Platinum Markets – Brace for Uncertainty, Keep Door Open for Opportunity

by Aran Murphy

The market-makers wondered aloud at the end of 2016:  Which way will our economy turn with new policy makers in Washington? Will our national debt become difficult to service with higher interest rates? Will our unfunded pension liabilities force broad-scale local bankruptcies? Or will we pull the government back, liberate our taxpayers and traders, and allow our entrepreneurial base to do what it does best?

A consensus emerged in December that our days of forestalling hard debt and demographic-driven choices are limited. Many worry that it is too late, or that the incoming President is too politically inexperienced to put our national finances back on track. Others think – with the recently elected – we may see tremendous opportunity to re-establish growth and loose our economic fetters. From bonds to stocks to more pure measures of market volatility, President-elect Trump continues to bring opposing views out after long years of – what many will consider stagnating – policy consensus.

After the US elections, stock market indices took off. The bond markets tumbled. The Federal Reserve Bank raising rates didn’t help bonds, of course. Gold, silver and platinum prices eased as the world creeps out from under the Sword of Damocles that has long been the official policy of zero interest rates(One can’t have functioning capital markets when central banks are pricing capital at zero). The markets overall seem tentative about what direction, economically, the US should expect. Will the US experience crisis, or will it find the real growth in incomes and economic opportunity that has eluded us for the past 12 years?

Uncertainty and Opportunity – Platinum can reduce the former, but increase the latter in one’s portfolio.

Following the mixed signals of the markets at year-end 2016, one could be forgiven for being conflicted. Should an investor protect investments against debt deflation, or worse, Venezuela or Zimbabwe style inflation? Or should one avoid more overt economic collapse by staying out of markets altogether? On the more optimistic side, might an investor sell stocks for cash and therefore miss a massive potential economic revival?

We believe that physical platinum holdings in a portfolio will allow protection against inflation and financial asset deflation, while allowing positive upside in value when the US economy regains its freedom and hence its strength.  

Platinum has typically traded at huge premiums over gold (graph below).  Today, with gold at $1,192 and platinum at $974, you can buy it at a 18% discount! An old investment rule of thumb is “when platinum sells at a discount to gold, back up the truck, Chuck, and load ‘em up!”

What makes platinum different in a portfolio than gold? For starts, there is relatively little reserve platinum above ground. This is unlike gold, for which nearly all the gold ever mined is readily available above ground. This helps stabilize prices as stocks flow to market in response to price moves. A relative lack of above-ground supply makes platinum more volatile. Volatility can make Monday morning quarterbacking a temptation, second- guessing a better price for one’s transaction no matter what one invests in. However, platinum’s volatility makes it ideal as a portfolio diversifier. With low correlation to other asset classes and high volatility, the metal packs disproportionate weight per dollar investment. Professional portfolio managers who follow Markowitz portfolio theory might see platinum as a diversifier of returns…as “high octane gold.”   Continue Reading →

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Beware Of The Dollar: The U.S. Ponzi Economy Is Malfunctioning.

Gold is the true “safe-haven” currency. The U.S. dollar is “strong” only when compared to more toxic currencies. Since the 2007 crash, the dollar has fallen about 100% against gold. 

Dramatic Spike In Fund Flows Into The Gold ETF GLD And A Major Warning On The U.S. Dollar

On the day markets FROZE worldwide [Aug. 9, 2007], the price of gold was $662.60/oz [London p.m. fix]. It now takes twice as many dollars to buy the same Troy ounce of PHYSICAL gold. The rising price of gold is signaling declining confidence in the dollar-reserve system.


It is generally acknowledged the current crisis in financial markets began with a liquidity freeze on August 9, 2007. France’s largest bank, Banque BNP Paribas, cited that date as “the day liquidity completely evaporated from certain segments of the U.S. securitisation market.”*

Image result for france BNP paribas

After confidence in the banking sector collapsed and interbank lending seized up, the Federal Reserve created many trillions of dollars [of brand-new credit] to bail out financial institutions and restore confidence.

From nowhere — trillions of U.S. dollars sprang into existence [$1 TRILLION = ONE MILLION MILLION DOLLARS].

Americans were told bailouts were necessary to ‘stimulate’ the economy: Quantitative Easing [QEI, QEII, and QEIII-$1,020,000,000,000/ per year]; the “Stimulus Package;”  “Operation Twist;” “Term Asset-Backed Securities Loan Facility” [TALF]; “Troubled Asset Relief Program” [TARP]; AIG bailout; Chrysler bailout; General Motors bailout; Extended Unemployment Benefits, “Cash for Appliances,” “Cash for Clunkers;” $8,000 “Home-Buyer Tax Credit.” (And the U.S. funds 17.9% of United Nations IMF/ World Bank bailouts.)


Although the Federal Reserve is a private entity and cannot be audited, Congress acquired documentation of post-crash bail-outs exceeding sixteen trillion dollars [$16,000,000,000,000 went to financial institutions in China, Europe, etc.]. After that, the Federal Reserve bought up “troubled assets” [about $1.3 trillion of “Mortgage-Backed Securities”], becoming the largest private holder of residential real estate in the United States.

The stock market rose significantly after the 2007/ 2008 crash — with very little retail participation. But after QE money injections ended the summer of 2011, the market declined; and world credit markets FROZE up once again.

The Fed’s resumption of pumping QE trillions into the market [purchasing corporate bonds and stocks] has resulted in stock market highs. But since October 2014, market “events” have been increasing in magnitude and frequency — with triple-digit swings, flash crashes, and diminished liquidity in junk bonds and derivatives. Volatility went crazy in August 2015 and in the first quarter of 2016.

Today, prices for stocks, rent, healthcare, and gold are rising because the value of the dollar is declining. ‘Stimulus’ trillions water down the purchasing power of the dollar just as water dilutes the potency of a shot of whiskey.

NOTE: Prices are rising faster than the government’s Consumer Price Index [CPI] indicates. On the following chart, the blue line represents calculations based on traditional methods of accounting, courtesy of John Williams,  



Besides early signs of surging price inflation, earnings growth has never been lower and production is slowing down sharply. Bill Gross recently said the trend for productivity is negative.’

GDP [Gross Domestic Product] is the annual measure of the market value of all goods and services produced by a nation. GDP is equal to total consumer spending plus total government spending plus total investment plus the value of all exports — minus the value of all imports.


More than 94 million able-bodied workers are not counted in the government’s unemployment statistics. The ShadowStats Alternate Unemployment Rate for August 2016 is 23%.

High unemployment is structural. Over many decades, “FREE TRADE” treaties have served to hollow out the manufacturing base. Foreigners now supply the majority of the manufactured products Americans use [manufacturing employment down 14% since 2006]. The jobs that have been lost are not coming back to America’s shores.


In the twenty-five years leading up to the financial crisis, the American consumer —rather than manufacturing was the engine of growth for the U.S. economy. Personal Consumption Expenditures [PCE debt] kept growing and compounding.** For a long time, the debt-based economy seemed to work.

From 1998 until 2007, consumer spending [debt] plus U.S. government spending equaled 96% of the growth in GDP. During the same period, U.S. exports plus business investment accounted for only 3% of GDP growth. **

Before the bottom dropped out of the U.S. housing market, many people carried the maximum amount of debt their income levels would allow them to bear. Personal, maxed-out debt bubbles began to pop about a year before the crash.

For years, the Federal Reserve has been praised for United States economic “RECOVERY.” However, the central bank merely “papered over” the crisis — with unprecedented money printing and zero percent [0%] interest rates. The results of the insane CURE” for the debt-crisis are textbook:

• Public debt is growing.
• Tax revenues are declining.
• Corporate profit margins are narrowing.

• Industrial demand and manufacturing are collapsing.
• Consumer spending, retail earnings and sales are contracting.

WE ARE HERE: Deteriorating household wealth, falling consumer confidence, stagnant incomes, and low work-force participation. Instead of spending and consuming, anxious savers are sitting on their money; fearful businessmen and worried individuals are trying to pay down debt.


There are three phases in a credit collapse. In 2013, the U.S. economy passed into the second stage. America’s shrinking consumer base is no longer sufficient to drive GDP growth; and economic conditions are deteriorating. During Phase II, money-printing will increase and business activity will slow to a crawl.

The combination of rising public debt, falling production, and currency debasement always ends in credit collapse. There are no historical exceptions.  

As the Federal Reserve explores “broader asset purchases” [direct interventions in the market] and negative interest rates [Mrs. Yellen, Feb. 2016], smart investors are trying to escape from the banking system [and third-party risk].

panic gold

Protect your wealth by taking delivery of actual silver and gold. After 9 years of monetary ‘stimulus,’ new dollars by the wheelbarrow are chasing a limited supply of PHYSICAL coins. 

Submitted by Denise Rhyne



* Schumpeter blog at; Aug. 9, 2012, Associated Press.
Stagflation: Persistent high prices combined with high unemployment and stagnant demand in a country’s economy.”  Oxford dictionaries. com
** In the twenty-five years leading up to the 2007 crisis, Personal Consumption Expenditures [PCE] drove U.S. GDP growth. Consumer spending [debt] accounted for 82.5% of real GDP growth. Each year, PCE grew 3.5% – continuously compounded. “Expressed in terms of its contribution to average quarterly real GDP growth during the decade ending in the third quarter of 2007, Personal Consumption Expenditures [PCE] accounted for 81.3%.”
William Emmons Jan 2012 Federal Reserve Bank of St. Louis
After World War II, the U.S. was a manufacturing dynamo. The maximum debt-to-GDP ratio (debt as a percentage of Gross Domestic Product) was 108.7% in December 1946 [WWII debt]. The minimum debt-to-GDP ratio was 23.9% – December 1974. Rapid growth –driven by manufacturing— wiped out a large portion of the WWII debt. White House Office of Management and Budget
A nation loses financial flexibility when its debt-to-GDP ratio exceeds 100%. At some inflection point, the ratio of debt-to-GDP reaches a critical imbalance. When debt exceeds the critical thresh-hold, economic growth begins to deteriorate rapidly. Suddenly, manageable debt can become unmanageable (when borrowing rates rise).
Economic conditions in the U.S. parallel the conditions Germany faced in 1920/ 1921: Production was slowing and revenues were declining. In response, central planners raised taxes, increased healthcare/ education spending, and expanded social programs funded by money printing. The German monetary system collapsed in 1923: GLOBAL DEFLATION WILL LEAD TO CREDIT COLLAPSE and CURRENCY FAILURES.
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A Silver Short Squeeze (a RUN on Silver) Is On The Way

Everything has gotten bigger since the last major silver short squeeze (2011). Debt is bigger, leverage is bigger, and the number of major players taking delivery of physical silver is bigger.

The concentrated short positions in silver held by a small number of “bullion banks” DWARF the Hunt brothers’ 1980 long position of only 100 million oz.

Based on supplies of actual, available bullion and the last six months of demand, we expect to see a short squeeze (RUN) on silver [and gold] in 2017. Odds are: SILVER COINS will be the trade of the year.

Since August 2015, and especially since the beginning of 2016, large private banks, central banks, mega-investors, China, India, Russia and other sovereigns have been aggressively dumping dollars in exchange for precious metals. As “good delivery” bars have become available, buyers have been taking delivery of gold and silver by the metric tonne (gold 400 oz bars; silver 1,000 oz bars).


A scramble for actual silver (and gold) is coming. When silver and gold began moving like this five years ago, demand overwhelmed supplies. Supplies of coins and bars quickly dried up around the world. As a consequence of shortages at the five major mints, silver climbed 160% in less than a year. Coin dealers could not get delivery of bars or coins for 8-12 weeks.


Before World War II, the United States owned about two billion ounces of silver for national defense. Now, that strategic stockpile of silver is gone. That means the U.S. Mint must acquire silver bullion on the open market. 

1 oz American Silver Eagle

In the last few years, demand for American Silver Eagles has gone through the roof. But although demand for U.S. silver coins has been extraordinary, the U.S. Mint has stopped allocations of 1 oz American Silver Eagles to primary dealers in 2016. 

1 oz Canadian Silver Maple Leaf

Something has been fishy in the silver market since 2011.
 We have had supply disruptions because of high demand— yet, silver has been selling at the price it costs to get metal out of the ground. (Most miners break even at $18/oz.)


Compared to the gold market, the silver market is very small. It is estimated the value of the entire silver market is somewhere between $30 to $45 billion. Certain financial institutions have been able to manipulate the silver market by using a trading technique known as naked silver shorting.

The price of silver has been easier to suppress than the price of gold. That is why the ratio of gold to silver has gotten so far out of whack (78 to 1). Short-sellers have been able to keep a lid on the silver price since the last run on precious metals. Each time silver began to explode to the upside, the shorts went into high gear, increasing short positions until the price was either brought down, or the directional move was stopped.  

Premiums on “bullion” coins are rising. The spot price quoted by the exchanges in London and N.Y. is disconnecting from the price buyers have to pay to acquire PHYSICAL silver. The physicals market is determining the price of actual silver.

For now, the NAKED PAPER SHORTS have provided you with the opportunity to buy actual silver at a bargain price. Buy silver now while we dealers still have coins: (Model  Precious  Metals  Portfolios).

ROLL OF Mercury Dimes (50) Coins U.S.90% Silver Various Dates NO RESERVE!!!

Buy real U.S. silver money. Pre-1965 dimes,
quarters and halves are 90% silver.

By Denise Rhyne


Physical silver coins (and bars) carry a premium over the benchmark “spot price.” A dealer’s cost includes the coin or bar premium. Premium is a function of supply and demand. Both the spot price and the premium on a particular bar or coin are constantly fluctuating. Premiums are bid up if supply is low and demand is high. 

During the coming economic upheaval, gold and silver will perform as “monetary metals” and the world’s only real money:  GLOBAL DEFLATION WILL LEAD TO CREDIT COLLAPSE/ CURRENCY FAILURES.

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Gold Price Manipulation Will End.

We are living in an age of manipulated financial markets – interest rates are artificially low, and the stock market is artificially high. Demand for physical gold is at historic highs, supplies are strained, yet the price is relatively low. When will manipulation of the price of gold come to an end? 2016.

First, it is important to understand why the Federal Reserve is pulling out all the stops to repress the price of gold. A high gold price makes the dollar look bad. No one would want dollars if the price of gold were allowed to rise according to actual demand and actual supply of PHYSICAL bullion.

Over many decades until 2007, the Federal Reserve kept the price of gold artificially low by selling tons of bullion. However, coordinated gold sales by central banks stopped after the 2008 crash.

Since then, central banks (especially in the Eastern Hemisphere) have been buying gold — feverishly. That is when rumors began flying about shortages in New York and London. 

Since the crash, there has not been enough gold to go around. Although the world’s biggest refiners have been working 24/ 7, shortages and delays have occurred every year at the five major mints.

Many nations have demanded repatriation of their gold “stored” at the N.Y. Federal Reserve Bank; but they are still waiting. The Fed has returned only a few hundred tons of the thousands of tons requested by countries around the world.

The West’s supply of “good delivery” bars is depleted. Most of the 400 oz bars in London/ Canadian/ New York vaults are spoken for. What happened to the gold? It flowed into the Eastern Hemisphere and the private vaults of the central banks and the über-rich.

Now that most of the good delivery bars have been sold, what do bullion banks sell to keep the price of gold artificially low? Instead of PHYSICAL gold, agent bullion banks such as GoldmanSachs, HSBC, and JPMorgan flood the market with massive supplies of PAPER gold (derivatives sold in the commodities futures market).

When will the manipulation STOP?  When the COMEX and the LBMA openly default. Gold price manipulation will stop when the exchanges openly settle delivery contracts with cash (this has already been occurring in SILENT DEFAULTS).

Exchange PAPER currency for REAL money
while gold and silver coins/bars are still available.

In 1933, the price of a 1 oz $20 gold piece was $20; today, the price of an old $20 Gold Piece is about $1,280. In 2000, the price of a new 1 oz gold coin was only about $300; today a new American Gold Eagle is more than $1,230.

The Federal Reserve has been manipulating the price of gold ever since its creation in 1913. For forty years, the Fed held gold at the artificial price of $35 per ounce while the central bank wildly inflated the monetary base of the United States.

In 1971, the dollar was completely de-linked from gold. In time, all currencies in the world were de-linked from gold and silver. That means all governments are now paying their sky-rocketing debts with printing-press-money (paper currency that is backed merely by faith). 

“Hard currencies” are backed by gold/ silver. In the past, nations with hard currencies kept countries with “fiat currencies” honest. The existence of national hard currencies discouraged countries from wildly inflating their money supplies. If one nation debased its money, people could flee from the fiat money, and flock to available hard currencies.  

For the first time in the history of the world, no paper currency is backed by gold or silver. The Federal Reserve has no restraints because the dollar is backed by nothing but faith. With a key stroke, the central bank creates trillions of dollars of credit. For the first time, gold and silver coins are the only hard currencies and the only real competition for the pound, dollar, Euro, yen, etc.

That is why central banks coordinated gold bullion sales (1971-2007) in an effort to keep the gold price low. Gold cannot be printed; but imagine the unrestrained growth in the supply of paper dollars and other currencies in the last forty years. 

To maintain the illusion of king dollar, an all-out war has been waged to trash gold in the mind of the public. Although gold is and has always been the premier currency, only about ½ of 1% of Americans own gold bars and coins.

In the long-term, holding dollars guarantees a loss. Compared to the dollar, the price of a 1 oz gold coin is UP about 6,000% in 80 years. Paper dollars have lost that purchasing power over time.

By Denise Rhyne

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Weights, Measures & Balancing Scales

For almost 150 years, the United States owned 1 oz of gold for every 20 paper dollars. It is now estimated the U.S. owns 1 oz of gold for every 25,000 paper dollars. But does the U.S. own any gold at all? Is U.S. gold in private hands? (According to the 1981 Gold Commision, government officials have been denied thorough auditing rights to Fort Knox, etc. No thorough audit has been allowed since 1955.)

From where did the Federal Reserve acquire the gold that was periodically dumped on the market until 2007? Did the Fed dispose of more than 8 tons (261.5 million oz) of U.S. gold?

Canadian Gold Maple Leaf 1oz and Gold Bars


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Global financial markets are integrated and inter-dependent. The markets look ahead and trade on anticipation. It is now extremely bullish for gold!

Zero% Interest Rate Policy (ZIRP)

Since 2008 (for the first time in the history of the world), 90% of the developed countries have had 0% interest rates and a steady flow of “Quantitative Easing” (QE). A small number of “too-big-to-fail banks” [domestic and foreign] have been able to borrow from the Federal Reserve at or just above 0%. (For seven years, overnight/inter-bank lending was 0% to .25%. On Dec. 16, 2015, the nominal rate was raised to .25%; the maximum rate is now .50%). 


Credit markets FROZE worldwide on August 9, 2007. In response, the Federal Reserve created many trillions of dollars of credit to bail out failing financial institutions [here and abroad] and “to stimulate” business activity. Economists said the “wealth effect” of rising asset prices would propel the world economy from stall-speed to escape-velocity.

People placed their faith in the wisdom of the central planners. Nations, large corporations, and small businesses mis-diagnosed risk because their perceptions of risk were based on rosy forecasts of “economic recovery.” 

Coordinated central bank interventions created bull markets in stocks from the East to the West. Commodity prices soared as a result of the “credit glut.” Hyper-credit caused distortions in prices for real estate, art, collectibles, and bonds. During the boom, malinvestment led to tremendous over-production.

Artificially low interest rates
cause a boom, and then a bust.

As a consequence of over-production, the over-supply put downward pressure on prices, driving crude oil from $105 (June 2013) to $32 per barrel (Jan. 2016). Today, asset deflation is dragging down the economies of commodity-exporting countries. Exporters to China are suffering. Cratering commodity prices and the drop in the price of oil have been causing “credit events” and violent turmoil in all market sectors. 

Your Guide to Our New Financial Panic

During the boom phase, nations borrowed heavily in cheap dollars. Now, the countries must service huge debts with expensive dollars. They borrowed in anticipation of a strong “recovery;” now those loans are going bad.

Rising Debt

Around the world, debt is rising, bank credit is contracting, and money velocity is SLOWING. Deflation means a sharp slow-down in global production, corporate credit down-grades, diminishing liquidity in bond markets, bankruptcies, defaults. 


Here at home, the real economy is shrinking. Money velocity is slowing dramatically: people are not spending (and banks are not lending). More Americans are closing businesses than starting businesses (bankruptcy numbers are soaring); 6,000 retail chain-stores will close this year; U.S. manufacturing is collapsing; record numbers of shopping malls are closing; and corporate profits are tanking (the entire S & P 500 index).


Zero per cent interest rates are driving world economies toward systemic instability. Since the crash, the world credit system has come close to locking up in Nov. 2011, Oct. 2014, and Aug. 2015. As a result, emergency monetary interventions are becoming increasingly radical (bail-ins, capital controls, negative interest rates). 

Negative Interest Rate Policy (NIRP)

Negative interest rates are a tax on money that began in Europe. In June 2014, Europe began taxing deposit money with negative interest rates; it now costs 0.3% to keep money in Euros.

As a consequence of the weaker Euro (and yen), capital flowed to the U.S.; and the dollar rose 9% to 25% against all other fiat currencies. That is why the price of gold is a bargain in dollars compared to the price of gold in all other currencies.

Government bond yields throughout Europe have gone negative. The European Central Bank (ECB) has suggested it will cut the deposit rate from -.3% to a further negative level (-.5%?). The chief of the Bank of Canada said (Dec. 8) rates could be negative (-.5%) in Canada later in 2016. Federal Reserve Bank officials (including Mrs. Yellen) have suggested negative rates are on the table for the U.S. 


One way or another, Americans are going to be taxed on their money. As revenues continue to fall, the government will fix its sights on your retirement funds and savings. Expect more Quantitative Easing (QE4), negative interest rates, and further capital controls.

Precious metals have provided safe-haven from
out-of-control governments
for 1,000s of years.

Click for a larger photo

In all history, there has never been a “supply
glut” in precious metals. Silver and gold are rare.
The Federal Reserve cannot print gold and silver

 Submitted by Denise Rhyne

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Customized Portfolios?
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The golden constant is portfolio insurance: Coins and bars will retain purchasing power during periods of hyper-deflation, hyper-inflation, credit collapse, or war. GOLD IS A PRUDENT INVESTMENT.

In 44 years, the U.S. economy has been fundamentally transformed:   America’s Fundamental Transformation.

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Very Little Available Gold is Left in the West.

The last time gold and silver moved like a freight train was in the 2011. One country triggered the RUN on gold and silver. Overnight, supplies of gold and silver dried up; and mints worldwide ran out of deliverable bullion.

In less than nine months, gold and silver made new highs. Gold rose $600; silver climbed 160%. Silver was just as scarce as gold. (Silver was $9 Sept. 2005; $50 April 2011.) 


When the leading currencies were backed by gold, the United States exported more than 40% of all manufactured products used by the world. While today the U.S. is the greatest debtor nation, fifty years ago, America was the greatest creditor nation. Back then, other countries needed sufficient gold to buy made-in-America products.

The Federal Reserve Bank of New York
AP photo by David Karp


To make foreign exchange easy (and to keep their gold safe during World War II), nations stored a large percentage of their gold reserves at the Federal Reserve’s vaults in New York. From transaction to transaction, the 400 oz gold bars did not move. The central bank simply transferred the numbered bars from the account of one country to another – on paper.

After the dollar’s tie to gold was severed in 1971,
countries were content to keep part of their gold
reserves “safely stored” in New York..… until 2011.


In that year, Venezuela rocked world markets by its highly-publicized demand for delivery of its gold reserves. Venezuela was the catalyst for the worldwide run on precious metals that drove silver to $50/oz and gold to $1,900/oz.

Venezuela’s demand for physical delivery of 210 metric tonnes proved the gold was not safely stored and allocated (about half had been stored in the Bank of England). Gold markets in London and New York went crazy in the ensuing four months until “bullion banks” could locate the gold bars for shipment to South America.

Venezuela took delivery of 17,000 “good delivery”
bars. Each bar weighed between 350 and 430 ounces.


After the 2011 run on gold, citizens of other countries began to question whether their own numbered bars of gold had been “rehypothecated” — lent, leased, swapped, shipped, sold, resold (the same bars sold to multiple owners), or pledged as collateral multiple times. How many owners would claim title to their gold?

“REHYPOTHECATION is the practice of using the assets held as collateral for one client in transactions for another. This allows the prime broker to re-lend client securities (or gold) held as collateral… COLLATERAL is used by investment banks for their own purposes.”  Financial Times Lexicon.


When Germany requested gold “repatriation” in 2012 (150 metric tonnes), the Federal Reserve would not allow them to verify the gold was there. Deutsche Bundesbank was denied auditing rights to check serial numbers on their bars.

In 2013, Germany tried again (requesting 300 tonnes). The Federal Reserve told Germany it would have to wait seven years for the return of only 300 of their 1,536 metric tonnes “stored” in New York. The watching world began to lose confidence, and the trend for “repatriation” gained momentum.

Central banks and many gold-owning nations decided they wanted their gold transferred to their own countries: Ireland, Netherlands, Ghana, Iran, Switzerland, Romania, France, Ecuador, Iraq, Libya,Mexico, Azerbaijan, Portugal, Belgium, Finland, and others made requests to the Federal Reserve to return all or part of their gold.

By the end of 2013, Germany had received
only 5 of the 450 tonnes it had requested.

The next year only 85 tonnes were repatriated. All of the gold returned to the Bundesbank came in the form of re-poured bars with brand-new serial numbers. In June of 2014, it was reported Germany would not pursue further repatriation of its gold (1,447 tonnes). Six months later (Nov.), the Dutch central bank (De Nederlandsche Bank) announced it had secretly repatriated one fifth of the Netherlands’ gold (122.47 tonnes). 


The Federal Reserve has failed to satisfy repatriation requests representing thousands of tonnes of gold. Many believe the central bank has denied on-site inspections and engaged in delay tactics because the allocated, numbered bars have been rehypothecated.

The Federal Reserve is the custodian of a large portion of the world’s gold reserves (including 1,225 tonnes of Italy’s gold).Will sovereign nations and powerful families eventually discover their 400 oz bars have been “rehypothecated” to suppress the price?


From 1933 to today, a $20 Gold Piece is up 6,000% against the dollar (from $20 to $1,280). In 1971, 1 dollar was worth 1/35th of 1 oz of gold; 1 dollar is now worth only 1/1,304th of this new 1 oz coin. Compared to all gold coins, the dollar has gone down about 2,700% in 44 years.

People think gold has gone up  2,700%;
actually the dollar has lost that purchasing power.


Since 2008, foreign central banks and countries around the world (especially in the Eastern Hemisphere) have been exchanging their dollar reserves for gold reserves. Gold purchases have been unprecedented. In a quiet and systematic way, banks and nations have been accumulating gold faster than occurred just before the U.S. went off a gold standard (1971). The massive draw-down of warehouse inventories (in America, Canada, and England) has depleted gold and silver supplies.


The relentless draw-down of inventories has reduced bullion bank supplies of ‘good delivery’ bars (400 oz bars) to all-time lows at the COMEX (Commodities Exchange) and for “GLD,” the gold ETF (Exchange Traded Fund). 

There are more than 100 claims for every
1 oz of PHYSICAL gold at the N.Y. COMEX.

We are in uncharted territory. During our lifetimes, public debt has grown exponentially. Now, Emerging Market currencies are in free-fall; and the global debt bubble is deflating. BUT ALL CURRENCIES WILL BE AFFECTED… and the mega banks know it. That is why they have been purchasing gold by the tonne since 2008.

A confidence-shattering event is going to
shock the world.
.. and it will happen 

During financial panics, two things always disappear: LIQUIDITY and PRECIOUS METALS. Leading up to the 2008 financial crisis, silver and gold shortages showed up big-time.  On January 5, 2006, gold was at $525/oz. During the crash, gold went to $1,000 for the first time (March 14, 2008). Gold had doubled in only two years because of physical shortages. 


Over the last forty-five years, there have been six major upside moves in gold and silver which were followed by prolonged periods of price consolidation. Each time, gold and silver hit higher highs and established higher “bottoms.” After four years of price consolidation, precious metals are poised in 2016 for ferocious price moves that will take out former highs.

VERY LITTLE DELIVERABLE GOLD IS LEFT IN THE WEST. Acute supply shortages will trigger panic buying and the next run on gold and silver. “Hedge” your portfolio (like the mega banks) with at least 10% to 20% in actual precious metals.

TAKE DELIVERY of physical coins. Gold, platinum, and silver in your possession will give you control over  that portion of your capital — with no third-party risk. 

By Denise Rhyne

 Questions?  Quotes?
Customized Portfolios?
Call Craig Rhyne (206) 719-6368
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On June 16, 2015, even the State of Texas got in line to “repatriate” their gold from the Federal Reserve. 

♦ Goldman Sachs is currently negotiating with cash-strapped Venezuela to ‘claw back’ the gold hoard from South America. (By 2016, Maduro shall have sold the entire amount of gold Chavez returned to Venezuela in 2011. To meet debt payments, about 1/5th of the gold was sold in 2015 alone.)

The last complete inventory of America’s gold reserves was made in 1953. For sixty years, the Federal Reserve has denied Congress auditing rights for on-site inspections of all the gold stored at Fort Knox and West Point. Were 8,000 tonnes of U.S. gold rehypthecated?

Gold Kilobars

24 karat gold (.9999 fine) kilo bars are popular in Asia.

Canadian Maple Leaf 1/10th oz gold (.9999 fine) coins (below)

“Things go from perfectly stable to completely unstable very quickly… When you see things like Argentina, Greece, Cyprus, Ireland, Italy – you see how fast things go from perfectly stable to completely unstable… We have always had a position in gold… I just view gold as another currency. It’s that simple.”
Kyle Bass, Bloomberg TV.


Save SILVER dollars, not PAPER dollars.

Editor: I have seen first-hand what happens to prices when shortages of PHYSICAL bars and coins are extreme. During the January 1979 to January 1980 short-squeeze, gold and silver prices quadrupled. Supply shortages are much worse today. The lion’s share of the West’s gold has traveled to the Eastern Hemisphere and the U.S. silver stock-pile is gone (more than two billion ounces gone since WW II)

Ten Compelling Reasons to Buy Silver Now.

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Is It The Right Time To Buy Gold?

Question: “Do you think that gold is currently a good investment?”

Alan Greenspan: “Yes. Remember what we’re looking at. Gold is a currency. It is still, by all evidence, a premier currency. No fiat currency, including the dollar, can match it.” Alan Greenspan address to the Council on Foreign Relations, November 2014 CFR meeting; from Gillian Tett, The Financial Times.

Global deflation began in 2007. The result has been increased government spending and declining tax revenues. The worldwide recession is just getting started because money printing and artificially low interest rates are here to stay.

Unprecedented debt bubbles can continue for a very long time. However, exponential debt growth is unsustainable and cannot persist forever. In the next few years, insolvent governments will default, and contagion will lead to a sovereign debt crisis.

BIG MONEY is scrambling to beat the rush out of public debt. This can be seen in extraordinary asset price inflation (luxury real estate, farmland, art, collectibles, etc.). Equity prices have been inflated to unbelievable levels.

Since last October, we have seen a sharp drop in liquidity, violent currency moves, foreign exchange shocks, currency panics, and flash crashes

Gold is a hedge against 15-20% currency moves. Central banks are stock-piling gold bullion, using a purchasing method called dollar-cost-averaging. “Gold remains a big chunk of central bank reserves… China has stock-piled gold as part of a plan to diversify $3.7 trillion in foreign exchange reserves.” Bloomberg, April 20, 2015.


Recent gold purchases by central banks in the Eastern Hemisphere have been eye-popping. Russia recently purchased one million ounces of gold bullion.

Now is the time to diversify into gold and silver. Decide early where you want to put your capital because more capital controls are coming. It will be too late when it is obvious to everyone the train is off the rails. The majority will panic and rush to sell PAPER (derivatives) when they no longer believe governments are in control.

When sellers need liquidity, it will vanish. Buyers for government bonds will disappear. Overnight, most investors will be locked out of positions or locked in positions. Monetary metals will move suddenly as bond liquidity evaporates.

By Denise Rhyne

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Customized Portfolios?
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What is JPMorgan buying while prices are artificially low? GOLD, PLATINUM MINES, and SILVER BULLION. (JPMorgan, 1 Fricker Rd, Illovo, Johannesburg, 2196, South Africa / world’s largest gold producer – Sibanye Gold Ltd)

It is easy to buy gold and silver.
Here are the steps.


Gold, Silver, Platinum Coins and Bars:
Why Do I Have To Pay More Than Spot Prices?


Weights, Measures & Balancing Scales


Why invest in gold coins?
The Charles Dupont Story



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At current prices, there is blood in the streets in the platinum market. The largest South African mining companies (80% of global supply) are operating at a loss, and are selling off assets.

J. Pierpont Morgan said, “Buy when there is blood in the streets.” The notorious financier took his own advice. He became fabulously wealthy by buying assets when others were selling.*


What is JPMorgan looking to buy during this “platinum fire sale?” PLATINUM MINES. (mission accomplished Sept. 2015)* JPMorgan Cazenove’s long-term forecasts have not altered from previous forecasts.

The Rustenburg assets employ 16 000 workers in three shafts and supporting infrastructure, which include concentrating plants and a chrome recovery plant.

Sept. 9, 2015: Sibanye Gold Ltd. purchased the Rustenburg platinum shafts from Anglo American Platinum (sale price: 4.5 billion rand plus shares).


The economies of the world are in uncharted territory. No one knows when the music will stop. However, we all know a debt crisis is coming here. During financial panics, two things always disappear: LIQUIDITY and PRECIOUS METALS.

Shortages of gold, silver and platinum showed up big-time in 2008. During the financial crisis, gold went to $1,000/oz for the first time (March 14, 2008). On the same day, platinum jumped to $2,107/oz. Leading up to the crash, both metals had doubled in only two years because of acute, physical shortages.

Jan. 5, 2006:  GOLD $525/oz
Jan. 3, 2006:  PLATINUM $982/oz

For years, the price of one ounce of platinum was two times the price of one ounce of gold. Over the decade, the average premium for platinum was 39% over gold. Why? Because the supply of platinum is so small compared to gold.

•     Platinum is ten times more rare than gold.
•     The entire platinum market is only 7 million ounces.
•     Platinum is a strategic metal; essential in high-tech.
•     In the 2008 crisis, platinum jumped to $2,300/oz.


Today, the platinum spot price is $860, $211 under gold. When platinum is selling at a discount to gold, it is a BUY SIGNAL! (The bare cost to mine platinum is $1,100/oz.).

Recommended: Canadian 1 oz Platinum Maple Leaf. 

We have analyzed the fundamentals of actual platinum supply and global demand: Platinum Buy Signal: 62% below high

By Denise Rhyne


On December 8, 2015, Anglo-American (world’s largest platinum producer) announced restructuring will reduce its assets by about 60%. The world’s fifth largest miner will lay off almost two thirds of its employees (85,000).

* Sibanye Gold Ltd is Africa’s largest gold producer. July 6, 2014: Prior to joining Sibanye, James Wellsted (Sibanye spokesman, Sr. V.P) was a South African mining analyst at JPMorgan (Qatar Tribune). On April 8, 2014, James Wellsted said, “…there’s a lot of potential to replicate what we’ve done with the Sibanye assets in the platinum sector” (“referring to purchasing more platinum mines, a precious metal that is in short supply;” Metallix). On Aug. 1, 2014, Business Day Live reported: “Bolstering its platinum plans is the recruitment of Steve Shepherd, a highly regarded analyst who retired in June from JPMorgan Cazenove to help it find the right assets.” On May 27, 2015, reported: “Sibanye still keen to buy Anglo Platinum mines.”

JPMorgan (1 Fricker Rd, Illovo, Johannesburg, 2196, South Africa) / “Sibanye Gold Ltd” (11 Feb. 2013) previously known as “GFIMSA” (GFI Mining South Africa Proprietary Ltd., 2002) owned by “Gold Fields Ltd.” Gold Fields originally incorporated as “East Driefontein Gold Mining Co Ltd” 3 May 1968 and subsequently changed its name to “Driefontein Consolidated Ltd. Operations that comprise “Sibanye Gold” were acquired by Gold Fields through a series of transactions principally in 1998 and 1999. As disclosed in the Pre-listing Statement, Gold Fields transferred its South African gold mining assets including Beatrix operation, Driefontein operation, and Lloof operation (going concerns to GFIMSA with effect from Feb. 23, 2004).” SEC Form 6K. JPMorgan clients: Anglo American Platinum Ltd, Aquarius Platinum Ltd, Impala Platinum Holdings Ltd, Lonmin PLC, Northam Platinum Ltd, Royal Bafokeng Platinum Ltd. SIBANYE (“We are one”) language spoken by Nimrod (son of Cush) at Babel.

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Customized Portfolios?
Call  (206) 719-6368

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Dominoes From the Oil Crash Are Falling


We are witnessing a global meltdown; and U.S. markets are not immune to the collateral damage.



We recently published “Global Deflation Will Lead to Credit Collapse /  Currency Failures.”  That is exactly what is underway. The Japanese yen has plummeted and the Russian ruble lost almost 1/2 its value. Dominoes from the crash in oil are falling. Based on the volatility in the USA index, we believe we are in the middle of some sort of derivatives meltdown. The Euro has crashed to a level not seen since 2006.

While their currencies lost value, the Europeans, Russians and Japanese who held their savings in actual gold coins and bars lost NOTHING. In fact, the price of gold has gone up in those currencies.  That is why prudent investors have always kept 5% to 10% of their wealth in physical precious metals.

Zero% Interest Rate Policy

The dollar is backed by nothing but confidence and debt.  The dollar seems strong because the yen and the Euro are weakening FASTER; but the true value of the dollar is declining.  Do not wait for the high-flying dollar to hit an “air pocket” when the Federal Reserve finds an excuse to announce QE4.  Fear can replace confidence when people realize artificially low interest rates are here to stay.


On Jan. 6, 2015, multi-billion dollar fund manager Bill Gross said:  “When the year is done, there will be minus signs in front of returns for many asset classes. The good times are over.”

Mr. Gross is now telling investors to batten down the hatches and protect their capital.

To us that means converting some of your “paper investments” to physical coins – for liquidity with no third-party risk. Gold has been the safest safe-haven for 6,000 years. During the coming economic upheaval, gold and silver will perform as “monetary metals” and the world’s only real money.

 By Denise Rhyne

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Round Two Of The Financial Crisis Has Begun

October 2014. Global economies are contracting.  Prepare for giant swings in the stock market, trading halts in the bond market, and unprecedented money-printing.

Despite the endless propaganda, the economy of the United States is not recovering.  Leading economic indicators are turning down. That is why the Federal Reserve is continuing to suppress interest rates by printing money.

Markets are on fire. Trading halts and “flash-crashes” are coming with increasing regularity.  The stock and bond markets are trying to tell us something. Liquidity is becoming a problem.

Look at these out-takes from recent headlines:

Everything was Sold.
Oil is in a Virtual Free-Fall.
Low Liquidity Alert.
Spreads Blowing Out.
Algos Gone Wild!
Market Contagion.
Systemic Risk.
Market Depth Abysmal.
Markets Getting Scared.
Distressed Debt.
Prepare for Runs.
Examine all Risk Exposures.


Overnight, gold and silver prices will surprise everyone.

What is the #1 reason?  China is the new sheriff in town.  In 1980, China was a small player.  Today, China is the biggest gold buyer in the world.


Get silver.  Stay with silver.

Silver has become accepted as a reserve-asset and monetary reserve in Asia. China is now responsible for about one fifth of global silver demand.  In 2014, demand for silver in India was record-breaking (November gold demand was up 38%).

The affluence of buyers throughout Asia is now a significant market factor.  Since the beginning of 2014, the transfer of silver and gold bars from the West → to the East (primarily to China, Russia and India) has been unprecedented.

Preserve your nest-egg with 1 oz American
Eagles.  Real money means real liquidity.  

By Denise Rhyne

GLOBAL DEFLATION WILL LEAD TO CREDIT COLLAPSE/ CURRENCY FAILURES.  During the coming economic upheaval, gold and silver will perform as “monetary metals” and the world’s only real money.

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