Hypothecated Gold: A Paper Chase

Featured, The Calandra Report / By 
"Gold, silver and the miners are back 
on the bull market track. The buying 
opportunity of the past couple of weeks 
seems over, although great values 
continue to abound in the juniors."

-- Brien Lundin, New Orleans Investment Conference*
Revalued Bullion = Debt Savior
Cyrille Jubert’s Derivatives Case

TCRs, I rarely forward gold pieces that seem too technical … or  hypothetical.

This one by Cyrille Jubert appears worthy. Here.

 

Also: GATA.org‘s Chris Powell below and his timeline of revalued gold. Exemplary.

It was the Bank for International Settlements (BIS) in Basel, the central bank of central banks, that orchestrated “paper gold” (derivatives), dating back to the London Gold Pool of the 1960s, Jubert explains.

Essentially: an alchemical invention of paper gold to allocate bullion in central bank accounts worldwide.

TCRs, we could be on the imminent edge of the world gold market blowing up as hypothecated gold gets called, and delivery can’t be made.

I asked Chris Powell at GATA.org to weigh in. Chris did weigh in. It’s heavy.’

Chris’s GATA dispatches fill in the media gaps of a 50-plus-year cycle of gold price suppression by the world’s largest central bankers.

Here he is verbatim:

“Jubert’s analysis fits the facts and makes sense. Decades of central bank gold price suppression policy have been based on the creation by central banks, through their bullion bank agents, of vast supplies of derivative gold — paper gold — that is, imaginary gold designed to discourage investors from taking delivery of real metal. This policy has created a huge and uncoverable short position in the metal.” — Chris Powell, Gold Anti-Trust Action Committee

 

Chris, who has tracked this hypothetical gold for more than two decades, continues:
Chris Powell will be at the New Orleans Investment Conference in two weeks.

 

“A few years ago when many central banks began tiring of the excessive deficit spending and debt issuance by the United States, they turned from gold sellers and lenders to gold buyers to protect themselves against dollar devaluation and they persuaded the Bank for International Settlements to reclassify gold-in-hand as a Tier 1 asset, equivalent to U.S. treasuries and cash, for which commercial banks would not have to hold collateral in order to comply with solvency regulations. This legitimized a switch out of treasuries and back into gold as the ultimate money, money without counterparty risk.”

 

Chris continues: “As London metals trader Andrew Maguire noted again in his report on Kinesis Money’s Live from the Vault program last week — https://www.youtube.com/watch?v=C239-FX-YKU&t=1529s — this reclassification commenced the worldwide gold revaluation that some analysts long had been anticipating for debt-devaluation purposes. See also:http://www.gata.org/node/4843 — Seven-fold gold.”

 

More references: hypothesized by Paul Brodsky and Lee Quaintance; that all major central banks are “probably working together on this revaluation through the BIS,” Chris Powell explains.

 

“As gold researcher Jan Nieuwenhuijs and financial letter writer Luke Gromen recently have reported, some central banks, including the Federal Reserve, already have established gold revaluation accounts to do the job.”

 

Chris concludes: “I imagine that gold revaluation also may commence another 50-year cycle of gold price suppression by the central banking cartel at a higher and more sustainable price level, and another 50 years of mainstream financial news organizations and analysts refusing to cover the story.”

 

Thanks Chris.

An alternative view this morning from Rudi Fronk at Seabridge Gold SA SEA:

“High forward short sales force covered by spot purchases would move gold towards backwardation. (A higher price for immediate, or spot gold vs. futures gold.) We see no evidence of that. Open interest is somewhat elevated but not unusually so. Daily volume is up but not huge.” — Rudi Fronk, Seabridge Gold

Seabridge Gold Investor today on its X feed: “We continue to think the next move up in gold will be sparked by a liquidity event in global credit markets which will force the Fed (and other central banks) to provide liquidity.”

 

 

For my part, to quote strategist Rick Rule:

“I own gold because I’m afraid it will go to $5,000; I own it because I am afraid it will go to $7,000.” — A Rick Rule audio interview by CEO Technician here.

* Brien Lundin‘s Gold Newsletter tags Fireweed Metals FWZ & Luca Mining LUCA as two favorites. I own neither.

 

— Thom Calandra

Thom Calandra is a writer and an investor. Research and material are meant as editorial opinion. He is not a professional investment adviser. Please do not consider his reporting as a recommendation to buy or sell securities.