London metals trader Andrew Maguire tells King World News this week that manipulation of the gold derivatives market is well understood by sovereign buyers, who time their purchases accordingly.
"Competing central bank and sovereign buyers," Maguire writes, "know how to game the paper-centric events such as options expiry next week, where they also know that officials and insider commercial bullion banks are forced to defend billions of dollars' worth of accrued naked short derivative bets. This is when sovereigns who are seeking large tonnage buy. The resulting physical outflows provide observable clues that there is stress in the paper markets -- a growing bifurcation between the paper price and the physical price."
Maguire's comments are posted at KWN here:
http://kingworldnews.com/andrew-maguire-this-...old-market-a...
