In part two of a three part series on market manipulation GoldBroker’s CEO Fabrice Drouin Ristori interviews Jim Willie. Via GoldBroker.com
Fabrice Drouin Ristori: How long can the manipulation of the precious metal markets last ?
Jim Willie: Rather than focusing on the time spectrum, think instead on the event spectrum. Focus not on a sequence of time, but instead on an event schedule in a chain. Systems are sustained by the corrupt players, institutions, and policies. The Gold manipulation will continue until the Gold market is totally broken, until the big banks that control it are totally broken, or until the USDollar & USTBond structures are totally broken.
The Asset Company’s Head of Research Jan Skoyles explains where the gold price is set by looking at the three different gold markets; the futures market, exchange traded products and the physical gold market
On April 12th 3.4 million ounces (100 tonnes) of gold was sold in the US futures markets. This was just for starters, the main, side and dessert appeared over the following hours and the next session on the Chicago Mercantile Exchange (COMEX).
As those in the West holding paper gold stood frozen watching the price tick further downwards, those in the East and others looking to buy physical gold, went on a shopping spree. Premiums on physical gold in China, India, Vietnam and across Asia hit highs associated with economic and geopolitical crises. Dealers struggled to keep up with demand.
As a part of a three part series GoldBroker’s CEO Fabrice Drouin Ristori will be asking the same market manipulation questions of Chris Powell, Egon Von Greyerz and Jim Willie. Below is the interview with Chris via GoldBroker.com
Fabrice Drouin Ristori:How long can the manipulation of the precious metal markets last ?
After the success of services such as M-Pesa, Kenya’s mobile-phone based money transfer service, it is clear that there is a large under banked population in the non-western world. A population that is quick to adopt low cost mobile based solutions.
A new mobile payment system, Dinero MPS, aims to offer a wide variety of mobile payment services starting with the unserved markets in Africa, South America and Asia. Founded by financial cryptographer Ian Grigg and entrepreneur Ken Griffith, Dinero’s Ricardian-Contract based system is set to launch later this year with the release of an Android phone app.
Dinero’s co-founder Ken Griffith shared with DGC insight on the businesses’ plans and motivations.
On Thursday CBC, Canada’s national public television channel, broadcast a new documentary, the Secret World of Gold.
The program explored the “the power and politics of gold” and covered a wide variety of gold’s shady history from Nazi gold to The Odyssey Marine, the paper gold market, gold leasing, Fort Knox and gold manipulation. In a surprising move for main stream media, the documentary includes interviews with Andrew Maguire, Erik Sprott and John Embry that discuss the amount of gold held by western central banks and gold market manipulation.
While some don’t believe that the documentary went far enough, it ends with this very relevant question, “in the 21st Century gold still manages to keep its secrets. Perhaps the biggest one of all, where is the gold and who owns it?”
“Gold sales from Perth Mint, which refines nearly all of the nation’s bullion, have surged after prices plunged, adding to signs that the metal’s slump to a two-year low is spurring increased demand.”
“’The volume of business that we’re putting through is way in excess of double what we did last week,’ Treasurer Nigel Moffatt said, without giving precise figures. ‘There’s been people running through the gate.’”
“World Gold Council, which has been tracking the global gold market pattern, has found that there is a shortage for bars and coins in Dubai which is creating a supply shortage.”
“Aram Shishmanian, CEO, World Gold Council: ‘We are already seeing shortages for bars and coins in Dubai, while premiums in Mumbai are at $26/oz and $6 in Shanghai, indicating that buyers are willing to pay more than current spot prices for the metal …Our view is that demand is strong while supply remains constrained, and that this dynamic ultimately drives the long-term price of the metal,’”
But you can’t buy your groceries with silver coins just yet, the bill, SB 1439, still requires the governor’s signature.
The legislation was inspired by Utah’s legal tender law passed in 2011. Arizona’s version would allow Arizona residents to use gold and silver with the same recognition as Federal Reserve notes starting in 2014… assuming of course that your local grocery store is willing to accept your silver coins; the bill does not require anyone to accept gold or silver in payment.
In a recent interview with USAWatchdog.com the always exuberant Jim Willie gives some very interesting predictions.
Jim sees the BRIIICS (that includes Iran and Indonesia) moving away from the US Dollar, the Yen and the Euro and adopting a USD alternative for trade. He believes the East will sell off its US bonds, continue to purchase gold (driving it up to $7,500) and perhaps adopt “gold trade notes”. As he sees it the consequences of this will not be inflation, but a “large widespread cut-off of supply chains” in the states as foreigners will not be willing to accept US Dollars.
The 28min interview is full of colorful commentary and interesting thoughts including the possibility of “bail-in’s” in the states.