On the heels of another plunge in the gold and silver markets, London metals trader and whistleblower Andrew Maguire told King World News this gold takedown is about to backfire violently on Western Central Banks.
Andrew Maguire: “Looking at the physical flows and the aggressive commercial short covering into leveraged specs in the Comex casino, the gold and silver prices will rise quickly once China returns on Sunday night/Monday morning. Monday is also a U.S. holiday so we could expect some fireworks…
With China, the single largest global gold buyer absent, it was clearly not the time for a legitimate seller to obtain the best price to sell gold in size. It is patently clear that this was a directional, officially orchestrated selloff, instigated with no legitimate sell trigger of any sort, and designed to catch the market off guard.
The Flushing Of 1,000 Tonnes Of Paper Gold
The sole objective in flushing over 1,000 tonnes of paper gold was to cover billions of dollars of underwater naked short positions locked out after Brexit at $1,275. I see any move sub this level as short covering fodder for the bullion banks, who act on behalf of the Western central bank officials, and now we revert once more to compressing the rebound spring.
We are viewing this officially sanctioned synthetic discount as a huge, not to be missed opportunity, just as we did last December, $200 lower than today. Margined traders, who I suggested to protect themselves with stops at the round #’s this week, will be in a very good position to utilize dry powder & reload, likely right after Non Farm Payrolls. A pathetic .25% rate rise is now fully baked into gold and silver, but clearly not into the nose bleed Fed propped risk-on stock market.