On January 12th, a Thursday, a jeweler hears back from a smelter he does business with that there is something wrong with the gold he took delivery of from the Comex Exchange.

He tells some friends and by Feb 1 it is discovered that 75% of all bars received from Comex warehouses in the year 2016 had Tungsten fillings.

Buyers completely empty Comex warehouses in the next delivery period and lease rates start to climb.

The Comex is unable to restock their warehouses for the next cycle and begins to settle contracts in cash.

Meanwhile mom and pop have bought a record number of Silver American Eagles and people begin to sense a disconnect between the physical markets and the paper markets.

Fearing the worst, recent president elect, Donald Trump decides that while he is auditing the Fed that he should also audit Fort Knox.

It is now July 1st and the Donald announces that Fort Knox is empty. Four days later the Chinese announce they actually have 20k oz of Gold, not the 3k they had been claiming.

Concurrently Vladimir Putin announces that they are abandoning the rubble in favor of a pan-Asian currency, a gold backed Yuan.

6 month gold lease have now grown by a factor of 34% and Michael1999 places the first bid on the Comex since the gold market reopened and margins were set to $100k.

He bids $10k / oz and takes a screen shot of his order to post below his favorite rafiki post in the silver thread.

And I could be the starting running back for the Cowboys on Sunday I suppose. I do have legs.

Ha, you asked (not me I know).

And I got a little carried away. But my point was that it is not that hard to come up w/ scenarios short of WWIII that lead to a big move in the metals market.

Your question was silly.

You would still have a few ounces of gold and 50 ounces of silver. You would be crushing it in the same way any currency collapse has caused gold and silver to crush it. Namely, you would crush it in the same way as a feather crushes an elephant. No crushing, maybe a bit of a tickle.

There have been many currency collapses. Gold and silver have never gotten anyone rich during one of them. Not one in the entirety of history.

This time might be different though.

You might not get rich, but how many people could still take care of themselves with silver during a currency collapse.

Do you have a scenario that isn't preposterous?

Rich is relative. If Someone has 500 ounces of silver and 5 ounces of gold and can buy 5-10 homes free and clear in a currency collapse. One which That person lives in and the others Are rented out. Sure that person won't be purchasing any lambos but he will be sitting pretty.

People are starving in Venezuela. Reports are 1 single ounce of silver buys you 3-4 months of food on the black market. I'd feel like a king if I lived in Venezuela if I was able to obtain 3-4 months of food for 1 single ounce of silver, while Most others are SOL.

2008 we almost went off the rails. Nothing has changed and the situation is worse. 0% interest rates for almost a decade? Yeah this bubble is going to blow big.

The gold/silver to house ratio doesn't move even the tiniest amount due to currency fluctuations. There is no correlation.

Your comments about Veneuela are incorrect. You cannot buy food with silver there. It was a made up story.

Trolly, my man!

If you asked me to assign a probability to Fort Knox being empty I wouldn't really know where to begin. But I know enough to not find the idea preposterous. And I would suggest to all of those who find it so that they are likely naive.

I believe I have posted this before: https://www.youtube.com/watch?v=WrILn0dLVyA its a GoT scene.

Also, Comex warehouses running out of physical is not preposterous either. It's a game and for a long time now western bankers have been winning. Its paper vs physical. They are the house and they crush.

But if you understand rehypothecation, which is intimately linked to the amount of paper claims vs physical supply, the market does have the potential to move.

That potential was particularly evident in silver years ago.

The difference between the wikipedia article: https://en.wikipedia.org/wiki/Rehypothecation and the investopedia article: http://www.investopedia.com/terms/r/rehypothecation.asp is interesting.

How do you know it was made up?

It was originally a post on a forum by some guy who was down there on some during mission. What? You think they manufactured this post hoping the NY Times would pick up on it? Nobody actually gives a damn if 1 ounce of silver buys you 3-4 months of food in Venezuela. So what would be the purpose of making this up?

Even on the kitco forums nobody was talking about it. In fact I was the person who made a thread about it there and was a lackluster thread, and was on the 2nd page within a week.

Google it....Google.... "1 ounce of silver buys 6 months of food Venezuela."

Only a few obscure websites picked it up. And the most known one was zerohedge.

In fact, you can actually prove its not made up by doing the math between the bolivar, dollar, and an ounce of silver. I'm horrible with numbers but someone on kitco did the conversions and it made sense.

It's going to happen overnight. Housing and the currency will collapse. Housing prices are ridiculous. And only as high as they are because of the fiat con and false LIBOR.

JP Morgan has accumulated over a half a billion ounces of silver since 2011 while they smack down the price so they could get all that silver on the cheap. And the one day it is going to go up quickly.

Here is actually a great article using a royal flush poker analogy with respect to the silver prices.

And JP Morgan owning 550 million ounces of silver, and them shorting silver futures contracts to smack down the price.

http://www.silverseek.com/commentary/royal-flush-16185

The black market food is bought outside of Venezuela and smuggled in.

Think for a bit. It should be obvious as to why it is fiction.

JPM owns much more real estate than silver. They have obviously been doing everything they could possibly do to prop up the house to silver ratio and their evil cabal has even tricked you.

You have been triple dog double tricked.

Why does food being brought in from outside of the country have anything to do with anything?

if you find that post, and do the conversions between the bolivar, USD, and silver it made sense.

Ok? And...?

I explained it in the above post. Simple economics and self-interest requires that they are not manipulating the silver to housing ratio in the direction that you believe they are.

Black market smugglers generally like to make a profit.

No. It makes the opposite of sense. An ounce of silver spent in Venezuela to purchase goods smuggled into Venezuela will purchase less than what an ounce of silver spent outside of Venezuela would.

what if silver is even harder to smuggle in than the goods?

Then it would buy even less utilitarian goods.

Hint: difficulty of smuggling isn't directional.

I'm a little confused at some of the things you are trying to explain...

The silver to housing ratio isn't being manipulated, it's already at outrageous ratios. That has more to do with currency devaluing than manipulation???

Almost 10k ounces of silver to buy a median priced American home?

Sorry, something is VERY wrong with that picture. How many houses would 10k ounces have bought you 100 years ago? Yet today it buys you an average rathole American home? Aren't there double wides going for 150k nowadays?

Ummm. How many homes do you believe you could buy in 1915 with 10k oz of silver? I will give you a hint: It was less than two.

http://www.thedailyeconomist.com/201...-gold.html?m=1

Stocks bonds and real estate prices are going to collapse up to 90%. Similar declines have happened in history before, except no time before has the world faces the magnitude of the credit bubble we are in. It is all false growth based on fake money.

The bargains are going to be incredible for those have real money/real wealth in gold and silver when this debt bomb implodes with all the additional money printing.

So you believe no real wealth has been created since sometime around maybe 1970...?

I believe we have had wealth creation but this debt fueled Ponzi scheme fiat system we are in...... We have greatly outkicked our coverage.

70% of the country has 1k or less in the bank. That isn't because people are a lot bad with their finances compared to 25-30 years ago.

There is going to be massive loss of life when the credit stops.

On the plus side, we won't have to have the abortion debate any longer.