Talking Gold, with Andrew Maguire

Read the original article for a more detailed overview. The following post just scrapes the surface…

This post is a summary of ‘Talking Gold’ — a bi-monthly update from precious metals expert and Kinesis Director, Andrew Maguire, providing an insightful breakdown of the recent action in the gold and silver markets — a regular feature from the Kinesis Youtube show ‘Live from the Vault’.

For the full analysis into the gold and silver markets, presented in fascinating detail, take a watch of Talking Gold from ‘Live from the Vault’ Episode 13 presented by Kinesis.

In this week’s episode, Andrew Maguire takes a close look at the gold and silver markets alongside Bill Murphy, chairman of the Gold Anti-Trust Action Committee (GATA).

The two seasoned precious metals experts discuss the growing wholesale physical silver shortage and address the impact of dwindling open interest in the Silver Futures (SI) market.

For a detailed exploration of the implications of an officially-run algorithm breaking in the silver market, have a watch of Talking Gold from Episode 12 of Kinesis’ ‘Live in the Vault’.

Physical silver bullion shortage

Over the course of the last few weeks, numerous industry sources have reported widespread physical silver bullion shortages across the wholesale market.

The Loco London and Loco Switzerland markets are among the European bullion markets restricting any supply of silver bullion 1000 oz bars. Trusted suppliers and reputable refiners have proved unable to supply physical silver bullion, with delays stretching months ahead.

So, with physical silver bullion in such short supply, why isn’t the silver price through the roof?

Why isn’t the silver price rising?

Major players, including JP Morgan, are up to their old tricks of manipulating the Silver Futures (SI) market and stopping the silver price from soaring.

The exact same tactics these major players have repeatedly used to rinse the price of silver, while strengthening long physical silver market positions.

Significant reduction in open interest in Silver Futures

Recent numbers show a great reduction of open interest in the Silver Futures (SI) market, which makes it increasingly difficult for insiders to employ their historical wash and rinse cycles.

The major bullion banks, the Federal Reserve, U.S. Treasury and Bank of International Settlements (BIS) use open interest in the paper market as the vehicle to prevent any rallying in the silver price.

What does this mean for the silver market?

The widespread physical silver bullion shortage and the substantial reduction in open interest foreshadow the delivery of a physical solution. With all signs indicating the emergence of real physical supply, it appears the industry insiders’ tight grip on the price of silver is finally loosening.

Andrew Maguire’s parting thought:

“I think a physical solution is inevitable because the physical market is drawing liquidity out of the paper markets.”

Next Episode: Andrew Maguire explores the latest twists and turns in the gold and silver markets with another special guest.

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Kinesis re-introduces physical gold and silver bullion as currencies that integrate with today’s online banking and payment solutions.