Today London metals trader Andrew Maguire warned King World News that Western central banks and insider bullion banks are now positioning for the coming great financial reset! Maguire also discussed what is happening in the physical gold market as well as what the bullion banks are up to.
Andrew Maguire: “You have to draw back and look at the bigger footprints here (in the gold market) because what’s flying under the radar is a distinct change in behavior. Yes, we are seeing the games persist (in the gold market), but these bearish directional bets are (now) hitting a solid gold wall….
Continue reading the Andrew Maguire interview below…
“And it’s easy to forget that these highly leveraged, short fractional reserve gold and silver positions are ultimately underpinned by real allocated physical (metal), which over the last two years has been disappearing in unprecedented amounts (from Western central bank vaults).
Short Leverage Now At Unsustainable Levels – Expect Derivatives Disaster
I know you’ve had lots of other guests who have said, ‘It (physical gold) is disappearing. Where is all this gold coming from?’ But we are seeing radically tightening available supply. Protecting billions of dollars of derivatives bets in such thin physical market conditions is actually raising leverage to unsustainable levels. This is an interesting point we are at because these derivatives bets are now bifurcating the paper and the physical markets, and that’s a condition that’s impossible to maintain.
Unlike any fiat currencies that you can just print, gold’s spot market is anchored to a fractional reserve supply of bullion, where there’s some 500 – 600 tonnes of paper gold and some 5,000 tonnes of paper silver getting cleared amongst a daisy chain of LBMA bullion banks every single day. Obviously this creates a vast amount of synthetic supply that both influences and distorts the true supply/demand fundamentals. But it is the resulting physical deliverability that is now setting limitations on how far the paper price can be pushed lower. And this is a change from the past.
Now we have to remember that these massive bearish bets were accrued from a time when central banks could easily control the physical market. And it wasn’t anticipated that the physical market that they relied on to keep the scam going would migrate to Asia. And so these six insider bullion banks, which have the gold accounts at the Bank of England, they’ve lost control of the physical markets. This leaves only one viable option other than default — and that is to cash settle fractional reserve positions.
Available Western Central Bank Gold To Supply Into The Market Is Gone
Physical demand has been exceeding supply for some years now, and the flywheel to supply borrowed central bank gold into the markets at a suppressed price is gone. It’s no longer there. (This is why Western) central banks no longer trust each other. They are demanding repatriation and no central bank is actually trusting any other central bank anymore. They want physical possession (of their gold).
So who is going to be lending physical gold into a marketplace in that kind of condition? They (Western central banks) are not doing it. So the inevitable bailout that’s going to leave unallocated gold holders completely cash-settled and on the sidelines as gold and silver prices gap up is coming.
Western Central Banks & Insider Bullion Banks Positioning For The Great Reset
Of course the (Western) central banks and the insider bullion banks recognize what’s happening. They are close to the physical market. They are not stupid and they are now clearly positioning for this reset.” ***KWN has now released the extraordinary audio interview with Andrew Maguire, where he discusses the gold and silver takedown, what surprises to expect next, how much physical gold tonnage has been taken out of the market and much more and you can listen to it by CLICKING HERE OR ON THE IMAGE BELOW. Also, to sign-up for Andrew Maguire's incredible gold and silver trading service CLICK HERE or email King World News for more information.
***KWN has also now released the powerful audio interview with Stephen Leeb, where he discusses China's massive gold hoard, what surprises to expect next, and much more, and you can listen to it by CLICKING HERE OR ON THE IMAGE BELOW.
***ALSO RELEASED: 5 Of The Most Shocking Charts Of 2015! CLICK HERE.
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The audio interviews with Andrew Maguire, Michael Pento, Dr. Paul Craig Roberts, Gerald Celente, Eric Sprott, Robert Arnott, David Stockman, Chris Powell, Rick Rule, Bill Fleckenstein, John Mauldin, Egon von Greyerz, James Turk, Dr. Philippa Malmgren, Marc Faber, Felix Zulauf, John Embry and Rick Santelli are available now and you can listen to them by CLICKING HERE.