|Maguire - Stunning $24 Premiums For Gold In Shanghai|
Today whistleblower Andrew Maguire spoke with King World News about the stunning premiums being paid in Shanghai for gold, and what price investors and traders need to watch to see buy stops triggered on the upside in the gold market. This is the third and final in a series of interviews with Maguire lifting the curtain on what is going on behind the scenes in the ongoing gold and silver war which continues to rage. Below is Part III of Maguire’s extraordinary interview.
Whistleblower Andrew Maguire: “We were already hearing rumors two weeks ago of another CME broker default (when gold was pushing $1,700), and I think something had to be done. Up until the Monday when China went on holiday, these dips were being aggressively bought, forcing the bullion banks on the bid to meet every allocation.
This is why gold couldn’t break down below the mid-$1,650s. So what did they (bullion banks) do? They waited until the paper markets had no competition. Waited until China was on holiday and most of Asia was closed, and then they targeted absolutely visible long stops.
This (subsequent action) is drawing in auto-traded, managed money short interest, and essentially this is what they have started to cover into....
“You can be absolutely sure, Eric, that the bullion banks are short covering into this supply. Their footprints are all over it. I mean the premiums in Shanghai this morning were over $24 an ounce for gold. We’re (trading) $1,608 (for gold) in Shanghai. The paper market longs have been tricked into selling. Obviously the managed money and the specs are now being tricked into short selling. Who do you think is on the long side of those trades?
These bullion banks have actually successfully transferred massive short positions into very weak hands. And this next week is going to provide large short fuel above the market. As soon as this leveraged selling is insufficient to meet the bullion bank buying, which will happen, if not today it will be early next week.
They are simply going to run out of sell power vs what the bullion banks are forced to buy because the physical market is so strong.”