Gold and silver inventories are collapsing!
May 22 (King World News) – Alasdair Macleod: Foreigners increasingly distrust the dollar, which is why central banks, the ultimate insiders are selling them for gold. The decline in the $ has not been noticed by Americans — yet.
The chart above prices the dollar, which is only imaginary money, in real money which is gold. In 1968, when the exchange rate was $35 for an ounce of gold, if you bought $1,000 by selling 28.57 ounces of gold that $1,000 would be worth only 0.22 ounces today. The loss is represented by the double-headed arrow in the chart above. The pace at which the dollar’s value is slipping is now accelerating, even plotted on a log scale.
Of course, the relationship is almost always presented the other way round, showing gold having risen from $35 to $4,540 giving the illusion that gold is rising and the dollar is constant. The illusion continues to fool investors and commentators in G7 capital markets, but it no longer fools other foreign holders of the dollar, principally the Chinese. This is why gold and silver are being drained out of London and New York. Central banks and sovereign wealth funds along with increasing members of Asia’s private sector actors are dumping their excess dollars and other G7 currencies, encashing them for real money without counterparty risk.
Slowly and then suddenly, is what Hemmingway said about bankruptcy. National bankruptcies are no different. But the way they are reflected in national bankruptcies is different, being exposed by loss of faith in the currency and the growing realisation that it is only imaginary money.
That is ahead of us, how far is difficult to tell. This week, gold and silver were on pause, with gold at $4520 down a mere $20 from last Friday, and silver at $75.75 is unchanged on the week. Silver’s volumes on Comex declined, suggesting that its sideways move is corrective of a positive trend, while gold’s volume improved over the week suggesting increasing resistance to further price rises. Looked at in the round, silver is suffering from lack of liquidity, while there’s plenty still in paper gold. But it is hardly relevant given the almost total absence of interest from US and London. This is reflected in the lowest levels of open interest on Comex for some time:
Very low open interest confirms oversold conditions when there are very few sellers left and buyers are disinterested. Furthermore, with stands-for-delivery and exchanges-for-physical, Comex vaults are being drained of bullion:
KING WORLD NEWS NOTE: COMEX Gold & Silver Inventories Are Collapsing!
It turns out that gold is now one of the US’s top exports, not what was intended by the US Government’s rebalancing of the trade position. The other side of these exports is selling of the dollar, which is reflected in the dollar falling priced in yuan, China being the principal seller of dollars for gold and silver:
Slowly then suddenly: when western capital markets run out of physical gold and silver to export to China and other Asian buyers, the price effect is likely to be dramatic. Investors in G7 capital markets will initially think it’s crazy, particularly with bond yields rising to long-term highs in all their currencies. Only later they will realise that it is not gold and silver rising, but their currencies entering a debt-driven collapse. And North Americans willingly exporting their gold hold an allocation estimated at only 0.2% in their $160 trillion portfolios. Their exposure to the collapse of their dollars is virtually total.
ALSO RELEASED!
They’re Lying To You About Gold, It’s Not In A Bubble And Headed A Lot Higher CLICK HERE.
One Chart Says It All: Something Is About To Snap CLICK HERE.
Gold Miners Now Doing Largest Share Buybacks In History CLICK HERE.
Another Major Oil Price Spike Will Be Hugely Bullish For Gold & Silver CLICK HERE.
World Economy “On Borrowed Time” As Massive Oil Crisis Looms CLICK HERE.
Take A Look At What Is Now Closing In On A 30 Year High! CLICK HERE.
Expect Violent Moves In Gold, Silver, Bonds And Stocks CLICK HERE.
This Is What A Boom Looks Like! Plus A Look At Another Collapse CLICK HERE.
Rob Arnott – This Bull Market In Stocks Is Gliding Along On A Winder And A Prayer CLICK HERE.
Nomi Prins – This Pullback In Silver Is A Tremendous Buying Opportunity CLICK HERE.
Food Inflation Running Hotter Than Ever, But Look At Gold & Silver CLICK HERE.
Iran War’s Worldwide Economic Shock To Worsen CLICK HERE.
More Good News For The Gold & Silver Markets, Plus Look At What Is Skyrocketing CLICK HERE.
They Are About To Unleash A Fairy Tale To Deceive People On Earth CLICK HERE.
BUCKLE UP: Massive Upside Silver Breakout Just Took Place CLICK HERE.
Gold Is Now The World’s Number One Reserve Currency CLICK HERE.
Gold & Silver Miners Are Shocking Wall Street, Plus Look At What Just Collapsed To Lowest Level In History! CLICK HERE.
© 2026 by King World News®. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. However, linking directly to the articles is permitted and encouraged.
