JPM gold vaultWhile it is generally known to many that the Bank of England has a vested ‘interest’ in the London gold market, the consistently close relationship between the Bank of England and the LBMA tends not to be fully appreciated:


Alasdair Macleod & Bill Murphy joined The Doc this week for a special episode of the SD Weekly Metals & Markets.
Bill & Alasdair gave an extraordinary interview, and discussed:

  • The cartel’s shift to attacking the metals pre-emptively prior to the release of the FOMC/NFP reports to prevent break-outs to the upside.
  • The implications of the spiking 10 year Treasury bond with over $400 Trillion in interest rate swaps held by the major banks- would the banks be able to handle a rise in Treasury rates? 
  • 1,300 tons of custodial gold held by the BOE (likely owned by France, Italy, & Spain) likely leased out onto the market over the first half of 2013 were required to prevent a systemic financial collapse in the wake of the Cyprus bail-in due to collapse of confidence in the banking system throughout Europe.
  • Using Austrian Measure for Money Supply, Gold Only Up 40% Since 2000!
  • While the bullion banks have largely covered their gold & silver short COMEX positions, the bullion banks are still stuck with a massive short gold position on the LBMA, and a sudden rise in the price of gold could stimulate a crisis in the physical market in London!

The most explosive and powerful SD Weekly Metals & Markets we’ve ever recorded is below:

While Bernanke spent his afternoon today outlining why the gold standard can never work (never mind the fact that it worked perfectly for 2 centuries in America), the Bundesbank has just shattered the remaining confidence in the fractional bullion banking system, announcing that it will repatriate a portion of its gold reserves from the NY Federal Reserve, and ALL 374 tons of its gold held at the Bank of France!

In the months that followed Hugo Chavez’ 110 ton gold repatriation request in the summer of 2011, gold exploded nearly $400 as the bullion banks panicked.  As the Bundesbank’s official gold holdings held at the Fed and the Bank of France dwarf Venezuela’s 110 tons, don’t be surprised if the price of physical gold goes super-nova as Germany’s repatriation request plays out, as paper gold rehypothecated 100 times over must suddenly be conjured up in physical form.