by Chris Powell, GATA:
Dear Friend of GATA and Gold:
Zero Hedge reports tonight that the gold ready for delivery from Comex warehouses against Comex gold futures contracts has fallen to the lowest amount on record, leaving 207 ounces in paper gold claims for every ounce of real metal ready for delivery:
Your secretary/treasurer would like to believe that this signifies that the gold available to the paperhanging market riggers is nearly exhausted and that the exchange will resort to cash settlement within hours. But to believe this you would have to believe that Comex data is accurate and not contrived to give false impressions; that the U.S. government won’t keep advancing official-sector gold through its agent bullion banks as necessary; and 3) that such advances aren’t easily implemented by, among other mechanisms, borrowing custodial gold from the vault of the Federal Reserve Bank of New York and moving it across the street (or, rather, under the street) to the vault of JPMorganChase & Co., the U.S. government’s agent in all sorts of surreptitious market interventions.
Yes, if, as many of us suspect, the paper gold game has been terribly overplayed and will implode eventually, as the London Gold Pool imploded on March 15, 1968, then the Comex will declare force majeure and that will be the end of gold futures in the United States and gold market rigging by the government will either cease or, more likely, come out into the open, through an upward revaluation of gold by international agreement or confiscation of gold by the most threatened governments.
With infinite time, other things may happen as well: Christ may come back, the Dodgers may return to Brooklyn, and the mainstream financial news media may investigate government intervention in the gold and commodity markets.
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