The Bottom May Be In! NY Times Hit Piece on Gold

[Steal]

made a couple calls. Want to make a large purchase. Inventories are down, but process of 're-stocking' the shelves is happening. No shortage current. Just due to high demand, shelves got zapped. Personally am waiting for short cover rally to fizzle out and see what happenes. You all think after putting everyone underwater who bought since late 2010, they gonna bring them back up ? or make them suffer a bit more ? My long term price target to buy phys was 24.05, it got smoked and yet I wait.

[Plastic]

Personally, I expect that since a whole trainload of longs got wiped out due to margin calls that the price will soon turn sharply to the upside to wipe out the margin shorts as well, bankers rape from the ass end as well as the front.

[gunDriller]

i don't think these hit pieces are a flash-in-the-pan.

they're going to be printing this BS probably for the rest of the year.

well, probably, forever.


one place i found where you can get market price quotes without dealing with Yahoo/ Bloomberg/ Barry Ritholtz BullShit is the left-over financial charts website from Michael Ruppert's old website.

they never took it down, it has a good summary of currency markets, metal markets, stock markets, etc.

http://www.fromthewilderness.com/live_charts.shtml

and for Dr. Copper

http://www.kitcometals.com/

[mamboni]

I think the public run on silver is very real and very durable. I don't think that the suppliers will be able to get in front of this demand unless the silver paper price turns much higher - and the bankers will not let that happen. People should keep the pressure on by placing orders for silver, even if delivery is not for 4-8 weeks. There is blood in the water, banker blood; this means that this paper silver price is a gift from the gods - because we are amidst a major silver physical supply squeeze with no advent of increasing supply coming on line any time soon.

As for gold, the fate of gold is now in the hands of the big money people. It now appears certain that a run on the gold bullion banks is in progress. This is the very thing that will cause a default at COMEX and LBMA and send the gold price into the stratosphere. Silver will follow gold. This is really big and again, there is no escape for the bankers who are short thousands of tons of gold that they leased and sold illicitly for years. Jim Willie, via industry contacts, had asserted this was the case for several years. It appears he has been vindicated.


From KWN: Today whistleblower Andrew Maguire spoke with King World News, providing even more details by elaborating on the events surrounding the LBMA default. Maguire, who recently appeared in the extraordinary CBC production titled, “The Secret World of Gold,” also told KWN about the ensuing panic which has taken place in the aftermath of the LBMA default. Maguire described entities as “panicking.” Below is what Maguire had to say in part II of his remarkable and exclusive interview.

Eric King: “Inside that piece (“The Secret World of Gold”) you talked about gold leasing and the mechanics of that. Jim Sinclair wanted me to bring that up to you, the gold leasing, the mechanics of it, can you talk about that?”

Maguire: “We did a piece on King World News about it, about the LBMA bullion bank default. Stepping back, how did they get to such a mismatched (trading) position where they had so little gold and silver in their inventory to be able to back up people coming and asking for their gold and silver? They never anticipated that this would happen....

“But what had happened was, over the years, basically what you would do is you would sell gold, sell silver, financed almost for nothing, take that money and invest it. Then, obviously incentive was there because it had built up to such a large (short) position, they were so over-collateralized, that it was important to defend the price (of gold and silver) from rising because they didn’t actually have the physical.

What’s happened now is they are in a position where that leased gold is being asked for and they don’t have it. I know of a very large client who actually turned up for his bullion, was refused his bullion, and told he would be settled in cash. I felt I should go public with that (on KWN).

...(ABN AMRO) really was the tip of the iceberg. What happened was that we saw that first bullion bank create the first visible default of the LBMA fractional reserve system. I hear of other clients who are now panicking, and what happens? You get an official intervention. That what it (the takedown in gold and silver) was all about.”

Eric King: “Andrew, you were getting contacted by people all over the world after KWN did the interview with you regarding the LBMA default situation.”

Maguire: “I must say I had some really distressed emails. What they were asking is, ‘What should I do?’ All I could say to them is, ‘If I had physical stored in any bullion bank related warehouse, whether it be COMEX or LBMA, I would remove it right now.’

We all know that ‘default’ will not be called a ‘default.’ It will be settled with cash. I do not believe for a minute that the Fed can’t print a few billion (dollars), whatever it costs, to bailout the bullion banks for cash. Why wouldn’t they just bail them out with cash? It’s just an electronic keystroke. People will be sitting on the sidelines and they will not get any physical (gold).”

Maguire also added: “It’s been several years since I’ve taken any delivery from the COMEX, or any of my clients have. But I do remember on those prior occasions it was already difficult to get your physical out.

Arranging to actually have the audacity to back up a Brinks truck to the COMEX warehouse door, it just incurred every defensive tactic you can imagine. There were unreturned phone calls. There were questions as to, ‘Why do you want this physical?’

That was a few years ago, so just imagine how many more obstacles there are now. And obviously we are at the point of a critical default unfolding, so I would think think it’s going to be difficult to get your physical out now.”



KWN-
"As Russia, or China, why not just pick it (gold) up and ship it over? It’s quicker (than mining it). So you’ve reached a point where the lines cross, and the physical market diverges. I have checked the numbers now and we are very close to 1,000 tons of deliveries just this year into Shanghai.

That does not account for the 25 tons we are seeing everyday through London. And that does not account for what is being directly purchased through producers. So there comes a point where you get such a discount that this demand increases exponentially. And we are not just seeing the central banks and the sovereigns coming in, we are also seeing some very smart money, I’m talking investment money, coming in (to the gold market as well).

So for them (the central planners) to try to continue to take this (market) down, I think the lines have crossed to the point where they are not going to be able to actually suck out enough paper discount to offset what they are losing in physical.”

[Sparky]

...
This is the type of nay-saying that is needed to establish a bottom. It won't happen immediately, as there needs to be a period of time where these types of bold proclamations (e.g. Goldman Sachs) look correct. That's just the way it seems to work. I think the bottom happens in July, give or take a month.

Important follow-up to this today, as Goldman has announced they have closed their short positions. Let me give you an interpretation of their statement, in two parts.

'We have closed our recommendation to short COMEX Gold, as prices moved above the stop at $1,400/toz. We have exited the trade significantly below our original target of $1,450/toz, for a potential gain of 10.4%. The move since initiation was surprisingly rapid, likely exacerbated by the break of well-flagged technical support levels."

This part of the statement is Goldman telling everyone they were right, and that we should listen to them when they speak. As I said previously, when they make a call like this, it's very important that they look right, which this statement is verifying. Now for the second part:

"Our bias is to expect further declines in gold prices on the combination of continued ETF outflows as conviction in holding gold continues to wane as well as our economists’ forecast for a reacceleration in US growth later this year."

This part of the statement is telling others to continue to sell their gold position, so that Goldman can begin accumulating a long gold position at artificially low prices. Again, they need to look correct for a while. This is very consistent with my expectation that we won't see the consolidation bottom for another month or two. Once they have accumulated a low-priced base, they will be willing to drive the momentum upward if full force.

Remember, all markets are manipulated in four stages:

1) Slow accumulation at low price and low volumes
2) Price mark-up on high volume
3) Slow distribution at high price on low volumes
4) Price mark-down on high volume

Stage #3 took place over the long period from September 2011 to March 2013. Stage #4 is furious, and has taken place this last few weeks. With the announcement by Goldman, they are returning to Stage #1. They want to begin the accumulation phase as quietly as possible before price turns upward.