Month: Aug 2014
Anyone old enough to remember that catch-phrase in the title, is old enough to remember: “The Lone Ranger” in monochrome on old Black and White TV’s, back in the sixties.
And silver, in this case, was the Lone Ranger’s horse.
But the catch-phrase is also a likely predictor of where the price of silver is going to go.
We know that the silver annual supply is shy by about 200 million ounces a year. The world uses about 900million ounces per year (for both industrial and investment purposes), but supply is currently only around 700million ounces.
The difference is made up by the stockpiles of U.S. silver in coins and bullion that have been in storage since 1934 (in the case of bullion) which was seized – I don’t think that’s too strong a word – on the back of President Eisenhower’s Executive Order 6102, on 3rd April 1933, and in 1934, in which he seized the silver too, and in 1964 (in the case of coins), when silver was removed from coins by President Lyndon Baines Johnson, and the Federal Reserve.
Incidentally, just a few months before in November 1963, if we recall the President Kennedy, was fatally shot in Dallas, Texas, in the Deeley Plaza. Perhaps unknown to many just a few weeks prior to that shooting, on June 4th, 1963, President John Fitzgerald Kennedy quietly issued executive order 11110, that created a right for the treasury to issue a currency backed by precious metals, and that would have meant the money of America, would have to be further backed by Gold and Silver, and not purely credit based, which would have seriously hurt the Federal Reserve, and the Banking families that own that private organisation.
At any rate, we also know that just ten years’ later, a story emerged in the U.S. Tattler magazine, while the Vietnam war was raging, that all the Gold in the Federal Reserve’s Vaults was gone. Was this the reason President Nixon closed the “Gold window” on August 15th, 1971?
[Edit] And then I found this…
At this time, the Fed claimed to still have 8,700 tons of gold, though whether it was there or not is moot – a full audit of the Federal Reserve has not been carried out since 1953, and as a result of the article, a partial audit in front of cameras and the press was carried out – for public consumption… (Was this similar to the recent image of her Majesty Queen Elizabeth, visiting the vaults of the Bank of England, where she was pictured walking past surried ranks of gold bars – whose ownership is unknown?)
At any rate, just three days after the story was printed, – one Louise Auchincloss-Boyer, who was revealed as the source of this story, died after falling from the window of her 10th-floor apartment situated at 530, East 86th Street. The event was ruled a probable suicide and duly reported in the New York Times the following day.
Note: 59-year-old, Mrs. Boyer who died On July 3, 1974, was the grand-daughter of none other than Col. House, the man who guided the Federal Reserve Act through Congress way back in 1913, for J.P. Morgan, the Rockefellers, and Henry Warburg and company. Although to date it has not been determined whether there was a relationship, Jackie Kennedy’s father was Hugh Auchincloss. It is also known that Jackie’s grandfather helped John D. Rockefeller found Standard Oil.
Mrs. Boyer’s death lit the blue touch-paper of a firestorm of controversy and rocked a previously inviolable element of Americana — the security of the nation’s gold reserves held at Fort Knox.
Perhaps not coincidentally, Mrs. Boyer, stated that the Federal Reserve System was charged with the secret sale of U.S. Gold supplies overseas to super-rich David Rockefeller at below market rates.
The story stated that the Rockefeller family was manipulating the Federal Reserve to sell off Fort Knox gold at low prices to anonymous European speculators who were really fronting for them.
Mrs. Boyer was the executive assistant to former Gov. Nelson Aldrich Rockefeller (Remember where that name, Aldrich, came from?) Nelson’s grandfather, Senator Aldrich, was one of the founders of the Fed), and she had served him in various ways since 1944, as her husband had served Laurence S. Rockefeller for many years before his death two years earlier.
So if the Fed’s Gold, really has gone? What price gold on the open market?
Silver also has suffered a similar fate.
In between 1927 and 1938 (The Depression years), The U.S. Government and Federal Reserve Paymasters, purchased 50million ounces of silver, from the remnants of the Chinese dynasty – who would go on to form the government of Formosa, now known as Taiwan.
The price was paid in Federal Reserve Bonds – known as: “Federal Reserve Notes” Each note was for $500,000,000, and the series accrued interest at the prevailing rate.
Some years later in 1963, on November 11th, an agreement by President Kennedy, was made to pay the interest by issuing a series of new FRNs, known as “Kennedy Bonds”. The Silver thus bought, was never really paid for as to-date, these bonds have not been redeemed. (You can read the full-story in “The Coming Battle” available on www.scribd.com)
Are Kennedy’s death, and the two events mentioned above related? Perhaps… We can but speculate. But 1964, was the final year in which precious metals appeared in U.S. money.
The 50 million ounces, together with U.S. bullion, and the Treasury silver coinage amounted to a huge money supply, that for the Fed’s dominance to work as planned, had to be eliminated.
By all accounts 10 billion ounces have gone from the vaults over the last 70+years, and that over-supply has helped keep the price of silver depressed over that time period. But it has all but gone. And, as to the future price? Who knows?
It depends on how mission-critical silver is to business operations, and what percentage of that is required of the total value of their products, and whether the world supply can quickly rise to meet demand (or not).
If a business needs say 5 million ounces per year – highly possible, given that according to some reports, 15Kg is used in one Pershing II cruise missile… and it is used in tiny amounts, so a 100% rise might not matter much – neither might a 500% rise in price, but if you can’t GET ANY, at ANY PRICE… and your business has none, and there are NO substitutes…
Then the price is irrelevant… YOU WILL PAY… and for many applications… THERE ARE NO SUBSTITUTES. (Except Gold for some)
And the price of gold is currently 65x that of silver…
That’s one heck of a price jump. And when that happens – the dollar is toast.
And as yet another Bank is at risk of failure – Banco Espirito Sainto, in Portugal, and the Argentinian government defaults on its bond payments, is “The End” I spoke of recently upon us?
To paraphrase Churchill in 1940 after the Battle of Britain…
“It is not the end, it is not even the beginning of the end, but it is perhaps, the end of the beginning.”