John Adams & David Morgan: Cataclysmic Event in the Silver Market

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Tom welcomes both the Silver Guru David Morgan and the historically consistent John Adams to discuss the shenanigans in the metal markets. John outlines the ongoing shortages at the Perth Mint and how they are failing to deliver. Even "As Good As Gold Australia," a Precious Metal Dealer and accredited Perth Mint distributor, cannot place orders for silver from the mint. Investors need to be sure that they have legal title to bars. There are some serious concerns about allocated accounts at the Perth Mint as individuals attempting to change their positions from unallocated to allocated are being denied. Based on the terms of their website, they are in default. Most days, even 1000 ounce bars are unavailable, and customers are now liquidating positions and going elsewhere for metal. Concerns remain whether allocated accounts are being backed by metal. John notes that the Perth Mint may have leased gold from the Reserve Bank of Australia, which holds its gold at the Bank of England. David takes us back in history to discuss the beginnings of banking during the time of the goldsmiths. Goldsmiths would hold customer gold but then discovered they could issue more claim checks than they had gold in the vault. This eventually resulted in runs on these vaults when customers became concerned. David says, "Just because your getting the best price does not mean you're getting the best deal." David expresses concerns regarding the iShares SLV ETF that it could have become a fractional reserve system. He then discusses the failure of the Northwest Territorial Mint a few years ago. Those with allocated bars should be asking for their metal. These bars may have been leased or rehypothecated numerous times. There is a lot of paper silver flying around, and we need to start counting what is real and what isn't. There is a massive mismatch between silver and paper, and most contracts are worded that delivery with cash is acceptable. Therefore legally, they can't default, but in practice, they will have defaulted. John discusses why paper claims could be numerous against every ounce in vaults. Comex warehouse inventory has declined by 26 million ounces via deliveries. Every ounce pulled from the market means one less ounce that can be used to back paper markets. If everyone stands for delivery, the Comex will be forced to let the prices head higher. David discusses what panic buying could look like based on currencies like Venezuela. However, if you live in Venezuela and have silver, you can still eat. Many investors and the population at large have a normalcy bias in the face of mounting global issues. The bottom line is if you have a synthetic metal position, you should liquidate it today and acquire the actual metal. When this is done as a global movement, it will make a massive difference in where the price will go. This will also wake up the masses as to what is happening in the economic system and is how we crack the price suppression program. It's time for people to wake up and demand what is the real money. Time Stamp References:0:00 - Introduction1:00 - Perth Mint Update7:00 - De Facto Defaults?10:50 - Fractional Metals?15:23 - A Goldsmith's Story20:14 - Past Scandals23:30 - Shell Games25:50 - Default Symantics29:02 - Cash Settlements?32:56 - Take Possession35:04 - Price, Demand, & Supply37:00 - Stand Aside & Burnout40:20 - Palladium Comparisons43:24 - PSLV Sprott Thoughts47:16 - Silver & Cost of Living47:52 - Concluding Thoughts Talking Points * Perth Mint Metal and Delivery Failures.* Get Physical and Sell Synthetic Positions.* Goldsmith's and claims to bars.