The Round Rock Wealthbuilder's Meetup Message Board › LBMA On The Verge Of Gold Default

LBMA On The Verge Of Gold Default

Dan Caldwell - Wea...
user 3188546
Round Rock, TX
Post #: 221
Dan's Note Massive Physical Demand Coming Out of Asia. China estimated to have absorbed 50% of total mine production supply in last 30 days! US Mint experiencing record demand for gold and silver Eagles.

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By Andrew Maguire, Commodities Trader 4/22/13
Posted on

Today commodities trader and whistleblower Andrew Maguire spoke with King World News, providing even more details by elaborating on the events surrounding the LBMA default.  Maguire, who recently appeared in the extraordinary CBC production titled, “The Secret World of Gold,” (YouTube) also told KWN about the ensuing panic which has taken place in the aftermath of the LBMA default.  Maguire described entities as “panicking.”  Below is what Maguire had to say in Part I of his remarkable and exclusive interview.

"The key thing is the physical wholesale markets, and I’m seeing the same thing now.  I’m not seeing any letup in physical demand.  The central banks, the sovereigns, they were buying at $1,800, $1,700, $1,600.  But when you take a dip to this kind of level where we actually start to approach break-even cost of mining (gold), well, obviously that was an act of desperation (on the part of central planners). 

As Russia, or China, why not just pick it (gold) up and ship it over?  It’s quicker (than mining it).  So you’ve reached a point where the lines cross, and the physical market diverges.  I have checked the numbers now and we are very close to 1,000 tons of deliveries just this year into Shanghai.

That does not account for the 25 tons we are seeing every day through London.  And that does not account for what is being directly purchased through producers.  So there comes a point where you get such a discount that this demand increases exponentially.  And we are not just seeing the central banks and the sovereigns coming in,  we are also seeing some very smart money, I’m talking investment money, coming in (to the gold market as well).

Part II
Eric King:  “Inside that piece (“The Secret World of Gold”) you talked about gold leasing and the mechanics of that.  Jim Sinclair wanted me to bring that up to you, the gold leasing, the mechanics of it, can you talk about that?”

Maguire:  “We did a piece on King World News about it, about the LBMA bullion bank default.  Stepping back, how did they get to such a mismatched (trading) position where they had so little gold and silver in their inventory to be able to back up people coming and asking for their gold and silver?  They never anticipated that this would happen....

“But what had happened was, over the years, basically what you would do is you would sell gold, sell silver, financed almost for nothing, take that money and invest it.  Then, obviously incentive was there because it had built up to such a large (short) position, they were so over-collateralized, that it was important to defend the price (of gold and silver) from rising because they didn’t actually have the physical.

What’s happened now is they are in a position where that leased gold is being asked for and they don’t have it.  I know of a very large client who actually turned up for his bullion, was refused his bullion, and told he would be settled in cash.  I felt I should go public with that (on KWN).

...(ABN AMRO) really was the tip of the iceberg.  What happened was that we saw that first bullion bank create the first visible default of the LBMA fractional reserve system.  I hear of other clients who are now panicking, and what happens?  You get an official intervention.  That what it (the takedown in gold and silver) was all about.”

Read More: http://kingworldnews....­
Dan Caldwell - Wea...
user 3188546
Round Rock, TX
Post #: 222
Gold Buyers Sell ETFs and Get Physical As Coin and Jewelry Sales Surge
Frank Holmes 4/22/13

We noted numerous reports indicating that there’s a shift taking place in the gold market, with investors discarding the gold ETF, preferring physical gold instead.  On one day alone, April 17, buyers scooped up a record 63,500 ounces from the U.S. Mint. This is equivalent to 2 tons of gold, “more than the previous two months combined,” according to Zero Hedge. This is a drastic move compared to recent history.

The U.S. Mint is generally the last place gold shoppers buy their ounces because they have to pay “a hefty premium” for gold. It’s like going to 7-Eleven on Christmas to buy AA batteries for the electronic toy Santa left under the tree.
However, gold shops such as Apmex or Gainesville Coins aren’t closed; rather, gold customers end up buying from the U.S. Mint because “nobody else has any physical [gold] at a lower premium to spot (or any metal in inventory),” says Zero Hedge.
So, even with the gold price dropping, why are gold coins selling at a premium? It’s Economics 101: The coin supply is limited and the demand is high.
Dan Caldwell - Wea...
user 3188546
Round Rock, TX
Post #: 223
4/23 Update
Swiss Bank Refuses To Return Allocated Gold

Today legendary trader Jim Sinclair stunned King World News when he revealed that a dear friend of his who is very affluent just had a Swiss bank refuse to return his large hoard of gold when he asked for it out of an allocated account.  

Read More: http://kingworldnews....­
Dan Caldwell - Wea...
user 3188546
Round Rock, TX
Post #: 224
Kitco News - UBS: 'Tremendous' Buying of Gold Out of Asia

Tuesday, April 23, 2013

The drop in gold prices sparked "tremendous appetite out of Asia" for the yellow metal, UBS says. "We think this will continue to play an important role in the coming weeks and months," the firm says, noting physical flows to India are close to the highest levels UBS has seen since 2008. What helps to spur the buying is that Akshaya Tritiya is coming up in about three weeks, which is an auspicious day for gold buying. The firm notes last year when Akshaya Tritiya occurred, buying three weeks into the holiday saw elevated buying. Chinese purchases of gold are also up, now that the price has stabilized, they say. "Volumes on the Shanghai Gold Exchange have reached new records – a whopping 57.6 (metric tons) yesterday – and premiums have similarly surged to as much as $33. That holidays (that) are coming up next week is likely contributing to the buying urgency. Our flows over the past week indicate demand comparable to the exceptional levels that we saw back in Q1. And with indicators suggesting that the supply chain is starting to struggle to keep up with demand, further upward pressure on premiums could be expected to result," they note.
Dan Caldwell - Wea...
user 3188546
Round Rock, TX
Post #: 226
4/23 Update
Ignore COMEX Pricing;  Silver Eagles $8 Over Spot

The silver price has taken a beating over the past week, dropping 18% from $28 to $23. Or at least that is what the COMEX is telling us. In reality, the price of silver is nowhere close to $23. Don’t believe me? Try to find silver coins for sale anywhere in the free market at that price.

Most major bullion dealers are once again sold out of silver eagles, including my local dealer and some of the main online dealers that I use.

 The following is a screenshot from, which often has the lowest premiums over spot price for gold and silver coins. Notice that Tulving is completely sold out of silver eagles, 90% silver half dollars and even generic silver rounds. The only silver coins from this page that are still in stock are 90% junk silver dimes and quarters. Just a few short months ago, they used to sell at or near the spot price, but now sell for a premium of $4.49 per ounce!

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