Submitted by Dr. Paul Craig Roberts – Institute for Public Economy
Guest Column by Dave Kranzler
The Comex is a complete fraud.
It’s one of the biggest Ponzi schemes in history.
With China and Viet Nam (the latter being a major gold importing country) now closed until next Wednesday in observance of their Lunar New Year, the bullion banks have engaged in a major attempt to drive the price of gold lower. Yesterday (Tuesday) 99,000 gold contracts – 9.9 million ounces or 287 tonnes – were sold into the market between 9 a.m and 11 a.m. EST, which had the effect of driving the price of gold down over $26. To put this into context, a total of 179,833 contracts traded between 6 p.m. Monday and 5 p.m. Tues. The entire daily trading period is 23 hours. But 55% of yesterday’s total trading volume – the volume used to slam gold – was traded in a two-hour window of NY trading.
Think about it this way: in that two-hour window, 35 days worth of daily global gold mine production traded in the form of paper gold. The open interest expanded by 5,290 contracts, which translates into just over 15 tonnes of gold. The total amount of gold available for delivery – the “registered” account gold – is 804.9k ounces, or 23 tonnes. In just one day, the bullion banks (JP Morgan, HSBC and Scotia) sold forward 65% of the entire stock of deliverable gold on the Comex. And that’s if you really believe the unaudited bank reports which produce the gold warehouse stock reports. I do not.
Gold was raided again today (Wednesday, Feb 18) – again at 11:00 a.m. EST. This time gold was slammed another $9 in the space of 30 minutes, most of it in the first seven minutes. Today 18,000 April gold contracts traded in the 30 minute space, representing 24% of the total volume in the April gold contract up to that point since 6:00 p.m EST the previous evening. This is 52 tonnes of paper gold – more than twice the amount of gold in Comex vaults available for delivery. Continue reading