The Gold manipulation will continue until the Gold market is totally broken, until the big banks that control it are totally broken, or until the USDollar & USTBond structures are totally broken. Personally, I am encouraged by the mid-April events to crash the Gold price. It has resulted in exposure of the criminal element, in exposure of the COMEX & LBMA as being desperately low in Gold inventory, in exposure of the great difference between paper Gold price (futures contracts) and physical Gold price (actual high volume sales), and in tremendous motivation by the very wealthy to reclaim their Gold in Allocated Gold Accounts. The bankers have brought to the table a Prima Facie case that their corrupt Gold market attack was motivated by having no Gold for contract delivery.
The Jackass forecast is for the next great scandal to be centered upon the Allocated Gold Account thefts, which my excellent source informs me involves the improper usage, leasing, and theft of over 20,000 metric tons of Gold bullion. The German Government formal request for repatriation is the tip of the iceberg. It is a contest, a race, between the breakdown of the USD/USTBond structure and the COMEX & LMBA Gold market structure. The former is in the process of being rejected by the Eastern nations, now organized. The latter is in the process of being recognized as an empty arena with no Gold in inventory. [Read more...]
Jim Willie: Next Scandal to Break is Leasing & Theft of 20,000 Tons of Allocated Gold!
Jim Willie: Golden Paradigm Shift!
Gold and USTBonds aint a market. Their so-called official trading arenas are empty rooms with USGovt and USFed devices filling the empty space, creating a phony price. The false Gold price has no real supply. The false Bond price has no real demand. The claimed price is not where Supply meets Demand to clear the table on the market. Neither Gold more the USTBonds are a real market.
A Paradigm Shift is underway. The United States and its fascist allies are not in control. They will not find a path to retain or regain control. They have no solutions. The most powerful element of the shift has been the movement of gold wealth from Western locations to Eastern locations.
The world reacts by searching for a USDollar alternative, since the removal of the Gold Standard has crippled the world and permitted widespread fraud. The new standard will usher in the new Gold Trade Standard.
The US account holders will be treated with stock shares in conversion for the dead banks, whose value will converge quickly to zero. Expect soon the result to be a climax with bank runs.The bank runs will coincide with bullion bank runs, the fast removal of gold held in inventory vaults at the bullion banks.
[Read more...]
Texas University Sells $375 Million in Gold Bars…to Re-Invest in Gold Futures!
Two years ago, Texas University shocked the gold community by taking delivery of $1 billion in physical gold from the COMEX, under the guidance of Texan hedge fund titan Kyle Bass.
Bloomberg reports this morning that the University’s Endowment fund has just liquidated $375 million of its physical gold position over the past 3 months, and will plow the proceeds…back into the PAPER GOLD FUTURES MARKET (along with general equities).
Nothing like identifying a coming trend and getting out of Dodge in time…just to come running back and jump into the fire when the game actually starts heating up!
Somehow we suspect that Mr. Bass was not consulted on the University’s latest financial decision… [Read more...]
Gold Bank Run Begins? Dutch Bank ABN Amro Halts Physical Gold Delivery!
*Breaking
The Cyprus/ Eurozone crisis has just intensified, as Dutch Bank ABN Amro has sent a letter to clients this weekend informing them that they will halt extradition and physical delivery of their clients’ gold holdings effective April 1st!
No worries however, Amro ensures its clients that there is no need to panic or do anything rash (such as remove your phyzz prior to April 1st:
We ensure that we have your investments in precious metals now the new way to handle and administer
Forget traditional imminent deposit bank runs in Cyprus, has a physical gold bank run begun?
[Read more...]
BANK OF MEXICO BUYS PAPER “GOLD”, SELLS PHYSICAL!
Two years ago Banxico bought 100 tons of gold, and in 2012, added 20 more tons. Last February, its total holdings amounted to 124.5 tons, equivalent to just 4% of Mexico’s international reserves.
This wrong decision is compounded by the fact that the gold sold was part of the very small amount of physical bullion that Mexico had in it’s possession; bars that had been stored in Banxico’s vaults.
In other words, Banxico purchased 120 tons of paper “gold”, and sold a very important part of the real metal it held! [Read more...]
ZH Discovers JPM’s Largest Gold Vault in the World is Across the Street, & Connected by Tunnel, to NY Fed!
After uncovering JPMorgan’s secret gold vault in London last week, the Tylers at ZeroHedge have discovered via several documents buried at the CFTC’s website revealing that JPMorgan’s secret gold vault in Manhattan is across directly the street from none other than the NY Fed.
The vault, according to one of the original architects, is the largest gold vault in the world at over a football field in length, was built on the Manhattan Island bedrock 5 stories below street level to withstand a direct nuclear blast, and is literally connected by underground tunnel to the NY Fed’s gold vault.
Can you say gold rehypothecation?
Treasury Releases Results of NY Fed Gold Audit, Inadvertantly Reveals US Gold Stores at NY Fed Are Only 466 Tons!
The Treasury Department has released the results of a gold audit on the Treasury’s gold holdings stored at the NY Fed which began in 2010. Not surprisingly, the Treasury report claims that the audit found no issues with the quality of the gold held at the NY Fed, or in any policies or procedures by the NY Fed.
The audit reportedly claims that in 3 of 367 tests of the gold’s purity, the gold was more pure than Treasury records had previously indicated, and as a result has increased the book value of the US’ gold holdings by 27 ounces.
The most newsworthy revelation in the report however was that the US (which is supposed to hold the vast majority of its gold reserves at the NY Fed) holds a total of 32,021 good delivery bars on deposit at the NY Fed:
As part of the audit, the Treasury tested a sample of the government’s 34,021 gold bars in the New York Fed’s vault five stories below Manhattan’s financial district.
Why is this so significant? As anyone with a simple calculator can discover, the Treasury department has just inadvertently admitted that rather than the official 8,133.5 tons the Treasury reports as the US’ official gold reserves, the Treasury’s actual physical gold stores at the NY Fed are a measly 466.57 tons! While the Treasury does reportedly also hold gold at Fort Knox, several reports have claimed that up to half of the US Gold is held at the NY Fed!
No wonder it will take the Bundesbank 7 years to repatriate 300 tons!
[Read more...]
How ZH’s Discovery of JPM’s Top-Secret London Gold Vault Could End JPM’s Alleged Gold Manipulation
Yesterday we reported that ZeroHedge via excellent investigative journalism had discovered the top-secret location of JP Morgan’s London gold vault- namely 60 Victoria Embankment.
Numerous SD readers have inquired as to the significance of the story, and why the discovery of the specific location of JP Morgan’s gold vault should matter to precious metals investors (or to JP Morgan for that matter). The answer as to why this is so significant for JP Morgan lies in rehypothecation.
Once a precise location, holding specific goods can be pointed to by a creditor, the creditor will quickly seek a Writ of Attachment. The gist of receiving the writ for JP Morgan is: “Hey, turn over this specific XXX to the court, so the court can give it to the proper owner; and don’t you dare move it until the court says OK.
All diehard gold bugs suspect, of course, that through leases, derivatives, futures and [etc], JP Morgan has geared the bejezus out of the bullion, regardless of who the legal owner(s) are, regardless of whether the gold is supposedly allocated or unallocated (think MF Global).
So the thought that JP Morgan might have to send its legal team in to court to do battle with barbarians at the gate – the 120 banks looking for assets – is juicy. And a true headache for JP Morgan, because if or when it happens, JP Morgan no longer controls the situation.
Gonzalo Lira: Why Isn’t Gold Higher?
Hint: Because it’s the Credit Default Swap of the Next Financial Crisis
Submitted by Gonzalo Lira
Credit default swaps were the insurance—the hedge—against exactly what happened in 2008: Bonds threatened to default, during the Global Financial Crisis. So the CDS’s insuring those bonds rose in value—until suddenly, they didn’t: CDS’s stopped rising in value just when the markets collectively realized that the counter-parties to those CDS contracts might not be able to pay up.
What if the price of gold is drifting not because the markets don’t trust the world’s reserve currencies to continue to devalue, but because the market doesn’t trust gold?
Since everyone with any sense realizes that this is the endgame of the current race to the bottom, gold ought to be rising dramatically, but that is not happening. Gold rose steady and strong from 2000 through September 2011—but since then it’s been drifting jaggedly.
So why would gold—which is an actual, physical commodity—be acting like credit default swaps did right before the 2008 crisis?
For the same reason: Gold buyers don’t trust the counter-parties selling gold. [Read more...]
Swiss Banks Begin Offering Allocated Gold & Silver Accounts
Swiss banks, UBS and Credit Suisse, have moved to offer allocated gold and silver accounts to their clients – including high net worth, hedge funds, other banks and institutions. The move allows these entities to take direct ownership of their bullion in allocated accounts. According to the Financial Times, the banks say that they are making the move in order to reduce exposure and risks on balance sheets and in an effort to be more transparent. “Under more common “unallocated” gold accounts, depositors’ bullion appears on the banks’ balance sheets, forcing them to increase their capital reserves. Like their global peers, UBS and Credit Suisse are under pressure from regulators to reduce capital-intensive activities ahead of the introduction of new Basel III global banking rules.” It is more likely that the banks made the move to allocated storage due to an increased preference from their investors who are weary of continuing systemic risk. [Read more...]
Keiser Report: Welcome Home German Gold!
In the latest Keiser Report, Max Keiser and Stacy Herbert discuss the currency war masquerading as a ‘storage plan,’ the Bond Kings threatening the gold repatriating Germany with having a Libya done to them, and the Mexican taco stand in Florida advising customers to invest in silver.
In the second half of the show, Max Keiser talks to Doug Casey of CaseyResearch.com about German gold, Glenn’s Gulch and future war. [Read more...]
Jim Sinclair: German Gold Repatriation is the Most Significant Gold Event in 50 Years, Beginning of the End of the US Dollar As Reserve Currency
Legendary gold trader Jim Sinclair has sent an email alert to subscribers today regarding last night’s news that Germany will begin repatriating it’s gold held on deposit at the NY Fed back to the Bundesbank, as well as all 374 tons held at the Bank of France.
Sinclair states that history will look back on this salvo fired across US war financing as being the beginning of the end of the US dollar as the reserve currency of choice, and that under normal circumstances, no major central bank would insult another major central bank in the way that the Bundesbank just has.
Sinclair states that the Bundesbank repatriating its gold reserves is the most significant event in the gold market since Charles De Gaulle called the US hand that it would stand by convertibility, and that gold is headed to $2111 in the near future in the wake of the Bundesbank’s actions.
Sinclair’s full MUST READ alert below: [Read more...]
Bundesbank to Repatriate 374 Tons of Gold From Bank of France, Substantial Portion of Gold Held at the NY Fed!!
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. [Read more...]
Eric Sprott on Physical vs. Paper Gold & Silver
Our friend Eric Sprott of Sprott Asset Management was interviewed by TrimTab’s Charles Biderman over the weekend. Biderman, who previously has recommended investors purchase GLD and SLV for gold and silver exposure, receives an education on paper vs. physical by Sprott.
Sprott informs Biderman on Doc’s rule of If You Don’t Hold It, You Don’t Own It!, stating: Always have access to your physical!
Sprott’s full interview below: [Read more...]
Year in Review: The Top SD Stories of 2012
2012 is almost in the books. That means its time for another review of the year’s top stories on SilverDoctors.
The most important and most popular SD Stories of 2012: [Read more...]
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