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...


  1. "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...)

  2. Dave this meeting of G7 was announced in Nov. By the UK. Just fyi.

    1. Explain this statement from the Reuters article, which was published today:

      "But some of the officials said they said they did not know why Britain, which is chairing the G7, had called the meeting.

      "I am really annoyed that I've got to give up my weekend for this," one complained, adding the talks could have taken place on the sidelines of IMF's meetings in Washington in mid-April"

      I don't know what your link is referencing, I looked at it of course, but apparently this meeting on financial reporm was unexpectedly called this week. I'm not the only one who noticed this. Read Jesse's link.

    2. My understanding is that the meeting is previously scheduled but who will attend the meeting was to be decided. Of course, G-7 finance ministers and Central bankers will attend the meeting but the rest of the attendants were not decided until this week.

  3. 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.

  4. 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

  5. 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.

  6. 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.