The Final Battle Between Paper And Physical Gold Is Underway – Where Will You Stand?

The Final Battle Between Paper And Physical Gold Is Underway, And The Line To Defend For The Cartel Is $1300 Per Ounce

One of the most significant elements in gold price determination is the technical data points that usually spark the central banks to summarily kill any rally, and work to suppress the price using billions in paper contracts.  We saw this most recently on April 21 when in less than 5 minutes, a bullion bank dumped over $2 billion in naked gold contracts, which is 20% of the global mining output for the precious metal.

But these desperate efforts are quickly beginning to fail, and have only a very short-term affect on a price that is strongly in favor of going much higher.  And just as quickly as the central banks and Treasury ordered their lackey banks to naked short gold to protect the dollar five days ago, the price rebounded strongly to actually close the day in the green by a few dollars.

In the newest publication put out today by Dr. Jim Willie, the esteemed statistician and analyst announced that with the opening of China's new price mechanism at the Shanghai Gold Exchange, the final battle between paper and physical gold is underway, and the last line of defense for the paper markets is to hold the $1300 price.

                                                 

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The Final Battle Between Paper And Physical Gold Is Underway – Where Will You Stand?

For the last year or more, not an elephant, not a gorilla, but a dragon has been found at the dinner table. Its breath has just made everybody at the table totally bald with some scorched red faces. Now all are looking at each other, wondering who will first mention the bald guys at the table. The Shanghai levers are finally functioning, starting with the Gold Fix and continuing with the RMB-based gold futures contract (which delivers gold metal oddly). The game is finally on, as in the climax chapter to the End Game.

Paper gold is totally disconnected from fundamentals. The paper charade is as impressive as it is corrupt. Its enemy is physical gold and related demand. Silk Road nations have strong gold demand, which will disrupt the entire geopolitical balance of power, extending from trade and non-USDollar platforms. The West has the corner on toilet paper used in the gold market. The United States has the corner on the USDollar, used in fraud and illicit tolls.

 

PAPER GOLD FRAUD

Paper Gold is a term used to describe the actively traded futures contracts which determine the gold price. Owning such paper instruments is not the same as owning physical gold bullion since corruption defrauds the investor and interrupts the claim. Most investors remain largely unaware of how disconnected the paper markets (COMEX in United States & LBMA in England) are from reality. The entire concept of contractual (paper) price discovery has been corrupted beyond all recognition. The activity in the last couple years has raised great alarm due to the rapid pace of divergence between paper gold prices and the tangible world fundamentals within the gold arena.

 

The claims of paper contracts per ounce versus actual gold has run to almost 300-to-1 in recent months. It was considered outrageous two years ago when at only 25-to-1 or 40-to-1 in ratio. Imagine the lunacy of even five to six people claiming ownership to your car or house, or better yet your summer cottage by the lake. The dominance of paper gold pricing mechanisms has resulted in profound shortages in supply, as well as horrendous conditions for mining firms. They have been forced to shut down marginal mines, since not profitable. Only a rare few among mining firms like Majestic Silver has undertaken to deny supply to the COMEX, and to call a partial strike against the criminal COMEX organization. Absolutely no equilibrium exists in the gold market, as demand outstrips supply, which quickly vanishes. The shortages have made history in recent months and years.

 

The Final Battle Between Paper And Physical Gold Is Underway – Where Will You Stand?

Paper Gold on COMEX and LBMA is a crime scene. It is toilet paper with gilded surfaces, better described as elaborate corrupt contracts with a few gilded letters at the top. Trading gold futures, which are essentially delivery contracts, must entail some degree of abstract financialization. If someone is merely trading a gold contract in order to arbitrage, then it would be costly, time consuming, and ultimately pointless to shift physical gold around. It is only the paper gold contracts that trade hands, not the physical metal on ramps. The banker cartel relies upon this hardship of movement to create the corrupt scheme. People do not wish to carry 80 silver coins in their pockets or a kilogram of gold in a suitcase, so instead they use certificates which become instantly corrupted. The necessary evil has grown far beyond its intended proportions, a practice refined and led mainly by the big banks.

 

Currently, the number of contracts on the COMEX represents 300 times as much paper gold as there is physical metal in the COMEX vaults. Moreover, this number has ballooned at a faster pace over the past two years or so. The 300:1 ratio of contracts to physical ounces is propped by powerful restrictions. The COMEX forbids delivery of gold on the ramps to satisfy a gold contract, under threat of banning the party from participation and entry in the door. Almost nobody takes actual delivery of their metal, except for the big Wall Street banks which steal gold from other depositors. These banks also routinely rig the windows to enable removal of investor gold in the GLD Exchange Traded Fund, and silver from the similar SLV fund. Imagine a gold futures contract with no delivery possible. How absurd! But it has been the reality since June 2012.

 

The situation is perhaps even more frightening in the London Bullion Market Assn (LBMA). This market sees $trillions worth of gold trades every day. The activity is truly baffling. On individual trading days, more gold changes hands within contract trading (paper shuffling) across the London market than all the available gold in the world. Yet no metal moves anywhere, in a grand charade. These are merely paper transactions, with almost no actual metal ever in movement. The staggering leverage and dilution should not make any sense to the rational observer. However, in sharp contrast, the Eastern nations are accumulating gold in large volume.

 

GOLD & SILVER PRICE REVERSALS

The gold reaction to the Shanghai market development has been muted. But a powerful reversal is in progress, which should be impossible to halt or to obstruct. An unsual pattern shows itself in an upward bias Cup & Handle toward a reversal, where the $1300 level is well defended.  – Jim Willie, Silver Doctors

 

The Final Battle Between Paper And Physical Gold Is Underway – So, Where Will You Stand?

The question is, will you sit by and let the opportunity to acquire real money, GOLD, for you and your family  pass you by?  The time is coming when you won't be able to afford a gram, not to mention an ounce at any price.  The clock is ticking. Where will you stand? You will not find a better quality, nor a better price, apples for apples, of Gold bullion, than you will at Karatbars.  The enclosed video will help you see and understand this fact.  Join the thousands of people around the world, who are securing their families with Karatbars GOLD.  Open your FREE Gold Savings Account, today.  Thank you for your time and attention, and please share this article with those, whom you love and care about.  I wish you much success.  

– L Basheer Hasan