I believe, it is no accident that these events are happening at this time. I believe the "behind closed door deeds" of the last 15 years may be about to come to light. If this is true, then the "gold Market" that we have known for years, is about to change.
The lack of any disclosure in the gold industry has led many to speculate on the true inventory of gold. This, rightfully so, has led to the greatest of all speculation on the true quantities of gold being held anywhere in the world. Be it central banks or government vaults, no one really knows the true owners of the gold inventories, if there is any gold in inventory. Bank officials and politicians could end all speculation, but they won't. Why? The answer to that will absolutely be answered in time. Personally, I believe, there was an overall feeling years ago that the need for gold had lessened. The role that gold was destined to play was only to be found in the ownership of jewelry. Maybe, at that time, this was a prudent position to have. With the reckless growth of credit, in all areas, be it private, corporate or government, this thinking has slowly changed. When central banks have the power to print paper, at their own discretion, then eventually, the whole fiat system, will inevitably come into question.
This is, I believe, where we have arrived to, at this point in time.
Inflation is inevitable. The deficits the world is running and the endless growing demands for oil will eventually surface and no amount of manipulation of the CPI will hide it. The people who have abused the system for years understand this.
The Rothschild's, I believe they made the absolute most of the situation. Yes, they set up the program of gold loans and hedging. They made untold billions being right in the middle. Here is where I differ with what I have read. I believe they are separating themselves from the rest of the pack. No one really knows who bought all the gold that hit the market for years. We know gold companies sold forward, central banks loaned their most valuable asset out at 1%, but we don't know who accumulated all this gold, at what could be unbelievably cheap prices.
Central banks show gold assets of 35,000 tons. They admit to 5,000 tons loaned out. What really has gone on? I believe insiders took full advantage of 1% loans, believing gold was dead as a currency. They figured gold companies should not be the only ones to benefit from 1% money reinvested at 5-6-7%, especially when they knew they could continue to drive the price of gold down, just by selling as much gold as it took to kill all rallies. For years this kind of thinking was profitable as could be. Especially when the thinking, gold no longer serves a purpose in the financial world, was becoming a fact of life.
They had a great game. They made billions upon billions. And the best part was, nobody knew and nobody could find out. Who actually borrowed this gold at 1%? Why would a bank loan out their only true asset at 1%? Iv'e asked myself this question for years. Now I believe I have the answer. They loaned the gold to themselves. Brilliant, but now payback time has come.
Why would France and Germany want to sell gold at this point in time? Simple, the gold is already gone! By selling, the entities who are short have an opportunity to buy a large quantity of gold and deliver it back to the vault thereby filling the terms of the loan agreement. This in turn would allow everyone to come out of their predicaments smelling like "the proverbial rose." The governments do not have to worry about the return of gold, as they will now show it as a sale, and the short will not have to enter the market and compete to purchase the gold thereby, risking moving the market. At the same time, creating, what appears to be, selling pressure on the price of gold. Great game if you can pull it off. And, it appears like they are achieving success with their plan. Inevitably, gold will resume it's upward path and the dollar will resume it's downward path. The only losers, will be the traders caught in the middle. All I can say to them is, "good riddance." The other losers, citizens of the countries who have allowed their bankers and politicians to sell them out! Case in point, the British. Looks like selling, half of their gold reserves was a great idea. Yeah, and France and Germany want to make the same mistake!
I still want to know who bought all the gold that hit the market for the last 15 years. Was it the Rothschilds? Are the remaining bankers, at the "old boys club" the victims or the culprits? Time will tell! As for me, I own gold because I'm scared to death to own anything else! As for the real reasons gold is being sold by banks and governments, I believe it is being sold for the sake of a few and not the well being of the citizens of the countries.
Something to think about!
26 April 2004