The Golden Truth: Something Ain't Right

Thursday, May 9, 2013

Something Ain't Right

Since the beginning of the year and through last night, there has been 300 tonnes of gold removed from GLD and 90 tonnes of gold from the Comex removed. In the 12 years that I've been doing the precious metals sector, there has never been such an extraordinary, visible movement and disappearance of gold like this. Hugo Chavez, on his death bed, repatriated 200 tonnes of gold back to Venezuela from Europe in about four months, but we know where it went. It didn't disappear. The German Bundesbank requested the repatriation of some part of the German gold held by the NY Fed in NY and, after several days of negotiations, Bernanke agreed to send 300 of the 1800 tonnes back - over the next 7 years.

My prediction: That gold will never see inside of a ship hull.

Something ugly is going on and, at least for me, it explains why the western bullion banks are making a concerted and aggressive effort to hold down the price of gold using printed paper Comex futures contracts. (about 80% of all downward price movement in gold/silver since Jan 1 has occurred during Comex floor trading hours).

I received my colleague "Jesse's" latest post in my email about the same time that Jim Sinclair posted this comment:

It is much more than gold that simply is not there. The system is getting ready to close on you. The longer you think about it, the less probability you will escape the great train robbery of deposit accounts. I might tell you the real economic story, but I do not think you can handle it. I do not believe there is any other writer out there that knows the real story. It is much more than gold that simply is not there. LINK

Those comments were Sinclair's prelude to posting the same Reuters article about a surprise G7 meeting that was called for this Saturday to discuss global banking reform: LINK Apparently it is rare for the G7 to focus on financial regulation.

As the title to Jesse's post explains, apparently the BRICS are indeed getting restless with the ongoing financial fraud and market manipulation being orchestrated out of NY, DC, Tokyo and London LINK.

The rumor I wrote about earlier was yet another clear cut attempt to create selling in the paper gold and silver market on the Comex - specifically since the rumor was released about 20 minutes after the Comex floor had closed, leaving only the low volume, illiquid electronic market left to deal with the flood of paper selling that rumor created.

I have an uneasy feeling that we are soon going to understand why close to 400 tonnes has been removed from GLD/Comex and why the financial system insiders have been in aggressive gold/silver price management mode since early October 2012. I also have a feeling that people in this country who still have faith in fiat paper money will not like the reasons once they become known...

9 comments:

AnonymousThursday, 09 May, 2013
"I also have a feeling that we will not like the reasons once they become known..."

What do you mean by this statement? That precious metal holders will not like the reasons or your average American citizen that has no clue what is going? Can you please explain? (Sorry, new to most of this...)
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jasaThursday, 09 May, 2013
Dave this meeting of G7 was announced in Nov. By the UK. Just fyi. https://www.gov.uk/government/news/uk-announces-spring-meeting-of-g7-finance-ministers
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jasaThursday, 09 May, 2013
The link indicates the meeting was scheduled in Nov.2012. Google searches show couple other references to the meeting being orgd in advance. The Reuters article is simply misrepresenting the facts about when mtg was originally planned, the quotes would still make sense either way. Just Reuters have dressed it up to make it look like an hastily scheduled event. As for the rest of your piece, the underlying premise of 'something wicked this way comes' is probably very accurate nonetheless.
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AnonymousThursday, 09 May, 2013
sinclair is a complete joke; said he sold 5000 silver contracts at the mkt in 3/1980; check out margin requirements then and position limits; he is a joke and liar; why you refer to him only downgrades yourself
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AnonymousThursday, 09 May, 2013
What ever it is it can not be good. Wonder what it is. If it results in sometime of step function change then it could really hammer the markets.
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AnonymousThursday, 09 May, 2013
Dave, the gold/silver price management started in 2011 and you should have added the mind-boggling open interest of silver and the violent movement in the Comex silver inventory.
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Add comment

Why Gold?

Gold is the world's oldest currency. You exchange your fiat currency (dollars, euros, yen, yuan) into gold as an insurance policy against catastrophic Central Bank and Government policies which serve to destroy the value of fiat currencies and destroy democracy.

Gold can ONLY be considered an investment to the extent that it remains significantly and historically undervalued in relation to the fiat currencies against which its value is measured. Otherwise it remains the world's oldest currency and is completely free from the counterparty risk associated with currency by Government fiat (i.e. fiat currencies rely on a Government's "full faith and credit.")

Quote Of The Month Courtesy of "Jesse"

Unfortunately for Larry Summers, Ben Bernanke, and their friends at the BIS, they have not yet figured out how to print physical gold, silver, and other essential commodities, and the world is reaching the point where it might simply start ignoring the New York based markets with respect to essential commodities such as basic materials, oil, foodstuffs, and the like, as they become increasingly irrelevant, fraudulent, and Orwellian. And then where will the financial engineers be, except with no more excuses and no place to hide?

Here is the link to his entire commentary, well worth a read:

http://jessescrossroadscafe.blogspot.com/2010/07/gold-daily-chart-shock-and-awe-for.html

Great Quote From Jim Rogers On Govt CPI Reporting

JR: I mean, we have inflation now. If you go to the shop, whether it’s groceries, or education or insurance or health care, prices are going up for everything. The government lies about it in the US. Some countries lie, many countries don’t: Australia, China, India and Norway. Many countries don’t lie about it and acknowledge that we have inflation. Others lie about it, the UK and the US, but if you go shopping you know prices are up.

Q: Are you saying that the American Consumer Price Index (CPI) published by the US Bureau of Labor Statistics is a lie?

JR: In my opinion, yes, of course it is. Have you looked at it? They’ve changed their accounting several times in the past few decades. When housing was 20% to 25% of the CPI and housing was going up, they didn’t count it, saying rents weren’t going up, and then when home prices started going down, they counted it. It’s the same with many things. It’s staggering some of the tortuous reasoning that the BLS has used over the past 25 or 30 years. When the price of gasoline goes up, they say it’s not really going up because it’s better gasoline, better quality, therefore you’re getting more for your money. I mean, it’s endless, the stuff that they say and for some reason people sit there, although more and more people are catching on, and accept what the government says.

source: www.clusterstock.com

Quote of the Week

"The primary function of a Central Bank is to engage in the massive transfer of wealth from the middle class to the wealthy elite. The Federal Reserve was set up to do this with the blessing and support of Congress." - Dave in Denver

If you refuse to believe the above, please read "The Creature From Jekyll Island: A Second Look at the Federal Reserve" by G. Edward Griffin and then explain to me why the Senate voted down the Vitter Amendment and Congress refuses to pass a law requiring a full audit of the Fed, even though the Fed is using taxpayer-backed money to bailout Wall Street and Europe.