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Chinese Gold Exchange Sold Out - Begins Importing From Switzerland

Tyler Durden's picture


Submitted by Michael Krieger of Liberty Blitzkrieg blog,

Chinese Gold & Silver Exchange Society Runs Out of Gold... Importing from Switzerland and London

Hong Kong’s Chinese Gold & Silver Exchange Society has been in operations for over a century, and it’s President Haywood Cheung was interviewed by Bloomberg news earlier today.  Whoever orchestrated the attack on gold and silver in the last week or so has gravely miscalculated, since the response to the drop has been surging demand for physical gold and silver.  While I tend to be skeptical when I hear about silver shortages since these reports have been so exaggerated in the past, the lack of silver coin availability and premiums are the most extreme I have seen since the financial and economic meltdown of 2008.  Now we discover that the Chinese Gold & Silver Exchange Society has essentially sold out of gold bullion, and must wait until Wednesday for shipments to arrive from Switzerland and London.



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Fri, 04/19/2013 - 14:05 | 3473022 nope-1004
nope-1004's picture

Everyone can feel this ponzi economy unwinding.  Desperation in the gold attacks by paper thugs and fiat pimps.  The physical and paper markets are diverging, no question.  Pricing is broken, corrupt, manipulated, and wrong!

Take delivery and f'em.


Fri, 04/19/2013 - 14:08 | 3473052 resurger
resurger's picture

Am so fucking glad to read this ... fuck em'

Fri, 04/19/2013 - 14:15 | 3473079 WayBehind
WayBehind's picture

Importing from the Swiss? I wouldnt sell them one once. 

Fri, 04/19/2013 - 14:30 | 3473172 Doña K
Doña K's picture

The woman TV reporter should know that you don't use idiomatic expressions with foreigners. She said there is a floor in the price. To him sounded about noise on the floor of the exchange.

Fri, 04/19/2013 - 14:36 | 3473184 francis_sawyer
francis_sawyer's picture

I don't understand this... Gold isn't 'BACKED' by anything...


In related news... Mt. Gox begins IMPORTING bitcoins from fonestar...

Fri, 04/19/2013 - 14:38 | 3473228 nope-1004
nope-1004's picture

LOL.... I remember when..... gold was reported to be "backed by nothing".

A must watch:


Fri, 04/19/2013 - 15:35 | 3473554 MagicHandPuppet
MagicHandPuppet's picture

@note - Great link!  I was wondering what happened to that clip of the idiot saying gold was "backed by nothing".  Pathetic stupidity.

Fri, 04/19/2013 - 15:48 | 3473622 The Big Ching-aso
The Big Ching-aso's picture

Ya but they'll never run out of tungsten.

Fri, 04/19/2013 - 16:37 | 3473879 Manthong
Manthong's picture

original youtube post

this just keeps gettin better and better.. 

BTW..I have a single ASE for sale.. at 250.00 and..

I am still a patient guy.


Fri, 04/19/2013 - 16:40 | 3473972 mt paul
mt paul's picture

will sell 2 ASE

for 498.99 $


plus shipping

Fri, 04/19/2013 - 16:54 | 3474031 Manthong
Manthong's picture

ha ha ..

another market maker.. but I love competition.  :-D

Fri, 04/19/2013 - 17:40 | 3474229 DaveyJones
DaveyJones's picture

Empires and history. We are our own worst enemy. This move has only weakend the dollar further, weakened us, and strengthened anyone with the wits to buy real assets and reject the green. Like everything else, these moves are having exponentially stronger effects. The more people rejct the game the closer we are to the dollars collapse. Ben is accelerating us toward the cliff. He's not just a liar. He's an idiot. 

Fri, 04/19/2013 - 18:46 | 3474522 dryam
dryam's picture

For those that didn't hear about CBS-Canada's show on gold last night here is the video.  You might want to download them because they'll probably be taken off youtube soon.

Sat, 04/20/2013 - 00:37 | 3476229 TwoShortPlanks
TwoShortPlanks's picture

Believe me, there are Big Fish on our side. They know that one day a great number will have a single objective, rich or poor, with a common goal.

Fri, 04/19/2013 - 17:11 | 3474132 LoneCapitalist
LoneCapitalist's picture

Can I get a raincheck on that?

Fri, 04/19/2013 - 15:48 | 3473635 macholatte
macholatte's picture

Just 1 question......


IF all the sheeple are stupid, ignorant dip-shits and all the politicians and economists and bankers are truely smart and the "journalists" are the most intelligent of all, THEN why do governments and central banks hoard gold?

Fri, 04/19/2013 - 16:15 | 3473839 TeamDepends
TeamDepends's picture

We're not buying ANY of this.  Haywood Cheung?  Sure, and I am Mohammed Dershowitz.

Fri, 04/19/2013 - 16:43 | 3473971 Manthong
Manthong's picture

horde,, hold.. same diff.

tradition.. reserves.. tail reamed risk (very soon)

Fri, 04/19/2013 - 15:51 | 3473647 KnightTakesKing
KnightTakesKing's picture

Not to mention it's a "barbarous relic".

Fri, 04/19/2013 - 15:59 | 3473715 robertocarlos
robertocarlos's picture

She is good looking.

Fri, 04/19/2013 - 14:40 | 3473242 jomama
jomama's picture

don't forget it has ZERO intrinsic value as well.

Fri, 04/19/2013 - 14:47 | 3473286 Panafrican Funk...
Panafrican Funktron Robot's picture

Indeed, it is merely a hunk of junk with no use whatsoever.  "Precious" metal my ass!

Fri, 04/19/2013 - 15:01 | 3473373 imaginalis
imaginalis's picture

Get in there and buy physical before Blackrock

Fri, 04/19/2013 - 14:58 | 3473345 agent default
agent default's picture

Yeah were I live you don't have to mine it or anything, it grows in the forest.

Fri, 04/19/2013 - 16:00 | 3473742 outamyeffinway
outamyeffinway's picture

You heard it from the horses mouth...


The floor for gold is in China!

Fri, 04/19/2013 - 14:42 | 3473259 Nothing To See Here
Nothing To See Here's picture

- Wednesday morning -

Shangai : Where is the gold we ordered? This shipment is empty!

Zurich : WHAT?? I am telling you Mr. Wong, we are shocked, SHOCKED, that your delivery didnt go as planned. Rest assured that your claim against us is still perfectly valid. We will proceed your gold delivery as soon as we get delivery from New York.

Fri, 04/19/2013 - 15:06 | 3473399 mick_richfield
mick_richfield's picture

"Nonsense, Mr. Wong.  I assure you that your shipment crate is as full of gold as Fort Knox!"

Fri, 04/19/2013 - 16:22 | 3473873 auric1234
auric1234's picture

Here, just as we promised. We put your 30 tons of gold in this suitcase full of GLD shares.

Worry not, each ounce is accounted for and these pieces of paper prove that you're their sole owner.


Fri, 04/19/2013 - 17:12 | 3474139 Nothing To See Here
Nothing To See Here's picture

Cant help but think of that scene :

Fri, 04/19/2013 - 15:38 | 3473569 goBackToSleep
goBackToSleep's picture

Yeah, how about sanding the 1mil of AU to get to the tungsten. What are the Chinese gonna do, go to war with the BOE? If they do, the BOE's pitbull (US) will be right over to accidentally detonate an air burts emp between Japan and China. Sorry that weapon strayed a bit off course. how convenient that would be for treasuries. I'll go long the dollar once it happens.

Fri, 04/19/2013 - 16:27 | 3473903 GoldForCash
GoldForCash's picture

Gold, we thought you said cold. We mailed 1 tonne of ice cubes. Must have melted....did you have insurance ?

Sat, 04/20/2013 - 02:28 | 3476370 MythicalFish
MythicalFish's picture

The trading floor looks pathetic. Put in a few lenovos.

Fri, 04/19/2013 - 14:15 | 3473081 eclectic syncretist
eclectic syncretist's picture

JP Morgans registered COMEX gold inventory declined from 1.3 to 0.8 million ounces in the past week, a burn rate that if continued will result in them having zero physical gold available for delivery IN LESS THAN TWO WEEKS. 

This is happening very quickly while people are distracted with other things.

Fri, 04/19/2013 - 14:19 | 3473106 fonzannoon
fonzannoon's picture

eclectic please play this out. Assuming JPM would not allow their inventory to go to zero, or presumably not even close to zero, what happens? They have to settle in cash?

Fri, 04/19/2013 - 14:23 | 3473131 Bam_Man
Bam_Man's picture

Force Majeure, bitchezzzz!

Fri, 04/19/2013 - 15:26 | 3473492 Max Hunter
Max Hunter's picture

Let me see.. TPTB drove the prices down to 22 so they can sell us schmucks silver and gold at blowout prices so they can run out of the pretty stuff.  Then, they have none and we have it all at a discount as the price for physical takes off for orbit.. .  Then, they can't sell their paper scheme anymore..


They push the prices down.. buy up everything (gold mostly) accept a few coins they sell us schmucks.. Unload their shorts, go long, restock the vaults continue paper scheme in other direction for a while..

Fri, 04/19/2013 - 15:44 | 3473606 macholatte
macholatte's picture



When dealing with people, remember you are not dealing with creatures of logic, but creatures of emotion.

Dale Carnegie

Contrariwise, if it was so, it might be; and if it were so, it would be; but as it isn't, it ain't. That's logic.

Lewis Carroll



Fri, 04/19/2013 - 15:57 | 3473694 Max Hunter
Max Hunter's picture

Maybe.. I still have to lean towards what I see.. and what makes sense..

Fri, 04/19/2013 - 18:49 | 3474539 sun tzu
sun tzu's picture

The problem is the more they push prices down the more people will buy. I'm not talking about American peons, I'm talking about 2 billion peons in Asia.

Fri, 04/19/2013 - 14:58 | 3473346 cynicalskeptic
cynicalskeptic's picture

The anti-gikd propaganda is continuous..... don't you get it?  Gold isn't reallt worth anything....


The astounding number of articles on gold of late (all negative or with some bogus 'explanation' of the decline) stinks of a concerted propaganda effort to gegt owners out of gold.... everyone else is selling now - you're a fool if you don't.....     .  One talking head on the BBC a few days back said the decline was because demand from China had DROPPED - even as China was buying a few hundred topns in the previous week.    NO articles in MSM about the frenzied buying of physical since the drop though - don;t want to call attention to THAT.

Fri, 04/19/2013 - 15:09 | 3473414 cynicalskeptic
cynicalskeptic's picture

The real story may be in SILVER.   Gold is coming back fast - has bounced back to 1400 already.  Silver is being kept down and nort coming back as fast.  What's the number of contracts outstanding on COMEX?

Fri, 04/19/2013 - 15:29 | 3473503 ziggy59
ziggy59's picture

Less than zero is not a problem these days... In fact on bizarro world, its a positive..somehow

Fri, 04/19/2013 - 14:14 | 3473083 debtor of last ...
Fri, 04/19/2013 - 14:19 | 3473110 Captain Benny
Captain Benny's picture

Screw that.  I'm buying whenever I find change in my pockets.  No need to try and pick one specific day.  Just do it every day.

Fri, 04/19/2013 - 14:20 | 3473119 debtor of last ...
debtor of last resort's picture

In your case: sell your wife and buy moar on may 1st.

Fri, 04/19/2013 - 14:38 | 3473221 francis_sawyer
francis_sawyer's picture

Tried buying ammo today... No dice... Nuttin' but 7mm on the shelves [& about a box of 30-06]...

Fri, 04/19/2013 - 15:25 | 3473485 outamyeffinway
outamyeffinway's picture

Coinstar this wekend for me. Spent my savings, sold my BTC for silver. Nothing left but the change jar.

Fri, 04/19/2013 - 14:43 | 3473261 CaptainObvious
CaptainObvious's picture

Yup, stack it high and stack it deep.  I just got back from the coin dealer, where I purchased every Maple Leaf they had in stock, plus some gold.  I'm not waiting for Joe Sixpack to start panic buying...look at the ammo situation:  Joe Sixpack is running around trying to find some ammo, while I've got a gun safe full of it.

Fri, 04/19/2013 - 14:46 | 3473281 Go Tribe
Go Tribe's picture

Bought today.

Fri, 04/19/2013 - 16:51 | 3474026 auric1234
auric1234's picture

Go! Go!

I smell the short squeeze already.


Fri, 04/19/2013 - 16:26 | 3473898 El Diablo Rojo
El Diablo Rojo's picture

great video

Fri, 04/19/2013 - 14:37 | 3473210 DoChenRollingBearing
DoChenRollingBearing's picture


Yes, buy and take delivery.  Buy, buy, buy physical now.

Fri, 04/19/2013 - 15:12 | 3473419 Overfed
Overfed's picture

Went to the LCS today and bought the last bullion he had; a 10oz Engelhard bar. That's it, there's no phyz to be found here.

Take a look at ebay. Phyz silver is selling for $30+.

Fri, 04/19/2013 - 15:32 | 3473522 DoChenRollingBearing
DoChenRollingBearing's picture

I mentioned in another thread that last Friday and yesterday I bought the last A.G.E. that my LCS had, just one in each case.  My understanding that silver is indeed haredr to find.

Fri, 04/19/2013 - 15:37 | 3473563 Overfed
Overfed's picture

I saw that. I have a post stating as much on the second page of this thread. Phyz gold is a little easier to find, prolly 'cause the average schmuck can much more easily afford silver. That, and it looks like there could be a real slump in production for a while.

Sat, 04/20/2013 - 02:01 | 3476348 MythicalFish
MythicalFish's picture

63500 ounces of gold sold by US Mint?? That's like 6 grams per unique visitor to ZH. Are you guys kidding me??? Go out buy for real!

Fri, 04/19/2013 - 14:10 | 3473071 whatsinaname
whatsinaname's picture

Get some info direct about the Indian gold market from the Bombay Bullion Association.

Interestingly a story there talks about some small gold sellers holding up supply into the market to protect their bottomlines.

Fri, 04/19/2013 - 14:12 | 3473074 Panafrican Funk...
Panafrican Funktron Robot's picture

One thing I've been pointing out recently:

Q:  Between crude, copper, and gold, which has been down the least since their 2011 peaks?

A:  Gold


Fri, 04/19/2013 - 14:25 | 3473149 Renewable Life
Renewable Life's picture

Hey Uncle Ben....Fuck You!  Now what are you and your fucking slimy cronies going to do, ban gold sales all together????

Oh wait, really, LMFAO, do it bitchez! See where the price goes then!!!  God I hope this week has enlightened those scumbags to the scale of the fucking catch 22, they are really dealing with! Their little ponzi scheme needs liquidity to contnue to scam us all out of our savings and wealth, however if they continue to lower gold and silver prices artifically, they will see liquidity pour into PM's by the trillions and out of the banks, if they let gold rise, it validates that gold is a good long term investment and storer of wealth to the masses, which still drains liquidity, just be it at a higher price!  There are bank runs going on in the EU and Japan, just quietly and slowly, and the Chinese and Indians, never have given a fuck about keeping their wealth in a bank! If this keeps up, someone will have to make the next move, capital controls and freezing accounts and in the US, expect the IRS to get involved with ALL gold transations outside of person to person deals at someones house!

Fri, 04/19/2013 - 14:34 | 3473197 Al Huxley
Al Huxley's picture

Well said, and +1 for the unrestrained vitriole.

Fri, 04/19/2013 - 14:49 | 3473304 scatterbrains
scatterbrains's picture

I can only imagine that most sovereigns, private investors, hedge funds etc. are secretly buying as much gold as they can possibly get there hands on while pretending to go along with BennyB's magical mystery fiat ride.. specially after the way the Wall St. banks fucked everyone in the ass but good... or can the rest of the world really be that stupid ?  Shirely everyone knows the capital markets are completely rigged and it's only a matter of time before there is simply no gold to be found anywhere.

Fri, 04/19/2013 - 19:28 | 3474724 Au Shucks
Au Shucks's picture

yes, the markets are rigged.  And don't call me Shirley

Fri, 04/19/2013 - 15:11 | 3473424 Kaiser Sousa
Kaiser Sousa's picture

U BEEN TOLD...THEY R COMING FOR YOUR DEBT COUPONS DOLLARS IF U STILL GOT SOME OF THAT WORTHLESS SHIT IN THEIR CASINO.... who the fuck you the creditors of this insolvent shitholes r?????????? taxpayers spared - ha, ha.......

"I should note at the outset that solving the TBTF problem has two distinct aspects. First, and most obviously, one goal is to get to the point where all market participants understand with certainty that if a large SIFI were to fail, the losses would fall on its shareholders and creditors, and taxpayers  (ha, ha...!) would have no exposure. However, this is only a necessary condition for success, but not a sufficient one. A second aim is that the failure of a SIFI must not impose significant spillovers on the rest of the financial system, in the form of contagion effects, fire sales, widespread credit crunches, and the like. Clearly, these two goals are closely related. If policy does a better job of mitigating spillovers, it becomes more credible to claim that a SIFI will be allowed to fail without government bailout.

So where do we stand? I believe two statements are simultaneously true. We've made considerable progress with respect to SIFIs since the financial crisis. And we're not yet at a point where we should be satisfied.

All of you are familiar with the areas of progress. Higher and more robust capital requirements, new liquidity requirements, and stress testing all should help to materially reduce the probability of a SIFI finding itself at the point of failure. And, if, despite these measures, a SIFI does fail, the orderly liquidation authority (OLA) in Title II of the Dodd-Frank Wall Street Reform and Consumer Protection Act now offers a mechanism for recapitalizing and restructuring the institution by imposing losses on shareholders and creditors. In the interests of brevity, I won't go into a lot of detail about OLA." 

Fri, 04/19/2013 - 19:00 | 3474568 GVB
GVB's picture

Dude you point it out so well

Fri, 04/19/2013 - 14:14 | 3473030 TeamDepends
TeamDepends's picture

Get it quick!  The Boat has left the Dock


Fri, 04/19/2013 - 14:05 | 3473031 Silverhog
Silverhog's picture

Time for another smack down. Just because there is no Gold available, price always goes down right?

Fri, 04/19/2013 - 14:06 | 3473042 RSBriggs
RSBriggs's picture

Sure.  If there isn't any available at your local Walmart, you don't need it, anyway.  And if no one needs it, the price goes down.  Got it?

Fri, 04/19/2013 - 14:42 | 3473256 francis_sawyer
francis_sawyer's picture

Fuck you you bitcoin hack...


According to your cutesy remark...

Walmart sells AMMO... Meaning: 'It's available' but sold out...

- Because everyone wants it

- Even though the prices have gone up...

Got it?

Fri, 04/19/2013 - 14:07 | 3473051 Bearwagon
Bearwagon's picture

What do you mean, no gold available? There are 100 000 000 million ounces available in no time. On paper that is, of course.  ;-)

Fri, 04/19/2013 - 14:18 | 3473108 The Abstraction...
The Abstraction of Justice's picture

Worth their weight in paper - minus the bleaching costs.

Fri, 04/19/2013 - 16:03 | 3473651 Kirk2NCC1701
Kirk2NCC1701's picture

"What do you mean, no gold available? There are 100 000 000 million ounces available in no time. On paper that is, of course.  ;-)"

Good one!  LOL.  Any 5h Grader can do that arithmetic and call Bullsh*t!

For context, if you actually believe that the US has 8500 tons, that equals ~ 273,000,000 Tr.Oz. ($400B @ $1450/oz). 

The number above (100 000 000 million = 1.0E14 Toz) is ~ 3,110,347,680 metric Tons.  Or $ 145,000 Trillion US$.  We don't need any $1T Platinum coins, cause we apparently have enough gold to cover (back up) 100% of all the fiat money, all the GDP and all the Derivatives in the world ($800T) MANY times over. 

That's 366,000 x the US (8 500 tons) supply alone.  Just can't stop ROFL.  Somebody help me!

Fri, 04/19/2013 - 14:44 | 3473263 slaughterer
slaughterer's picture

This surge of buying on the physical market is a contrarian indicator for professional PM traders.

Another smack down in paper price will quickly neutralize interest in physical PMs when the people buying this week experience buyer's remorse at even lower prices with empty pockets next week.

Limited physcial, unlimited paper means:

Paper price: $.01

Physcial price: $10,000.




Fri, 04/19/2013 - 14:47 | 3473283 fonzannoon
fonzannoon's picture

slaughterer you just contradicted yourself, no?

Not for nothing but I know a few people who have never purchased and are watching this gift and know it's a gift. There may be a lot more dry powder than you think.

Fri, 04/19/2013 - 14:54 | 3473320 francis_sawyer
francis_sawyer's picture

<see AMMO comment above>... same dynamic...


Unless somebody thinks somebody's going to advertise a 25% sale on ammo tomorrow & expect ammo holders to liquidate & fill the shelves...

Fri, 04/19/2013 - 15:07 | 3473404 nope-1004
nope-1004's picture

WTF is a "professional PM trader"?


Fri, 04/19/2013 - 15:20 | 3473458 fonzannoon
fonzannoon's picture

Where is the guy who always yelled "Crash JPM buy silver"? I can't believe I am blanking on his name. I like that guy.

Fri, 04/19/2013 - 15:30 | 3473516 therover
therover's picture

Max Keiser ?

Fri, 04/19/2013 - 15:42 | 3473590 fonzannoon
fonzannoon's picture

Nah the guy on here who always claimed he beat max kaiser to the punch on  the crash JPM

Fri, 04/19/2013 - 16:42 | 3473984 Bay of Pigs
Bay of Pigs's picture

That would be Lennon Hendrix, and yes, he did come up with the term first.

He was also banned here by the Tylers for some unknown reason.

Fri, 04/19/2013 - 21:31 | 3475057 GoinFawr
GoinFawr's picture


Tylers, I am disappoint. Surprised, not so much. What gives?

Fri, 04/19/2013 - 15:44 | 3473607 Citxmech
Citxmech's picture

Silver Bears?

Fri, 04/19/2013 - 16:52 | 3474029 James
James's picture


Fri, 04/19/2013 - 14:59 | 3473348 Panafrican Funk...
Panafrican Funktron Robot's picture

Yeah, that was weird.  Apparently he doesn't understand the implications of a massive paper/physical USD price disconnect?

Fri, 04/19/2013 - 15:19 | 3473462 cynicalskeptic
cynicalskeptic's picture

Noboidy is going to care if the official 'price' hits $1000 an ounce if NOBODY WILL SELL YOU AN OUNCE AT ANYWHERE NEAR THAT PRICE.   Even the novices have caught on that something is not right about thie PM market - that the pubilcized 'price' often has limited corelation to that actual cost of aquisition.  

Doesn't matter if there's nothing to buy at a lower price - people will be happy to have gotten what they already have when the see empty shelves.


Most people are clueles when it comes to any type of finance but many ARE catching o that they're being played.  They KNOW prices are going up - substantially  - but that they are gettgin NOTHING in interst for their savings (if they have any).  They see a future where their retirement is at risk because of low returns and higher costs where a government simply lies about things like inflation.  They see the big crooks on Wall Street and Banking getting bailed out at their expense and are pissed.   Holder and others have said they're not even investigating crimes much less prosecuting  - people aren't totally stupid.  They see a system rigged against them, favoring the wealthy that is still falling apart needing massive government support - AND IT'S STILL NOT WORKING


Fri, 04/19/2013 - 16:53 | 3474032 Non Passaran
Non Passaran's picture

I'm suffering from buyer's remorse.

I regret I only bought <a single digit number of> toz this week.

My first priority is to make sure that next time around I don't repeat the same fucking mistake. I need to have more dry gunpowder at hand.

Sat, 04/20/2013 - 00:12 | 3476165 StychoKiller
StychoKiller's picture

Hmm, did you check inside the pressure cooker? :>D

Fri, 04/19/2013 - 14:11 | 3473037 swissaustrian
swissaustrian's picture

Pathetically small pile of gold bars in front of the guy, everything else is sold?

Fri, 04/19/2013 - 14:12 | 3473066 Peter Pan
Peter Pan's picture

It's still bigger than the US government's stock of gold.

Fri, 04/19/2013 - 14:07 | 3473040 smlbizman
smlbizman's picture

how can everybody be buying it....and at the same time nobody knows about should i follow the herd and add an ounce or 2....or follow the herd and not....

Fri, 04/19/2013 - 14:11 | 3473072 Pareto
Pareto's picture

you shouldn't care either way.  that's the point.  buy whenever.  the exchange value (real) of gold is relatively constant across all prices (apart from some arbitrage, here and there).


buy it, bury it, and fucking forget about it.

Fri, 04/19/2013 - 14:15 | 3473085 James_Cole
James_Cole's picture

Don't buy it. This is amazingly idiotic. There's plenty of physical gold available, use your brain people. When something drops substantially in price what do the people who hold that thing do? Order more of it? Sell out their holdings at a major loss? 

Or...hide and wait out the storm? Look at the idiotic premiums, that should give you a hint of whether to buy or not! The spreads are insane on physical. 

Fri, 04/19/2013 - 14:19 | 3473098 fonzannoon
fonzannoon's picture

James what would the premium be on a glass of water if you were in the middle of the desert?

If there is plenty available why is everything on back order and how do you justify this article? How do you justify ABN Amro failing on delivery?

Fri, 04/19/2013 - 14:23 | 3473138 Bay of Pigs
Bay of Pigs's picture

He wont address the facts. 

Fri, 04/19/2013 - 14:36 | 3473212 James_Cole
James_Cole's picture

If there is plenty available why is everything on back order and how do you justify this article? How do you justify ABN Amro failing on delivery?

This article is smoke and mirrors, just the same bullshit case that's been made for the past 2 yrs. Always the same thing, physical shortage, 2k spot around the corner blah blah blah. 

I was pointing out that Sprott & his cronies were scam artists since first joining this site and people would rage away about how wrong I was. First sign of serious trouble in silver and Sprott immediately starts dumping, people still believe he's honest about 'silver at any price'??

I suppose it can be explained away to "supply constraints" that after the PMs take a sudden major dive the dealers all start hiking their premiums ridiculously high, right? Nothing to do with them getting shafted. 

The main local bullion dealer I go to has already moderated their premiums, I'm sure others will follow. 

Fri, 04/19/2013 - 14:40 | 3473241 fonzannoon
fonzannoon's picture

Please provide us with your main local bullion dealer.

Fri, 04/19/2013 - 17:01 | 3474075 ForWhomTheTollBuilds
ForWhomTheTollBuilds's picture

Yep.  Its impossible to take a statement like that seriously unless its backed up.



Fri, 04/19/2013 - 17:04 | 3474093 dynomutt
dynomutt's picture

Arbitrage in action

Fri, 04/19/2013 - 14:45 | 3473270 Al Huxley
Al Huxley's picture

You're telling people there's plenty of gold for purchase, in spite of the fact that anybody can check any supplier anywhere and see that this is not the case.  You fail to actually answer or explain the ABN Amro delivery failrure, you tell people that the obvious response to a dropping price should be to SELL not BUY, in spite of evidence around the globe that people are buying this dip aggressively.  THEN you say THE MAIN LOCAL BULLION DEALER I GO TO - what, you tell people to sell and then expect me to believe you have a bullion dealer you go to?  What the fuck do you do there, discuss the fucking weather?

Fri, 04/19/2013 - 14:49 | 3473292 fonzannoon
fonzannoon's picture

Dammit Al Ssssshhhhh!!! James is about to give us his dealer who has already relaxed premiums. Now all the people on here who have not had any luck will be able to finally purchase.

Come on James? Help us out!

Fri, 04/19/2013 - 14:52 | 3473315 Abitdodgie
Abitdodgie's picture

Apmex has lots of Gold.

Fri, 04/19/2013 - 15:08 | 3473403 Beam Me Up Scotty
Beam Me Up Scotty's picture

They don't have lots of silver though, and neither does Tulving.  When Tulving is out, he says "sold out".  Apmex keeps selling it..."These items are on a slight delay. We expect to be able to ship these items by April 30th or sooner." 

I wouldn't say silver is very abundant right now.  The coin guys I know don't have any silver for sale.  No one is selling ANY to them. 

Fri, 04/19/2013 - 21:51 | 3475470 espirit
espirit's picture

Gainesville Coins is delaying shipments to "somewhere" between May 10th and the end of the month.  Along with their high premiums and "pay now, receive later", I'm looking for something to hold sooner.

Fri, 04/19/2013 - 15:33 | 3473524 Overfed
Overfed's picture

My experience here is that my two LCS have a small amount of gold, but the premiums are up there. No silver on hand (except the 10oz Engelhard I lucked into, still cost me a $3/oz premium), and at least a 3 week backorder for delivery.

This is as of today, personal experience, not hearsay.

Fri, 04/19/2013 - 14:49 | 3473305 Abitdodgie
Abitdodgie's picture

I love the idea that we are sticking it to the man , but I must agree with James NOTHING happens by accident in this world they new this would happen BUT why are they doing it.

Fri, 04/19/2013 - 15:02 | 3473368 fonzannoon
fonzannoon's picture

When James gives his dealers name I will give him more cred.

Fri, 04/19/2013 - 16:23 | 3473857 akak
akak's picture

James Cole has been consistently evasive, disingenuous, and frequently outright dishonest in the misinformation and disinformation that he has posted here regarding gold since joining ZH.  To be blunt, I do not trust him, nor should anyone else.

Fri, 04/19/2013 - 16:44 | 3473995 Bay of Pigs
Bay of Pigs's picture

He's a fucking hack. There, I said it.

Fri, 04/19/2013 - 15:05 | 3473386 Panafrican Funk...
Panafrican Funktron Robot's picture

People are just executing a currency transfer when they purchase gold.  The idea is to at least hedge their USD holding with XAU, in a form without counterparty risk (MF Global, how soon we forget).  If you don't understand the point behind hedging your currency risk, then you're obviously not very wealthy or well informed.

Fri, 04/19/2013 - 15:33 | 3473537 therover
therover's picture

Right Fonz.

And what would be more valuable in that desert....the REAL glass of water or a picture of it on a PIECE OF PAPER ?

Fri, 04/19/2013 - 14:31 | 3473160 Bam_Man
Bam_Man's picture

It is called SEVERE BACKWARDATION and indicates that the physical has gone into hiding. Guaranteed annualized paper profits of 25%+ on trading the basis are ignored because of doubt as to whether the futures market will have the ability to provide the physical on the contract delivery date.

Fri, 04/19/2013 - 14:35 | 3473207 Bay of Pigs
Bay of Pigs's picture

Yes Bam Man, this situation is entirely different from 2008.

Paper vs physical is now burning up.

Fri, 04/19/2013 - 14:48 | 3473258 Bam_Man
Bam_Man's picture

Sinclair has been all over this for months now.

Fekete says the next step after this is "Barter Only" for physical - where you can't even buy with cash. If that isn't hyper-inflation by definition, I don't know what is.

They are really playing with fire here and probably know it. Something very serious must be going on behind the curtain.

Fri, 04/19/2013 - 14:50 | 3473314 Beam Me Up Scotty
Beam Me Up Scotty's picture

The only reason the paper market still functions is because most people in it aren't in it for the gold, they are in it for the paper.  They figure if they can't take delivery, they will get paid off in cash.  And since cash still has value, why not do that, especially if you are paid in a big premium to take cash instead of taking delivery of your gold that they don't have?   People can trade gold chits for a long time yet, if someone is willing to give them dollars for that paper.  If the dollars become worth less or worthless, this will change.

Fri, 04/19/2013 - 14:37 | 3473209 xtop23
xtop23's picture

That is exactly the point James.

They have dropped the price below the level anyone would be willing to part with physical other than hedged dealers and even they are raising premiums to compensate for the unintended consequences of this smash down. 

The price will have to go much higher to pry the physical out of strong hands. The paper price is a fucking joke and the sooner we have true price discovery, the better.

Fri, 04/19/2013 - 14:38 | 3473233 James_Cole
James_Cole's picture

They have dropped the price below the level anyone would be willing to part with physical. 

Dealers make their money on the spreads and they just got hurt on the dive so they're desperate to make it up somehow. 

Fri, 04/19/2013 - 14:46 | 3473276 xtop23
xtop23's picture

If they're properly hedged they weren't hurt much at all. If they were, then they obviously aren't hedging properly.

Premiums rise with demand as a corollary of decreased supply. More money chases less goods. Your contention is that they are creating an artificial shortage to maximize profits and that there is no shortage then, yes?


Fri, 04/19/2013 - 14:57 | 3473337 James_Cole
James_Cole's picture

Premiums rise with demand as a corollary of decreased supply. More money chases less goods. Your contention is that they are creating an artificial shortage to maximize profits and that there is no shortage then, yes?

There has never been a shortage. Tonnes of articles written about shortages over the past 2 yrs, yet the WGC (I always bring up their reports and the goldbugs on here get mad because they hate facts) showed NO evidence of any shortage. In-fact, their report from last year showed the exact opposite. 

So now again the PMs are getting hammered and we hear about mysterious 'shortages' and the high premiums are mistakenly assumed to support that theory. 

I don't think they are actually creating an artificial shortage, but they are hiking the premiums, that's fact. If you want to buy pms and are willing to pay the elevated premium there's lots of places to buy it. 

But the goldbugs on here will just rage away, down-voting me and saying I'm a liar blah blah blah. 

All I'm saying is use your brain, most of the commentators on here have an inability to do that but would've benefited from doing so over the past year. Instead of 'BTD' at 35$ / ounce (or 39$ on eagle premiums) they could be buying them now for 29$) but of course that would be totally crazy to 'play the market.' 

Fri, 04/19/2013 - 15:12 | 3473431 Panafrican Funk...
Panafrican Funktron Robot's picture

James, that's the exact same % premium you would pay on a SPY Dec. 15 call at the 155 strike (not including broker transaction fees).  Or are you also contending that LEAPS are a bad investment because of the premium?

Fri, 04/19/2013 - 15:27 | 3473490 James_Cole
James_Cole's picture

Well there shouldn't be a Dec.15... so I don't know where you're buying, but even if the calls that week are comparable premium you obv can't compare an option purchase to a physical coin purchase. The premium you're buying and selling it after broker etc. is going to be much more favourable than the spread on a phys coin exchange. Not to mention options function in a completely different way and should be used differently. I.e. hedging in the SLV options against your physical. 

And even if they were exactly the same as my example it's still a bad deal comparatively + you can get much better spread than the Am Eagle.

Regardless, what was lost in spot price the dealers are trying to compensate for in premiums. 

Fri, 04/19/2013 - 16:46 | 3473945 akak
akak's picture


Regardless, what was lost in spot price the dealers are trying to compensate for in premiums.

Bullshit.  I have less and less respect for you every time you post.

Where is your proof that the dealers are simply trying to gouge their customers?  What about dealers like Tulving, who have not raised their premiums, thereby running out of almost all silver product?

I strongly suspect that most or all dealers are raising their premiums to ration product in the face of increased demand.  In other words, the free market in action.  If YOU were a dealer, would you not do exactly that?  Or do you believe that rationing via price, the essence of the free market, is somehow "unethical"?

Or are you going to continue with your bullshit lies about "the evil speculators gouging the consumers", Mr. Nixon?

Fri, 04/19/2013 - 20:02 | 3474876 James_Cole
James_Cole's picture

Where is your proof that the dealers are simply trying to gouge their customers? 

It's called logic. And I never said it was to gouge their customers, it's to mitigate their losses. Otherwise I guess it's just a coincidence that they hiked premiums substantially right after the market dive?

What about dealers like Tulving, who have not raised their premiums, thereby running out of almost all silver product?

Probably I am not referring to the ones who didn't hike premiums??

I strongly suspect that most or all dealers are raising their premiums to ration product in the face of increased demand.

That's what the true believes would like to believe. So the idea goes, now that the paper margin has been reduced everyone is jumping over each other to get to the dealers to buy up all the physical they can and the dealers are sooo overwhelmed by the demand that they have no chocie but to ration their product because Lord knows it would be horrendous for them if they sold out!

The next logical question is, how much lower should the spot price be if you were to remove the rest of the margin?

If YOU were a dealer, would you not do exactly that?  Or do you believe that rationing via price, the essence of the free market, is somehow "unethical"?

If I were a dealer i'd jack up my premiums as high as possible to whatever my local muppet audience is willing to pay. 

Or are you going to continue with your bullshit lies about "the evil speculators gouging the consumers", Mr. Nixon?

What have I ever said about 'evil speculators?' Oh yeah.. Nothing, because I don't have a particular issue with speculators. 

I do take issue with lying scam artists though and those folks I regularly complain about. 

Fri, 04/19/2013 - 20:55 | 3475144 akak
akak's picture

You are nothing but a dishonest anti-gold shill and troll with an axe to grind against those who fight against the corrupt and tottering financial establishment.  You have proven that over and over here, and have given us no logical arguments, only the parroting of insipid and lame mainstream anti-gold talking points.

Fuck you and your bullshit agenda, whatever it may be.

Fri, 04/19/2013 - 21:59 | 3475511 espirit
espirit's picture

Concur.  Sounds like an Econ 101 student logic to me.

Fri, 04/19/2013 - 23:39 | 3476064 James_Cole
James_Cole's picture

You have proven that over and over here, and have given us no logical arguments, only the parroting of insipid and lame mainstream anti-gold talking points.

Whether that's true or not, the bear case has been right.

Fuck you and your bullshit agenda, whatever it may be.

I don't have any 'agenda' beyond being one of the only people on here presenting the other-side of the gold bull case. With endless commentators saying buy gold at any price I figure someone has to speak up for the other side.

Long term there's some good arguments, but in the shorter term (past 6 months and now) I've been bearish and that's pissed people like you off, but what does it matter what I say if you're so convinced the other way?? 

Fri, 04/19/2013 - 14:07 | 3473043 A Lunatic
A Lunatic's picture

Fear not. Gold plated tungsten sales will resume shortly...........

Fri, 04/19/2013 - 14:07 | 3473044 resurger
resurger's picture

Last call

Fri, 04/19/2013 - 14:11 | 3473068 Bearwagon
Bearwagon's picture

One bourbon, one scotch, one beer!

Fri, 04/19/2013 - 21:29 | 3475354 WmMcK
WmMcK's picture

+1 - The clock on the wall says 3 o'clock ...

Fri, 04/19/2013 - 14:07 | 3473050 Seize Mars
Seize Mars's picture

Heywood Cheung, who recently took over from Heywood Jablomi.

Fri, 04/19/2013 - 14:09 | 3473053 boeing747
boeing747's picture

This means they can not get golds from Comex.


Fri, 04/19/2013 - 22:02 | 3475525 espirit
espirit's picture


There, fixed it.

Fri, 04/19/2013 - 14:08 | 3473054 A Lunatic
A Lunatic's picture

So Jackie Chan is now pimping gold...........?

Fri, 04/19/2013 - 14:10 | 3473056 EL INDIO
EL INDIO's picture

The response by the public means GAME OVER for the fiat money system.
It is now just a matter of time.
This could very well be the start of next stage of the Bull market.

Fri, 04/19/2013 - 14:10 | 3473059 debtor of last ...
debtor of last resort's picture

I wonder what's in the JPM vault the Tylers discovered.

Fri, 04/19/2013 - 14:15 | 3473089 waterwitch
waterwitch's picture

A big vacuum. Can you hear that sucking sound?

Fri, 04/19/2013 - 14:53 | 3473326 Beam Me Up Scotty
Beam Me Up Scotty's picture

Its a big dildo the size of your arm.  The price for peaking in the vault is it gets rammed up your ass.  Bend over....

Fri, 04/19/2013 - 14:09 | 3473061 IridiumRebel
IridiumRebel's picture


Fri, 04/19/2013 - 14:22 | 3473128 swissaustrian
swissaustrian's picture

They don't hide it anymore.

Silver's tendency towards 23 is more worrying, though. That smells like trouble.

Fri, 04/19/2013 - 14:41 | 3473255 IridiumRebel
IridiumRebel's picture

Makes total sense with the vast industrial uses, fact that 15% was just wiped out via Rio Tinto mine slide amongst other should be like 6 bucks an ounce....SURE.

Fri, 04/19/2013 - 14:09 | 3473062 nmewn
nmewn's picture

Ah so horny...ah so stacky long time.

Fri, 04/19/2013 - 14:26 | 3473157 Bastiat
Bastiat's picture


Fri, 04/19/2013 - 14:11 | 3473069 Kaiser Sousa
Kaiser Sousa's picture


Fri, 04/19/2013 - 14:15 | 3473093 SgtSchultz
SgtSchultz's picture

Don't sugarcoat it.

Fri, 04/19/2013 - 21:52 | 3475476 Colonel Klink
Colonel Klink's picture

Schultz why aren't you guarding the prisoners?!?!  Ach du lieber Gott!

I see you're surfing Zerohedge again, HOGAN!!!

Fri, 04/19/2013 - 14:21 | 3473117 dontgoforit
dontgoforit's picture

Yeah, so, tell us how you really feel.

Fri, 04/19/2013 - 14:26 | 3473155 Banksters
Banksters's picture

So true.


As gruesome as the boston bombing was, the fucking bankers are constantly fucking people up through economic warfare.  

Fri, 04/19/2013 - 14:12 | 3473073 Jonas Parker
Jonas Parker's picture

God help the poor souls who are just waking up to the fact that gold, silver, semi-auto rifles and ammo have all been scooped up by more alert citizens. I'd hate to be a "newbie" today!

Fri, 04/19/2013 - 14:17 | 3473101 CitizenPete
CitizenPete's picture

No shit.  Imagine being an employed Pro Sports and MSM Network junkie without a clue that just became unemployed and then visiting a relative or old friend who has been prepping for the last 5-10 years.  Different worlds. 

Fri, 04/19/2013 - 14:22 | 3473125 dontgoforit
dontgoforit's picture

I'm too oldie to be a newbie today, or yesterday, or last year....

Do NOT follow this link or you will be banned from the site!