Gold defaults are already taking place by way of paper contract settlement with fiat currency, but this can’t go on much longer. Here’s why…
Gold expert Andrew Maguire says, “We are very close to a price reset (in gold and silver). What is a price reset? It is no more than settling . . . close to a trillion dollars of derivatives that are underwater and unable to be delivered. It is going to be a simple paper market reset. I suggest it will likely happen on a Friday . . . and there will be a known default and a price adjustment for Monday morning. . . . You will be into a bid only market. There would not be any offers to sell gold. . . . I am not going to guess on a price. . . .I know of two investor groups that are buying physical gold because they know there is going to be a physical price reset.”
In closing, Maguire says, “The jig’s up for the American dollar. Obviously, it’s not going to be overnight, but it is happening. Gold has to appreciate in this environment. We all know that the paper markets (for gold) have leverage of 500 to 1. We actually think it is much closer to 1,000 to 1 when you account for all the derivatives.”
Join Greg Hunter of USAWatchdog.com as he interviews gold expert Andrew Maguire with Kinesis CEO Tom Coughlin.