Let us gain a different perspective
on things, let me start by correlating some of the major players in the market
and how they tie in to one another. One of the largest futures and options
exchanges in the world is the Chicago Mercantile Exchange & Chicago Board
of Trade) the CME group is described by The Economist as "The biggest
financial exchange you have never heard of" created designated contract markets
(DCM) of the CME group. The DCM are the outcome of four very large exchange
groups merged into one, The Chicago Board of Trade (CBOT), NYMEX, and Commodity
Exchange, Inc (COMEX) and CME. In 2010 they owned 90% of the DOWs index and 24%
of the S&P Dow Jones Indices. The CME recently bought the Kansas City Board
of Trade for $126 million. Matter of
fact they have a hand in everything it seems, they even provide “Clearing
services” settlements that specialize in the “clearing of exchange trades”. Now
they operate derivatives exchanges in London
and are the new administrators for the LMBA. The CME even ended a 117 year run
of the silver fix earlier this year with the LMBA. They even changed the
trademarked name from “fix” to “price” just to ensure recognition because they
could not keep the “fix” name.
The question is when and who will gain control
of the gold price? We know China
has been trying now for a while and are close, China stated at the Gold Congress a
month ago it wants control of the physical gold price. With how big the China
HSBC has become, despite the controversies and money laundering. They seem to
have a hand in all parties decision making and are working close with the LMBA
and CME. The LMBA seems at odds with the Gold World Counsel (GWC) their former spokesperson,
so what is really happening here.
How much control does the Financial
Conduct Authority (FCA) and International Swaps and Derivatives Association
(ISDA) really have with the likes of JP Morgan, HSBC, Barclays, Deutsche Bank,
Scotia Mocatta and UBS the heavy holders of bullion and members of London
Precious Metals Clearing Limited. Since
September 22 the LMBA has not been supplying the LME with forward curve data
that has been supplied to us by the market makers since 2009, instead it is
replaced with the Gold Forward Offered rates (GOFO).
The demand for gold is still very
high we see this when we look at charts showing tons being sold and mined. How
do we find the true price and value of gold?
We do know gold is massively undervalued, and heavily manipulated
by the market. Do not just invest in PMs
in case of the market crashing; invest because the fiat money will inevitably
fall. Time and time again the people
that are holding PMs get rich not poor. You
own PMs not just to get rich, but to hold your own economic value. Gold insures that you pass wealth down for
generations to come, it is not just insurance for you, and it is true insurance
for your children’s children and so on. Don’t
be mad at yourself that you missed the one chance you may have to buy gold in the next decade as low is they are, or that you can still even buy these
physical metals at all. In 2008 after
the crash the estimated waiting list for PMs was 2-6 months out, if at all. Estimates on price vary because of the physical gold supply, and that is really more limited than we could ever imagine.
