Fund Manager: Gold & Silver Being Hit Like In 2008 To Cover-Up Impending Global Financial Crisis

Wednesday, August 15, 2018
By Paul Martin

SilverDoctors.com
August 15, 2018

Dave Kranzler provides a very critical update today on what is going on with gold, silver, and the broader markets. Here are the details…

by Dave Kranzler of Investment Research Dynamics

In 2008, gold was taken from $1020 to $700 and silver was pounded from $21 to $7 during the period of time that Bear Stearns, Lehman and the U.S. financial system was collapsing. The precious metals were behaving inversely to what would have been expected as the global financial system melted down. Massive Central Bank intervention was at play.

Currently the price of gold and silver are being dismantled by what appears to be massive hedge fund shorting of Comex paper gold. As of last Tuesday, the “managed money” trader category as detailed in the Commitment of Traders report showed that the hedge funds were short a record amount of paper gold.

As of yesterday the open interest in Comex paper gold was about 17,000 contracts higher than the open interest shown in last week’s COT report. This represents another 1.7 million ozs – or 48 tonnes – of paper gold that has been dumped on the market. It is highly probable, if not a certainty, that most of the increase in short interest is attributable to hedge fund algos chasing the paper price of gold lower.

Meanwhile, behind the scenes, the Bank of International Settlements (BIS) has been actively intervening in the physical gold market during July, as detailed by Robert Lambourne, a consultant to GATA:

Use of gold swaps and gold derivatives by the Bank for International Settlements, the gold broker for most central banks, increased by about 17 percent in July, according to the bank’s monthly report…The BIS’ July Statement of Account gives summary information on its use of gold swaps and gold-related derivatives in the month. The information is not sufficient to calculate a precise amount of gold-related derivatives, including swaps, but the bank’s total estimated exposure as of July 31 was about 485 tonnes of gold versus about 413 tonnes as of June 30.

That is an increase of about 72 tonnes or 17 percent. The increase came as there increasingly appeared to be a correlation between the gold price and the valuation of the Chinese yuan, both of which fell substantially during the month.

The BIS refuses to explain what it is doing in the gold market and for whom, engendering suspicion that it is helping one or more of its members to manipulate the currency markets through deception. To place the bank’s use of gold swaps in context, its current exposure of 485 tonnes is higher than the gold reserves of all but 10 countries. (documentation and links: BIS gold market intervention increased by 17% in July

The Rest…HERE

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