Our friend Turd from TFMetalsReport states that 2 independent sources have informed him that Eastern buyers have been taking London good delivery gold bars OUT OF THE LBMA systemdirectly to refiners, and the bars are being melted into new 1kg bars with official government stamps.
If true, this is an absolute paradigm changer for the cartel, as the paper shenanigans cannot continue with all the PHYSICAL GOLD being daily drained from the system!!
From Turd:
Beginning some time ago, but continuing today at an accelerating pace, physical metal is being purchased in London and then delivered out of the system. Under “normal” circumstances, this is not necessarily unusual. The bullion banks simply expect this metal to return to them at some point, where it can be re-leased, re-hypothecated and re-delivered in the future. This is how it has worked for decades.
However, this time it’s different.
What I have learned and have since been able to confirm via a second source is this: London Good Delivery bars are being delivered to Eastern buyers. Instead of being vaulted inside the LBMA system, these bars are being sent directly to refiners. The bars are then being melted and recast in 1 kilogram sizes. The new bars are then being stamped with official, government insignia and sent on to vaults outside of the LBMA system and points east, never to return again.
What does this mean and why is this important? Quite clearly this information, if accurate, has several significant ramifications:
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The Chinese and others are preparing for a new system. Whether it’s simply a new gold pricing and delivery system to replace the LBMA/Comex or whether it’s a new global trade settlement system that is guaranteed with gold is impossible to say, at this point.
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The physical gold supply of the LBMA and secondarily the Comex, much of which has been acquired/supplied through leasing, is being rapidly depleted and will not be coming back.
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The bullion banks, which have profited for years from leasing, trading, vaulting and the like, are about to feel the rather dramatic effects of this supply depletion.
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Oh, wish I had a kilo bar. I’ll just have to make do with my silver stack, it’s easier to acquire on a day-by-day, DCA basis.
I expect that now they have to guarantee that they are good delivery bars, the new owners are checking for Tungston filled bars.
True to the point Aragorn. This gets better by the day. Maybe this is another reason there are raids now on a daily basis. They are trying to make up as much as possible before……….LOL.
what are the odds that they’re doing something simillar with silver too?
By melting them down, the buyers are making certain there is no tungsten in them.
Smaller bars might be for more efficient trading in countries with a lower per-capita income than the west. You’d think these putzes would let the price rise, seeing as how all the central banks and most of the elite hold quite a bit of gold themselves. I guess they make so much money in the paper game they’ll sacrifice their own gold interests.
They are helping the Asians take it, apparently they have made a deal with the devil.
How do we know some of the new, recast 1-kilogram bars don’t have tungsten cores? It isn’t though the chinese are above cheating and doing this sort of thing.
Just sayin’…
back near $26.50 by Monday afternoon. Thinking the temptation to buy & buy
big will seize me too. BUT with margin change shenanigans gonna cream the
market end of July– still want/need to consolidate dry powder for what might be
$23 silver at that time.
anything???
lol I’ve read somewhere that tungsten is going to become just as valuable as gold and silver. I think I will rather take my chances with silver and a little bit of gold.
4 oz, you’re right. It could be dragged down there, or even lower.
In early 2009, with a price of 10 bucks or so, you couldn’t get any of the good stuff. I had to go around buying quarters and dimes. Some online dealers wouldn’t take any orders, others had an indefinite waiting period. The price was in the toilet, demand was going crazy, and none to be had. My local shop was closed for three weeks, went fishing.
Demand way up, price way down, makes sense to somebody.
Anyway, just something to consider. How much of your stack would you sell for $23?
The best time to buy is when you have some money and whatever you want is available.
That’s true Conax. My LCS will pull all the 90% and Eagles/Maples and leave just a few Rounds when the price gets too low.
(Hated paying $7.50 per coin above spot back in April 2011.)
Yep, once the premiums get above 3 or 4 bucks a lot of dealers just put it in the vault and wait out the storm. I don’t blame them. Why should they get screwed because of the loopy behavior of the paper crowd?
The phyzz has to be bought up and removed from the bullion banks’ custody, then we will see what the real price is. This is why all the hit pieces and negative press are out there. They want you to stop buying, wait-and-see, go into faceplant stocks, anything but that daggum silver.
The Chinese and Indians will buy somewhere on the order of 250,000,000 ounces of silver this year, just like last year That’s 30% of the world production supply of silver China is doing everything they can to buy silver and they are either #1 or 2 in mining of silver. Their mines product 300 tons of gold and they should complete above the radar purchases of 1,000 tons of gold this year too. Whatever comes under radar, as alluded to by Jim Willie and his essays about the Chinese breaking the bullion banks of their gold when they get caught on the wrong side of the trade, adds to the notion that China might acquire 5,000 tons this year, mostly from the bullion bank mistakes. Italian and Spainish gold will be in play and those two stacks are over 5,000 tons. If Hommel is right and gold hits $55,000 an ounce, this much gold could partly or fully backed a New Euro or a combination of the BRIC currencies. The US and UK will be much the poorer as a result
They can keep their FACEPLANT and APPLEDUMPLING stocks Conax. Those are just FID NEWTONS of everyones imagination. Own it, hold it, feel it and use as necessary the rel deal (PMS’s).
AGX said” under the radar”. Not only China but other eastern countries are doing the same. No audit here of our gold and no real buying of gold by our gov. He who has the gold makes………
Nuff said.
the population isn’t even warmed up yet. Shoot. The population isn’t even awake.
Yet. Just wait. The rubber will meet the road when it becomes clear available
above ground silver is actually almost exhausted.
The Chinese are play a dirty strategy in a rigged game… I like it. I cant wait for that new system.
Best thing that ever happened to them. Their stacking the physical stack and cutting out the middle man. No more storage or management fees. You gotta love it.
As for Silver dropping, I doubt it, something big is about to happen soon, I feel it in my gut.
I think you are right Marchas45, the fundamentals all point to gold going straight up and taking silver with it. Looks to be very soon, hold on to your hat mate
TF’s comments about the buyers cooking down the bars is significant, because while the Bars are in the LBMA system, they are accountable, even if they are in an overseas LBMA vault. Each bar has about 10 owners and each of those 10 owners have the “bar number” printed on their own Gold Certificate. If the bar owner wanted their bar tomorrow, the LBMA would find it on their computer system, and say, yes here it is, it is in the LBMA 12345A Vault.. The Problem with taking the bars and melting them down, and sticking Chinese Dragons on them and sending them to China is, this makes this bar disappear forever. If any of the 10 owners of the bar, wanted physical possession, it would not be available. Of course the LBMA would say “We have your bar, but the number has changed” Okay this works, but for how long. If 10% of people came in and took Possession of their physical, the vaults would be empty in an hour. The message here is to cash in your Gold Certificates and pick up your Kilo Bars, and don’t be surprised if the Gold bar given does not match the number allocated on your certificate. Physical Gold is running low, take your Gold out now.
Right on psycho.
Remember articles?
Ned Naylor-Leyland Reveals Actual Owner of Bob Pisani’s GLD Gold Bar!!
Harvey Organ: Gold Rehypothecation- COMEX, the LBMA, GLD, the Bank of England- IT’S ONE INVENTORY!
Their ponzi scheme is collapsing so they’re stealing their customer’s gold right out from under them–brilliant.
Melting the bars is the paper shredder for gold. Instant re-hypothication just add 1064.43 °C. What do you think the odds that Bob’s bar is going to be melted and shipped overseas?