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BookmarkRight now I’m focused on two things: The first is that final Chinese demand as approximated by the gold that goes through the Shanghai Exchange now exceeds estimated global mining production. We had been talking late last year when China had gotten to the point where they were buying roughly 100% of mining production, but now they clearly exceed it.
This should bring forward the date at which the gold suppression scheme comes to an end.
The second thing I’m focused on is what we’ve been discussing for the last several months is now starting to appear in the mainstream media. I think it was on Saturday that the Financial Times ran a piece in which the basic theme was that the open interest, the contracts that are outstanding and could theoretically could be converted into physical gold, greatly exceed Comex inventories.
For the Financial Times to notice something so obvious after intentionally ignoring the truth about gold manipulation is pretty remarkable. The writer basically concluded that people who own these contracts should stand and take delivery. Meaning, they should basically call the bluff of this phony paper gold market.
Again, that’s something that would resonate with not only what we have been talking about but what most KWN interview subjects have been talking about as well. But for it to appear in the mainstream media is something that should cause people to reflect. Why are they suddenly coming around to taking an interest in what is actually happening? This is directly opposed to, by their silence, supporting a totally different agenda in which the suppression scheme could be prosecuted under the cloak of their anti-gold propaganda.
One possibility that comes to mind is we are very close to the end. Because this is the type of behavior that you might expect to see if there is a general recognition by the powers that be that the suppression scheme can’t realistically be prosecuted that much longer. So why not begin to seep into mainstream consciousness what’s really going on in order to create some doubts and attempt to try to restore some modicum of credibility to mainstream media? I believe it is those twin objectives.
So the question is: What are the implications? One implication is that by seeping into the consciousness of mainstream investors that the Comex market, and the market of unallocated accounts at these big bullion banks, all of these paper promises at the end of the day aren’t worth the paper they are printed on. People are never going to see the gold that supposedly underlies those promises.
This is something that the readers and listeners of KWN already recognize, Eric, but there are many people who don’t recognize this. And by getting this information into the mainstream consciousness, it could be a catalyst, and it could well be the purpose, to cause people who do have exposure through these paper contracts to lose confidence in these contracts.
One of the motivations of that would be that they would be motivated to sell these contracts and shift the proceeds they receive into physical gold held outside of the banking system. So we’ve talked about a pathway by which we reach the end game, which means gold will go bid-only, and I think it will be later in 2014.
One of these pathways is that because of this enormous demand for physical gold, the physical market essentially usurps this corrupt paper market and we begin to reset much higher, at which point a force majeure gets declared on the Comex, and in these unallocated bullion accounts people get forcibly settled for cash. Then there would be a huge scramble for physical gold as it goes bid-only.
Let’s discuss a another scenario with this sudden interest in the truth on the part of the mainstream media. This second scenario consists of investors losing confidence in these paper gold contracts, and coming to recognize they are never going to get the gold that underlies these contracts — that it’s a phony and manipulated scheme.
At that point there would be enormous paper selling pressure and the paper gold market could absolutely collapse. If there is a wholesale loss of confidence, the market could be flooded with these phony pieces of paper. This is another scenario by which we would reach the end of this scheme. This would mean a collapse in the paper gold market altogether, meaning the price of paper gold would collapse as the paper is recognized as worthless and the physical market would take over as the true pricing mechanism.
