Silver Dollar Values Prices Rise, Gold To Rebound Wildly As Market Soon To Crash

NEW YORK - Aug. 8, 2013 - PRLog -- Because the demand for physical gold amongst private investors has remained powerful all through 2013, the substantial price declines in current months took many investors by surprise. Attempting to create sense out of this scenario, speculation has arisen that the so-called 'bullion banks' (the mainly "Too Large to Fail" institutions which are recognized to work closely using the central banks) have lent out, or perhaps sold, gold on a fractional basis, far in excess of what's supposedly held in their vaults. The outcome would have been to multiply significantly the amount of 'apparent' gold in the marketplace and thereby depress prices. Such an action would provide required cover for the embarrassment of currency depreciating central banks' policies. Learn more about GOLD >>> http://priceofgoldperounce.us

A lot of the chatter stems in the mysterious announcement in January by Germany, the world's second biggest holder of gold reserves, to repatriate some 300 metric tons of its gold reserves which are being held in the New York Federal Reserve Bank. It's extensively believed that the request was motivated by internal political demands, which questioned the continued need for Germany's sovereign wealth to become in the hands of foreigners.

The request was for less than 5% of all of the gold that the Fed officially holds in its New York vaults. (Interestingly, an earlier request by Germany to inspect its assets was denied by the Fed). Regardless of the fairly little request (relative to the total holdings), repatriation is anticipated by 2020. BBM For iPhone >>> http://www.bbmforiphone.us

Maybe for worry that she might be 'persuaded' to accept being 'cash-settled' with U.S. dollars in lieu of gold, Germany dared not complain. Either that, or as an essential member of the elite club of central banks, Germany acted 'responsibly' in order to prevent threatening the 'happy equilibrium' of the fractional, central bank-controlled physical bullion marketplace. Nonetheless, the seven-year wait for the return of a deposit rippled through gold markets. Suspicions grew that maybe the Fed no longer held ownership of the 8,133.5 tons of gold that it reports. For years, central banks have declared that they 'do' issues with their gold, such as lending it and engaging in swaps. Some, just like the Austrian central bank, even declare "earnings" from gold, a non coupon-bearing instrument.

News sources reports that most unexpectedly, since Germany's request for partial gold repatriation, the gold inventory of the COMEX has fallen from eleven million ounces to some seven million, or by about 36 %, the lowest level in 5 years. Clearly, dealers have demanded physical delivery on gold buy contracts on an growing scale all through 2013.

Some dealers might even have been prompted to take delivery by the news that bullion banks, such as Morgan Stanley, had been rumored to have skilled serious runs around the physical gold held in their vaults for their customers. As early as January 23, 2013, The Wealth Cycles website commented that, "The issue...will be the near certainty that not all of the gold recorded to become held in the bullion banks is truly there. A lot of it has been pledged and re-pledged against the debt that keeps the world's monetary system afloat."

The letter issued on April 1, 2013 by Dutch State-owned ABN-AMRO bank to holders of paper claims to gold and silver held in its vaults should have shaken complacency. Customers had been advised that any physical metal custodied in the bank would in the future be "cash-settled" and that requests for physical delivery could be denied. Contrary to logic, the price of gold didn't rise over this period of elevated physical uncertainty. Certainly, by the finish of June 2013, the gold price had fallen from $1,668.25 on February 8 an ounce to $1,192, or by some 29 %.

Many have understandably sensed that central banks might nicely have acted to allow bullion banks to take out huge naked short positions in precious metals in order to drive down the price. The prior upward march of gold was a continuing embarrassment to the present fiat currency regime. On July 18, 2013, Fed Chairman Ben Bernanke testified to Congress that, "...no one truly understands gold prices, and I do not pretend to know them either." This statement went unchallenged in Congress but aroused suspicions of gross hypocrisy, even evasion, by some observers. So a lot for deceptive 'forward guidance'.

Most likely, Mr. Bernanke would have been shocked utterly had any Congressman had asked him to clarify why the Gold Forward Provided Price (GOFO) had dipped into unfavorable territory. GOFO stands now beneath each the U.S. Federal Funds Price and also the London Interbank Provided Price (LIBOR). Investors should appreciate two important elements. First, gold prices might have been suppressed for years by central banks and might be set to respond as physical shortages and fiat currency debasement turn out to be clearer. Second, the enhanced worth of physical possession of precious metals might be about to turn out to be manifest. Financial expert Marc Faber recently stated he "loves the high odds of a 'big-time' market crash." Learn more about GOLD >>> http://www.priceofgoldperounce.us