The massive sales we have seen over the past few weeks have been recorded as ECB central bank sales during that period. Unless the ETFs made some very large sales of gold, that can only mean one thing - gold leasing! We know that gold lease rates have not plummeted the way they used to, but that is because you exposed what was happening and now they are stuck with higher rates. But, let's face it, with rates at .2%, that is a small price to pay as far as the cartel is concerned when it comes to silencing the gold alarm.
We believe the central banks are leasing the gold to the bullion banks, which are then selling the gold to a different central bank, thereby re-monetizing the gold as opposed to a sale to a non-bank, such as a jeweler, which would demonetize the gold. The new central bank then leases the gold to another bullion bank, which could then sell it to a non-bank, demonetizing the gold, or sell to yet another central bank, thereby re-monetizing the gold again. This way multiple sales are created using the same gold bullion, thereby giving the cartel greater manipulative power than any other market player.
Basically the same gold bullion can be both leased and sold multiple times, and the same bullion can end up serving as gold reserves for multiple central banks. This explains why they are running out of gold even though the books of central banks around the world show 30,000+ metric tonnes of reserves. Most of the gold shown as reserves has eventually been demonetized by sales outside of the banking system, and what actual bullion is left is a fraction of paper gold reserves shown on the books of central banks. And this is all made possible by the fact that leased gold is still treated as an asset by central banks, and still shows as part of their gold reserves even though the lessee bullion bank has actually sold the gold.
The convoluted rules allow the lessor central bank to treat the gold as if it had title to the gold even though the gold has been sold by its lessee bullion bank. In addition, we know of no other business situation where a lessee can sell anything the lessee has leased from a lessor without the lessor's consent, or, in the case where a lessor's consent is obtained, where that lessor can continue to carry the asset sold with its consent on its books as if it still owned the asset! This has got to be the scam of the century!
The Washington Agreement is then used to launder all these convoluted lease transactions. All planned sales under the Agreement are made public to push gold down, while purchases by bullion banks all clamoring to square their leases when gold shoots up are done as private sales with the central banks so the bullion banks do not have to go into the public marketplace, thereby driving gold prices up. This is how bullion banks are bailed out of leases that have gone bad, especially when gold suddenly skyrockets and messes up their books, and is the primary reason for heavy-handed manipulations, which we call gold-bashing, since sales between banks are probably made at market. The gold restored by the bullion banks to the central banks in order to square their leases can then be used for further manipulation or leasing. We have observed that the Swiss National Bank and Bank of England under the first Washington Agreement, followed by the Bank of England and the central banks of France and Spain under the second Washington Agreement, have acted as sacrificial lambs, along with producers like Barrick and their forward sales, to provide the gold needed to square leasing accounts. The Washington Agreements were necessary because the US had already been taken out of its gold (or as much gold as it was willing to contribute to the elitist cause) and those with unencumbered bullion had to agree among themselves who would take up where the Fed and the US Treasury had left off. Preventing gold manipulations such as those used to save Long Term Capital Management had nothing to do with it whatsoever!
It should also be noted that the principal demonetizers of the central bank gold who have taken it out of the banking system are the Illuminists themselves, who are hoarding it for a tremendous profit and to fund their next Ponzi-scheme currency. They have effectively raided the gold reserves of their own banks or the gold reserves of national treasuries controlled by their implanted underlings, and always at bargain-basement prices, like the Rothschilds buying gold from the Bank of England at the bottom of the gold market.
In the case of the US, all of our gold has been either stolen or swapped out. The swaps were initiated in the US, at the direction of the Fed, by the United States Treasury acting through its Exchange Stabilization Fund, but actually manifested in the European markets as multiple lease-sale transactions until the gold pushed into the market by use of the swaps was sold several times and then largely demonetized. This is how the Fed and the US Treasury kept a low profile, making it look as if most of the selling was being initiated in Europe when the Fed was the real culprit. Otherwise the US public would have become very suspicious of the Fed and raised an outcry against it, even more so than it did and much earlier on. So now we have "deep storage gold," but we might as well call it "deep six'd gold" since this gold is dead, gone and buried.
We will get into all of the above in considerably more detail in the article I am working on. The article may take some amount of time as the subject matter is very complex, and due to the secrecy maintained by the cartel concerning many aspects of these gold transactions, one is forced to make conclusions based on logical extensions of the small kernels of facts, which we have been left to pick from.
On Thursday, gold ended up $2.80 at $651.60 and silver was up $0.08 to $13.10. The September gold contract rose $3.20 to $655.90, silver rose $0.11 to $13.17 and copper jumped $0.07 to $3.39. As you know the Swiss said they would sell 250 tons of gold. We believe the sale is to allow Swiss banks to cover their shorts, just as Gordon Brown was directed to do when gold was $275, to allow British banks to cover their shorts. This gold we believe was sold long ago. The London second fixing was $653.25 spot. Gold was up over $5.00 and then was attack via the electronic market. The PPI was up 0.9%, which is inflationary and dreadful, so the market rallies. The world knows inflation is far higher than the government admits too. You can bet the Swiss gold announcement, their raising of interest rates, as we predicted they would, to a 6-year high of 2.5% up from 2%, was coordinated to hit as the PPI was announced. This is managing inflation expectations or market manipulation and lying. Wednesday’s gold open interest was up another 3,809 contracts to 415,959. The big Tocom shorts on Wednesday reduced their shorts by 1,557 to 136,918 contracts, as Goldman covered 150 to net 23,987.
