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The final battle between paper and physical gold is underway, and the line to defend for the cartel

Goldhedge

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#1
'The final battle between paper and physical gold is underway, and the line to defend for the cartel is $1300 per ounce'

One of the most significant elements in gold price determination is the technical data points that usually spark the central banks to summarily kill any rally, and work to suppress the price using billions in paper contracts. We saw this most recently on April 21 when in less than 5 minutes, a bullion bank dumped over $2 billion in naked gold contracts, which is 20% of the global mining output for the precious metal.

But these desperate efforts are quickly beginning to fail, and have only a very short-term affect on a price that is strongly in favor of going much higher. And just as quickly as the central banks and Treasury ordered their lackey banks to naked short gold to protect the dollar five days ago, the price rebounded strongly to actually close the day in the green by a few dollars.

In the newest publication put out today by Dr. Jim Willie, the esteemed statistician and analyst announced that with the opening of China's new price mechanism at the Shanghai Gold Exchange, the final battle between paper and physical gold is underway, and the last line of defense for the paper markets is to hold the $1300 price.




Currently, the number of contracts on the COMEX represents 300 times as much paper gold as there is physical metal in the COMEX vaults. Moreover, this number has ballooned at a faster pace over the past two years or so. The 300:1 ratio of contracts to physical ounces is propped by powerful restrictions. The COMEX forbids delivery of gold on the ramps to satisfy a gold contract, under threat of banning the party from participation and entry in the door. Almost nobody takes actual delivery of their metal, except for the big Wall Street banks which steal gold from other depositors. These banks also routinely rig the windows to enable removal of investor gold in the GLD Exchange Traded Fund, and silver from the similar SLV fund. Imagine a gold futures contract with no delivery possible. How absurd! But it has been the reality since June 2012. The situation is perhaps even more frightening in the London Bullion Market Assn (LBMA). This market sees $trillions worth of gold trades every day. The activity is truly baffling. On individual trading days, more gold changes hands within contract trading (paper shuffling) across the London market than all the available gold in the world. Yet no metal moves anywhere, in a grand charade. These are merely paper transactions, with almost no actual metal ever in movement. The staggering leverage and dilution should not make any sense to the rational observer. However, in sharp contrast, the Eastern nations are accumulating gold in large volume.GOLD & SILVER PRICE REVERSALS The gold reaction to the Shanghai market development has been muted. But a powerful reversal is in progress, which should be impossible to halt or to obstruct. An unsual pattern shows itself in an upward bias Cup & Handle toward a reversal, where the $1300 level is well defended. – Jim Willie, Silver Doctors


http://www.thedailyeconomist.com/2016/04/the-final-battle-between-paper-and.html
 

southfork

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#2
Im still of the opinion the only thing that breaks the fraud of manipulation is someone standing for delivery and crimex defaults, its easy to do theres not much gold or silver there and Im quite suprised it hasnt been done with all the countries that hate the US, perhaps theS hanghai Gold Exchange was created to do just that. Im still not getting a warm fuzzy feeling about metals.
 

FunnyMoney

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Im still of the opinion the only thing that breaks the fraud of manipulation is someone standing for delivery and crimex defaults, its easy to do theres not much gold or silver there and Im quite suprised it hasnt been done with all the countries that hate the US, perhaps theS hanghai Gold Exchange was created to do just that. Im still not getting a warm fuzzy feeling about metals.
Standing for delivery at the Crimex won't do anything, it is written into their contracts that they are allowed to change the rules at their discretion and can make things whole with cash settlements if you're lucky and with a law suit if you're not. The new Shanghai exchange should attract more of the big players who care about the Crimex crimes. It is a slow road for traders to make a switch and trust China over the Crimex. The devil you know is better than the devil you don't. I think that eventually China will be setting the price with gold and silver but that doesn't mean the price is going to rocket up.
 

Buck

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#5
Couldn't the Shanghai Exchange be bought out?
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Have to temporarily close their windows because some investor group came by, bought a hefty chunk of physical, put it on their plane and flew away.

Live windows can have their "loopholes" and weakness'

IDK, pricing in USD, for metals, has gone up, good for some, not so good for others

Still too early to tell but it's looking like it could be an interesting summer. Do the Chinese take their vacations when we do?
 

Weatherman

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Im still of the opinion the only thing that breaks the fraud of manipulation is someone standing for delivery and crimex defaults, its easy to do theres not much gold or silver there and Im quite suprised it hasnt been done with all the countries that hate the US, perhaps theS hanghai Gold Exchange was created to do just that. Im still not getting a warm fuzzy feeling about metals.
My Wild A$$ Guess is that China and Russia know that they can break the bank and end the Ponzi metals scheme by buying silver, because silver is too cheap and unavailable in size for large purchases. They do not want to do that yet because the current system continues to let them accumulate gold and silver at prices that will be seen as very low. When they decide to drive a stake into the USA, they will double down and shift their purchases to silver in volume that cannot be delivered. In a single day, the price of physical silver will explode higher. Oil and gold will rise substantially too, but the stock market and US$ will crash. An obviously bankrupt USA will not be able to afford its military machine, and that will be the start of TSHTF.
 

Unca Walt

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#7
Sadly, that is what I see, also...
 

Goldhedge

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FunnyMoney

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My Wild A$$ Guess is that China and Russia know that they can break the bank and end the Ponzi metals scheme by buying silver, because silver is too cheap and unavailable in size for large purchases. They do not want to do that yet because the current system continues to let them accumulate gold and silver at prices that will be seen as very low. When they decide to drive a stake into the USA, they will double down and shift their purchases to silver in volume that cannot be delivered. In a single day, the price of physical silver will explode higher. Oil and gold will rise substantially too, but the stock market and US$ will crash. An obviously bankrupt USA will not be able to afford its military machine, and that will be the start of TSHTF.
The game which TPTB and the CBs play is one of fleecing the people, not each other. They could do this, but they won't.
 

FunnyMoney

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#11
The metals prices seem to be more stable since Shanghai opened.

SC
Exactly what China wants. They want a transparent, uncorrupted (or at least less corrupted) bull run in rare and precious metals. They are the #1 miner of gold, the #3 miner of silver and have a 99% lock on the rare earth metals. Before any really big increases and long before any real mania phase they will lock in prices with the foreign miners with mines on their soil or they will buy them out. I do not expect them to nationalize them, the stealth threat of nationalization is enough.