Today whistleblower Andrew Maguire told King World News that Eastern Central banks have purchased a staggering 580 tons of physical gold in just the last 7 trading days. This means Eastern Central banks just purchased a stunning 25% of the world’s annual gold mine production in just 7 trading days. This was the largest purchase of physical gold during any 7 trading day span in history. Maguire, who recently appeared in the CBC production “The Secret World of Gold,” also discussed the brutal takedown in the gold and silvermarkets as well as the disappearing inventories in part one of a series of written interviews that will be released today.
Maguire: “The lower these prices are set in the paper (gold and silver) markets, the stronger the physical buying becomes. But it’s totally unsustainable. And given the incredibly bullish COMEX structure now, and the global market underpinning, these paper sales just cannot continue any longer.
Officials have not been selling any physical gold for many months now….
“However, by manipulating the gold price lower through the foreign exchange interventions, they’ve succeeded in forcing 600 tons of ETF redemptions, COMEX capitulation, and drawn in an unprecedented level of fresh managed money short supply. This has now successfully allowed the bailout of the bullion banks to the point where they have been able to get net long (gold) futures. The two primary bullion banks that we all know about are net long.
Today whistleblower Andrew Maguire warned King World News that the massive flight of gold out of the LBMA “has now become a major threat to the Western central banking system.” Maguire, who recently appeared in the CBC production “The Secret World of Gold,” takes KWN readers around the world on a trip down the rabbit hole once again in part two of a series of extraordinary written interviews that will be released today.
Maguire: “The question that keeps coming up to me is how long can this paper market selling continue? How can it continue to drive price when at the same time we are actually seeing such a massive transfer of physical underway into the Eastern trading blocs?
This recent heavily margined forced capitulation was absolutely Fed-induced. And the only short-term goal of this was bailing out the defaulting bullion banks. If you remember, we talked about this back in April after ABNAMRO exposed the whole LBMA system to a probable default. This was a (major) crack in the system….
“The result of this official intervention: There’s a tradeoff involved here because it’s tipped the balance and irreversibly broken the relationship between the paper markets and the global physical markets now.
The majority of all traded volumes are actually paper gold in the far less transparent over-the-counter foreign exchange markets. People believe it (the manipulation) is all happening on the COMEX, but it’s not. This (over-the-counter trading) is actually much more of a tool for the Fed and the Bank for International Settlements (BIS) than directly intervening in the COMEX.
With enormous volatility in key global markets this summer, John Williams, of Shadowstats, just released an incredibly important report which contained an ominous warning. This tremendous report also had a powerful chart as well, and King World News wanted to pass it along to our global readers:
Here is the ominous warning from John Williams of Shadowstats: “U.S. Dollar Remains (the) Proximal Hyperinflation Trigger. The unfolding fiscal catastrophe, in combination with the Fed’s direct monetization of Treasury debt, eventually (more likely sooner rather than later) will savage the U.S. dollar’s exchange rate, boosting oil and gasoline prices, and boosting money supply growth and domestic U.S. inflation. Relative market tranquility has given way to mounting instabilities, and severe market turmoil likely looms, despite the tactics of delay by the politicians and ongoing obfuscation by the Federal Reserve.
This should become increasingly evident as the disgruntled global markets begin to move sustainably against the U.S. dollar. As discussed earlier, a dollar-selling panic is likely this year—still of reasonably high risk in the next month or so—with its effects and aftershocks setting hyperinflation into action in 2014. Gold remains the primary and long-range hedge against the upcoming debasement of the U.S. dollar, irrespective of any near-term price gyrations in the gold market.