Tuesday, July 30, 2013

Maguire: Absolutely, there's a Run on the LBMA & Gold Banks

First, if you are not up to speed on the GoFo rates, or have no idea what they are, spend thirteen minutes listening to Alasdair Macleod explain the current extraordinary situation and what it means for gold.

Interview starts at 13:04

Now, armed with that knowledge, listen to Andrew Maguire, also on the Max Keiser Report starting at 13:12

Clearly the Western central banks are in trouble. This is extremely important because if you believe gold retains its intrinsic value irregardless of fiat money printing going on around the world and bankster manipulation of the price of gold then you must conclude gold is very much under priced in the paper markets. This is well and good, but if manipulation was able to continue on forever you could stack gold for years and never benefit from an honest repricing of your gold holdings.

The end of that manipulation seems to now be coming to an end.

Investors who bought gold over the last several years at the manipulated lower price may soon be on the winning end as central banks and gold banks lose control. Keep in mind, this is completely unrelated to gold's value relative to fiat currencies that are being printed like crazy in an attempt to maintain the illusion that the world economy is still "normal and sustainable".  That also, is bullish for gold and should protect long term wealth from being devalued away by currency printing.

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