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Wednesday, August 28, 2013

Updated Version Released for RealPriceofGold.com

I wish to thank all of you who participated in the poll and sent me emails. Based on the feedback provided by you and my own analysis, I have made many improvements to the site and added some new features.  You can check out the new version by going to realpriceofgold.com. These have been designed to improve the usability of the site and help everyone get a more comprehensive and accurate picture as to state of “premiums” in the market and provide a reliable signal as to how close we are to a breaking point in the market for Paper vs. Physical Gold.

 New features in this release are:

1. You have an option to view the premiums as a percentage or the absolute value.
2. Both absolute and percentage values for the premiums can be viewed as either a smoothed graph (rolling average) or raw data (a bit more spikey).
3. Price data can be viewed in multiple currencies. The forex rates used for conversions are always obtained in real-time. Right now there are 14 currencies. Let me know via email if you need more currencies.
4. For each weight denomination, data is now being obtained from multiple dealers so as to get a better idea about the state of the premiums in the market. For a particular dealer, only the lowest price for a particular weight denomination is obtained. An average is also calculated and displayed so as to get an overall idea.
5. For all weight denominations, current price data can be now exported as an Excel file.
6. You can download chart snapshots as image files.

Make sure to review the “Data Collection” and “Charts Guide” sections of the website as they explain in detail how the new process for data collection, data display and how the charts work.

Features Scheduled for Next Release:

1. Embeddable charts
2. Inclusion of dealers/products outside the US.

If you wish to see any more features or have a suggestion about improving the usability of the site, please DO email me. My email address is visible here: http://www.gekkosblog.com/p/contact.html


Thursday, July 11, 2013

Roadmap for the Real Price of Gold Initiative

There has been a great amount of interest and feedback from the readers regarding the “Real Price of Gold” initiative. It seems there is a great need for this type of real-world info which the collapsing banker cartel-controlled financial system cannot or is not willing to provide. No matter, we can do it on our own. We don’t need those parasites for anything.

Based on the feedback I have received, I have identified the following features that should greatly improve the usefulness of the site.

1. A chart or table (or both) showing prices being charged by different dealers for the same product i.e.,  a comparison of the premiums being charged by different dealers for a given product.
2. Ability to view the premiums as a percentage over spot.
3. Ability to view/convert the price data in different currencies. This is a precondition to another feature:
4. Inclusion of prices being charged by dealers worldwide i.e. in currencies other than the USD.
5. Inclusion of some more products. Right now the site only displays data for cheapest product of a given weight denomination. The idea is to include other popular products like Krugerrands, American Gold Eagle, etc.
6. Ability to embed charts

Please let me know what features you would like to see by voting in the poll below. This will help me prioritize development.

Note: You can select multiple options if you’d like to see development on multiple features.

polls

Right now I’m doing the development myself and my hosting/data storage costs are manageable. But as the features and traffic and associated bandwith/data storage increases, so will the costs and the time spent. Therefore those of you who find this service useful please contribute. You can either do a one time contribution or “subscribe” with a monthly contribution. Both are voluntary as the site is free to use. Please use the PayPal option at the top or in the right menu. I’ll be adding a BitCoin option as well soon.

The Advertising Option

If any individual or organization wishes to advertise on this site or realpriceofgold.com, please send me an email. This too will help defray costs.

If you have any other suggestions, please feel free to let me know in the comments section.

Thursday, July 4, 2013

Glenn Greenwald Speaks - The Guy Who Published the Snowden Leaks

This is a must watch video as Glenn Greenwald of the Guardian (who Edward Snowden approached for publishing his leaks) speaks his mind. It has revelations about Snowden, how he came to meet him and tells us the dilapilated condition of journalism in the US (and indeed the world) among many other things. If you have any doubts about Edward's motivations, this should remove it.

It's a bit longish but highly watchable video. It will be worth your while. You can skip the first 10 minutes which mostly consists of introductions, etc.



Hat tip to one of the commenters on my blog, Mr. Blair T. Long, for bringing this to my attention.

Wednesday, July 3, 2013

The U.S. vs. Edward Snowden: Does the World Not Have the Courage or Decency to Protect Mr. Snowden?

Something hit me very hard once, thinking about what one little man could do. Think of the Queen Mary — the whole ship goes by and then comes the rudder. And there's a tiny thing at the edge of the rudder called a trimtab. It's a miniature rudder. Just moving the little trim tab builds a low pressure that pulls the rudder around. Takes almost no effort at all. So I said that the little individual can be a trimtab. Society thinks it's going right by you, that it's left you altogether. But if you're doing dynamic things mentally, the fact is that you can just put your foot out like that and the whole big ship of state is going to go.

So I said, call me Trimtab.
--Richard Buckminster Fuller


Who is Edward Snowden?

Actions speak louder than words, and by his actions alone Edward Snowden has proved himself to be a real American Hero, a Patriot and somebody worthy of being called a Citizen of the World.  The sheer amount of personal risk he took was by no means trivial, and the reason he took it for makes it even more significant. I know some people are doubting his credentials and motives now, but it only exemplifies how cynical and cruel we - our current so-called “civilization” - has become. I’ve read his posts on Arstechnica, and to me he just comes across a normal kid of our generation who’s sick and tired of the corrupt and decaying system – the only difference being that he had the courage to do something about it.  Moreover, the fact that he’s being hounded by the western global leadership only further goes to prove that he’s done NOTHING wrong. He put his and his family’s life on the hook just so millions could benefit. He had the courage and conviction to stand up to the most powerful government and military force in the world on the grounds of principle alone. He EXACTLY represents what America was and is all about – an individual standing up against tyranny, an individual standing up for his beliefs - and he is doing EXACTLY what the Constitution of the United States demands of its Citizens. And instead of hailing him as a patriot for being a defender the Constitution, many in the public are calling him a traitor. Indeed:

Every nation gets the government it deserves.

--Joseph de Maistre

So far people of the United States have shown to be extremely deserving of their current government.

The morons and mafia agents in Congress (who, by the way, had special exemptions for themselves from NSA surveillance – the mind BOGGLES at the SHEER HYPOCRISY here) decrying Edward’s actions as treasonous are themselves guilty of treason. They have utterly and completely FAILED to uphold the Constitution of the United States. Read the following from the Declaration of Independence and tell me if we are in a different situation today or if Edward’s actions were not aligned with what the Constitution required of him (or all of us, for that matter):

We hold these truths to be self-evident, that all men are created equal, that they are endowed by their Creator with certain unalienable Rights, that among these are Life, Liberty and the pursuit of Happiness.--That to secure these rights, Governments are instituted among Men, deriving their just powers from the consent of the governed, --That whenever any Form of Government becomes destructive of these ends, it is the Right of the People to alter or to abolish it, and to institute new Government, laying its foundation on such principles and organizing its powers in such form, as to them shall seem most likely to effect their Safety and Happiness. Prudence, indeed, will dictate that Governments long established should not be changed for light and transient causes; and accordingly all experience hath shewn, that mankind are more disposed to suffer, while evils are sufferable, than to right themselves by abolishing the forms to which they are accustomed. But when a long train of abuses and usurpations, pursuing invariably the same Object evinces a design to reduce them under absolute Despotism, it is their right, it is their duty, to throw off such Government, and to provide new Guards for their future security.

(All emphasis mine)

The oppressive regime of the current US Government - running an increasingly violent global empire whose sole aim is to exploit people for the personal benefit of the few - exactly fits the definition of the type of Government the founding fathers were trying to overthrow.

Ironically, the ONLY saving grace for the US in this whole fiasco is probably the fact that Edward Snowden is an American. If the founding fathers were alive today, no doubt it would pain them greatly to witness the transformation of the country they founded into all out tyrannical dictatorship. But seeing Americans like Ed Snowden exist, seeing the words they wrote hundreds of years ago continue to inspire and enlighten people in current generations , they would know they had done something right – that their efforts had not gone completely in vain. Edward, we salute you proudly brother, and wish that there are more like you in America and all other countries around the world who have the guts to stand up to increasingly fascist (but proclaiming themselves to be “democratic”) governments. Have no doubts, you have done the right thing, even though at great personal costs for which the people of this world shall forever be indebted. The world would be a much a better place if there were more like you. You are definitely a “Trimtab”.

The Rationale for Global Spying

The US government has provided as justification for its global spying operations the need to protect itself from “terrorists”. The fact of the matter is that if you do some digging, you’ll find that most of the so-called “terrorist organizations” in the world today were either created or supported militarily/financially at some point by the US government itself. Case in point is the current dictatorship in Egypt headed by an American puppet:



Saddam was a US Government puppet before he went rogue, the Taliban was also created by the CIA, among many others. Currently the US is busy arming terrorists in Syria. In fact, while it pretends to be running scared of “terrorists” all around the world – the US Government is itself the biggest terrorist on Earth. The people of Egypt have realized the truth, so must the rest of the world. The truth of the matter is that the people controlling the US government need these spying operations in order to have information on and thus control over the global slave population which are needed to run their empire.

A Corrupt and Bankrupt Global Bully

The US Government is a morally and financially bankrupt entity that in its megalomaniac delusion expects the world to “obey” it. It has the GALL to demand the very countries that it’s openly mocking and decrying to obey its demands. It is threatening them with “consequences”.

"We've got to start dealing with Vladimir Putin for what he is. [Putin is] an old KGB colonel apparatchik who disdains democracy [and] continues to stick his thumb in our eye."

--US Senator John McCain

"Mr. Snowden's claim that he is focused on supporting transparency, freedom of the press and protection of individual rights and democracy is belied by the protectors he has potentially chosen - China, Russia, Ecuador, as we've seen,"

--White House spokesman Jay Carney

"I wonder if Snowden chose Russia or China for assistance because they are such bastions of Internet freedom...[I] would be deeply troubled [if Russia and China knew of Snowden’s plans] and there would be, without any question, some effect and impact on the relationship and consequences.

--John Kerry

(All emphasis mine)

And instead of making use of the opportunity that destiny has provided them to call the US government on its bullshit and expose its hypocrisy; instead of using the opportunity to show some semblance of gratitude for Mr. Snowden’s efforts to reveal the US Government’s attacks on their sovereignty and do the right thing; instead of showing the world that US hegemony will not be tolerated and people who expose tyranny and risk their lives in service of humanity will be protected; instead of showing the people of this world that there are truly independent nations unwilling to accede to the demands of a dictatorial regime, none of the other countries has done anything. Ecuador and its president Rafael Correa seems to be a petty little man who’s in it only for the fame. He was happy so long as he was gaining all the popularity and sympathy from his nation and the world with the Assange case, seems suddenly to have become goody two-shoes obedient little boy of the master when Biden came with a beating stick and Assange’s role and media coverage in the case threatened to overshadow his:

“The moment that he arrives, if he arrives, the first thing is we'll ask the opinion of the United States, as we did in the Assange case with England," Correa said. "But the decision is ours to make.”

Bullshit. BULLSHIT.

But is this what we have come to? The world is relying on one small unpredictable nation to do the work that must be shouldered by all? Why doesn’t a single nation have the courage to stand up to the Imperial American Government? It can’t be military power, for it is unlikely the US is going to launch a military strike, especially against countries like China or Russia just to get Snowden back.  What then, the United States won’t “buy” any more of your stuff with borrowed and/or freshly printed paper money? Great. Who the hell wants a deadbeat customer offering nothing in exchange but worthless paper money? The world must realize that the US Government is a paper tiger simply surviving on the basis of running a global financial scam. All its power is based on lies and deception which is EXACTLY why disclosures, such as by Snowden, threaten it to the degree they do and why the US Government is hell bent on prosecuting the leakers. The US government is a bankrupt entity pretending to be a superpower expecting the world to obey its dictats. It’s time the world showed the US a mirror and told the emperor he’s naked.

Feckless Countries and Politicians

Sadly, the countries which denigrate the US have themselves shown to be no better. They claim to be “independent” nations yet are afraid of offending the United States. None of them seem to be able to stand up for themselves or for the greater good. The feckless politicians ruling them are hiding behind “laws” and technicalities but who otherwise have no hesitation in looting the public treasury or starting wars or killing their own citizens when their personal agendas or profit motives are involved. Apparently Mr. Snowden cannot travel because his passport has been (unlawfully, mind you) revoked. So what? Are we supposed to believe it is so difficult to issue him one by one of the other nations? Let me tell you, if he were a spy for some nation or even a low level operative helping the banksters in one of their looting schemes, TEN passports would have been issued to him instantly. This only goes to show that most governments today, “democratic” or otherwise either belong to or are subservient to the same criminal mafia. They have demonstrated that they aren’t independent nations but mere colonies/puppet states of the US Empire. In fact, most of the political leadership of the world seems to be in cahoots with each other sharing the same bed. These so-called countries are mere prisons with their political “leaders” prison wardens appointed by and/or serving at the pleasure of the US government. They are happy to exploit their prison populations for personal enrichment but with the permission of and in collaboration with the US and the cartel controlling it. This is the only explanation for the deafening global silence and inaction in the Snowden case.

Mr. Snowden’s Shameful Treatment

Letting Mr. Snowden loiter indefinitely in a transit area, is this how the world, especially Russia, want to be seen and recorded by history as having treated those have made the ultimate sacrifice for the greater good? Whatever treatment the US government has in store for Mr. Snowden, he is already being punished by being forced to sit inside an airport terminal in God knows what conditions. Is this how the world intends to thank Mr. Snowden for his services? To the leaders of Russia and China: It’s not some spy we are dealing with here – here is a person who has taken a stand to protect the greater good – and unless, like Europe, you were a subscriber of the NSA “data sharing plan” – exposed massive US spying on your government and citizens. Instead of celebrating and taking the opportunity to reveal the hypocrite bully that is the US Government, you are debating and hiding behind technicalities? It’s your chance. If you fail now, you lose your face in the world and your standing to criticize the US on ANY issue EVER. Moreover, it gives us reason to believe YOU WERE IN ON IT.

The world needs to come together if this banking cartel’s US Government’s tyranny has to end. If the rest of the world can’t protect somebody like Snowden then they have no right to complain against whatever atrocities the US Government commits. They have NO right to complain against NSA surveillance.
Today I am – as we all must be - ashamed to be a part of this world, this race and the current feckless iteration of the human civilization. We have shown ourselves not worthy of the courage and sacrifices of people like Mr. Snowden. Shame on us. The way Mr. Snowden is being treated, it almost seems better not to do anything and leave this world to the fate it deserves. If there is not even one person or one country able to stand up to this tyranny, we are all doomed to exploitation and extinction and rightly so. If we don’t do something NOW, then the day is not far when there will be a Nazi concentration camp in each and every country on earth. No more Snowden’s will sacrifice themselves for us.

A Warning to Global Politicians

Let’s be very careful about who we call "traitor". Edward Snowden is one of us. Bradley Manning is one of us. They are young, technically minded people from the generation that Barack Obama betrayed. They are the generation that grew up on the internet, and were shaped by it. The US government is always going to need intelligence analysts and systems administrators, and they are going to have to hire them from this generation and the ones that follow it. One day, their generation will run the NSA, the CIA and the FBI. This isn’t a phenomenon that is going away. This is inevitable.

And by trying to crush these young whistleblowers with espionage charges, the US government is taking on a generation, and that is a battle it is going to lose.

--Julian Assange

(All emphasis mine)

Rest assured, people around the world are watching the Snowden case VERY carefully. The means adopted were peaceful and motives genuine. If they determine that the world politicians will not support honest conscientious people and their actions; if it comes to light that the world governments were pretending to be surprised while being neck deep with the NSA and US government in this quagmire, no one else will offer themselves at the altar – not so easily. If the US Empire and its minions think they can control the population by gathering information and spying on them, they are sadly mistaken. Truth is like a virus without symptoms and no cure – you will never know who has been infected and they WILL destroy your empire from the inside much like a termite slowly destroys grand structures. Snowden and Assange have only fired the first warning shots. The war has not even started yet.

The slaves – once aware – will conclude that the current global leadership must be dealt away with and their regimes will be overthrown and new governance installed. The clock is ticking on the current world order of FAKE puppet fascist “democracies”.

In the end the Obama administration is not afraid of whistleblowers like me, Bradley Manning or Thomas Drake. We are stateless, imprisoned, or powerless. No, the Obama administration is afraid of you. It is afraid of an informed, angry public demanding the constitutional government it was promised — and it should be. 

--Edward Snowden

(All emphasis mine)

Be afraid. Be very, very afraid.


Friday, June 28, 2013

The Great Comex Paper Gold Dump: Online Real-Time Physical Gold Price Datasource

So, Gold is apparently “falling” again? But is it? Really?

Before we can answer that question, first we must ask - What is “Gold Price”? Even more significantly, why the hell is Gold and its price so important anyways?

So lets’ begin.

An Empire of Fraud and Deception

The US Government – operating today under the control of an international banking cartel/mafia – is running a global empire whose sole aim is to exploit the many for the benefit of the few. But because the people won’t be exploited willingly, you have to control them. Now, sure, you can use chains and whips like the good ol’ days, but then the slaves won’t be as productive and may even revolt if exploited too much. Indeed:

"None are more hopelessly enslaved than those who falsely believe they are free"  
--Johann Wolfgang von Goethe


So massive lies and deception such as – it’s a “free society” governed by rule of law, it’s a democracy, the government is there to serve and protect you, you have a right to privacy, you can be a Bill Gates or a Warren Buffet too if you just.work.hard.enough., etc. – are used to first sedate the people and then they are raped and pillaged using the biggest deception of them all – the currency. Whether it is secret surveillance on a global scale, wars based on false pretenses, luxurious summits, Bilderberg conferences, massive transfer of wealth from poor to the rich – all of that is enabled by paper money – the US Dollar. Ever since its Gold backing was removed (first internally, then externally) the dollar is nothing but a worthless piece of paper which can be printed (or created digitally) in unlimited amounts by the Central Bank, therefore enabling the government and people who control the banks to appropriate unlimited resources from the global economy (since the dollar is the world reserve currency) for their benefit. Due to mass ignorance on monetary matters (deliberately fostered since the education system and media is also under the government’s - and by implication the cartel’s - control), people normally don’t pay any attention to it and continue to work and provide valuable output in exchange for worthless pieces of paper (for a detailed treatise on the paper money/debt fraud and the role of Gold, please refer to other articles my blog).

So for an empire based on lies and deception, the biggest threat is if the lies start falling apart. If you’re wondering why a “superpower” like the United States is so threatened and infuriated by the disclosures of an allegedly low level employee, wonder no more for more than the technical details, it is the fact that they expose the LIES, and thus threaten their control over the slaves.

Imagine how they would feel if the biggest of their lies underpinning EVERYTHING was exposed?  Gold is the only standard against which the dollar’s value can be truly measured since all other currencies are unbacked pieces of paper as well (well, they are “backed” by the dollar, if that makes any sense). If the Gold price rises too much too fast, it would expose the worthlessness of their fiat franchise, the slaves will no longer work in exchange for it and which is why they need to keep it under control NO MATTER WHAT. This is why they have designed elaborate mechanisms in order to help hide the true Gold price. But, in the words of a true American Hero and Patriot, Edward Snowden:

Truth is coming, and it cannot be stopped.

What is “Gold Price”?

What you – and the world at large – refers to as the “Gold Price” today is actually the price of "futures" contracts traded on electronic "futures exchanges" operating in various countries, primary among them being the COMEX in the US operated by the CME Group and "regulated" by the CFTC.

So what are "futures" and what is "spot price"? As per goldprice.org:

Futures contracts, or just Futures, are standardized contracts for delivery (the seller delivers) or receipt (the buyer receives) some fixed quantity and quality of a commodity. Futures contracts are available for each month of the year. For example, a contract for delivery of December wheat can be purchased in May the year before.

The "Spot Price" (price of Gold for immediate settlement/delivery) - the price used as reference Gold price throughout the world today - is simply the price of the futures contract of the "most active month" (most number of transactions) trading on the exchange, with the month referred to as "spot month".

(For those of you familiar with the futures market fraud, you can skip the next 2 sections).

How Its Supposed to Work

Now, in theory, the futures price should accurately reflect the price at which one can obtain the actual physical metal since the futures contract is a legally binding contract to deliver the actual commodity. The exchanges have registered warehouses where the commodities with the requisite specs stated in the contract are stored to be delivered, should the buyer (remember this for later) choose to stand for delivery. A point to be noted here is that the futures exchanges allow trading on margin, i.e., you have to put up only a fraction of the actual contract value to trade, whether buying or selling (the amount of margin is decided by the exchange). If you're selling you can go "naked short" (sell a contract without possessing any Gold, only putting up a cash margin). So this type of contract trading on cash margin has a loophole in that a player with sufficiently deep pockets could overwhelm the market by introducing a large supply of contracts (buy or sell) causing panic selling or buying and unduly influencing the price to their benefit. Trading on margin facilitates this because for a big player putting up 5-20% cash margin is easy (even if it's in the billions), but procuring a large quantity of raw material, especially something like Gold, is rather difficult and subject to rules of nature. But the price manipulation can't last forever because at some point either you have to come up with the Gold (if you're selling) or front the full amount and take delivery (if you're buying) unless you choose to roll your position to another month. Now rolling over isn't without costs so if a player manipulates the price, it's usually for a short duration to profit from the price move and then they cover their position, at a profit of course. But the exchanges have safeguards against this in the form of position limits (no. of contracts bought/ sold at any given time) and also there are numerous regulations which obligate the exchange and its regulator to monitor trading activities and look for signs of fraud and manipulation. Hence normally such manipulation shouldn't be possible, and if it happens, is detectable and can be stopped.

So everything looks good, people are trading, real price discovery is happening, price manipulators are at bay, people are playing fair, Obama is bringing hope and change, there is freedom in the US of A, and everybody can live happily ever after.

How It Actually Works

Unfortunately, reality is a b**ch.

Now, what if there was a sufficiently large entity - so powerful as to be able to control the exchange and its regulators - having access to unlimited money with vested interest in manipulating the price - not for a short term cash profit but for other motives and a longer duration. Would that be possible?

Think about it. But even if it's possible, why would somebody want to manipulate the Gold price? That too, for a long duration and not for a cash profit (because it already has unlimited cash). Who would want such a thing and what would they gain from it if not cash profits? Cui Bono? Does anyone/anything come to mind? Who has "unlimited cash"?

Yes, that's right - the Federal Reserve. Now the Fed is just a front - collectively it can be referred to as the banking cartel or banking mafia which includes entities such as JP Morgan, et. al.

These guys are sufficiently powerful and have a fairly strong motive in controlling the Gold price because Gold competes with the worthless paper currency issued by them. A rising Gold price signifies declining value and confidence in their paper money franchise. They have to protect it at any cost. If this sounds too conspiratorial, well, I only have one word for you: PRISM. For a detailed explanation of why this is the case, please refer to these articles here, here and here.

They exploit the following loopholes to achieve their objectives:

1. Most people trading futures end up NOT taking delivery. A majority are simply speculators interested only in profiting by betting on the price movements (and some hedgers who do not wish to go through the hassle of taking delivery) trading on margin. The bankers know this. Hence there are a lot more paper contracts floating around than there is real Gold. They are betting most won't bother and so far they seem to be right. Take a look at this extract below (via maxkeiser.com):

... COMEX continues to hold its place as the largest and most sophisticated meeting place for buyers and sellers to express their gold price opinions, in the form of bids and offers, on what the price should be. COMEX remains the beating heart of gold price discovery.

Gold futures contracts are referred to as "paper-gold" because the size of this market is said to be over 100 times larger than physical gold available...open interest on the COMEX, at the time of writing, accounted for over 85% of demand on the gold futures market, so COMEX receives the most examination here. In theory investors are able to take delivery of the futures contract on expiry, although few do, instead choosing to roll the contract...the fact remains that all the long positions on COMEX cannot be settled in gold.

2. As explained above (I suggest you read the whole article), Comex operated by the CME Group in the US is the primary futures exchange for Gold and is the trendsetter for Gold prices worldwide. They control the price on Comex and the rest of the world follows.

3. Since they (indirectly) control the exchange and its regulators (Crimex Comex and the CFTC), position limits don't apply to these guys. They're above the law. They can issue an unlimited supply of paper contracts whenever they wish to suppress the price and if required, can indefinitely roll over till the longs bleed dry. If you don't believe this, please explain how this happened.

Yes the longs can stand for delivery but most are heavily leveraged so few do. In a panic, even if it's manufactured, everyone bolts for the door.

4. If you have never taken delivery from the Comex, I suggest you give it a try. It's not easy. Even though the Comex is the primary price setting venue for Gold, the people in charge there have done their utmost to make it a huge hassle to take delivery. This is intentional. The promoters of Comex DO NOT want you to take delivery, but only gamble in their casino. If they win, great; if not, they can always pay you off in freshly printed casino chips (dollars) - just don't ask them for the Gold. If you did, the whole enchilada would come falling apart.

Disconnect Between Physical Gold and Gold Futures Price

But this manipulation is not without consequence and cannot go on forever, no matter how powerful they are. The bigger the manipulation, the greater the blowback. To explain things better, read the following (from one of my previous articles):

Anyone who has actually traded the Gold futures market for any length of time knows that this [manipulation] happens on a regular basis. So basically the government/Central Banks use the paper gold futures market as a price control mechanism for Gold (of course, they can't impose price controls on Gold overtly as it would reveal the lie - if Gold is a barbarous, meaningless relic why would you need to impose price controls on it?). But what happens when price controls are imposed on something? Shortages start to occur resulting in an even greater moonshot in price than would have otherwise occurred. A "black" market (which is actually the free market at play and depicts the true price of the commodity) eventually emerges where it sells at a premium to the official price. There are two reasons for this:

1. Buyers - aware that the commodity/good is available at a discounted price - beat a path to the door of whoever is foolish enough to sell it at the government mandated price. Availability at that price soon runs out.
2. The good becomes even scarcer as the costs of producing and selling it are no longer covered by the government mandated price. Aware of this, sellers withdraw from the market and demand ever higher prices for the good.

And remember: for marketable goods, the "out" is money, but the only "out" for money is a superior form of money. When the paper currencies become unstable, the only "out" is Gold so you can be sure there will be no lack of buyers, only sellers - and there is no upper limit to high it can go. Theoretically, the price will be infinity when no seller is willing to sell Gold in exchange for paper. You want to be "out" of paper before we reach that event horizon.

If the rigging in the futures market keeps continuing, the futures price at some point will decouple from the physical and become meaningless. This is exactly why you should use this opportunity to buy as much physical as possible at discounted prices while there are foolish sellers still willing to sell at the stated official (futures) price.

What’s happening in Gold futures market right now (and has been forecasted before) appears to be the beginning of “the disconnect” between “Paper Gold” a.k.a. futures and “Real Physical Gold”. Entities who:

a. Were/are solely in the game for cash profits and don’t understand the fundamental basis for buying Gold but ride the price trends in the futures casino

b. Have realized that the paper gold is nearing its end game and want be solely be holding the physical

c. Have been holding futures but are unable obtain physical Gold from the Comex

d. Need to liquidate futures positions to obtain dollars (for whatever reasons, e.g. funds which need to return money to their investors in dollars, morons going to dollar as a “safe-haven”, etc.)

are in the process of dumping paper Gold (including the fraudulent GLD ETF) en masse along with the bullion banks (ala JP Morgan) who have a vested interest in keeping the price low. This is what Andrew Maguire had to say recently regarding the physical market:

Just off wholesaler calls.  Most are too busy to talk at this time, but today (Thursday) will be the largest volume day this year and possibly 2 years.  Central bank purchases are almost certainly far in excess of paper sales.  We are so close to the marginal cost of production that my contacts are saying the gates are wide open here to purchase all physical that is available....

Continued paper market supply saw another + 45 tons sold into the rise ahead of Thursday’s fix and then in size directly post the fix.  These were immense amounts of paper gold hitting the market, yet there is absolutely zero physical gold for sale and nothing but buy orders in the wholesale market. 

We are below the true costs of production for both gold and silver and it makes a good deal of sense for the central banks to be taking all that is offered.  Fundamentally this will have a significant catch-up impact.

Needless to say we are getting reports of extremely large allocations of gold, but also far larger direct producer deals being struck outside the paper markets.  The one question is, just how long this paper market selling can continue to drive price when such a massive transfer of physical is underway?

(All emphasis mine)

There are strong hands and intelligent minds out there who know the truth and do not sell at every hint of a falling price. They care only about accumulating the physical metal – as insurance in case of system failure - not about short term paper profits. In fact, many of them will NEVER sell; only buy whatever the price as long as this fiat money regime lasts. That is why the price has been rising for the past decade even with heavy manipulation happening on the Comex. Moreover, the Comex doesn't operate in a vacuum. If the price is suppressed there, the buyers - aware that it is available at a discount - will flock there and demand delivery. If it can’t deliver, a break will occur in the prices being quoted on the Comex and the prices being quoted in the real world for the real metal as people dump the future contracts and try to find the physical elsewhere. This will render the futures prices worthless. By some accounts, the Comex is already under increasing pressure for delivery of the metal. So much so, that if you look at the Gold stocks inventory report published by Comex, they have recently put this disclaimer ON THEIR OWN warehouse stock report:

The information in this report is taken from sources believed to be reliable; however, the Commodity Exchange, Inc. disclaims all liability whatsoever with regard to its accuracy or completeness. This report is produced for information purposes only.

For questions regarding this report please email Registrar@cmegroup.com or call (312) 341-3370.

I suggest you call that number right away because if they don't know what's in their own inventory, then who does?

Of course they do realize the seriousness of the Gold situation. If they keep printing to infinity, the currency will eventually collapse against Gold. They are scared and desperate enough that they are thinking of using Volcker’s playbook of letting the interest rates rise figuring maybe that will keep the Gold price in check and the scam may continue. They just floated a trial balloon in the form of fed taper talk just to see how it might work. And boy, it doesn’t look good. Either way the economy is fried (which tells you why they are so interested in having laws and tools at their disposal which will help them control the populace – so they can perpetuate their power through an economic collapse which is sure to occur). And no, rising interest rates won’t save them because the amount of rise needed to stave off Gold is so high that it will probably kill everyone on the planet – either that or people dump the worthless dollars and move to a Gold based system. Basically, the world is going to have a debt jubilee with all the fiat currencies rendered worthless. He who has the Gold will make the rules.

The tail is wagging the dog right now. Nobody – NOBODY – in their right minds is selling the physical. This is all futures movement, which as pointed out above, maybe 100 times larger than the physical market. We have to go through this phase to get to the other side. Think of this as a cleansing process. The fake futures market needs to die before true price discovery can begin. But this process offers a great opportunity to those who recognize it (for a limited time only though). We don’t know how low the futures will go, but there will be a futures price below which the physical won’t be available. Even though gold is already below its average cash cost, we don’t know that level since paper speculators outnumber physical holders by a large margin, so the accumulators of the physical can keep getting the stuff for cheap as long as there is metal available. There is no single one defined moment of the beginning or the end of the disconnect. It’s already started happening on some scale in most countries. With so-called "premiums" hovering around 20-25% for a long time now, silver futures are already worthless for physical buyers in many countries such as India. Premiums on Gold have also soared in India, one of largest physical buyers, while imports and gold coin sales to the public have been practically halted:

India's biggest jewellers' association has asked members to stop selling gold bars and coins, about 35 per cent of their business, adding its weight to government efforts to cut gold imports and stem a swelling current account deficit.

Any guesses why that current account deficit is exploding out of control? That's right - in their greed, the Indian government printed too much local currency, and now they want to the people to be obedient little slaves and stop buying Gold! Bending over must be easier. Of course the "jewelers association" doesn't have a clue.

So, we have tumbling prices (yes, the Indian currency has fallen, but Gold has fallen more, so its gotten “cheaper”), yet no physical available, at least in India. Go figure. Soon this phenomenon will be seen in every country around the world.

Online Physical Gold Price Datasource – Real Gold Price

I’d like to first define what is “Real Gold Price”:

Real Gold Price is the price at which the Real PHYSICAL Metal is available for delivery to the buyer's own PERSONAL possession and is the ONLY ONE that matters. It is NOT the Comex Futures price.

Currently the difference between the two prices (futures vs. physical) is referred to as "premium" that you have to pay over "spot" (Gold futures price). But whatever the nomenclature, the fact remains that the paper Gold price no longer accurately reflects what you have to pay in the market to buy the metal. It’s becoming meaningless for people who want the real stuff. Hence, yours truly has created a reference database/datasource that will accurately track and record in real time the price of real physical Gold. The data is sourced from what the major Precious Metal dealers are charging buyers to deliver real physical Gold to their own possession. It is important to note here that this does not include dealers/suppliers who are running some kind of allocated/unallocated scheme because until and unless the buyers have the metal in their hands, there is no guarantee that the metal has not been sold multiple times over or if indeed it even exists. The supplier may be able to provide a lower price for "the physical" if they are running such a scheme (and given today's rampant fraud in ALL markets, it is more likely than not that most are).

Now anytime the price falls, there is available in real time what price the real metal is going for (I try to get the cheapest price for a given denomination, with the only condition that the dealer is currently shipping the item. Readers will have to help in this endeavor i.e. finding the lowest real price for different denominations). People will be fooled no more by prices of worthless paper contracts.  

For now, the prices are in USD and dealers are also mostly US based, but any dealer can be included as long as they are delivering on time and have price updates online. You can check out the website here:

Real Price of Gold  - http://www.realpriceofgold.com/

More details such as how the data is collected and displayed etc. are available on the site, but just to give a preview, this is how the charts look like:






The site tracks prices for a variety of gold product denominations. Here are what the current real world prices for those denominations look like:



*Comex price for denominations other than 1 Oz were obtained by multiplying by the appropriate factor (pls see website for more details).

As you can see, everything is on a “premium”!

If you look at the charts data, you will see that the real price right now closely tracks the comex price with almost a fixed difference (represented by the rolling average). It is my opinion that as the futures market breaks apart, two things will happen:

1. The fixed difference will increase
2.  The patterns might diverge as well

Indeed, if you look at the screenshot below for the 5 oz product, the premium jumped from the day before even as the Comex price remained almost the same:



Of course, the data collection has only started since 13-Jun-2013, so I will be learning alongwith you. I'm sure there will be many things to see for the raw data doesn’t lie.

The site is a version 1.0, so I’m sure there are many improvements/features that may be needed. Please feel free to email me whatever feedback or questions you have about the site and I will respond as fast as I can. If I get many questions, I will put up a FAQ. Contact info is there on the site.

I remember some technical analysts looking at the Gold price chart and declaring that Gold is now in a bear market. I fully agree. Because the chart they are looking at is, in fact, the Gold futures price chart, which will continue to be decimated. There is no chart out there for the REAL physical Gold price which will continue to be bought as insurance against the stupidity of man and as protection from the depredations of paper money producing Central “Banks”.

This empire of tyranny and violence can only be defeated by elimination of ignorance and deception and bringing out the truth – in EVERY aspect - whether it is mass state-sponsored surveillance or fake futures exchange prices. Hopefully this website will help in exposing the biggest fraud of our times.

_________________________________________________________________________

Some parts of this article have been included from “What is Real Gold Price?” section of the website, also authored by yours truly.  


Note: I realize some of the "premium" part is due to fabricating costs for the item, but how much  fabricating cost can there be for a simple bar or coin? And what is Comex selling? An unadulterated sea of Gold?


Also, some people are suggesting that these premiums are merely dealer profit margins. Sure, the profit margin is part of the premium, but is not the whole premium IMHO. Otherwise how do you explain a 20-25% premium in case of Silver (in many countries)? Surely it is not entirely the dealer's margin. Anyways, as I said, we only care about what price we can GET the real stuff, not some idealistic notion of a price.