Show Me My Gold !

There has been a lot of noise about gold.

Bank traders are telling us to sell and that it is the end of the commodity supercycle which is of no surprise because of the bullion banks were the ones who profited the most from the gold price plunge in mid April. (Source : Business Insider – The Bullion Banks Have Made Billions On The Gold Price Plunge)

No wonder they are not complaining but  when my banker called me to suggest buying a put option the other day at 1,300 (when gold was at about 1,350), my suspicions were aroused.

So much for her assurance that my gold is sitting in vault somewhere in the world, I am reading that ABN Amro defaulted on gold deliveries just weeks before the gold price crash and that customers are, in other words, buying ABN credit if they are buying gold. Quoting an Examiner article, written over a week before the crash.

Over the past two months, there has been a concerted effort by the major Western banks to bring down the price of gold and silver, even as countries like Russia, Iran, and China continue to accumulate the physical metal in large quantities. Like the folly of betting against the stock markets when the Fed is pumping up equities with $85 billion per month, going against the J.P. Morgan silver short machine in the futures market has been a losing proposition for silver bulls.” The Examiner, 3 April 2013.

Many less public reports also acknowledge the JP Morgan’s shorts, along with the other banks.

“the gold and silver price management scheme is controlled by just three banks…JPMorgan Chase, Canada’s Bank of Nova Scotia…and HSBC USA.  But of those three, JPMorgan Chase is the tallest hog at the trough by far.”

Not only is gold up against JP Morgan, the Fed has been against gold since the end of Bretton Woods, as evidenced in Fed memos dating back to 1971.

“if the Fed does not control this core relationship, it would “easily frustrate our efforts to control world liquidity” but also “dangerously prejudge the shape of the future monetary system.”” Source : Zerohedge, July 2012

Knowing that the Fed is on their side, JP Morgan is quite willing to let their eligible for delivery gold fall to a dangerous record low,

All there is to lose is to head the same way as ABN, and declare cash settlement on JP Morgan credit.

Smart and the ultra rich investors who have the ability to control their gold are withdrawing their holdings fast.

“there is a scramble by many very wealthy European families/entities to get their 400 oz bars out of the big bank vaults”

“FACT #1: COMEX gold vaults were recently drained of 2 million ounces of physical gold in one quarter, the largest withdrawal of physical gold bullion from COMEX vaults in one quarter during this entire 12-year gold and silver bull. There has been speculation about the reasons that spurred these massive withdrawals of gold from COMEX vaults, but the most reasonable speculation is that no one trusts the bankers to hold on to their physical gold anymore”

“Silver fraud whistleblower and London trader Andrew Maguire stated that the LBMA* was having trouble settling gold contracts in bullion as well and stated that institutions that asked for physical settlement “were told they would be cash settled instead by a bullion bank.” (* LBMA : London Bullion Market Association)

Source :

I am not alleging any more than what others out there believe.

Telegraph UK : The Gold Price Crash Is Further Evidence Of Market Rigging , 16 April 2013.

I am just a worried little investor who does not have the clout nor power to fly to Zurich to collect my gold whilst reading articles that central banks have cut rates 511 times since 2007, and still have their printing presses full on, and I am being told by my banker now that its the end of the gold run and that I should be buying stocks and bonds instead.

The production cost of gold runs anywhere between USD800 to 1,200 for miners. Shut the mines ?

It just seems foolish to go head on against the central banks, too big to fail banks and all the clients they have under their control as well as the mighty Buffet who disses the idea of gold.

Looks like I will have to go down to the UOB bullion desk again and buy just a few more small ounces for my Armageddon kit that I am preparing for my son, well equipped with big and small pieces of, of course, gold because we really cannot expect him to chew off a 1 kg bar to buy bread when he runs out of the survival pills.

Trade : Long Gold 1400-1425, Target 1525, short- medium term. Med-long term target 1625.