They’re Burning The Furniture Now | Investment Research Dynamics.
Whenever destroyers appear among men, they start by destroying money, for money is men’s protection and the base of a moral existence. Destroyers seize gold and leave to its owners a counterfeit pile of paper. Francisco’s Money Speech – When Atlas Shrugged
Last night around 12:30 a.m. EST, $1.5 billion of paper gold was dumped into the Comex Globex computer trading system during one of the least liquid periods of trading in any 24 hour period. It was done when there was almost no resistance from the physical market. The two largest physical buying markets in the world were dormant when this hit occurred: India was closed for holiday observance and Shanghai was on its mid-day trading hiatus.
Dumping this enormous load of paper gold onto the market like this can only be done by an entity that has an agenda other than profit motive. Even if a big player wanted to establish or add to a short position to express a bearish view on gold, a position of this size would be carefully set up in order to maximize the price level received for selling-short the gold futures. Instead, a powerful entity who can easily absorb the likely losses dumped this paper gold on the market with the goal of manipulating the price lower.
To be sure, hoards of “little guys” in the U.S. seem to understand the real truth. The record buying of U.S. minted silver eagles – aka “poor man’s gold – during September and October bears witness to this assertion. As the western Governments force the price lower with phony paper gold and continue to loot all visible sources of physical gold in order to meet delivery requirements, it seems that the “hoi polloi” is fighting back by buying even more physical metal. It’s not just in the U.S. The Royal Canadian Mint reports its silver maple leaf sales on a lagged basis but unofficial reports suggest that buyers there have been wiping clean the cupboard. And a report surfaced out of Germany about a run on silver coins there by the public (LINK).
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