Long Awaited Gold Breakout
By: Jim Willie CB, GoldenJackass.com
Apr 26, 2016
http://bit.ly/1SqYbYW

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PAPER GOLD FRAUD

Paper Gold is a term used to describe the actively traded futures contracts which determine the gold price. Owning such paper instruments is not the same as owning physical gold, since corruption defrauds the investor and interrupts the claim. Most investors remain largely unaware of how disconnected the paper markets (COMEX in United States & LBMA in England) are from reality. The entire concept of contractual (paper) price discovery has been corrupted beyond all recognition. The activity in the last couple years has raised great alarm due to the rapid pace of divergence between paper gold prices and the tangible world fundamentals within the gold arena.

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Paper Gold on COMEX and LBMA is a crime scene. It is toilet paper with gilded surfaces, better described as elaborate corrupt contracts with a few gilded letters at the top. Trading gold futures, which are essentially delivery contracts, must entail some degree of abstract financialization. If someone is merely trading a gold contract in order to arbitrage, then it would be costly, time consuming, and ultimately pointless to shift physical gold around. It is only the paper gold contracts that trade hands, not the physical metal on ramps. The banker cartel relies upon this hardship of movement to create the corrupt scheme.

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Currently, the number of contracts on the COMEX represents 300 times as much paper gold as there is physical metal in the COMEX vaults. Moreover, this number has ballooned at a faster pace over the past two years or so. The 300:1 ratio of contracts to physical ounces is propped by powerful restrictions. The COMEX forbids delivery of gold on the ramps to satisfy a gold contract, under threat of banning the party from participation and entry in the door. Almost nobody takes actual delivery of their metal, except for the big Wall Street banks which steal gold from other depositors. These banks also routinely rig the windows to enable removal of investor gold in the GLD Exchange Traded Fund, and silver from the similar SLV fund. Imagine a gold futures contract with no delivery possible. How absurd! But it has been the reality since June 2012.

The situation is perhaps even more frightening in the London Bullion Market Assn (LBMA). This market sees $trillions worth of gold trades every day. The activity is truly baffling. On individual trading days, more gold changes hands within contract trading (paper shuffling) across the London market than all the available gold in the world. Yet no metal moves anywhere, in a grand charade. These are merely paper transactions, with almost no actual metal ever in movement. The staggering leverage and dilution should not make any sense to the rational observer. However, in sharp contrast, the Eastern nations are accumulating gold in large volume.

GOLD & SILVER PRICE REVERSALS

The gold reaction to the Shanghai market development has been muted. But a powerful reversal is in progress, which should be impossible to halt or to obstruct. An un(u)sual pattern shows itself in an upward bias Cup & Handle toward a reversal, where the $1300 level is well defended.

The signals are many on the positive side. The reversal pattern is powerful and unmistakable. The upward tilt is unusual and potent, as a very bullish signal indeed. An explosive violent rise could occur soon. It might not be noticed well by some analysts. The moving average crossover for the 20-week MA above the 50-week MA is a very reliable signal, confirmed by the stochastics cyclical index. Gold is stodgy but it will prevail and complete the upside breakout. The banker cabal will throw a lot of paper at it, but the paper will be burned and converted to metal by force. These are exciting times. The world is on the verge of witnessing the fall of the banker cabal and the removal of the King Dollar as global reserve currency. The battle is as fierce as the dollar is toxic.

See the gold weekly chart where the breakout seems imminent.