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Jim Cook

 

RUNAWAY SOCIAL SYMPATHY

Every once in a while I switch the TV channel from Fox to CNBC to see what the liberals are saying.  After listening awhile I get a deep sense of hopelessness and foreboding for our country.  The most important thing for the left is giving money to people.  They are happy to see the growth of food stamps, disability payments, housing subsidies, free healthcare and all the other welfare benefits.  They utterly fail to see the damage it is doing to the recipients.  Whole cities that once flourished have deteriorated into rotting eyesores populated with shambling hulks of chemically dependent drones.  These people are no longer employable.  They have become incompetent and helpless and the liberals can’t see that it’s their doing.

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Ted Butler Commentary
February 27, 2015
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ONCE AGAIN, TO THE BRINK

Oddly enough, there have been withdrawals of silver from the exchange traded fund SLV when there should have been deposits. Metal was not deposited into SLV while it was deposited into GLD under remarkably similar trading circumstances. The most plausible explanation is that gold was available for deposit, while silver was not. Even if the delay in SLV is relatively short it is clear that there was a delay in depositing silver while there was no delay in gold. Even when the price of silver surges and volume explodes deposits of metal are still not forthcoming into the trust. Big silver metal deposits of six million ounces should have been made into the SLV on some trading days. As of now, no deposits have been reported. The word for the inability to deliver a physical commodity in a timely manner is shortage.

On the other hand, almost seven million ounces were removed from the SLV on a single trading day. This continuous withdrawal of metal from SLV may have to do with the conversion of shares into metal to avoid the SEC’s 5% share ownership reporting requirements by a big buyer (likely JPMorgan). That’s bullish, not bearish.

Because there is so much less available silver than gold in the world as a result of a half-century of deficit industrial consumption and because silver is the one true dual use commodity (industrial and investment), any burst of investment demand will trip off a shortage. Well guess what – we just got a burst of investment demand last Friday in SLV and what resulted can reasonably be termed a shortage; maybe not a big and lasting shortage, but certainly within the true meaning of the word. Like most anything else, shortage is a matter of degree and it’s easy for a mild shortage to change into a severe shortage.

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