This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Paper-Gold Holders Flee to Real Metal

We now have an explanation for the massive selloff in paper gold that not only is perfectly consistent with the facts but also comes with a perfect motive -- which sprung into existence at the exact moment that the paper gold liquidation began...sort of.

At this point any readers still wearing their rose-colored glasses are urged to remove them to get a very close look at the dates involved here.

As we all know, the choreographed Cyprus Steal was perpetrated in late March. However, both the liquidation of paper-gold holdings and the collapse of gold inventories (i.e. the flight out of paper gold) began in February.

Isn't this extraordinary? We have our governments creating and announcing the risk for any/all holders of paper assets held in financial institutions in late-March. And we have the Big Money responding to that sudden threat to their wealth (in a very dramatic, and very obvious way) in February.

How do we know that it was the Big Money that was dumping their paper gold at the fastest rate ever and swapping it for real metal? Because the gold ETFs are structured to only make it possible for large unit holders to "take delivery" in this manner. Small gold holders are unable to access the Comex "physical" inventories. The fact pattern makes it crystal-clear this is Big Money on the move.

Already the cacophony of the media apologists can be heard. This is a "conspiracy theory!" Yes, and one with a very interesting "precedent" of its own. As all those who have closely followed the Cyprus Steal have already heard, it turns out the Big Money had been tipped off there, too, and had begun withdrawing their funds from Cyprus banks accounts (you guessed it) in February.

As has been previously explained, the planning for the Cyprus Steal (i.e. the "bail-in") goes back at least 18 months, at least as a concept. The precise choreography -- including obtaining the secret cooperation of the Cyprus government -- is obviously more recent than that. Following that, we had the Big Money commence their flight out of paper in February and then the rest of the world was "surprised" by the Cyprus Steal in late March.

2 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
AAPL $131.78 -0.20%
FB $80.14 -0.50%
GOOG $539.78 -0.00%
TSLA $251.45 1.62%
YHOO $43.07 -0.71%

Markets

DOW 18,126.12 -36.87 -0.20%
S&P 500 2,120.79 -2.69 -0.13%
NASDAQ 5,097.9760 -8.6170 -0.17%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs