Switzerland To Buy A Stunning 1,000 Tons Of Physical Gold?

"Today a legend in the business told King World News that Switzerland may be preparing to purchase a stunning 1,000 tons of physical gold.  Keith Barron, who consults with major gold companies around the world and is responsible for one of the largest gold discoveries in the last quarter century, spoke about this remarkable situation and what it means for investors.  Below is what Barron had to say in part II of this exclusive interview.

Eric King:  “Andrew Maguire recently told KWN that the LBMA system was in trouble and cash settled, refusing to give entities their gold.  Earlier you said to me that there is a run on gold at Scotiabank in Canada and UBS in Switzerland.  What do you make of this incredible situation, Keith?”

Barron: 

“What we discussed earlier, the fact that ABN AMRO was refusing to give customers their gold back, is one of the primary things that has triggered this massive run on physical gold and silver....

“And look at how the West has responded.  For instance, Mario Draghi’s statement about Cyprus selling their gold was patently false because that gold has already been re-hypothecated twenty different times.  Meaning, it’s not there to sell anymore.

But that was really a meaningless statement designed to to scare people out of ETFs and free up a lot of physical gold so certain entities who are short of physical gold could get assistance.  That’s what has happened here.

The situation is bad all the way around in the West, and the fact that the Germans have given the Americans 7 years to return a small portion of their gold reserves back to the Bundesbank is incredible.  It is especially revealing when it comes to the desperation that is really going on behind the scenes. 

 

It is going to take the United States 7 years to unwind the leases on just that 300 tons of gold, never mind the other 1,100+ tons of gold the US supposedly has stored for Germany.  But it will take that long just to get that little bit of physical gold back to Germany.

I would also like to point out two very developments taking place in Switzerland.  A movement inside Switzerland has already acquired 100,000 signatures for two things to be put on the ballot.  The first one would eliminate any future sales by the Swiss National Bank. 

But the second, and far more compelling measure, would be for Switzerland to buy back 1,000 tons of gold that it has already sold.  To get 1,000 tons of physical gold in this market is going to be a Herculean task, and it is certainly going to vault the price of gold much higher than current levels.  This will be a very interesting situation to watch unfold in the physical gold market.”

 

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