China Metal Price Premia and Other Topics

Interview with Jay Taylor taped on July 28, 2014 and posted on July 29.

Topics include:

1. China metal price premia for physical metal vs. NY / London virtual metal pricing.

• Silver : $0.98/ oz or 4.7% premium (Shanghai Gold Exchange)
• Plat: $84/oz or 5.6% premium (Shanghai Metal Exchange)
• Pall: $142/oz or 16.1% premium (Shanghai Metal Exchange)

Palladium trading for $1,020 /oz in Shanghai vs $878 /oz in London and NY as evidence of physical pricing departing from virtual pricing markets.

2. Silver manipulation lawsuit coverage by Bloomberg, Reuters etc on weekend

• focus on patterns of trading
• issue is not so much trading patterns as the exchanges themselves - products traded aren't gold, silver, plat etc. but digital / virtual products
• virtual gold and silver trading guarantees manipulation because metal can be created without limit in NY & London
• Goes back to central issue of suppressing gold & silver allowing interest rate suppression; Gibson's Paradox
• Key to the bubble that was blown in the 1990s was loose central bank monetary policy obscured by rigging gold and distorting CPI measure of inflation
• Metals intervention accelerated under Greenspan in 1991 when J.Aron (Goldman Sachs) secretly allowed by CFTC to speculate on commodities.

3. Argentina - approaching July 30 deadline - appears that default will occur; 2002 / 2003 Peso crisis coming back

• abuse of money by central banks.

http://www.zerohedge.com/news/2014-07-28/arge...snubs-mediation

4. Swiss / China currency swap agreement between central banks

• In addition to BRICS, Germany, England, Switzerland, etc. preparing for disruption of function of USD transaction mechanism

http://www.zerohedge.com/news/2014-07-25/d...-swap-agreement

5. US Embassy evacuated on weekend

• Gadaffi killed, country destabilized by NATO;
• pattern of systematic destabilization of Middle East and now Ukraine
• chaos being spread as petrodollar is challenged.