The Round Rock Wealthbuilder's Meetup Message Board › Friday The 12th Gold Takedown

Friday The 12th Gold Takedown

Dan Caldwell - Wea...
user 3188546
Round Rock, TX
Post #: 213
Compiled from KingWorldNews.com Interviews
April12, 2013

Commodities Trader and Whistleblower Andrew Maguire told King World News that more than a stunning 500 tons of paper gold has been sold in today’s takedown in the gold market.  Maguire also spoke to KWN about the staggering Chinese physical gold purchases.  Below is what Maguire had to say in this remarkable and exclusive interview.
 
Eric King:  “How much paper gold was sold to take this market down, and how much tonnage have the Chinese and others been taking out of the physical market?”

Maguire:  “Just since the cross (today) of $1,550 into the (London) fix and the breach of $1,500, we are now looking at in excess of 500 tons of paper gold that’s been sold....

Eric King:  “So all of that is today?”

Maguire:  “Yes.”

Eric King:  “So when you look at the tonnage being taken out by the central banks in the last couple of weeks, including today, what kind of tonnage are we talking about on the physical side?”

Maguire:  “Deliveries in Shanghai alone in March were 283 tons.  In the eight trading days of April, we have seen another 117 tons (of gold) delivered.  Today was another 20 tons delivered.  So what we are looking at here is over 400 tons (of gold) in less than a month and a half.

“It’s easy to look at the technicals today and see this cascade down, that’s the long stops being tripped.  But what we are seeing now is none of the physical supply is appearing.  None of it is going to back up these sales.  So this is a clear sign of weakness.  

Now the bullion banks are really trading the Fed’s ‘virtual market book,’ but they are constrained.  They are really constrained as to how far they can push these paper prices because the ... Eastern hemisphere central banks, who are competing with each other to buy (physical) bullion, these are the guys that are picking up this discount.  This (smash in gold) results in an exponential ramp-up in their physical buying.  

All they (central planners) are doing is delaying an extremely disorderly rebound (in the price of gold).  Give it a few days because at least 90 tons of central bank buying today was seen below $1,550, into the afternoon fix (in London).  As we cascade down here you can guarantee that what they (Eastern buyers) are doing is ‘spot indexing,’ which is basically locking in the price in the paper market and will allocate that at an upcoming fix (in London).  

So I give it (at the most) two to three days before this has a massive rebound effect, and the short fuel above the market now is at absolutely unprecedented levels.”  

Maguire also added: “The fact that official sellers are even more reliant on massive coordination on mainstream media and verbal interventions to back up these virtual sales, it’s not going unnoticed by Middle-Eastern and Eastern centric central banks and sovereigns.”

Eric, consider that the basis of all of the mainstream media shills coming out and saying, ‘We’re in a bearish market because GLD, the ETF, has dumped around 200 tons since the beginning of the year.  But what we are talking about here is China having purchased and taken delivery of over 400 tons in less than a month and a half.  And since the beginning of the year (that figure) is substantially higher.  It’s probably in the 800 ton range (for the Shanghai Exchange). 

So it just amazes me how people concentrate on what’s happening in one paper market.  What we are seeing today is actually a very positive development.  I think we’ve reached a point of capitulation.  I cannot see how the central bank buying cannot overwhelm all of these short sales, despite the leverage.”
AreJay
user 5664378
Georgetown, TX
Post #: 14
Time to back up the truck?...I did see that the charts for Gold Silver And Platinum were almost the same on Friday.
Dan Caldwell - Wea...
user 3188546
Round Rock, TX
Post #: 215
Carnage In Gold Prices Continues Monday April 15th

Investors who bought GLD, SLV, and gold/silver related on margin are getting margin calls and are being forced to sell to cover those calls. This is being offset by strong hands with cash who are taking physical delivery of the metals. WHEN the market recovers, look for the naked short sellers to get squeezed the other direction as supply gets tighter.

If you have two cars, sell one to buy silver.
Dan Caldwell - Wea...
user 3188546
Round Rock, TX
Post #: 216
Blood In The Streets

Carnage in gold sector continues as weak longs get margin calls. BUT - if it feels like "Blood In The Streets" to you then it is a sign of near term market decline ending, we're in the capitulation phase, and at a point where value investors are snapping up bargins. This is the point where smart money is buying. Are you selling or buying?

A major 'Tell' of a near term market bottom is to open a chart of the Gold Miners Bear Market ETF DUST and ask yourself "If I owned DUST would I be taking profits right now?" If the answer is "Yes" then the opposite must apply to NUGT.
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