News came out yesterday that India may lease the 200 tons of gold that was purchased from the IMF some 4 years ago. This speculation has come about because India’s Rupee has crashed and the central bank has tried everything to stop the implosion. They have pressed on the gas, stomped on the brake yet no slowing of their currency meltdown. The thought process is that the money received from these 200 tons could be used in the FOREX market to support the Rupee…good luck as they will be steam rolled.
So, why didn’t the price of gold get smashed? Why didn’t the price even go down…just a little? This is a whopping 200 tons! I say “whopping” because in reality it is only a ham sandwich in the scheme of things. If you recall, Cyprus blew up and was “bailed in” back in March-April. They had (have?) 13 tons of gold…and this 13 tons to be sold was used as the reason for gold going down $300+ in VERY short order! We of course know for a fact that the reason gold went down was because paper contracts flooded the market, this “13 tons” was merely cover and may not have even been sold.
My point is this, for gold to have been “collapsed” back in April based on the potential sale of 13 tons and then rally on the day after an announcement of a potential 200 ton sale has to tell you that something has changed. My guess is that “something” is the state of or availability of gold inventories to meet demand. The market is telling you this if you are listening, the monkey hammering of the gold price simply backfired. As a side note, how long do you think a 200 ton load of “gold booty” would hang around before the Chinese (or Russians) gobbled it up in its entirety? As another and more humorous side note, how long would this 200 tons take to deliver? 1 month? Maybe 2? Would the Germans be ticked because their 300 tons will take 7 years? Like they say, it’s not the first 200 tons that’ll get you, it must be that last 100 tons that’s “extra heavy.”
Ha, ha, ha: “…Like they say, it’s not the first 200 tons that’ll get you, it must be that last 100 tons that’s “extra heavy.”…”
I look forward to some more laughs at The Cabal’s expense, in recompense for these painful two years.
When paper gets flushed( like we saw in April) we have to wonder if it will all get through the pipe. If some of it backs up then the water in the toilet starts to rise. Gold paper price has a good base since there is the “poop of lies” wrapped around the sloshing of paper in the bowl. Get ready because rising paper prices are about to over flow causing a financial world of S%$T. I hope many of us have umbrellas because it seems like something is about to blow up and rain on us, and it will stink for a while!
Thanks Bill!
Well, if paper contracts was the cause. One must wonder how The gold experts did not see it coming?
if it was not paper and truly was the real deal then how is it possible that shortages arose from all of the “selling”? I’m sure you have a logical answer for this…maybe Armstrong can explain it to you.