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Tuesday, December 22, 2009

The Gold that ain't there

There are increasing signs that the gold being traded on exchanges is simply not there. This has been a charge of the folks at GATA for some time, but has been ignored by the regulators and central banks..... unsurprisingly, as the central banks and big investment houses are behind the manipulation.

What is interesting is how many large entities are demanding physical delivery of gold. This clearly has the markets worried. There was a panic at the end of September at the London Metals Exchange (the world's largest gold market) when several large participants refused generous cash settlements and instead demanded physical delivery of bullion. There was simply not enough gold to deliver and the exchange had to deliver bullion they "borrowed" from the central banks.

If you have investments in GLD or SLV, or other so called "paper" gold market instruments, be aware that all you may really have is paper. The situation in silver is, if possible, worse than gold.

Here is a nice link describing the above

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