Chariot of Fire – The Precious Metal Market (7 July 2015)

Greece is in default; the Chinese stock market has practically crashed which has created a spill over towards US listed Chinese companies, prices of gold took a 20 dollar an ounce tumble and dragged other metal down along with it

The economic sense of everything that is transpiring indicates a serious flaw in the global markets that is difficult to zero in upon. The usual scenario of economic uncertainty would have driven the prices of precious metal up due to increasing demand, however this time around the opposite is happening, everything is falling except the US dollar which is coupled with higher investment returns that are weighing gold prices down in a manner never witnessed before. Both short and midterm investors have shifted their focus away from the precious metal market due to these weights on metals. The exit of Greece from the Euro would boost the dollar further into cloud nine. If at all the creditors do want to retain Greece in the Euro (which they do want to), they would have to structure a deal that does not create an appetite for other Euro members failing economies such as Spain, Italy, Portugal and even Ireland. The faltering Chinese economy has also dampened demand for precious metals that is visible from the drop in the prices of platinum by 2.3 % while palladium took a hit of nearly 24 dollars to the ounce (Saefong & Watts, 2015).

(Trading Economics, 2015)

(Trading Economics, 2015)

The Means to an End

The macroeconomic influences that are exerted via economic, geopolitical, financial or historical factors are creating a situation that has the potential to end the false economy that have been created by the western bankers on the long term spectrum of the precious metals markets. According to (Ristori, 2014) a return to the gold standard is inevitable and the changes in the financial paradigm that advocates owning gold as a means of shielding wealth during monetary system transitions is already under way and clearly visible despite all the financial disinformation and media fog that has been instrumental towards blinding the masses.

Western commercial banks and governments have played their last card as they have almost depleted all their physical gold and the only way they are able to continue surviving is to keep investors from demanding for the physical assets which they are currently holding in paper, there simply isn’t enough gold, silver, palladium and platinum to go around if these investors decided to convert their paper precious metal into physical precious metal. This is why these financial institutions have been trying so hard and desperately to kill any bullish sentiment and keep investors from heading towards physical gold and silver. Millions of paper contracts owned by investors would not be honoured due to the fact that the gold is existent only in paper – it does not exist physically when this happens, rest assured all hell will break loose which will be made worse when the United States of America refuses to repatriate any portion of their gold reserves to buffer the collapse. The chain reaction will subsequently expose countless of investors to bubble-prone assets that would trap the manipulators who have unwittingly painted themselves into a corner. The current trend of physical god and silver being transferred to Asia, Russia, China, and India has reduced their ability to make physical metal provisions to their investors as none of these big buyers trust paper gold only because they have done the math. The manipulation of the precious metal market is coming to an end, the Western financial system is practically in ruins and the only way they are going to get out of it is by paying their dues.

The Deutsche Bank letting go of its position in the London Gold Fix and the current initiative to repatriate its gold reserves from London, Paris and New York speaks volumes. The fact that Germany’s initial request for their own gold to be returned back to Germany was denied raised doubts if the US feds still had Germany’s gold as even their request to view the gold was denied with security issues put forward as excuses. To make matter worse, the Federal Reserve has not conducted a public audit of their gold stocks since 1953!

 

Chart Source: Trading Economics, 2015. Trading Economics. [Online] Available at: http://www.tradingeconomics.com/commodity/gold [Accessed 7 July 2015].

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