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From Jim Willie
Enjoy!
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FRAUD IN THE GOLD MARKET
◄$$$ CENTRAL BANKS ARE DEEPLY IN HOCK OVER GOLD BULLION LEASES. THE AMOUNT OF TONNAGE IS ASTONISHING. THE STORY IS TOLD, BUT THE EXTENT OF LEASE VOLUME IS WAY WRONG. IT IS MUCH HIGHER. THE CRIMINAL BANKERS DEEPLY SHORT WILL BE FORCED TO COVER, TO LOCATE THE GOLD, AND TO DELIVER IN ORDER TO AVOID PROSECUTION AND LAWSUITS. WHEN THAT HAPPENS, THE GOLD PRICE WILL RISE MULTIPLES HIGHER. $$$
Information has typically been very sketchy on this important topic. Most people in the investment community yawn in boredom when it is cited. Nevertheless, the foundation of central banks and the monetary system will always find its strength from the collateral to money. Dimitri Speck is a gold market researcher and GATA consultant. From research, he estimates says central banks have leased out 4000 to 6000 metric tons of gold, excluding the United States. He specifically mentions the Swiss National Bank and the Bundesbank as involved in the gold leasing. The Swiss and Germans had for decades been the most responsible among the bankers, but no more. Beginning in the 1990 decade, they were lured by the Rubin gang in the USDept Treasury into easy money with leveraged gold sales, from leased gold bullion owned by their respective governmental treasuries. It is hard for the Jackass to perceive such activity as anything but theft and treason. The GoldMoney interview link no longer functions (CLICK HERE) for some reason.
My best gold banker and trader source claims the number is grossly incorrect. He has made repeated claims that the total volume that central banks, AND BULLION BANKS, are short from leases is more like 40 to 60 thousand tons, ten times more!! He fully expects a day of reckoning from these criminal bankers deeply committed in fraud. The Mexican central bank purchase of empty vaults is a prime example When they must cover the shorts, when they must honor contract commitments, when they must go out into the marketplace and purchase gold, they will force the price upward by multiples. They will resort to raids like on the Libyan hoard, which is sizeable but inadequate. They will first depend upon the gold repositories in Switzerland, but in time that source will refuse them, since they own the Mother Lode, much of it obtained (pilfered) during World War II. The Venezuelan demand by Chavez is a prime example. The Swiss titans will permit the gold price to find its true value multiples higher, after the system disintegrates completely. That process has begun, as the sleepy in our society do not see it.
◄$$$ BEHOLD THE MEXICAN PHANTOM GOLD PURCHASE. IT SEEMS LIKE MEXICO PURCHASED 110 TONS OF GOLD THAT DO NOT EXIST. THE LONDON BANKERS PULLED OFF ANOTHER FRAUD. THE BANK OF MEXICO OWNS CERTIFICATES, NOTHING MORE. IT IS NO WONDER THE RECENT BIG PURCHASES BY EMERGING NATIONS HAVE HAD ZERO IMPACT ON THE GOLD PRICE. THE LONDON BULLION BANKERS RAN A SCAM THAT IS BEING EXPOSED. AS THE MEXICANS DEMAND GOLD, THE LONDON BOYZ WILL SCRAMBLE TO OBTAIN IT AT SOURCE. THEY WILL LOOK TO BASEL SWITZERLAND AND THE MARKET. $$$
The following story about Mexico been duped and conned reveals the nature of the grand gold fraud game. The London Bullion Market Assn is a highly fraudulent enterprise, which sells what clients believe is gold, but is actually paper certificates, mere claims. They often are lured into deals that are loaded with complexity on the delivery side, as in almost never. The fraud is compounded by vault fees for gold bullion not actually held. The LBMA banks are well known to possess only about 1% of all the physical gold they have allegedly sold and supposedly stored, accounting for their vast unallocated storage shenanigans. They are deeply committed to fractional schemes. They play games in shuttling metal and concealing the absence of inventory. Enter Mexico, whose central bank this spring purchased what they thought was 110 tons of gold bullion. Observers of market activity knew the big acquisitions had no impact on the market price. Like many IMF sales, along with those of Thailand and Kazakhstan and India, they had less of an effect than an observer would otherwise have expected. The transactions merely meant paper contracts shifted from desk to desk. A persistent and diligent Mexican journalist named Guillermo Barba has investigated and provided the answer to this conundrum. He posed a number of questions to the Mexican Central Bank about the gold purchases. The initial forays were blocked on grounds of secrecy. Barba persisted, went to higher management officials, only to learn that the bankers were unable to provide the quantity of bars purchased, the bar serial numbers, the exact weight of each bar, or any other measures that would indicate to someone familiar with the gold industry that certain specific bars were titled in the name of Banxico. They own gold paper certificates in a complex maze designed by London conmen bankers. They bought unallocated gold, probably sold and leased, otherwise known as vault air. This is the same modus operandi seen before.
By entering into such contracts, the Bank of Mexico became an unsecured creditor of the bullion bank involved in the deal. The deep error was in trusting the London bullion bankers. They was duped into buying an unsecured bond that gives claim not on gold, but instead the general assets of the selling bank. Banxico is not exactly clear what it has bought. It is almost certain that neither legal title nor the actual bars of gold have been transferred to Mexico. Pressure will surely come to produce the gold bars from London sources. The Boyz will probably flash a few bars like stolen watches, owned by somebody else. As a central bank, Banxico should certainly take physical delivery. Mexico should tolerate nothing less. Selling imaginary gold to an emerging market central bank in a quasi-fraudulent unallocated storage scheme is a bold ugly move. But it is a specialty of London criminal bankers. Instead of owning a valuable gold asset, free from counter-party risk, Mexico owns nothing but paper and obligations to pay vault fees. Behind the curtain is a dead London bank posing as viable, entering into contracts, forcing cash flow, paying out executive bonuses. The selling bank is likely insolvent, playing out fraudulent games before declaring bankruptcy. Many of the LBMA banks were kept alive solely by generous government bailouts from their national governments. They have constructed a daisy chain of liability and fraud. Many analysts believe that if one such insolvent bank officially go bust, perhaps they will all go bust. The process will turn to the bullion bankers running scams being compelled to buy gold in the market or to obtain it from a big source like Basel Switzerland. Unallocated gold in storage is a mere claim to unspecified gold in the future, not held in possession. In the end, top Mexican officials will force delivery, and the conmen will drive up the gold price in a scramble to avoid harsh publicity. Unfortunately, often the ashamed victims wish to keep the crime quiet.
The top Mexican officials have been made aware of the swindle. They will next work to overcome any embarrassment. Mexico will demand that all physical gold bars be immediately identified and delivered into a vault in Mexico City. If wise, this demand will be made before the European sovereign debt crisis grows worse and takes down a string of major banks. As the financial banks topple, the gold bankers will follow in the destructive fallout. Upon great pressure, especially if the Mexican bankers enlist some heavy weight friends for assistance like the Chinese, the London bankers will be forced to scramble for delivery like they did with Venezuela, who had more professional consultants involved. The London bankers will turn Switzerland again. It will be extraordinarily difficult for the bullion bank to locate at source 110 tons of gold. The London Boyz are themselves desperately short on gold, multiples more short than even the gold community believes. The Western central bankers will be very angry for the formally placed request, and even more angry for the harsh light of attention. They are all acutely aware that they will likely need to recapitalize not only their ailing dead banks, but recapitalize the USDollar and Euro currencies. These new revelations, though late in coming, make perfect sense. The top Mexican officials will force the issue with motivation. The net effect from the forced delivery is going to be higher prices. Thanks to Avery Goodman of Seeking Alpha for his reported story.
◄$$$ GOLD E.T.FUND HOLDERS DID NOT BAIL OUT OF GOLD HOLDINGS DURING THE RECENT AMBUSH. THEY JUST SUFFERED LOSSES. THE GOLD INVENTORY LEVELS TELL A MISLEADING STORY. LEVELS DID NOT CHANGE DURING THE GOLD PRICE DECLINE, SINCE THE EARLIER RAIDS HELPED CREATE CONDITIONS FOR THE DECLINE ITSELF. THE DUST SETTLED. $$$
The ambush of the gold market in September caused much confusion. Resolving the murky situation with respect to the GLD fund, otherwise called the SPDR Gold Trust, is not easy. Not to integrate fraud in the analysis means the analysis is shoddy and worthless. Amidst the second largest gold selloff since 1983, it would be easy to conclude that small investors dumped their GLD shares. Many probably did, especially those on margin (using borrowed money). Consider the data. The gold price fell 10% in four days in late September. A major price correction took place. The biggest institutional holders of the SPDR Gold Trust were thought to be liquidated. The Paulson fund held 7.6% of the big shady $65 billion fund as of June 30th, data show. However, the physical gold holdings by the SPDR dipped only 0.8% during the sudden decline, despite prices falling by as much as 15% over that period before rebounding.
The story told is that GLD shareholders did not bail out during the decline, since the inventory levels were steady. That misses an important point. The abusive management of the GLD fund relies heavily on shorting its own shares, removing inventory, and supplying it to the COMEX and LBMA. That makes the gold price vulnerable to decline. The shorting and raid took place BEFORE the price decline. After it declines, the damage is done and the inventory levels do not change, obviously. It is not a sign of investor fortitude and resilience as much as permitting the dust to settle after the fraudulent raids on inventory in previous months that created the conditions for the decline. The GLD fund remains the biggest fraud in the precious metals sector of the stock market. The movements by Paulson were on paper, like shares sold, not with metal in inventory already raided a couple months prior.
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Oct 21 2011, 09:32 AM
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WTH is going on with gold this days, crazy! 
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