The major operators of the paper market in
precious metals are using all the ammunition they have available to suppress the
price of gold and silver. But they have an extremely powerful opponent in
China which continues to increase the gold imports at a remarkable rate. In
2012 China has so far imported 500 tons of gold against 375 tons for 2011.
Total Chinese production and imports for 2012 is 900 tons against 750 last
year. (chart courtesy Nick Laird of chartsrus.com)
Alasdair Macleod discusses that the Futures Market
in precious metals is heading for a major crisis due to the massive
outstanding short positions of US banks in gold and silver. http://www.financeandeconomics.org/gold-futures-market-heading-for-crisis/
A major short squeeze could be imminent.
Regularly when GoldSwitzerland
transfers what should be client’s physical allocated gold bars from
Swiss banks to vaults outside the banking system ,
the bank does not actually have the physical but must acquire it. Paper gold
outstanding is around 100 times the amount of physical gold available. Thus
all paper holders can never get physical delivery. This also goes for most
The fundamental and technical picture could
not be better for gold and silver. Most governments’ deficits are
escalating at a fast rate. Money printing worldwide is likely to accelerate
rapidly and could reach exponential rises in the next 1-3 years.
Gold and Silver will continue to reflect the
destruction of paper money but must be held in physical form and stored
outside a very fragile financial system.
The next target for Gold is still
$4,500-5,000 and for Silver $150. These targets could be reached in the next
12-18 months. Longer term targets are much higher.
These issues and much more are covered in my
recent interview with King World News:
Link to Dec 7 KWN written interview
Link to Dec 7 KWN audio