4 months ago

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#silver #gold #economy @economy_news (economic news)
This, to me, is the fundamental 'reason': Gold represents wealth, gold symbolizes currency, and gold is perceived in such a manner by the most pivotal entities across the globe. They exploit the Western suppression of COMEX to provide camouflage for their procurement. If I desire to purchase a COMEX contract, which amounts to 100 ounces, to safeguard my holdings in my storage facility, I merely require around $7,000 in my margin account, thereby gaining control over nearly $200,000 in gold value. If I represent a commercial or a central bank with $500 million in my margin account, I wield control over $15 billion in gold on COMEX. I can forge any semblance of reality I wish, and this has been the scenario for an extended period.

There exists a concept in economics referred to as Gibson's Paradox, which delineates the inverse correlation between real interest rates, which have been dismal, and gold prices. And if one aims to sustain artificially low manipulated interest rates to forge a facade or a mirage of economic health as we have for an extensive duration, then it's imperative to suppress the proverbial 'canary in the coal mine,' which in this case, was the price of gold.

Nonetheless, suddenly, the most dominant, affluent banks globally are not just acquiring at unprecedented levels, but also retrieving it from the exchanges and Western central banks. Thus, from a very fundamental perspective, this is the rationale behind the necessity to possess it: because the most dominant, affluent, and informed traders worldwide are verbally stating one aspect while their actions signify another, amassing it as though it bears significant importance.

Hence, on a very basic level, the wealthiest entities globally suggest you should possess it, through their deeds rather than their statements, and they're utilizing manipulated pricing to provide camouflage for their dollarization and procurement. This is the rationale behind the need to possess gold. Yet, the paper market remains the dominant force, undeniably. However, I could contend its efficacy in continuing this trend is diminishing swiftly.

The London Metals Exchange serves as a prime illustration: they possess nearly the minimal quantity of silver in the exchange reminiscent of their 140-year history. We've observed a significant depletion of gold and silver from the COMEX market. Where in 2020, this group, known as 'the others' on the COMEX, emerged unexpectedly. In 2020, there were traditionally only two categories of reportables on what is termed the Commitment of Traders report. Each week, the exchange discloses the positioning of the largest traders, and it was always limited to the commercial banks and the specs, or hedge funds. That was the extent. Then, suddenly in 2020, they introduced a new category of reportables they denote as 'the others.' I surmise these are sovereign wealth funds and exceedingly affluent family offices who are depleting the exchanges alongside the central banks to such an extent that in one year, in 2020, we witnessed more silver being delivered than in the preceding decade combined. They extracted more gold in 2020 than the Bank of Japan possesses in their official reserves.

And these patterns, both in what's termed 'exchange for physical,' where one can acquire a COMEX contract and convert it to physical in London, and/or the depletion of COMEX, have reached a point where we're witnessing the second-lowest level of silver in the 'register' category in the history of COMEX, and significant reductions in gold as well, in a marketplace that was never intended to function as a delivery mechanism. This is why suppressing the price is becoming increasingly difficult because when the price is suppressed, sovereign nations and sovereign wealth funds stand ready, thinking, 'Alright, we'll accept delivery.'

Therefore, the delivery, or the prospect of extensive delivery from the exchanges, in a scenario where the availability of metal is dwindling on these exchanges, signifies we're approaching that critical moment. Look, for these players, manipulating a market by pushing it in the direction it was already headed when no one desired gold and silver was straightforward. It was simple to suppress gold prices. Now, it transforms into a highly perilous endeavor."
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