– 500 Tons of Paper Gold Dumped on Friday, What’s Next? (Liberty Blitzkrieg, April 14, 2013):
I wish I knew the answer to the above question. As of the last year or so, I admittedly have not had a good feel about the direction of gold and silver prices. I always thought that as things got more severe and more terminal, the prices of assets we see on our screens would be more and more quite intentionally disconnected from the reality on the ground due to increasingly aggressive, desperate and coordinated action by the power structure. Looking back, it seems this really got underway in the fall of 2011, shortly after the U.S. treasury market was downgraded and gold shot up to over $1,900/oz. I have gradually recognized my inability to call things in such manipulated financial markets, which is why I decided to step away and offer less commentary on these topics as things play out in the end game.
I do not think it is at all coincidental that Bitcoin and gold (two currency threats to Federal Reserve power) both got smashed within a couple days of each other. In the case of gold, it was a day after Obama had a private meeting with all of the key bankster oligarchs that 500 tons of paper gold, or about 25% of annual production was sold on the market.
As such, I think the interview below from Marin Katusa of Casey research is a great listen for anyone wanting to take a step back and look at the market. Enjoy!
Consider the 500 tons of paper gold sold on Friday. Begin with the question, how many ounces is 500 tons? There are 2,000 pounds to one ton. 500 tons equal 1,000,000 pounds. There are 16 ounces to one pound, which comes to 16 million ounces of short sales on Friday.
Who has 16 million ounces of gold? At the beginning gold price that day of about $1,550, that comes to $24,800,000,000. Who has that kind of money?
What happens when 500 tons of gold sales are dumped on the market at one time or on one day? Correct, it drives the price down. Investors who want to get out of large positions would spread sales out over time so as not to lower their sales proceeds. The sale took gold down by about $73 per ounce. That means the seller or sellers lost up to $73 dollars 16 million times, or $1,168,000,000.
Who can afford to lose that kind of money? Only a central bank that can print it.