Update to the Update: The Attack on Gold — Paul Craig Roberts

Gee whoever would have thunk it. LOL

Tuesday, April 16. The orchestrated attack on bullion in the paper gold market took the spot prices of gold and silver down on Friday and Monday, but actual physical purchases rose during this period. The sales were of paper claims, not of real metal.

The demand for physical possession of bullion rose so strongly that large wholesalers such as www.tulving.com and large retailers such as Gainesville Coins reported sold out items. Also, dealers raised the premiums above the spot price that is charged for coins. From Friday to Monday the premium on Silver Eagles at the large online retailer, Gainesville Coins, rose from $3.75 to $5.99 above the spot price of silver. The percentage increase in premium was larger than the percentage decline in the silver price. Thus, the price of a silver one Troy ounce coin did not drop despite the drop in the spot price. Today (April 16) the price of a silver eagle purchased with a credit card from retailer Gainesville Coins is $30.36. You would never know that the market had fallen out.

Our bullion dealer in a very large city is out of silver completely!

He was asking more than $6 over spot. And getting it!!

Last Edited by Leviticus on 04/17/2013 11:57 AM

I wholeheartedly agree with his analysis.

Gold was about $800 when 0bama won. After doubling in four years, they needed to knock it down before it got completely out of control, but look what happened....

It didn't go down - not to $800, not to $1000, not to $1200.... NO, it's still 70% higher than it was the day 0bama took over.

Not even all those naked shorts could knock it down. Physical is at a premium. People are thanking the Fed for the discount as they buy, buy, buy and curse the scarcity of physical.

As the spread between the paper and the physical increases, the big players will start buying paper futures at a huge discount and then demand delivery. The COMEX will get squeezed, big time.

It will make for a great spectator's sport.

That is what I am doing right now, looking for discounted paper futures and take delivery as soon as contract comes in the money. Wouldn't want to go out too long though!!