Though the market for paper silver continues to be manipulated and schemed to the advantage of JPM and the other bullion banks, the market for physical silver continues to rapidly increase with each subsequent price decline. The message that the physical market is giving to The Cartel is clear: You may still win the occasional battle but, in the end, you are going to lose the war.
In what may seem a contradiction, The Evil Empire should be grateful for the position limits written into law by the legislation known as The Dodd-Frank Wall Street Reform and Consumer Protection Act. Though the CFTC has continually delayed imposition of the law, time is rapidly approaching where they will be forced to act. And, for the future solvency of the banks, not a moment too soon.
For it has become abundantly clear that global demand for physical silver is rapidly increasing. Demand is now so strong that traditional, seasonal patterns no longer have any impact. The primary driver of physical demand has now become the nonsensical price of paper silver, as determined by the Comex. Silver sales throughout 2011 have remained strong but, in a reversal of previous trends, demand has actually decreased as price rises and increased as price falls.
First, I offer you this from Harvey Organ and the "Silver Doctors":
"The silver metal is on fire with respect to sales. Last month we reported that the USA had sales of 4.4 million oz of silver. Today, the first day of recorded sales, the mint recorded over 3/4 of a million oz. My goodness demand is on fire!!!
The USA must use all silver produced from their mines first to make silver coins. The total supply from USA mining is around 40 million oz or about 3.3 million oz per month. After the mints are satisfied then all remaining supplies will satisfy the Comex, the jewelers, fabricators, and then investors who just wish to hoard silver bricks. If the mint uses up all of domestic supplies it must import silver from Canada and other nations.
But each nation uses its supply to satisfy its own jewelers and investors. No wonder the comex officials heads are spinning as their is a dearth of supplies around the world.
US MINT SELLS NEARLY 3/4 MILLION SILVER EAGLES 1ST DAY OF OCTOBER!
from SilverDoctors by The Doc
Yesterday 10/3, the US Mint sold a whopping 737,000 Silver Eagle 1 oz coins in a single day!
To put this number in perspective, in Dec of 2010 with silver in the mid $20's, the US Mint sold a total of 1,772,000 Silver Eagles FOR THE ENTIRE MONTH OF DECEMBER! Yesterday, on 10/3, with the spot price of silver approximately $31/oz, the US Mint sold 737k Eagles, or 42% of sales for ALL of December 2010!
Sales totals for September are now in as well, at a massive 4,460,500 ounces for the month, the highest monthly sales total since January 2011 (during a massive take-down...seeing the connection here) by nearly 50%!!
If the yesterday's sales pace is continued throughout the rest of 2011 (not to mention the increase we would see with any further sell-off), the US Mint Silver Eagle sales would be nearly 50 Million ounces for the LAST QUARTER OF 2011!
In 2010, the US Mint sold a record 34.662 Million Silver Eagle 1 oz coins."
The current demand at the U.S. mint is simply a continuation of the strong demand seen in September:
The demand is not just a U.S.-based phenomenon, either:
As The Cartel are forced to decrease and/or eliminate their long-standing short positions, prices on the Comex will be left to rise as they finally begin to reflect physical reality.
Now, don't go getting all carried away and excited...yet. The Cartel still has a significant short position that needs to be covered and there can be no assurance that the CFTC will even meet on October 18, much less impose the Dodd-Frank limits. However, this is all nothing but an eventuality. In the end, exponentially increasing demand for physical silver will drive price well into the triple digits. Anyone utilizing this temporary decline in prices to stack additional physical will be well rewarded and protected against the coming, global economic calamity.
9:35 am EDT UPDATE:
A rather bumpy morning but prices are higher. Let's see how the day goes. Keep in mind the tomorrow is BLSBS day. Here's an interesting article I found this morning. It even discusses the PAGE. Btw, there were some rumors about PAGE that I'm happy to disprove. NO, the PAGE opening is not being postponed. It is still on track for Q4 this year.
Have a great day. TF