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What a treat that those of us curious for the truth about silver and gold can so easily find the FACTS by following experts such as James Turk, Bill Murphy, Eric Sprott and other hard-money patriots. This past week a blockbuster report from Goldmoney's Alasdair Macleod reveals data from the Bank of England's own website suggesting it has been a major supplier of physical gold the past few months (since Feb 28th), the timing of which just happens to correlate with the price downdraft from the $1600 range. We know that the cartel's paper price attacks have unleashed a tidal wave of physical demand from around the world -- what many experts couldn't answer is from where the real metal has been mobilized to make deliveries (besides the ETF's of course). Would it surprise anyone that The Bank of England has been surreptitiously feeding the market to buy time their partners in crime to extricate themselves from the corner they've painted for themselves? Alasdair's report and interview below with Max Keiser is a must read/watch. Also below is a terrific synopsis of the unprecedented backwardization taking place in the gold market and some hard data from Team Sprott that suggests Indian investors are on pace to consume 1/2 the world's mined silver! Can you say blowback! Fortunately there is still some silver on the shelves should you wish to make like a thief-in-the-night and stack a few more ounces. Contact me for the very best prices and performance. Cheers!
Untangling Gold At The Bank of England
The lower price of gold spurred unprecedented demand for physical gold from everywhere, considerably in excess of ETF sales. The fact the gold price did not stage a lasting recovery tells us that someone very big must have been supplying the market from mid-April onwards, and therefore keeping the price suppressed. So now we have the answer. The BoE sold about 1,300 tonnes into the London market, which given the explosion in demand for physical at lower prices looks about right.
Sprott: Silver Is Winning India's "War on Gold"
The recent import numbers are staggering. While India imported 1,900 tonnes of silver in 2012, in the first five months of 2013 alone, imports have touched 2,400 tonnes. According to industry estimates, silver imports during the January-March quarter stood at 760 tonnes. Imports shot up to 720 tonnes in April alone, and in May they further swelled by 920 tonnes. Let's put these numbers in perspective, according to the Silver Institute, the world produced 24,478 tonnes of silver in 2012, implying that Indians have imported almost 10% of world production so far this year. If they continue to import at the same rate as they have in May, over the next 12 months India could import close to half of world silver production which is a truly staggering shift in demand for silver.
Turk: Gold Backwardation Explained
The duration of this backwardation is unprecedented in the 4+ decades that I have been following the gold market. Clearly, something noteworthy is happening, which I believe in turn is signalling that something significant may yet happen. An indication of what that event may be can be discerned from the definition of backwardation on the LBMA website: Backwardation - A market situation where prices for future delivery are lower than the spot price, caused by shortage or tightness of supply. A "shortage or tightness of supply" means that unless demand slackens or supply increases, the price must rise. Given the strong demand for physical gold at the moment, a decline in demand at current price levels seems unlikely.
Paul Mylchreest: Fractional Reserve Gold Banking System on Death's Door?
The July 2013 data shows that the US bullion banks increased their net long position to almost 45,000 contracts, while speculators (hedge funds?) increased shorts and reduced longs. Are the banks finally getting ready to squeeze the funds, or are they preparing for another big raid? Furthermore, Rabobank has followed in the footsteps of ABN Amro in suspending delivery of physical bullion to its clients. With rumors circulating that a major bullion bank is preparing to change its delivery agreements, the implication being that it too will suspend or curtail physical delivery, we are wondering whether the breakdown in the physical versus paper gold markets is approaching.
Happy To Help ..
Now is NOT the time to be complacent. Those that have been right about this market (Sprott, Sinclair, Turk) believe that these recent paper price attacks were a signal that the coming financial hurricane is closer than ever, and that physical silver an gold ownership is an absolute necessity. We currently have a healthy supply of gold and silver products, in all shapes and sizes. Please contact me for the very best pricing and discreet, informed service.
Paper-Pumpers Promote Gold
So with a fake-recovery in the U.S. and $1 trillion per year (of new, funny-money) pumping-up U.S. equities to record levels, what do we have? That's right: yet another U.S. market-bubble. What happens next? For the answer to that question, we need only refer to that Monetary Oracle, Benjamin Shalom Bernanke, when he proclaimed the U.S. "a Goldilocks economy" in 2007. Chairman Ben told us that U.S. markets, and U.S. home prices, and the U.S. economy itself would just keep going up and up forever. Of course that's not exactly how things turned out, is it?
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Sovereign Exchange International Ltd.
Steven Merrill, President
www.sovereignize.net
phone:
778.835.7667
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Engage a Rich New Audience; Reconcile to your Private Account; Settle for Metal at Any Time. The Sovereign Exchange was founded by Steven Merrill and a small network of individuals from across British Columbia with a vision to embrace Austrian economic principles and provide a sound and stable payment facility than be trusted for commerce and used to store wealth.
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