Loading ...What If – They Actually – DO IT?
There are lots of rumors floating around, AI YouTube videos included, saying that the CFTC is going to repeat the Buying ban on silver Comex contracts, the way they did to stop the Hunt brothers. I don’t know how else they can save the short bullion banks and ultimately, the financial system. If they do, whether today marks the point of no return, or they are able to kick the can a few days or weeks down the road, it seems inevitable that the Comex will eventually end up declaring “force majeure.” That would end the Comex and create havoc in the Silver market as longs would not get any physical Silver and would be paid out at some price that the Comex decided, while the actual price of Silver in the real world industrial market, would be significantly higher. The biggest takeaway that no one seems to be discussing, is that if Silver becomes “unobtanium” because no new Comex buys are permitted, Gold is going to rocket to $5,000 and beyond. If you take away the ability to protect one’s purchasing power from one of the only two elements that do so, the other is going to become that more valuable, and rapidly at that.
Thanks for the heads up CM. Can you comment on whether or not PSLV would be handled differently than SLV?
In my opinion, SLV is a complete fraud because it is owned and managed by crooks(Black Rock & JPM) I have never bought or traded it and never will. In the case of PSLV it is legit and honest but I expect that since the metal is likely held in Canada(maybe some is in Comex vaults in US, I don’t know for sure)it’s metal is likely to be seized eventually by the Canadian government and as in any of these scenarios, who knows what fiat price they will pay you out at? You can be sure it will be less than the industrial/black market price for silver. That was why in a recent post about an exit plan I suggested a phased withdrawal and switch into gold.
Thanks for your reply. It brings up another question. If it is likely that Canada will eventually seize the metals, what would happen to gold and silver held in storage at Kitco?
Hi PK
My 2 cents…NOBODY KNOWS !
THIS IS A DARK GREY AREA…RANGING FROM NEVER GONNA HAPPEN TO ALL PHYS METAL TO BE SEIZED IMMINENTLY
SO…MY SUGGESTION WOULD BE …IF YOU ARE CONCERNED IT BEHOOVES YOU TO SELL YOUR STORED METAL ( I ASSUME YOU HAVE SEGREGATED METAL WITH KITCO )…TAKE THE CASH AND GO DOWN TO THE COIN SHOP AND BUY PHYS ( YOU MAY LOSE 5 TO 10% BUT THATS THE PREMIUM FOR METAL IN YOUR POSESSION )
THEN BURY IT IN YOUR BACKYARD AND LEAVE A TREASURE MAP WITH YOUR WILL
HOPE THIS HELPS
SHEESH
Just don’t leave the map with your lawyer.
HAHA
Thanks Fully! My plan was to only store it with Kitco temporarily because taking delivery to my state would have triggered sales tax. I was going to have it delivered to a state that did not charge the tax when I was on vacation. Several years have gone by and I never asked for delivery. Looks like the time has come?
This brings up another question: When you eventually sell physical, how do you account for taxes on the increased value?
I am not giving tax advice but if swap for Gold maybe it can count as a like kind exchange and defer taxes until you actually sell(don’t know what the IRS stance on that would be.) If you sell and or barter for small amounts under any reporting threshold might avoid taxes on those transactions and I believe some of the states have put in specific legislation regarding no capital gains tax on PM’s. The FED’s and IRS might be a different story?
I agree that best to not have any metal held by a third party. While I do see every nation looking to seize silver because of it’s shortage scenario and strategic necessity for military, industrial security etc.