Ronan Manly
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Ronan Manly
  • 59LesPaul

    Actually the leverage is even higher than you state. According to the 2011 survey only 60% or so of the banks provided trading data for precious metals. The daily trading volume is more likely 8000-10000 tons a day. According to FOFOA, the banks in London were trading 10,000 tons a day in the 1990s.

    If you also assume the 10:1 ratio in silver you are looking at 2-3 billion ounces of silver traded daily in London which would amount to 500-750 billion ounces of silver “traded” per year. London allegedly holds 30,000 tons or so of silver of which over a third back silver ETFs. Considering that the UK had to import silver from the US recently I suggest very little silver is available for delivery.

    This whole scam clearly was set up to suppress precious metal prices. It is utterly preposterous and will ultimately end in disaster.

    Remember evil always destroys itself in the end.

    • Ronan

      Very good comments. I agree with everything you say. The lack of trade reporting by the LBMA, which is now at least 3 years overdue with the LBMA continually pushing back publication dates is also preposterous. But when this trade reporting eventually comes, don’t expect any granular data, just some rolled up high level numbers that they will spin, and trades of central banks will most likely be masked and excluded to hide the activities of the central banks as regards gold loans and swaps and buy/sell trades.

      • Hans van Dijk

        59LesPaul says that all this was set up to suppress precious metal prices. My question would be whether you think this is indeed so. Couldn’t all this phantom trading just as well elevate prices? Either way, price discovery is completely distorted, but I’m not clear which way it would go exactly, and why.

        Secondly, what about the futures markets? My gut feeling tells me that futures markets have a similar phantom like impact on price discovery of underlying assets, as these markets often have become instruments of speculation in stead of their original purpose of insuring the price for a delayed delivery of a real, physical trade.

    • fidelcatstro

      bogus manipulative speculative markets trading gold they don’t really have in their hands..

  • DaveG99

    Thanks for that update Ronan. My question is what is stopping unallocated holders to switch to allocated? Surely they can see the obvious upside here?

  • Phil Ho

    This problem has already been made known for some time. We are simply rehashing the same issue again and again with no solution in sight. The question is what can be done about this? Which Government agency is having oversight over this fractional trading? Is there any controlling body in place, or do they allow for uncontrolled and unlimited fractional trades? Is there a possibility of creating a fund by pooling together similar like minded investors whose main aim was to use the pooled money to trade and ask for physical delivery of gold. Once the pool money is large and the physical gold holding is substantial, the table can be turn again these manipulators, using the physical gold as a backing to get more money and then using the money to buy more gold (similar to what the manipulators are currently doing). Since Gold is finite and most of the physical gold that is used to drive these fractional trades are mainly with the US or Euro central banks, if the amount of money is enough to cause a drastic decline in the physical holdings in their vault, this will break their strangle hold in continuing with this manipulation and push up the price of Gold to their true value. Once this happens, investors can get back their investments with high returns. In any case, the risk to such investors are low since all their investments are backed with real physical gold, and not in some risky stocks.

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