Embry – This May Create A Massive Upside Breakout In Gold
Embry: “What I am focused on right now is this whole paper gold market and the fact that the gold in the banking system has been hypothecated and rehypothecated so many times that nobody knows who owns what.
We’re seeing more and more evidence that the market is getting tighter and tighter, and I believe there will be a run on physical gold because of this. When these various people and entities find out they don’t really own the gold they think they do, there is going to be an amazing reaction….
CME Executive Chairman Terrence Duffy on Gold “They Don’t Want Certificates, They Want the Real Product”
CME’s Terry Duffy: “What’s interesting about gold, when we had that big break two weeks ago we saw all the gold stocks trade down significantly, we saw all the gold products trade down significantly, but one thing that did not trade down, was gold coins, tangible real gold.That’s going to show you, people don’t want certificates, they don’t want anything else. They want the real product.”
Jim Willie CB – Gold Trade Settlement and $7000.00 Gold
The world reacts by searching for a USDollar alternative, since the removal of the Gold Standard has crippled the world and permitted widespread fraud. The new standard will usher in the new Gold Trade Standard.
Largest Dutch bank defaults on physical gold deliveries to customers
Last week, a rubicon was crossed in the precious metals market as one of the largest banks in Europe defaulted on their gold contracts, and informed their customers there was no physical gold available for delivery.
ABN AMRO, the largest Dutch bank in the Eurozone, issued a letter to their gold contract customers of failure of delivery, and instead will pay account holders in a paper currency equivalent to the current spot value of the metal.
ABN AMRO, the biggest Dutch bank, has sent a letter to its clients stating that they will no longer be able to take physical deliveries of the gold they have bought through ABN. Instead they are offered money at the current market rate for gold. Basically, instead of owning a risk free, physical asset (a gold bar or a gold coin), the bank’s clients now own a monetary claim on ABN AMRO, being exposed to the bank’s credit risk.
CME Just Defaulted on a 200oz Gold Contract WITH THEIR exCEO!
An American futures exchange without even an ounce of physical for one of their own? ~1 week at most until the crash:
“Signs of extreme physical tightness in the gold and silver markets continue to intensify, with reports of banks and firms refusing their customers physical delivery of their own bullion increasing nearly by the hour.
The latest report comes from the CME’s former CEO Leo Mahlamed, who reportedly was refused delivery of 2 gold contracts Tuesday! Mahlamed attempted to stand for delivery of 2 April gold contracts (a measly 200 oz), and according to reports from the floor, the CME reportedly refused to physically deliver 200 oz of gold to its former CEO, and would only provide Mahlamed a warehouse receipt!”
Maybe its related to this upcoming event organised by the other side for May 1st:
Gold Rout for Central Banks Buying Most Since 1964: Commodities
Central banks bought the most gold since 1964 last year just before the collapse in prices into a bear market underscored investors’ weakening faith in the world’s traditional store of value.
Nations from Colombia to Greece to South Africa bought gold as prices rose for an 11th year in 2011, highlighting the reversal of a three-decade-long bout of selling that diminished the world’s biggest bullion hoard by 19 percent. The World Gold Council says they added 534.6 metric tons to reserves in 2012, the most in almost a half century, and expects purchases of 450 to 550 tons this year, valued now at as much as $25.3 billion.
“They sell at the wrong time and buy at the wrong time,” said Walter “Bucky” Hellwig, who helps manage $17 billion of assets at BB&T Wealth Management in Birmingham, Alabama. “They aren’t traders. They are looking at it as a long-term holding, as an ultimate reserve currency. With the benefit of hindsight, they tend to get it wrong more often than not.”
The U.S. and Germany are the biggest owners, with gold accounting for more than 70 percent of their total reserves. Both kept holdings little changed in the past decade. The U.S. officially values its bullion at $42.2222 an ounce.
Ronald Stoeferle: “Last Week We Were Really Close To A Default of The 130-to-1 Paper Gold Market”
I had the chance to reconnect today with one of the young emerging leaders of the gold market, Ronald Stoeferle, publisher of “In Gold We Trust”, the world’s definitive annual report on gold.
During this fascinating interview, Ronald spoke to what contrarian buyers are doing right now, and further explained, “the point of maximum pessimism” has been reached, to where in response, staggering physical demand nearly broke the leveraged paper gold system over the last week.
Starting out by commenting on the ugly sentiment displayed at last week’s European Gold Conference in Zurich, Ronald said, “If you compare the situation at the hotel bar to last year and the year before…[patronage] increased dramatically—so people were really frustrated. From a psychological point of view, it was a really interesting time to attend a gold miners conference…[because] last year’s sentiment was already extremely negative, [but] this year it was just horrible…I think this was a gathering of the last [remaining] gold bulls in Europe.”
Roberts says gold smash protects QE; Embry says gold default has begun
Gold buyers forced to go on waiting list
Gold buyers are having to wait up to six weeks for their bars and coins after a price dip led to increased interest.