Gold: New LME contract will slam 'paper gold,' foretell price 'reset,' Maguire says
London metals trader Andrew Maguire, interviewed this week by the TF Metals Report's Craig Hemke for Sprott Money, says the London Metal Exchange soon will offer a gold contract much more closely tied to physical delivery than competing contracts, putting heavy pressure on the "paper gold" system.
Maguire also says:
-- The gold/silver ratio will reduce to 63-1 and then to 32-1 and approach a more traditional and sustainable level.
-- The recent record gold deliveries on the New York Commodities Exchange are an "illusion" because most of the metal is just returning to London and Europe. -- Incorporating blockchain technology in gold trading will diminish the "paper gold" sham, ensure the integrity of every transaction from the mine to the end user, enable round-the-clock physical trading, and eliminate any need for daily gold price "fixes."
-- The U.S. Justice Department recently compelled JPMorgan Chase to reduce its silver futures contract volume to comply with position limits set by the U.S. Commodity Futures Trading Commission, but the bank routed into its own accounts the metal involved. Prosecutions of the bank will be tied to a "reset" of the monetary metals markets.
-- Silver is in short supply at the wholesale level and deliveries are much delayed. The bar list for a recent large silver delivery from JPMorgan Chase did not include a single correct bar serial number.
-- Goldman Sachs, the investment bank intimately connected with government treasury departments and central banks, is working with the U.S. Treasury and Bank of England for a revaluation of the monetary metals.
-- There is now substantial division among bullion banks in their approach to the gold market. Meanwhile central banks know they need to get on the right side of the coming revaluation.
-- The revaluation will be arranged so the New York Commodities Exchange survives.
Hemke's interview with Maguire is 27 minutes long and can be heard at Sprott Money here:
sprottmoney.com
Chris Powell, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
CPowell@GATA.org |
