For gold bugs, and those who have watched the cartel crush the spot price of gold in recent weeks, it is very easy to believe that capitulation may have finally arrived, and that gold is no longer able to hold on to its support levels that have held over the past nine months. But while this assessment on the surface may signal the end of the gold bull, things occurring underneath are signaling a much different future direction.
One has to remember a single truth about gold prices at this time in history... the price is determined by a committee known as the London Gold Fix (notice there is manipulation even in their name), and that it is based solely on the paper market for gold, and has little to do anymore with the physical gold market.
In fact, the U.S. based Comex futures market which is the determinant for spot gold prices has not delivered a single ounce of gold in over two years, and their function right now is to use the gold price to protect the derivatives market, which the bullion banks are leveraged beyond measure, and would be insolvent if the Comex stopped manipulating the price.
(Notice how J.P. Morgan has severely leveraged their derivative exposure since the first quarter of 2015, and exactly during the recent slam down of the paper gold price on the Comex.)
This manipulation and unhinged leverage can only last so long, especially since there is an opposing issue that even the Comex can control.
The shortages occurring in the physical gold markets.
The paper market is telling one story. But the actual physical bullion market is telling quite another.
The U.S. Mint has sold over 100,000 ounces of American Eagle gold coins so far in July. That’s the highest monthly demand volume registered since April 2013. And that’s just as of this week. There’s still another week left to go before the final sales tally for Gold Eagles comes in for the month of July. It could be one for the record books with 109,000 1-ounce Gold Eagles sold — with bargain hunters purchasing 6% of the U.S. Mint’s production from Money Metals Exchange.
As for Silver Eagles, the U.S. Mint has given up on trying to keep up with demand. After brisk sales during the first week of July, Mint officials suspended deliveries of Silver Eagles to dealers. Sales of the popular coins are set to resume next week. But we expect the Mint will be unable to get its act together and keep up with demand.
Listen: Full Interview With Chris Powell Of The Gold Anti-Trust Committee (GATA)
The shortages occurring in the physical market are pushing the bullion banks into an interesting dichotomy... not only are they working to crash the paper price by dumping $2 billion worth of naked paper shorts in just four minutes on the market just one week ago, but they are also buying long positions, as well as physical metals, in what is known in the industry as a hedge.
Hedging is done to limit one's losses, and since bullion banks like J.P. Morgan and Citibank have for years been depressing the paper gold price through thousands of naked short contracts, their goal of pushing the price well below $1000 per ounce has failed, and now to protect their trillions of dollars in risky investments they are buying both longs and physical as a double hedge for when the price suddenly takes off higher, or when the Comex loses control over price determination.
Which by the way is extremely likely after September when China begins its own price declaration on the Shanghai Gold Exchange.
So if gold in the West is finding itself in extreme shortages, and playing the ETF's or Future's markets is out of the question due to the massive manipulation, what is the best way to protect yourself in gold, especially with the dollar, euro, and fiat currency system entering the next new recession and liquidity crisis?
The answer lies in Karatbars.
Buying gold through Karatbars is one of the easiest things on the net. In fact, the business model of Karatbars is to sell gold in affordable quantities, such as 1, 2.5, and 5 gram increments, and allow customers to get into the metal without having to shell out $1200+ for a single ounce coin.
And as added perks to signing up with Karatbars, as a customer or affiliate, you can have the power to move your money into a free e-wallet that functions just like an offshore bank account, and is outside the authority of the banking system. From there, you can take your fiat currency in any denomination... dollars, euros, yen, etc... and purchase physical gold which can either be delivered directly to you, or stored for free at one of Karatbar's vaults.
Additionally, any gold that you buy can easily be sold back to Karatbars, or any metals dealer, and if with Karatbars it is then exchanged for currency that is uploaded to you through a pre-loaded debit Mastercard which is connected directly to your e-wallet. And as we know, MasterCard is recognized in nearly every country around the world, and usable in any currency that accepts it.
But perhaps the best feature with Karatbars is their affiliate program, where you can earn money off commissions from getting others to sign up and become a customer or affiliate. Not only do you receive commissions from their purchasing of physical gold, but you also earn commissions from anyone who buys a commission package, with that money going directly into your debit MasterCard when you have enough units to cycle.
Imagine the ability to earn the money in which to buy your gold savings simply by purchasing a commission affiliate package one time, and then getting others to sign up and do the same thing.
How many businesses or entrepreneurs can build an infinite business with spending less than $400 of their own money? And there is never a mandatory requirement to buy beyond what you desire, on your own schedule. And there is nothing to lose, because you're using money (paper dollars) to buy gold (physical money) and in the end you don't lose a thing.
How to make money in both the Dual and Uni-level systems of Karatbars
How to make a six figure income using Karatbars in just 7 weeks.
The global financial system, along with dozens of respected economists, are telling us that now is the time for the end of our current form of money, and the beginning of the transition into a new monetary system that is expected to be backed by gold. And with banks, governments, and even Harvard professors mandating that central banks have no choice but to eliminate cash from usage by the people to stave off collapse, will you wait until it is too late to make a decision on how you will protect your wealth, and be able to function within the coming new monetary system?
To learn more about Karatbars, you can contact the individual who sent you this article, and click on their referral link to open a free account and begin buying, or building your own gold savings or business with the company of the future.