MUST SEE CHART: Major Bank Fraud Adds Up To A Lot Of Silver

The amount of fraud taking place in the major banks throughout the world is staggering to say the least.  Ironically, the only market that isn’t manipulated, is the silver market… so they say.  To make it seem as if the regulators are on the ball, many of the major banks have been found guilty of committing one fraud or another, paying large fines and settlements.

The most recent settlement by the criminal bankers was a cool $5.6 billion for rigging the foreign currency markets for their own financial benefit.  The banks responsible for this sort of illicit behavior comes from the list of typical seedy characters; Citigroup, JP Morgan, Barclays, RBS and UBS.  You can read all about it in the Wall Street Journal article.

Even though $5.6 billion is a hefty figure, when we add up the total fines and settlements paid by the Banking Industry since 2009… it’s a serious amount of fiat currency.  How Much?  Well, if we look at the chart below, it should offer a pretty good picture:

Total Bank Fraud Settlements 2009-2014

According to a recent article by the Huffingtion Post, the major U.S. and European Banks have paid at least $128 billion in fines and settlements to regulators since 2009.  As we can see, Bank of America gets the first place prize for paying a staggering $61.2 billion in fines, while JP Morgan ranks second at $31.5 billion and Citigroup taking a comfortable third, forking over $10.1 billion.

Scanning across the rest of the chart, we can see the additional fine upstanding banks that participated in criminal activity and their subsequent fines.  Of course, Americans like to brag that the United States is best country in the world to live, so it’s comforting to know that four of the five top corrupt banks (in amount of fines and settlements) in the world are located in the good ole US of A.

The top five banks accounted for 92% ($117.6 billion) of the total $128 billion in fines.  However, the U.S. Banks representing wholesome American icons such as baseball, hotdogs, apple pie and Chevrolet coughed up $108.6 billion of that amount.  It’s certainly reassuring to see our financial institutions working hard to rank first in the world as it pertains to illegal and criminal financial activity.

Major Bank Fraud Adds Up To A Lot Of Silver

If we consider just how much the U.S. and European banks have paid in fines and settlements since 2009, turns out it could have purchased one hell of a lot of silver.  In order to get an idea of the total value of global silver mine supply since 2009, I put together the following chart:

Total Global Silver Value 2009-2014

Each year in the chart represents the value of world silver mine supply calculated by multiplying total global production by the average annual price.  These figures were based on price information taken from and global silver production figures from the Silver Institute-Thomson Reuters GFMS.

For example, this is the total value of world silver mine supply in 2014:

2014 World Silver Mine Supply Value = 877 million oz X $19.08 = $16.7 billion

If we add up the figures for each year in the chart, the total value of global silver mine supply was $113.1 billion.  Well, that seems like a lot of money until you compare it to the fines and settlements paid by the major U.S. and European banking institutions:

Bank Fraud Settlement vs Global Silver Value

Amazingly, the major banks paid more in fines than the cumulative value of all silver mined since 2009.  Just think about that for a minute.  The amount of fraud and criminal activity at these major banks forced them to pay fines greater than the value of world silver mine supply.  Of course, the $128 billion in fines they paid is a great deal less than the profits they made.

According to the Huffingtion post article:

Since 2009, the American banking industry alone has racked up nearly $503 billion in profits, according to FDIC quarterly data through the first quarter of 2014.

These fines have made occasional dents in some quarterly earnings, but they’re effectively drops in the banks’ buckets compared to their greater profits.

If the bank fines are “drops in the bank’s buckets”, then it’s good for business for these institutions to continue rigging, raping, manipulating and controlling the economic and financial system.  Thus, anyone at this time who still believes the gold and silver markets aren’t manipulated, needs to check oneself into a local health clinic and receive a Cat-Scan of the brain.

So, how much silver could have been purchased with the fines and settlements paid by the major banks?  The chart below provides the answer:

Global Silver Production 2009-2014

The paltry $128 billion of fines paid out by the major U.S. and European banks could have purchased all the 4.7 billion ounces of silver produced by the world since 2009.  However, this silver production only amounted to $113.1 billion (estimated) and if we add the remaining $15 billion left over… that’s at least another 800 million oz. at the current price. Which means, bank fraud settlements could have purchased at least 5.5 billion oz of silver, including the majority of global production in 2015.

We must remember, gold and silver are supposed to act as barometers against the U.S. Dollar and other assorted fiat currencies.  If the major banks can pay $128 billion in fines (that we know about) over the past six years, how can this not impact the value of the precious metals?

Currently, it pays the banks to conduct fraudulent, criminal and illicit behavior.   If the U.S. Banks forked out $110 billion in fines since 2009 while their total profits exceeded $503 billion, that’s a pretty good racket.  Fortunately for the precious metal investors, all Ponzi Schemes come to an end.  While this one has gone on longer than we thought, the end may arrive sooner than we expect.

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18 Comments on "MUST SEE CHART: Major Bank Fraud Adds Up To A Lot Of Silver"

  1. Hi Steve, thanks for the continued analysis of silver. As we watch the price of silver stuck in this current range for almost 9 months it gives the silver stacker little information as to where price will go. It appears that many are in a waiting mode to see how it will resolve. I would like to see prices test support again. I will then add a little more to the stack. Data is slow to come out on mining production and cost of production for the various miners but if price falls from here it will certainly aid in creating falling future supply. If indeed the price of silver is being managed, it would not be in management best interest to induce an acceleration of falling supply. Time will surely tell.

  2. Silverwillwin | June 8, 2015 at 3:22 pm |

    Come on Steve , that wouldn’t be any fun for the central bankers in that case !
    They , the centrl bnkrs need to exercise the opportunity for the American way to keep on going ….you know , D E B T . It’s worth all those fines !

    With a debtors society there comes all kinds of temptations with it , just ask Jon Corzine !

    It sure would be nice to see an aggressive institution take hold of the daily calling of price for just physical gold and silver !

    Master the possibilities !!!!!!

  3. Steve,

    The fines these pathetic banks pay is simply the cost of doing business. I was wondering what the profits were for engaging in such activity. It would be great, someday, if ALL profits from illegal activity were confiscated and those responsible were put in jail (ex. white collar crimes fiasco). Until the bankers lose control of this Ponzi scheme we’ll have to wait some more. I look forward to seeing a palette of silver monsters fall on every banker CEO’s head involved in this baloney!

  4. Jail the bastards ! Shackle to posts in a public square, provide plenty of stone piles. Take away their licenses to conduct business. Give everyone their money in their accounts, and whats left, distribute equally to all doing business with the bank. OR a novel and not in the least bit silly notion, prosecute to the full extent of existing laws. See how that grabs ’em.

    • Silverwillwin | June 8, 2015 at 7:15 pm |

      Amen to that HYMN !

      You steal $ 100.00 today and you’re locked up . You steal $ 1000000.00 and you’re given a promotion.

  5. Gentlemen,

    I actually appreciate the lieing, thieving bastards as I was a late comer to silver stacking. Their manipulations have allowed me a stake in the game.

    According to Gary Savage of Smart Money Tracker;

    “I…In order to avoid getting caught in that [coming] debacle I strongly suggest gold (and silver) bugs get on the sidelines now and stay there for the next several months until we reach that phase where gold just drops day after day and the losses become so great that it’s virtually unimaginable that this could be happening. When you see that kind of absolute panic start to unfold that’s the point where you need to put your finger on the trigger and be ready to buy in preparation for what will probably be the start of the final phase of what will probably be the greatest bull market in history.”

    The time is coming soon.

    Buy for cash and stash.


    • Is Gary right? He seems to be suggesting further falls in the metals prices lie ahead. He could be right. I am not so sure. If price falls occur as a result of mild deflation they would likely be meaningless as pretty much everything would come down at a similar rate. Not that you would sell any silver of course. Everything else is good for the silver price except market rigging or a reduction in industrial demand.

      Steve recokons that it is ultimately investment demand that will move the next bull and in that he is completely right. The smarter money will move in when the smarter begin to realise their paper is going to be worthless. That will move the price skywards assuming there is time. At this point in time what is your silver worth in worthless dollars? Does it matter? Would you actually sell? Would you be able to sell?

      Your silver will get you through a crash of the financial system and paper wipe-outs. But what would it be worth then? In an economic collapse, triggered by the financial collapse, industrial demand will collapse anyway. The worth of silver would very much depend upon any role it might have in a new financial system. Sure at local level you would be able buy goods and services for a time at least (maybe a house?). It would become perceived as more valuable for the forseeable future but silver may well not take a significant role in a new financial system whereas gold almost certainly will. For the long term the value and role of silver is less certain than that of gold although I would consider it likely to be remonitised in South America at least.

      When it looks like a very good time to sell (exchange for currency) some silver that is the time to hold onto it. When there is no faith in fiat that is the time to exchange some of it for other assets.

      • “But what would it be worth then?”

        money is a medium of exchange. it is a tool of exchange. it has no value outside of exchange. and silver and gold will not be accessed or used as money unless a general collapse ensues. so, ask yourself – in a general collapse where people are able and trying to use silver as money, what will be available for exchange? the answer of course is very little. no-one will be selling any amount of food or gasoline or antibiotics for any amount of silver or gold. you might be able to buy a gun and some ammo for some ridiculous amount of gold, but if and when people start using those guns and ammo there will be plenty of each laying on the ground. as for anything else, well, who knows.

        “But what would it be worth then?”

        not much.

  6. I think it would be an interesting thought, Steve, to represent this data against what global production is left over after industrial applications – i.e the available left for investment as a currency alternative

  7. Hmmmm, I have to laugh at all the fines being paid by the banksters, but exactly where are the fines going? Are they being returned to the small investors or pension funds that have been ripped off through illegal market manipulations, or is this simply another end run tax grab fostered by the DOJ, the Fed and other government powers that be into bilking the public purse even more???

  8. Looks like the banks were fined about one ounce of silver per head of world population.

    I wonder how much damage they did to the average person over the same time period?

    My guess 100 toz/per person.

    Of course they are going to do far more when the system comes down asset stripping the paper holders. I guess 700toz/per person.

    It would be interesting to see an expert analysis of this. In the meantime I would guess 700toz of silver would keep anyone at least level and probably much more.

  9. Steve
    It would be interesting to overlay what politicians were getting a cut in the form of campaign contributions from one criminal group to another. Hitlary is high up there by all accounts.

  10. Tom Collins | June 9, 2015 at 4:03 am |

    No one seems to know the time that the guillotine will fall on fiat currency and world banking.
    We could be guilty of putting the umbrella up and expecting rain, in the middle of Summer!
    So we stack gold and silver and await Armageddon?

  11. Oh one more point… One can imagine how the political shakedown works… “I can fix this”. “It will only be a wrist slap when we get done – not to worry.”

    And then there are the socialist/populist to be taken care of…”The deal we cut on the settlement will take the bite out of Warren’s fire breathing. We can make that go away – with the right deal. If not, she will be back out in front of the cameras. Time to pony up.”

  12. Silverwillwin | June 9, 2015 at 5:50 am |

    It is viewed by some that silver may lose its luster when gold will not , during the time when both metals are once again used as money and paper is finnally viewed as – well – just paper.

    Is there not something missing present day with regards to the true value of silver ?

    Charles Savoie has done an outstanding job defining this to a large extent.

    So when the proverbial S#$@ hits the fan , will the true value of physical over paper silver which present day is 20 % less above ground then gold really take the back seat ?

    This may turn out to be one heck of a horse race for a while .

  13. tinfoilhat davy | June 10, 2015 at 6:52 pm |

    Can someone please explain “manipulation”? If the price of silver is being suppressed somehow and you want to amass a shining heap, shouldn’t you write these “manipulators” a thank you letter? If you are hoping the price will shoot the moon will you sell your precious metal for fiat dollars? Perhaps the manipulation is coming from those with something to sell? Like overpriced rounds or your latest book?

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