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The Final Battle Between Paper And Physical Gold Is Underway, And The Line To Defend For The Cartel Is $1300 Per Ounce

One of the most significant elements in gold price determination is the technical data points that usually spark the central banks to summarily kill any rally, and work to suppress the price using billions in paper contracts.  We saw this most recently on April 21 when in less than 5 minutes, a bullion bank dumped over $2 billion in naked gold contracts, which is 20% of the global mining output for the precious metal.

But these desperate efforts are quickly beginning to fail, and have only a very short-term affect on a price that is strongly in favor of going much higher.  And just as quickly as the central banks and Treasury ordered their lackey banks to naked short gold to protect the dollar five days ago, the price rebounded strongly to actually close the day in the green by a few dollars.

In the newest publication put out today by Dr. Jim Willie, the esteemed statistician and analyst announced that with the opening of China's new price mechanism at the Shanghai Gold Exchange, the final battle between paper and physical gold is underway, and the last line of defense for the paper markets is to hold the $1300 price.


"The Very Best GOLD On The Planet At The Very Best Price"


The Final Battle Between Paper And Physical Gold Is Underway - Where Will You Stand?

For the last year or more, not an elephant, not a gorilla, but a dragon has been found at the dinner table. Its breath has just made everybody at the table totally bald with some scorched red faces. Now all are looking at each other, wondering who will first mention the bald guys at the table. The Shanghai levers are finally functioning, starting with the Gold Fix and continuing with the RMB-based gold futures contract (which delivers gold metal oddly). The game is finally on, as in the climax chapter to the End Game.

Paper gold is totally disconnected from fundamentals. The paper charade is as impressive as it is corrupt. Its enemy is physical gold and related demand. Silk Road nations have strong gold demand, which will disrupt the entire geopolitical balance of power, extending from trade and non-USDollar platforms. The West has the corner on toilet paper used in the gold market. The United States has the corner on the USDollar, used in fraud and illicit tolls.



Paper Gold is a term used to describe the actively traded futures contracts which determine the gold price. Owning such paper instruments is not the same as owning physical gold bullion since corruption defrauds the investor and interrupts the claim. Most investors remain largely unaware of how disconnected the paper markets (COMEX in United States & LBMA in England) are from reality. The entire concept of contractual (paper) price discovery has been corrupted beyond all recognition. The activity in the last couple years has raised great alarm due to the rapid pace of divergence between paper gold prices and the tangible world fundamentals within the gold arena.


The claims of paper contracts per ounce versus actual gold has run to almost 300-to-1 in recent months. It was considered outrageous two years ago when at only 25-to-1 or 40-to-1 in ratio. Imagine the lunacy of even five to six people claiming ownership to your car or house, or better yet your summer cottage by the lake. The dominance of paper gold pricing mechanisms has resulted in profound shortages in supply, as well as horrendous conditions for mining firms. They have been forced to shut down marginal mines, since not profitable. Only a rare few among mining firms like Majestic Silver has undertaken to deny supply to the COMEX, and to call a partial strike against the criminal COMEX organization. Absolutely no equilibrium exists in the gold market, as demand outstrips supply, which quickly vanishes. The shortages have made history in recent months and years.


The Final Battle Between Paper And Physical Gold Is Underway - Where Will You Stand?

Paper Gold on COMEX and LBMA is a crime scene. It is toilet paper with gilded surfaces, better described as elaborate corrupt contracts with a few gilded letters at the top. Trading gold futures, which are essentially delivery contracts, must entail some degree of abstract financialization. If someone is merely trading a gold contract in order to arbitrage, then it would be costly, time consuming, and ultimately pointless to shift physical gold around. It is only the paper gold contracts that trade hands, not the physical metal on ramps. The banker cartel relies upon this hardship of movement to create the corrupt scheme. People do not wish to carry 80 silver coins in their pockets or a kilogram of gold in a suitcase, so instead they use certificates which become instantly corrupted. The necessary evil has grown far beyond its intended proportions, a practice refined and led mainly by the big banks.


Currently, the number of contracts on the COMEX represents 300 times as much paper gold as there is physical metal in the COMEX vaults. Moreover, this number has ballooned at a faster pace over the past two years or so. The 300:1 ratio of contracts to physical ounces is propped by powerful restrictions. The COMEX forbids delivery of gold on the ramps to satisfy a gold contract, under threat of banning the party from participation and entry in the door. Almost nobody takes actual delivery of their metal, except for the big Wall Street banks which steal gold from other depositors. These banks also routinely rig the windows to enable removal of investor gold in the GLD Exchange Traded Fund, and silver from the similar SLV fund. Imagine a gold futures contract with no delivery possible. How absurd! But it has been the reality since June 2012.


The situation is perhaps even more frightening in the London Bullion Market Assn (LBMA). This market sees $trillions worth of gold trades every day. The activity is truly baffling. On individual trading days, more gold changes hands within contract trading (paper shuffling) across the London market than all the available gold in the world. Yet no metal moves anywhere, in a grand charade. These are merely paper transactions, with almost no actual metal ever in movement. The staggering leverage and dilution should not make any sense to the rational observer. However, in sharp contrast, the Eastern nations are accumulating gold in large volume.



The gold reaction to the Shanghai market development has been muted. But a powerful reversal is in progress, which should be impossible to halt or to obstruct. An unsual pattern shows itself in an upward bias Cup & Handle toward a reversal, where the $1300 level is well defended.  – Jim Willie, Silver Doctors


The Final Battle Between Paper And Physical Gold Is Underway - So, Where Will You Stand?

The question is, will you sit by and let the opportunity to acquire real money, GOLD, for you and your family  pass you by?  The time is coming when you won't be able to afford a gram, not to mention an ounce at any price.  The clock is ticking. Where will you stand? You will not find a better quality, nor a better price, apples for apples, of Gold bullion, than you will at Karatbars.  The enclosed video will help you see and understand this fact.  Join the thousands of people around the world, who are securing their families with Karatbars GOLD.  Open your FREE Gold Savings Account, today.  Thank you for your time and attention, and please share this article with those, whom you love and care about.  I wish you much success.  

 L Basheer (LB) Hasan - http://SavinGoldNow.com





Tony Cordingley Don't know too much about the precious metals market, but there is a definite collapse probably equal to that in 2008/2009 coming... especially in the European market! In fact the bubbles that created the collapse are being built again, eg, housing mortgages being sold to people who can not afford them!
May 11, 2016 at 7:41am
Edited 5/11 at 7:43am
Chuck Reynolds I have to agree, the money situation is a very terrible problem.. We can all be hopeful that things will change for the better.. Gold or dollars, the future will tell.
May 2, 2016 at 8:16pm
Richard Garcia Problem – Reaction- Solution ! We were on a gold/silver backed currency for years. Then we were told us all kinds of stories coming from PHD's like from the likes of University of Chicago -- Keynesian economics Of how monetary policy which reduces interest rates is thought to stimulate economic activity, i.e. "grow the economy," and why it is called expansionary monetary policy. So they sold us this idea that metals based financial system was slowing the growth of countries and then the world. One of the many result was to turn the folks into consumers who go to their graves winner cause the consumed the most. I guess somehow? you can take it with you. Today change is in the wind. But be aware the after the REACTION those that gave us the SOLUTIONS to our PROBLEMS where the same ones that caused the current state of affairs. Today it is not just the USA facing financial collapse it is worldwide. I am eyes wide open to solutions from any corner and very worried of those talking about a world war as a solution.
May 1, 2016 at 11:06pm
Merrill Sloan Good post LB. Of course there are those who are able to manipulate anything of material value. These people also have an agenda to not only acquire wealth but the kind of power that is destructive to the way of life of right-thinking people. Never forget that it is easy to pass a law outlawing the possession of commodities. It has been done in the not too distant past.
May 1, 2016 at 5:27am
William P. Eason Yes very god information and it's change is coming when and how big??
April 30, 2016 at 10:22pm
Judy Curtis Great article. I agree that there is likely a financial collapse to come. We need to prepare.
April 30, 2016 at 10:13pm
Louis Harvey There is a collapse looming, and the question remains why hasn't it taken place yet. There is so many reasons why it should have happened already. The signs are there! Just go to purchase goods from the grocery store, and you'll notice that your package are getting smaller but your paying more. Well, its time for a new Gold back system to be put into place and its happening now as most of you probably know. Our Banking System must become basil compliant, and straighten up their act. We all need to invest wisely in the near future. Silver, gold, Markethive is a good start.
April 30, 2016 at 9:20pm
Dennis Roeder I have realized this for some time now. The dollar is not worth the paper it is printed on. And, besides that is is losing its Reserve Currency status around the world. Won't be long before our economy collapses around us and we will be floating in a sea of paper.
April 30, 2016 at 9:11pm
Thomas Prendergast I must stay focused on the job at hand. I feel we are in a race for literal survival so we can ride this wave instead of being destroyed by it. I have always been an advocate of owning gold and owning a business. Excellent article as it is right on Que for the final battle of the banking elite vs China and Russia. Expect a dollar collapse and huge surge in Gold and WW3 to go hot sooner than later. Invest in Gold and startup tech companies, like Markethive
April 30, 2016 at 7:13pm