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!!
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:
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.
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.
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.