GERMAN GOLD ESPECULATORs,
MANIPULATORs & CONSPIRATORs
GERMANY HAS RECOVERED A PALTRY 5% TONS OF GOLD FROM
THE NY FED AFTER ONE YEAR
Submitted by Tyler Durden on 01/19/2014 [only extracts]
On December 24, we posted an update on Germany's gold
repatriation process: a year after the Bundesbank announced its stunning
decision, driven by Zero Hedge revelations, to repatriate 674 tons of
gold from the New York Fed and the French Central Bank, it had managed to
transfer a paltry 37 tons. This
amount represents just 5% of the stated target, and was well below the 84 tons
that the Bundesbank would need to transport each year to collect the 674 tons
ratably over the 8 year interval between 2013 and 2020.
The release of these numbers promptly angered Germans, and
led to the rise of numerous allegations that the reason why the transfer is
taking so long is that the gold simply is not in the possession of the offshore
custodians, having been leased, or worse, sold without any formal or informal
announcement.
However, what will certainly not help mute "conspiracy
theorists" is today's update from today's edition of Die Welt, in which we
learn that only a tiny 5 tons of gold were sent from the NY Fed. The rest came
from Paris.
As Welt states, did the US sell Germany's gold? Maybe. The official explanation was as
follows: "The Bundesbank explained [the low amount of US gold] by saying
that the transports from Paris are simpler and therefore were able to start
quickly."
ESPECULATIONS
Supposedly, there was another reason: "The bullion stored in Paris already has the elongated shape with beveled edges of the "London Good Delivery LGD" standard. The bars in the basement of the Fed on the other hand have a previously common form. They will need to be remelted [to LGD standard]. And the capacity of smelters are just limited."
So... New York Fed-held gold is not London Good Delivery, and there is a bottleneck in remelting capacity?
Furthermore, Welt goes
on to "debunk" various "conspiracy websites" that the
reason why the gold is being melted is not to cover up some shortage (and to
scrap serial numbers), but that the gold is exactly the same gold as before.
Finally, to silences all skeptics, the Bundesbank says that "there is no
reason for complaint - the weight and purity of the gold bars were consistent
with the books match." In conclusion, Welt reports that in 2014
"larger transport volumes" can be expected from New York: between 30
and 50 tons.
========
[GOLD MANIPULATION PROFITEERS]
THE POTENTIAL EXISTS
FOR AN EPIC SHORT SQUEEZE IN PHYSICAL GOLD
Markets are there to extract money from inexperienced,
gullible "traders". OK, some are experienced and just careless, but
many are newly minted dreamers, set out into the world by some seminar
"guru" who convinced them they could day trade their life savings
into a small fortune. You know what they say about small fortunes, right?
Financial Darwinism!
Paying attention to "numbers" and trading them
intelligently is far superior to chasing unqualified love from long-legged
women [those who pay for supercars and penthouses].
The numbers Tred shared with me were: [Tres Knippa is a broker and trader on
the floor of the Chicago Mercantile Exchange (CME)].
- -89,756.78 - This number represents the overnight movement of registered gold OUT of inventory at Brink's, and INTO Eligible Inventory at J.P. Morgan.
- 370,137 - This is the number of ounces of Registered Gold for delivery.
- 300,000 - This is the number of ounces, represented in gold contracts, that any one entity can own (3,000 contracts).
- 81% - The percentage of supply at the Comex which would be exhausted should just ONE entity put on a "Limit Long" position, AND demand delivery.
These should be very scary numbers
for the folks running the Comex, but even scarier numbers for anyone not
holding physical gold and trading paper!
Tres also shared the chart below
with me. This is a graphical representation of the amount of paper gold versus
the Registered Gold available for delivery: [Open the website above to see the chart]
Zerohedge also posted a neat little story about the
German's only having recovered a paltry 5% Tons of their gold from the US,
after a year! You can read all about it here. In short they have
repatriated just 37 tons of the 674
tons they have promised to repatriate.
Looking back he was right and I was
wrong. The USD has indeed performed better, and likely will continue to
outperform in 2014. Although up to this point it's been more a factor of a
breather in the gold bull market than USD strength.
I'm a gold bull, not a gold bug. I
do believe that the long term trend for gold is bullish. This current setup
clearly has the potential for some fireworks. Maybe nothing happens (doubtful),
but the risk/reward setup is rather favourable from where I sit. Heads I win,
tails I win.
Whatever you choose to do with the
above information, I encourage readers to never ever confuse "trading for profit" with
investing. I'm happy to trade futures contracts, buy gold in the FX
spot markets - essentially trade paper in one form or another, but I would NEVER let that obfuscate the
fact that I need to hold PHYSICAL GOLD as protection. Timing a profitable
trade is like passing gas, it is largely a matter of knowing when it is
inappropriate, and acting accordingly!
THE MANIPULATION RULE
Grant Williams, the prolific editor of Things That Make You Go said it perfectly in his latest
missive:
"Gold is a manipulated market. Period.
"2013 was the year that
manipulation finally began to unravel.
"2014? Well now, THIS could be the year that true price
discovery begins in the gold market. If that turns out to be the case, it will
be driven by a scramble to perfect ownership of physical gold; and to do that
you will be forced to pay a lot more than $1247/oz.
Count on it."
Think about this as a parting
thought. Would
the Comex, if under pressure for delivery, ever void your positions in order to
"stabilise" the market? Or, would
that just not be palatable in the Land of the Free? As Grant said above, "Count
on it."
For the traders out there, Tres shared with me another anomaly in the gold markets
which he's been trading successfully for the last couple of months. I'm in the
process of translating this from "trader speak" into English, and it
will be sent out to members of our currently complimentary Trade Alert service shortly. You can get access to this and more by
dropping your email here.
- Chris :
"I firmly believe that in the years to come, when we
look back at the great game being played in gold, we will pinpoint January 16,
2013, as the day when it all began to unravel.
"That day, the day the Bundesbank blinked and demanded its bullion, will
be shown to be the beginning of the end of the gold price suppression scheme by
the world's central banks; and then gold will go on to trade much, much
higher." - Grant Williams
========
HERE A KIND
OF ESPECULATION spread by GOP Greg Hunter
FED-THEY DO NOT HAVE ANY MORE GOLD
http://usawatchdog.com/fed-they-do-not-have-any-more-gold-paul-craig-roberts/#more-11652
Former Assistant
Treasury Secretary Paul Craig Roberts is making some bold new claims about the
Federal Reserve and its official government gold holdings. Dr. Roberts
contends, “They don’t have any more gold. That’s why they can only
give Germany 5 tons of the 1,500 tons it’s holding. In fact, when Germany
asked for this delivery last year, the Fed said no. But it said we will
give you back 300 tons . . . . So, they said we will give you back 20% of what
you trusted us to keep for you over the next seven years, but they are not even
able to do that.”
Dr. Roberts goes on to
say, “The stocks of gold at the Bank of England seem to be
disappearing. The stocks of many of the gold trusts, such as GLD, are
being looted . . . all of this gold is disappearing into Asian markets.
The entire West is being drained of gold.”
According to Dr.
Roberts, this is an inflection point for the gold market. Dr. Roberts
says, “The reason is: the ability to supply large amounts of gold to the
bullion dealers to sell has diminished with the supply of gold and
silver. What the Fed did was turn to massive ‘naked shorts’ of gold
futures contracts.
They don’t have the real
gold . . . so they come in and dump contracts, say in a period of 6
minutes, that are three times the amount of gold COMEX has to make delivery. .
. . So, it drives down the price of gold. That’s how they got the price
down from $1,900 to $1,250.”
Roberts contends that
America’s gold is “mainly gone.” That’s right, a former Assistant
Treasury Secretary who is the father of Reaganomics, says, “They obviously
don’t have any because, if they did, they would have given Germany’s gold
back. If they had any, they would let people audit the vaults.”
Dr. Roberts warns, “The
point is the ability to continue selling these ‘naked shorts’ is now
disappearing because there is no gold left to back them up. . . . None of these
EFT’s has the gold to back the shares. The ability to continue looting
them in order to make good on gold deliveries is running out. So, this
will prevent the Fed from selling ‘naked shorts’ to protect the dollar from its
policy of quantitative easing. That’s what’s it’s all about.
You can’t print $1,000
billion new dollars every year without causing other holders of dollars to
wonder about the value of the money and to seek a way of getting out of
it. China has been doing that by going into gold.”
On gold holdings, Dr.
Roberts argues there are two big reasons why he says, “I don’t think they
have any.” Roberts says, “There is no reason for partial delivery
if you have the gold. There is no reason to sell all these naked shorts
if you have the real gold you can dump on the market.”
Roberts predicts, “If
people in the West try to move from dollars into bullion and there’s not any to
speak of, then you would see a massive rise in the price.” Dr.
Roberts also predicts, “I think, this year, you are going to see a further
downturn in the economy. The signs are not only that we do not have a
recovery, but it’s going to get worse. . . . Christmas sales were very
negative. There’s no growth in people’s income and no jobs.
So, if the economy goes
down further, what does that mean? It means the deficit widens. It
means they have a greater debt ceiling lift. They have to have a bigger
debt ceiling increase, and all of this will alarm the world. They’ll say,
good heavens, they already had a trillion dollar deficit. Now it’s gone
up, and the Fed can’t stop the quantitative easing without the stock and bond
market collapsing. The banks’
solvency will become an issue.
So, the world is
watching a bigger deficit, more printing of money, and they are likely to start
dumping dollars. When they do that, they’ll say ‘gold, I want
gold.’ There’s not much supply to meet demand, and the price has to
escalate. So, I wouldn’t be surprised if that shows up this year.”
Join Greg Hunter as he
goes One-on-One with economist Dr. Paul Craig Roberts.
WATCH THIS VIDEO: http://www.youtube.com/watch?feature=player_embedded&v=p0rGaWcRiNo
After the interview, Dr. Roberts said, “Here’s another heads
up.” He told me he’s going to post an article from an anonymous
insider that will address the question of “estate recovery” contained in
Obama Care. Dr. Roberts charges, “The Affordable Care Act is not
affordable and doesn’t provide care. It’s a way to loot the poorest
people and steal whatever assets they have.” Roberts says the
upcoming article will show, “The poorest who are supposed to be helped are
herded into Medicaid, where any property they own is subject to estate recovery.”
Related Posts:
- Dr. Paul Craig Roberts-U.S. Markets Rigged by its Own…
- If Bullion Were Not a Threat Government Would Not Attack It-
- Paul Craig Roberts-Obama Could Govern as a Dictator
- Fate of Dollar is the Fate of U.S. Power-Dr. Paul Craig…
- Syria will Lead to World War III and it will be Nuclear-Paul
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