Silver Market Updates: Bank for International Settlements Data Ignored

by: Jason Hommel

Once again, the BIS data on derivatives is totally ignored by all gold and silver market participants and commentators. Nobody mentioned this new BIS data update from my last newsletter. The BIS data proves the huge extent of the fraud in the banking system, particularly in all forms of paper silver accounts.

The “other precious metals” derivatives notional value, which are mostly all silver, (but also tiny amounts of platinum and palladium) grew, over the last 6 months, from $96 billion to $203 billion, for an increase of $107 billion. But the size of the silver market cannot be significantly larger than annual production, which stands at about 600 million ounces, x $17/oz. = $10 billion.

Simple question: How can the banks of the world, owe $107 billion more in brand new “mostly silver” derivatives positions over a 6 month time frame, given that world annual production stands at a mere $10 billion, without that silver being mostly all fraud? http://www.bis.org/statistics/otcder/dt21c22a.pdf

Scroll to the last chart.

This “paper silver selling” is fraud, it is inflation, it is hyperinflation, it diverts investment demand away from real physical silver. This paper silver selling suppresses real silver prices. If you own such paper silver, you are acting to help suppress silver prices, and you are actively working against your own best interests, as you are directly lending to the very people who are short selling silver.

Many people ask me, “When will the short selling of silver end?” It will end when you, the collective “you” in the marketplace, stop giving them the silver to short sell! I have had many conversations with people who own this kind of paper silver. They think their bank will not default on them. They have already defaulted. They just released the numbers which prove they cannot possibly have the silver.

If any commercial bank or brokerage house is storing your silver for you, it is likely NOT THERE, and is likely ALL FRAUD. Furthermore, if you are letting any 3rd party hold your silver for you, it is likely the least safe place to store silver, as all silver held by other people is likely to be the first form of silver to be confiscated in any sort of national emergency.

They cannot confiscate what they cannot find, which is why you must put your silver into your own vault in your own property. Bolt down the vault from the inside, and consider building a cabinet of some sort around it, or carpet over it, or put up a wall over it.

Tags: silver market updates