Record High Demand For Physical Gold Threatens To Break The Back Of The Paper Gold Market
By Michael Snyder
August 15th, 2013
The demand for physical gold is exploding all over the world, and bullion banks are now experiencing a supply crunch that is absolutely unprecedented. As physical demand continues to rise, the massive Ponzi scheme that the bullion banks have been engaged in is going to become increasingly obvious, and at some point the lack of physical gold is going to break the back of the paper gold market and we are going to see the price of gold go to levels that we have never seen before. You see, the truth is that the central banks of the world and the bullion banks have made “paper promises” that vastly exceed the amount of actual physical gold in existence. This kind of scheme works fine if everyone does not come asking for their gold at the same time. Unfortunately for the ones running this scheme, people are now starting to ask for their gold back and it is causing huge problems.
It started earlier this year when Germany asked for 300 metric tons of their gold which was supposedly being held at the New York Fed. If the New York Fed really did have as much physical gold as they claim that they do, that request should have been no problem. Instead, the Germans were told that it would take seven years to fulfill the request.
At that point, alarm bells started to go off in financial circles all over the planet. People all over the globe began asking for their gold back, and now this is causing serious stress for the bullion banks. The following is what Hong Kong hedge fund manager William Kaye told King World News the other day…