blog.milesfranklin.com / By Bill Holter / February 26th, 2013
Last week Eric Sprott was interviewed by Chris Martenson, the interview and text can be seen in the above link to Zerohedge. Mr. Sprott asks the question, “Where is the Gold coming from and where is it going to?” When looking at the supply and demand equation he is absolutely correct. The Gold HAS to be coming from somewhere. All you need to do is follow his logic. China and India are buying Gold at a pace somewhere near 2,000 tons per year while mines are producing just shy of 2,500 tons per year. Refiners who purportedly used to reclaim and re-refine something like 1,500 tons per year are all of a sudden seeing a drop of 50% of their supply. This only makes sense as “cash for gold” has been sweeping the streets clean since gold crossed the “astronomical” level of $1,000 per ounce. How many more heirlooms and class rings can be left to melt down?
Add to the above that central banks are now buyers of gold as opposed to sellers and the supply/demand equation has been tipped upside down. The gold is coming from somewhere for sure (as it has been for the last 20 years) but where? The answer is obvious and all you have to do is look for where it is “supposed” to be. Namely ETF and central bank holdings. The flip from sellers to buyers by some 900 tons (by central banks) has occurred in a market that even the World Gold Council can only find 4,000 tons of supply. So… China and India are buying 2,000 tons, central banks are buying 500 tons and the mines produce… 2,500 tons per year. WHAT is left? Where is it coming from? Does it matter? Well yes it does if it’s coming from your “stash” represented by a paper receipt but that’s a story for another day.
What I wanted to write about today had to be set up by the above because of the pure unadulterated logic that the numbers just don’t work and some sort of “hanky panky” is and has been taking place for so many years. I wanted to point out that many respected, well known and some even “mainstream” people have come around to the view that GATA has held since 1999. The Gold market is manipulated! I know, this is not breaking news. Slowly but surely the manipulation has become TOO obvious to ignore and people who didn’t want to be thought of as “conspiratorialist” have come out publicly to call a spade a spade.