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Are We On The Verge Of Witnessing The Death Of The Paper Gold Scam?

May 08, 2013

The legal claims on physical gold far exceed the amount of physical gold that the banks actually have by a very, very wide margin. And right now the bankers are scared out of their wits because their warehouses are being drained of physical gold at a frightening rate. So what happens when their physical gold is gone but they still have lots and lots of people with legal claims to gold? When that moment arrives, it will represent the end of the paper gold scam. Many believe that the recent takedown of the price of paper gold was a desperate attempt by the bankers to put off that day of reckoning, but it appears to have greatly backfired on them.

Instead of cooling off demand for precious metals, it has unleashed a massive "gold rush" all over the globe. Meanwhile, word has been spreading among wealthy families in both North America and Europe that they had better grab their physical gold out of the banks while they still can. This is creating havoc in the financial community, and at least one major international bank has already declared that it will only be settling those accounts in cash from now on. The paper gold scam is starting to unravel, and by the time this is all over it is going to be a complete and total nightmare for global financial markets.


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I like the way writers are

I like the way writers are using my signature phrase more and more these days; "Complete and Total Economic Collapse", that I've been saying for years in my many writings.

A large number of uber

A large number of uber wealthy and ultra rich are being screwed out of their physical gold holdings are going to be very very angry and want revenge.

I know what I would do in this situation. I'd be hiring the best hitmen on the planet.

The central banks

will resort to any trick, including global war with it's ensuing destabilization, to keep the ponzi from unraveling. Manipulation of the price of gold will not, however, withstand the upward pressure on the paper derivatives much longer.


"The problem is not those in power, the problem is right between your ears." ~Larken Rose


I heard an interesting theory

I heard an interesting theory on what happened to our gold. My buddy mentioned that the gov uses it as covert foreign aid to puppet governments as it is easy to purchase weapons etc with and there is no paper trail back to the US.

We all share this eternally evolving present moment- The past and future only exist as inconsequential mental fabrications.

Why wouldn't they?

Since bankers and accountants don't go to jail or the gallows, they don't have anything to fear.

In the absence of a legitimate court system, I would have expected the invisible hand to create a financial mafia to mete out justice.

"Timid men prefer the calm of despotism to the tempestuous sea of liberty" TJ

Good stuff. It's going to be

Good stuff. It's going to be ugly when people find out that there are ALOT more claims to ounces of gold/silver than there are actual ounces of gold and silver.

“Let it not be said that no one cared, that no one objected once it’s realized that our liberties and wealth are in jeopardy.”
― Ron Paul

I hate to pee on this parade but...

...if banks are left with only one ounce of gold, they will simply rehypothecate it a few million times.

You can't have this kind of conspiracy without a complicit government and regulatory agencies looking the other way.

The same thing occurred in 2007 when virtually everyone in the mortgage industry- looked the other way. The difference here is that gold and silver are very small markets and easily manipulated for a very long time.


The corruption will not end, so any shortages do not really matter here. The exchange price will always be completely fixed (and manipulated) on the exchange market no matter what (even though the real metal is more vaulueable).

And since you cannot eat Gold, or pay the bills with Gold.....in the end this corrupt system just goes on and on and on and on .... until the day comes when someone finally prosecutes the Big Banksters.

So who will ever do this?

Until you can answer that question with a "yes", then there is no $100 Silver here, and there is no $3000 Gold.

I can disprove your point

Why did gold jump from around $300 to around $1900 (at its peak) even though all of the caveats you mentioned existed that whole time?

because it should have went

because it should have went to $5000 but the market was manipulated and held it to $1900.


Yes, and there are clearly numbers here that will never be exceeded.

For example, anytime that Silver approaches 50 history shows that they will slam it down real hard -- they will never let it go above that point.

And I seriously doubt that they will let Gold go very far past 2200.

It's their casino, they make the rules, and the House always wins....

I have to disagree

The paper price will continue to be manipulated but the price for physical bullion will continue to separate via higher premiums. Silver may be down to $24 right now but good luck buy silver eagles for less than $29. When the price was smacked down to $22 you were still paying $29, they just raised premiums.

They can only manipulate the market as long as there is demand for their paper gold certificates. Sure they could rehypothocate a single oz a million times over, but who will want to buy that once that type of leverage is exposed. The futures price for gold and silver needs to be viewed as the paper currency that it is.

All paper currencies collapse, as will the paper PM market.

peace + liberty = prosperity

Not here

The spread doesn't look that high here:


For example, on a 1oz silver coin it costs $27.21 to buy at a silver price of $23.76.

SteveMT's picture

For those buying now, make sure that yours is real.

Buy from reputable dealers. Know that your gold and silver are the real stuff.

What's an easy way for noobs

What's an easy way for noobs to find out if their dealer is reputable?

SteveMT's picture

Starting points.

1. Do the dealers/companies have a track record?
2. Do they guarantee what they sell?
3. Are they willing to buy it back?

To be totally convinced, people can test it themselves. All of the tests are available on the net.

I was considering rolling my 401k into a traditional IRA

sometime this year and put it all into an allocated gold vault, now not so sure if this is a good idea.


Cash out is the ultimate goal

But want to wait until next year, getting a severance this year and my annual "income tax" is going to be much higher than normal. I don't want to add any additional income, etc. on top of what I'm already going to get rolled for.

Hoping Uncle doesn't hypotheticate my retirement money into treasuries before then.


I Got Rid Of All Traditional Investments Long Ago

In Gold & Silver I Trust...

"Eventually all paper money returns to its natural intrinsic value, zero" ~ Voltaire

It's Why I Quit

I left my last job, in part, to get control of my 401k which was limited to the options for investment chosen by my employer's investment firm--and they were clueless.

I rolled much of it into a Roth IRA so that when gold and silver skyrocket, I won't have any more tax. Some of it is invested through Peter Schiff's metals company and held in Australia.

I don't like not being able to touch it, but I think I would feel that way toward anything I put into an IRA. It's the part of my plan that's in another country not subject to mandates from the US Congress.

I also have junk silver, not in any plan. I guess I would not put "it all" into a vault: "diversification" is what they advise, and it's something to think about, if not in the asset, then in its location(s).

What do you think? http://consequeries.com/

I gave up contributing

I gave up contributing anything to retirement accounts and IRAs because I suspect the government will ultimately end up confiscating some or all of reported savings. Certainly I'm not the only one who has noticed increased reporting requirements for stocks, savings and a massive increase in the level of intrusion and accompanying threats to households and businesses posed by the Census and Department of Commerce.

cash em out.

cash em out.


double whammy - prevent the bankers from using YOUR money any more and get your hands on your wealth, while you still can

yep. Bullion banks are

yep. Bullion banks are settling in cash when customers are coming in for their gold bars. This is a default.