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Gold rigging can't be discussed but short squeeze is here, Naylor-Leyland says
3:23p ET Monday, July 15, 2013
Dear Friend of GATA and Gold:
Gold has been in backwardation much longer than just recently, Cheviot Asset Management's Ned Naylor-Leyland tells Alasdair Macleod in the latest GoldMoney interview.
Naylor-Leyland adds that while it is generally acknowledged that interest-rate markets are closely managed by governments, their similarly close management of the gold and silver markets cannot be discussed because doing so would expose the entire architecture of the world monetary system as a fraud.
Naylor-Leyland and Macleod both expect a substantial upward revaluation of gold soon.
Their interview is 27 minutes long and can be heard at GoldMoney's Internet site here:
The interview also touches on Naylor-Leyland's latest "Gold Update" report for Cheviot, which says that as gold went into backwardation last year, government efforts to suppress the price "went into overdrive."
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"Most purchasers of 'gold' in foreign exchange markets," Naylor-Leyland writes, "have no physical backing to their trades (estimated to be around 90 percent unallocated). This is the nature of the OTC 'gold' currency market. Considering that most people invest in gold exactly because they fear the fractional-reserve nature of the banking system, this is a bizarre state of affairs and I believe has led us to the widening backwardation we now see as the new 'normal.'
"What is happening now is that the absolutely inevitable 'run' on the 100:1 leveraged bullion banking system is truly underway. The bullion banks want to get gold back into contango and stop the movement of the remaining inventories by shaking the market lower, using paper leverage to do so. It hasn't worked. Indeed more and more investors are now seeking allocation, delivery, and physical metal at the expense of synthetic products offered by the banks. The squeeze we have been waiting for is closing in; it is always darkest just before dawn."
Naylor-Leyland's commentary is posted at the Scribd Internet site here:
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
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