Despite Obvious Fed Intervention…

Jim Rickards made headlines today with an interview he did with Peter Schiff in which he claims that the gold held by the Fed is leased out several times over but is still sitting in the Fed vaults.  If that’s case, Jim, then how come the Fed won’t allow a physical audit.  If the Fed is going to perpetuate and legitimize a lie, at least show us the bars.   Sorry Jim, you’re propagating misleading information once again (see my comments below)…

The silver uptrend holds:

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The Fed and the big banks who are undeniably engaged in trying to hold down the price of gold and silver on a daily basis now, are having trouble getting silver to die.   The reason:  India and China have been buying physical silver hand-over-fist:

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The graph above from The SRSrocco Report shows the stunning 90% drawdown of  physical silver from the Shanghai Futures Exchange.   I can guarantee you that the amount of silver reported as being held by the big bank depositories on the Comex is probably in a similar state of condition.

Think you own silver when you own SLV?

More on Rickards’ disinformation:

Everyone knows the market is manipulated and the U.S. gold bars are all leased out. Nothing new there. But he’s trying to make us believe the bars are still in the vaults.

Sorry, they’re not. If the bars were in the vaults, the Fed would at LEAST add “credibility” to its cover-up by releasing bona fide physical audits.

Here’s the questions I want Rickards to answer:

1) Why won’t the Fed at least allow an audit – a physical count and random assay of the bars supposedly in the vaults? It could EASILY do that without revealing whether or not the bars have been legally hypothecated/leased.

2) Germany wanted to see its gold – it requested a viewing. Supposedly Germnay’s gold is being held in 9 vaults. But German officials were only permitted to see gold in ONE vault. Why, Jim?

Please address those questions. Once again Rickards is feeding the world misleading information.

12 thoughts on “Despite Obvious Fed Intervention…

  1. Schiff also says he doesn’t believe gold and silver are manipulated, but clearly he knows because he is good with numbers and can see trading activity. Why doesn’t he come out and acknowledge it?

      1. Agreed. He doesn’t seem to put too much effort into highlighting the fact that his old man is languishing in an American dungeon over trumped up tax avoidance charges. Why is that?

  2. Schiff and Rickards both enjoy appearances on the major media outlets, and rely on them to hype their books, brokerages, etc. How long do you think those would last if they crossed those lines?

    1. Schiff could help change and repair our system. He has that kind of visibility. Either he’s been told explicitly to stay away from the truth, or he was castrated at a young age.

  3. Jim Puplava has also changed his tune about gold and silver being manipulated. He used to have GATA on all the time for interviews and talk about it being manipulated. Now he has on lots of Keynesians saying the economy is improving and that metals are not manipulated.

    1. Puplava is a joke. Used go to his site a lot 2001-2004. Then decided he was no value-added. Now he’s negative value added.

  4. I deeply believe that the gold and silver markets have been rigged. Men like Mike Maloney, Bix Weir and Andy Hoffman, etc., have repeatedly over the years been enlightening us on how the markets are rigged. That is the main reason why they would never be invited by the main stream media. It makes sense, doesn’t it? For Peter Schiff and Jim Rickards, they surely know that the gold and silver prices are “fixed”. If they ever admit it, they will forever disappear from the TV screen!

  5. Seems an odd that Jim Rickards would not understand how gold leases work. A central bank leases gold to a bullion bank which takes delivery of the metal then sells the metal into the market. It then takes the funds received and lends the money or invests in higher yielding investments. They will also hedge their gold position in the futures market to protect against price movements in the gold price. Current gold lease rates are less than 0.5% (see kitco chart: http://www.kitconet.com/charts/metals/leaserates/au_go_0030_lsb.gif).

    So if US treasury gold or German gold has been leased it has been sold into the market and maybe transformed by a refiner into bars, coins or granules (which then get made into jewelry). So potentially that 1oz gold bar you just bought may have once been part of German government owned 400oz bar.

    At the end of gold lease the central bank can request the same weight and fineness in gold (gold is fungible so the same bars do not have to be returned) back or roll over the lease for another fixed period.

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