Gold And Silver: Legal Weapons Against The Deep State

Thursday, March 9, 2017
By Paul Martin

By Rory Hall and Dave Kranzler
GoldSeek.com
Thursday, 9 March 2017

Question: Why do Central Banks and Governments hate gold?
Answer: Because they can’t print it

An almost hysterical antagonism toward the gold standard is one issue which unites statists of all persuasions. They seem to sense – perhaps more clearly and subtly than many consistent defenders of laissez-faire – that gold and economic freedom are inseparable, that the gold standard is an instrument of laissez-faire and that each implies and requires the other. – Alan Greenspan, “Gold and Economic Freedom”

Just like everything else in the western financial system, the paper trading markets are leveraged beyond redemption. The amount of paper “claims” on actual physical gold was estimated to be 100:1 in 2010. We can assure you that ratio is much higher now. On the Comex alone, for instance, if more than 9% of the April open interest in gold futures were to stand for delivery – based on the currently declared 1.4 million ounces of gold reported as being “available for delivery” (registered) – the Comex would default. The entire open interest in gold futures is 60x greater than the amount of gold available for delivery.

This is just the publicly traded paper gold derivatives. There’s also the shady world of OTC gold derivatives. The total notional amount of OTC “precious metals” derivatives according to the OCC’s latest quarterly report on OTC derivatives (Office of the Comptroller of the Currency) is over $28 billion. Just to highlight the degree to which the Government goes in order to hide the facts about the gold and silver market, the OCC used to break out OTC precious metals derivatives into the categories of “gold” and “silver and other.” Now the OCC reports just “precious metals.” What is it that the Government and banks are hiding?

The amount of leverage embedded in a Comex futures contract, based on the current amount of margin required, is about 25:1. There’s no telling how much leverage is embedded in the OTC derivatives agreements. All we know is that the disclosure requirements are becoming increasingly more opaque.

The Rest…HERE

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