Time and time again we are seeing fraud taking place in the precious metals’ market. Thousands of tonnes of paper silver and paper gold are being dumped over just a few hours or days. For anyone who doesn’t understand what is happening, let me categorically state that this has nothing to do with the real physical market in gold and silver. No, this is blatant manipulation by governments and bullion banks as well as speculators. And since governments are involved, it is sanctioned by them with no consequences for the traders who are rigging the market.
BULLION BANKS FEAR THE DAY THEY MUST TURN PAPER GOLD INTO PHYSICAL What is happening has nothing to do with real markets or real supply and demand. What we are seeing is governments trying to obfuscate their total mismanagement of the economy and the currency. So far, the bullion banks have been fortunate that gold and silver paper holders haven’t called their bluff and asked for physical delivery. Because we know and the banks know that the day they will need to come up with the real gold and silver bars, it is game over. Because they haven’t got physical gold or silver to cover even a fraction of their paper shorts. Between futures exchanges, bullion banks, including precious metals derivates contracts, there are hundreds of ounces of paper gold and silver outstanding for every ounce of physical backing.
The problem is that it is not only the bankers that are the culprits in this game. No, governments are just as culpable. Western banks officially hold 30,000 tonnes of gold. Virtually no Western central bank has ever had a physical audit of their gold. The US had their last audit during Eisenhower’s reign in 1953?
Western central banks have in the last few decades been liquidating a major part of their gold holdings. For example, he UK sold half of their gold holdings at the end of the 1990s and Switzerland sold over half. Norway sold ALL their holdings in the early 2000s.

This post was published at GoldSwitzerland on May 12, 2017.