What's in the Vault?

Better late than never, but Euro Capital is finally coming to the same conclusion gold bugs have for years:  the Fed and western central banks have artificially suppressed paper gold prices--with the assistance of the bullion banks.

The price suppression scheme is backfiring, however, as plummeting paper gold prices have encouraged Eastern and emerging countries to hoard physical gold at discounted prices, further draining the West's vaults of physical bullion.  The paper traders may sell in an effort to limit losses, but the physical buyers become more emboldened by lower prices.

Since price manipulation is unsustainable over the long-term, this suppression scheme will end badly for the naked shorts, as it sets the stage for a humongous short squeeze.  As the shortage for physical bullion intensifies, both covering shorts and longs piling into physical gold and silver will drive prices into the stratosphere--at some point in the future.

http://news.goldseek.com/JohnBrowne/1375807115.php