It’s beginning to look like the Indian Government’s latest attempt to suppress the amount of physical gold demanded by the Indian population is going to backfire – badly. Narenda Modi’s stunning withdrawal of 500 and 1,000 rupee banknotes has caused an even greater rush to gold. According to the All India Gems and Jewelry Trade Federation, Indian gold imports jumped up to 100 tonnes in November, the highest since December 2015.
It’s becoming more apparent that Modi’s initiative is being fueled by western bankers. It is widely acknowledged that the Bank for International Settlements (BIS) is directing the western paper gold manipulation scheme. Ragurham Rajan, the former head of India’s Central Bank, the Reserve Bank of India, was recently appointed Vice Chairman of the BIS. In other word’s, Modi’s move has BIS “fingerprints” all over it.
Make no mistake, the manipulated decline in the price of gold was engineered exclusively in the paper gold markets of London and New York (LBMA and Comex). China’s demand has spiked up to unprecedented levels – 131 tonnes was delivered onto the Shanghai Gold Exchange on Wednesday. In other words, between India and China alone, the demand for physically delivered gold has increased considerably.
As John Brimelow of John Brimelow’s Gold Jottings remarks, “if the Government had not sprung this stunt, stronger Indian buying [with the recent decline in the spot price of gold] would probably have stopped the [price] slide $100 higher and maybe discouraged some of the western [paper] liquidation.
One of the most glaring indicators that the price take-down has been driven by the western paper gold market is the divergence between the open interest in Comex gold futures and ETF physical gold holdings. While the open interest in gold futures is now down about 35% from its peak in early June this year, the gold holdings as reported collectively by physical gold ETFs is down only 5% from its peak. As Brimelow points out, “it was the surge in ETF [gold] outstandings in January which gave the alert that the move [in the price of gold] was serious.”
In other words, based on trading divergence between the western paper gold market and the behavior of the eastern physical bullion markets and physical ETFs, the price of gold is being controlled – for now – in the paper market.
Now is a great time to add to your physical gold and silver holdings, which is easier than it sounds with a number of gold retailers operating online such as nuggetsbygrant; click here to take a look at what’s available to buy. This price take-down is a gift from the elitists. The “shock and awe” price-hits when the Comex opens almost everyday are designed to discourage bullion buyers. In truth it reflects an increasing degree of desperation over what seems to be increasing “stress” being put on the ability of the west to supply gold into eastern demand. Trying to quash India’s demand is the easiest route because the Indian Government is a lapdog for the west.
As this effort fails, the rebound in the price of gold and silver will likely create its own “shock and awe.” In today’s episode of the Shadow of Truth, we discuss the Totalitarian movement toward a “cashless” monetary system and why accumulating gold is the best way to fight back.
I don’t know what you make of Benjamin Fulford? Some like him , some think he is nuts. But in his latest comment he claims that there is going to be an announcement in the next few weeks from senior Muslim clerics that will now say Islam does allow Muslims men to own gold as jewellery. In addition owning gold as an investment.
Have no idea if it’s true, but there are 1.4 billion Muslims in the world and if they start buying gold, on top the Indian Hindus, and the Chinese that may have an effect on the demand for gold.
Coming back here after a while, the PizzaGate insanity has been taking up a lot of time.
There doesn’t appear to be any fathomable bottom to the paper fraud markets at the moment. It’s literally a falling knife. When to catch it, should you catch it? It appears there is a plot to force the entire world’s population (or at least majority of global investment community) into the US Dollar & slaughter them all methodically. The manner in which US Dollar keeps rising makes NO SENSE WHATSOEVER.
I continue to sit on my marginable account of dry powder, watching this deterioration go on for so long, like shock and awe. They can push paper gold at least into 1000s at this rate, if not into 3 digits. I have no clue. I do intend to pull the trigger at an adequate point for a significant physical play. that much I’m serious about. Just like last year, I have a hunch the bottom may be reached in this month of December….perhaps as late as near New Year’s Eve.
Haven’t listened to the audio yet, but I think this was an extremely well written and informative article. Thanks.