Kaye: “As
you and I are talking now, we’re a little bit below $1,250 on gold which is
ridiculously low. On the numbers we are looking at that would mean that roughly
half of the production of the mining community of the world is unprofitable,
which is stunning when you think about it.
What is going on is
unprecedented....
“It’s unsustainable, and like
anything that is unsustainable it won’t be sustained. So this is a great
opportunity for people who do have an interest in possibly adding to or
initiating new positions in gold or precious metals. We are at levels that I
think are extremely attractive, Eric.”
Eric King: “Bill, what about this chart that you
sent me going over the various entities out there that hold gold for retail and
institutional investors? Can you talk about that?”
Kaye: “Yes, I’m happy to. Pick up
the Wall Street Journal, the Financial Times, watch CNBC if you want to have
your brain damaged, you’ll get the same narrative (regarding gold).
And it’s a scary narrative, which
is that people are panicked -- there is a bear market in gold. And they (the
mainstream media) never make a distinction between the paper market in gold and
the physical bullion market. That is a very important distinction for your
listeners (and readers) to make.
But the narrative is that people
are panicked, and because they are panicked they are selling into the market to
whoever will buy. And this is why the gold inventories, the Spyder Gold Trust
and the other major exchange traded funds (gold holdings) have been so rapidly
reduced.
The problem with that narrative is
it’s not true ... Those exchange-traded funds are losing and are continuing to
lose a lot of gold because it’s a manipulation. The only people who can get
access to the gold (at the exchange-traded funds) are the bullion banks
themselves, and that’s exactly what they are doing.
And that gold is being transited
from places like London and New York to places like Hong Kong and Shanghai.
This is what’s happening. There is this major migration of gold from the West
to the East. And it’s ongoing, but we’re getting late in the
game.
The Spyder Gold Trust, which is by
far the largest ETF in the world and has provided the majority of the gold that
has been used to execute the scam that is ongoing by the bullion banks, these
guys have lost 30% of their inventory. They have lost roughly 13 million ounces
year-to-date.
Now how much has your friend Eric
Sprott lost? Because he has a similar class of ownership. As I just said, the
Spyder Gold Trust has lost 30% of the gold that they had at the beginning of the
year, and yet Eric Sprott has lost virtually nothing. He has lost a total of
one bar. Now, enquiring minds would ask themselves, if we have a bear market in
physical gold, why have they redeemed 30% of the gold that exists in the Spyder
GLD, but they’ve redeemed nothing in Eric Sprott’s fund (see chart
below)?
The answer is obvious: The major
bullion banks can control and do manipulate what goes on in terms of Spyder GLD
and the other trusts that have the same structure which only they can access.
Whereas the closed-end funds that exist in Canada, Europe, and the Sprott fund
which is run by a reputable guy who is regularly on your program, Eric Sprott,
the people who can redeem (from those funds) are not the bullion banks, but the
actual owners of the funds.
Well, guess what? He (Eric Sprott)
has received only one notification in this entire paper bear market. One
notification this entire year, and that was for one bar. According to Eric, and
I may have heard it on your program, he called the guy up to find out, ‘Why did
you ask for one bar?’ And the guy said, ‘I wanted to test the system.’ As far
as I’m concerned that tells me everything anyone should want to
know.”
King World News note: The chart below shows a
remarkable zero percent loss of physical gold from both the Central Fund of
Canada and Eric Sprott’s Gold Trust during the entire vicious decline in gold.
In contrast, you can also see the extraordinary declines in physical gold
holdings in the global ETFs."
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