Kaye: “The paper gold price has been driven well down. We’re nowhere close to when gold peaked above $1,900. We’re in the low $1,400s as I speak now, Eric.
So price has gone down, but what about volume (in gold)? Well, I can tell you that volumes in China year over year are up four to five times. I can tell you that volumes in Thailand, a similar amount (to China, up four to five times).
Volumes in India, despite an increase in taxes, and despite the fact they are making it more difficult for average people in India to acquire gold, all of the dealers that we talk to who deal into India tell us it’s the same experience as China. It’s up four to five times....
Continue reading the William Kaye interview below...
“Now that’s really interesting. Show me another bear market where demand goes up as prices collapse. You can’t. It hasn’t happened in history. So what that confirms is this (drop in the price of gold) is all mythology.
The Fed is the only entity that would actually have both the financial wherewithal, and the ability to totally disregard risk to achieve a strategic agenda of reinforcing the notion that the US dollar is a solid currency, which it is not. And deliberately suppressing, with their agents the bullion banks, the price of gold.
... It strongly suggests the central banks themselves do not have unencumbered, eligible, deliverable gold. Because if they did they would have a huge incentive, instead of engaging in the outright manipulation of the paper market that’s taking place, to simply lend out that gold to agent banks like ABN AMRO so that the system stays in place, so that no one has to default and create the potential for a buying panic.
So the fact that didn’t happen, and this manipulation occurred in its place, tells you that there just isn’t deliverable gold in the system. This crash occurred, the single event of great importance, and I think Andrew (Maguire) talked about it in the interview with you, was the sudden appearance on the day that prices collapsed of a naked short sell order for 400 tons of gold.
Who has 400 tons of gold? Goldman Sachs reportedly entered that order, but they don’t have 400 tons of gold. Who has 400 tons of gold? If 400 tons of (physical) gold is just lying around somewhere, why couldn’t ABN AMRO borrow it? Why did they have to default?
That was the first sign that this was the new strategy, and we (central planners) are going to engage in the wholesale raid, the wholesale manipulation of the precious metals market. We’re just going to scare the public out of this thing, destroy investor psychology, and we the elite, the insiders, will acquire more at these cheap prices. And if the downside is there is a redistribution of tangible wealth from West to East, so be it. So to sum up, Eric, this is a criminal conspiracy.”
The information above was part II of a written interview series which will be released today with the outspoken hedge fund manager from Hong Kong. Kaye, who roughly 25 years ago worked for Goldman Sachs in mergers and acquisitions, discusses the desperate situation Western central planners face in the physical gold market, and what is happening with global demand and the plunge in available inventories. The incredible audio interview with William Kaye is available now and you can listen to it by CLICKING HERE.