Sabre lays it out…

Most GATA supporters have probably read the “Another” piece many times but I’m trying to connect some dots here. Here’s a quote…

You see, when paper trading ( of anything ) volume dries up it’s a bearish sign but when real physical gold volume drops it’s bullish! That’s because gold is being cornered on a scale never seen in history. LBMA is doing it’s best to show real volume exists! The problem is, “if the CBs don’t expand their roll as “primary suppliers” LBMA will implode and in the process create the greatest bull market in oil and gold the world has ever seen. That is why some “Big Traders” are holding ONLY gold as events unfold. Interesting, don’t you think?

Now this quote came over a decade ago but where are we now? We are now witnessing the greatest bull market in oil the world has ever seen. Gold isn’t there yet but it may get there soon. What I find interesting here is this. As GATA has shown, CB selling of gold via the Washington agreement has dried up. Now we hear the IMF is trying to sell their gold. It looks very plausible to me, if you believe “Another”, that the flow of gold to OPEC has all but stopped.

If his theory is right, it certainly dovetails nicely with GATA that the gold cartel is running out of ammo. And from a logical perspective I think Another is right. Why would OPEC accept dollars backed by nothing for the only thing of value they have to offer the world? I know some out there would say they can simply trade the dollars for whatever they want. That is true and they probably are as best they can. However, OPEC is raking in money on a never before seen scale and they cannot exactly walk into the COMEX and take delivery of a few thousand tonnes of gold every six months can they?!

These are interesting times we face now and sadly, “Another” believed that the endgame was the complete obliteration of all currencies, sans physical gold.
Sabre

I’m glad I have a beach to walk on after this most frustrating day. Just when you think the action can’t be worse, it is. Oil has gone bonkers, the CRB is accelerating out of its substantial base, the dollar is about ready to make new lows, and gold receives the Rodney Dangerfield “Get No Respect” routine.

But, soon the bums are going to get overpowered and it will get that respect. So much so, it will be trading like oil before the year ends. Silver too. Some of the reasons why are outlined in James Turk’s usual fine commentary…

“Gold — the Ultimate Inflation and Catastrophe Hedge,”

www.theaureport.com/pub/na/1374

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