Thursday, November 16, 2017

Eventually the paper gold price manipulation will have to end as miners and refiners are reporting shortages throughout industry

By now we have seen the evidence going back to the 1970's of the U.S. creating and then using the paper futures market as the mechanism in which to control gold prices.  But as the reserve currency itself begins to see cracks due to economies such as Russia, China, and now even Saudi Arabia ready to end the Petrodollar system, any paper security denominated in dollars has the potential to collapse if he world no longer wants to trade in the U.S. currency.

So with this geopolitical gambit well underway, we can also look at a secondary issue occurring in the gold industry that will one day soon validate the real price and value of gold, both in financial systems and as a monetary commodity,  And this issue is tied to the growing shortages taking place with the metal itself.

I travel constantly, and I was in Shanghai meeting with the largest gold dealers in China. I was also in Switzerland not too long ago, meeting with gold refiners and gold dealers. 
I’ve heard the same stories from Switzerland to Shanghai and everywhere in between, that there are physical gold shortages popping up, and that refiners are having trouble sourcing gold. Refiners have waiting lists of buyers, and they can’t find the gold they need to maintain their refining operations. 
And new gold discoveries are few and far between, so demand is outstripping supply. That’s why some of the opportunities we’ve uncovered in gold miners are so attractive right now. One good find can make investors fortunes. 
My point is that physical shortages have become an issue. That is an important driver of gold prices. - The Daily Reckoning
This issue with real supply for physical gold can also be the driver we are seeing right now in the gold markets that are helping to keep prices rising despite the fact that demand is down 8% for the year, and the bullion banks are still flash crashing the market through the dumping of naked short contracts on a weekly basis.


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