Has the collapse begun? Is paper gold selling in a panic to buy physical?

[mamboni]

The Basel Committee and the Global Banking Mafia

http://www.globalresearch.ca/the-basel-committee-and-the-global-banking-...
excerpt from article:

«Basel III»: the partial rehabilitation of gold

Before the 1970s, when the Bretton-Woods currency system existed in the world and there were not yet any «Basel» standards, everything was different. Banks were principally valued in terms of the amount of gold in their equity. The more gold there was relative to the total amount of capital and the total amount of assets, the safer the bank was believed to be. It was all simple, clear and logical. However, those good old times came to an end with the collapse of the gold standard and the IMF’s decision to carry out a full and final demonetisation of gold. Gold was demoted to a run-of-the-mill exchange commodity like oil, wheat or coffee. As a last resort, banks could use gold as an investment medium, but the metal stopped being regarded as a valuable financial asset.

Up to now, the Bank for International Settlements (BIS) has stored the gold in its «black body», so to speak. On the whole, the rules of the game were such that there was no benefit in banks hoarding their gold. At best, bankers regarded the yellow metal with the eyes of speculators buying and selling gold to make short-term profits.

Basel III has raised the status of gold dramatically. New rules have been provided to transfer gold to a bank’s tier 1 capital at 100 percent of its value. Banks now have the opportunity to replace their paper assets (primarily US Treasury bonds) with gold. Experts have calculated that such a practice will create additional demand for the precious metal to the extent of at least 1700 tonnes. There have been even higher estimations of up to 3000 tonnes. A number of experts believe that the development of Basel III was carried out with powerful lobbying from the Rothschilds, who have an interest in restoring the monetary status of gold in the world. For the last two centuries, the Rothschilds have had control over the main gold reserves, been involved in the extraction of gold and are «market makers» in the precious metals market. In September 2012, before the Basel Committee’s new standard had even come into force, the heads of one of the world’s largest banks, Deutsche Bank AG, which falls within the Rothschilds’ sphere of influence, made a public statement that gold had again been transformed from a commodity into money. The statement caused a painful reaction on the other side of the Atlantic Ocean, first and foremost in the US Federal Reserve System. The chairman of the Federal Reserve, Ben Bernanke, once again issued a standard statement that gold was far from the best type of money.

It is not difficult to see that Basel III is a blow to the US dollar and the American economy. America’s reaction was sufficiently prompt and harsh. At the end of last year, America’s monetary and financial regulators (the Federal Reserve system, the Deposit Insurance Agency and the Office of the Comptroller of Currency) reported that they had been sent a petition by leading American banks stating that the new Basel standards were crippling for lending and borrowing organisations. After this, the Federal Reserve System and other US financial regulators went to the Committee and announced that the introduction of Basel III in America was being postponed, and no date for transition to the new standard was given. At this point, European banks started to feel anxious, believing that if they began the transition to the new standard, they would find themselves uncompetitive in comparison with American banks. Therefore, they also refused to shift to Basel -III.

So who exactly has embraced Basel III since 1 January 2013? The list is not very long, with a total of 11 countries in all: Australia, Hong Kong, Canada, China, Mexico, Saudi Arabia, Singapore, Thailand, Switzerland, South Africa and Japan. It is also possible to add India here, which announced it would be joining Basel III from 1 April 2013. It is remarkable that the list contains just four countries from the «golden billion» zone: Australia, Canada, Switzerland and Japan.

more at the link.

[Serpo]

What could happen is that the countries like Germany once they get shafted out of their gold by Uncle Sam could go after private owners of gold, concluding that Germany's gold had to go SOMEWHERE, and maybe it was used to make Gold Eagles...so all holders of Gold Eagles are actually illegal holders of Germany's sovereign gold. Or something like that. Hell, it's likely the Feds will tell Germany that's EXACTLY what happened to their gold.

Sounds like they have stolen as much gold as they can because these people know that in the end all that will matter will be gold/silver.These crooks are accumulating the stuff and my guess its stashed in Israel so when there ponzi scheme collapses we will get a gold backed currency based on looted gold.

[mamboni]

http://2.bp.blogspot.com/-4GwHXx3aih...ebondfraud.JPG

[Serpo]

Gold Demand in Dubai Now Running at 10x Normal LevelsPosted on May 13, 2013 2The disconnect between the massive physical buying of gold versus the falling paper derivatives price has now become nothing short of extraordinary. While we have all seen the figures describing the gold buying frenzy in China and India, now we have some more detailed information about what is happening on the ground in Dubai. Incredibly, we find that since the April paper price crash, 50 tons of gold has been purchased, which is the equivalent of the entire amount of 51.8 tons purchased in all of 2012.One of the most comprehensive looks at the massive physical versus paper disconnect I have read is courtesy of Goldbroker.com, a company that specializes in physical bullion stored in Switzerland. I suggest checking out their latest Gold Market Report.

https://www.goldbroker.com/news/gold...lysis-239.html



Now from Emirates 24/7 we find thatubai demand for gold has been witnessing a massive surge since the price collapse of last month, with demand far outstripping supply.Various estimates suggest that demand in the past few weeks has been nothing short of astronomical, surging by 10 times the normal demand.According to the latest precious metals weekly report by Gerhard Schubert, Head of Precious Metals at local bank Emirates NBD, “Participants of the physical industry in Dubai believe that an additional 50 tonnes have been bought since the price crash in April. These sales figures are in addition to the ‘usual’ numbers and put a little perspective on the derivative side of the market.”The usual numbers that Schubert refers to are the same as the demand seen since April. According to World Gold Council data, total consumer demand for gold in the UAE (not just Dubai) stood at 51.8 tonnes for the entire year 2012, which means that demand was about 4.31 tonnes per month during last year.Compared with that, as Schubert mentions, Dubai demand in the past few weeks has been 50 tonnes plus ‘usual’ numbers, in effect reflecting the massive surge in interest that gold has seen in this past few weeks.“We have been running out of gold coins and bars even before they reach our stores,” he added. “There are people who are ‘pre-booking’ gold bars with us, and they collect it once new supply arrives,” he said. http://libertyblitzkrieg.com/

[Serpo]

from above link...

1) The Global Context : Nothing has Changed



- Protecting the Dollar :

Price manipulation has but one goal : protecting the value of the dollar in order to keep the Fed in control of interest rates and, thus, in control of US Treasury bonds and derivatives, largely held by the big banks.

If the Fed loses control of the dollar, which is bound to happen inevitably, since it’s printing billions of dollars every month, interest rates are going to go up radically, the value of US bonds will crash, the credit derivatives bubble will explode, taking with it the whole banking system.

Manipulating the price of gold serves the purpose, for the masses, of destroying the signal that would reflect the upcoming crash of the dollar and, by way of contagion, of the whole financial system.

Let me refer you to an excellent article by Paul Craig Roberts which explains in details how this recent manipulation took place and to whom it profits.



- The Fed continues to print $85 Billion each month. Japan announced the most ambitious quantitative easing plan of its history with an injection of $1.4 Trillion within two years. All this with no signs of any limitations on QE-type inflationary monetary policies.



- Holland’s Prime Minister has confirmed, as has a report from the FDIC, that deposits confiscations in Europe will be applied in future bailout plans, like in Cyprus. Trust in the European banking system is now at its lowest.



- Since 2007, the S&P has progressed by a mere 1% and, even after the last days’ correction, gold has performed over 100%.



- The gold spot price, this year, tumbled less than Apple shares, which lost 39% since its peak of last year.




2) The Situation on the « Paper » Gold Market



- Between Friday, April 12 and Monday, April 15, 1 million short contracts have been sold on the COMEX, i.e. 12% more than the annual world gold production.



- 150 tons of paper-gold were sold within an hour last Friday.

This sale was realised on the COMEX by a single entity, and it triggered a cascade of forced selling by investors totalling 500 tons of gold. One could logically ask the following question : Who has the financial power to realise such an operation? No trader ever sells such a position in one block at once.

Paul Craig Roberts: « Who has the capacity to sell the equivalent of 500 tons of gold on the markets for an amount of $24.8 Billion (or 16,000,000 ounces of gold, about 15% of world global production)? Who would own so much gold, enough to cover eventual delivery requests on those naked shorts?

Also, nobody sells this much gold all at once; such a sale is done progressively so as not to crash the price and, thus, limit the losses.

As a matter of fact, this massive sale entailed a $1.168 Trillion loss. Who can afford to lose such an amount, but one who can print it? »

His answer : Only the Fed can finance such an operation and tolerate such a loss, since it can print money.

Parenthesis : The CFTC, supposedly in charge of regulating derivatives, notably those on gold and silver, authorises enormous concentrated short positions (thus taken by one or more entities) that perturb the normally free price determination mechanism. There could not be any manipulation of gold or silver if the CFTC were doing its job of regulating the derivatives.



- The COMEX and the LBMA could be close to defaulting.

The COMEX functions on a fractional basis. There is not enough physical gold and silver in the COMEX inventories to guarantee the convertibility of all contracts.

Let’s recall that Kyle Bass, one of the most important hedge fund managers in the USA, who had correctly anticipated the bursting of the subprime bubble, confirms, in this video, that the COMEX does operate on a fractional basis. He decided, a few years ago, to ask for delivery of his gold held via his fund, because he didn’t have faith in the COMEX capacity to make good on future delivery requests. It would only take about 5% of contract holders asking for delivery to cause the COMEX to default.



- Available physical gold on the COMEX and the LBMA is dwindling.

And this is happening at the fastest pace since the start of the bull market in 2001. Delivery requests on the COMEX for the last 90 days represent 2 million ounces, or $3 Billion, as shown by this graphics.

Trust in the « paper » gold markets is waning. Investors do not want to be exposed to counterparty risk anymore. Either the COMEX or the LBMA, or both, will default in the coming months. The situation is untenable at the rythm at which investors are asking to convert their contracts to physical gold or silver.

Which has Andrew Maguire, a specialised gold trader in London, saying that this last crash’s objective is also to bring the prices down before an eventual default announcement from the COMEX or the LBMA. Read the interview with Andrew Maguire.

This default will trigger a rapid rise in prices and what Egon von Greyerz anticipates as the most important short squeeze in history. Read the article by Egon von Greyerz.



- The « paper » gold price in Yen is at its highest in 33 years.

No wonder, with Japan’s most ambitious quantitative easing plan of its history. In less than two years, Japan will inject the equivalent in Yen of $1.4 Trillion, an unprecedented amount in the history of Japan.

Facing this inflationary threat, Japanese institutional investment funds, and Japanese people as well, are starting to migrate toward physical gold at the time that the speculators’ short positions (see COT report) on gold and silver are at a record high.

This global migration toward physical gold and silver is threatening a little more each day to trigger the explosion of the COMEX and LBMA markets. A single delivery default on these markets would make the price of gold rocket. The situation for the long term is untenable on these markets. The physical gold to cover delivery requests from contract holders is simply not there, it does not exist.




3) The Situation on the Real Physical Gold and Silver Markets



- China took advantage of last Friday’s crash to acquire 50 tons of physical gold.

Andrew Maguire, a trader on the physical gold market in London, has confirmed, in a recent interview, that China had acquired 50 tons of gold last Friday, right in the middle of the « paper » gold crash.

Visibly, China, and a host of other countries, are taking advantage of each price correction to acquire physical gold.



- The Two Most Important Bullion Dealers in the USA (Amark and CNT) Are Out of Silver.

Following the crash of these last few days, a massive demand has taken place in the USA and around the world for physical silver. Just the fact that this has virtually no effect on the « paper » silver spot price goes to prove that the « paper » silver market, just like gold’s, isn’t real anymore.



- Important Premium Hikes on Silver Coins :

Silver dealers pay up to $3/oz commission to acquire (when possible) silver coins, like the Silver Eagles. This commission comes before the one charged to the customer. So, at the end, the customer might pay up to 10-12% over the spot price for the coins. Which means that either producers or silver coins holders are not ready to sell on the basis of the « paper » spot price, and that the two markets are disconnected.



- A landslide in one of the mines exploited by Rio Tinto, in Utah (the second-most important mine in the USA), causes the equivalent of 16% of the US annual silver production to disappear.

This event occurred last Wednesday, before the crash. The mine will probably be closed for a few years. Here is the media release.

Let’s ask this question : How can it be that such a reduction in world silver production hasn’t had any effect on the prices?





I’m maintaining my long-term analysis and continuing to recommend holding physical gold and silver for protection against coming events : bank failures, inflation and deposits confiscation. There is no chance at all for our actual monetary system of non-convertible currencies to last for a very long time.

These corrections are hard to take, but multiplying one’s capital in a context of disinformation, currency war and price manipulation entails some volatility. Investors must get a global understanding of the current events and trust their own interpretation of the situation.above link.....

[Serpo]

Kaye: “The paper gold price has been driven well down. We’re nowhere close to when gold peaked above $1,900. We’re in the low $1,400s as I speak now, Eric.



So price has gone down, but what about volume (in gold)? Well, I can tell you that volumes in China year over year are up four to five times
. I can tell you that volumes in Thailand, a similar amount (to China, up four to five times).










Volumes in India, despite an increase in taxes, and despite the fact they are making it more difficult for average people in India to acquire gold, all of the dealers that we talk to who deal into India tell us it’s the same experience as China. It’s up four to five times....



Continue reading the William Kaye interview below...



http://kingworldnews.com/kingworldne...peimage_22.jpg








http://kingworldnews.com/kingworldne...les/stroke.pnghttp://kingworldnews.com/kingworldne...s/stroke_1.pnghttp://kingworldnews.com/kingworldne...s/stroke_2.pnghttp://kingworldnews.com/kingworldne...s/stroke_3.pnghttp://kingworldnews.com/kingworldne...s/stroke_4.pnghttp://kingworldnews.com/kingworldne...s/stroke_6.pnghttp://kingworldnews.com/kingworldne...s/stroke_7.png





http://kingworldnews.com/kingworldne...image_22_1.jpg





“Now that’s really interesting. Show me another bear market where demand goes up as prices collapse. You can’t. It hasn’t happened in history. So what that confirms is this (drop in the price of gold) is all mythology.



The Fed is the only entity that would actually have both the financial wherewithal, and the ability to totally disregard risk to achieve a strategic agenda of reinforcing the notion that the US dollar is a solid currency, which it is not. And deliberately suppressing, with their agents the bullion banks, the price of gold.










... It strongly suggests the central banks themselves do not have unencumbered, eligible, deliverable gold. Because if they did they would have a huge incentive, instead of engaging in the outright manipulation of the paper market that’s taking place, to simply lend out that gold to agent banks like ABN AMRO so that the system stays in place, so that no one has to default and create the potential for a buying panic.



http://kingworldnews.com/kingworldne...I%205%3A14.jpg





So the fact that didn’t happen, and this manipulation occurred in its place, tells you that there just isn’t deliverable gold in the system. This crash occurred, the single event of great importance, and I think Andrew (Maguire) talked about it in the interview with you, was the sudden appearance on the day that prices collapsed of a naked short sell order for 400 tons of gold.



Who has 400 tons of gold? Goldman Sachs reportedly entered that order, but they don’t have 400 tons of gold. Who has 400 tons of gold? If 400 tons of (physical) gold is just lying around somewhere, why couldn’t ABN AMRO borrow it? Why did they have to default?



That was the first sign that this was the new strategy, and we (central planners) are going to engage in the wholesale raid, the wholesale manipulation of the precious metals market. We’re just going to scare the public out of this thing, destroy investor psychology, and we the elite, the insiders, will acquire more at these cheap prices. And if the downside is there is a redistribution of tangible wealth from West to East, so be it. So to sum up, Eric, this is a criminal conspiracy.”


http://kingworldnews.com/kingworldne...ld_Market.html