Silver: When “Unallocated” Becomes Unavailable

• When “Unallocated” Becomes Unavailable
  by Craig Hemke, https://www.sprottmoney.com/
  For the past ten years, we’ve railed against the Bullion Bank fractional reserve and digital derivative pricing scheme. The solution has always been the removal of physical metal from the hands of the Banks and the Mints. Are we finally making some progress?
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  Before we begin, it is crucial that you understand this basic point: The globally recognized prices of gold and silver are not determined through the exchange of actual physical metal. Price is instead determined by the exchange of derivative contracts. Thus, the supply and demand of physical metal has very little day-to-day bearing on the derivative price. Instead, it is the supply and demand of the derivative itself that determines price.
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  About four years ago, I wrote the article linked below with the purpose of explaining, in as simple terms as possible, how and why this digital derivative pricing scheme benefits The Bullion Banks that have monopolistic control of these “markets”. If you’ve never read this post, please do so now:
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  Econ 101 — Silver Market Manipulation
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  The key pillars in maintaining this fraudulent pricing scheme are the market activities in New York and London. The CME-owned COMEX and the LBMA collective work together to manage price and the flow of physical metal that is needed to legitimize it. To understand this hand-in-glove approach, consider that Michael Nowak—the recently indicted former head of global precious metals trading for JPMorgan—also sat on the board of directors of the LBMA:
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  LBMA in “discussions” with JPMorgan following fraud indictment
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  For precious metal investors everywhere, it is vital that we one day force this pricing scheme to collapse. Since The Scheme is built upon leverage and hypothecation, the only way we can win this fight is if we can force a deleverage of the fractional reserve system. However, The Bullion Banks work closely with the exchanges and the regulators to control and amend the rules and margin requirements whenever necessary. As such, default is unlikely to begin on COMEX or in London. Instead, the best hope for fracturing The System has always been the exposure of the unallocated and fractional reserve account schemes that exist on the margins.
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  read more.

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