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Paper vs Physical|
Or Ponzi pretend vs real.
As well as gold and silver (and platinum but not palladium so much), other commodities have been hammered as well as equities in a pump and dump and even bonds have seen a dip. This is the bogus "risk-on; risk-off" where the banksters pump and dump all asset classes as one so that retail investors have nowhere to run and nowhere to hide. Only residential property is not pumped and dumped because they want the sheeple borrowing $200,000 for a $50,000 shack.
Clear evidence of manipulation is the disconnect between physical demand and dumping of paper by the institutional banksters playing with other people's money: The metal touched $1,268.70 an ounce earlier today, the cheapest since Sept. 16, 2010. Physical demand was “again aggressive yesterday, and overnight, in Europe,” according to Kitco Metals Inc. a precious-metal refiner and research company in Montreal.
- Gold Rebounds in New York After Slumping to Cheapest Since 2010
The "official" paper gold price is obviously nothing more than a fiction which is why physical prices add on a hefty premium with the record demand: Central banks in the ‘ignored’ part of the world shopped up a storm as well, purchasing 109.2 tonnes in Q1, for the seventh consecutive quarter central bank purchases were over 100 tonnes.
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Vietnam’s 20% however is nothing compared to those seen in some stores in China. Ned Naylor-Leyland estimates that coin, bar and jewellery shops have been selling at 24% premiums.
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These ever-present, and increasing premiums are leading many to now speculate over the ‘two-tier’ gold market. Where prices appear to be set in the paper gold market, ie COMEX, but it’s another story when it comes to physical gold.
We all know which markets is ultimately boss – the physical one.
In the graph below, courtesy of Koos Jansen, we can see that the demand for physical tonnes to be delivered on the Shanghai Gold Exchange is reaching global production levels.
- Taking the blinkers off the gold analysts
The last time there was this farce of a dual gold price was during the 1960s, when the London Gold Pool collapsed.
The only excuse the banksters have is the supposed tapering. Yet there are two dissenters and on opposing sides of the argument: Mr Bullard said it was a mistake to raise market expectations of an imminent wind-down of the programme.
Explaining his decision to dissent from the central bank's policy decisions for the first time, he claimed the move would damage the Fed's credibility at a time when core inflation - a proxy for long-term inflation trends, currently running at 1% - was well below the Fed's 2% target.
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Another committee member also dissented from the statement, but for the opposite reason to Mr Bullard. Kansas City Fed president Esther George expressed concern that the Fed's bond buying would destabilise financial markets.
- Stock markets stabilise after sharp falls
These are not genuine opinions, just propaganda designed to confuse the retail investors.
Jim Rogers says the smashdown hasn't ended yet. But he may be referring ot the duration rather than the price level. Although the major miners have been guilty of selling gold forward at a loss in the 1990s and calling it "hedging", it is unlikely they would sell forward lower than the cost of production, which is where gold and silver is now : Golden Minerals Co. announced that it has suspended operations at its Velardena mine as of June 21, 2013, in order to conserve the asset until operating plans and prices for silver and gold indicate a sustainable cash margin for operations.
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In February 2013 the company anticipated the Velardena operations would achieve operating cash neutrality during the third quarter 2013, assuming gold and silver prices of $1,600 per ounce and $30 per ounce, respectively. In May 2013 the company projected a $5 million negative margin from the operations for the remaining three quarters of 2013 at prices of $1,500 gold and $25 silver.
- Golden Minerals Announces Suspension of Production
If they can herd enough sheeple out of gold, they may even let it bounce back much higher.
You also have to ask why the NYFED has asked Germany to wait seven years for 300 tonnes of gold (which, in the absence of accounting fraud, is supposed to be just sitting there gathering dust) when India alone has imported that much in just the last two months.