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The gold conspiracy
world is a buzz with recent articles from Rob Kirby about tungsten bars that
were plated with gold. According to Kirby's sources 1.3M-1.5M these
400oz bars currently reside in Fort Knox as well as have been sold into
the global gold markets over the past 15-20 years. The article can be found
here: http://news.goldseek.com/GoldSeek/1258049769.php
Lump this together
with GATA's work in exposing
the secret manipulation of the price of gold and you add jet fuel to the
gold conspiracy inferno.
The world is slowly
waking up from the self induced coma that investors and governments have been
living under when it comes to the realities behind gold and the implications
of this awakening should not be underestimated.
What the fake gold
bar story does is inject DOUBT on the accepted supply/demand dynamics of a
shadowy global monetary reserve asset that has been blindly
neglected for many years. The existence of fake gold bars, if
true, is an amazing story and has the power to completely upend the global
monetary system. Over the past 40 years, the reporting of the
"official gold supply" has been focused almost entirely upon the
work presented in the GFMS annual Gold Survey. This company's report
is heavily cited as the "world's gold authority" but, as far
as I know, GFMS neither questions the accuracy of its surveyed data nor
verifies the quality, quantity or ownership rights of their reported global
gold holdings. My friend Adrian Douglas over at GATA and MarketForceAnalysis.com helped expose this
highly questionable operation with his article GFMS cooks books to
make gold look bad.
So what happens when
you inject reasonable doubt into a widely held global reserve asset? Unfortunately
we have a very recent comparable situation where the world lost faith in the
validity of another favorite reserve asset... REAL ESTATE. Real estate
mortgages had historically been a very reliable asset for banks and
institutional investors because they usually appreciated (although it was
mostly due to the decrease in the value of fiat money) and they had
identifiable income streams with predictable loss ratios. The
secondary market for mortgages had always been rock solid in the past.
Then, with the
invention of Mortgage Backed Securities (MBS's), banks were able to bundle
huge packages of mortgages together, sell them off and leverage the proceeds
to do the same thing over and over and over. It was like a new monetary
printing press for the investment banks and, as always, when you give a
banker a printing press they will abuse it until it breaks. In the real
estate boom days these MBS packages were filled with thousands of very
dubious mortgages laced with weak credits, inflated appraisals, phantom loans
and highly complex structures with phony credit ratings. When the real estate
bubble finally burst nobody could be sure what was actually in these Mortgage
Backed Securities so the bottom fell out of a once reliable market. Almost
overnight MBS's that traded at or near par value dropped to pennies on the
dollar. To add insult to injury most banks used MBS's as a large
part of their Tier 1 Capital forcing them to either raise further
capital immediately or sell off a significant portion of their leveraged
assets...hence the Financial Crisis last year.
The story of tungsten
filled gold bars is similar in many respects to the MBS story. Just as
the MBS's were filled with dubious/fraudulent loans it now seems possible
that many large gold bars may be filled with dubious/fraudulent gold. And
just as the market for MBS's froze overnight so may the market for large gold
bars. The reality is that all the large gold bars in the world may now have
to be re-melted and verified for purity before anyone dares to re-enter that
market!
Do you think I am
over reacting? Maybe. But if I were a wealthy investor buying a 400oz gold
bar for over $450,000 you bet I'd make sure it wasn't a fake! Hedge funds
and institutional investors are required by law to perform their
fiduciary duty when investing in any asset. Just the hint of fraud puts them
at risk of legal recourse if they don't verify the purity of their gold
investments. If all "Good Delivery" bars used in
exchanges around the world are now suspect, I wouldn't be surprised if the
world gold markets are preparing for a global "Force Majeure"? Most of us know that the major
ETF's have been set up from the beginning to avoid any legal responsibility
for the purity or quality of their gold. Could
this be the "get out of jail free card" for the fraudulent gold and
silver ETF's.
Was this part of the
banking cabal's endgame plan all along? I think gold market volatility
is about to explode. Those holding large gold bars should be scared to death
that they are filled with tungsten which tells me they either have to analyze
their bar quality or sell them back into the market before everyone starts to
question "Good Delivery" bars. This would drive the price on the
"paper gold" markets down but at the same time drive the price for
real, identifiable, .999 gold into the stratosphere (which is where it should
have been without all the fake gold bars!)
For us little guys
out there, the probability of your physical gold investments being fake is
fairly low if you bought 1 oz coins. Don't get me wrong. There is more and
more talk of fake coins coming out of China and history shows that many coins
are not the purity they claim. Go
buy yourself a testing kit or some coin measuring devices if you are worried.
The problems with fake 1oz gold coins pales in comparison to the big players
having 150M oz of fake bars circulating in the exchanges and in government
reserves.
My advice: Forget
about trying to figure out what's about to happen to gold and buy the
other monetary metal...SILVER!
Back in the early
1990's when these gold plated tungsten bars were supposedly being
manufactured the Clinton clan instituted their "strong dollar
policy". The fulcrum of this policy was the rigging of the gold market
and it looks like supplying fake gold bars into the market was all part of
the price suppression plan. The silver situation was a little trickier than
just creating fake silver bars. The problem was that, unlike gold where it is
unheard of to melt down "Good Delivery" bars, large silver
bars purchased from the exchanges were routinely removed from inventory and
melted down to be used for industrial purposes. If the "Good
Delivery" silver bars were filled with something like tungsten or lead
the industrial users would know almost immediately. That kind of visibility
would have called into question all "Good Delivery" metals on the
major exchanges.
The solution to this
silver problem was to find enough silver to flood the physical market and
continue to rig the paper silver markets on the COMEX. Ted Butler has exposed
the COMEX market paper silver rigging operation, and I believe I exposed the
physical silver solution in my article The Great Silver Mystery (..and the greatest
secret of all time!). I
postulated in this article that the US removed 470,000,000 oz of silver from the Manhattan Project Calutrons to continue the silver price
rigging operation. As you can see from the US government's own data, the
exports of physical silver jumped significantly for 4 consecutive years
during the "strong dollar policy" heyday.
From 1995-1998 the historical average of about 400 tons per year
jumped 7x to about 2,700 tons per year.
http://minerals.usgs.gov/ds/2005/140/silver.pdf
It is my contention
that 300M+ oz this silver was sent to the UK to supply the LBMA with physical
silver and 150M+ oz were supplied to the COMEX inventories. All of these
maneuvers were meant to supplement physical silver supply without
letting the price rise which would have raised red flags for investors
as well exposing the gold price manipulation scam. I would not be surprised
if the silver attached to the silver ETF (SLV) has been
"re-processed" a few times to dilute the silver content since it
isn't in line at the COMEX or LBMA for industrial demand removal. The SLV
Prospectus was even changed after the fact to remove the word
"Bullion" from all occurrence of the term "Silver
Bullion". Red flag or what?!
SO WHERE DOES THAT
LEAVE US?
Not that silver needs
another bullish reason to motivate investors but the fake tungsten gold bars
should further shift investor money away from gold bars and into the tiniest
monetary market in the world...SILVER!
Read Road to Roota V for all the other
reasons to SWAP ALL YOUR GOLD FOR SILVER!
If you REALLY want to
stay away from fake gold and silver you have to buy small weights from known
fabricators. I'd even go so far as to stick with 1oz US Eagle coins because
they are US Constitutional money and, theoretically, since they are
denominated as $1 they should have the same legal protections as
counterfeiting fiat money.
Can you find two
people in this picture who are excited about the return of US Constitutional
silver dollars?!
Senator Feinstien and Speaker Pelosi
"just practicing" a return to Constitutional Money!
We are living through
the final days of Fiat Money and you need to position yourselves with the
right assets at the right time to survive this transition.
For some reason this
songs keeps playing in my head...
"One day we'll
look back on this and it will all seem funny
But now you're sad,
yer Mama's mad
And you're papa say's
he knows that I don't have any money
Yeah, you're daddy
says he knows that I don't have any money"
Bruce Springsteen -
Rosalita
May the Road you
chose be the right Road!
Bix Weir
Also
by Bix Weir
For a
limited time free subscription to the Road to Roota Letters email me at: bixweir@gmail.com
Bix Weir is a
freelance author and analyst dedicated to exposing the long term manipulation
of the gold and silver markets. He has worked closely with the Gold
Anti-Trust Action Committee helping to pull the curtain away from the Cabal
of International Bankers that have taken control of our free market system.
DISCLAIMER: The Road
to Roota newsletter focuses on the conspiracy side of the gold and silver
market without the constraints of generally accepted market views. Bix
Weir and all those associated with this newsletter disclaim all and any
guarantees, undertakings and warranties, expressed or implied, and shall not
be liable for any loss or damage whatsoever (including human or computer
error, negligent or otherwise, or incidental or consequential loss or damage)
arising out of or in connection with any use or reliance on the information
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