The Gold & Silver Takedown & A Major Geopolitical Eruption

With oil trading close breaching the critical $100 level, today John Embry told King World News, “The last thing the world needs at this point is a major geopolitical eruption with disastrous implications.”  Embry also spoke at length about the incredible events that are taking place in the gold and silver markets.  Below is what Embry had to say in this powerful interview.

Embry:  “We are in a bottoming process in gold and silver.  The intensity of the takedown in gold has been incredible.  This was the largest smash in gold since it became freely traded in 1971.  Gold plunged roughly 25% during the last quarter.

The only potential negative for gold was this ridiculous suggestion of ‘tapering.’  I don’t think there is any possibility of that taking place.  If it were going to happen the stock market would have collapsed.  So this was an orchestrated takedown specifically in the gold market, and it’s been a violent takedown which has gone far further than it should have….

“This has injured morale and even made some of the true believers wonder what is happening.  But this is how bottoms are made.  In the midst of all of this carnage, physical demand is incredibly strong and as a result you have more and more gold leaving the Western central bank vaults.

It’s also obvious that the commercials are in the process of getting long the gold market for the first time in over a decade.  I’ve always believed that when we saw the commercials move to the long side of the gold market that it would presage a major up-move.

So the gold market is in the process of moving into a remarkable position right now, and I expect an explosive move higher in coming months.  There is nothing positive taking place in the global economy, and now we have this mess flaring up in Egypt which has the price of oil trading near $100.  That’s the last thing an already weak global economy needs to see.


JPMorgan’s vault gold declines

Good evening Ladies and Gentlemen:

Gold closed up  by $1.30 to $1398.40 (comex closing time).  Silver rose by 6 cents to $22.46  (comex closing time)

In the access market at 5:00 pm, gold and silver finished trading at the following prices :

gold: 1404.10
silver:  $22.56

I am not going into the trading of gold and silver because you all know that it is manipulated throughout all time zones, so I will not waste your time.

At the Comex, the open interest in silver rose by 739 contracts to 145,734 contracts with silver‘s fall in price on Tuesday by 32 cents.  The silver OI is  holding firm at elevated levels . The open interest on the entire gold comex contracts fell  by 2909 contracts to 375,970 which is extremely low. There is no question that all of the weak speculators in gold have now departed.  Only the strong remain. The number of ounces which is standing for gold in this  June delivery month  is 936,400 or 29.12 tonnes.The number of silver ounces, standing for delivery is represented by 620,000 oz. No doubt this level will climb as the June month proceeds.

Tonight, the Comex registered or dealer gold lowers to  1.513 million oz or 47.06 tonnes.  This is getting dangerously low.  The total of all gold at the comex fell slightly and now it is just below the 8 million oz at 7.985 million oz or 248.36 tonnes of gold.

The GLD  reported another loss in gold inventory to the tune of 2.7 tonnes. The SLV inventory of silver also remained firm with no losses.

We have physical stories today from Addison Wiggin on the fraudulent leasing of gold and silver;Jessie from the Jessie’s American cafe on the low registered gold inventory at the Comex with additional inputs from zero hedge with respect to JPMorgan’s inventory. Dr Paul Craig Roberts discusses the price manipulation of gold with the report.

Finally, Adrian Ash discusses events in India where the government banned all credit related purchases of gold.  That is correct, gold can only be purchased with cash.  Gold paid no attention as it rose soon after the announcement.

On the paper side of things, we have a report from Dave of Denver/the Golden Truth who is paying attention to the signals that are being emanated out of the junk bond market.

We have  great commentaries for you from Bill Holter  on the ramifications of the past 6 days of global trading and how we must prepare for the inevitable.

Wolf Richter provides a superb presentation on how China is gobbling up all major assets that it can find.

Pivotfarm gives a good thorough analysis on what is going on in Egypt today.

We will go over these and other stories but first…………………

Let us now head over to the comex and assess trading over there today.
Here are the details:

The total gold comex open interest fell  by 2909 contracts from  375,970 down to 373,061 with gold falling by $14.60 yesterday. The front active month of June saw it’s OI fall by 225 contracts from 3540 contracts down to 3315. We had 63 contracts served upon our longs yesterday.  We thus lost 162  contracts or 16,200   that will not stand this month. The next delivery month is the non active July contract and here the OI fell by 62 contracts up to 537.  The next active delivery month for gold is August and here the OI fell by 2725 contracts from 215,940 down to 213,215 . The estimated volume today was poor at 129,971 contracts.    The confirmed volume yesterday was also poor at 126,177 contracts. It looks to me like all of the paper gold longs have been washed out!!

The total silver Comex OI completely plays to a different drummer than gold. Its OI rose by 739  contracts to 145,734,  with  silver‘s fall in price to the tune of 34 cents yesterday.  The front non active June silver contract month shows no gain or loss in OI contracts. We had 0 notices filed yesterday so in essence we neither gained nor lost any silver ounces standing for metal for the June contract month.   The estimated volume today was fair, coming in at 39,988 contracts.  The confirmed volume yesterday was better at  at 42,750.

Comex gold/May contract month:

June 5/2013

the June contract month:

Withdrawals from Dealers Inventory in oz
nil  (0 oz)
Withdrawals from Customer Inventory in oz
21,034.434  oz (JPMorgan, HSBC)
Deposits to the Dealer Inventory in oz
Deposits to the Customer Inventory, in oz
No of oz served (contracts) today
 333 (33,300  oz)
No of oz to be served (notices)
2982 (298,200 oz
Total monthly oz gold served (contracts) so far this month
6382  (638,200  oz)
Total accumulative withdrawal of gold from the Dealers inventory this month
100.000 oz
Total accumulative withdrawal of gold from the Customer inventory this month
35,324.352 oz
We again had good activity at the gold vaults
The dealer had 0 deposits and 0  dealer withdrawal.
We had 0 customer deposits today: (very strange for a huge delivery month of June)

Liquid Gold in Your Pantry

When selecting foods for your stockpile, the most budget-friendly, space-conscious way to do it is by selecting items that multitask. This criteria places honey high on your “to-buy list”. Tess Pennington of Ready Nutrition lists honey as one of the top SHTF sweeteners to store.Honey is indeed nature’s sweetener, but don’t write it off as just a condiment.The sticky sweet substance is far more than something to stir into your tea or spread on your toast.

Since ancient times, the healing properties of honey have been documented. Some of this knowledge seems to have been forgotten (and purposely marginalized), and drug companies have replaced honey with chemical ointments, antibiotics and antivirals. (This is, as always, about money – they can’t patent honey, can they?)

  • Honey has been used in Ayurvedic medicine for more than 4000 years. Honey is an ingredient in 634 remedies in ancient Hindu vedic texts.
  • The Ebers Papyrus of ancient Egypt expounded on the medicinal properties of honey, and it is contained in nearly every ancient Egyptian remedy.
  • In ancient Greece, Hippocrates, the “Father of Medicine” wrote, ”Honey and pollen cause warmth, clean sores and ulcers, soften hard ulcers of lips, heal carbuncles and running sores.”

Just Because the Label Says “Honey” …

Now, you can’t go and get the ubiquitous squeezy bear full of honey at the grocery store and expect it to cure all your ills. In fact, the some of the squeezy bears don’t even contain real honey at all. Our good friends at the FDA have defined honey as “anything containing pollen.

Even with that broad definition, some of the Chinese companies have “ultrafiltered” the honey that goes into those little bears to the point that there isn’t even any pollen left.

I bet you wonder why – I did.

Ultrafiltering removes the pollen so that the source of the honey cannot be determined. Providers of cheap honey do this so that consumers cannot discover the origin. Often the cheap honey is tainted with pesticides, illegal antibiotics, and heavy metals. Some of the cheap honey is watered down with High Fructose Corn Syrup. Much of the questionable honey originates in China.

According to independent testing ordered by Food Safety News and performed by Vaughan Bryant, a professor at Texas A&M University and one of the nation’s premier melissopalynologists, or investigators of pollen in honey.76% of the golden stuff sold in grocery stores as honey doesn’t contain even one little drop of pollen.

  • 76 percent of samples bought at groceries had all the pollen removed, These were stores like TOP Food, Safeway, Giant Eagle, QFC, Kroger, Metro Market, Harris Teeter, A&P, Stop & Shop and King Soopers.
  • 100 percent of the honey sampled from drugstores like Walgreens, Rite-Aid and CVS Pharmacy had no pollen.
  • 77 percent of the honey sampled from big box stores like Costco, Sam’s Club, Walmart, Target and H-E-B had the pollen filtered out.
  • •00 percent of the honey packaged in the small individual service portions from Smucker, McDonald’s and KFC had the pollen removed.
  • Bryant found that every one of the samples Food Safety News bought at farmers markets, co-ops and “natural” stores like PCC and Trader Joe’s had the full, anticipated, amount of pollen.

The FDA, despite their definition, doesn’t seem to care about the false labeling of these products. The FDA has ignored requests from Congress, beekeepers and the honey industry to develop a U.S. standard for honey. Less than 5% of honey on store shelves has been tested by the FDA for purity.

How can you be sure you are actually buying honey?

As with most products, the closer you can get to the actual source, the better off you’ll be. Short of scooping the sticky stuff directly from the hives, purchase as locally as possible, directly from beekeepers or at your favorite farmer’s market.

There are more than 300 varieties of honey sold in the US. The difference in these varieties is the source of the pollen. Buckwheat honey is reputed to have the most healing properties of any type of honey. As a general rule of thumb, the darker the honey is, the more benefits it has.

Pasteurized vs. Raw

The FDA seems more concerned that honey be pasteurized (i.e.,heat processed) than that the honey actually be honey. The problem with pasteurization is that it kills off many of the beneficial components in the honey, most particularly propolis.

…The processing of honey often removes many of the phytonutrients found in raw honey as it exists in the hive. Raw honey, for example, contains small amounts of the same resins found in propolis. Propolis, sometimes called “bee glue,” is actually a complex mixture of resins and other substances that honeybees use to seal the hive and make it safe from bacteria and other micro-organisms. Honeybees make propolis by combining plant resins with their own secretions… Other phytonutrients found both in honey and propolis have been shown to possess cancer-preventing and anti-tumor properties. These substances include caffeic acid methyl caffeate, phenylethyl caffeate, and phenylethyl dimethylcaffeate. Researchers have discovered that these substances prevent colon cancer in animals by shutting down activity of two enzymes, phosphatidylinositol-specific phospholipase C and lipoxygenase. When raw honey is extensively processed and heated, the benefits of these phytonutrients are largely eliminated…

Despite the important benefits of raw honey, there are some caveats.

  • Infants under the age of 1 should not be fed raw honey because of the risk of botulism. Their underdeveloped immune systems cannot prevent the Clostridium botulinum pores from multiplying. Botulism can cause paralysis and death.
  • People with bee venom allergies sometimes suffer an allergic reaction to honey. These allergic reactions can easily become life-threatening.
  • There is a higher risk of food poisoning when you consume raw honey vs pasteurized honey.

With the knowledge of the above warnings, I still purchase only raw honey for my household. The pros outweigh the cons for me.

The Benefits of Raw Honey

Raw honey is anti-viral, anti-bacterial, and anti-fungal, making it one of the most healing substances on earth. It is also highly nutritious. Honey is a natural multivitamin. It contains significant amounts of: B1, B2, B3, B5, B6, C, magnesium, potassium, calcium, sodium chlorine, sulphur, and phosphate.


Honey has been used historically both internally and externally for a variety of concerns:

  • Apply honey liberally on a wound to speed healing.
  • Apply honey to a rash, burn or scrape, and cover loosely.
  • A tsp taken 3 times per day can help prevent seasonal allergies.
  • A tbsp of raw honey sprinkled with cinnamon taken 3 times per day can boost the immune system and fight off a cold or sore throat.
  • A spoonful of honey can soothe a cough caused by a tickle or sore throat.
  • A couple of tablespoons of honey stirred into hot tea can lessen the symptoms of a cold or flu.
  • Honey mixed with equal parts coconut oil makes a wonderful skin conditioner.
  • Some studies say that honey can help control blood sugar fluctuations.
  • Raw honey increases the production of antioxidants in the bloodstream.
  • Recent studies proved that honey reduced overall cholesterol levels when taken daily.
  • Honey applied topically to a wound or incision moistens the skin and helps prevent or reduce scarring.Source: