Andrew Maguire, the man who in Nov. 2009 told U.S. authorities of a silver manipulation scheme in progress led by the Fed through its primary dealers JP Morgan and HSBC, said China’s new Pan Asia Gold Exchange will overwhelm the manipulators in the gold and silver market and create a historic short squeeze in those markets.
In an interview with King World News, Maguire said he believes the rapid rise of China’s middle class will force the pricing mechanism in the precious metals markets to shift to the PAGE, and away from the Comex, where the manipulation continues.
“The launch of this new gold and silver exchange has flown under the radar, but certainly has my attention,” said Maguire. “I firmly believe we are marking a pivotal point that will in very short order affect current precious metals price discovery dynamics.”
And those dynamics “will ultimately destroy the remaining short positions in both gold and silver,” leaving the scheme exposed to the world as another example of a broken, desperate and corrupt U.S.-led global financial system. China poses as the largest threat to dollar hegemony, which now includes the Achilles heal of that privilege—the bullion market.
For decades, the Comex and its cohorts at the LBMA have controlled the precious metals market, and was a regret of former Fed chairman Paul Volker that he didn’t control the gold price more during his inflation battle during the 1979-82 period of runaway consumer prices.
But that control is about to collapse, said Maguire. He expects the 1.3 billion Chinese, who, until 2009 have been banned from owning gold and silver in the People’s Republic of China, will overwhelm the global bullion market now that the Chinese people can buy gold easily through their local bank.
Because of the difficulty of unloading $2 trillion of debt assets in time before a dollar collapse, Beijing has decided to take a page out of Mao’s playbook instead.
“China is keen to diversify their cash holdings and is also encouraging citizens to make investments in gold and silver,” Maguire continued. “The Pan Asia Gold Exchange is another step in this direction by opening up ease of access to physical gold and silver to their bank customers. This physical backed exchange is going to be a big game-changer.
“Just look at the scale of this to get an idea of how massive this game-changer will be. The Agricultural Bank of China has over 320 million retail customers and 2.7 million corporate customers and has integrated its customer account information system with this platform.”
Maguire suspects that bullion analysts have not factored in the China effect slated to hit the market in the coming years, a variable that could push the Comex to resort to cash settlement in a similar manner to the London Gold Pool in March of 1968, when it collapsed.
“I believe the leveraged and naked existing short side concentration in silver will be blind-sided by this,” added Magurie. “In my opinion it will create a massive short squeeze.
“None of this potential new physical demand has been factored in by analysts and I expect a large and unanticipated draw down of physical gold and silver over the next few months, ahead of the international contracts going ‘live.’”
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