Financial Advisor

BIS Changed Silver Data

by Jason Hommel,

The Bank of International Settlements (BIS) has changed, or revised, their silver derivatives data in their derivatives reports.  The change took place between their June, 2010 report, and their December, 2010 report, for the period of June, 2009.  The change was from $203 billion in "other precious metals" liabilities, changed down to $93 billion.

The change took place, in Table 22A: Amounts outstanding of OTC equity-linked and commodity derivatives, By instrument and counterparty, in the category of "other precious metals", for June, 2009, Notional amounts outstanding. 

In June, 2009, the silver price was about $15/oz. 
http://www.silverseek.com/quotes/5silver.php

This means that the $203 billion silver liability divided by $15/oz. shows that all the banks in the world that are tracked by the BIS owed 13.5 billion ounces of silver.

But the entire world silver mining production is only about 700 million oz. of silver annually, so this is an admission that the banks owed about 19.3 years worth of world annual mine production of silver. 

The adjustment, from $203 billion, down to $93 billion was a drop of $110 billion, or more than half of the number!  The lower number, $93 billion, is still absurdly large, at about 6.2 billion oz. of silver, or about 8.8 years of worth of world annual mine production of silver.

The obviously large and very excessive amounts are the smoking gun of silver fraud by the western world's banks.

This BIS data is extremely important, because it is far larger than the excessive short selling amounts often noted at the COMEX, which typically is only about 1 billion ounces of silver, or less.

I attended the CFTC open hearings on silver manipulation.  A banking representative was asked directly what the banks were hedging by being so massively short of silver at the COMEX.  The answer was that the banks were "hedging client long positions in the OTC market".  That's obviously an admission of manipulation, because client long positions do not need to be hedged, since the client obviously wants to be exposed to the changes in the silver prices, which is why they bought silver to be held by the large LBMA member banks in the first place.  So if the banks are hedging client long positions, it means that the bank has not bought the silver, and that they want to prevent silver prices from going up, because if it does, then the banks will owe their clients a lot of money, so, to "hedge" that exposure, they short at the COMEX, which is the market that generates "price discovery", since trades there create a trail and record of prices.

After all, imagine what the silver prices would be if the LBMA banks actually went into the market to buy 13 billion ounces of silver, or 19 years worth of annual production.  Clearly, the silver prices could go hundreds if not thousands of times higher, and it could destroy the entire financial system of paper money.

The revision was an adjustment from $203 billion down to $93 billion, and the adjustment is strange, because it was the only number that was repeatedly and consistently highlighted in this silver stock report.  It's also strange because the amount of the value of the gold contracts, at $425 billion, and other commodities contracts, at $3101, went unchanged for that reporting period.

This BIS change is significant, both in the relatively large silver amounts, and the reporting period.  The change took place after I began publishing this BIS data, and soon after I filed the first anti trust complaint against JP Morgan with the Justice Department, in April, 2010.
 

This data change also took place after the filing of approximately 25 lawsuits against JP Morgan over silver manipulation.

It has been difficult to document the BIS data change, since they often change the web links to their reports, and they change the reports directly.  But a helpful reader has discovered the original reports at the BIS website. 

From 2009, Dec report: $203 billion for the June, 2009 period.
http://www.bis.org/publ/qtrpdf/r_qa0912.pdf

From the 2010, June report: $203 billion for the June, 2009 period.
http://www.bis.org/publ/qtrpdf/r_qa1006.pdf

From the 2010, December report: $93 billion for the June, 2009 period.
http://www.bis.org/publ/qtrpdf/r_qa1012.pdf

From the 2011, June report: $93 billion for the June, 2009 period.
http://www.bis.org/publ/qtrpdf/r_qa1106.pdf

Since the BIS changes their urls and reports, I saved all of these pdf files, which are archived here:

http://www.silverstockreport.com/BIS/r_qa0912.pdf
http://www.silverstockreport.com/BIS/r_qa1006.pdf
http://www.silverstockreport.com/BIS/r_qa1012.pdf
http://www.silverstockreport.com/BIS/r_qa1106.pdf

And since the BIS changes their urls and reports, I also captured a print screen of these pdf files being opened directly on the BIS website:

http://www.silverstockreport.com/BIS/0912.png
http://www.silverstockreport.com/BIS/1006.png
http://www.silverstockreport.com/BIS/1012.png
http://www.silverstockreport.com/BIS/1106.png

In conclusion, it's not a "conspiracy theory" that the banks are manipulating the silver market.  The BIS bank data shows the conspiracy.

And when the banks are saying indirectly, "don't trust us", given both the large amounts and large changes in their published data, it would be foolish to trust them.

It's a mathematical certainty that silver prices will explode upwards in price, and only people who hold their own silver will benefit from the major value change that's coming. 

You can buy real silver from us at 

I strongly advise you to take possession of real gold and silver, at anywhere near today's prices, while you still can.   The fundamentals of silver indicate rising prices for decades to come, and a major price spike can happen at any time.

Sincerely,

Jason Hommel
www.silverstockreport.com 

Why Silver Will Go UP for Years to Come!

The silver market remains tiny. "World investment rose by an impressive 40 percent last year to 279.3 million troy ounces (Moz), resulting in a net flow into silver of $5.6 billion, almost doubling 2009’s figure."  How reliable are the figures? http://www.silverinstitute.org/pr07apr2011.php


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