Silver stacking is finally real

One of the ways that the establishment has kept silver bullion inaccessible was to create the notion of good delivery bars.  These were bars of gold and silver that were assayed for purity and weighed and then put in a bonded warehouse.  If the bar ever left the warehouse then it would be considered un-trusted and thus, if someone ever wanted to return it to the COMEX or other metals bourse (i.e. sell their metals), they would have to pay a significant fee to re-assay the metal.  The effect was that nobody ever took physical possession. Instead, they traded paper contracts which represented the metal.

Of course, the metals bourse (again like COMEX or LBMA) had to be trusted in this matter to actually have all of the physical metals that they allowed contracts for (and took a cut of each contract).  The more contracts, the more their revenue.  But since nobody takes bars out you really don't know how much metal they have.  You have to trust their official data releases which many insiders have questioned the veracity of.  

Let's face it.  They are cheating just like the US did when it issued far more dollars than it had gold to back these IOUs up under the original Bretton Woods system.  They never allow anyone to audit and this kind of situation ALWAYS results in cheating.  I mean, never give a sucker an even break and all that.  I guarantee you that if you give someone control over a money supply like this and never audit them that within 5 years they will begin to believe that they can steal just a little of the metals (which is the same as offering contracts for more metal than actually exists).  It's human nature.

But now look what these animals over at Wall St Silver are doing!!! They are putting in buy contracts for silver and then standing for delivery.  And then they are cutting the bars up into wafers and selling them off to retail customers.  I can tell you right now this was NOT expected by the bullion banks.  No fucking way.

So why are people doing this right now??  Simply because they can sell it at 1 dollar over spot and make a nice profit.  And in turn their customers are buying pieces of good delivery bars which are .997 silver.  This is important because it shows there is such retail demand for physical silver at a time when the premium on coins is very very high.  The main reason to buy coins is because you will find them easy to sell to the next guy when its time to spend this metallic money.  But with the minting premium now 30% or more, it makes sense to many people to find other ways to hoard the metal without buying coins.

The bullion bourses are only in business because they have metals on their shelves which they can write contracts against.  If people keep standing for delivery and then cutting up the metal for retail distribution, that is silver that will never see the inside of the bullion bourse vault again.  IF they remove too many physical bars then at some point it will become clear that there are more silver contracts outstanding than there is physical silver to cover them and once that happens you have a run on the bank where everyone with silver metal on account scrambles down there and tries to take physical possession of it before they run out completely.

So what we are seeing is the early stages of the silver equivalent of the US gold window collapse. People are trading in dollars for silver metal and they are not putting it back in the system.  They are hoarding the metal.  The result will be the same.  The metals bourses will have to admit they no longer have the metal that they say they do and the bourses, which have been setting metals spot prices for a long long time, will collapse in disgrace.  And that is when we will get real price discovery on silver.  Trust me, it will be much, much higher than $25 a friggin ozt.  Probably 10x that IMO.

If the seller is smart he will create a video of each slice as it is being cut off which should then include an immediate weighing of of the slice and then followed up by stamping the cut face with the measured weight, date and time and then some kind of serial number and logo of the guy doing the slicing.  Such a video would provide provenance of the rough metal slice going forward.  So, whoever buys it can easily sell it to the next guy by showing him the vid and then matching it up to the physical specimen.