to the long side. Perhaps the observers, the mere mortals among us, that the 1CMP sale could indicate that Blythe Masters and Jamie Dimon can smell a powerful Gold market bull market resumption, as in a manic third phase. Maybe they have decided to abandon the short manipulation game while they can. See the Silver Doctors article (CLICK HERE).

◄$$$ OBSERVE THE INCREDIBLE SHRINKING COMEX GOLD WAREHOUSE INVENTORIES. WHAT KEEPS THE BANKER GAME GOING ON THE PHONY MONETARY SYSTEM WITH TOXIC PAPER BACKING AND A VAPOROUS FOUNDATION IN DERIVATIVES IS PHYSICAL GOLD BULLION, THE BARS IN BANKS. THEY ARE RUNNING OUT OF GOLD METAL QUICKLY. ANOTHER FEW MONTHS AT THIS PACE, AND GAME OVER. $$$

Since the end of April this year, the Registered gold held at the COMEX depositories has collapsed from a total of 2,147,398 ounces to just 852,930 ounces on August 13th. That is a collapse of 60% of the Registered gold. Such a pace is not sustainable. A straight line extrapolation of this rapid depletion would indicate a total COMEX depletion (empty vaults) in 2.33 more months. From May 1st to mid-August is 3.5 months, with 60% depletion. So another two thirds multiple to go in elapsed time period, equaling 2.33 more months remaining before full Gold depletion, leaving the world at a drop dead timeframe of the last week of October. D-Day for Gold is the end of October!!

The entire COMEX vault system is giving a top view scrutiny like a prosecutor seeking an indictment by SmartKnowledgeU on the Zero Hedge weblogs. Much excellent information can be plucked from such weblogs. The Silver inventory is not similar at all. He wrote, "JPMorgan's Registered silver holdings, just since late April, have been drained from 17,848,170 ounces to 9,940,577 ounces, a massive 44% loss, while their eligible silver has increased a massive 61% from 18,094,433 ounces to 29,065,774 ounces. JPMorgan, during this raid, has conscientiously converted millions of Registered silver ounces into Eligible silver ounces. Why would they do this? While there may certainly be more complex answers to this question that what meets the eye, a simple answer would be that JPMorgan wishes to cut their inventory of silver available for delivery and is limiting their exposure to losses of silver inventory after losing so much of their gold inventory." See the Zero Hedge article by SmartKnowledgeU as guest (CLICK HERE).

Make an assumption that no more Registered Silver enters into the COMEX system. Over a 3.5 month period, the Registered Silver at JPMorguen vaults has fallen by 44%. So another 1.27 multiple to go in elapsed time period, equaling 4.45 more months remaining before full Registered silver depletion. The world should see a drop dead timeframe on supply chain for silver by the end of December. D-Day for Silver in supply chain is the end of December!!

◄$$$ A DERIVATIVES ACCIDENT IS AT THE DOORSTEP. THE WHITE HOUSE MET WITH FINANCIAL REGULATORS IN AN EMERGENCY MEETING. THE RUMBLING HEARD IS THE ENTIRE STAGE FALLING. A 110 BASIS POINT MOVE UP IN THE LONG-TERM BOND YIELD WILL CAUSE EXTREME DAMAGE SOON, IF NOT ALREADY. $$$

An interest rate derivatives explosion might be imminent, according to John Embry of Sprott Asset Mgmt. An emergency meeting took place on Tuesday August 20th with key bankers and officials of major USGovt financial regulatory agencies. The topic is a guarded secret, not fit for the unwashed people or mere mortals. The topic is suspected to be the rising danger of an explosion of derivatives (in particular of interest rates) as the officials lose control of the bond market. Since early May, the 10-year USTreasury yield has risen 110 basis points, a sufficient amount to cause considerable destruction of entire structural edifices. Apparently the Taper Talk by the unqualified economist sitting as USFed Chairman caused a series of dominos to fall. The foreign dumping of USTreasury Bonds is accompanied by bond funds like PIMCO and big US banks selling USTBonds en masse also. The hidden risk is the big US banks reversing their carry trade, unwinding the highly leveraged USTBond futures contracts and introducing high risk convexity into the cauldron. A major bank loss event is near. See the King World News interview (CLICK HERE).

◄$$$ A VETERAN GOLD TRADER IS STILL WAITING FOR THE GOLD ON A CONTRACT, AFTER EIGHT WEEKS. SUCH LONG DELAYS HAVE BECOME THE NORM. THE COMEX VAULTS CANNOT SUPPORT THE DELIVERY REQUIREMENTS. THE END OF THE GAME IS NEAR. $$$

Bloomberg News actually permitted a televised interview of Mihir Dange, co-founder of commodity trading firm Grafite Capital. He told his story, how his company bought physical gold eight weeks ago at the COMEX with a formal gold contract. However, no delivery has come yet. Dange claimed there is a huge run on physical gold within the bullion market. That is a reality and an understatement. He discussed the backwardation concept, the inversion whereby current spot Gold has a higher price than the future price. Besides the alarming detail of long delays, it is remarkable that the financial news network would feature such an embarrassing story. In their own wallowing ignorance, they probably are not aware that they are describing a COMEX defaulting market in progress. See the Bloomberg interview (CLICK HERE).

◄$$$ LONG DELAYS AT THE COMEX FOR GOLD DELIVERY HAS BECOME THE NEW NORMAL. PLAYERS ARE REMOVING THEIR BARS AT THE COMPANY LEVEL AND INDIVIDUAL LEVEL. $$$

George of Chicago, my COMEX logistics source, shared a perspective from a man he has known for 20 years, a trusted colleague. He passed word on JPMorguen practices before any GATA publicity on long delays. He is in a position to absolutely know the inner workings of COMEX, since he is a cog in the logistics system. He said the following one week ago. JPMorguen is hogging shipments of between 95% and 99% of the last batch of gold deliveries. The total volume is well over 2000 bars. Some parties have not requested the physical delivery in removal, but they have specifically identified bars, which of course should be there. They are turning suspicious about whether their gold bars are still in the vaults. The man has a few gold bars left there in the official vaults that he intends to pull out. He must return to Chicago to retrieve them, but do so anonymously. He does not wish to have a visit by Brinks at his home. The insider guy has been involved in logistics, watching the operations for over 30 years, working for several big professional clearing firms. He knows what is happening, and has seen it all.

The Voice pitched in regarding the long waits for gold delivery from COMEX. He wrote, "They can wait until the cows come home for their delivery. There is such chaos now within the system that all will be blown wide open not before long. There is so much that is incredibly strange, broken, and corrupted going on that no one will take notice. Once the masses try to reach for the lifeboats, they will find out there is no room for them. Reality will soon finally catch up with them." The lifeboats are Gold & Silver bars and coins in your own personal possession.

## SERIOUS DISTRESS AT MINING FIRMS

◄$$$ FIRST MAJESTIC HELD BACK 700,000 OZ IN SECOND QUARTER SILVER SALES DIRECTLY FROM MINE OUTPUT, CITING LOW PRICES. THE STRIKE AGAINST COMEX HAS BEGUN (NOT REALLY, JUST WISHFUL THINKING). OTHER MINING FIRMS MIGHT FOLLOW. THE KEY SILVER PRODUCER HAS FOREGONE ALMOST ALL PROFIT FOR THE QUARTER. FIRST MAJESTIC MIGHT BECOME THE LEADER OF A RESISTANCE MOVEMENT AGAINST THE COMEX. $$$

The decision to suspend the sale of 700,000 ounces of silver in the second quarter because of low silver prices was the main factor behind the plunge in net income at First Majestic Silver. It was registered at $200,000 in Q2, down by 99% in total. The operations are strong, however. Their silver production and silver equivalent production soared by 44% (at 2,767,966 oz) and 55% (at 2,102,222 oz) respectively, during the quarter. Equivalent is for byproduct like lead, zinc, iron, converted on value basis. They exceeded production of 3.2 million ounces of silver equivalent, which is a major milestone. The silver price fell 31% during Q2, the largest quarterly drop since the 2008 financial crisis. First Majestic Silver CEO Keith Neumeyer stated, "As such management decided to suspend a portion of silver sales to await a rebound in prices. While the suspension had a negative impact on this quarter's revenue and earnings, we are confident that the silver price will revert back to the mean in the near future. In the meantime, regular sales are not taking place in order to allow silver inventories to return to normal levels."

Neumeyer gave emphasis to the fact that the company did not make a single sale under $22.80 (silver price) in Q2 from dorey bar form. He anticipates the decision to hold back those 700,000 silver ounces will result in a couple $million extra in Q3 profit. Continued growth over the next couple of quarters is expected with the Del Toro project kicking into gear and the expansion at San Martin coming almost complete. Full year cash costs are expected to be consistent with guidance of $8.56 to $9.15/oz. So even with suppressed silver price, the profit margin is over 50%. From May to June of this year, the company committed to reduce spending in exploration, development, plant & equipment by $50 million, postponing investments in non-critical areas that will not impact production guidance. See the Mining Web article (CLICK HERE).

The company is a trend setter. Not long ago, they advised every silver mining company to hold a portion of their ongoing free cash flow in silver bullion form. They have shot the first cannon ball across the JPMorguen bow, waiting for their price management scheme (market fraud) to be finally broken. Analysts believe that if the ten largest silver producers followed the First Majestic defiant pattern, the silver suppression game would be quickly ended. They could later sell their withheld silver bars into the market at a price multiples higher. The reality in the mining sector is that most large producers of silver and gold are strongly aligned with the dark side of the financial elite, the worst being Barrick. Watch the trend with other defiant producers. The pressure to sell at fair price, to capitalize properly on investment, and to deliver to shareholders will grow more severe and intense. Imagine mining firms vaulting their gold & silver, then take loans against them to pay for the bills tied to operations. They could line up future deals in mine output with sales in high volume like to the Chinese & Russians. The opposition to COMEX criminality is only beginning.

◄$$$ TOP 10 GOLD MINERS REPORTED CASH COSTS, THE NEWS NOT BEING GOOD. THE OLD METHODS WOULD INDICATE PROFITABLE MINING FIRMS. THE REALITY HAS COME HOME TO ROOST. THE 2013 PROFIT FIGURES ARE HORRENDOUS. THE PROPER ACCOUNTING METHODS ARE BECOMING NORMAL AND ACCEPTED. $$$

The full absurdity of cash cost reporting for gold miners has come to attention. On a cash costs basis, most significant gold miners would appear to be profitable. Reality indicates otherwise. The latest quarterly and half yearly profit figures coming out of the gold mining sector are almost without exception dreadful. The gold stock investors have misunderstood the actual profit implications of the cash cost figures disseminated by most mining companies in the past. It has bordered on accounting fraud, far worse than innocent omissions. The mining sector has not properly accounted for myriad other costs, royalties, taxes, and overheads incurred. Typically the all-in costs are at least double the cash cost figures cited. Even the World Gold Council has blessed the all-in methods as a sensible way of reporting. Other challenges exist, like the depleting nature of gold mines. They have finite lifespans, and usually ore grades decline along with concentrate volume. The norm is diminishing metal output unless capital is spent on plant expansions, exploration, or the building of completely new mines to come onstream as production falls away at the older mines. Such expenditures are usually capitalized in the accounts, but not to impact the reported mine operating profits. The impact is a significant factor on a company's overall earnings and its ability to pay dividends.

Former Mineweb colleague Barry Sergeant campaigned vigorously on the journal's publications with regard to mining sector accounting methods. He urged them to post some form of all-in costs figures. He called it free cash flow. He was made decidedly unpopular with some of the mining companies at the time. To their credit, South Africa's Gold Fields and a few other firms were already reporting in this manner. Sergeant concluded that although many gold miners had negative free cash flow, they were able to report net profits and pay dividends since the gold price was in a rising trend. That has changed, even if the mechanism for pricing is corrupted. Nowadays, the profit reporting anomalies have become much more apparent. The fallout will mean the eventual development of a much leaner and meaner gold mining sector, although it will indeed take time for the heavy capital and operating costs controls to filter through to the bottom line. See the Mining Web journal article (CLICK HERE). Also see a good cash cost analysis of the gold miners in the Rik Green Investor Forum (CLICK HERE).

◄$$$ SUMMARY OF LOSSES AND OUTPUT IS REVEALING AMONG THE MINING FIRMS. THE OFFICIAL GOLD PRICE WAS DOWN, AGGRAVATED BY RISING COSTS. THE NIGHTMARE CONTINUES UNTIL THE COMEX IS SHUT DOWN. OUTPUT AT THE LARGE MINING FIRMS FOR GOLD ROSE, BUT PROFITS ARE DOWN, SOME WAY DOWN. $$$

The mining sector spent $1072 per ounce of gold sold in 2Q2013, compared to $970 in 2Q2012, according to data collected by Mining.com sources. Writedowns formed a parade of red ink. The sector has been hit by falling metals prices. The behemoth BHP Billiton posted a 30% decline in full-year profits. Kinross took a $2.29 billion writedown. Goldcorp took a $1.9 billion impairment. Newmont posted a $2.2 billion writedown. Glencore Xstrata took a $7.7 billion writedown, whose revenues in the first half of 2013 fell 2% to $121.4 billion. Many were anticipated writeoffs. However, these miners had the following profit declines, seen in Q2 comparisons. On an adjusted income basis, Kinross went from $156 million in 2Q2012 to $119 million in 2Q2013. GoldCorp went from $332 million to $117 million. Newmont went from $294 million to minus $50 million. First Majestic went to nothing in profit in a seller's strike, but their profit is held in highly valued silver bars.

The output in gold ounces is a different story, still on the rise with expanding production under challenging circumstances for the first six months of the year. The Kinross data is for gold equivalent, factoring in byproduct metals produced. Here is the gold production data from these three big leading firms. Kinross output from 1,266,081 in 1H2012 to 1,317,246 in 1H2013, a nice rise. GoldCorp output went from 1,103,300 to 1,260,600. Newmont output went from 2,489,000 to 2,333,000. Collectively, these three firms realized a 1.08% increase. The rise is a surprise to the Jackass, as my expectation was for a notable decline in response to project shutdowns. Newmont had lower gold production due to two if its mines shutting down for a period in the quarter. As footnote, gold mine output in South Africa is down 14% year to date through June.

If prices remain low, or do not recover substantially, then expect to see lower gold production by next year. Friend and colleague SRSrocco added a note. He wrote in an email, "Lastly, many of the miners (as you probably already know) held back from selling their metal after the April 12th takedown in hopes for higher prices at the end of the quarter. But, the gold price was taken down again in June. So many were forced to sell at even lower prices than they could have three months before. Anyhow, I still think what is going on is appalling, but I do have a feeling that gold price will turn around here and we may not see lower gold production until a few years, when peak energy really starts to show its ugly head."

Silver miner Fresnillo, the world's largest silver producer by output, continues to feel the impact of declining prices and higher costs. It was forced to cut operating spending and delay some capital investment, after net income dropped over 60% in the first half of the year.

◄$$$ MINING PROJECTS ARE BEING SHELVED IN MEXICO, 40% MORE THAN LAST YEAR. FULLY $8 BILLION IN EXPLORATION AND CAPITAL INVESTMENT ARE AT RISK OF DELAY OR CUTS. COSTS ARE RISING IN THE FALLING GOLD PRICE ENVIRONMENT. PRODUCTION OUTPUT AT THE LARGE MINING FIRMS REMAINS RELATIVELY STEADY. $$$

Mexico is in disarray. The nation ranks fifth globally in terms of mining investment and fourth in exploration spending. Although the Mexican Govt charges no royalty on mining production or profits, the firms pay fees based on the number of hectares covered by mining concessions, in addition to paying a flat 30% income tax. One hectare (100 meters by 100 meters) is equivalent to 2.47 acres. Their mining sector employs 334 thousand people, with two million more employed indirectly. The mining sector is dominant, its fourth largest industry in income, behind cars, oil, and electronics.

A total of 69 mining projects in Mexico have been suspended so far in 2013, a ripe 40% more than a year ago, due to falling commodity prices and increased local opposition. According to El Financiero, an additional $8 billion in exploration and production investment expected for this year is at risk. That is a huge amount of money for the Mexican Economy not to see arrive, a certain impact. Among the suspended projects are the Pericones and Setago projects by Canadian Kimber Resources. They halted explorations despite obtaining positive results that demonstrate important presence of gold and silver veins. Another suspended project is Caballo Blanco by Goldgroup. It is a wholly owned advanced stage flagship gold project, with an estimated investment of $400 million. Unchanged and on track is the extension of Buenavista mine by Grupo Mexico, with an investment of $1.4 billion, as well as their Angangeo project, which was allocated $131 million for the year. See the Mining web article (CLICK HERE).

◄$$$ ZIMBABWE PLANS TO SEIZE MINES WHILE COMPENSATING ONLY THE DOMESTIC BANKS. THE MINES WILL SUFFER MAJOR CONFISCATION LOSSES. WITNESS MORE GLOBAL SOCIALISM, OR RISING AFRICAN FASCISM. $$$

The Mugabe regime plans to seize control of foreign owned mines without paying for them as part of a program to accumulate $7 billion of assets. The program compels foreign companies to cede 51% of their assets to black investors or to the government. The decision follows his July 31st election victory. The government will compensate bank owners as it takes control of their companies. In defiance, his minister (a thug named Saviour) stated that Zimbabwe will not pay for its natural resources. It will just take them. Non-compliant mine owners risk losing their licenses. Anglo American Platinum (AMS), Impala Platinum Holdings (IMP), Barclays (BARC), and Standard Chartered (STAN) are among companies that operate in the country. Other industries could be required to yield smaller stakes to black owners. Metals and minerals, including platinum and gold, accounted for 71% of exports in the first four months of this year, equal to $719.9 million. The nitwit leaders will see a fantastic decline in export surplus. See the Bloomberg article (CLICK HERE). It is hard to call the Zimbabwe leader marxists, when they are more like the inept clown thugs running around South Africa, committing genocide when it suits them. More like socialist criminals, basic closet fascists. The Mugabe regime has the squeamish support of the USGovt.

## EXPLOSIVE GOLD & SILVER DEMAND

◄$$$ FAST RISING GLOBAL GOLD DEMAND IN THE Q2 OF 2013 CONTINUES, AS THE RESPONSE TO THE ILLICIT PRICE DECLINES REMAIN AT WORK. THE GAINS CAME FOR BARS & COINS, FOR JEWELRY, AND FOR CENTRAL BANKS IN A BROAD-BASED RISE. THE BIG FACTOR IN THE PUSH REMAINS CHINA & INDIA. $$$

Global demand continues to be fierce and broad and strong. Consumer demand for gold rose 53% in Q2 of 2013, led by strong growth in China and India. The results are from the latest World Gold Council Gold Demand Trends report. They highlight the response from recent declines in the gold price, continuing to generate significant increases in demand. The biggest markets for gold remain as Chindia ( China & India). On a global basis, jewelry demand was up 37% in Q2 of 2013 to 576 tons, from 421 tons in the same quarter last year. It has reached the highest level since Q3 of 2008. In China, demand was up 54% compared to a year ago. In India demand was up by 51%. Other significant increases in demand for gold jewelry were seen in other parts of the world. The Middle East region was up by 33%, and in Turkey demand grew by 38%.

Bar & coin investment grew by 78% globally in Q2, compared to the same quarter last year. In fact, bar & coin demand surpassed the 500 metric ton level in a single quarter for the first time. The lead factor was again the Chindia duo. In China, demand for gold bars and coins surged 157% in Q2, versus the same quarter last year, while in India it jumped 116% on the quarter to a record 122 tons. Tallying jewelry demand and bar & coin investment together, global consumer demand totalled 1083 tons in the quarter, 53% higher than a year ago. Given that growth was strong last year, the results are astonishing and serve as testament to a stern response to the illicit price declines. The official segment also registered demand increases. For the tenth consecutive quarter, central banks were net buyers of gold, purchasing 71 tons, a robust reinforcement of the trend that began in Q1 of 2011. Demand in the technology sector was stable once again, totalling 104 tons, a rise of just 1% on last year. See the Gold Org website article (CLICK HERE).

◄$$$ RECORD SILVER COIN SALES AT THE USMINT AGAIN, LIKE AN OLD SAW. THE FIRST SEVEN MONTHS TOTALED ALMOST 30 MILLION OZ IN DEMAND. THE ENTIRE INDUSTRIAL DEMAND FOR THE UNITED STATES IS IN DEFICIT, DITTO IN CANADA. $$$

Rack up yet another record breaking month for the sale of US Silver Eagles. The USMint finally updated the July data. The total was 4.406 million ounces, which does not include three active days of July 29-31. They will be tallied into August. The year-to-date total of Silver Eagle sales is on course to make another record of 29.45 million ounces. See the USMint website (CLICK HERE). To be sure, the lower price (even if rigged) has resulted in a surge in demand response, as it should be. In fact, retail physical silver sales records are being shattered all around the world. It bears repeating. The USMint silver coin sales plus the Royal Canadian Mint silver coin sales in year 2013 are projected to be a robust 25 million ounces over and beyond the combined national mine output for silver for the two countries. Silver coin demand for the US and Canada will be more than 25 moz greater than their total combined mine output. The entire industrial demand for the two nations is in deficit. What a truly remarkable data point! The weak price addresses indescribable corruption and complete breakdown. The last laugh will be with the silver investors, who someday in the not too distant future will revel at the $80/oz price, and spit in the COMEX eye.

◄$$$ CHINA & JAPAN WILL CONSUME AN ESTIMATED 91 MILLION OZ SILVER IN THE BURGEONING PHOTOVOLTAIC INDUSTRY OVER THE NEXT THREE YEARS. THE GREEN MOVEMENT CONTINUES. THE TOTAL NEED IS 11% OF GLOBAL MINE OUPUT, JUST FOR SOLAR IN THE TWO COUNTRIES IN THE NEXT THREE YEARS. $$$

With 5.3 gigawatts of new capacity going online in Japan in 2013 and up to 30 gigawatts added in China over the next three years, the solar industry could potentially have a big impact in the Silver market. Silver is a key component in solar panels, due to its unique electrical conductive properties. According to the Silver Institute, one megawatt of solar power requires around 2.8 million ounces of silver in physical devices. The solar projects in China and Japan will combine to add 27 gigawatts over the next three years. This capacity will require approximately 91 million ounces of silver. Translate into global silver mine output, to conclude that China and Japan's marginal demand from solar sources alone could consume up to 11% of global silver mine supply. It is not assured that the world will be able to produce as much silver as it did in 2012. It is even less clear that silver will be diverted to the solar industry from investor demand. Recall also that Japan is frantic to construct more electrical capacity, in order to replace the Fukushima plants. Over on the subcontinent of India, brisk demand is a dominant element in the global silver demand. Across the South China Sea, the Hong Kong window is hogging a big slice of the global mine output for gold.

◄$$$ CHINA'S GOLD IMPORTS FROM HONG KONG DECLINED AS DEMAND SLOWED. BUT A WHOPPING 101 METRIC TONS IN JUNE GOLD DEMAND IS NO SLOUCH PURCHASE. TO BE SURE, HONG KONG ADDS TO THE EXTREME SHORTAGE IN SUPPLY. TITLES ON STORIES CAN BE DECEPTIVE. HONG KONG HAS KEPT THE PRESSURE ON. $$$

Mainland China purchased 101 metric tons from the Hong Kong window in June, on a net basis (after deducting flows from China into Hong Kong). Although the headline story is a 4.8% decline on a monthly basis, the demand is brisk and strong. The rules on financed deals have changed, no longer permitting gold usage. Again, although demand was down for the month, in May the net demand was 106 tons, a huge amount. Therefore the press has taken a negative tilt to another strong month at the HK window. A big factor was inbound shipments including scrap, which totaled 113 tons, down from 127 tons in May. The gold market in China is on fire really. Last full year 2012, the Shanghai Gold Exchange delivered 1139 tons of gold bullion. For the first six months through June, the same exchange delivered 1098 tons to buyers. As point of reference, the entire annual Chinese gold mine output is only 403 tons. The Middle Kingdom is a gigantic net importer of gold.

The same bias is evident in the story told, declaring lost faith in gold amid speculation the US Federal Reserve will curb debt buying. Both parts of that interpretation are incorrect. The faith in gold is firm, as sovereign debt crumbles and government deficits remain elevated unaddressed, except by a dangerous printing press. The USFed talked about reducing their bond purchase, but they will amplify it in coming months. The stranger part of the equation was the rule change on deal settlement. Gold has been a key method used in the commodity finance trade. It served as a popular way of taking advantage of the higher interest rates on the mainland. Some traders had been using gold to back foreign currency loans from the Hong Kong banks, then taking in repatriated cash to the mainland. It was finally converted it into Yuan currency, before the crackdown reduced the practice trade. Hence a back door closed to acquire gold through Hong Kong, disrupting the HKDollar stability. See the Bloomberg biased article (CLICK HERE).

◄$$$ INDIA'S SILVER IMPORTS EXPLODED DURING THE FIRST HALF OF 2013. THE TALLY IS IN. MUCH ATTENTION HAS BEEN GIVEN GOLD DEMAND IN INDIA, AND CONTROLS PLACED ON PURCHASES, EVEN IMPORT DUTIES. THE BIGGER STORY IS INDIAN SILVER DEMAND. IT HAS MORE THAN DOUBLED THIS YEAR VERSUS LAST YEAR. AT THE CURRENT PACE, THE TOTAL SILVER IMPORTS ARE SET TO EXCEED THE RECORD SET IN YEAR 2008. $$$

To put silver into proper perspective, the total annual Indian silver import in 2008 was 5048 tons. But the price was still below $20/oz, meandering in the teens. The following year saw imports plunge to 1285 tons, despite a stable range in the silver price. The fluctuation might be explained by an unstable Rupee exchange rate. The imports during 2010 and 2011 were 3029 tonnes and 4087 tons respectively, which is when the silver price jumped past $20 and went toward $50 in an explosive move.

The silver imports in India are on pace to rival record highs once again. The imports during the initial six month period suggest a notable shift in investor demand towards the metal, certainly a response to the ambush that softened its price. According to kept statistics, the national silver imports to India during the first five months of the year have surpassed the total imports during the entire year 2012. That is a remarkable feat. The total silver imports by India during 2012 were 1900 tonnes. Meanwhile, the silver imports during the period from January to May this year have already reached 2400 tons. A shift from gold to silver explains much of the gains. A significant rise in silver imports has occurred during the three months April to June, not coincidentally the time of the massive naked short illicit ambush by the crooked New York and London bankers, who would not permit a gold market default on their watch.

An acceleration in demand is notable, resurgent, and strong. The total silver imports from January to March were 760 tons. In the month of April alone, imports surged to 720 tons. It further swelled to 920 tons in May. The estimated year-to-date total for the silver imports may cross 4000 tonnes when July data is available to tally. Based upon extrapolation, even if imports relax somewhat in the remaining months of the year, the total would easily surpass the 2008 highs. A distinct shift from gold to silver has occurred among investor community in India, since the sudden drop in gold prices during mid-April. The tight import curbs were simultaneously imposed by the Indian central bank, on explicit order by London bankers. Silver is not subject to any import restrictions. See the Scrap Monster article (CLICK HERE).

## PARADIGM SHIFT & GOLD MARKET SQUEEZE

◄$$$ DEFAULT FEARS ESCALATE AS A RUN ON PHYSICAL GOLD INTENSIFIES. THE OFFICIAL VAULTS ARE FAST GOING EMPTY. THE DISTRUST IS FAST RISING AMONG ACCOUNT HOLDERS AND INVESTORS. THE BELIEF IS BUILDING THAT THE GOLD MARKET IS NOT SOUND, NOR IS THE CURRENCY OR BOND SYSTEM. THE GERMAN GOVT REQUEST FOR GOLD REPATRIATION STARTED THE PANIC THAT GATHERS MOMENTUM. CONTRACT HOLDERS ARE STANDING FOR DELIVERY IN BIG NUMBERS. MANY PEOPLE WILL BE CHASING VERY LITTLE GOLD. IT HAS GONE INTO HIDING. A SHORT SQUEEZE IS IN THE EARLY PROCESS, FROM IMMENSE DEMAND, WIDESPREAD FRAUD, AND DEEP SHORTAGE. $$$

Grant Williams gets around. He is a sharp observer, with a keen view inside the gold market. He hits on all chords. His wisdom is deep. His summary is spot on. But he knows nothing of Eastern developments. The Jackass do. They provide the trigger he yearns for and seeks without finding. Nonetheless, his analysis is dense and excellent. The full quote is worth reading, all of it, nothing wasted, nothing superfluous. Emphasis is mine. Keep the cogent thoughts separated by paragraphs.

Williams: "What is happening at the moment is going to be very, very interesting. We are about to witness the second act of this move in gold that started in April. The beginning of this saw a precipitous fall in the futures price, against the backdrop of voracious physical buying of the metal (gold) itself. I have been saying that we are really only going to understand the structural changes that have been made to the market, once we see the price of gold going up. We have now started to see that. In the last few days we have seen about a 4% rally in the price of gold, and the miners in the form of the GDX were up 17%. The early signs are that we are going to see some sharp moves to the upside here, and that certainly looks like it has begun.

If you look at what is going on in the backdrop of this in the warehouses on the COMEX, there are some very strange things happening. If you look at the holdings of that Big Three (HSBC, Scotia Mocatta, JPMorgan), currently HSBC has about 3.5 million ounces of gold in their warehouse, Scotia Mocatta has about 2+ moz, and JPMorgan was down to about 100,000 ounces, which is absolutely unprecedented. So all of this gold is disappearing. It is going out of the vaults. It is going out of the system. It is going into private hands. We do not know where it is going. I am sure some of it is going to central banks [in the East]. A lot of it is going to retail investors. People are starting to get worried that there may come a day when they ask for their gold back, like Germany, and be told they cannot have it. So I am very intrigued to see what happens in the next couple of weeks and the next couple of months, because we are going to see some explosive moves to the upside.

Eric King brought up a critical issue, the combination of deep fractional banking as gold market foundation against a backdrop of rapid inventory declines. The danger is acute for default. The fraudulent basis is astounding.

Williams continued. "Let's talk about inventories because you did bring that up briefly. The Open Interest hit 42.5 ounces of paper claims for each ounce of physical gold, an all-time record. It s almost unimaginable what we are seeing right now. There has been an awful lot of [physical] gold that has been taken out of supply. [With paper claims] certainly an all-time high, that will pose a very severe problem should certain events come to pass. The main one is going to be people actually standing for delivery and wanting to take possession of their gold. All of the evidence points to the fact that [taking possession is] what people are going to start to do. Gold has been pouring out of the registered warehouses on the COMEX. It is been pouring out of the GLD ETF. So if you do start to see people looking at these inventories, looking at the overhang in futures, and actually standing for delivery on their contracts, there are going to be an awful lot of people chasing a very little amount of gold.

We have seen [disorder] in the central bank space, ever since Germany (the Bundesbank) asked for a very small portion of their gold back, which is 300 tons of gold from New York. They were told it would take seven years [to return that small 300 ton portion of their 1436 tons of gold supposedly stored at the Fed,] as your listeners [and readers] well know. That is really inexplicable to me. As soon as we saw that request for a sizable amount of gold [for German repatriation], we have seen the price get hit significantly. We have seen physical gold pouring out of places looking like it is going to fill a hole somewhere. That causes an enormous amount of potential trouble, should a whole bunch of other people decide, 'YOU KNOW WHAT, JUST TO BE ON THE SAFE SIDE, WE ARE GOING TO TAKE POSSESSION OF OUR GOLD TOO.'

This whole fractional reserve gold scheme was always at some point going to come under pressure. It really feels to me like the Bundesbank asking for their gold back was the starting pistol in a race to protect an asset that really should never let out of your possession. But that is what the [foreign] central banks have done by leaving the gold in vaults in New York and London. Now they are going to be scrambling to get it back. This is just at the time where a lot of other [individuals and smaller funds] who have claims on gold are also afraid of the soundness of the system, and are going to take delivery of their own gold. We are going to have a lot of people chasing a small amount of gold, and anyone who has been in markets for any length of time knows what generally happens when you get that sort of situation." He describes a massive short squeeze coming in the near future. He describes a panic in the gold market from revealed widespread fraud and massive shortage that might not be describable in words, but staggering or enormous or historically never seen before might begin to fit. See the King World News interview (CLICK HERE). Kudos to King for his hard work in the last few months, attracting great guests with solid information, to tell the gold story well.

◄$$$ CHINA HAS PROPOSED A NEW GLOBAL MANDATE TO REINSTATE THE GOLD STANDARD. AT THE SAME TIME THEY ARGUE A NEW NATIONAL MANDATE TO DOUBLE GOLD PRODUCTION, WHILE ACQUIRING AUSTRALIAN MINING FIRMS AT A RAPID RATE. THE ENTIRE WORLD IS IN A SHIFT MODE. CHINA IS PREPARING FOR A GOLD FOUNDATION TO EITHER BANKING OR TRADE, POSSIBLY BOTH. THE USDOLLAR WILL CATCH THE FLATULENCE OF BOTH MAJOR SHIFTS, SURE TO BURN BOTH EYES. $$$

On August 5th, the Peoples Bank of China published an article in a prestigious Chinese market journal suggesting that the time is right to convene a new Bretton Woods conference with the intention of creating and implementing a new gold-backed reserve currency to replace the dying USDollar. The direct challenge comes at a time when the United States leadership in banking wrestles with hyper monetary inflation at a zero price tag forever, and the White House is pre-occupied by events in North Africa and the chief's personal golf game. Fortifying the incentive and movement toward a new Gold Standard is progress within China toward making aggressive acquisitions among Australian mining firms, while arguing a new national directive to double domestic gold production.

Examine the giant Zijin Mining Group, the biggest gold producer in China. It operates Australia's Norton Gold Ltd Company. Company officials report being given a mandate to nearly double gold production, holding the door open for potential acquisitions. The newly hatching China's mandate is to double national production. Zijin CEO Dianmin Chen believes plenty of mines are for sale in the Australian gold fields and elsewhere in the world. Also, Norton was always looking at potential acquisitions. Chen said "We see this lower [priced gold] market as an opportunity to grow. We are not going to stop at 300,000 ounces. This year we are looking at an 11% increase in gold production. Our mandate is to double our production from our existing platform. If we have extra M&A activities, we would go beyond that." Other footholds are being made in the commodity arena by Chinese financial firms. The French bank Natixis is the object of the latest move by Chinese institutions to expand into natural resources markets. GF Securities wholly owned subsidiary, Hong Kong GF Futures, acquired Natixis Commodity Markets Limited for $36.1 million. See the Blanchard Online article (CLICK HERE).

More Chinese gold mine deals are in the pipeline, already at record levels. Takeovers and asset purchases by producers based in China and Hong Kong rose to a record $2.24 billion so far this year, quickly surpassing last year's record $1.96 billion, according to data compiled by Bloomberg. Zijin Mining Group (the world's seventh largest gold company by market value) and Zhaojin Mining Industry are among companies looking to take advantage of the falling market caps of target firms. Their share prices have fallen an average 53% since the gold price peaked in 2011. Yet another unintended consequence of permitted COMEX naked short market ambushes, as foreign firms arrive to cart off properties. Jon Price is managing director of Phoenix Gold (PXG). He said, " China's appetite for gold is virtually insatiable. They have a large bank account with which to work, and a lot of US dollars that they perhaps would rather see turned into physical assets. I can see them being a dominant player."See the Bloomberg article (CLICK HERE).

A quip from the Jackass, perhaps closer to reality. China could really stir up the market by offering to buy Gold & Silver output from North American mining firms at a 10% price premium. The gesture would emphasize the absurd artificially low official price, and lock in income stream from foreign miners who pay up. Over time, the new relationship could pave the way for outright acquisition. With or without a courting of Canadian mine output, the Gold market is about to undergo a major historical squeeze. Shifting grounds, movement toward a Gold Standard renewal, newly built platforms, and global initiatives toward trade settlement will create a powerful demand for Gold bullion as the stable ballast for the new systems. The next chapter is being written, whether or not the American leaders or American banks or American people are part of it, or not. It appears not!!

## DISARRAY IN THE WORLD OVER GOLD

◄$$$ CONSEQUENCES OF THE GERMAN GOLD REPATRIATION REQUEST ARE BEING EVALUATED. COLLAPSE IS CONSIDERED. DEFENSE AGAINST BACKWARDATION IS THE NEW GAME. THE TACTICAL PRIORITY HAS CHANGED TO PREVENT A BREAKDOWN IN THE ENTIRE PERCEPTION FRAMEWORK. THE UPCOMING BUST HAS A STRUCTURAL ASPECT BUILT WITHIN THE PSYCHOLOGY OF THE GOLD MARKET. IT IS BREAKING DOWN, STARTING WITH THE APRIL & JUNE AMBUSHES, CONTINUING WITH THE VAULT DEPLETIONS AND LONG DELIVERY DELAYS. THE CLIMAX COULD BE THE FAILURE TO REDEEM PRIVATE ALLOCATED GOLD ACCOUNTS. $$$

The German Gold Reserves in the United States are long gone, and the German Parliamentary members probably are well aware. They must have been briefed long ago by the Bundesbank insiders. The wealth has been confiscated and stolen, used for financing the United States war chest and furthering for global full spectrum dominance that plagues the world. The German Federal Bank authorities have changed their game plan priorities. They are actively trying to avoid further speculation by referring to a non-existent full transparency in the gold market and banking industry. The entire system will collapse when the main non-core players come to realize the Gold market is a fractionalized shell game, the COMEX vaults a site of musical gold chairs, the naked shorting a grand congame, the GLD Fund merely gold in motion. The psychological warfare has entered into the battle zone. Nobody in the gold cartel wants the current backwardation of the gold market to turn into a permanent backwardation. It signals grotesque shortage, distrust of existing gold held on account, and the entire rigged gold price system. The consequence would be the inevitable collapse of global trade and civilization as we know it. See the Fourth Media article (CLICK HERE).

◄$$$ THE INDIAN CENTRAL BANK HAS BEGUN STRICT CAPITAL CONTROLS. THE VISE IS TIGHTENING TO PREVENT A GREAT OUTFLOW. AN EXCEPTION WAS GRANTED TO THE LARGE ENERGY PRODUCERS. THE VAST NEW GOLD IMPORTS HAVE CAUSED MAJOR PROBLEMS FOR CAPITAL AND THE RUPEE CURRENCY. SOME BLAME GOES TO THE INDIAN CONGRESS WITH A WILD SPENDING SPREE AS THE ELECTION APPROACHES. $$$

Resident Indian citizens are gradually being obstructed from sending money out of the country. The Reserve Bank of India has imposed step by step harsher rules that serve as capital controls. The new measures impose reduced limits of how much an individual can transfer out as well as how much a company can take as investment from overseas. All these rules are effective immediately. The tightening of rules works in overnight pronouncements, done suddenly. Under the rules, henceforth no money can be sent out of the country for purchase of immovable property located outside of India, by a resident Indian. Such measures may next be expected for non-resident Indians over the coming year. Suspicion mounts for their funds possibly to be frozen. Let the capital controls begin.

Formally, the rules stipulate a reduction in the limit for Overseas Direct Investment (ODI) from 400% of the net worth of an Indian Party, now down to 100% of net worth. This reduced limit would also apply to remittances made under the ODI scheme by Indian Companies for setting up unincorporated entities outside India in the energy and natural resources sectors. The reduced limit would not apply to ODI by Navratna, ONGC Videsh Limited, and Oil India concerning overseas entities in the oil sector. The rules stipulate a reduction in the limit for remittances made by Resident Individuals, under the Liberalised Remittance Scheme (LRS), from US$ 200,000 to US$ 75,000 per financial year. An allowance is made for joint ventures and wholly owned subsidiaries outside India. Current restrictionson margin stock trading and lottery winnings would continue. Usage of LRS for the purchase of property outside India have been prohibited. See the RBI official statement (CLICK HERE).

A rejoinder note from EuroRaj, who has extensive experience and knowledge with India, Turkey, and Iran. Desperation is evident by the Indian Congress. It is spending like crazy in order to win the next election, when their chances of a major losses and embarrassment are quite clear. A price inflation spike is on the horizon in clear view. One can see exactly why people in India, starting from the illiterate farmer, then the middle class and wealthy alike, save in gold. They do not trust politicians and the bankers. All small households and communities in their own way act as their own central bank, with gold held at its core. The blame for this entire episode lies squarely with the Congress and not the RBI central bank, which is actually one of the most conservative central banks around.

◄$$$ INDIA INCREASED VARIOUS GOLD TAXES FOR THE THIRD TIME THIS YEAR. THE LEADERS WISH TO CUT DEFICIT BY LIMITING IMPORTS. THE NATION'S LEADERS HAVE TURNED DESPERATE, AS THE TRADE DEFICIT REMAINS HIGH AND THE RUPEE CURRENCY REMAINS AT RISK. THE RESPONSE WILL BE A BOOM IN SMUGGLING. $$$

The tariffs on gold and platinum imports were increased to 10% from 8%, while the levy on silver was boosted to 10% from 6%, as part of updated policy from the Ministry of Finance. Taxes on shipments of gold concentrates, ores and dorey bars will rise to 8% from 6%, while the duty on silver dorey bars will climb to 7% from 3%. The Indian Govt also increased the excise duty on refined gold to 9% from 7% , and the excise duty on refined silver to 8% from 4%. The Finance Minister Chidambaram wishes to curtail gold imports to 850 metric tons so far this year with a goal to reduce the Current Account deficit. The broad deficit, which measures trade, goods, services, and investment income, widened to $87.8 billion, equal to 4.8% of the gross domestic product  in the year ended March 31st. The unspoken motive is to boost capital inflows that will fund the many state-run financial companies that issue quasi-sovereign bonds. They are central to finance infrastructure investments. The trade deficit is pushed by crude oil and bullion imports, which the central bank regards as the biggest risk to the $1.9 trillion economy. The Rupee fell to a record low of 61.805 per USDollar on August 6th.

The response from the markets to tax hikes, duties of imports, and other obstacles will be much greater smuggling. The official gold import data might show a big decline in the second half of 2013, but the data will not reflect reality. The government coffers will be the losers, as the black market will fill the need. India imported 478 tons of gold in the second half of 2012, taking full-year purchases to 860 tons, according to the World Gold Council. Imports by banks and other traders have come to a near standstill after the Reserve Bank of India on July 22nd applied restrictions to the jewelry business and importers. With the latest duty increase, more imports from the legitimate channels will shift into the illegitimate channel.

Imports had surged 87% to 383 tons in the four months through July, from 205 tons during the same time a year earlier, as per Revenue Secretary Sumit Bose. Silver shipments had jumped three fold to a value of INR 127.9 billion between April and July, from INR 42.8 billion a year earlier. Consumption in India, which imports almost all the bullion it needs, accounted for 20% of global demand in 2012. Bullion imports were 845 tons in the twelve months ended March 31st, while silver shipments totaled 1963 tons, according to the Ministry of Finance. The data will be skewed from here onward, as the black market smuggling trade takes over. The Voice pitched in, saying "The black market and smuggling tied to gold is booming in India. Most of the gold comes from Dubai." See the Bloomberg article (CLICK HERE).

◄$$$ IN INDIA THE BACKLASH OF OFFICIAL RESTRICTIONS AND TAXES IS LOST JOBS FOR 500,000 WORKERS. THE JEWELER BUSINESS HAS CURBED GOLD IMPORTS FOLLOWING INDIAN GOVT RESTRICTIONS. $$$

Vijay Gopal is a goldsmith at one of India's leading branded jewelry manufacturing unit in Coimbatore. He lost his job last month after three decades. Gopal is not alone. The Indian Govt's multi-lateral measures to control and limit gold imports has cast a cloud over the future of industry workers, the collateral damage broad and deep. According to industry estimates, as many as 500,000 artisans, craftsmen, and salesmen have lost their jobs since June. Thousands more are expected to be displaced from work. Ashok Minawala of the All India Gems & Jewellery Trade Federation said, "Due to the shortage of gold in the market, the fear of job loss looms large. Over 50% of the workforce (approximately a million workers) could lose their jobs if the government's decision to discourage import continues. A great many people are employed in this industry on a contractual basis. Over 20 lakh goldsmiths engaged with the manufacturing units are sitting idle, though still employed. The plummeting demand and sales curbs have forced retailers and manufacturers to slash worker headcounts. A sense of fear and pessimism has permeated the market." Essentially the Indian Govt policies have created a swap of problems. The Current Account deficit might come down some, but the unemployment and economic damage will rise markedly to an important indigenous business steeped in tradition and culture. See the Hindustan Times article (CLICK HERE).

◄$$$ GOLD OUTFLOWS FROM BRITAIN TO SWITZERLAND SURGED IN THE FIRST HALF OF 2013. THE INDICATION IS MASSIVE MOVEMENT OF GOLD BULLION BEING SOLD OUT OF EXCHANGE TRADED FUNDS, THEN SHIPPED TO SWISS REFINERIES BEFORE BEING DELIVERED FOR SALE IN ASIA. THE UNITED KINGDOM EXPORTED 240 TONS OF GOLD TO SWITZERLAND IN THE MONTH OF MAY ALONE, WHILE ITS EXPORTS OVER THE FIRST HALF OF THIS YEAR TOTALLED 797 TONNES. $$$

Macquarie is the source of the information, surely not desired for disclosure by the scummy London bankers. In contrast, Britain exported just 92 tons of gold bullion to Switzerland in the whole of last year. Since the UK has no gold mines, the obvious source is the gold exchange traded funds (ETFs), most of which hold their gold holdings in London vaults. They are the popular investment vehicles which issue securities backed by physical gold, intended for the dumbest, laziest, and most braindead investors in the building. They saw huge outflows in 1H2013. Two explanations make sense on the Swiss destination. Distrust of London banks during rehypothecation (theft by another name), or basic distrust of the ETFunds for collusion with the banks. Think both gold bars above the table from transferred accounts to safer Swiss locations in allocated deposit accounts, and gold bars below the table from stolen accounts to aid the embattled Swiss bullion bankers. They face multi-$billion class action lawsuits for failure to deliver on secured gold held on account, with storage and insurance fees facing fraud scrutiny.

The bigger reason in importance is summarized by Macquarie. "But a bigger factor, we think, is that the gold bars from ETFunds have gone to Switzerland, where most of the world's gold refining capacity is [located]. It is to be remelted into different size bars and coins and then sold to end consumers, predominantly in Asia, specifically China and India." Be sure to know that the Gold Exchange Traded Funds posted their biggest outflows of metal on record in 2Q2013. Data from the World Gold Council showed outflows of 402.2 tons of gold bullion between April and June across the world. See the Reuters article (CLICK HERE).

◄$$$ A GRASSROOTS MOVEMENT HAS BEEN INITIATED IN DENMARK TO JUSTIFY THE FULL ACCOUNTING OF ITS 66.5 METRIC TONS OF NATIONAL GOLD RESERVES. BY LAW IT MUST BE WITHIN THE COUNTRY BOUNDARIES. THE DANISH GOLD HAS BEEN LEASED, ITS BULLION CONVERTED TO DERIVATIVES, THE BARS STORED IN NEW YORK, LONDON, AND CANADA. THE MOVEMENT HAS BEGUN, TO RAISE AWARENESS AND TO MAKE DEMANDS OF THE WAYWARD GOVERNMENT OFFICIALS (ELITE THIEVES) TO REPATRIATE THE NATION'S GOLD. $$$

A lead organizer is Troels Ketel Norballe, a Hat Trick Letter subscriber. He anticipates the movement to go viral across the stern august country. He offered the following description ot the national campaign to retrieve their gold. His words and thoughts, my edits. In simple terms, we are going to make a viral campaign on the Danish social networks, in newspapers, as well as in user generated journalist sites. Our case will be made by documenting that the national Danish gold treasure has been leased out by the central bank of Denmark, called Nationalbanken. The Bank has 66.5 metric tons of gold. The law is very clear. The Danish Central Banking Act of 1936 requires that the Danish money supply must be covered by a gold hoard at a minimum of 25% of the aggregate amount of Danish Kroner currency in circulation.

However the law in place has been dispensed with for many years, ignored with no political intervention debate or input from the voting public. Today the entire Danish gold account is committed toward paper in contract derivatives, surely being leased under the justification that it pays interest as a paper asset in the gold leasing market. These gold reserves have been stored in the United States, England, and Canada. Our movement wants to raise awareness about the Danish gold theft, just as GATA has done. We urgently wish to start a popular and politcal debate about repatriation and legal action against those responsible for the leasing and vacating of the reserves to support the current unsupportable fiat paper currency system. They are elite gold thieves. We will start with a Danish homepage called "www.guldettilbage.nu" which translates to something like "www. the gold back now" in English.

◄$$$ THE GOLDBROKER.COM BUSINESS IS BEING INHIBITED BY SLOPPY OBVIOUS BANKER DELAY TACTICS, BUT IT CONTINUES AND THRIVES. THE GOLDBROKER.COM SITE IS A BOUTIQUE THAT FEATURES ALLOCATED ACCOUNTS IN SECURE VAULTS IN SWITZERLAND. $$$

GoldBroker.com is an FDR Capital business registered in Malta, with secure vault service provided in Zurich. The Founder & CEO Fabrice Drouin Ristori (a Hat Trick Letter subscriber) provided a description of the firm. Goldbroker.com has been designed to enable investors to own real physical Gold & Silver and to store it outside the banking system. They differ from most of other gold companies because with their service, investors own gold and silver bars in their own name. They own 100% allocated bars, with no mutual or fractional ownership. See the website description (CLICK HERE) concerning ownership, choices, storage, privacy, verification, and cost.

Fabrice summarized the business. "Our clients actually store Gold & Silver in their own name, which means that our secured storage partner knows exactly the identity of each of our clients and the serial numbers of the bars they own. Our service has been designed to avoid any counter-party risks. So clients own and store in their own name. Goldbroker.com does not store for our clients. It is done directly by them. That is why our clients can go directly to the secured storage facility and withdraw their gold without any of Goldbroker employees being present and without any exit fees. Our clients can literally go and check their gold bars themselves, which is better than an external Audit.. Vault facilities are in Zurich Switzerland. We are about to launch a site in Singapore. Egon Von Greyerz is a partner in the company."

The obstructions are many but surmountable, which are a regular nuisance for the GoldBroker.com operations, but they do not prevent them from conducting a thriving little business. Clients must wire them the funds for the investment in Gold & Silver. However for about a year, the firm has been experiencing numerous problems to receive client funds, which arrive but with silly delays. The banks are trying to prevent clients from moving their funds. Here are the most common bogus explanations that the clients have been given, and must be endured. Banks are trying to prevent the broad removal of funds out of the system, perhaps before the massive bail-in process which they are expecting to implement soon. Despite all, the private business of secured vaulted Gold & Silver investment is thriving and will continue to blossom. No obstacle is too big to overcome when protecting private wealth.

  • Very long delays to receive the funds, well above the official 24 to 48 hour legal limit for delays in Europe. Funds can take up to a week sometimes to be received.
  • Banks ask clients to first have an appointment with the manager to explain why they want to move the funds. Sometimes, they are told they are not permitted to move the entire transfer of funds at once.
  • Phony IBAN mistakes are offered in excuse. Sometimes clients are told that the banking transfer data is not correct, when they are actually correct. So it postpones the wire transfer, resulting in repeated attempts.
  • Intermediary banks problems are also offered as excuses. The wire transfers do not go through because of intermediary banks problems. Few specifics are ever provided.
  • Most of such problems are encountered in Europe banks for now, where most of their clients are located. At times similar problems are seen in the United States as well.

◄$$$ PAKISTAN HAS BANNED IMPORT OF ALL GOLD AT LEAST FOR ONE MONTH. THE NATION COUNTERS A CURRENCY DEVALUATION. THE BAN ON GOLD IMPORT IS INTENDED TO SAVE THE HIGHLY VALUED FOREIGN CURRENCY RESERVES. $$$

The Economic Coordination Committee (ECC) of the Pakistani Cabinet, headed by Finance Minister Ishaq Dar, took the decision to ban all gold imports for one month with immediate effect. The smuggling of gold to India has been causing Indian Rupee currency devaluation. The importers were grabbing at USDollars from the market to meet the needs of the Indian buyers. The strong black market demand is causing problems for the Pakistani Rupee as well. Gold in various forms has been allowed in imports, even duty free since 2001. In support of the re-export of gold products, Pakistan had allowed the duty free import of gold under Entrustment clause and Self Consignment schemes of 2001. The ECC decision effectively bans these schemes, the suspensions to remain until the end of August. An official review will be conducted, with the intention to remove loopholes and deficiencies in the plan. Attention will be given to genuine exporters of gold jewelry, whose work is to be coordinated with the national objective of increasing exports. While the Islamabad officials have addressed the steep devaluation of their domestic Rupee currency by banning the gold import, no action has yet been taken against the exchange outfits involved in hoarding of USDollars. They hope to make big fortunes after revaluation, according to industry experts. See the Pakistani Tribune article (CLICK HERE).

## GOLD PUSHES ASIDE SHACKLES

◄$$$ ERIC SPROTT EXPECTS WITH BANK BAIL-INS, GOLD & SILVER WILL SKYROCKET. THE SPROTT GOLD FUND (PHYS) SAW REDEMPTIONS RECENTLY OF 2.6 TONS. DESPERATION FOR PHYSICAL DELIVERY IS GROWING. THE NEXT BIG FACTOR WILL BE BAIL-INS, THE WIDESPREAD BANK ACCOUNT CONFISCATIONS AND THEFTS. THE PUBLIC HAS YET TO RESPOND TO THE CYPRUS BAIL-IN MODEL WIDELY ADOPTED ACROSS WESTERN NATIONS. MONETARY POLICY BY THE USFED WITH ZIRP AND QE ARE A DISPLAY OF COMPLETE INSANITY. THE GOLD PRICE WILL REFLECT THE INSANITY. $$$

Eric Sprott expects a gargantuan rise coming soon for precious metal prices, and their corresponding equities (mining stocks). He forecasts gold price will reach new highs within the next twelve months, altering his endyear forecast. The Western financial system is very fragile. He pointed out the one event which when it occurs, namely bank account confiscations, will completely take the lid off of gold. He believes June 28th marked the low in the gold price, setting up a gargantuan price rise. He expects mining stocks to rise between 300% to 500% in value. The catalyst as Sprott sees it will be bank bail-ins, the infamous dreaded bank account confiscations. They have been enacted into law, with little or no public reaction. The citizens in the Western nations are not prepared. They surely regard the Cyprus warnings as remote.

Sprott said, "The one event in my mind would be when it becomes apparent to everyone that having a deposit in a bank is a very risky situation. We saw that in Cyprus, where the depositors got nailed on the bail-in. We have seen all these proposals to have bail-ins as the solution to the problem in the United States, in Canada, in Great Britain, in New Zealand, and in Europe. All the paperwork has been laid out. We are in a very fragile financial system right now. We have most Western governments buying their bonds, which is total financial insanity. We have zero interest rates, which is total financial insanity. Even with this, we can hardly get the economies to recover. What is going to happen to those governments is the same thing that happened to Detroit. It is so cast in stone. It is amazing that we all ignore it. The bottom is in for Gold & Silver. I think the returns are going to be fantastic. It is probably a better time to buy than it was in 2000 before the gold price really started to move." See the Bull Market Thinking article (CLICK HERE).

◄$$$ A NEW BASKET IS BEING MENTIONED IN PROMINENT CIRCLES, INCLUDING THOSE WHERE JIM SINCLAIR HAS AN EAR. THE EURO-R5 MIGHT BECOME A TRADE STANDARD, FURTHER DIRECTING ATTENTION AWAY FROM THE USDOLLAR. REGARD IT AS JUST A TRANSITION BASKET VEHICLE UNLESS GOLD-BACKED. NO NEW PAPER CURRENCY SYSTEM CAN SUCCESSFULLY REPLACE A PAPER CURRENCY REGIME. WITNESS A SLOW TRANSITION TO A GOLD-BACKED CURRENCY SYSTEM, THAT COULD INCLUDE A NEW GOLD-BACKED NORDIC EURO. THE NEW GOLD STANDARD WILL BE ENFORCE WITH TRADE AND SAVINGS, NOT WITH BANKING SYSYSTEMS AND CURRENCY MARKET. THE BANKS AND FOREX WILL FOLLOW THE NEW LEADERS. $$$

The Euro-R5 proposed basket is cited by Jim Sinclair (aka Santa). It consists of currencies for the next new team aligned closely with the BRICS satellites. They are the Euro from European Union, the Real from Brazil, the Ruble from Russia, the Rupee from India, the Renminbi from China, and the Rand from South Africa. It is sometimes referred to as the Euro-R4 without South Africa included. Regard the Euro-R5 as a teddy bear transitional object, with the destination (adulthood) being a Gold Standard and corresponding Gold-backed medium for trade. Also, a new gold-backed Nordic Euro could come from the alliance in future months. The Euro is being drawn toward the BRICS nations, an event of major significance. Ironically, even though the basket is built around the Euro, its core in the Euro is the weakest currency of the bunch. It carries with it Spain, Italy, France, and other weaker smaller nations, their huge fiscal deficits, their large insolvent banks, a demagogue Draghi as central banker, and discredited new vapor bonds as toxic bond patches. The important point is that an alternative for trade usage is being formulated, that includes the tiger emerging nations of the BRICS yard. Thesee key five nations are the core of courage in defiance to band together. They will create a gigantic EurAsian Trade Zone. They have already made good strides in the BRICS Bank and another BRICS Emergency Fund for financial rescues. The money has been committed for both funds. The USTBonds will be discharged in funding the new alliance and its platforms, even its energy pipelines. Think Return to Sender.

When compared with the USDollar on fundamentals such as annual deficit and trade deficit, the Euro plus the 5Rs fare significantly better. While the United States has been piling on enormous deficits of both kind for the last 30 years, the BRICS nations have been accumulating significant FOREX reserves. They have served as the global manufacturing sites. Before too many more months, the USDollar will be relegated for usage primarily in the USEconomy. The forced devaluation will be at least 30%, and probably over 50% soon afterwards. The USTreasury Bonds have already begun the return voyage to New York and London banks, where the bankers will choke on them. The USFed and Bank of England will be compelled to monetize the magnificent volume of rejected USTBonds exactly when the alternative currency basket is introduced, whatever it is, whatever it looks like. Already the Chinese Yuan Swap Facility enables several $100 billions in trade to be conducted outside the USDollar Sphere.

The key significance is transition away from the USDollar in trade usage. The ultimate goal is to return to a Gold Standard, enforced through trade, not banking. The currency market will follow trade. The banking systems will follow trade. The entire dynamic has been backwards since 1971 when the Bretton Wood standard for gold was broken. Keep in mind that the Yuan currency has satisfied a huge role in the last few years, in particular the last two years. Much trade has been steered away from the USDollar. Any introduction of the Euro-R4 or Euro-R5 would instantly result in two important events. First, an enormous amount of additional trade would take place outside the USDollar. Second, the banks in the Eastern Hemisphere (where the BRICS largely reside) would invest more in sovereign debt for the BRICS nations. The big lightning rod event would be the gold-backing of the Chinese Yuan. In my view, that event is coming, and is very likely to be intermingled with the arrival of the Gold Trade Settlement platform. For instance, the Gold Trade Note used as letter of credit might initially be in the form of a special Yuan that is backed by gold. After all, the Gold Trade Note needs some recognizable denomination used like a canvass, on which to put gold paint.

◄$$$ IN THE NEXT CHAPTER SOON TO ARRIVE, THE USECONOMY WILL BE FORCED TO ENDURE A REVERSAL OF A FULL GENERATION OF EXPORTED INFLATION. THE ARRIVAL OF USTREASURY BONDS WILL TRIGGER PRICE INFLATION, NOT FROM THE USFED MONETARY EXPANSION, BUT RATHER FROM A REJECTION OF THE USDOLLAR. YET ANOTHER ECONOMIST BLIND SPOT. $$$

The dirty secret behind Operation Twist run by the USFed in 2012 was to absorb the USTBonds coming home to roost. The USFed QE bond monetization programs were set up to cover the USGovt debt issuance, when foreigners lost their appetite. That was the financial sector response. Next comes the trade sector response, which will avoid the hegemony of banks with SWIFT codes and avoid the omnipresence of the FOREX currency market. The USEconomy will not be pulling the global economy along any longer. It has been mired in a powerful recession for five years. When the USTBonds are shoved back onto the US banks and USGovt to handle, it will be the end of a massive generational cycle, as the United States exported inflation for decades. The reversal of that export lies directly ahead, the long-awaited inflation arrival to the United States. Next that same inflation will be swallowed on the return to sender stage. The USEconomy will be forced to deal with unspeakable price inflation from a deeply devalued USDollar, and deal with supply shortage, and deal with social disorder.

EuroRaj pitched in with comments. The Euro currency is in trouble, but it still facilitates trade within the EuroZone. All fiat currencies at the end of the day are merely a means to facilitate trade, by providing a formal medium of exchange. The Indian Rupee only facilitates trade within India. The Rand facilitates trade with South Africa, backed informally by the once powerful gold industry. The Ruble facilitates trade with Russia and its neighbor nations, backed by immense natural resources of every type in Russia and its Siberian extension. What is about to change with a shattering realization is that a debt-denominated currency, which the USDollar is by default, is not risk-free. The USDollar cannot be saved by the endless free money distributed by the USFed. It is not equivalent to physical money, although its role as legal tender is confused with the money concept. The USFed and Wall Street have been peddling the notion since 1971 that the USDollar is a risk-free currency, and wrongly so. The backlash from USTreasury Bonds returning to the US & UK banks will make for a powerful effect, causing a USDollar deep devaluation with all the nasty price inflation consequences. Therein lies big risk, ignored for three decades. The prevalent currencies should never be used as a means of saving. Gold will become the final means of trade settlement, and the ultimate source vehicle for savings. The global producers will make certain that Gold returns to its historical role.

◄$$$ A MINOR POINT, BUT WORTHY. THE THURBER'S SILVER DINNER SET IS RISING IN PRICE. IT JUST REGISTERED A 24% PRICE HIKE. THE TANGIBLE MARKET REFLECTS SHORTAGE, UNLIKE THE PAPER COMEX NONSENSE PRICE. $$$

A Hat Trick Letter subscriber in the NorthEast US is an avid observer of the sterling flatware silver market. For over three months, Elizabeth has been monitoring Thurber's of Richmond to see if the price changes for a 5-piece sterling silver dinner size place setting of 18th Century. She wonders if the price by Reed & Barton would drop when silver prices dropped, especially when silver price went below $20/oz. In late July, a 5-piece setting cost $600. One week later, it suddenly jumped to $743, despite silver still being mired at the $20 level per ounce, or lower since June. That is a 23.8% increase in a tangible niche market. One must wonder if Reed & Barton are having trouble securing silver for production. In her view, the sterling flatware price move is interesting, since the paper silver markets seem to indicate something completely different. The Jackass agrees. See the Thurber website (CLICK HERE).

◄$$$ AT A COIN SHOW OUTSIDE WASHINGTON DC, PREMIUMS PAID WERE 12.5% ON GOLD EAGLES COINS AND ABOUT 30% FOR SILVER EAGLES. $$$

Another Hat Trick Letter subscriber reported a coin show price effect. JamesS from Ohio attended a coin show in Annandale Virginia. He looked for Gold & Silver coins. The show was very crowded with buyers, but not many sellers could be seen. The gathering had 88 dealers, but very few Gold Eagles were available. The dealers who had them wanted $1500 per gold coin. Based on a recent Friday close of $1333, a hefty premium indeed! The Silver coins with 90% silver were equally scarce. Several counters had Silver Eagles selling at about a 30% premium. You gotta love the field tests, the channel checks.

◄$$$ A BIG UPSIDE MOVE IN GOLD IS SIGNALED BY COXE. INFLATION ON THE STREET IS NOT THE ISSUE. THE DRIVING FORCE IN THE FAST RISING GOLD BULL SOON WILL BE LOST FAITH IN FIAT PAPER CURRENCY, AND THE RECKLESS PERMANENT HYPER MONETARY INFLATION THAT THE MAJOR CENTRAL BANKS ARE STUCK WITH. $$$

Legendary investor Don Coxe, Chairman of Coxe Advisors LLP, and former advisor to the $540 billion BMO Financial Group, has issued a powerful new commentary. He offered a perspective on the gold market, and other things. Cox said the following. "The big banks have the lowest exposure in their short position, one of the lowest exposures in decades. So you have those who know best [the big banks] are no longer short, as a matter of pure business principles, because they see that this just does not make sense, and those who are pure speculators [small investors] with the biggest short position in history. That kind of thing cannot survive if there is going to be any kind of continuation of these expansionary monetary policies. Therefore I do not think it is a matter of if, but when, that we are going to see an upside breakout in gold. I remind you that in the 1970s, the huge breakout in gold did not occur at a time of the worst inflation. It occurs once the people lose faith in the paper money and the policies that are being pursued. You get the rush into gold. The great game is going on at levels where there are big expiring contracts in gold. Our work has been trading in the commodity. I can simply tell you that the drama is unfolding where you have got this gigantic short position. Eventually the shorts are going to get scared. It looks like from my perspective, that we have seen the low in gold. Now we are going to watch who loses the most when gold moves to the upside, which is virtually inevitable."

## THANKS

Thanks to the following for charts StockCharts, Financial Times, UK Independent, Wall Street Journal, Zero Hedge, Business Insider, Calculated Risk, Shadow Govt Statistics, Market Watch, and more.