Gold Manipulators are Desperate

Gold Manipulators are Desparate

From Egon von Greyerz(in reference to Paul Craig Roberts’s latest blog)

With virtually empty gold vaults, the central banks and bullion banks are now becoming desperate.

The action we are seeing in the paper gold market with the recent $50 takedown is yet more proof of the corner that the gold manipulators have put themselves into by having virtually no physical gold left.

A rising gold price is dangerous for the manipulators. This would inevitably lead to more physical demand, something that would be disastrous for the manipulators. As the holders of paper gold begin to realise that neither Comex nor the bullion banks or the Central banks have a fraction of the gold required to satisfy the gold paper claims, they will demand delivery. With the paper gold market being up to 100 times the physical market, there will of course be nowhere near the gold available at current prices to satisfy the outstanding paper claims.

The gold manipulators are going to lose this game. This is a certainty. The only question is when. They have managed to frighten investors by manipulating the price down substantially in the last few years. In spite of that gold has gone from $250 in 1999 to $1,300 today.

The reason why the manipulators now are desperate and that we are getting nearer to a cataclysm is that physical demand has been at very high levels in the last few years mainly due to substantial buying from Asia and in particular China. This has led to the physical gold in the vaults of the bullion banks and central banks migrating from the West to the East.

As both the world economic and geopolitical situation deteriorates this autumn, we are likely to see major changes in markets. As the dollar comes under pressure, the precious metals will be major beneficiaries. This will lead to the beginning of the end of the manipulation in the paper gold and silver markets and strongly rising gold and silver prices.

Dr. Paul Craig Roberts and Dave Kranzler have just published an excellent commentary, with some very telling charts, on how the gold market is being manipulated.

“The first two days this week gold was subjected to a series of computer HFT-driven “flash crashes” that were aimed at cooling off the big move higher gold has made since the beginning of June. During this move higher, the hedge funds, who typically “chase” the momentum of gold up or down, built up hefty long positions in gold futures over the last 6 weeks. In order to disrupt the upward momentum in the price of gold, the bullion banks short gold in the futures market by dumping large contracts that drive down the price and make money for the banks in the process.”…

Please go to PaulCraigRoberts.org to read the full ‘must read’ article.

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