Harvey Organ has been analyzing the bullion markets
closely for decades. The quality and accuracy of his work is respected enough
to have earned him an invitation to testify before the CFTC on position
limits for precious metals back in 2010.
And he minces no words: Gold and silver prices are
suppressed. With extreme prejudice.
In this detailed interview, Harvey explains to Chris
the mechanics of how he sees this manipulation occurring, why he predicts
this fraudulent pricing scheme will collapse soon, and why it's critical to
be holding physical (vs. paper) bullion when it does.
The real suppression of the metals
started in 1988. That’s when the leasing game started and was invented
by J.P. Morgan.
These guys would go around to the
mining companies and say, “Listen, I’m going to pay you for your
gold in the ground and I will sell it. You just pay me as you bring it
out.” So that was cheap financing to the miners. Barrick,
the biggest mining company of them all, went in on this and it financed a lot
of Nevada projects.
Once the leasing game came, the actual
selling, the extra selling, suppressed the price. In the first five
years, it started at maybe three hundred to four hundred tons. It
didn’t start to get really bad until probably ’97-’98 with
the Long Term Capital affair. And that’s when the leasing started to
become around maybe 1,000 tons of gold. And it hasn’t stopped.
And silver is the same.
And that’s why you've had a
long-term, 20 years of suppression of the metals. The problem now is that the
physical is now gone. Where
is going? It’s gone from West to
A lot of people don’t know that China
used to refine close to 80% of the world’s supplies of silver, because
it’s very toxic. Up until probably ’85, the Chinese handled 80%
of the world’s refining of silver. Now they're down to 40%, but
that’s still a major part of China’s industry. They are keeping
every single silver ounce they refine, and gold. They are keeping it for
themselves; their reserves are rising (though they don’t tell exactly).
Two years ago they went up to 1,054 tons and I can assure you it’s
probably triple that now. These guys are not stopping. Just like they are not
stopping in oil. They know what the game is and they are slowly taking all
their U.S. dollars that are on their shelf and converting them to gold, oil, copper – anything that’s real.
And the game ends when the last ounce
of gold has left London -- not COMEX, because in a nanosecond it will come
back to here.
The big problem in London is that
their derivatives on gold are about 50 to 100-to-1. That’s the amount
of derivatives. So if I take out that 1 ounce, the balloon around it -- the
derivative -- is getting bigger and bigger and bigger until it’s ready
to totally implode.
And that’s what you are seeing
now. So right now, people are going to say: how high can it go? And I’m
going to tell you: you are going to go to sleep on Thursday night and gold
may be $1,670. And then you wake up the next day and it’s going to be a
banking holiday. And gold will be $3,000 bid, no offer. No offer -- and it
will be a banking holiday. Because there will be a failure to deliver.
You’ve got to have physical
coins or bars. If all you have is a piece of paper -- that’s all it is!
It will just blow up in smoke.
So just go buy your physical and be
thankful that you are getting it at a cheaper price today.
Click the play button below to listen to Part I of
Chris' interview with Harvey Organ (runtime 32m:36s).
iTunes: Play/Download/Subscribe to the Podcast