So, Gold is apparently “falling” again? But is it? Really?
Before we can answer that question, first we must
ask - What is “Gold Price”? Even more significantly, why the hell is Gold and
its price so important anyways?
So lets’ begin.
An
Empire of Fraud and Deception
The US Government – operating today under the
control of an international banking cartel/mafia – is running a global empire whose
sole aim is to exploit the many for the benefit of the few. But because the
people won’t be exploited willingly, you have to control them. Now, sure, you
can use chains and whips like the good ol’ days, but then the slaves won’t be
as productive and may even revolt if exploited too much. Indeed:
“The
best slave is the one who thinks he is free.”
--Johann von Goethe
So massive lies and deception such as – it’s a “free
society” governed by rule of law, it’s a democracy, the government is there to
serve and protect you, you have a right to privacy, you can be a Bill Gates or
a Warren Buffet too if you just.work.hard.enough.,
etc. – are used to first sedate the people and then they are raped and pillaged
using the biggest deception of them all – the currency. Whether it is secret
surveillance on a global scale, wars based on false pretenses, luxurious
summits, Bilderberg conferences, massive transfer of wealth from poor to the
rich – all of that is enabled by paper money – the US Dollar. Ever since its
Gold backing was removed (first internally, then externally) the dollar is
nothing but a worthless piece of paper which can be printed (or created
digitally) in unlimited amounts by the Central Bank, therefore enabling the
government and people who control the banks to appropriate unlimited resources
from the global economy (since the dollar is the world reserve currency) for
their benefit. Due to mass ignorance on monetary matters (deliberately fostered
since the education system and media is also under the government’s - and by
implication the cartel’s - control), people normally don’t pay any attention to
it and continue to work and provide valuable output in exchange for worthless
pieces of paper (for a detailed treatise on the paper money/debt fraud and the
role of Gold, please refer to other articles my blog).
So for an empire based on lies and deception, the
biggest threat is if the lies start falling apart. If you’re wondering why a “superpower”
like the United States is so threatened and infuriated by the disclosures of an
allegedly low
level employee, wonder no more for more than the
technical details, it is the fact that they expose the LIES, and thus threaten their control over the slaves.
Imagine how they would feel if the biggest of their
lies underpinning EVERYTHING was
exposed? Gold is the only standard
against which the dollar’s value can be truly measured since all other
currencies are unbacked pieces of paper as well (well, they are “backed” by the
dollar, if that makes any sense). If the Gold price rises too much too fast, it
would expose the worthlessness of their fiat franchise, the slaves will no
longer work in exchange for it and which is why they need to keep it under
control NO MATTER WHAT. This is why they have designed elaborate
mechanisms in order to help hide the true Gold price. But, in the words of a
true American Hero and Patriot, Edward
Snowden:
Truth
is coming, and it cannot be stopped.
What
is “Gold Price”?
What you – and the world at large – refers to as the
“Gold Price” today is actually the price of "futures" contracts
traded on electronic "futures exchanges" operating in various
countries, primary among them being the COMEX in the US operated by the CME
Group and "regulated" by the CFTC.
So what are "futures" and what is
"spot price"? As per goldprice.org:
Futures
contracts, or just Futures, are standardized contracts for delivery (the seller
delivers) or receipt (the buyer receives) some fixed quantity and quality of a
commodity. Futures contracts are available for each month of the year. For
example, a contract for delivery of December wheat can be purchased in May the
year before.
The
"Spot Price" (price of Gold for immediate settlement/delivery) - the
price used as reference Gold price throughout the world today - is simply the
price of the futures contract of the "most active month" (most number
of transactions) trading on the exchange, with the month referred to as
"spot month".
(For those of you familiar with the futures market
fraud, you can skip the next 2 sections).
How
Its Supposed to Work
Now, in theory, the
futures price should accurately reflect the price at which one can obtain the
actual physical metal since the futures contract is a legally binding contract
to deliver the actual commodity. The exchanges have registered warehouses where
the commodities with the requisite specs stated in the contract are stored to
be delivered, should the buyer (remember this for later) choose to stand for delivery.
A point to be noted here is that the futures exchanges allow trading on margin,
i.e., you have to put up only a fraction of the actual contract value to trade,
whether buying or selling (the amount of margin is decided by the exchange). If
you're selling you can go "naked short" (sell a contract without
possessing any Gold, only putting up a cash margin). So this type of contract
trading on cash margin has a loophole in that a player with sufficiently deep
pockets could overwhelm the market by introducing a large supply of contracts
(buy or sell) causing panic selling or buying and unduly influencing the price
to their benefit. Trading on margin facilitates this because for a big player
putting up 5-20% cash margin is easy (even if it's in the billions), but
procuring a large quantity of raw material, especially something like Gold, is rather difficult and subject to rules
of nature. But the price manipulation can't last forever because at some point
either you have to come up with the Gold (if you're selling) or front the full
amount and take delivery (if you're buying) unless you choose to roll your
position to another month. Now rolling over isn't without costs so if a player
manipulates the price, it's usually for a short duration to profit from the
price move and then they cover their position, at a profit of course. But the
exchanges have safeguards against this in the form of position limits (no. of
contracts bought/ sold at any given time) and also there are numerous
regulations which obligate the exchange and its regulator to monitor trading
activities and look for signs of fraud and manipulation. Hence normally such
manipulation shouldn't be possible, and if it happens, is detectable and can be
stopped.
So everything looks good, people are trading, real
price discovery is happening, price manipulators are at bay, people are playing
fair, Obama is bringing hope and change, there is freedom in the US of A, and
everybody can live happily ever after.
How
It Actually Works
Unfortunately, reality is a b**ch.
Now, what if there was a sufficiently large entity -
so powerful as to be able to control the exchange and its regulators - having
access to unlimited money with vested interest in manipulating the price - not
for a short term cash profit but for other motives and a longer duration. Would
that be possible?
Think about it. But even if it's possible, why would
somebody want to manipulate the Gold price? That too, for a long duration and
not for a cash profit (because it already has unlimited cash). Who would want
such a thing and what would they gain from it if not cash profits? Cui Bono? Does anyone/anything come to
mind? Who has "unlimited cash"?
Yes, that's right - the Federal Reserve. Now the Fed
is just a front - collectively it can be referred to as the banking cartel or
banking mafia which includes entities such as JP Morgan, et. al.
These guys are sufficiently powerful and have a
fairly strong motive in controlling the Gold price because Gold competes with
the worthless paper currency issued by them. A rising Gold price signifies
declining value and confidence in their paper money franchise. They have to
protect it at any cost. If this sounds too conspiratorial, well, I only have
one word for you: PRISM.
For a detailed explanation of why this is the case, please refer to these
articles here,
here
and here.
They exploit the following loopholes to achieve
their objectives:
1. Most people trading futures end up NOT taking
delivery. A majority are simply speculators interested only in profiting by
betting on the price movements (and some hedgers who do not wish to go through
the hassle of taking delivery) trading on margin. The bankers know this. Hence
there are a lot more paper contracts floating around than there is real Gold.
They are betting most won't bother and so far they seem to be right. Take a
look at this extract below (via maxkeiser.com):
...
COMEX continues to hold its place as the largest and most sophisticated meeting
place for buyers and sellers to express their gold price opinions, in the form
of bids and offers, on what the price should be. COMEX remains the beating
heart of gold price discovery.
Gold
futures contracts are referred to as "paper-gold" because the size of
this market is said to be over 100 times larger than physical gold
available...open interest on the COMEX, at the time of writing, accounted for
over 85% of demand on the gold futures market, so COMEX receives the most examination
here. In theory investors are able to take delivery of the futures contract on
expiry, although few do, instead choosing to roll the contract...the fact
remains that all the long positions on COMEX cannot be settled in gold.
2. As explained above (I suggest you read the whole article),
Comex
operated by the CME
Group in the US is the primary futures exchange for Gold
and is the trendsetter for Gold prices worldwide. They control the price on
Comex and the rest of the world follows.
3. Since they (indirectly) control the exchange and
its regulators (Crimex Comex and the CFTC),
position limits don't apply to these guys. They're above the law. They can
issue an unlimited supply of paper contracts whenever they wish to suppress the
price and if required, can indefinitely roll over till the longs bleed dry. If
you don't believe this, please explain how this happened.
Yes the longs can stand for delivery but most are
heavily leveraged so few do. In a panic, even if it's manufactured, everyone
bolts for the door.
4. If you have never taken delivery from the Comex,
I suggest you give it a try. It's not easy. Even though the Comex is the
primary price setting venue for Gold, the people in charge there have done
their utmost to make it a huge hassle to take delivery. This is intentional.
The promoters of Comex DO NOT want you to take delivery, but only gamble in
their casino. If they win, great; if not, they can always pay you off in
freshly printed casino chips (dollars) - just don't ask them for the Gold. If
you did, the whole enchilada would come falling apart.
Disconnect
Between Physical Gold and Gold Futures Price
But this manipulation is not without consequence and
cannot go on forever, no matter how powerful they are. The bigger the
manipulation, the greater the blowback. To explain things better, read the
following (from one of my previous articles):
Anyone
who has actually traded the Gold futures market for any length of time knows
that this [manipulation] happens on a regular basis. So basically the
government/Central Banks use the paper gold futures market as a price control
mechanism for Gold (of course, they can't impose price controls on Gold overtly
as it would reveal the lie - if Gold is a barbarous, meaningless relic why
would you need to impose price controls on it?). But what happens when price
controls are imposed on something? Shortages start to occur resulting in an
even greater moonshot in price than would have otherwise occurred. A
"black" market (which is actually the free market at play and depicts
the true price of the commodity) eventually emerges where it sells at a premium
to the official price. There are two reasons for this:
1.
Buyers - aware that the commodity/good is available at a discounted price -
beat a path to the door of whoever is foolish enough to sell it at the
government mandated price. Availability at that price soon runs out.
2.
The good becomes even scarcer as the costs of producing and selling it are no
longer covered by the government mandated price. Aware of this, sellers
withdraw from the market and demand ever higher prices for the good.
And
remember: for marketable goods, the "out" is money, but the only
"out" for money is a superior form of money. When the paper
currencies become unstable, the only "out" is Gold so you can be sure
there will be no lack of buyers, only sellers - and there is no upper limit to
high it can go. Theoretically, the price will be infinity when no seller is
willing to sell Gold in exchange for paper. You want to be "out" of
paper before we reach that event horizon.
If
the rigging in the futures market keeps continuing, the futures price at some point will decouple from the physical and
become meaningless. This is exactly why you should use this opportunity to
buy as much physical as possible at discounted prices while there are foolish
sellers still willing to sell at the stated official (futures) price.
What’s happening in Gold futures market right now (and
has been forecasted
before) appears to be the beginning of “the disconnect”
between “Paper Gold” a.k.a. futures and “Real Physical Gold”. Entities who:
a. Were/are solely in the game for cash profits and
don’t understand the fundamental basis for buying Gold but ride the price
trends in the futures casino
b. Have realized that the paper gold is nearing its
end game and want be solely be holding the physical
c. Have been holding futures but are unable obtain
physical Gold from the Comex
d. Need to liquidate futures positions to obtain
dollars (for whatever reasons, e.g. funds which need to return money to their
investors in dollars, morons going to dollar as a “safe-haven”, etc.)
are in the process of dumping paper Gold (including
the fraudulent GLD
ETF)
en masse along with the bullion banks (ala JP Morgan) who have a vested
interest in keeping the price low. This is what Andrew
Maguire had to say recently
regarding the physical market:
Just
off wholesaler calls. Most are too busy
to talk at this time, but today (Thursday) will be the largest volume day this
year and possibly 2 years. Central bank
purchases are almost certainly far in excess of paper sales. We are so close to the marginal cost of
production that my contacts are saying the gates are wide open here to purchase
all physical that is available....
Continued
paper market supply saw another + 45 tons sold into the rise ahead of
Thursday’s fix and then in size directly post the fix. These were immense amounts of paper gold
hitting the market, yet there is absolutely
zero physical gold for sale and nothing but buy orders in the wholesale
market.
We
are below the true costs of production for both gold and silver and it makes a good deal of sense
for the central banks to be taking all that is offered. Fundamentally this will have a significant
catch-up impact.
Needless
to say we are getting reports of extremely large allocations of gold, but also
far larger direct producer deals being struck outside the paper markets. The one question is, just how long this paper
market selling can continue to drive price when such a massive transfer of
physical is underway?
(All
emphasis mine)
There are strong hands and intelligent minds out
there who know the truth and do not sell at every hint of a falling price. They
care only about accumulating the physical metal – as insurance in case of system failure - not about short term paper
profits. In fact, many of them will NEVER sell; only buy whatever the price as long as this fiat money regime lasts.
That is why the price has been rising for the past decade even with heavy
manipulation happening on the Comex. Moreover, the Comex doesn't operate in a
vacuum. If the price is suppressed there, the buyers - aware that it is
available at a discount - will flock there and demand delivery. If it can’t
deliver, a break will occur in the prices being quoted on the Comex and the
prices being quoted in the real world for the real metal as people dump the
future contracts and try to find the physical elsewhere. This will render the
futures prices worthless. By some
accounts, the Comex is already under increasing pressure for delivery of
the metal. So much so, that if you look at the Gold stocks inventory report
published by Comex, they have recently put this disclaimer ON THEIR OWN warehouse stock
report:
The
information in this report is taken from sources believed to be reliable;
however, the Commodity Exchange, Inc. disclaims all liability whatsoever with
regard to its accuracy or completeness. This report is produced for information
purposes only.
For
questions regarding this report please email Registrar@cmegroup.com or call
(312) 341-3370.
I suggest you call that number right away because if
they don't know what's in their own inventory, then who does?
Of course they do realize the seriousness of the
Gold situation. If they keep printing to infinity, the currency will eventually
collapse against Gold. They are scared and desperate enough that they are
thinking of using Volcker’s playbook of letting the interest rates rise figuring
maybe that will keep the Gold price in check and the scam may continue. They
just floated a trial balloon in the form of fed taper talk just to see how it
might work. And boy, it doesn’t look good. Either way the economy is fried
(which tells you why they are so interested in having laws and tools at their
disposal which will help them control the populace – so they can perpetuate
their power through an economic collapse which is sure to occur). And no,
rising interest rates won’t save them because the amount of rise needed to
stave off Gold is so high that it will probably kill everyone on the planet –
either that or people dump the worthless dollars and move to a Gold based system.
Basically, the world is going to have a debt jubilee with all the fiat
currencies rendered worthless. He who has the Gold will make the rules.
The tail is wagging the dog right now. Nobody –
NOBODY – in their right minds is selling the physical. This is all futures
movement, which as pointed out above, maybe 100 times larger than the physical
market. We have to go through
this phase to get to the other side. Think of this as a cleansing process. The fake
futures market needs to die before true price discovery can begin. But this
process offers a great opportunity to those who recognize it (for a limited
time only though). We don’t know how low the futures will go, but there will be a futures price below
which the physical won’t be available. Even though gold is already below
its average cash cost, we don’t know that level since paper
speculators outnumber physical holders by a large margin, so the accumulators
of the physical can keep getting the stuff for cheap as long as there is metal
available. There is no single one defined moment of the beginning or the end of
the disconnect. It’s already started happening on some scale in most countries. With so-called "premiums" hovering
around 20-25% for a long time now, silver futures are already worthless for
physical buyers in many countries such as India. Premiums on Gold have also
soared in India, one of largest physical buyers, while imports and gold
coin sales to the public have been practically halted:
India's
biggest jewellers' association has asked members to stop selling gold bars and
coins, about 35 per cent of their business, adding its weight to government
efforts to cut gold imports and stem a swelling current account deficit.
Any guesses why that current account deficit is exploding out of control? That's right - in their greed, the Indian government printed too much local currency, and now they want to the people to be obedient little slaves and stop buying Gold! Bending over must be easier. Of course the "jewelers association" doesn't have a clue.
So, we have tumbling prices (yes, the Indian
currency has fallen, but Gold has fallen more, so its gotten “cheaper”), yet no
physical available, at least in India. Go figure. Soon this phenomenon will be
seen in every country around the world.
Online
Physical Gold Price Datasource – Real Gold Price
I’d like to first define what is “Real Gold Price”:
Real
Gold Price is the price at which the Real PHYSICAL Metal is available for
delivery to the buyer's own PERSONAL possession and is the ONLY ONE that
matters. It is NOT the Comex Futures price.
Currently the difference between the two prices (futures
vs. physical) is referred to as "premium" that you have to pay over
"spot" (Gold futures price). But whatever the nomenclature, the fact
remains that the paper Gold price no longer accurately reflects what you have
to pay in the market to buy the metal. It’s becoming meaningless for people who
want the real stuff. Hence, yours truly has created a reference
database/datasource that will accurately track and record in real time the price of real physical Gold. The data is sourced
from what the major Precious Metal dealers are charging buyers to deliver real
physical Gold to their own possession.
It is important to note here that this does not include dealers/suppliers who
are running some kind of allocated/unallocated scheme because until and unless
the buyers have the metal in their hands, there is no guarantee that the metal
has not been sold multiple times over or if indeed it even exists. The supplier
may be able to provide a lower price for "the physical" if they are
running such a scheme (and given today's rampant fraud in ALL markets, it is
more likely than not that most are).
Now anytime the price falls, there is available in
real time what price the real metal is going for (I try to get the cheapest
price for a given denomination, with the only condition that the dealer is
currently shipping the item. Readers will have to help in this endeavor i.e.
finding the lowest real price for different denominations). People will be
fooled no more by prices of worthless paper contracts.
For now, the prices are in USD and dealers are also
mostly US based, but any dealer can be included as long as they are delivering on
time and have price updates online. You can check out the website here:
Real Price of Gold - http://www.realpriceofgold.com/
More details such as how the data is collected and
displayed etc. are available on the site, but just to give a preview, this is
how the charts look like:
The site tracks prices for a variety of gold product
denominations. Here are what the current real world prices for those
denominations look like:
*Comex
price for denominations other than 1 Oz were obtained by multiplying by the
appropriate factor (pls see website for more details).
As you can see, everything is on a “premium”!
If you look at the charts data, you will see that
the real price right now closely tracks the comex price with almost a fixed
difference (represented by the rolling average). It is my opinion that as the
futures market breaks apart, two things will happen:
1. The fixed difference will increase
2. The
patterns might diverge as well
Indeed, if you look at the screenshot below for the
5 oz product, the premium jumped from the day before even as the Comex price
remained almost the same:
Of course, the data collection has only started
since 13-Jun-2013, so I will be learning alongwith you. I'm sure there will be many
things to see for the raw data doesn’t lie.
The site is a version 1.0, so I’m sure there are
many improvements/features that may be needed. Please feel free to email me
whatever feedback or questions you have about the site and I will respond as
fast as I can. If I get many questions, I will put up a FAQ. Contact info is
there on the site.
I remember some technical analysts looking at the
Gold price chart and declaring that Gold is now in a bear market. I fully agree.
Because the chart they are looking at is, in fact, the Gold futures price chart, which will continue
to be decimated. There is no chart out there for the REAL physical Gold
price which will continue to be bought as insurance against the stupidity of
man and as protection from the depredations of paper money producing Central
“Banks”.
This empire of tyranny and violence can only be
defeated by elimination of ignorance and deception and bringing out the truth –
in EVERY aspect - whether it is mass state-sponsored surveillance or fake
futures exchange prices. Hopefully this website will help in exposing the
biggest fraud of our times.
_________________________________________________________________________
Some
parts of this article have been included from “What is Real Gold Price?”
section of the website, also
authored by yours truly.
Note: I realize some of the
"premium" part is due to fabricating costs for the item, but how much fabricating cost can there be for a simple
bar or coin? And what is Comex selling? An unadulterated sea of Gold?
