“Gold Prices Fall Just In Time For Diwali”

Holding physical gold and silver remains the primary hedge in preserving the purchasing power and liquidity of one’s wealth and assets in the difficult times ahead. The hedge needs to be held into and through the crisis, in order to provide its full benefit.  – John Williams, Shadowstats.com

I can’t figure out if the Fed/Wall Street bullion banks understand that every time they smash the price of gold with fraudulent paper gold contracts, it creates massive physical delivery demands in India and Asia.  But based on the market data in India/Asia, it would appear that the latest price take-down of gold has aroused the a sleeping gold giant in India.

The western banker gold cartel has made about a billion Indian really happy.  The paper gold price-management mechanism used to knock down the price of gold these past few weeks has stimulated a ground-swell of demand for imported kilo bars into India.

For the first time in several months, the ex-duty price of gold in India has been high enough to trigger heavy importing of kilo bars into India this past.  This is in addition to the heavy flow of dore bars and smuggled gold – the amount of which is completely ignored by the World Gold Council’s accounting of India’s imports.

The same is true for Asia:  “Individuals as well as business were picking up physical gold, as they see this pullback as an opportunity,” said Brian Lan, managing director at Singapore-based gold dealer GoldSilver Central – LINK.

As with every case of Central Bank/Government market intervention, unintended consequences always emerge to make the “problem” at which the intervention was directed even worse.   In this case, artificially lower gold prices have prompted a surge in eastern hemisphere buying.

These eastern Central Banks have been busy dumping Treasuries over the last 18 months.  It’s likely that they will use this opportunity to convert even more Treasuries into physical gold.

As John Brimelow, of the highly regarded “John Brimelow Gold Jottings” asserts:  “‘Someone” is going to have to work a great deal harder next week with China back and India in action, really for the first time this year both have been buyers.

7 thoughts on ““Gold Prices Fall Just In Time For Diwali”

  1. Interesting stuff as always Dave. Thanks for your good work. In these times it’s very rare to get any sense out of the MSM.My take on the Wests Central banking system letting all this gold go east for such low prices is two fold.

    1st they have no choice. If gold starts to rise there will be a huge run on the banks as people take their money out and buy gold. After all, they are getting a lousy interest rate on cash at the moment. (One reason some people have put their life savings into the stock market to get some sort of return.)
    2nd, I firmly believe that the elites think in time they will get rid of Putin and the Chinese govt, and replace them with Sorros puppets. Then, they can get the gold back…..just like Iraqs and Lybia’s gold. This of course means war, and who knows what destruction will take place? And there is no guarantee that they will get their people into positions of power in these countries. But I think they view Russia and China as just short term gold vaults. Keeping their gold safe for them. It seems insane to me, but nothing they do seems sensible.

    1. The U.S. will “get rid of Putin and the Chinese govt”?!

      Surely you jest. The only alternative would be that you are deeply out of touch with reality.

  2. As a former currency trader I remember central bank
    interventions when currencies were falling. The Japanese
    were notorious for always wanting to punish the speculators.
    If you traded currency for any length of time you knew to let the
    the central bank blow it’s wad thru intervention and then come
    back a day or two later and start selling again. It seems as if
    that same strategy will play out in gold and silver. It will just be
    a longer time line. Gold and silver will be much higher when the
    central banks run out of gold and silver.

  3. The U.S. will not get the gold back from Russia and China because there would be full scale nuclear war. There would be so much radiation in the air swirling the world that if you are still alive you will take a gun and blow your brains out.

    1. Fred & Tinky I don’t disagree that it would end in world war 3, but that doesn’t mean the crazies in Washington wouldn’t start it. Go read Paul Craig Roberts. Watch all these 4 star generals on TV claiming America can fight two nuclear wars with Russia and China at the same time and win. This is not what the people want. It’s been driven by the elites. They are happy to wipe 95% of the poulation off the face of the world if it means controlling the whole planet.

      Remember what the Neo cons wrote in their New American century document? America must have…… ” mass spectrum dominance of all land, all sea, all air, and all space.” They are quite open about their agenda.

  4. I had almost forgotten: Exactly around the same time physical exchange opens in Shanghai (after 1 week break), there is also the stupid election debate……An election which has entered an utterly farcical twilight zone stage of its own, almost in some different parallel universe. None of the mainstream media hacks are going to bring up any of new Hitlery Wikeleaks regarding her Goldman Sachs speeches.

    My personal preference is to completely ignore the election debate circus, and only focus on what happens on the Shanghai exchange & Asian market in general.

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