With the rising of the Shanghai Gold Exchange over inwards Asia, at that topographic point are right away 3 top dog gilt markets performance globally. But solely 1 is an actual physical gilt marketplace position since both London (LBMA) as well as New York (Comex) are newspaper gilt based derivative markets.
For years organizations similar GATA have got sought to test cost manipulation as well as the usage of bullion banks past times the Fed as well as the the U.S.A. Treasury to proceed downward the newspaper spot cost to protect these derivative contracts. And this proof of manipulation was live on validated before this twelvemonth amongst a world mia culpa past times Deutsche Bank that they as well as others have got been purposely manipulating gilt prices through the usage of naked shorts dumped periodically onto the gilt markets.
So fifty-fifty amongst these novel disclosures of cost fixing as well as illegal marketplace position trades, 1 has to enquire why are the key banks as well as regime finance agencies yet continuing to manipulate markets without a attention that they would live prosecuted, as well as most importantly, is at that topographic point an underlying purpose behind such mechanisms?
The answer may prevarication inwards a novel interview discussing information derived from GATA analyst Adrian Douglas who suggests that the existent gilt cost should live good over $50,000 per ounce to backstop the $14 trillion inwards unusual held debt, as well as that the xl -100:1 newspaper contract to physical gilt ratio currently used inwards the Comex is a agency to proceed the newspaper cost downward piece protecting the debt held past times foreigners, which are using held gilt equally collateral denominated at its truthful value.
Silver Doctors: GATA's Adrian Douglas has done extensive inquiry into the newspaper manipulation of gilt as well as silver. But the precious metals footing changed overnight when Jeffrey Christian from CPM Group made this startling admission at the CFTC hearing inwards March.
Jeffrey Christian: And you've heard people out at that topographic point maxim it today, that at that topographic point is only non that much physical metallic out there. There isn't. But equally the physical marketplace position uses that term, at that topographic point is much to a greater extent than metallic that that... at that topographic point is a 100 times to a greater extent than metallic (paper metal).
Precious metals are fiscal assets, as well as similar currencies as well as T-Bills as well as T-Bonds, they merchandise inwards multiples of 100 times the underlying physical.
Silver Doctors: Adrian Douglas's inquiry leads him to conclude that the outstanding newspaper metals manipulation inwards gilt is 45:1. Meaning at that topographic point are 45 newspaper ounces of gilt sold for every 1 ounce of physical gilt inwards the vault.
Which multiplies the 'apparent' gilt render 45 times. Therefore suppressing cost to what nosotros come across today.
Adrian Douglas: The Supply of gilt is artificially increased past times this newspaper gilt most 45 times the actual supply. So that agency when that is exposed, as well as people are bespeak for gilt that isn't there, the potential is that gold's purchasing ability volition live multiplied past times 45 times.
Silver Doctors: There are 45 times the amount of gilt sold equally at that topographic point is inwards the bullion banks, then what is the cost of gilt for the bullion banker? $56,000 an ounce.
That is because they sold 45 ounces total (at approx. $1245 per ounce) for every physical ounce they owned. In essence, they received $56,000 for every physical ounce sold.
Now the the U.S.A. regime claims they have got 261.5 meg ounces of gilt held inwards reserves, then let's accept them at facial expression upward value as well as assume the gilt isn't encumbered. People tell the dollar is backed past times nothing, but it genuinely is backed past times the gilt reserves they claim they have.
Now let's reckon the dollar. We've issued $14 trillion inwards (debt held past times foreigners) against 261.5 meg ounces. If you lot produce the partition ($14 trillion / 261.5 million) the cost comes out to...
Approximately betwixt $53,500 - $56,000 per ounce. The exact same amount equally the LBMA as well as Comex selling 45 times inwards newspaper gilt the number of actual physical gilt held inwards their vaults.
It appears that the newspaper gilt manipulation is purposely existence done to protect the dollar during this era of massive coin expansion, as well as increment inwards debt. And they are using the newspaper derivatives markets of the Comex as well as LBMA to suppress the TRUE VALUE of physical gilt since if it were to run complimentary to accomplish its actual value it would collapse the dollar besides equally the remainder of the world's fiat currency mechanisms.