I get a call from a close friend in NYC last Friday. His career has been in private wealth management in the private bank department of the Too Big To Fail banks. He’s been looking for work and chats with old colleagues all the time. He called my Friday and told me he just got off the phone with a very high level private banker from a big Euro-based TBTF bullion bank, but who was at JP Morgan until about six months ago.

This guy told my friend that there is a scramble by many very wealthy European families/entities to get their 400 oz bars out of the big bank vaults. He knows this personally, for a fact. He said the private banker community is small over there and the big wealthy families all talk to each other and act on the same rumors/sentiment. The Bundesbank/Fed and the ABN/Amro situations triggered this move. He knows for a fact JPM tried to calm fears about 3 months ago by sending a letter to it’s very wealthy clients assuring them their bars were safe, in allocated accounts. He said right now those same families are walking into the big banks like JPM and demanding delivery of their bars or threatening to take their $100s of millions in investment portfolios to competitors. His wording was “these people are putting a gun to the heads of private banks and demanding their gold.”

I know this information is good because I know my friend’s background and when he tells me his source is plugged in, the guy is plugged in. Not only that, my friend’s source said that there’s no doubt that someone like a John Paulson, not necessarily specifically him, but entities like him or it may include him, have held a gun to GLD and demanded delivery of physical in exchange for their shares.

…what we are now seeing is the final stages of the paper gold/silver bullion market,
 which has grown at a parabolic rate over that last 13 years, and includes Comex futures, LMBA forward contracts, OTC derivatives – which is an even bigger paper market than the Comex – leased gold claims/contracts and warehouse receipts.

At some point there will be an even bigger “run on the bank” by those looking for delivery of the physical gold/silver that they have been “assured” is sitting in their “trusty” bank custodian vault. I know for myself that I have seen enough from the JPM’s of the world to not trust anything they do or say. I think a lot more people are finally coming to that same conclusion. At some point there will be a complete collapse of trust in the paper monetary system and the price of gold/silver will really go parabolic, as the masses realize all at once – and far too late I might add – that everything that was rumored over the last 13 years about paper gold, gold leasing, etc is actually true.

Gold manipulation backfiring on West

Perhaps the irony of what Western banks have accomplished is finally settling in. As they suppress the price of gold, they’re helping Eastern nations accumulate at their manipulated prices. This is happening even as Western currencies are dropping in value, threatening massive inflation in coming years. If this trend progresses, gold’s price won’t only go up; the yellow metal will shift to Eastern shores, strengthening Eastern currencies in the process.

Make no mistake: This is a shift of wealth from West to East. The only recourse Western bankers have is to begin accumulating. But to do so will mean they must allow gold to run its course — a course that very well may be straight up in value. It’s a catch-22. Suppress gold and watch it flow eastward, guaranteeing the ultimate demise of Western economies; or accumulate, which will necessitate greater drops in the value of Western currencies. Either way, gold’s going up.


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  • stonehillady

    This is what I thought all along especially from people like Paulson calling Jamie’s & Blythe’s Bluff ! That was the reason for JPM 2/3 rds. Comex exit. The manipulation has to end when the large Gold bugs of the wealthy want it NOW…….!

    • David Galvin

      I agree, brother. We always knew this time would come, but we are now witnessing it unfold. PMs will go parabolic within the next 1-2 years. Maybe sooner. Definitely no later than 2 years. We are witnessing history. “We” meaning those awake. The sheeple have no clue.

      • Moishe

        The sheeple can not afford it.

      • stonehillady

        sister, stone hill lady. Also found out India might have made a CALLED delivery from Bank of London, Nation’s charter called for 85% of it’s Gold state side, had only 47% rest was in London, made a demand !

  • charlestonvoice

    please post a re-dacted copy of the letter

  • doublenickel

    I can’t believe these wealthy, supposedly sophisticated clients have stuck with JPM all this time! I’m just a little penny-ante dude and I saw the handwriting on the wall when JPM took over WAMU and I transferred my account to a local credit union. What’s their problem?

  • WinstonSmith

    All I care is that the prices stay low, long enough for me to buy more silver…maybe some gold. Anybody investing in paper, deserves to lose their (paper) money. My only fear is that at some point, it maybe hard to convert metals into currencies, without getting ripped off. AZ voted to have metals used as tender, but didn’t regulate HOW! Basing the value on “spot” prices doesn’t work. I have coins and tried to sell some to several of those “We Buy Gold” places, and they offered HALF of spot for an US Eagle! Luckily, the coins have more value on EBay, which hasn’t been affected by the spot declines.

    • Moishe

      I buy from a local Jeweler who sells to me at spot,I will not sell any.

  • Moishe

    I am still buying silver and have a good amount of gold

  • semper fortis

    do you people know anything of the gold discoveries in the 90’s in Australia?
    you people DO realize that a motherlode was found in 1991 in eastern Australia Perth being closest city. ONE VEIN of the lode has MORE GOLD than BELIEVED EXISTED in the WORLD before that time.
    WHY do you think GOLD was SO Low!!!??

    • Mike

      Given that Perth is in West Australia, I’d suggest your claim is rubbish…

    • Bilderberg CEO


  • semper fortis

    I meant western Australia.

  • Thorstein Veblen

    So how’s that gold going guys?

    remember, as the article says ” Either way, gold’s going up.”. May 6th, 2013