Saturday, June 16, 2018

US paper gold suppression allowing Russia & China to buy real gold at discount prices

What used to be referred to as conspiracy theory is now pretty well-known in the precious metals investment community:  western bullion banks suppress the prices of gold and silver by shorting COMEX futures contracts, inducing panic selling among buyers who are long the contracts.  Gold bugs insist the bullion banks are acting as agents for central banks--mainly the Fed, in an attempt to artificially prop up the dollar even as the greenback is being systematically debased by a profligate printing press, in order to fund huge U.S. government budget deficits.

But I've also posited that western bullion banks have accomplices--Asian central banks, specifically China and Russia.  While their motives for suppressing gold prices are different, their desired short-term outcomes are identical:  capping prices of the precious metals.

Recall I mentioned their respective motives are different.  The Fed attempts to mask dollar weakness by suppressing gold prices.  Asian financial authorities also want lower gold prices--but for a different reason:  they are accumulating gold, so they naturally desire lower prices.

The net effect is the transfer of gold (i.e. wealth) from western central bank vaults (leveraged shorting, i.e. selling of paper gold assets) to Asian central bank vaults and retail buyers in Asia, in the form of physical bullion.

The long-term impact?  The bankrupting of western central banks.

https://www.rt.com/business/429573-us-china-russia-physical-gold/