Andrew Maguire (the whistleblower one) said this take down was done for the LBMA which was in default, couldn't deliver and was going to pay out in cash. The Fed nicely dumped the price by a few hundred dollars an ounce for the fix. Good way to defraud the customer....but ensures next time they will demand the physical.
So the Fed dumped $20bn of paper gold on the market to help out some bullion banks. Great.
So the LBMA was in default now what about tomorrow? Can the Fed simply dump billions of paper gold every time the LBMA asks? Don't think so as the client will now be aware of that game and demand the physical.
Still can't say the games are over.
SLR Price at posting:
$1.49 Sentiment: Hold Disclosure: Held
