Today London metals trader Andrew Maguire warned King World News that the bullion banks are once again in danger of experiencing a historic default. Maguire also discusses what is happening in the physical market for gold as well as the ETFs.
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Andrew Maguire: “Much like back in 2013, the bullion banks are now once again at risk of a default but in a totally different circumstance….
Continue reading the Andrew Maguire interview below…
“Back then sentiment was bullish. As we stand now sentiment has been carefully orchestrated into the tank, but really only in terms of gold priced in dollars. Gold in all other currencies is in a solid bull market — not just paper gold traded in the currency crosses, but more importantly there’s a bull market in the underpinning physical markets.
Let’s not forget that there is only one store of immediately deliverable physical bullion no matter which currency you denominate it in. And this time around there is no way the central banks or the six agent bullion banks that have gold accounts with the Bank of England can rob sufficient above ground ETF gold to hammer (the price of) gold down again, as they did in 2013.
The bulk of what remains in these ETFs is in strong hands but I only hope for ETF investors that their gold and silver is unencumbered and it won’t be caught up in this cash settlement that we’re expecting. Technically there is a published list of numbered bars that states that these bars exist, but we also know that there is a degree of double-ownership (rehypothecation).
We have some 400 tons of (the ETF) GLD currently sold short. And there is (also) 525 tons of SLV sold short. This bullion has a counterparty risks associated with it, especially as these same bullion banks that are the anchor to this loaned out metal are naked short themselves against large over-the-counter unallocated holdings.
So although current US-centric gold sentiment is in the tank, physical gold is once again priced at a level where there are very few willing sellers of real bullion and we have strong demand. This once again leaves the paper market accrued short interest mismatched to real physical demand.
Eric, the point I’m trying to make here is that the 2013 event (where gold and silver were smashed lower) will never happen again no matter how many bullion banks come out spinning outlandishly bearish targets. Far too much has changed and there are a lot of reasons why the paper tail will not be able to wag the physical dog much longer.
The key thing here is that the physical markets have moved continents and they are increasingly out of control of the (Western) bullion banks and central banks. These central banks don’t have sufficient metal to supply into the market to assist in a continued suppression of gold and silver.
The global physical hubs are (now) firmly set in Asia and no matter which way you cut it, with very strong physical demand and the lack of immediately deliverable above ground supply being made available to short or to lease this gold out at these low prices, the primary lever (tool of manipulation) that the bullion banks have enjoyed for so long is (now) being removed.” KWN has now released the remarkable audio interview with Andrew Maguire and you can listen to it by CLICKING HERE OR ON THE IMAGE BELOW. This interview is a must-listen for anyone invested in gold and silver. Also, KWN will be releasing more written interviews all day today with Andrew Maguire, Paul Craig Roberts and others. ***To sign-up for Maguire's incredible gold and silver trading service CLICK HERE or email King World News for more information.
***ALSO JUST RELEASED: Man Who Predicted Collapse Of Euro Against Swiss Franc Warns Next Global Financial Disaster Is Coming CLICK HERE.
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