What does it say to the world in general, and Western populations in particular, when the rest of the world is dumping their own paper currencies and buying gold at the fastest rate in history? It says to people, "Dump your paper and buy gold (or silver) as fast as you can." However, what would it say to the world if the same central banks that had dumped massive amounts of gold onto the market every year suddenly flip-flopped and began dumping their paper and buying gold at the fastest rate in history? It would shriek to the world, "Dump your paper and buy gold (and silver) as fast as you can." But it's even more than that. In 2012, central banks bought 535 tons of gold. Add the approximately 2,000 tons per year of gold used each year in jewelry, and the unwavering 400+ tons per year in "industrial demand" and this creates a gold deficit, given that mine supply is well under 3,000 tons per year. Let me reiterate this point. Even if none of the seven billion inhabitants of the planet Earth saw the wisdom of copying the central banks and swapping their paper for gold bullion, there would already be a gold supply deficit. Currently such buying totals about 1,500 tons per year -- 1,500 tons per year of additional "gold deficit." The world's annual gold supply deficit is over 1,500 tons per year, with global mine production at about only 2,850 tons per year -- and that is without the West's central bank cabal buying a single ounce of bullion. It's only through dumping absurd amounts of "paper gold" onto the market that the Western banking cabal has been able to prevent the price of gold from soaring to five figures. Confirming this fraud, we see one report after another from the mainstream media about how the banks will "solve" the massive gold-deficit problem in India by selling their gold buyers "paper gold." Readers are left with only two possible conclusions. One conclusion is that central banks are collections of the world's most corrupt buffoons. Selling vast amounts of gold at rock-bottom prices and buying it at "record prices." If that's true, we should immediately fire all the buffoons and also get rid of the equally incompetent governments who appointed them. Alternately, these bankers are the ultimate Oracles of Economic Wisdom. In that case, we should all be dumping our soon-to-be-worthless banker paper for gold and silver as fast as we can. Follow @bullionbulls This article was written by an independent contributor, separate from TheStreet's regular news coverage.