Disappearing Gold And Silver Inventories Point To Bond Market Turmoil

June 19, 2016

According to Larry Summers 1985 paper on Gibson's Paradox, rising gold and silver prices have historically driven interest rates higher. Also see Gibson's Paradox Revisited: Professor Summers Analyzes Gold Prices

Since January, there has been a 25% increase in the price of silver and and prices of silver producers and silver juniors are 300% to 350% of what they were at the January lows (see mining index graphs at bottom).

Silver inventories are also being rapidly drawn down at the COMEX with claims per oz of vault silver at record highs and registered vault silver bullion holdings at record lows.



https://www.silver-phoenix500.com/article/comex-registered-silver-owners-ounce-jump-record-leverage

Gold and silver metal depletion in London and NY signal much higher metal prices and interest rates coming.

With daily average trading volume of silver on the LBMA of 1.75 billion oz., the open interest of spot market claims for silver at the LBMA are 3x to 5x the size of all global refined silver bullion stockpiles (including the ETFs) -  a new physical market for pricing precious metals is being born.

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Silver Producers



Junior Silver Miners

David Jensen, P.Eng., LL.B., MBA, is a Professional Engineer with a degree in Engineering from the University of Waterloo in Canada (1987). He worked through 1993 on the F-5 Fighter Overhaul program and the Bombardier Regional Jet programs. Mr. Jensen then graduated with a LL.B. degree in corporate and commercial law from the University of Calgary (1997) and an MBA from Univ. of B.C., majoring in Logistics and Supply Chain Management (1999). Returning first to aviation then, after reading Austrian School Economics, Mr. Jensen transitioned to the mining industry from the aerospace industry in 2004 first through his mining industry consultancy, then as Vice President of Corporate Development for Western Copper Corp., and most recently as President and COO of Skyline Gold. Mr. Jensen currently serves as President and COO of a private mining company and provides strategic, operational, risk assessment, and precious metals consulting services through his consultancy, Jensen Strategic.

10 karat gold is 41.7% pure gold.

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