by Dave Kranzler, Investment Research Dynamics:
One of Japan’s largest global precious metals trading companies, Mitsui Precious Metals, is closing down its operations in New York and London by the end of 2015. Note that it will maintain its operations in Tokyo and Hong Kong – interestingly: Mitsui Pulls Out Of NY, London.
Mitsui is one of the largest business groups in Japan and one of the largest corporations in the world. “When in doubt, pull out.” In my view, this move reinforces the growing global fear of the massive paper to physical gold/silver leverage embedded in the NY/London banking system.
Remember, we are able to assess only what might be available to back visibly traded paper gold and silver derivatives (Comex futures, LBMA forwards). And reported inventories are based on reports submitted by the bullion banks and Central Banks. Do any of us really trust these bank reports as reported without visual confirmation and independent audits?
In fact, I will go as far to say that any analyst in this sector who presents any analysis and commentary based on bank-generated gold/silver inventory reports that does not stipulate up front that any and all information is based on reports that may or may not be accurate is thereby presenting invalid analysis.
And, too be sure, all analysis that can be reasonably issued in entirely incomplete because it is impossible to assess the realistic exposure of OTC precious metals derivatives. Even the banks who issue these opaque securities likely are in the dark.
I would suggest that Mitsui’s move pull out of the NY and London – thereby joining Deutsche Bank and Barclays – is symbolic of the world’s increasing perception that the New York and London financial markets are the biggest Ponzi schemes in history. At the very least, it suggests that the world of growing weary of the fraudulent paper gold and silver markets on the Comex and the LBMA.
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