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First Gold, Now Europe Running Out Of Silver
Earlier we noted that the Austrian mint was on its way to depleting its gold reserves following "panicked buying" from Europeans, who now openly fear the demise of their currency. Now, courtesy of Slim Beleggen, we understand that the situation in the silver market is just as bad and has also spilled over to Germany: the contagion is no longer one of sovereign debt, but of precious metal physical inventory. The primarily silver focused (but holding gold as well) Kronwitter precious metal online retailer is not only not accepting any orders, but has entirely taken down its website.
The only message left for visitors is (translated from German) as follows:
Dear customers,
due to the enormous number of orders we can take at the moment no new
orders via the Internet, email or fax contrary. All previously purchased and paid for coins are shipped. In order not to delay the extradition unnecessary to ask is to refrain from requesting payment or tracking number. When shipped our you will automatically receive a shipping confirmation. We hope to do everything within two days and then re-open the shop to buy. Thank you for your understanding. Marie-Luise Kronwit
Soon coming to an LBMA vault near you - a run on physical and a total collapse of the 100x diluted Precious Metal market.
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I won't
But I think you are early by 1-3 years.
Yeah maybe. However it is not really something to try and time when the signals are present and the conditions are ripe. I'd rather be early.
About ten years ago, after reading "The Great Reckoning" by Lord Rees-Moog, wherein all that is now happening was predicted ( he was early, ok? ) I sold a car for gold. It was very difficult to say who got a good deal, as the value of the car was fuzzy, and the purity of the gold was suspect. If such bartering becomes the norm, one will need scales, gold testing equipment, good math skills, and sharp wits.
... and well maintained arms fast at hand.
With Gordon Brown out of the picture. We can only watch in paralyzed amazement on the next comedy segment titled "Great Britain's Crisis and lack of Gold."
Postal Gold
http://www.youtube.com/watch?v=g9e0rDdKf3I
Not sure how serious this is. Silver and gold bullion is more difficult to get a hand on in the Netherlands (and Belgium, where slimbeleggen.net is from) atm, but I have no idea how this is in Germany. Neither does slimbeleggen.net, otherwise they would have put slightly more effort into this post than just google-translating it. They are in the business of selling advice and weekly newsletters, and their website is a nice collection of translated ZH articles. I don't mind that all btw, because the MSM there is a bunch of spineless morons who still can't figure out what the EU bail-out really means and refuse to ask any relevant questions. So any help in awakening the general public is helpful
This german outlet appears to be still selling silver bullion: http://www.muenzhandel-ortner.de/Investorcoins/Silvercoins/USA:::284_635...
I get mine at the Coin collectors/numismatic outlets. They know the value of silver or gold but it's a side catch for them. No big volumes of course, but that suits my wallet well. And they are used to customers paying in cash
How could one justify owning PM's at this point in time?
Oh, how convenient, Jim Willie has compiled a list!
Still very prevalent misperceptions out there about "gold bulls" "gold bugs" "everyone is buying so you should be selling"...... hehe
What's happening today is a serious, serious blow to The Matrix. Eyes that have never seen the world the way it truly is are opening to the harsh light of the new day. It's been snowballing ever since the 2000 bubble but picked up big steam in 2008. It all spells out that anybody with "cash wealth" is scared shitless about not losing it. They see currency markets gone wild, government and banksters gone wild, record market crashes, burst bubbles all around, turmoil and no clear path to resolution. So first of all they're losing faith in all assets tied to currency, any currency, re-allocating to currency-INDependant assets ie PMs where gold is king. Stocks, real estate and bonds are tied to currency and not just because they're denominated in currency, but because their perceived value is fully directly proportional to the currency's perceived value. Try selling stock or bonds from a "good company" in a collapsing currency, sorry, there has to be a giant risk premium built in. Not with gold. Gold is independent of the risk. Including political risk, which will grow during the next phase of the crisis.
Everyone else, is sharing their approach. So here is one step in how I am preparing for the next step in the break down process.
Instead of thinking retail, think of owning a supply. If you are going to be a real gold bug, do you have your own mine yet? It's not as easy as filing a non patented claim in the forest, but if you do your research, you can find an amazing historic patented claim far away from the average city dweller as to be invisible.
I have a slice of a historical gold mine from the late 1800's in a western US state. It produced a couple of thousand oz from a near surface pocket pre 1930, and currently has a couple of thousand oz in bulk ore at/near the surface, via geology and sample tests.
Its a patented 20 acre claim in the middle of a BLM timber forest held in an LLC and paid off. The property has year around water both natural and from inside of the historic workings, and marketable timber growing on it.
It is around 2500 ft of elavation, and reasonably near a major freeway, but at the same time, about as far from a major city as you can get. The LLC has no debt, raised its investment capital from its partners, and is funded to handle the carry costs. We intentionally left a couple of partner blocks open, incase we needed to raise more cash capital for the project.
Its amazing what you can grow inside of historic portals year around via a little power. Year around growing conditions are the same, inside of a mine. Typically around 56 degrees, where we are.
If you think outside of the box, the rules change.
Outside the box or inside the box..How many people are going back to get that ring or gold necklace there dumbass threw in the grave at the funeral? Also, alot of once sacred battle sites will be dug up, civil war type sites etc...Man, they have done messed around and gave farmers and everybody this damn internet..I bet they are regretting that 1..
You can always buy pussy with gold; whether it is compounded into jewelry or slabs. Run out of gold and you have no pussy. I don't give a fuck how big your house is or what kind of car you drive.
This is true.
I would never exchange gold for pussy. pussy can have my fiat, but not my gold.
Pushing People into Gold limits the supply of Money. It also helps keep Inflation in control. Less Money being spent but Hoarded in Gold reduces spending.
Not so sure about this - buying gold is spending 'money', you are just transferring your fiatscos to some other poor sod who must go out and pass them off to the next person.
It's just a game of pass-the-parcel, only there's nothing of subtance left in the parcel (besides paper wrappings) when the music stops.
California should re start panning for Gold. They could buy themselves out of their Fiscal Situation.
Chris Martenson commentary:
Under what circumstances would I consider transitioning away from gold and silver as my preferred means of preserving my wealth? I would want to see four things:
As you can tell, it may be quite a while before I can finally unwind my gold trade.
Which means I am going to be giving remarkably boring advice for a long time.
http://www.financialsense.com/Market/wrapup.htm
Mr. Martenson is going to have to wait for our global road trip through hell to conclude before he gets the things on that list, and we just got on the highway. Are we there yet?
So they swapped some euros for bucks. Gapped the currency up Sunday night and bought gold on the dip. All of it. They short the currency to death leveraging swapped dollars and use the gold to preserve inertia till the next currency starts?
Ok maybe the second beer was too much tonight.
http://in.reuters.com/article/domesticNews/idINLDE64B28Y20100512?pageNum...
If you read this with a straight, forward, top spin, banks are buying for "resale".
If you read this with bottom or back spin, banks are rebuilding PM reserves.
Hard to run a bank on just paper promises of reserves built upon PIIGS bonds, Euro-tissue and dooolare tissue.
Some of you may want to visit Abu Dhabi hotel. They seem to have an ATM dispensing gold.
http://www.usatoday.com/travel/hotels/2010-05-12-abu-dhabi-gold-atm_N.ht...
GOLD is up 400% in 7 years. I can names 100s of STOCKS( paper) up 400% in the last 52 WEEKS
wake up beeutches...gold is not a bubble. its a currency of real money. the fact so many people continue to doubt it shows you its nowhere close to topping. the real bubble is fiat currencies
gold is demanded worldwide. when the streets are full of panic in every country with people buying gold than you know the MANIA will have commenced to the last parabolic stage.
there is NO REASON to ever sell gold until governments live within means and stop expanding their defecits
i can see gold going to 5-10k no problem........25k if a currency of a major country collapses.
how many of you will have SOLD before hand because you still don't get it.
there is NO LIMIT to how high gold can go once the WORLD consciousness ( not just western countries) understands the fiat ponzi scheme infiltrated on all via capitalism
What if it's the US of A?
So with the sacrafice of -say- Portugal, INDIA is going to suddenly become a G7 economy?
(all you have to do is melt down all those pagan idols)
...as referenced earlier in these comments by others, i must offer my recommendation as well for this most insightful read, and a true instrument to put our current situation in historical context:
http://cgi.ebay.com/Fiat-Paper-Money-History-Evolution-our-Currency-/260601023593?cmd=ViewItem&pt=US_Nonfiction_Book&hash=item3cad080c69
...we are not the first, and will undoubtedly be the last, humans to feel the attraction, followed by the repulsion of the paper fiat currency.
unwinding is going to be a bitch, friends.
educate yourself.
educate others.
Cash 4 gold are government goon sponsored voluntary confiscation of real monetary stores of value! Precious metals!! Just think about the FDR'd crowd of '33 when all the gold was called in and after that the wankster gangster bankster goons had the demoncraps under FDR jack up the price by 75%; 20 USD to 35 USD! I'd get ready for another extended banking holiday for bankster windfalls on hard currency under the demoncraps! Need lots'uv funds from the vermin to buy all the seats they can mid term November!! Vote for real change and keep real monetary stores of value in we the peoples hands!! It would be nice to have the banksters get stuck with all the worthless paper they've circulated when they pull the plug on the paper pulp fiction ponzi illusion on the worth of glue, ink, and thin air promises!!
That's choice!
Choice is not being stuck with worthless bags of paper pulped fiction dino doo the goons always leave citizens with when paper goes bad!! Wonder how the greeks feel who have physical gold/silver to barter for goods and services with all the extra trillion in paper leap frogging for the same stuff! Having read your former comments it obvious you know the score on real monetary store of value and what's worthless when the world wide financial system implodes from the vaporization top down to paper ponzi foundation!! Cooking the books for dummies keeps it very difficult to sell ice cubes on the suns surface!! We're in deep dino doo and your track record for gold/silver for money stands as histories monetary store of value hands down or long poll up the tail pipe from wankster gangster banksters in conjunction with dead head fed goons who would sell their body parts if the price was right!! For now they're satisfied with selling DIMMS down the road and their body parts!! Dumb ignorant mental midget sheeple=DIMMS getting dimmer by the day!!
Folks, get out of debt. Do not get caught owing any US Dollars or Euros on any asset that you want to keep.
This guy I know: no credit card, not even a credit report. ;) That's what I call off the grid.
Sounds like a real economic terrorist --- you know, one of those "evil doers"! Doesn't he know that it is positively PATRIOTIC to not only be in debt, but to actively and continually seek to be further and further into debt? Why, it's the American Way!
"My charge card 'tis of thee
sweet tool of usury
of thee I sing.
Land where my credit died
land of the card: DENIED
from lampposts far and wide
let banksters swing!"
catchy
That was impressive!
What do folks here think will happen to these debts?
Suppose I have 50% or so equity in a house and owe $100k on the mortgage.
What happens if the dollar devalues?
History repeats itself. Same model & same outcome.
Fed Copies Weimar Hyperinflation - Feb 2008
http://www.youtube.com/watch?v=AMY3aJwhfqg
If you think this is not coming to the US, you're a product contributing to this problem.
There are several recent reasons for silvers recent runup.
1) Gold is surging due to recent $1 Trillion Europe Bailout and huge demand for precious metals by Europeans.
2) Scramble by a hedge fund to cover 10 Million ounce short.
3) JP Morgan investigation for manuipulation of silver market. They can no longer hold the price by shorting more paper while under investigation.
Smart money knows they are dead in the water as any attempt to cover will cause an exposion in the silver price.
4) Central Fund $375 MM raise yesterday means they needed almost 10 million ounces of silver. This has essentially dried up any supply to the Comex and LBMA.
5) SLV is way behind in obtaining physical silver bars to allocate to its ETF holdings. Estimates on how much they still need varies but I would guess its as much as 50 MM ounces.
6) Essentially the silver coffers are dry amongst record demand. It will take prices well above $50 oz to draw any silver back out into the market.
Good points. I think the banks will try and scare out the weak hands before an explosion higher in PMs. However, PM holders are less likely to cave-in as quickly as equity shorts.
Also, I don't think there is as many day trading shorts in general equities to be taken out in the markets in general as with earlier ramp ups-lessons learned. Thus the algos ramps might not have the prior momentum with less squueezes to propel them. We'll see.
Capstone's Bourne Discusses Gold, Inflation, Treasuries
http://www.bloomberg.com/avp/avp.htm?N=video&T=Capstone%26%2339%3Bs+Bour...
First Majestic charges $25.00 to slap on its stamp.
Q: Can you give an example of custom work you have performed for another company?
A: Monarch Precious Metals has produced custom 50 oz silver bars for First Majestic Silver Corp of Canada. A photo sample of these custom bars can be seen below. First Majestic's bullion order site can be found here.
http://www.monarchpreciousmetals.com/index.php?option=com_content&view=article&id=48&Itemid=55
http://www.marketoracle.co.uk/Article19442.html
I'm not a huge Jim W fan, but this is a great article to forward on to the less....aware. It breaks down the issues into bite size morsels. Good article.
Hey fellow ZHer's it looks like we're barking up the wrong tree. An article by Michael Levy. Who is Michael Levy? According to the article:
"Michael Levy is a professional optimist, his philosophy of life is one of joyful optimism. He is an international radio host and the author of nine inspirational books. Michael's poetry and essays grace many web sites, newspapers, journals and magazines throughout the world. He is a prominent speaker on health and wellness maintenance, stress eradication, wealth creation and development, authentic happiness and inspirational poetry. "
http://www.americanchronicle.com/articles/view/155950
Take that Gordon Gekko!!
Thanks for the chuckle. Mr. Levy starts with, "You cannot eat it, it pays no interest, however, you can gamble with it to try and make your fortune." I see his CV doesn't mention economics -- for that his piece cannot be taken seriously. He ought to stick to reviews of Berkenstocks. Wonder how he feels about that?
What a maroon. I guess he prefers quiche and bean sprouts. Wonder how the ZH ladies would like to be married to this clown?
Professional Optimist...!?
I live in British Columbia, where we grow what "professional optimists" smoke.
Nothing like a cloud of pot smoke to obscure the view of reality!
"professional optimist"...*smirk*
I find it difficult to describe the subtle beauty and intellectual richness found on his personal web site. His about page is particularly interesting: http://www.pointoflife.com/author.html
"His lack of education makes his philosophy quite unique in a modern world, where everything is analyzed and sophisticated by experts until all true meaning is drained away."
Unique indeed.
For anyone with a background in search engine marketing, you'll definitely want to scroll down to the bottom of his home page too. I hope Mr. Levy paid well for the services of the web designer and marketing expert that built this site.
Lastly, since this is my first post on ZH, please find my obligatory "Gold, bitches!" statement below.
Gold, bitches!
GOLD BITCHES! right back at ya.
Another internet German gold/silver shop completely out of gold/silver:
http://gold-silver.us/forum/gold/1000-euro-gold-is-here-(in-the-real-world)/
Too bad Ben cannot throw out Gold & Silver pieces from his helicopter like he did Dollar notes.
Finally people will know the real worth of what he cannot manufacture/print and disperse.
Load a helicopter up with gold and/or silver, and it will not get off the ground! That is the key to real money (helicopters cannot transport it).
here is a link to some creative writing from 10 years ago. The silver mushroom cloud the first month.
http://www.silver-investor.com/charlessavoie/Mushroom.htm
puts a smile on my face.
Check out the new Chinese movie "Empire of Silver", it's set in early 19th century when they switch from silver to paper money and what happens afterwards.
I think the dam is breaking and people are realizing how much of a ponzi scheme the markets are. Also in europe the people know damn good and well that if it took them this long to figure out a bailout for Greece (which the money hasn't been dispersed yet, I'll see it before I believe it), how long will it take for them to agree to say Spain for an amount of 300 billion dollars from there members, or more. And then where getting the rumor of Germany thinking about getting out of the Euro and back to their currency (Since Germany is the big cheese in the Euro). I think the betters know that the Euro is toast and are trying to position themselves to get out with as much value as possible.
Personally, I have a "subway test" to determine if something like gold or silver is really in bubble territory. I sit (or stand) and look at the doofi occupying the car with me and try to imagine each of them bellying up to a coin dealer's counter with hot sweaty FRN's in their ham-fisted paws. In almost all cases, the answer is a resounding "no way!"
Most of us here are gold- and silver-savvy, so the talk here leans toward the positives of gold and pm's. In a sense, we are preaching to the choir. We know what's coming down the pike at full force, but the average subway rat has no clue. Gold, to most of them, is 10k bling that turns one's skin green. Sometimes, I feel sorry for them, but most of the time, I just smile at the thought of the discredited Keynesians desparately trying to give me worthless paper dollars for food someday.
Gold bubble? Silver bubble? Snicker. Not even a little froth.
Updated DOW charts showing recent buying support:
http://www.zerohedge.com/forum/latest-market-outlook-0
http://stockmarket618.wordpress.com
Jesus, stop spamming ZeroHedge with your charts.
How fast can you exit your gold position?
Its about 2.5 hours drive to the nearest gold silver refinery, i guess maybe a day or two hitchhiking...
thumbs up????
If gold / silver ever becomes a real threat to fiat currency and the existing establishment you can expect the following in the news....
"Today, 1 million dollars in gold was seized from Mr. Terrorist"
Obviously, the goverment will have to respond by making any transaction in gold above $xxxx.xx illegal. X = whatever value they seem is enough to kill the gold market.
They are already doing it with fiat.
Today Greeks realized that this benefit is back, but now they will have to pay it directly through their... electricity bill (!!!). There's a small surcharge in the electric bill that says "customs workers' benefit".
NOBODY can copy Greece. We' re the champions of fraud, and Papandreou lies to the entire western community.
Well, the benefit for arriving to work in time is indeed genious. Punishing those who arrive late would be cheaper, though.
In all of this discussion and disclosure, remember:
friends may come and go but, enemies tend to accumulate . . .
Excuse me if this was already posted. I noticed yesterday that Silver was Backward, though never mentioned in the Media. The only Metal that was.
THURSDAY
NYSE Silver Jul 10 19.506 19.642 19.410 19.618 -0.042 07:42 Q C O T NYSE Silver Sep 10 19.479 19.605 19.474 19.602 -0.091 07:21 Q C O T==========================================
NYSE Silver Jul 10 19.299 19.719 19.119 19.685 +0.393 09:43 Q C O T NYSE Silver Sep 10 19.335 19.335 19.335 19.335 +0.012 00:17 Q C O TYESTERDAY / WED
Interesting, but my guess is they are trying to hold it off until after the novemeber elections. But we'll see...surely we will. If it doesn't implode soon, then it means the price should get much higher to buy back physical stock to meet the demands of Europeans now waking up to the crisis.
You can restock, but at what price? Eventually that game won't work either if every restock pushes gold higher a few hundred dollars/oz.
Of course it will be a much higher move than that if they fail at repurchasing gold to meet the demand. 100x leverage does that.
Then again the stock market could crash at any time, but probably not until after the ECB money is gone through. But it keeps buying less everytime. So it could be sooner rather than later. Interesting times. The variability in EVERYTHING is huge. Black Swans that can both push up and down so many areas.
Nothing would surprise me.
Nor would a combination of letting two polar opposites collide with each other. Part of me when thinking 'outside of the box', says the exit strategy of last resort is to allow the debt (which debt?) to default at the same time the 100x leveraged precious metals implodes. So you have trillions or quadrillions of dollars and/or other fiat currencies evaporate at the time gold goes hyperinflationary with 100x leverage.
Then hope that with 1/100th of the dollars floating around means with 1/100th the gold out there, everything is even steven. I just have a feeling something like this might be tried. It would be a stupid idea imo, and I hope our monetarists aren't that stupid. But nothing has shown me to think otherwise in terms of stupidity. But this scenario is far out in left field thinking, not something I expect to happen. Just a feeling of what is possible.
After all, when the market prices in that there is just 1/100th of the gold out there, something major will have to happen. Maybe that's their ace in the hole. The thinking we can print, and print, and print to try to get the monetarist game going again, but if we fail, there was no other alternative since it was going to implode anyways, so if we overshoot, we can just destroy the debt making the dollar more valuable and gold less valuable. I wonder how many dollars, via debt and derivatives would have to be wiped off the books to make gold realized at 1/100th supply and have gold prices stay within 50 percent up or down from where they are now?
Maybe it can't happen. But quadrillions in derivatives and 100x gold leverage just seem to be two huge things that might be relatively equal...in the minds of the monetarists. Or not, and I'm completely off. But it does seem these are two chips on the table fwiw.
The Germans & Austrians have to put what wealth they have left into something their insane drunken-sailor neighbors can't destroy. The Euro is obviously the next great currency failure-in-progress and they're trapped on the sinking ship.
I don't spend a lot of time watching the MSM news (or what they pass off as news), but it blows me away... AGAIN... that "Holy Shit!!" news like this doesn't seem to qualify for mainstream comment.
Maybe if Brad Pitt & Angelina Jolie were spotted lining up somewhere to buy bullion the idiot masses would "get it". But then again... probably not.
On a different but related note, there hasn't been a peep out of the middle east lately about re-pricing oil in Euros and establishing the Euro as a second global reserve currency. Any conspiracy theorists out there think the Fed had a different, secret role in the PIIGS debacle?
http://www.kronwitter-muenzen.de is back up.
http://silver-dollars.com likewise.