Today
renowned silver market whistleblower Andrew Maguire spoke with King
World News about the state of the physical gold market and said that
several billion dollars of paper selling from government agents was used
to smash the gold price yesterday. Here is what whistleblower Maguire
had to say: “Gold is actually a currency, and it’s (the gold
market is) intervened (in) by the government agents, which are the
bullion banks. Yesterday, clearly they (the bullion banks) sold gold in
defense of the dollar.”
Maguire continues:
“Keep in mind that $3.5
billion of paper gold was actually cleared in London yesterday. This
selling was coordinated by the same bullion banks that are also active
in the Comex. At the same time, they are rigging enough of a decline to
cover shorts into capitulating longs on the Comex market.
But the Eastern central
banks are simply sitting back and allowing this defense of the dollar to
occur. They know what’s going on....
“They know that the (US) government is
shorting foreign exchange gold and they are long the dollar. So they
(the Chinese) simply scoop up what (gold) they can at the resulting
discounted price. What is astounding is that the price of world gold
and silver is actually established in that manner because it has nothing
to do with the physical market at all.
Essentially what they (the
Chinese) are trying to do is divest themselves of their dollars, euros,
yen and any other fiat currency as fast as they can. They are not
stupid, they are going to sit back and allow the governments to defend
these (paper) currencies.
So their bids are in the
market and they are totally flexible at every discounted fix price.
There does, however, reach a point where these leveraged paper sales
simply run out. Physical allocations force the selling bullion banks to
actually buy back some of these physical allocations.
You just have to look at
the current backwardation. It offers a good window into what is
actually occurring right now. A lot of people might ask, ‘Where are
we?’ It’s just a question of how much physical (gold) is made
available, leased to the bullion banks, to meet these allocations.
That’s why I monitor this
wholesale market so closely and what I see currently is this paper is
rapidly being converted into (physical) gold at a totally unsustainable
rate. So this stair-step higher (we have been seeing in the gold market
for so long) is these Eastern central banks capitalizing on this
discount.”
The
above information was just a small portion of what whistleblower Maguire
had to say. This tremendous segment provides a fascinating look at
what is really taking place behind the scenes in the gold war. The KWN
audio interview with Andrew Maguire will be available shortly and you
can listen to it by CLICKING HERE.
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