The Secret Silver Stockpile, Part II

In the first part of this commentary, readers were presented with the context which leads us to believe that there is (must be) a “secret stockpile” of silver, and that the holders of (the vast majority of) this stockpile are the ultra-powerful (industrial) Silver Users, allies of (if not tentacles of) the One Bank.

We know this because the crash in silver inventories between 1990 – 2005 meant we were on a collision-course with inventory default nearly a decade ago. Since that time; silver demand has intensified, while continued price-suppression has led to only anemic growth in mine-supply. These parameters for imminent inventory default have only been hidden by a massive (and clumsy) falsification of inventories.

We know the silver is still being consumed, in industry, in jewelry, and in record quantities of minted (legal tender) silver coins. We know that nearly a decade ago there was no longer enough silver remaining in inventories to satisfy that demand, while the supply-deficit in the silver market persists. Ipso facto, there must be “a secret stockpile” feeding silver into the bankers’ depleted warehouses – and delaying (not preventing) the inevitable default ahead of us.

Thus the purpose of making readers/investors aware of this secret stockpile is not to discourage or daunt them that this stockpile means that the One Bank’s manipulation games in the silver market can be perpetuated forever (or at least into the distant future). Rather, the purpose of this piece is to explain why we haven’t already seen “inventory default”, or simply the collapse of the silver market.

Obviously the two most-important variables here are the size of this stockpile, and the “burn rate” (the rate at which this stockpile is dissipating). With respect to the size of the stockpile; for convenience, let’s assume that this corresponds to Ted Butler’s estimated “global stockpile” (about 1 billion ounces).

Recall the definition of a stockpile: the amount of silver in existence which may come onto the market at some (undetermined) higher price level. With regard to any reserves of silver held by non-Western governments; with silver becoming a “rare earth” metal itself (to quote a quip from Butler), it’s safe to assume that any such stockpiles would not be coming onto the international market – at any price.

With respect to our own holdings of silver; we converted our wealth from paper to metal to escape the bankers’ fraudulent (and effectively worthless) paper currencies. It’s safe to say that for these “strong hands” still holding onto their silver that this silver will also not be coming onto the market – as long as it can only be converted back into this same, fraudulent paper.

This means that deeming all the world’s “stockpile” of silver to be held by the Silver Users is, at worst, only a small fiction. We have no way of precisely verifying this quantity, and we recognize that Mr. Butler’s estimate was (of necessity) a rough approximation. Thus we accept that there is some considerable (upward) latitude as to the size of this stockpile.

We can now safely assume (in hindsight) that there is no downward latitude of Butler’s estimate of a 1 billion ounce global stockpile, because if there was, it would have already been exhausted – and the global silver market would have already collapsed. This becomes apparent once we look at the real burn-rate of stockpiles.