Post by midwesterner (banned) on Jan 16, 2011 14:05:53 GMT -5
Now that JP Morgan has been exempted from the new positions limits and is (in my opinion) running the White House through their man Daley, new Chief of Staff at the White House, I think the growing dichotomey between actual physical demand and supply and the nefarious super concentrated short positions by the US and UK central bank primary bullion operative banks will become increasingly sharp.
As Western Bullion Banks Manipulate Paper Market Down: Asia Experiences Physical Metal Tightness and Premiums Jump.
Asia and much of the rest of the non-US/UK central banking community and national interests are aware of the manipulative practices and are beginning to understand the game these few giant bullion banks with all their "above the law" interventions into the gold and silver markets and how to wait for the raids and then buy at the tail end of the attacks, hold and wait again.
The world is slowly awakening to the fact that in a world of currency backed only by ever increasing debt that gold and silver have a major and historically validated role in the reserve currency equation. Its simply that the US with the help of the UK and previously France and Germany have been doing everything possible to make the world forget that the most reliable money in history, is that which is incorruptible, limited in supply and univerally appealing, i.e. gold and silver. They've done and continue to do it through clandestine and in my opinion completely illegal market manipulation through their operative primary dealers and affiliated supporting banks to the central banks. The general public is gradually awakening to these nefarious operations and also the increasing risk that these ever increasing and totally unrepayable debts. This awareness is just one of the factors fueling demand and despite the daily capping and MOPE, has been and will continue to put pressure on the exchanges as demand for physical silver and gold increases. Rather than implementing meaningful reforms and regulations for OTC derivatives and other financial instruments, the CTFC excludes the largest even the watered down position
The Financial Times article referenced in this GATA dispatch post below is evidence that what I have said before hand is the truth: www.gata.org/node/9511
Post by midwesterner (banned) on Jan 16, 2011 14:08:38 GMT -5
Gold Prices Buoyed by China Demand
A spike in gold buying by Asian investors has created a scarcity of investment-grade gold bars in the region, supporting prices even as Western investors trim their holdings.
Traders said that gold sales to China had jumped 30 to 50 per cent since Christmas, driving the cost of kilo bars in Hong Kong more than $3 per ounce above the market price of gold, the highest level since 2008 and an indication of the tightness in the physical market.
"Physical demand has rocketed in China at the start of the year," said Walter de Wet, head of commodities research at Standard Bank.
The wave of Asian buying has propped up gold prices at about $1,360 a troy ounce, traders and analysts said.