Western Central Banks are close to total surrender says Billionaire Eric Sprott, and he is warning that entities will be totally wiped out overnight when the time eventually comes, and he believes that time is very-soon coming. Desperate Central Banks are quickly coming to the realization that it’s nearly game over for most of them, and finds it very ironic that the most volatile asset class these days is Currencies.
It is very strange that global stock markets are just treading water here in the U.S. Yet we have observed currencies that are flailing all over the place, including the Euro, Yen, Ruble, Canadian and Australian Dollar’s. It strikes him as very bizarre that the financial world in the U.S appears rather strong, while at the same time, Currency Wars are raging on with various Governments, and Central Banks from all around the world.
King World News asked Eric a very important question, How does the U.S deal with the One Quadrillion Dollars of Derivatives currently involved in the U.S markets at present? Eric responded that these derivatives are tied to various instruments, including Currencies. We already saw what happened when the Swiss franc was revalued, it caused companies to go broke overnight.
“You just have to wonder to yourself: How are these Central Banks positioned in these derivative markets? We see this huge volatility in currencies and a lot of it must be by way of Derivatives. Well, this was the problem with the foreign-exchange companies that were wiped out overnight, and history is now gearing up to repeat itself, yet again.
Entities See Violent Change In Their Situation
There are derivative problems in the price of Oil, Emerging Markets, and Bond Markets. So you have to wonder: How is that translating into the derivatives books of these various Banks? We have seen a lot of entities who have seen their financial situation change quite violently and in a very short period of time.”
Radical Gold Revaluation?
It was interesting that after the radical overnight revaluation of the Swiss Franc that many people began to discuss the possibility of this happening in the Gold market at some point — a radical overnight upside revaluation of the Gold price.” We have this massive volatility in the Currency Markets, and Gold is a Currency. Gold has attracted a lot of attention of late.
Something like 84 percent of the world’s population would have made money if they were invested in Gold in the past year. I think we can safely say that nearly 100 percent of the world’s population would have made money if they owned Gold in the month of January. Now there is fear breaking out in Europe surrounding the stability of the Euro and the Banking system, especially in light of the fact that the Greeks may Default.
This is causing people to move into Physical Gold & Silver. Interestingly, we have seen a supposed increase in the tonnage held by the ETF GLD. Yet he believes their so-called holdings of Gold have risen more than 40 tonnes this month. If you start annualizing those numbers, that’s a serious change in annual Gold demand that wasn’t anticipated. We already know looking at the Indian and Chinese data that there is more demand than supply.
This has put more pressure on Western Central Banks to supply that Physical Gold, and if more people start pouring money into real Physical Gold trusts, it will just make the strain on Western Central Banks that much greater.
So is it possible to cause a cessation of Western Central Bank Gold sales? Yes it is, the Western Central Banks may just say, ‘OK, we’ve restricted the price of Gold for this long, but now we are getting called on our Gold. So It’s over.’Also of interest is the fact that there is a huge open interest still outstanding on the Comex. It will be interesting to see how many of those contracts stand for delivery this Friday, and these outstanding contracts are way bigger than the entire inventory at the Comex.
It’s also kind of wild that the type of trading we see in China on a weekly basis is way bigger than the entire dealer inventory on the Comex. You wonder how long can these Banksters (Western Central Banks) keep this up (their price suppression scheme)? The physical demand just won’t let up at these depressed prices, and when you throw in a massive currency war that is taking place on a global basis, it is only making matters worse for the Western Central Banks.
Collapse Of Price Suppression Scheme
Eric wrote an article in 2012 asking, ‘Do the Western Central Banks have any Gold left?’ The reason I asked that question is because I could see all of this demand and I kept wondering: How long can these guys keep this scam up with their physical supplies of gold dwindling away? Then in 2013 they drained 850 tonnes of Gold out of the various Gold trusts and ETFs. With a 4,000 ton a year market, this was a significant increase in supply. Perhaps that took care of the shortfall in 2013 but in 2014 they hemorrhaged even more Gold out of Western Central Bank vaults.
Well, here we are in 2015 and we are hearing more and more about gold repatriations. So when does the day of reckoning come? When that day comes it will mark the breakdown of this latest scheme, just like the collapse of the London Gold Pool in the 1960s. I don’t think they will wait until the last bar of Gold is gone from Western vaults, so the collapse of this latest suppression scheme could happen any day.
Western Central Banks To Finally Surrender
The flow of Gold continues from West to East in large quantities. If the Indians end the import duties on gold that could create another tidal wave of demand. This would force the Western Central Banks to wave the surrender flag. What is very certain is that when you look at the continued strong bid in the Gold market, that day of surrender is getting close, even as the price of Oil and other commodities have collapsed.”