Thanks Polarbear.I've heard Kebble thinks its that high but it's not clear where he gets his figures. Frank Veneroso has presented some very well researched work indicating a MINIMUM short position of 8000 tons, in his Gold Book Annual. When I spoke with him he convinced me of his connections with bullion banks, dealers, money managers, refiners, central bankers, you name it. He insisted his figures are conservative estimates. If you believe his endgame scenario, and I think the evidence is convincing, then just to clear the market, the gold price will have to be $600/ounce, once the flow of gold from central banks is eliminated. The only question is when CBs will realize their folly, or, if there's a large scale conspiracy afoot, and I think this likely, when it becomes too politically expensive to continue the subterfuge.
The stakes may be extremely high, however, as purchasing gold to cover existing shorts runs the risk of toppling hedge fund pyramids, and I'm sure the powers that be are scared to even consider the financial turmoil that might bring about. |
