The Commodities Exchange died in 2012, yet very few if any failed to note its obituary.
Dr Jim Willie, a macro-economics analyst living in exile due to Jewish threats against his life, has noted recently that COMEX has failed to deliver any gold since June of 2012. Although we have reported this tidbit before, it is worth repeating.
COMEX operates a criminal enterprise where they advertise a gold market but in fact do not have one. Instead it trades paper. Anyone who attempts to take delivery of gold is either laughed at hilariously or forced to settle in cash.
The only functional gold market in the world is in China. To our knowledge, the London Bullion and Metals Association is also failing to deliver gold, but may be failing on an intermittent basis rather than on a permanent one. Bulk quantities of gold cannot be purchased for less than 50% over the fake gold price quoted in London.
Gold prices have been heavily manipulated through paper prices, but as so many buyers, especially Asian, have called the bluff on this fake fractional market, the price of gold has come under heavy pressure.
However, with Ft Knox dry as a bone - except for nerve gas - and London nearly depleted of gold - the price manipulation schemes are starting to fall apart. We have predicted in the past that gold would rise in 2013 and 2014 - and were wrong both times. But as the old adage goes, if you keep repeating your good or bad calls, you will eventually be right.
We believe that we were fundamentally correct, but tactically premature, not fully understanding the ability of the gold naked shorters' abilities to control the gold price. The recent rise in gold suggests that long term secular bull market in gold will resume.
If Willie's prediction about the establishment of a new Gold Trade Note comes to fruition, gold will most emphatically accelerate its ascent.
Copyright 2015 Tony Bonn. All rights reserved.