The Fed Bailed Out The Comex With Hypothecated Gold
I’m not a usually one who’s beheld a poignant boost in a volume of anti-gold promotion flooding a financial media. Here’s a ideal instance published by Bloomberg News usually today: Gold’s Technical/Fundamental Trend Is Down
Of course, zero could be serve from a truth. You tell me, does this draft demeanour “bearish:”
This graph does not simulate today’s spike aloft in gold. The U.S. financial media has turn disinformational in proportions that would make George Orwell or Joseph Goebbels glow with embarrassment.
Another vicious elemental non-static abandoned by a financial media – and even Koos Jansen for that matter – is deliveries onto a Shanghai Gold Exchange. Yes, withdrawals are a ultimate barometer of Chinese direct for bullion – reduction a PBoC’s demand, of march – and Koos has finished shining work on that. But bullion can not be withdrawn if it is not initial delivered! As it turns out, usually this week alone smoothness volume onto a SGE has totaled 115.4 tonnes. John Brimelow of JB Gold Jottings describes this volume as “impressive.” Especially deliberation that a financial media and dolts like Scott Bauer would have us trust that anniversary direct in China is low. Clearly complete disinformation.
Avery Goodman has created a square for Seeking Alpha that describes because it appears as it a Fed – around JP Morgan – bailed out a Comex from delinquent on bullion deliveries underneath a Jun contract. we trust Avery’s essay is 100% accurate formed on my 15 years of researching, trade and examining changed metals trade on a Comex:
In an essay antiquated Jun 1, 2015, we forked out that COMEX clearing members had gotten themselves to a corner of a widespread default on earthy bullion smoothness obligations. They faced net claims of 550,000 troy ounces opposite usually 370,000 purebred ounces left during a COMEX warehouses. That left a scarcity of 170,000 ounces, or 5.29 tons of gold.
That same day, JPMorgan Chase (NYSE:JPM) eliminated 177,402 troy ounces of bullion into COMEX purebred bullion stockpiles – usually adequate to cover a shortfall during maturity, and some additional to cover a additional shopping that always happens during an normal smoothness month. All this raises a question: Did JPMorgan Chase usually rivet in a bailout identical to John Pierpont Morgan’s 1907 bailout of a New York City banks?
You can review his whole essay here – each avowal he creates is 100% accurate and verifiable: The Fed Bailed Out The Comex
I wrote during a duration usually before initial notice of deliveries that a open seductiveness station for smoothness was scarcely high. I also suggested that a bullion banks would conflict bullion and require as many of those longs to sell as possible. I also suggested that a Comex would find a approach to equivocate smoothness default. Both of my predictions were fulfilled. Avery’s essay explains how smoothness default was avoided.
Courtesy: Investment Research Dynamics