If gold is being removed from the bullion banks, never to be returned again, it's not the bullion banks who have the problem - it's those who store their allocated or unallocated PMs with those bullion banks.

If push comes to shove and the vaults are one day empty of PMs, won't a force majeure be declared allowing the bullions banks to walk free of any and all claims?

Edit: 32nd!!

In regards to Santa and the June 21 date, did you all see his response yesterday to somebody who emailed him? Totally ridiculous response. From the website:

-------------------

Dear Jim,

Thank you for all you do! Your website is an important part of my day. I have been following you for 4 years now and remember back when you gave the date of June 21, 2012. I wondered if it still held some importance?

I have 9 children and have listened to you and tried to get as prepared as I can so again Thank You.

CIGA Brian

Dear Brian,

Has June not been exciting enough so far?

Jim

---------------------

Translation: I made that date up and hasn't it been so fun watching gold consolidate for the past 6 weeks!?

Why doesn't he simply say "yeah, that was a number of years ago and it is no longer valid..."

"Gold and silver going DOWN today is a VERY GOOD SIGN for tomorrow!!!" (TF)

+1  I agree!

Was thinking of this scenario after the, "Will Tuesday be Terrible or Happy?," thread's comment:  "What a great opportunity, once again, for The Cartels to allow a break out of these patterns." (TF)

(TF) - The Great Turd Ferguson himself!

The only other options would be flat (not gonna happen) and drop further (lower prices can't be sustained due to very high demand, futures internals, etc.,) IMHO.

I am a long suffering silver stacker who believes that in the end the gold/silver ratio will eventually return to the mean of 1-12 or so. However, in the meantime I put faith in the fact that Japan is heavily investing in solar power along with the Chinese, Germany and others, silver has many other uses, oft discussed here, before one even begins factoring in the monetary/barter value.  Joe Public is still not involved in precious metals to any great extent thanks to the MSM and governments are tied to fiat which means more printing & eventual inflation. (Until govts get to the fairytale stage of realising that debts need to be hugely written down, & banksters destroyed, then pgms remain a good hedge imho.) As Martin Armstrong indicated, gold (and therefore silver) remain a good hedge against what your GOVT may do.

This all means that ongoing demand will continue to put some sort of floor under the physical pgm price with plenty of upside. If you have been stacking then it is sensible imho to continue to accumulate physical on any price weakness as often advised by TF.

So the paper price may collapse in a dash for liquidity in any major market sell off, but regularly buying phyzz has to be the right call surely?

Some of you may know of Nadeem Walayat from http://www.marketoracle.co.uk/

This is an excerpt from his recent missive:

Fundamental Inflationary Background

The fundamental background is that of the world markets about to be exposed to another wave of highly inflationary central bank money printing liquidity. I have covered at length over the past few years to explain why deflationists are wrong in their mantra of debt deleveraging deflation that only really exists in their theoretical models, despite REAL and ongoing inflation, the usual suspects from the mainstream press right through to the BlogosFear still continue pounding away at the non existant Deflation argument, despite the fact that even countries such as Greece that have been in economic meltdown have suffered INFLATION (Greece 10% Inflation over the past 3 years).

Pause there for a moment and think about that. Greece has had 10% INFLATION Whilst its economy has collapsed by more than 16%, whilst average workers wages have collapsed by more than 20%. Greece illustrates the difference between the REAL world and THEORY!

I have explained this countless times that the destruction of Supply is greater than the destruction of demand because people who lose their jobs do not stop consuming, and this consumption is financed via debt, deficits and sale of assets which is why Greece has Inflation which is why There Won't be DEFLATION.

Deflationists Really Are Fools

Bluntly, they just don't get! This is the problem when people follow academia, follow theory of what should happen, for academics are good at only one thing which is to write reams and reams of text that drowns out market logic.

Deflationists such as Krugman and his disciples bang on and on about deflation, about destruction of demand, that will result in deflation, about debt deleveraging that will result in deflation. What the deflation fools remain blind to is the fact that the central banks such as the Fed, and the Bank of England have been stuffing every orifice of the deleveraging banks with free money which results in artificial profits as the banks risks / debts are being systematically transferred to the central banks balance sheets. Which is WHY FALLING DEMAND and FALLING WAGES are NOT resulting in Deflation! because in totality, there HAS BEEN NO DEBT DELEVERAGING, TOTAL DEBT IN FACT CONTINUES TO EXPAND as central banks MONETIZE GOVERNMENT DEBT and in some cases EXPOENENTIALLY. And not only that but money printing AKA QE is far worse for an economy than Debt money (bank created credit) because it REALLY has just been conjured out of thin air with no economic activity to justify its creation.

This is why asset prices WILL rise, ALL prices including assets because of central bank QE which should not just be seen as free money for the banks but direct deliberate debasement of the currency. Unlike bank credit It WILL NEVER be destroyed instead feeds the Inflation Mega-trend which I termed in March 2009 as QE really being Quantitative Inflation.

I know this may be getting rather complicated, so if you want to understand only one thing, know this that money printing by central banks is highly inflationary, highly corrosive to the purchasing power of a currency, which is why despite all of the academic reasons why we 'should' have deflation in reality we have INFLATION.

So I will leave the deflation fools to keep crying Deflation all the way to HYPERINFLATION, and even then they will say they were right because AFTER deflation supposedly comes Hyperinflation, despite the fact there never was ANY Deflation, not even for bankrupt Greece.

Hmmmm where will all those Hedge fund/Pension fund billions if more Queasy Money is announced tomorrow?

One on One with Paul Craig Roberts

There has been plenty of calamitous news surrounding the European debt crisis.  Greece is insolvent.  Spain just got a big bank bailout, and Ireland wants a new bailout deal.  No matter how bad it looks in the EU, Paul Craig Roberts says the problems in Europe are “nowhere near as big as the ones here.”  The U.S. is printing massive amounts of money to paper over the mess, but it won’t work.  Roberts says a collapse of the U.S. dollar could happen at any moment.   It could be triggered by any number of things such as war or a derivatives meltdown.  When a former Assistant Treasury Secretary (under the Reagan Administration) and a PhD in economics sounds the alarm bell, people should take cover.  Dr. Roberts says, “The cliff dive we are experiencing in housing isn’t over,” and precious metals prices are “being suppressed.”  Roberts says, “Gold prices should be rising.  Why? Because the debt is rising.”   What is the reason why Dr. Roberts thinks the suppression game has gotten so intense?  Dr.  Roberts says, “The fact that they are driving the price down suggests to me the situation is getting more desperate.”  Greg Hunter interviews Paul Craig Roberts one on one about these subjects and more.

Last year, the Japanese government announced the creation of a national feed-in tariff (FiT) for solar, joining Germany and China in creating robust public policy to drive deployment of renewable energy. The program is set to launch on July 1, 2012 and solar is regarded as one of the brightest spots in the Japanese recovery from the tsunami.

http://oilprice.com/Alternative-Energy/Solar-Energy/Japanese-Solar-Marke...

2 things:

1.  central banks all over the world, especially our Fed, and

2. time.

We just need be patient and keep stacking on dips. 

At this point, we should also be stacking miners (their prices have been stretched far below historic norms relative to PM prices, especially silver).

http://www.cnbc.com/id/47868321

spin

(;

Look at Facebook. On an absolute tear the past week. Up like 5% yesterday or something crazy like that. What a side show.

@Turd, thanks for the confirmation of the SWIFT date.

He makes some good points but misses some important distinctions.  First, the fact that gold competes against fiat currency means it is in the interest of both government and industry to manipulate prices.  This is not true of wheat, for example, where the government will look to crack down on any corruption it finds, rather than encourage it either overtly or covertly.

Second, free gold is about allowing the free market in physical gold, not the fact that price is suppressed.  I don't believe it is that suppressed right now, at least not to a great order of magnitude.  However, once its true value as a store of wealth/savings rises to what it should be, after paper is seen not to be a store of value, and this happens in the WEST, that will drive the value of gold up beyond normal inflation or commodity pricing.  In fact, that is what makes gold unique - it really is only a commodity in a function as money - not on the transaction sense, but the store of value sense.  That has been supplanted for a very long time and moved into financial instruments.  These are now vastly over-extended and over-priced, as the systemic risk is not priced in, and gold's lack of risk is vastly undervalued.  So it is a perception change that will happen - not a price suppression scheme.  That is only a temporary measure to control gold spiking and getting too much attention, and a delaying tactic, just like QE is a delaying tactic.  These things will keep working until one day, much more suddenly than we think, the whole rotten edifice will collapse.

I smell smoke! Something rotten is burning!

Why would the LBMA share holders sell out? After some 100+ years of very profitable business.

Why did the Rothchild's shed their LBMA shares in 1994, ending their 100+ years of membership? 

Could it be that the Chinese and the Hong Kong Exchange have bought an almost empty vault? 

MF Global had a 4.3% stake in the LBMA JP Morgan bought those shares for $34 million, while acting as a trustee in the MFG bankruptcy! They said the auction was open and fair! Yah. Right.

That same 4.3% of the LBMA is now worth $104 million to the 'Morgue', at the sale of the LBMA!

Nice eh? Over a 100%+ profit for the 'Morgue' in not quite one year! Talk about rotten!

The Chinese are melting down the BIG, good for delivery London bars because of just that - they are to big for todays modern gold market. The far east gold market much prefers the one kilo bars. Besides, when the revaluation of gold comes about, and it will, the smaller size bars makes sense for todays global gold markets.    

Question....are they melting the gold...........to make sure it does not contain tungsten ??

A reply from another site about the story:

Of course, even the intel processors have undocumented features that allow code modification without causing an exception 13 or blue screen of death. There are features in the processors that were requested by our government which would give access to supervisory levels within the processor. I found one of them by accident and years later when I actually worked for Intel I found out about the modification/specification put in for the government and they were requested by the NSA, CIA and FBI. They can tap into our computers whenever they feel like it and there's not a thing you can do about it. There is even a hardware feature that will allow changes to the microcode so they can create their own instruction set separate from what regular programmers use. So since the hardware was designed for it, the software had to be written for it. Nice huh?

Fed Will Ease Monetary Policy This Week: Goldman’s Hatzius

The U.S. central bank will most likely ease monetary policy when it meets this week as recent data point to a worsening labor market and the crisis in Europe intensifies, Goldman Sachs said.

Read more: http://www.cnbc.com/id/47868321