Wednesday, May 15, 2013

Gold Default In Progress 100:1 Leverage > Enron


It looks like the paper ‘raid’ otherwise called April continues into May. Never mind that there is NO depth to the physical precious metals supply any longer, there is plenty of unbacked paper!
While physical demand is on a 1:1 basis, the paper supply is easily 100:1. Let’s skip the cartoon shows called MSNBC, CNBC and their ilk and consider:
- London continues to deliver physical bullion at a blistering pace.
- Shanghai appears to be ‘out’ of bullion.
- GLD has dropped 300 tons YTD.
- COMEX vaults are down 100 tons YTD.
- JPM keeps juggling their ‘eligible’ and ‘registered’ inventory to keep from running out.
- China imported 220 tons in March alone.
- Indian demand is UP, but only 10% of bullion orders are being filled.
To badly paraphrase a wiser head than mine: "If you want to hold paper bullion, why NOT cut out e middleman, save time and money, and just flush your fiat down the toilet?" CIGA Rico
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