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Whistleblower - $3.5 Billion Of Paper Used To Smash Gold Price
December 19, 2012

Today renowned silver market whistleblower Andrew Maguire spoke with King World News about the state of the physical gold market and said that several billion dollars of paper selling from government agents was used to smash the gold price yesterday. Here is what whistleblower Maguire had to say: “Gold is actually a currency, and it’s (the gold market is) intervened (in) by the government agents, which are the bullion banks. Yesterday, clearly they (the bullion banks) sold gold in defense of the dollar.”

Maguire continues:

“Keep in mind that $3.5 billion of paper gold was actually cleared in London yesterday. This selling was coordinated by the same bullion banks that are also active in the Comex. At the same time, they are rigging enough of a decline to cover shorts into capitulating longs on the Comex market.

But the Eastern central banks are simply sitting back and allowing this defense of the dollar to occur. They know what’s going on....

Continue reading the Andrew Maguire interview below...

“They know that the (US) government is shorting foreign exchange gold and they are long the dollar. So they (the Chinese) simply scoop up what (gold) they can at the resulting discounted price. What is astounding is that the price of world gold and silver is actually established in that manner because it has nothing to do with the physical market at all.

Essentially what they (the Chinese) are trying to do is divest themselves of their dollars, euros, yen and any other fiat currency as fast as they can. They are not stupid, they are going to sit back and allow the governments to defend these (paper) currencies.

So their bids are in the market and they are totally flexible at every discounted fix price. There does, however, reach a point where these leveraged paper sales simply run out. Physical allocations force the selling bullion banks to actually buy back some of these physical allocations.

You just have to look at the current backwardation. It offers a good window into what is actually occurring right now. A lot of people might ask, ‘Where are we?’ It’s just a question of how much physical (gold) is made available, leased to the bullion banks, to meet these allocations.

That’s why I monitor this wholesale market so closely and what I see currently is this paper is rapidly being converted into (physical) gold at a totally unsustainable rate. So this stair-step higher (we have been seeing in the gold market for so long) is these Eastern central banks capitalizing on this discount.”

The above information was just a small portion of what whistleblower Maguire had to say. This tremendous segment provides a fascinating look at what is really taking place behind the scenes in the gold war. The KWN audio interview with Andrew Maguire will be available shortly and you can listen to it by CLICKING HERE.

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Eric King
KingWorldNews.com

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