Conclusion of a 'must read' piece...
Perhaps the most important development in the world of gold has to do with the fact that China, one of the world’s largest importers of gold, is no longer content to buy their precious metal for the floor of the COMEX or London metals exchange. Why? There are two principal reasons:
☞ The COMEX has more than US $86 billion in contracts (obligations) floating around at any one time. Yet in storage they have slightly less than US $3 billion. So the COMEX is not only woefully short of supply should there be a run, they are allowing large traders to flood the market with paper gold in an effort to suppress the price. If you’re China and you’re building your inventory, that’s not in your best interest.
☞ There are questions regarding the purity of the metal sold by the COMEX and London metals exchanges.
I should mention that a number of larger players, like Sprott and Kyle Bass, are following in China’s footsteps and the end result will be a default by the COMEX and a collapse of the paper system.
All of these big players are now going straight to all the large mining companies and they are inking deals to buy all their production right from the source! That means that the flow of physical into the COMEX will slow to a trickle and eventually dry up altogether. That in turn will expose the biggest fraud of all, i.e. that the US has no gold. The purported massive gold supplies that exist in Ft. Knox, New York and several other places are all a work of fiction. The gold disappeared a long time ago. That should make a lot of foreign central banks that supposedly have gold on deposit in New York, very, very unhappy!
Finally, all of those calling for an end to the gold bull market seem to forget one important thing. All major bull markets end with a spike up based on greed and euphoria and not a top molded out of fear and despair, as would be the case today.# Fear and despair would mark a bear market bottom but it has never signaled a top in a bull market and this will not be the first time. Gold has not topped, I believe the bottom in the reaction is in, and if I am right we are about to embark on the third and final phase of our bull market, and that’s the phase where the general public finally piles into the gold market. It is almost always the most lucrative phase and it is the phase that always caps a major bull market. That phase will take gold up and through US $4,000 with fewer interruptions than most could imagine. My advice is to buy gold (silver) here and hide it some place until all the smoke clears.
Read it from the top: http://www.gold-speculator.com/unpunctured-cycle/74144-shine-light.html
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