Monday, August 19, 2013

stop playing, where's my gold at?

endoftheamericandream | The demand for physical gold is exploding all over the world, and bullion banks are now experiencing a supply crunch that is absolutely unprecedented.  As physical demand continues to rise, the massive Ponzi scheme that the bullion banks have been engaged in is going to become increasingly obvious, and at some point the lack of physical gold is going to break the back of the paper gold market and we are going to see the price of gold go to levels that we have never seen before.  You see, the truth is that the central banks of the world and the bullion banks have made “paper promises” that vastly exceed the amount of actual physical gold in existence.  This kind of scheme works fine if everyone does not come asking for their gold at the same time.  Unfortunately for the ones running this scheme, people are now starting to ask for their gold back and it is causing huge problems.

It started earlier this year when Germany asked for 300 metric tons of their gold which was supposedly being held at the New York Fed.  If the New York Fed really did have as much physical gold as they claim that they do, that request should have been no problem.  Instead, the Germans were told that it would take seven years to fulfill the request.

At that point, alarm bells started to go off in financial circles all over the planet.  People all over the globe began asking for their gold back, and now this is causing serious stress for the bullion banks.  The following is what Hong Kong hedge fund manager William Kaye told King World News the other day…
There are serious strains in the (gold) system. I’ve never witnessed such a serious strain in my lifetime in terms of the backwardation of gold, and in terms of the lease rates being negative for such an extended period of time. This suggests that there are two forces at work: One is that there are serious strains in the system — that the bullion banks are struggling to come up with the physical gold for spot delivery that the market demands.
Right now the bullion banks are experiencing unprecedented difficulties coming up with the physical gold and physical silver that they are supposed to have.  Evidence of this supply squeeze is starting to pop up all over the place.  Some of this evidence was summarized in a recent article by Jim Willie