by Denise Rhyne

Denise:  Should I buy gold and silver now? 

By all means you should buy gold and silver nowwhile U. S. dealers still have coins.  Around the world,
old and silver shortages are very real.  The exchanges in London and New York are almost tapped out of physical gold and silver. By the time most people figure out why the Federal Reserve coordinated the market crash last April, it will be too late for them to convert paper to gold.  

Silver and gold shortages are hidden
by a PAPER Ponzi of epic proportions.

Charles Ponzi

It seems incredible, but most of the gold and silver sold on the COMEX (New York) and the LBMA (London) d o e s
n o t   e x i s t.  
There is only 1 ounce of actual gold or silver stored for ever 100 ounces that are sold in futures contracts and ETFs (GLD/SLV).  And now, even those fractional reserves are at dangerously low levels.  It is true:  99% of the gold and silver sold on the exchanges is mere PAPER.  The PAPER PONZI is a fractional reserve system — 100 to 1.


F A I L S    T O    D E L I V E R
Gold/silver commodities futures contracts are promises to deliver PHYSICAL bullion when contracts are paid in-full.  When delivery customers do not actually take delivery — but instead, agree to “store”  their gold and silver in bullion bank warehouses, the Ponzi can continue.

The PAPER Ponzi breaks down if big customers
demand delivery of gold or silver outside of
the warehouse system of the bullion banks.  

When commodities exchanges (COMEX and LBMA) cannot deliver bullion on the delivery month of a contract, there is a default-mechanism for “fails to deliver.”  Customers are “cash settled.”
It is rumored large customers are paid 20% to 30% premiums so they will quietly accept cash instead of physical bars.

Leading up to the April gold crash, a
RUN on bullion bank vaults was underway.

China and other large entities were demanding their gold — gold that was supposed to be allocated and warehoused in the bullion bank system.  The bullion banks desperately needed gold to satisfy gold delivery-contracts.

Delivery-customers refused to be “cash settled.”
China wanted gold bullion, not U. S. dollars.

To free up inventory, the bullion banks bombarded the gold market with massive, concentrated short-selling of PAPER gold. They drove down the gold price to force the “weak hands” to sell off their PHYSICAL gold.

The PAPER Ponzi works best when countries
store their gold at the N. Y. Federal Reserve.  

•Bullion banks “borrow” from countries.  When Germany and other countries realized there was not enough gold to go around, they requested repatriation of their gold.
The countries are still waiting.  After the Bundesbank request for 300+ metric tonnes of German gold, the country was informed the transfer of gold from the New York Federal Reserve to Frankfurt would be completed by the year 2020.

Physical gold bullion from Germany, Ghana, Switzerland, Ireland, Libya, Finland, Venezuela, Portugal, Mexico, Austria, Iraq, etc. is not stored in allocated accounts at the New York Federal Reserve.  The gold has been “rehypothecated” (used as collateral), leased, loaned, swapped, and sold 100+ times.

•Bullion banks “borrow” gold/silver bullion from the GLD/SLV inventories to fill delivery orders.  

•Bullion banks “borrow” from large customers whose segregated gold/silver is stored in bullion bank vaults. Bullion that was 100%-owned by customers of failed M F Global (Federal Reserve primary dealer), ended up in J P Morgan vaults.  


The Fed: Banking Competitors Became Partners


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