Former Goldman Commodities Research Analyst Confirms “Paper Gold” Ponzi

Posted: March 30, 2010 in Uncategorized

To date this is the most important post from an investors standpoint on my blog.  The CFTC had a hearing on the LMBA Paper Gold Market last week.  In this hearing several valuable pieces of information were disclosed that are extremely bullish for precious metals.  Adrian Douglas, director of GATA confirms that “LBMA trades over 100 times the amount of gold it actually has to back the trades.”  Think about that quote for a minute.  The gold that is being traded every day for the most part does not exist.  The entire system is one gigantic Ponzi scheme.  This is a huge story that not surprisingly was not picked up by any major media outlet.  Once  people begin to understand this through outlets like the internet and large holders begin to demand delivery (which is beginning to happen) gold prices will absolutely explode.  There is a very limited supply and a growing demand.

Full story and video testimony here

In the same CFTC hearing a London-based precious metals trader who accused JPMorgan Chase of manipulating the gold and silver market was ironically involved in a hit and run the very next day, this story actually made the New York Post.  The police caught the suspect and is currently being questioned.  It has not been determined whether or not this incident was related to the hearing. 

Article Here

New York Post Article

Bottom line precious metals are very bullish for the forseeable future.  Will there be minor or major corrections?  The answer to that question is yes.  I hope for a major pullback in my eyes that would be fantastic so I can buy more.  It is likely in the near future we will go into a major deflation stage do to the unwinding of credit.  During this time it is likely commodities will be hammered.  Don’t worry stay confident this is a great story.  After the deflation eventually we will see inflation.  In the meantime people will continue to lose confidence in all fiat currencies around the world do to exploding deficits.  This phenomenon will attract more people to hard assets like gold and silver.


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