Wednesday, June 19, 2013
This "shortage" is abnormal and impossible, because unlike all other commodities (raw materials) gold is not consumed, not just because it is treasured. So has the ratio stock-to-flow (stock overflow) highest of all, and along with silver, which ranked second, thus become monetary precious metals, real money then.
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This week the blog "In Gold We Trust" (At the Golden confident), the Dutch Koos Jansen , published a graphic eloquent in which it becomes clear what we have noted in this space: the West has become the "land of fantasy "Gold, meanwhile, is being physically delivered hundreds of tons in the Far East ... where no return.
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In the figure above, with monthly data, the yellow bars represent the global gold production as reference (1134 tonnes a year to date), the red, gold deliveries in the Chinese stock market Shanghai Gold Exchange (918 tons. ) and the blue, deliveries at COMEX States ( Commodity Exchange , only 103 tons.).
Obviously, the "investors" in America (and in general in the western world) are playing mere speculation on paper , without the physical delivery, while others more experienced in Asia are betting on value investing with the physical metal .
Sure, the first by mistake or omission, have forgotten one of the premises of the investment in precious metals: if not in your hand are not yours, and probably only exist in the imagination.
Not surprisingly, the peak of the graph is in April this year, when the attack orchestrated in the futures market ("gold" paper), with which 400 tonnes were sold in just two days (12 and 15 April ) contributions collapsed as had occurred in more than three decades.
The worst part, however, will end the market manipulators themselves aureus, as to scare away "strong hands" smart investor, unleashed a veritable fever for the orofísico that does not stop especially in India and China.
This means that in the future, it will become more and more difficult to meet the delivery even in the COMEX market, because gold is "running out" to pass into the hands of holders, either by fears of a resurgence of inflation or deflationary crisis will not be willing to sell their treasures, and less, at a bargain price.
This is not merely an opinion, not a perception.
The current status of "backwardation" (when the spot price is higher today than purchase a futures contract, and not vice versa as is normal) in the gold market tends to become permanent. This means in simple terms that the metal is "low" and that plaintiffs prefer to pay a premium to buy it today, a mere promise of cheaper later delivery.
This "shortage" is abnormal and impossible, because unlike all other commodities (raw materials) gold is not consumed, not just because it is treasured. So has the ratio stock-to-flow (stock overflow) highest of all, and along with silver, which ranked second, thus become monetary precious metals, real money then.
The only way that this lack of metal is present, it is fair that is happening: some forks are more reluctant to deliver a high value giveaway price, and others even though the price rise, nor alienate it is their shield against the disastrous effects of the deflationary crisis coming.
In this regard, recall that in this space we have informed the manner in which the stock of gold in the vaults of the COMEX, have declined dramatically in recent months.
Harvey Organ reported this semanaen his blog that"customer inventory JP Morgan remains extremely low (in only) 136.380 ounces", so we recommend that you remove all the gold before a new and imminent fiasco explodes.
However, what should concern more who think their gold is safely kept with them, is the legend that "fine print" the Comex has put his reports gold and silver stocks since last June 3 ( translation):
"The information in this report is taken from sources believed to be reliable, however, the Commodity Exchange, Inc., rejects any liability whatsoever regarding its accuracy and completeness. This report is produced for information purposes only. "
Scandalous. The inventories that claim to have, could be a lie.
"Healing health" as the Comex, is perhaps more causes emptying their coffers, because as we discussed in Global Financial Intelligence, there is no gold to reach for all who believe him in the role.
It is not difficult to foresee that, when the critical moment, the West-East tensions escalate to the maximum extent when, for the inevitable weight of deception, the house of cards fall and collapse the futures market. then everyone will begin to ask ? who has taken our gold?
All this will finally open the Bank of Mexico and claim eyes while there is time, the 120 tons of gold in our reserves that are supposed to protects the Bank of England in London ?
Hopefully, these tensions do not end on a major war, it is well known that, despite warnings, politicians always tend to blame the journalists, "speculators" and foreign misfortunes that they have created and then created distractions that come with the war.
Happens or not is confirmed once again that people and their families should take preventive action at the individual level. The alternative-trust that the government will do the right things to protect the people, never tried to be a good idea, especially now .
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