Saturday, August 25, 2012

Harvey Organ: The Moment London is Out of Silver, the COMEX Will Be Out in a Nano-Second!

Harvey Organ joins us for an explosive interview discussing this week’s breakout in gold and silver, the developing ‘TREMENDOUS PHYSICAL SHORTAGE‘ in the silver market, and concerns with unallocated gold and silver accounts, which Harvey describes as nothing but paper notes and obligations.
Harvey also discussed recent reports that the LBMA is refusing to deliver silver outside of the LBMA system: They won’t deliver it outside of the system because there is no silver! That’s a real crisis! The moment London is out of metal, the COMEX will be out in a nano-second!
Click here for the FULL MUST LISTEN interview with Harvey Organ :
When asked about this week’s big moves in gold and silver and whether we are witnessing the start of a historic rally in the metals Harvey responded:
No question. The key development that Ned Naylor-Leyland discovered is this big physical purchase of silver that had to be settled INSIDE of the LBMA. They won’t deliver it outside of the system because there is no silver! That’s a real crisis! I’ve always advised the CFTC that the moment London is out of metal, the COMEX will be out in a nano-second! It will travel across the pond as quickly as possible and could cause a default of the COMEX.
This is why you’re seeing massive movements of silver in the vaults, all over the place. Every day there’s been over a million ounces moving around. Whenever you start seeing that, then you know there’s trouble. It’s Peter robbing Paul to pay somebody else. It’s just going on, and on, and on, and it’s now coming home to roost. And our friend the banks – JPM have their hands full!

Harvey goes on to discuss the physical shortage developing in the silver market:
Eric Sprott still hasn’t got his silver yet. I can’t remember exactly how much, but he’s still short on his order. He hasn’t completed it yet as of last week. I’m telling you, there’s a TREMENDOUS PHYSICAL SHORTAGE out there, and it’s reflected in the price rising. The price of silver has been closing at it’s highs at the COMEX close which is very positive.
Now I expect a little raid Friday. The bankers are trying to quell the HUGE DEMAND so I expect a raid to try to smash the price down, because the shortfall for Morgan is just annihilating them!
They have problems on their interest rate swaps which are killing them! They have $ Trillions of interest rate swaps and they’re short the 10 year T-bond. That’s been hurting them because of the rate of movement of the yield caught them off guard. They lost on that, they lost on their IG9 London Whale trade, and now the rise in silver. That’s three whamo’s against them, and they’re sweating bullets! It’s certainly reflecting now in the silver and gold price.

Harvey also discussed Ted Butler’s recent claims that the other commercial banks have turned on JP Morgan:
They’re all trying for their survival. Ted Butler calls them the Raptors. The two major guys in silver and gold are HSBC and JP Morgan. They’re the Kingpins. Now the other guys are saying ‘We’ve got to survive ourselves!’. You can just see them going in themselves and purchasing! And you’ll notice that on the COMEX the open interest has been trending different than gold! The OI in gold is near it’s low for 3 years, yet the OI in silver is near it’s record high! This will explain why there’s certain guys in the know who are taking on our boys, the two big guys. It’s very exciting to watch!
The SLV went up for the first time in quite a while today, about a 1.5 million ounces! The GLD has been rising every day. I don’t think it’s real, it’s just paper going in, but that’s a different matter. I’ve always stated that the GLD and SLV are absolute frauds! If you open up their vaults, you’re going to see nothing but paper notes and obligations. The poor shareholders are going to end up with nothing when this thing implodes!

Harvey also discusses Romney’s threat to fire Bernanke and what it means to Fed monetary policy prior to the elections, the Republican party’s announcement that a ‘gold commission’ to return the US to a gold standard will be official Republican policy and much more.
Listen to full interview:

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