Goldman’s Gold Delivery – Real Or Paper?

My good friend and colleague, “Jesse,” of Jesse’s Cafe Americain wrote an insightful and piercing commentary on the Comex report from last night showing that Goldman took delivery of 442 contracts on the other side of JP Morgan.  Supposedly it was for Goldman’s “House” account.

This would make sense in light of the fact that Goldman ALWAYS takes the other side of its research recommendations – in this case Goldman is quite bearish on gold.  The problem is, as Jesse points out, we will never know for sure if Goldman took delivery or real gold that will moved from JP Morgan’s vault to wherever Goldman safekeeps its valuables.

HOWEVER, in light of an interesting news report just hitting the tapes that King Salman of Saudi Arabia is visiting the White House next week – news of which Goldman no doubt had insight knowledge – perhaps Goldman has been loading up on real physical gold ahead of this meeting.  Why?

This is pure speculation on my part, but I suspect that Saudi Arabia is going to start trading their oil in yuan.  The Chinese are clearly dumping dollars know and they are making it clear that their preferred method of trade settlement is to us yuan.  Perhaps the good King will also let Obama know that they are losing their appetite for buying Treasuries.

The petro-dollar is being dismantled systematically by the non-US vassal world – i.e. the eastern hemisphere, for the most part.  It would make sense that entities like Goldman with access to real inside information would be loading up on gold ahead of an event like this.

The dollar won’t collapse, it will just vanish  – Jim Willie

2 thoughts on “Goldman’s Gold Delivery – Real Or Paper?

  1. Goldman cannot have much time left before it , like Deutsche Bank within the past week, admits that the Fed has been horribly wrong, and that markets are just rigging by central banks. Or they won’t be around to say anything anyways.
    Good to know that you and Jesse are on top of these things. Maybe someone will ask
    the Saudi King why the widely traded spot oil contract was up 10.75% today.
    Now many other commodities did also rise, such as copper.
    And silver, up nearly 3%. But are not oil and silver currencies too? Hmm.

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