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Silver Exchange

How China Intends to Take Down the Comex

by Dominique de Kevelioc de Bailleul, Beacon Equity.com:

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.’”

Click Here for the original source.

http://www.beaconequity.com/how-china-intends-to-take-down-the-comex-2011-07-07/

9 comments to How China Intends to Take Down the Comex

  • Lexi

    These are both scary and exciting times we that are awake are living in. Always great articles and info S.

  • tyler

    I think that the dollar will lose its status as reserve currency of the world in the next two years if not within the next 6 monthes. This will lead to a world wide run on the dollar resulting in a complete loss of confidence in the dollar as a safe store of value rendering it useless. Because i beleive this to be a likely scenario i would have trouble selling my silver regardless of the price. If anyone disagrees i would love to hear why.

  • Paul Prichard

    “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.”
    Yeah right, so what will the companies that use silver in their fabrication do when they have exhausted their stockpile of silver and are waiting weeks then months for silver to delivered ? How does cash settlement create equilibrium in supply/demand ? Can the futures market exist without the long side participants ?

  • In THE PROTOCOLS the kenites also brag how they will transfer the wealth of the World to China, and then, the kenites also brag how they will identify their kenite selves with the Chinese….

    Anyone that has not read THE PROTOCOLS…deserves to be ripped off, because in THE PROTOCOLS, they [kenites] also tell YOU how to protect yourselves and your wealth….

    Nothing today is a secret if you know where to look…or, the buzz words to put into the search engines – a reseachers dream….

  • cb15453

    @Richard Morgan: ‘The Protocols’ is largely regarded as fake. Propaganda created by the Russian secret service as retaliation for Jewish involvement in the Bolshevik Revolution. It contains text copied almost word for word from a publication from 1864: The Dialogue in Hell Between Machiavelli and Montesquieu by the Frenchman Maurice Joly. Besides Zionism does not mean Judaism, and vise versa. Do some research on the anti Zionist Jewish movement. Israel is, for sure, a morally illegal state but lets not bring this all down to hating on the basis of one religion over another – they are all a crock and largely designed to divert our gaze.

  • Victor Marsden translated THE PROTOCOLS, circa 1889[before the Russian Revolution - and they are in the British Museum waiting your inspection]…and, no where do I talk about Zionism, Israel, Hell, Judaism, or other related hate groups you throw in to cloud the issue and the truth….

    After one reads THE PROTOCOLS…they will know they are true, just based on the facts and the number of the issues [and platforms] that they [kenites] have already put in place and carried out…so, no one needs to, or has to lie about them, they speak for their self….

    Offer of Proof: Plug in THE PROTOCOLS into the search engine, read them, and then, tell me they are fake….

    • cb15453

      Apologies, sir, but your initial clouding of the issue in this post (China / Comex) by mentioning the protocols is what prompted my initial reply (last time I checked there were very few Chinese Jews – Jews are reported to have settled in China in the 8th & 9th centuries but in a distinct minority – to the point these days there are virtually none). Incidentally, I am not saying the protocols are fake – I am saying they are widely regarded to be – do your research… and fwiw I have read them… many years ago and, again in my opinion, your assertion about the ‘number of issues that have already been put in place’ is hugely open to interpretation.

  • I was pointing out that China will not take the COMEX down…the kenites that actually own the COMEX, pursuant to THE PROTOCOLS, will have the wealth of the world transfered to China….

    Again, do where do I talk about Chinese Jews, Jews – so, where did you get that ???

    Also – Why are you hiding behind a sham bogus name ???

    Offer of Proof: Where do you think the wealth of the World is going ??? because, THE PROTOCOLS say it is going to be transfered to China….

    ps: In China they are called Khazars – the sons of Cain [the first murderer]….

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