Rick Rule - Silver Shortage Continues, Financial Crisis Looms

Get it while you can. We are cornering the physical silver market.

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Rick Rule - Silver Shortage Continues, Financial Crisis Looms

http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2011/6/1_Rick_Rule_-_Silver_Shortage_Continues,_Financial_Crisis_Looms.html



With continued volatility in gold, silver and the US dollar, today King World News interviewed one of the most street-smart pros in the resource sector, Rick Rule Founder of Global Resource Investor now part of the $9 billion strong Sprott Asset Management. When asked if there is still a shortage in the silver market Rule replied, “Yeah I think there is absolute shortage in the physical market. There has been some softness (in the price) which I think is mostly a function of two things, generally a sort of risk off trade as institutional investors in particular have found credit conditions more difficult, and of course the tightening of the margin requirements in the futures markets. But I don’t think that has obviated the near-term physical shortage which has come about from very, very strong retail end user investment demand and a shortage of coin strip.”

Rule continues:

When asked if silver was set up for a rally Rule responded, “I’d have to say yes, in the sense that I see a bunch of circumstances that are bullish for precious metals still, and silver would appear to be the affordable trade in precious metals, the poor man’s gold if you will. It is also the metal that attracts the retail precious metal trader who likes, rather than is repelled by volatility. You and I have joked before, the silver bug is sort of the gold bug on steroids. For the speculator, the current market conditions in the silver trade if one can handle volatility are optimal.”

When asked about gold specifically Rule stated, “Gold is the fear trade and I think there’s a lot out there to be afraid of. Greece of course is dominating the headlines, and I think it’s not so much will a restructuring occur as a when will a restructuring occur? But that’s taking people’s minds off of other topics that are worrisome. An example would be my old home town of San Jose California, an extremely, extremely affluent area, has decided that they are now going to restructure which means (they will) stiff $550 million in bonds.”

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Turk - Metals Will Be Hot This Summer, Gold to Hit New Highs

Turk - Metals Will Be Hot This Summer, Gold to Hit New Highs

http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2011/6/2_Turk_-_Metals_Will_Be_Hot_This_Summer,_Gold_to_Hit_New_Highs.html



With continued volatility in gold and silver, today King World News interviewed James Turk, Founder of GoldMoney out of Germany. When asked if we had seen the lows in the metals Turk stated, “You can never predict how long a correction is going to last or how deep it is going to go, but sometimes you get clues as to when a correction might be ending. What we’ve had is a bullish divergence in gold and silver. So we have a pretty good level of certainty that the low prices in this correction are in place.”

Turk continues:

“We may have a little bit more time to go in terms of backing and filling and I don’t rule out another test of $35 on silver and maybe back into the $1,520’s on gold. But on the other hand gold looks very, very powerful here. It hardly corrected at all compared to silver which is why the ratio has gone back up over 40.

I’m sticking to what I said last time we spoke that this summer is going to surprise a lot of people, how powerful the metals are going to be on the upside.

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Don’t Hold Your Breath

Silver and gold jingle jingle...

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Don’t Hold Your Breath

http://dont-tread-on.me/dont-hold-your-breath/


The above photo is a 1912 Cartoon Against The Coming Federal Reserve.

Financial sanity is returning to the world. The silver bubble has burst. The debt ceiling won’t be raised. The government is going to make trillion dollar cuts in spending. Osama bin Laden is dead, signaling the end to the war on terror. Greece is going to be bailed out. Everything is dollar positive and it is time to dance, right? Don’t hold your breath.

Most bear markets follow the same characteristics. They start with a major wave down, followed by a brief counter trend move to the upside, only to be finished off with an even stronger and final collapse. If you look at the 2008 crash as the first wave down, and the following 3 years after that as the counter trend move, then we are due for the final collapse very soon. The reason is quite simple, none of the problems that caused the crash in 2008, have been corrected. In fact, by all accounts they have gotten much, much worse. Not only are things worse, there is no room for error. A major collapse now would be exacerbated by the fact that all of the safety nets we had in 2008, are destroyed.

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Scotia Mocatta Loses 60% Of Its Physical Silver In One Month

You mean there isn't any physical silver? You don't say. So solly.

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Scotia Mocatta Loses 60% Of Its Physical Silver In One Month

http://www.zerohedge.com/article/scotia-mocatta-loses-60-its-physical-silver-one-month-reclassification-total-comex-registere

About a month ago we indicated that Comex depository Scotia Mocatta "lost" 25% of its Registered (aka Physical) silver after the vault encountered a "reporting reclassification" which saw 5,287,142 ounces of silver moved from Registered to Eligible status, dropping the vault's true holdings from 11.8 million ounces to 6.5 million. Naturally, the response from the peanut gallery was that this was a tempest in a teacup and it was "temporary" and a-ha, any minute it would reverse, and all shall be well, everyone would live happily ever after, and the Comex would actually have silver available for delivery purposes. We decided to not hold our breath. Which after pulling today's most recent Comex warehouse data appears to have been a prudent decision, because for the first time ever total registered silver has dropped below 30 million ounces, after experiencing a 5% overnight drop across the board, primarily driven by yet another 1,456,488 ounce "adjustment" of warehoused silver from Registered To Eligible at Scotia Mocatta. As of last night, total Scotia physical silver was now 4,740,447 ounces, a 24% drop overnight, and a massive 60% drop from the total which we captured on April 20. Still think it's temporary?

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Schiff on todays selloff

Buy physical silver, gold, and platinum. Easy cheesy, don't be sleezy, buy real money it's easy.

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Schiff on todays selloff



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