“Criminal” Paper Derivative Selling Used To Crush Gold Market

Today a legend in the business told King World News that we are in the final stages of a war to push gold and silver prices lower and it is being facilitated through the “criminal” use of paper derivatives.  This is being done “… to destroy the psychology of people invested in this sector.”  Keith Barron, who consults with major companies around the world and is responsible for one of the largest gold discoveries in the last quarter century, also spoke about what is taking place behind the scenes in the war on gold and silver and shared a remarkable story about his father who was truly one of the first goldbugs.  

Barron:  “I’ve done some calling around to key contacts around the world regarding this gold and silver smash, and again it has to do entirely with the paper market, with options, and with large entities utilizing derivatives.

What’s being done here is criminal, but there won’t be any investigation by the SEC, CFTC or the powers that be because they are sanctioning it.  King World News often talks about a ‘War going on in the gold and silver markets,’ and people should remember that this is in fact a war.  It’s a war to destroy the psychology of people invested in this sector.  To destroy them mentally….

“This is a manipulation of the paper market, not of the physical market.  Gold is still being looted from the ETF’s such as GLD, and physical gold continues to hemorrhage from Western central bank vaults to Eastern vaults.  If they are selling in places like the U.S., you can be sure they are buying in places like Shanghai.  That’s where your physical gold is going to end up if you are selling today, is China.

We have already seen 6 or 7 of these types of declines since 2002, even though this one has been particularly long and brutal, but investors in the sector have to remain mentally tough and hang in there.

This is all part of a desperate effort by the West to collapse the psychology of smaller participants around the world, and even to shake up institutional players, but the reality is there is only so much physical metal around.  Physical gold is in very short supply, and eventually this game that is being played is going to end.  This action is being forced mostly through the use of seemingly endless paper derivative-related futures selling and options.

But as key entities are called upon for the physical gold, eventually this fraud will unravel because they will not be able to deliver the gold.”

Source: http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/6/21_Criminal_Paper_Derivative_Selling_Used_To_Crush_Gold_Market.html

The Gold Correction Is Not Over

Legendary commodity investor Jim Rogers has never been shy about vocalizing his opinions about the investing world. In particular, Rogers has an affinity for commodities like ags and precious metals. Gold has been one of the most talked about hard assets of the last two years, as the metal soared to all-time highs, only to watch its price take a tumble in the months that followed. All along the way, Rogers had been calling for a correction for gold, and it is a sentiment that he still holds today.

Gold In a Free Fall

Since making highs in September 2011, the price of gold has dropped nearly 30%, as equities have rallied and investor interest in precious metals has waned. This has all happened despite the current $85 billion monthly printing from Ben Bernanke and the Fed, which many thought would spark inflation thereby sending gold higher. Thus far, inflation has stayed low and the appeal of gold has simply faded, as investors have increased their risk appetites and sought higher yielding securities.

With the threat of QE ending and markets maintaining a bullish momentum, the outlook for gold looks more bleak as the days go on, fueling Rogers’ comments that gold has yet to finish its current correction.

Rogers on Gold

One of Rogers’ major sticking points was the fact that gold had 12 straight winning years, something that is unheard of for a commodity. In fact, the SPDR Gold Trust ETF (NYSEARCA:GLD) and iShares Gold Trust ETF (NYSEARCA:IAU) have never had a down year for as long as they have been around. 2013 is shaping up to be a poor yield for gold, and Rogers does not see it ending anytime soon.

“Until it scares a lot of people, the correction is not over. I would certainly like the correction to be over this afternoon and see gold go to $2,000 or to $3,000, but that’s not reality,” said Rogers. He did maintain that while he was not currently buying the asset, he also was not selling, as he firmly believes that gold will resume its bull market at some point over the current decade.

Thus far, Rogers has been right on the money with his predictions for gold over the last two years, granting more weight to his recent comments. If gold continues to fall over the coming months, it could be an enticing entry point for investors looking to time the bottom of this precious asset.

Source: http://www.minyanville.com/trading-and-investing/commodities/articles/Jim-Rogers253A-The-Gold-Correction-is/6/18/2013/id/50408

Chart Of The Day: When ETF Paper Beats Gold Rock

Demand for physical gold across the world continues to surge at an unprecedented pace leading India to blame its soaring current account deficit, sliding currency and even deteriorating economy on it (even if failing in its attempts to regulate demand for the yellow metal), and yet gold continues to slide. How come? One word – paper, or rather, ETF paper.

And more vividly, the combined holdings of GLD and IAU.

So, for now, paper does indeed beat rock.

Source: http://www.zerohedge.com/news/2013-06-18/chart-day-when-etf-paper-beats-gold-rock