Investing in precious metals 101

Banks scramble for physical Gold

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  • Mon, Jul 07, 2014 - 12:54am


    Jim H

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    Banks scramble for physical Gold

You say you haven't noticed that big banks and CB's are scrambling for the physical like never before?  That's probably because you are not reading through the headlines, which are always a form of misdirection.  

The headlines indicated that Ukraine wanted to keep it's Gold safe…. but I think we all know what really happened here… the Gold from Ukraine is headed for the same black hole of rehypothecation that Germany's Gold went down years ago;

Then there was Equador… which, according to this Fortune article, really pulled a fast one on Goldman Sachs…. rrrrrrrriiiiiiiiiiiiiigggghhhhhtt.

Then most recently India got into the game.. doing some swapping of Gold with the Bank of England.  Again, totally BS pretenses.. in this case pointing to yucky old impure Gold bars sitting on the shelf, which could have just as easily been sent to one of several refiners in Switzerland to get cleaned up… but no.

So, the game is pretty obvious….  The FED and the banks want Gold… need Gold.  Countries whose arms can be bent are being bent… and the physical Gold is being supplied, or outright confiscated.  The scramble is on.. but nobody is going to tell you that.  Instead, you will read the BS about liquidity and improved reserve asset quality.  The game is in it's final hours…. you are seeing it play out before your eyes.  Do you see it?  Shouldn't you want some physical Gold at least as badly as the bankers do?  Watch what they do… not what they say.    



  • Mon, Jul 07, 2014 - 09:35am



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    Got it

I saw all those same things, Jim.  I knew it was BS, and was alarmed: 1) "they" felt they should make a public statement at all; and 2) "they" told such paper thin lies.  I don't know what the "real" truth is, but I know it's NOT what "they" said.  Alarming.  Even while "they" are trying to be slick and unseen, I can see things continue to unravel and in the direction we've been seeing and expecting.   The "trend" is intact and accelerating.  Our appointment with the brick wall approaches.  

I tightened my safety harness and chin strap.


"Welcome to the Hunger Games. And may the odds be ever in your favor."

  • Mon, Jul 07, 2014 - 09:44am


    Bankers Slave

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    Thanks Jim H

for the heads up on the latest lies. Much appreciated.

  • Mon, Jul 07, 2014 - 01:08pm


    Quercus bicolor

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    Issues with Ukraine story

$1.8 billion in gold = ~40 tons / 40 boxes = 1 ton per box.  But the article claims that the boxes were moved by the men (by hand?  with a hand truck?  a pallet truck?  Was there a ramp on the back of the truck?) If they carried them by hand, 1 man per box, that would be 100, maybe a little more pounds per box = 2+ tons.

  • Tue, Jul 08, 2014 - 11:20am



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    Material Handling

The article doesn't say they loaded the plane by hand. One ton of gold in a box could be easily handled by a medium sized fork lift truck. With such a truck, 40 boxes could be loaded in a couple of hours.

They would need a pretty big airplane though. Max payload of a 747 freighter is 118 tonnes.

  • Tue, Jul 08, 2014 - 02:57pm


    Jim H

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    John Embry quote, re: India sovereign Gold shenanigans

One of the happenings I pointed to above is India's recent announcement about them selling off Gold.  Here is John Embry's take as posted today on KWN;

Embry added: “The head of the Reserve Bank of India said they are going to sell into the domestic market the bank's gold reserves held in India and replace them in the international market by buying gold and depositing it at the Bank of England.

That raised a red flag for me because in a world that is very short of physical gold there is something about this that is trying to rectify that situation.  Well, I dug into this further and found out that the head of the Reserve Bank of India received his Ph.D from MIT, taught at the University of Chicago, and then was the head economist at the International Monetary Fund from 2003 to 2007.

So this seems like a guy who is pulling the strings for the United States and I am very suspicious of this announcement.  I think this highlights that, as James Turk has brilliantly noted, there is a growing shortage of physical gold and the West is going to great lengths to attempt to get more gold into the market so they can continue to suppress the price.

But I’ve been noting a change in the gold and silver markets.  They are getting hit in the usual fashion and at the usual hours with massive numbers of contracts slammed into the paper market.  But the gold and silver markets seem to be quite resilient.

Gold and silver seem to keep bouncing back.  I’m not prepared to say yet that we are out of the woods but I agree with William Kaye that we are building toward the greatest short squeeze in history.  There are zillions of claims on what little physical gold remains in the Western world, and when this Ponzi scheme explodes, this is going to be something to behold.”

  • Tue, Jul 08, 2014 - 06:46pm



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    buyers vs no buyers


Attempts to cash in short don't work when traders at COMEX buy the dips.  Whether we go down depends entirely on whether or not buyers appear after a short assault.

I believe I've mentioned this once or twice.

I think its quite bullish, actually.  We're not depending on physical buyers in China anymore; traders at COMEX have decided they want to own gold and silver futures contracts.  And GLD too.

I'm not seeing the "shortage of physical gold" that Embry is seeing.  At least, its not manifesting itself in premiums anyway.  Usually shortages cause premiums.  We've seen premiums in the past.  But not now.

  • Tue, Jul 08, 2014 - 11:04pm



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Hello Dave,

I've noticed palladium has skyrocketed as of late but premiums have actually decreased.  I understand the supply situation with Russia but do you know why in this case, there is a shortage of palladium but the premium has actually dropped.  Thanks for your help.


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