|The Gold Illusion|
The gold illusion is that paper gold actually represents
solid gold whereas in fact the two are as far apart as Melbourne, Australia is
to London, UK.
This has never been more obvious as now where it can be seen
that Goldman Sachs & Co have accounted for over 93 percent of all ‘gold
sales’ over the past three months.*
In the report ‘I’ stands for issues, where the company
parted with solid gold. ‘S’ means Stops and indicates where the company takes
delivery of the gold. ‘C’ means customer’s
accounts and ‘H’ signifies house accounts. You will see that most transactions
end up at zero, meaning that there has been n-0 movement of actual gold. If any was delivered on a day it was gotten
back that same day. Some of the companies,
it can be seen receive more gold than they deliver, others less. Goldman Sachs, however, does not change one
iota. Despite crying about, how gold the
devils brew, it has not relinquished one golden ounce of the stuff this year to
J. P Morgan, on the other hand, has relinquished 1,966,00
troy ounces of gold over the past 3 months. 74 percent more than all the gold the
US mint delivered in 2012 in its American Gold Eagle program. (Note Feb, March and April).
Yet, a report by Tekoa Da Silva indicates that the Comex
Depository Warehouse Gold Stocks have been depleting over the past three
months. This does not gel with the Comex report and it makes one wonder if
there is any gold in the Comex at all and I cannot get rid of the notion that
this is a way of destroying the gold illusion and preventing customers from
demanding their gold be redeemed as the comex never actually had any physical
gold in the first place and now it can be said to be almost true.
According to chart sage Nick Laird, this
data indicates that:
“Eligible stocks which are owned in LBMA/Comex good
delivery form are being drawn down—which means they are being removed from
the warehouses. As to how and why they are [being] removed, that is a
mystery. [Up until now], eligible stocks were on the continual increase
throughout the bull market. Now that trend has changed.”
Meanwhile, while the US government is working furiously to
bolster confidence in the US Dollar, across the waters Europe and Asia are
taking full advantage of the contrived foot on the price of gold and buying it
In New Delhi the gold retailers are paying over the top in
order to mean increasing demand. as
customers grab every ounce of gold they can lay their hands on. Retailers are
paying 8 to 10 dollar premiums an ounce over and above the international gold
price, 4 to 5 times the average in normal peak times.
"We have not seen this kind of premium on gold imports
in years," said Suresh Hundia, president emeritus of the Bombay Bullion Association.
In Dubai it is a similar story. Frantic gold buying since April the 12 has
pushed up the premium retailers have to pay to ensure they retain sufficient
stock in this real gold rush with premiums touching 5 dollars an ounce.
The manic buying of gold jewellery at local shops since
April 12 is now pushing up the premium retailers need to pay to ensure they
have enough stock coming in on a daily basis.
Cyriac Varghese, general manager at Sky Jewellery said, “Since
the afternoon of April 12 gold retail sales shot up by nearly three times over
the next seven days and this represents the best phase for Dubai’s gold trade
in the last 12 years,” said. “But it has also led to pressure for retailers on
the inventory side and there is a bullion shortage – our instructions are to
snap up any supply so that stocks are constantly replenished. The last thing
any retailer wants to see is getting caught with insufficient stock at his
shops – if it means paying a steep premium then it will be paid.”
In New York the US Mint has suspended further sales of its
one tenth ounce American Eagle gold bullion coins due a ‘depleted’ inventory
giving rise to the notion that there is not as much gold in the US as first
Michael Kramer, president of Manfra, Tordella & Brookes
(MTB), a major U.S. coin dealer in New York, says they have been inundated with
orders from existing and new wholesale and retail customers.
"It's panic. This is one of the busiest times in quite
a while. People think gold's at the lows and they want to take advantage,"
he said in an interview."
The gold illusion is breaking down.
chart, the February 1 to April 25 delivered gold contracts includes only transactions between Companies. For that reason MorganStanley’s
307 contracts transferred from house account to customer
account was excluded from the calculations.
gold deliveries Feb 1 to April 25:
Financial – 1 contract
R J O’Brien – 2
ADM Investor Services INC – 2
Marex – 5
Citigroup Global Markets – 10
ABN AMRO – 110
JP Morgan – 19,660)