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    Proof Central Banks Suppress Gold Price

    A must-read for anyone into precious metals citing the hows and why's of coordinated metals price suppression by the world's central banks: http://www.gata.org/node/10554.

    The cliff notes for anyone not wanting to muddle through it: Central banks worldwide have an agreement never to buy or sell gold on the public market and only to swap it amongst themselves to keep the price down vs the cartels' currencies to make it a less-better inflation hedge, for obvious reasons.

    It'll be interesting to see how China's new PAGE (Pan Asian Gold Exchange) will affect the Western cartel's influence in the global "spot" market and whether or not the Chinese elite can be brought into the fold or whether they'll go rogue and break things open a bit. The fact that the PAGE will be denominated exclusively in renminbi and open to retail investors is a very titsy move on their part so we'll see.
    ​"For the most part, it was pretty quiet all night long in gold and silver, but I'm sure the bullion banks are still lurking out there somewhere." -Ed Steer

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    Kind of glad in a sense China is putting pressure on the banking cartels.

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    Yeah, they're unlikely heroes in the matter. They're being careful about it, but the more external (that is, outside the western bank orbit) demand for physical, the harder it'll be for the Usual Suspects to keep shorting it with kited paper.

    There was a mass campaign awhile back, still promoted now and then, to crash JPMorgan/Chase by buying silver and demanding delivery. It didn't even have to be from them, the idea was to make it impossible for them to cover their naked shorts and force an accounting. It would be unlikely for small retail investors to have that effect but the principle is sound: they're short more silver than actual supplies and are being aided by the CFTC to do things like hike margins on the longs to force them out of their contracts lest they actually demand settlement in-kind. But China's not on that leash and their new market could conceivably force a more accurate valuation based on physical demand rather than futures.

    It would be a virtual Bastille Day of metals if that happened.
    ​"For the most part, it was pretty quiet all night long in gold and silver, but I'm sure the bullion banks are still lurking out there somewhere." -Ed Steer

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