On the heels of Thursday’s takedown in the gold market followed by a rally on Friday, today London whistleblower and metals trader Andrew Maguire told King World News that we are seeing unprecedented gold and silver backwardation as we enter a new era where officials will require a higher gold price.
BIS Intervention In The Gold Market
March 29 (King World News) – Andrew Maguire: “There were official interventions in the gold market this week. Why this week? Today was the day when the Bank for International Settlements’ (BIS) gold derivative bets had to be marked-to-market. With gold breaking out into the mid $1,320’s into the Comex options expiry on Tuesday and the concurrent over the counter mark-to-market sweet-spot for officials closer to $1,303, the BIS stepped in to rig gold lower into today’s larger over the counter Opex expiry and the footprints confirm it…
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Andrew Maguire continues: “The BIS holds a book of accrued derivative bets which we conservatively estimate to exceed $1 trillion. At every single BIS mark-to-market over the counter options expiry, if the price of spot gold is above the option expiry sweet-spot, we evidence these unmistakable official footprints appear. Yesterday’s completion of the officially sanctioned BIS orchestrated selloff served the BIS extremely well in grooming price back inside its sweet-spot, and it has also benefited the insider bullion banks who came along for the very profitable ride. However, this comes at a price, a physical price.
Bullion Banks And Gold Backwardation
Following the 5.5+ million ounces of synthetic April gold dumped disruptively into rollover, specs are now conditioned to be bearish, adding to short positions. As a result, June gold has moved into a deep technical backwardation to cash, affording officials and insiders an unprecedented risk free $5+ per ounce arbitrage profit. Eric, that’s a lot of ounces they have made a profit on, and foolish short specs are now holding the bag while the market making banks go long against them and accrue physical gold.
Also of importance, the May silver contract entered a level of actionable backwardation that has not been evidenced since $8.50 silver in 2008, and physical silver is now aggressively being accumulated. Dips in the gold and silver markets will continue to be shallow because physical demand is extremely strong and will underpin any moves under $1,300 gold and $15 silver.
A New Era Where Officials Will Require A Higher Gold Price
And more important, Eric, we are entering as new era where officials will require a higher gold price. Let’s not forget that…To continue listening to the powerful KWN audio interview with Andrew Maguire CLICK HERE OR ON THE IMAGE BELOW.
***Also just released: Here Is The Reason For Yesterday’s Smash In The Gold Market CLICK HERE TO READ.
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