SoT Ep 16 – JamesTurk: The Gold In London Is Pretty Much Gone

I think London has been pretty much emptied out – I don’t think there’s a lot gold left in London that’s available for shipment elsewhere.  – James Turk, Shadow of Truth podcast – LINK

The rate of the flow of gold from western bank and investment vaults into Asia accelerated in the first quarter of 2015.   India just announced that it imported 125 tonnes of gold in March, more than double the amount imported in March 2014.  And 625 tonnes of gold was withdrawn from the Shanghai Gold Exchange during Q1, up 10.8% from Q1 2014.   In that all gold purchased in China – other than the gold purchased by the PBOC – must pass through the SGE, withdrawals from the SGE represent the China’s gold demand (not including the PBOC).   China only produces 400 tonnes per year, or 100 tonnes per quarter.  This means recycled gold plus imports must account for balance of demand.

Just from combined demand from India and China, there is a supply deficit of gold.  In fact, the global gold market has been functioning with a supply deficit since at least the mid-1990’s.  Frank Veneroso was the first analyst/consultant to figure this out based on conversations in his meetings as a consultant with the world’s Central Banks.   Veneroso predicted that eventually the price of gold would have to explode higher once the demand completely overwhelmed the supply.

GATA picked up on Veneroso’s work and began a campaign to educate the world about the western Central Bank schemes being used to keep the price of gold suppressed in order to prop up the legitimacy of paper fiat currencies.

James Turk has been a long time consultant to GATA and, in my opinion, knows as much about the global gold market as anyone.   Turk was the first analyst to look at the original GLD prospectus in 2004 and conclude that it was little more than paper gold:

The GLD prospectus is quite clear that the shares are not backed by gold.  It says the structure was designed to track the price of gold.

Rory Hall (The Daily Coin) and I hosted James Turk on our Shadow of Truth project.  We cover the latest developments in the Greece/EU saga, the condition of “backwardation” in the London gold market and the catastrophic level of debt globally.  We also discuss in-depth why GLD likely has very little physical gold sitting in its vault that is legally owned by the Trust and the reasons why the supply/demand deficit will lead, eventually, to much higher prices for gold.

I try to read/listen anytime Turk is willing to share his knowledge with the public.  This is an incredible interview with someone who I consider to be as knowledgeable about the gold market as anyone in the world (other than maybe BIS insiders).  We think you’ll find it time well-spent to listen to the entire podcast:

3 thoughts on “SoT Ep 16 – JamesTurk: The Gold In London Is Pretty Much Gone

  1. In his quiet understated way Turk makes it clear most western gold
    has now moved to the east which means the day of reckoning is fast
    approaching. No one could ever accuse James Turk of hyperbole so
    his well thought out comments carry a lot of weight with me.

  2. Dave, this was sent to me today and the analyst claims that
    the reason for the move lower in gold is the COT report.
    I have two questions. Does the COT report still carry enough
    credibility within a manipulated market ? I really get tired or
    mostly annoyed with all the price predictions concerning gold.
    I don’t think the dollar will just disappear overnight. Just kind
    of a slow burn. The price won’t matter in dollars because do
    you want to trade gold for depreciating paper? I put a link
    to the analysis below. If you find some time have a look.

    http://www.clivemaund.com/gmu.php?art_id=68&date=2015-04-12

    1. Clive Maund is a dope. The COT report reflects what the bullion banks want to public to see.
      Gold is manipulated using Comex futures, leased gold, hypothecated gold, LBMA forwards, and OTC
      derivatives. There’s not any one indicator other than the market price, which is well below what it
      would be if gold were allowed to trade freely.

      The catalyst that free’s the price of gold will also be a catalyst that makes life VERY uncomfortable
      for everyone.

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