Wednesday, October 12, 2016

40% Of World Production Sold In Paper Gold Market Last Week?!
Egon von Greyerz on what happened last week in the gold market: "I want to make it very clear that the selling we saw last week was another desperate attack by the BIS and some central banks, together with the bullion banks, to manipulate the gold market lower. We saw over 40% of annual production of gold being sold last week, which is 1,000 tonnes. And this is despite the physical market remaining very strong .. The sellers had no physical gold to sell so they conveniently dumped all this gold in the paper market. It would have been totally impossible for them to do this trade in the real gold market, which is only physical of course. Western Central banks have no physical gold of any quantity to sell. This is why they must fabricate paper gold out of thin air in order to dump it in the market. In total these banks officially have around 23,000 tonnes of gold. I doubt they even hold half that figure . What has happened in the physical market in recent years is that central banks have continuously depleted their physical stock by selling and leasing their gold with most of the buying having taken place in the East. This transfer from West to East is the reason why Western governments and central banks are desperate to keep the gold price down. Official gold is no longer held in 'safe' Western hands that are easy to control. Instead the gold has been acquired by nations and people who understand the value of gold .. So while the West is dumping paper gold, the East is buying physical. And this is exactly what happened last week .. But something very different happened in the physical market. Mutual funds and ETFs bought over 30 tons of physical gold last week. In total these funds have increased their holdings this year by over 46% or 900 tonnes to 2,840 tonnes. As we can see in the chart below, the buying by these funds has been strong all year. When gold corrected by $100 in May, their gold holdings continued to increase."
LINK HERE to the article

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