On the heels of a $30 surge in the price of gold and the U.S. Dollar Index plunging more than 1.6 points, below 94, today whistleblower and London metals trader Andrew Maguire told King World News that a staggering 340 tonnes was just flushed out of the market!
But first, below is a chart showing the price of gold (as reflected through the ETF GLD), after Andrew Maguire’s remarkable KWN interview just 5 days ago:
Andrew Maguire: “Had the Fed not intervened and driven the price of gold lower (when gold was near $1,300), today’s move would have potentially tripped off much larger commercial short-stops above $1.308 and threatened a commercial signal failure…
Continue reading the Andrew Maguire interview below…
Andrew Maguire continues “We were in the $1,290s when the Fed intervened and came out with its hawkish spin. We know why gold is intervened within the currency markets, because physical gold and silver are ‘risk-off’ currencies. And while the Western central planners attempt to coordinate the competitive ‘risk-on’ currency devaluations, the problem for them is that gold remains the benchmark for all fiat currencies.
Spinning The “Recovery Illusion”
So where the rubber meets the road against the dollar/gold foreign exchange cross, it either has to be sold or bought against the U.S. dollar in an attempt to maintain some sort of semblance of normalcy, while central planners spin the ‘recovery’ illusion for as long as possible. But each failure to deliver brings the day or reckoning closer.
The problem is that Western central planners are backed into a corner when it comes to gold. When someone goes long gold, it essentially means being short the dollar. And in these foreign exchange crosses, entities going long gold is something that Western central planners seek to contain.
Selling of gold in the foreign exchange markets is done by officials on a fractional reserve basis. And we have audit-able data from page 82 of the Reserve Bank of India’s 2010 Gold Report which indicates that paper gold vs physical transactions in the benchmark over-the-counter spot markets are (back in 2010) running at a (staggering) 92:1 ratio!
What this (fractional reserve gold system) illusion banks on is that the rest of the globe accepts this resulting paper gold price. So they accept at face value that it’s better to be in the dollar. However, as wholesalers we know that this is not the case. And we are now witnessing the rest of the globe converting the resulting diluted paper gold price into physical on and notably off loco London.
So Eastern central banks and sovereigns are busy converting resulting artificial paper gold price into physical gold. We are also now seeing physical gold benchmarks established off loco London, which is going to have an increasing impact on the massively diluted, highly-leveraged Western (fractional reserve) paper based gold price setting market.
Sure we saw a $100 move lower from the test of the $1,300s, but we know exactly why. As I explained to you last week, it’s because highly-leveraged spec traders on the Comex and the over-the-counter markets chased paper prices well above the aggregated wholesale interest levels and became vulnerable for a rinse.
A Staggering 340 Tonnes Of Gold Flushed Out Of The Market!
In just the last two weeks, during the takedown in the gold price, 340 tonnes of paper gold was flushed out of the market. This brought the Open Interest structure back to what it was before the hot money ran prices into the $1,300s. But these wholesale levels are steadily rising because prices are being…To continue listening to Andrew Maguire’s remarkable KWN audio interview that has now been released CLICK HERE OR ON THE IMAGE BELOW.
Also, to sign-up for Andrew Maguire’s incredible gold and silver trading service, which is less than the cost of a Starbuck’s cup of coffee each day, CLICK HERE or email King World News for more information.
***Also just released: Andrew Maguire – This Will Send The Price Of Gold Hurtling Into The $1,400s CLICK HERE.
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