by Bill Holter, Miles Franklin:
I received quite few e-mails yesterday after Zero Hedge put this article out entitled “Is Obama about to crash the Gold market again?“ If you recall, President Obama held a similar meeting with bank CEO’s and agency heads back in April just before the drive by shootings of gold and silver on the 12th and 15th. The fear now is that we may be in store for a repeat.
I don’t think so. I wrote back to those fearful yesterday with a simple “Can you imagine the premiums and shortages this would create?” Since April we have seen premiums shoot higher for physical metal, we have seen shortages all over the globe and now we are seeing a backward basis in London’s GOFO rates (for the last 32 days and counting) as well as COMEX futures. Simply put, the plan backfired. It backfired so badly that the Bank of England apparently had to ship some 1,300 tons and another 800 or so tons was shipped from LME to Switzerland for “re” melting into bars that suit the Asian demand.
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