Compiling a list of Central Banks who are willing or unwilling to disclose the location of their gold vaults is a pointless endeavor unless each CB is willing to undergo a completely independent audit of every bar of gold and the associated record-keeping activities connected with each bar.
We have a better chance of finding life on Pluto than getting any Central Bank willing to submit to a legitimate audit open to pubic inspection.
Not often in financial markets is the future price of gold is lower than the spot price (live), but lately we’ve witnessed such an event in BOTH the New York and London gold market.
This is called backwardation, the opposite of contango.
What causes backwardation and will it increase the price of gold?
In my opinion there are two possible scenarios: the market expects the gold price to fall in the future, or there is scarcity now.
U.S. economy failing, China dumping U.S. Treasuries
– Fed stepping in the bond market where China won’t
– Shortages in physical precious metal markets
– Physical precious metal demand will take down the financial system
The delivery month of August got off to a slow start with just 343 contracts “delivered” as of August 3.
The next day, August 4, the CME released their daily “Gold Stocks” report for activity as of August 3 and it is posted below.
Please take a good look.
Note the exact amount of gold that JPMorgan showed in the registered vault: 98,970.886 troy ounces.
This was only enough “gold” to physically settle and deliver 989 August contracts.
And now here’s where it gets interesting…
The Comex bank custodians are reporting over 51 million ounces of silver available for delivery. In fact, CNT – an official supplier to the U.S. mint – is showing 13.3 million ounces of deliverable silver. So why is there’s a shortage of silver at the U.S. mint?
IF that silver were actually in the vault, the U.S. mint could buy a spot contract – September has a silver contract open – and take immediate delivery.
The silver market is seizing up, which means that there’s a severe shortage of silver available…
- DOW Plunges 500 Points Friday, 1300 Points on the Week- Is a Global Financial Collapse/Panic Underway?
- August Silver Open Interest Surges, Stands For Immediately Delivery of 35 Tonnes: Who Needs Immediate Delivery of 1,135,000 oz of Silver in a Non-Delivery Month!?!
- Doc Explains the Mechanics of Hedging, and Why SDBullion Believes in Physical Metals, Not Hedging Sales to Dollars With Paper Gold and Silver Shorts
Eric On Greece: Why GREXIT Finally Arrives in 2016
The SD Weekly Metals & Markets With The Doc & Eric Dubin is Below:
How do you mention manipulation without actually saying it? Well, if you work for Kitco and your name is either Neils Christensen or Peter Hug you do it this way:
Christensen: “The one bright spot for the precious metals market appears to be the physical market as the U.S. Mint reported a 469-percent increase in July coin sales compared to last year.”
As you know, Martin Armstrong has been saying some pretty damaging things about those of us who believe in and fight the gold and silver manipulation operations.
He continues to blame US for people losing money for investors when he should be fighting WITH US and blaming those that rig the markets for the losses.
The lower price of gold has triggered an avalanche of physical gold accumulation both globally and in the United States. This means that the behavior of the gold holdings of the GLD Trust are behaving inversely to the observed behavior of the global market for physical gold – i.e. the amount of gold held in “trust” at GLD should be rising, not falling.
The ONLY explanation for this is that GLD is being looted by the bullion banks.
The elites want to destroy your belief in the value of owning golf and silver, and they have reenforcing price down despite the overwhelming demand for both. That should embolden your resolve even more. For how much longer this can go on, no one knows. What you can know with a great amount of certainty is that Newton’s 3rd Law of Physics will kick in: for every action, there is an equal and opposite reaction.
This assures you that the distorted action to the downside will reward the faithful with an equally distorted reaction in the opposite direction. It is a matter of time.
The blatant manipulation of the gold market in conjunction with the rabid dissemination of anti-gold rhetoric from both the financial press and Wall Street reeks of desperation – desperation to keep a lid on the one market signal that would undermine the elitists’ perpetuation of the U.S. dollar-based systemic Ponzi scheme which enables them to loot and confiscate middle class wealth.