The Israel Deception

Is the return of Israel in the 20th century truly a work of God, or is it a result of a cosmic chess move to deceive the elect by the adversary?

Wednesday, October 12, 2016

Analysts believe gold demand will continue higher as price expects to hit $1400 by end of year following pullback

The recent pullback, or slam down in the gold price over the past two weeks has done little to stop the demand for gold... as seen by the huge buying of physical metal, as well as ETF paper in the period following gold going down to $1260 from $1330.  And many analysts concur that the manipulated smash in the gold spot price will only continue to fuel this demand, and bring the price to over $1400 before the end of the year.

Gold prices are on the move again, settling at $1,260 per ounce at market close on Monday, according to Apmex. 
That's after gold prices fell 5% last week, the largest decline in the metal of Midas since 2013. "Gold prices are quite appealing after the recent correction," notes Richard Xu, portfolio manager at China-based HuaAn Gold. "In China, what we see today is that there is some demand to buy gold following its dip." 
Former U.S. Congressman Ron Paul concurred with that assessment in an appearance on CNBC last week. A healthy economy "will be fundamentally good for gold," Paul said. 
Paul says that an ongoing low-interest rate policy by the Federal Reserve will boost gold prices and that the volatile U.S. presidential race, no matter which candidate emerges victorious, won't substantially impact precious metal prices. - The Street

Tuesday, October 11, 2016

Sharia law standards for Muslim gold ownership expected to be completed by end of the year

One of the biggest and perhaps most under reported events in the gold spectrum is very close to completion as on Oct. 11, the Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI) announced the primary draft that would allow for gold ownership by Muslims under the stricture of Sharia Law.

Worldwide there are around 1.6 billion Muslims, many of which follow Sharia Law in their cultural and financial lifestyles.  And for centuries gold ownership was limited to both jewelry and currency, as any investment in the precious metal carried the potential of earning interest above the value of the metal, especially in areas such as futures and other paper gold markets.

But now the AAOIFI has laid out new guidelines that will become the standard under Sharia Law, and are expected to become fully functional by the end of 2016.  And with this new opportunity opening up for a significant portion of the Islamic world, expectations are that both the gold price and demand could skyrocket as nearly 25% of the world's population would have access to gold ownership and investment for the first time.

The Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI) plans to finalize several new standards by the end of the year, as the standard-setting body works through a revamp of its guidance for the $2 trillion industry.
Bahrain-based AAOIFI has published a draft sharia standard for gold-based products with a one month consultation period ending Nov. 9, the industry body said in a statement. The project was started last year by the World Gold Council, a London-based market development body. 
AAOIFI issues guidelines that are followed wholly or in part by Islamic financial institutions globally, a sector that has grown fast but remains fragmented across its core centers in the Middle East and Southeast Asia. - Reuters

Monday, October 10, 2016

Following four bank bail-ins last year, most Italians are hiding their cash outside of banks and buying gold

With the global shock that the Cyprus bank bail-ins did to depositor psyches back in 2013, the media has gone out of its way to hide any news of bank insolvencies that might lead to runs on the banks.  And this includes four little reported bail-ins that took place in Italy just last year.

But with the growing threat of even more Italian banks becoming insolvent, and the Damocles Sword of Deutsche Bank threatening the entire European financial system, depositors in Italy are not waiting around for the next crisis to take place, and over the past year have been taking out their cash to hide in their 'mattresses' and buying physical gold as a hedge for what they believe is coming very soon.

People in Cyprus had to find this out the hard way in early 2013. People awoke on an otherwise normal Saturday morning to the shock that the money in their bank accounts had been taken by a bail-in to recapitalize the banks. 
Not surprisingly, many Italians aren’t just waiting around to get “Cyprused.” 
I recently spent weeks on the ground in Italy investigating the ongoing banking crisis. I spoke with a prominent lawyer who told me that most Italians are now distrustful of the banks. They’re keeping a substantial portion of their savings in cash under their mattresses. They’re also buying lots of gold. 
I’ve been to Italy numerous times over the years. But this time, I saw something new. 
There were signs everywhere advertising gold bullion, like the one below. 
I think it indicates a strong demand for gold and a strong distrust of the banks. It seems to me like a slow motion bank run is already happening. This is the last thing Italy’s banking system needs. It’s further bleeding the capital in the banking system. 
I only see the situation getting worse… 
Italians are rightly afraid of bail-ins. That fear is leading them to withdraw their savings as cash and also to buy gold. This further drains the banks’ capital, making it more likely they’ll need to do a bail-in to remain solvent, which fuels even more withdrawals. It’s like a self-fulfilling prophecy. - International Man

Saturday, October 8, 2016

Recent gold take down may be part of a gambit involving China seeking to buy Deutsche Bank's gold derivative book

Last week while China's financial infrastructure was primarily closed for their annual Golden Week holiday, one or more entities slammed the gold price down by dumping billions of dollars worth of contracts on at least three separate occasions.  And without opposing buy pressure from the usual counter-parties in Asia, the price was pushed down from a high of $1317 on Oct. 3 to an inter-day low of $1246 on Friday.

1 Week Gold Prices - Gold Price Chart

However, most of the trades that created the drop of $70 over the course of four days occurred almost instantaneously, with billions in contracts being dumped onto the market in less than a minute each time.

So what was the cause and reason for this attack on the gold price, especially since there was no news or events at all during the week that would spur traders to divest their holdings in such quantities?  Speculation has been rampant in the alternative media, but nothing conclusive as to why...

until now.

On Oct. 6, well known and respected statistician and analyst Dr. Jim Willie gave an interview with Perpetual Assets to discuss the current state of the economy, and in particular events such as Deutsche Bank's insolvency and the recent takedown in gold.  And during his over two hour interview, Dr. Willie laid out a scenario regarding China's desire to buy Deutsche Bank's gold derivative book, and the pressure put on the German bank by London and the U.S. to counter the move by forcing them to sell their contracts onto the market, even at a loss.
Dr, Jim Willie: What is Deutsche Bank's biggest problem right now, outside the law? 
Will Lehr:  Their derivatives book? 
JW: It's cash.  I don't mean where they are in trouble, but rather what is their challenge.  Cash.  They are having liquidity nightmares.
So what I am hearing is that the Chinese are coming forward, and remember they are off all week for some holiday, and that's one reason that gold got slammed.  But the Chinese have offered cash... I've heard they've offered something on the order of $100 billion.   
And I go WHAT?  Just for Deutsche Bank?  And my source said no, no no, they aren't interested in the whole bank... they are interested in their gold derivatives book. 
Because what we're hearing in the buzz among bankers... you know, New York, London, and European centers is that indeed China is looking to buy their gold derivative book, and the word has it that the derivative book involves more gold than is in the Comex.   
More than what's traded in the Comex in a year. 
It's bigger than the Comex by an order of magnitude. 
Ok, so Deutsche Bank is interested in the Chinese deal, but what they're experiencing from what I'm hearing, is that the Deutsche Bank officials are being forced by London and Wall Street, to dump their derivative book.  And I don't know if it's at a loss, and I have the feeling the Wall Street and Londoners don't care whether it's at a loss, they just want this derivative book to slowly be dissolved and sold off so that the Chinese don't get it.
Fast forward to 31:20 in the video below to hear the entire story behind the Chinese gambit, and the pressure by the Western gold consortium to force Deutsche Bank to dump their derivatives onto the market to keep it out of China's hands.

Both foreign buyers and bank analysts see recent price declines in gold a fantastic buying opportunity

With gold prices falling below $1300 per ounce for the first time since July this week, many mainstream analysts who hate the monetary metal jumped on the bandwagon to say the Gold Bull Run was over, and to expect prices to decline much more than where they closed out the week.  However, this analysis is not proving itself out in the physical market where buyers of both gold and silver are using this pullback as a great buying opportunity.

In fact, several gold and silver businesses saw single day sales of several million dollars, with the U.S. Mint selling at least 1.4 million coins to dealers this week alone.

How fast things can change in the PHYSICAL markets when paper prices are smashed.
Gold Eagles, Gold Maples, Krugerrands, Phils, and even private mint 1 oz gold bars are now ALL on 1-2 week delays at the wholesale level in the US after this week’s massive rush to physical. 
Same Story In Silver: 
Wholesale premiums jumped .30 - .50 on 90% Junk Silver Coins this week, with similar increases passed on at the retail level. - Silver Doctors
Reports on tremendous buying of physical gold this week were not limited to bullion dealers as analysts from both Goldman Sachs and Merrill Lynch agreed that the recent pullback of nearly $100 will quickly be filled by foreign buyers in both China and India, as well as those who continue to see financial conditions deteriorate.
Investors should use the recent drop in gold prices as a buying opportunity, as increased volatility in the market ahead of a potential Fed interest rate hike could lead investors to seek refuge in the precious metal, according to Francisco Blanch, head of global commodities and derivatives research at Bank of America Merrill Lynch. 
"Gold is really thriving on uncertainty, and frankly, on the end of the U.S. [rate] cycle whenever that happens," said Blanch. 
The commodities expert believes that once the U.S. central bank decides to raise interest rates, potentially causing equities to sell off and the dollar to rally, investors will see gold prices stabilize and eventually trend higher. - CNBC
As you can see from the chart below, immediately following the 2008 financial crisis gold prices fell from over $1000 per ounce down to $740, only to begin their next leg up to over $1900.


Don't let the pullbacks in gold be a deterrent to sell, as the long term trends of a gold bull market, as well as financial instability, have not changed in a week's time.  And instead look at this pullback as a buying opportunity, just as it was in 2009 before the central banks began their six year programs of zero interest rates and quantitative easing.

Thursday, October 6, 2016

Federal judge rules in favor of a lawsuit against the LBMA and bullion banks for fraud and manipulation in gold and silver prices

Ever since the 2008 financial crisis, most regulators for all markets have worked with, rather than against the banks that have been found guilty of committing dozens of crimes in the financial system.  From the rigging of currency and Libor rates, money laundering to drug cartels and terrorist organizations, mortgage fraud, and even the most recent instance of millions of cases of identity theft, no one is ever charged with the crimes individuals in these banks commit, and at best are simply fined a small amount compared to the profits they garnered from their fraud.

But on Oct. 3 an interesting ruling came down from a Federal judge for the Southern district of New York where the court ruled in favor of investors that a civil case against central and bullion banks could go forward due to strong evidence of fraud and manipulation in the rigging of gold and silver prices.

MarketSlant has obtained documents regarding the London Gold Fix Scandal currently being litigated in the New York Southern District Court.
They include the Judge's initial findings in the class action suit pitting the LBMA and its member Banks vs. Entities and Individuals that trade Gold and allege they were victims of price manipulation and suppression from January 1, 2004 to June 30, 2013.
In the document dated Oct 3, 2016, presiding Judge Valerie Caproni of the US District Court, Southern District rendered her Opinion and Order in the matter. Judge Caproni has validated that much of the claims have been substantiated and therefore is recommending litigation for many of the claims brought. - Market Slant

Wednesday, October 5, 2016

London dumps 1,000 tons worth of gold contracts on Oct. 4 to allow pre-Brexit shorts to cover before price explosion

On Oct. 4 gold fell by more than $40, and nearly $100 over the past few days as the Chinese holiday provided the perfect environment for London to dump 1,000 tons of gold contracts onto the market to drive down the price.

According to long-time gold analyst Andrew Maguire, the London gold cartel facilitated a massive shorting of gold futures contracts to drop the price back down to pre-Brexit levels so that bullion banks and other insiders could cover their short positions still open after gold spiked $100 back on June 24.

Eric King:  “Andrew, we’re seeing a massive takedown in the gold and silver markets today along with the shares, what’s really happening here?  What is really taking place?” 
Andrew Maguire:  “Close to a staggering 1,000 tonnes of paper gold has been rinsed out in the paper gold markets today…. 
Andrew Maguire continues:  “That’s just below the targeted 100-day moving average that was taken out earlier today.  Before this is finished today, this will exceed over a shocking 1,000 tonnes of paper gold that will have been rinsed. 
This takedown is a complete joke, and the wholesale market is all over (on the buy side of) this paper takedown.  This is a desperate effort by Western officials to cover massive offside pre-Brexit over-the-counter short positions put on by their agent bullion banks near the $1,275 level. - King World News
Each year approximately 2500 tons of gold are produced, making this paper contract dump equivalent to 40% of the world's entire gold production for 2016.

With the European banking system standing on the precipice of another liquidity crisis, and the Chinese beginning their new paradigm as a member of the IMF's SDR global currency, expectations of gold skyrocketing upward in the coming weeks or months left the bullion banks with little choice but to try to pull off a massive manipulation play to cover their several billion dollar short position that had left them vulnerable when they had bet against a Brexit vote.  And when China comes back online after their holiday ends this weekend, expect the price to climb back up over $1300 as it regains all its losses imposed upon it from yesterday's gambit.

Tuesday, October 4, 2016

Comex uses Chinese bank holiday to crush gold below $1300 and silver below $18

In recent history the West has used bank holidays, or low volume periods in Asia, to dump futures contracts worth millions and sometimes billions of ounces despite the fact that these bullion banks never provide the physical metals to support their trades.  And it is through this mechanism that the central banks often use bullion banks, and the shorting of paper contracts, to prop up the dollar when it comes under pressure.

However, it is this week in particular, from Oct, 2 - 7, that the Comex and London Gold markets can get their biggest bang for their buck in driving down gold prices thanks to little opposition from Asian buyers.

Live New York Gold Chart [Kitco Inc.]

Live 24 hours silver chart [Kitco Inc.]

With several black swans hanging over both the economy and the markets, central banks are using every measure possible to protect the dollar, especially in light of the fact that the Chinese Yuan has now become a global currency that is in direct competition with the U.S. reserve.  And unless something significant occurs between now and the end of this trading week, look for the precious metals to fall under even more extreme pressure, and be beaten down for no particular reason other than through the manipulations imposed by the bullion banks.

Monday, October 3, 2016

New head of the London Gold markets is a former employee of one of the central banks that manipulates gold prices

One of the biggest jokes going around in the U.S. is that the Treasury Department is little more than a 'trading desk' for Goldman Sachs.  That is because several of the most recent Treasury Secretaries have worked for the Wall Street giant, and their touch extends even beyond Washington and into the halls of the European Commission in Belgium.

So with this in mind it should come as no surprise that the new head of the London Gold markets is a former executive with one of the most manipulative central banks against the gold price.

One of the most interesting points in the previous article referred to the very recent appointment of a very recently departed Bank of England senior staff member, and former head of the Bank of England Foreign exchange Division, Paul Fisher, as the new ‘independent‘ chairman of the LBMA Management Committee / ‘Board’. Paul Fisher has also in the past, been the Bank of England’s representative, with observer status, on this very same LBMA Management Committee (now LBMA Board) that he is now becoming independent chairman of. Fisher is replacing outgoing LBMA Board chairman Grant Angwin, who if from Asahi Refining (formerly representing Johnson Matthey). - Bullion Star
The significance of this appointment is that London currently remains the most important gold market in the world, and has the authority to set prices two times a day.  However this power is being threatened very strongly by China, which now has the largest physical gold market in the world based in Shanghai.

And on a side note, it is also extremely interesting to see how most of the world's central banks are treating Deutsche Bank these days, especially in light of the insolvency crisis they are currently experiencing.   After all, they were the ones who informed regulators earlier this year that central banks, including the Bank of England, have been manipulating the price of gold for years.

Saturday, October 1, 2016

LBMA in process of modernizing Western gold markets with blockchain based electronic trading

With the rise of the one true physical gold market coming out of Shanghai, China in the past year, the London Bullion gold market has been seen to be both antiquated, and no longer of significant relevance as it primarily trades in paper contracts and rarely delivers physical gold.  And with their paper based trading and gold derivatives making the institution little more than a mechanism to protect fiat currencies by beating down the fair market trading of gold, the both the LBMA and other European gold markets are now looking to modernize through the potential of blockchain technologies.

The London Bullion Market Association has started negotiations with two financial technology firms to create a trading platform for precious metals, according to two people with direct knowledge of the matter. 
The partnership between Autilla Ltd. and Boat Services Ltd. was selected for further talks, according to the people, who asked not to be identified because the discussions are private. 
“It would be premature to comment at this stage as no legal agreements have been signed with any provider,” Ruth Crowell, chief executive officer of the LBMA, said in an e-mail to Bloomberg News. 
The LBMA, which represents London’s gold market, is seeking to modernize the world’s largest gold-trading hub, an over-the-counter system that clears more than $5 trillion a year. Regulators are pushing for more transparency and tighter controls. In other cities, such as New York, transactions take place on an exchange. 
The LBMA’s platform would mean deals between two parties can be posted and stored in a database, and eventually lead to the publication of a forward price curve.
Companies including the London Metal Exchange, Intercontinental Exchange Inc. and CME Group Inc. submitted proposals for the platform, people familiar with the matter said in February.- Bloomberg
And over in the rest of Europe...
Euroclear, the world’s largest Belgium-based asset and securities settlement cooperative founded by J.P Morgan & Co., attended the SIBOS Annual Conference in Geneva, Switzerland with Paxos to announce their joint project and explain the importance of a secure and efficient infrastructure in unsystematic gold markets. 
The Paxos-Euroclear gold market-focused Blockchain settlement solution will be the first of its kind and most likely the only Blockchain settlement platform to be integrated by a major market like the London Bullion Market. 
Paxos CEO Charles Cascarilla believes that a robust and secure Blockchain-based infrastructure will enable the London Bullion Market as well as other leading gold exchanges to autonomously process trades and increase the efficiency of the post-trade process. - Cointelegraph