KING WORLD NEWS - BLOG
BROADCAST../../../../Broadcast/Broadcast.html../../../../Broadcast/Broadcast.htmlshapeimage_6_link_0
HOME../../../../King_World_News.html../../../../King_World_News.htmlshapeimage_13_link_0
BUSINESS../../../../Business.html../../../../Business.htmlshapeimage_14_link_0
GREEN../../../../Green.html../../../../Green.htmlshapeimage_15_link_0
HEALTH../../../../Health_1.html../../../../Health_1.htmlshapeimage_16_link_0
ENERGY../../../../Energy.html../../../../Energy.htmlshapeimage_17_link_0
SPORTS../../../../Sports.html../../../../Sports.htmlshapeimage_18_link_0
GOLD+../../../../Gold.html../../../../Gold.htmlshapeimage_21_link_0
 
 

Maguire:  “The downside for the central banks is that short-term interventions have further emptied the physical vaults (once) again.  And where is this gold coming from?  It’s coming out of unallocated bullion bank inventories (at the Comex).  The central banks may be leasing out gold, but it’s not leaving their vaults (at this time)....


Continue reading the Andrew Maguire interview below...  




Advertisement


UPDATE: To hear the man with over 40 years of experience in the resource

markets and how he is positioning his clients to weather

the current financial storm click on the logo:






“The liability rests on a daisy chain of bullion banks, and so it will be the bullion banks who are going to be cash-settled by the central banks, leaving physical buyers on the sidelines.


The Fed is so desperate to defend the (US) dollar against gold in the foreign exchange markets that we are moving ever-closer to an inevitable LBMA default, with a cash bailout of the bullion banks.  Wholesale demand in London remains well over elevated (historic levels), and it’s been in sovereign size this week.  And any dip under $1,300 would again bring in large central bank buying. 


The paper market discounting may have bought the Fed a little time, and allowed the bullion banks to get further net long in the futures (markets), but it has exacerbated the physical tightness.  On two days this week we saw cash gold trading 85 cents in backwardation to December.  That says it all to me.


... in the foreign exchange gold markets ... it’s essentially being used by the Fed and the Bank for International Settlements (BIS) as a way of propping up the (US) dollar.  The result of that is, of course, discounted gold prices, and people turning up at the (London) fix and saying, ‘Thank you very much, I’ll take that (physical gold at this discounted price).’ 


Of course that’s a problem, but as I also mentioned, there is no physical actually leaving these central banks any more.  Whereas before, some years ago, we used to actually see physical metal that was leased coming into the marketplace to be sold by the bullion banks.


Now, what they (bullion banks) are doing is taking a paper shuffle.  They are getting a guarantee from the central banks to take physical (gold) out of their unallocated accounts, which are already stretched to the limit, and they have to provide that into the (physical) marketplace (in order to meet demand).


We do get the Bank of England fly-wheeling any shortfalls in physical delivery on a day-to-day basis, but obviously this is all, ultimately, falling on the bullion banks.  That’s why it’s going to result in a cash settlement.  What’s going to happen is the central banks will turn around one morning, or evening, and say, ‘That’s it, we’re going to settle the bullion banks for cash.’ 


It’s just an electronic keystroke.  What does it cost, a few billion dollars to bail them out on a cash basis?  What it will mean is anyone sitting with what they think is physical (gold) in an account is going to wake up the next morning, having been cash-settled the night before, as the bullion banks will have been settled on that basis, it won’t even be called a default because technically the bullion banks can settle for cash, then it (gold) will take off and gold will gap up $100 or $200 (or more).” 


IMPORTANT - This is part II of a series of blockbuster written interviews which have been released and it is only a small portion of what Maguire had to say in his incredible audio interview.  The KWN audio interview with Andrew Maguire is available now and you can listen to it by CLICKING HERE. 


Andrew Maguire’s trading service has returned over a staggering $134,00 for each and every (single) contract traded in the gold and silver markets over the past 16 months.  For those who would like to get more information on Maguire’s incredible trading service and to sign up you can do so by CLICKING HERE.


© 2013 by King World News®. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.  However, linking directly to the blog page is permitted and encouraged.


The audio interviews with Eric Sprott, Andrew Maguire, Grant Williams, Stephen Leeb, Bill Fleckenstein, Pierre Lassonde, Dr. Paul Craig Roberts, Art Cashin, Egon von Greyerz and Marc Faber are available now. Also, other outstanding recent KWN interviews include Jim Grant and Felix Zulauf to listen CLICKING HERE.


Eric King

KingWorldNews.com

To return to BLOG click here.


 
http://kingworldnews.com/kingworldnews/KWN_DailyWeb/KWN_DailyWeb.html
KWN BLOGhttp://kingworldnews.com/kingworldnews/KWN_DailyWeb/KWN_DailyWeb.htmlhttp://kingworldnews.com/kingworldnews/KWN_DailyWeb/KWN_DailyWeb.htmlhttp://kingworldnews.com/kingworldnews/KWN_DailyWeb/KWN_DailyWeb.htmlshapeimage_24_link_0shapeimage_24_link_1

© 2013 by King World News®. All Rights Reserved. This material may not be published, broadcast,

rewritten, or redistributed.  However, linking directly to the blog page is permitted and encouraged.

Subscribe to RSS
CLICK HEREhttp://kingworldnews.com/kingworldnews/KWN_DailyWeb/rss.xmlhttp://kingworldnews.com/kingworldnews/KWN_DailyWeb/rss.xmlhttp://kingworldnews.com/kingworldnews/KWN_DailyWeb/rss.xmlshapeimage_27_link_0shapeimage_27_link_1
KWN Blog
Archiveshttp://kingworldnews.com/kingworldnews/KWN_DailyWeb/Archive.htmlhttp://kingworldnews.com/kingworldnews/KWN_DailyWeb/Archive.htmlhttp://kingworldnews.com/kingworldnews/KWN_DailyWeb/Archive.htmlshapeimage_28_link_0shapeimage_28_link_1
http://www.kingworldnews.com/kingworldnews/Broadcast/Broadcast.html