SD Bullion

JP Morgan to Take Over GLD and SLV Both?

This last Friday morning, the US government's Bureau of Labor and Statistics published a positive high-hiring jobs report that, upon further review, was a statistical canard. Akin to the statistical lies and obfuscations used when reporting official price inflation data (CPI) by the BLS. 

With just less than a month remaining in this year, 2022, it will be interesting to see if the four primary precious metals can continue their recent rallies and all finish with positive performance for what has been a mixed-up and down year for the most part.

Looking at the average domestic USA citizen, the US savings rate is now hitting a 21st Century low level, signifying stretched budgets.

Outstanding credit card loans are at nominal record high levels and likely to climb until a full-on recession finally rears its ugly head, perhaps next year.

So the COMEX Just Bribes the CFTC?

Terry Duffy, the CEO in charge of the CME Group's COMEX NYMEX futures markets, has recently been doing victory laps on podcast interviews and in major media TV channel segments dunking on the ongoing FTX and SBF cryptocurrency exchange failure.

 

Last week, in perhaps one of the more bizarre Freudian slips, T-Duff, as I’ll nickname him here. He just blurted to Tucker Carlson and FOX viewers that he bribes the CFTC, the supposed regulator of the futures commodity derivative markets in the USA. 

2022 Silver Market Headed for Biggeset Deficit in Decades

The financial world learned last week that the global silver market in 2022 is headed for its biggest supply deficit in decades. Silver supplies are shrinking to meet outsized demand.

The Silver Institute made headlines stating that worldwide silver demand is on track to eclipse 1.2 billion ounces in 2022, up an additional +16% from already historically high levels reached last year in 2021.

Here we will dig into some of this all-time high silver demand data, as well as news related to record high price inflation ongoing and the breakneck speed at the fiat Federal Reserve and central banks around the world are testing and launching their fiat Central Bank Digital Currency programs.

How To Lose $15 Billion in Crypto in 10 Days?

Last week, it was impossible not to stop and stare in awe at the still floating but sinking dumpster fire in the cryptocurrency market in 2022. As the second largest cryptocurrency exchange in the world, FTX imploded and filed for bankruptcy.

Its CEO Sam Bankman-Fried resigned in disgrace, likely prison-bound.

So to start this week's SD Bullion Market Update, let's unthread a bit about this train wreck starting from earlier this year.

Nine days ago, a leaked balance sheet showed Alameda Research, Bankman-Fried's crypto trading hedge fund, heavily depended on the then-second-largest cryptocurrency exchange, FTX's native token, FTT.

This week, industry rumors injected on Twitter by the CEO of the world's still largest cryptocurrency exchange Binance helped collapse the FTX token's value by -72% within 48 hours.

Bankrupt FTX's now resigned CEO’s estimated net worth 'for charity' (of course), flash crashed to near nothing from an estimated $15 billion to begin this week.

Central Banks Continue to Buy Gold Bullion at Record Highs

Central banks are reportedly on pace this year to buy more gold bullion since the last official gold price rigging scheme collapsed (London Gold Pool 1960-1968, as the US dollar gold spot price multiplied 24Xs to follow by early 1980, running from $35 oz to $850 oz in about a dozen years).

Last week, a Q3 2022 report by the World Gold Council stated that nearly 400 metric tonnes of gold bullion got bought up by central banks. 

This year's central bank gold bullion buying pace is at a 55-year record high level ever since before the last official gold price rigging scheme in London fell apart in 1968 (more on that failed scheme in this week’s bullion market video update).

Only 50% Of COMEX Silver Available for Delivery?

In the second half of this week’s update, we make a building case for how the world is understandably unaware of a building shortage in readily available reasonably priced bullion products, not merely from small size (IE: silver bars, silver coins and silver rounds) but eventually to even institutional and industrial large-sized bullion bars.

This year’s commodity price selloffs with relative fiat US dollar strength have helped quiet headlines about many ongoing constraints here and to come. Shortages will continue to be a growing issue in the commodities and energies we need. In the coming fiat dollar bear market, that will become painfully obvious.

One only has to look back over the past decade-plus to understand how supply shortages in metals and energy have happened.

Silver Bullion Being Airlifted to Meet Eastern Demand

The LBMA, or London Bullion Market Association, held its annual conference in Lisbon, Portugal, this past week.

Over 700 attendees were present. Many of them have traded precious metals derivatives in their careers, according to the LBMA's Ruth Crowell years back. Yet, many have never actually seen or touched a large good delivery gold bar throughout their professional work lives.

One of this week's LBMA conference attendees, Nicky Shiels from Pamp Suisse, took to Twitter to give insights on what she saw and heard in Lisbon.

To corroborate her claims. This past week we got an update on Indian Silver Bullion Import figures through September 2022. India imported their second-highest monthly silver bullion importation figure, consuming over 56 million ounces.

Chart: It Hasn’t Been This Bad in 100 Years

In just over 24 hours last week, US Treasury secretary Janet Yellen's financial markets are operating in a fine line, changed to concern about the loss of adequate liquidity in the US Treasury market.

Many believe this is a forewarning that the fiat Federal Reserve and US Treasury will begin bailing out the largest bond market in the world with another seemingly infinite QE cycle to come soon.

The interest rates on USA IOUs have been screaming higher, yet in real terms, they have been some of the most significant losing investments this year. The yields across the curve have yet to even hit the underreported core PCE price inflation rate.

COMEX Silver Vault Inventories Continue to be Depleted

Last week began with a big rally in the daily silver prices, up nearly +9% this past Monday alone.

You have to look back to late 2008 silver price action, as the first round of quantitative easing began by the fiat Federal Reserve to see a one-day positive percentage move of similar size. 

In our update this week, we will update a few key silver market inventory points after we show a clip of how CNBC in India covered this positive silver price action late last week. 

Silver in fiat rupee terms is not far from its all-time nominal record high. The same can be said about gold in fiat rupee terms in India. 

Bank of England Stepping in to Bail Out UK Pension Funds

The United Kingdom's debt market and the fiat British Pound took further historic losses this past week as the pound spiked downwards to an all-time low versus the fiat US dollar. The Bank of England had to intervene and begin buying its debt as it faced systemwide pension defaults if it had not done so.

Kerrin Rosenberg, Cardano Investment chief executive, stated, “If there was no intervention today, gilt yields could have gone up to 7-8% from 4.5% this morning, and in that situation, around 90% of UK pension funds would have run out of collateral. They would have been wiped out.”

As the fiat Federal Reserve continues hiking rates faster than at any point in the last four decades, it seems like a weekly news item that something blows up somewhere in global financial markets.