chart of the day gold plungeThe evidence that a Cartel of Central Bankers and Allies has been suppressing the Prices of Gold and Silver (so as not to have A Real Money Competitor, to their Fiat Currencies and Treasury Securities) has been building for years.
Indeed, the evidence is so overwhelming that it is increasingly making its way into certain Main Stream Media.
But the foregoing private communications to Deepcaster raise a Key Question. “Why can’t they just keep doing this?
Many of us Gold Partisans have wondered the same thing, especially in light of the fact that Germany asked for its Gold back and did not get it.
But the Answer is Clear. Gold Price Suppression can not continue, which raises the questions “Why?” and “How much longer will it last?”

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Submitted by Deepcaster:

“Market data provider Nanex in Winnetka, Illinois, tonight produces proof that Monday’s smash down in the gold futures market was not a mistaken ‘fat finger’ trade but the product of a high-frequency algorithm trading program painstakingly designed to take the market down. Nanex’s report, with great charts, is here: http://www.nanex.net/FlashCrash/OngoingResearch.html ”

 

          www.gata.org 01/08/2014

 

“…I don’t see why they can’t just keep doing this. After all, with each smash it gets easier for them to cover their short positions.

 

“Exposing them by somebody standing for gold delivery which can’t be delivered, is the way, but seems less and less likely. After all, Germany asked for gold delivery and didn’t get it. Nothing much happened!”

 

            Private Communications to Deepcaster

 

The evidence that a Cartel (Note 1) of Central Bankers and Allies has been suppressing the Prices of Gold and Silver (so as not to have A Real Money Competitor, to their Fiat Currencies and Treasury Securities) has been building for years.

 

Indeed, the evidence is so overwhelming that it is increasingly making its way into certain Main Stream Media.

 

But the foregoing private communications to Deepcaster raise a Key Question. “Why can’t they just keep doing this?”

 

Many of us Gold Partisans have wondered the same thing, especially in light of the fact that Germany asked for its Gold back and did not get it.

 

But the Answer is Clear. Gold Price Suppression can not continue, which raises the questions “Why?” and “How much longer will it last?”

 

It can not continue indefinitely because available Physical Supplies are being drawn down much faster than Production plus “Scrap” can replace. We and others have noted the dramatic drawdown in Comex Supplies Registered (available) for Delivery. And depending on time and the Particular Market the spread between the Paper Price and the Higher Price for Deliverable Physical is often Quite Substantial.

 

Indeed, the “shortage” of Physical is already so substantial that Germany asked for its Physical to be repatriated from New York, and all they got was a Promise for seven years of Incremental Deliveries.

 

So given the foregoing evidence of Price Suppression, plus the Sovereign Nation of Germany’s Inability to repatriate its own Gold, what chance is there that the Price Suppression will end soon or ever?

 

Answer, a Good Chance of “soon.” Consider first The Challenge: every National (or Regional, as the Euro) Fiat Currency Printer in the World has an interest in attempting to delegitimize Gold and Silver as Real Money, by suppressing its Price. India’s Central Bank, after all, has (against popular sentiment) piled on Tariff after Tariff to slow the Importation of Gold.

 

But the Draw Down of Physical Continues, led by China, the World’s largest Importer and Producer. And China does not export Gold.

 

But One Key that the Price Suppression must end was Provided by another Communicant

 

“That’s a great question. Why can’t they just continue to do this? Perhaps they are loading up on physical at these reduced prices (most particularly Chinese interests are doing so) and then they’ll let the price go up?”

 

Private Communications to Deepcaster

 

China is clearly moving toward making a Gold-Backed Yuan the World’s Reserve Currency and is likely temporarily Complicit in facilitating the “low” current Prices so they can continue to Buy on the cheap.

 

But given the Physical Drawdown this can not last.

 

The German Repatriation Attempt Failure is a superb example of just how severe the Available Physical Supply Shortage is. (Germany was undoubtedly “leaned on” to accept Promises of a seven year Repatriation Scheme by its and the European Central Banks’ Central Bankers in the same way the US Taxpayer was leaned on to provide the Multi-hundred Billion Dollar Bank Bailout in 2008 – “The whole System will collapse unless you do it our way” is the likely [fallacious] “Argument”).

 

And the Regulators have proven themselves useless at best, and complicit at worst.

 

“MIDAS NOTE: So why and heck is it that someone doesn’t demand the identity of who pulled this trigger and call them out?

 

“What a lame dead regulatory/investigative world we have in the US.”

 

LeMetropoleCafe.com

 

But the Reason the Price Suppression can not continue much longer despite Cartel Suppression attempts is found in the recent Headline

 

“One week into 2014 UK Royal Mint Runs out of Gold Coins”

 

“JBGJ understands that the main market for these coins is the Gulf and India (H/T GMS). Very likely the demand surge reflects Indian smuggling off take.”

 

          JBGJ 01/09/2014

 

China and “Retail” Investors in the Gulf, India and around the World are implementing an End Run around the Cartel’s Paper Price Suppression Scheme. Therefore, Expect more Delivery Failures, followed by Massive Launches up in Price.

 

The “when” can be answered by Monitoring the Markets and Physical Flows as Deepcaster’s Reports and Alerts to its Subscribers reflect.

 

No surprise then that even the “smart” Establishment Money and Opinion is shifting to a “Buy Gold” Perspective. Note The Gartman Letters’ Admonishment, and JBGJ’s correct observation:

 

“…we note the ‘reversal’ to the upside two weeks ago which still obtains even despite the ‘attack’ upon gold earlier this week when prices fell $30/oz. in a matter of moments. The fact that the weekly reversal in gold’s favour holds is impressive….as we watch gold buying continue at a heady pace in China and even too in India despite the latter’s government’s attempt to quell demand, we are impressed.

 

“…our propensity to act is rising.

 

          The Gartman Letter

 

“While TGL is generally unpopular amongst gold friends, JBGJ’s observation is that the service has a pretty good buying record.”

 

JBGJ, 01/09/2014

 

And there is one more overriding Reason the Gold Price Suppression can not continue. Consider the Headlines and Introduction to Shadowstats.com 2014 Hyperinflation Report.

 

The Fed-led Destruction of the Purchasing Power of the World’s Reserve Currency, the U.S. Dollar, will leave one “Currency” left standing – Gold.

 

Extremely Difficult Circumstances in the Year Ahead:

Confluence of Economic and Systemic Crises Should Intensify

 

With Global Confidence in Dollar Rattled by Uncontrollable Fiscal and Monetary Excesses, U.S. Government and the Federal Reserve Have Limited Options to Address Panics

 

Heavy Selling of U.S. Dollar Remains Likely Proximal Trigger for Inflation Pick-Up

Developing Hyperinflation Would Push Ongoing Recession into Deep Depression

Physical Gold Remains Primary Hedge for Preserving Wealth and Assets

 

Nothing is normal: not the economy, not the financial markets, not the financial system and not the political system. The year ahead will be an extraordinarily difficult time, with a confluence of already-intensifying crises and likely panics pummeling the moribund economy, roiling the markets, and destabilizing the financial and political systems. With the federal government and Federal Reserve locked into their respective systemic-destructive fiscal and monetary policies, a related, continuing massive loss of global and domestic confidence in the U.S. dollar, should lead to an outright dumping of the U.S. currency in the global markets, setting the initial stages of a hyperinflationary great depression.

 

Hyperinflation 2014—The End Game Begins, No. 587: Special Commentary

Shadowstats.com 01/07/2014

 

Physical Gold and Silver in one’s Personal Possession (NOT in Bank Vaults) are the best Protection. Deepcaster echoes Jim Rickards observation, which we paraphrase, “Those who become aware late, will wake up one day and find there is no Gold available.”

 

Best regards,

 

Deepcaster

January 10, 2014

 

Note 1: We encourage those who doubt the scope and power of Overt and Covert Interventions by a Fed-led Cartel of Key Central Bankers and Favored Financial Institutions to read Deepcaster’s December, 2009, Special Alert containing a summary overview of Intervention entitled “Forecasts and December, 2009 Special Alert: Profiting From The Cartel’s Dark Interventions – III” and Deepcaster’s July, 2010 Letter entitled “Profit from a Weakening Cartel; Buy Reco; Forecasts: Gold, Silver, Equities, Crude Oil, U.S. Dollar & U.S. T-Notes & T-Bonds” in the ‘Alerts Cache’ and ‘Latest Letter’ Cache at www.deepcaster.com. Also consider the substantial evidence collected by the Gold AntiTrust Action Committee at www.gata.org, including testimony before the CFTC, for information on precious metals price manipulation. Virtually all of the evidence for Intervention has been gleaned from publicly available records. Deepcaster’s profitable recommendations displayed at www.deepcaster.com have been facilitated by attention to these “Interventionals.” Attention to The Interventionals facilitated Deepcaster’s recommending five short positions prior to the Fall, 2008 Market Crash all of which were subsequently liquidated profitably.

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  1. No one knows how long the manipulation game can continue.  The best answer is, not much longer.  Well, I don’t buy that answer.  We don’t even know how much gold China is buying or where they are buying it.  We really don’t have any clear answers.  Jim Willie says that China buys a thousand tons per month!!!!!!  I like Jim Willie but he needs also add some sources before making claims like that.  Dr Paul C Roberts says that the Feds do not need phyzz gold at all to manipulate the markets, that naked shorting is all that needs to take place and that this activity can go on indefinitely.  We do not have any answers.  We don’t know how much gold is out there for sale.  The pundits are just making back of the napkin estimates.  And, we also have the global currency reset rumors going around that are nothing but rumors at this point.  We need answers.  Not speculation or hollow rumors from un named sources.  Lately my favorite is the IraqiDinar scam.  Buy the dinar and become an instant millionaire.  Great stuff.

    • 1000 MT a month ! the world mines 2000T a year give or take, US used to have 8000 MT but since we gave germany our 90% coin melt for   re-patriation how much can we really have sitting around. I really have a hard time digesting these numbers also and would love some hard facts but it seems extrapolation is all we can count on. From all that i have read, heard, inferred and just plain pieced together…i cant see this going on for more than another couple of years…and thats the glass being half full.  

    • @SILVERTONGUEDEVIL
       
      I agree.  When people are doing skulduggerous things and operate in the shadows, there simply isn’t any hard data available because they are making a tremendous effort not to allow that data to see the light of day. 
       
      I have read before that the USA had over 20,000 tons of gold, probably in 1945 or so.  A good part of this may well have been national gold hoards that were sent to the US for safe keeping during WW-II.  Having two very large oceans as protective buffers was an immense strategic advantage in those days.  My question is, if we really do have 8,000 tons of gold, what happened to the other 12,000 tons of gold?  Also, if we really have 8,000 tons of gold, why can’t Germany have their 1500 tons returned immediately for the asking?  The answer is pretty clear but the roaches in DC are scurrying like mad to avoid answering it.
       
      Personally, I doubt that we still have much gold.  It has been frittered away, most likely via under-the-table deals with the Saudis and other oil producers as well as with the Chinese… plus some generous kickbacks to those who facilitated this theft.  I would LOVE to know where it went, when, why, and who were the SOBs in this country who helped foreigners steal OUR gold.  These cretins have a LOT to answer for and answer they shall, whether in this world or the next.
       

    • @hromano1030
       
      Yeah, I bet that a lot of it did go there.  French banks were presenting US dollars to the NY Fed and demanding gold in exchange for them.  But French banks would not hand over gold in exchange for any French francs that we had to sell back to them.  It was a 1-way street and we just could not play that game without completely emptying the US gold hoard.  That was why the “gold window” was closed back in ’71.  What else could he have done?  Economics is a game that only works well when everyone plays by the same rules.  They would not adopt our rules so we had to adopt theirs.
       

  2. I have no doubt that available for delivery Gold and Silver are as scarce as virgins in a …. well you know.
    I also know that in the not too distant future our lives will no longer lead a business as usual existance, things will change for the worse when the curtain is torn down and financial stability is found out to be nothing more than hope and faith. 2013 Eagles are still available in MonsterBoxes but for how long ?! Doc mentioned in the SD weekly Report that dealers are already 4 weeks plus into allocation for 2014s just to cover existing orders because of USGM diminished distribution and they wont start to deliver for another couple of weeks!     UK mint is all but done with their 2014 Gold coins and we havent even hit February yet ! Tomorrows paper price may portend, at least for me, how much ill be buying. Its at least a box…i hope the cartel gives us the opportunity to all do some post holiday shopping. Good fortune to us all!!!   

    • I hate to correct you, but the UK mint have run out of stock because of demand. This doesn’t mean an awful lot as you can get 2014 Sovereigns very easily through their distributors. The Mint can just fire up the furnaces and produce some more.
       
      The royal mint changed their modus Operandi in 2013, going full on Bullion suppliers. This means that the all coins are now seen as just pieces of metal, not art. Britannia Silver is now no longer produced, and unless specified all gold coins are now just bullion, sold in tubes. Very sad.
       
      I will be buying some more Sovereigns just after I finish typing this. 

    • Ok…i sit corrected i think… i am uncertain of the distinction between the UK mint ceasing production and the UK mint ceasing production.
      Granted availability at dealers may be true… isnt the fact that they are done producing ( due to whatever reason they may give for public consumption ) mean they cant and not just wont? 

    • They have not ceased production. Just run out of stock at Llantrisant. As I stated, just need to fire up the furnaces, and whadayaknow….more gold.
       
      Its not like The US mint, where they have a charter of how many they MUST produce. 

    • @MaryB
       
      The Royal Mint (sales direct) do no operate on the gold spot. They sell their coins at stupid amounts. Through a reseller, you can as of yesterday get a Sovereign for around £190. From the royal mint, £220. They don’t operate any where near the gold price.
       
      So based on their sales price, yeah I think they can get gold.
       
      I called them up for a direct order, thinking I could take out the middle man. I was quoted an order size of over £25000 minimum. This suggests a Just in Time system, where they price in the market.
       
      oh and just to prove they are still supplying, check out the link, as you can see “In Stock”

      Don’t believe the hype monkeys, crashing their symbols (pun intended).
       

      http://www.royalmint.com/shop/The_Sovereign_2014_Bullion_Single_Coin

       

    • @Silvermail,
       
      Apparently the Royal Mint thought it best to go for 999 silver instead. I think it was to reduce production costs of 1 oz Britannia coins.  Its a lot cheaper selling straight 999 silver than coming up with some exotic 958 alloy. The old Britannia had 1 oz of silver in them, but because they were 958 silver alloy (95.8%) other copper was added. This meant that they were heavier than 1 oz because of the added copper. The new 999 Britannia came in 2013. I prefer the 958 metal, makes them harder than the pure 999 or 9999 standard
       
      Sad day. Still , I managed to get hold of a load of 1/2 oz 2011 Britannia coins. Rare as hens teeth and should make me some money in a couple of years time, numismatically speaking.

  3. I haven’t been a regular reader of Precious Metals Pete [Free Gold Crowd] but I know a few members on SD are. So, in an attempt to keep an open mind to all opinions [but still very suspicious of Zmans I may add ;-)] I recently book marked his site hoping to get a better understanding of his perspective on things.
     
    A post has just been made today which seems to be getting him rather excited? Not sure if he is prone to KWN style announcements i.e. every headline is the breakthrough we’ve all been waiting for ….but never is, or today’s post is a genuine change? I haven’t read much of the archive on his site so maybe any long term readers of his blog can clarify if this is something to genuinely get excited about or not?
     
    What he has posted today seems to be a reinforcement of Jim Willies theories.
     
    China’s Gold Trade Standard. Fasten Seatbelts…..
     
    Here we go, guys….. get ready for take-off…..
     

    http://lcn.freedgold.com/

    • @Marchas45  Its going to take off so don’t worry.  William Kaye has a good audio interview over at KWN.  Very plausable opinion in my view.  Silver is going for a moon shot starting in the Spring or early Summer and will triple in price over the next 18 months.  Is that OK with you?  Now, if Jim Willie’s so called currency reset happens that will make silver’s climb even more remarkable.  

    • You guys have no idea how much I cringe at the term “going to the moon”, as it relates to investments or PMs.  The history of the stock market is absolutely littered with the corpses of those who thought that something was “going to the moon” (think Internet stocks in 1999), went all-in, and lost their arses.  I hope and pray that this does NOT happen to gold or silver, as the track record of “moon shots” is absolutely miserable.  Besides… there is only one way to reach the moon and that is by rocket.  Things that go up like rockets tend to come down the same way… and usually with a big BOOM! and a ball of fire at the end of the ride.  That said, both gold and silver can rise significantly without doing a moon shot.  A steady rise from their current prices to several times that over 4-5 years would be just fine… no moon shot needed.  ;-)
       

    • @Ed_B  Moonshot makes you edgy huh?  Sorry.  I really don’t know what silver is going to do.  I just have a feeling that in the Spring and Summer things are going to change.  At any rate, Jim Willie has a new interview out today with Gregg Hunter over at USAWatchdog.  The interview sucked.  Willie is predicting a US dollar currency reset.  If what he is saying is true we are in for some really hard times in the near future.  I think at best we can say his timing will be off and the currency reset won’t happen this year.  

    • Marchas45

      Charlie, I’m in your boat. Got the anchor cinched up and ready? GPS and lights all charged up? Air-tanks filled for a full day’s excursion? I’m set Man! I got my first hole picked out already!

    • @Marchas45
       
      Wow, Charlie!  That’s once in a blue moon!  A rare event for sure.  :-)
       
      @Pollokeeper
       
      Yes, it sure does.  I suppose that it could do a “good” moonshot but that seems a rare event.  It would be good to see gold and silver move higher but it would be even better to see it happen over time and for reasons pertinent to the metals themselves rather than due to some aspect of manipulation.
       
      ” I just have a feeling that in the Spring and Summer things are going to change.”
       
      I could not agree more with this.  The time between about April ’14 and July ’15 has me really on edge… like never before.  It is like being near a sleeping dragon that you just know is gonna wake up at just the wrong moment.
       
      “Willie is predicting a US dollar currency reset.”
       
      Yeah, I’ve seen references to that in his writings both here and on SGT Report.  Like everyone else here, I have no idea of timing so can’t even guess as to when this might happen, but the next 3-15 months looks like a time when just about anything could happen.  The fact that the stock bubble remains inflated is not all that reassuring.  Like any other bubble, they look fine right up until they POP!  Unlike Willie, I really have no idea what the implications of a currency “reset” will be… or even what a reset actually is.  Is it a devaluation?  If so, then it will not be the first time that this has happened in the US.  FDR did it back in ’33 and by a whopping 69%.  If the US dollar were to be devalued, then it would likely happen in 2-3 stages over a 6-12 month time frame.  That would probably be less of a shock to the economy.  While the price of everything would go up from this, the prices on imported goods would rise quickly and probably the most.  Maybe that would be a good thing for US manufacturers.  Nothing any of us can do about it except prep as much as we can and hang on tight.  Any extra time that we get for that is appreciated.
       

  4. As to the British mint… is it possible that they are ceasing production in an effort to help the Indian government to stem the flow of rupees into gold?  By pinching off the supply, that would seem to discourage gold buying in India.  While the tariffs have been fairly successful at dampening gold demand, they have also succeeded in increasing gold smuggling.  If the costs associated with gold smuggling are less than the costs of the new tariffs, smuggling will increase in order to supply the gold demand.

  5. As has been stated by myself, and more importantly by smarter, better looking people with thicker hair and larger wangs, the game goes on until it cannot. When a supply shock happens, the market breaks, or they want the price to go up.
     
    Forecasting that is a murky errand. No doubt though that it is closer every day that goes by.

  6. I am usually 18-24 months off when I think something is going to go badly. This has come true for me twice in the past regarding timing on selling etc. So, my concern regarding the imminent collapse of the dollar started last October(2012) placing the eventual date IMHO around…drum roll please…April 2014 to October 2014.
    I am hopeful that events transpire to make that a softer landing as I don’t think anyone is looking forward to what that would mean.

    • Agreed, When financial rules change, there is no heads up.  Nixon’s announcement just happened. No heads up. Dollars were convertible until they weren’t.  The bank accounts in Cyprus were 100% solvent, and accessible until they weren’t.  MOON SHOT? Sounds uncomfortable? How about not getting your cash? Does that sound uncomfortable to you? How about being France – stuck with Dollars not convertible to Gold, does that make people uncomfortable? 
      I have a Reagen announcement:  Shits about to get very uncomfortable for a lot of people.  Your not going to catch wind of it, you won’t have any warning, so don’t be stupid.  You don’t have to make millions, or even profit…. simply don’t get your ass handed to you.  I can say this for many countries:
      At least they got SOME GOLD before they no longer got ANY GOLD.
      So you have to ask yourself… Are you going to be like one of those trusting countries that assumed your dollars would always be convertible? Or are you going to balance your risk by not being a 100% trusting fool? 

  7. The physical paucity argument aside, which I’ve also vigorously prosecuted countless times, is augmented by a trend that’s been recounted frequently over the past few years, but doesn’t seem to gain much cache’ in the general consciousness … which is that banknotes as a total group, are falling in purchase power faster than the precious metals … even given the recent ‘crashes’!

    A more pronounced effect of this is showing more signs of intensifying. With so many countries abandoning the ‘petro-dollar’ scheme and denying American bank holdings, among SCORES of OTHER similar factors, the long dreaded tsunami of those banknotes washing over our shores, projecting all the way onto Plains of the Heartland, is in progress. Even if the ‘cartel’ CAN ‘freeze’ the metals in place, the rise in banknote-defined cost of living, juxtaposed against the relative stalwart endurance of the metals, will quickly reveal itself as a fortress of respite and people worldwide will flock to its gates till it can hold no more refugees.

  8. Pat Fields does this wash of banknotes include those being sent back to our shores via indirect purchase channels with China buying assets such as gold, land, oil and other commodities with USD. 
    These are then ‘repatriated’ to the dealer banks via back channels.  That amounts to trillions in dollars

    • AGXIIK … “does this wash of banknotes include those being sent back to our shores”
       
      If by ‘wash’ you mean ‘the flood’ … yes.

      Let’s ask ourselves … will these ‘back channel’ credit units be burned or erased by the entities receiving them? Or, will they ‘deposit’ them to some ‘account’? If (assuredly) the latter, then, to an ‘account’ which reports its figures, or (as with an OTC ‘account’) isn’t subjected to public scrutiny?

      If to a non-reporting ‘account’, on what will it be deployed? Buying out derivatives contracts … measured at 1.5 Quadrillion? Not enough. Or, mortgages and such, the funds flow from which MAY POSSIBLY cover obligations ON those derivatives? More likely. BUT, as the service on those derivatives is itself re-deployed into real goods and assets, the long anticipated inflation of currency circulation and resultant price effect will finally break the starting tape.

      To twist the old adage … they can hide, but they can’t run. At least, that’s my humble speculation.

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