With the war in gold continuing to rage, today one of the most respected veterans in the gold world told King World News that the Western central bank cartel which has been capping the gold price for more than a decade is nearing the point of collapse as panicked phone calls are now being made to acquire sizable amount of gold.
James Turk: “The battle for $1,200 gold is really heating up, Eric. The shorts have drawn a line in the sand, and the efforts they are making to cap the gold price is obvious.
“First, there are the hedge funds and specs that are short the gold price. They want to exit their positions with as much profit as possible. So they are defending their short positions with even more shorting in the hope of getting lower prices, which partly explains why Comex open interest has been rising even as the gold price has risen the last few weeks.
But those still short are probably kicking themselves that they didn’t cover when gold was $60 lower. Then there are the central planners who are short and fighting the rise in the gold price by selling ever more promises to pay gold in the future. But interestingly, Eric, there are central planners on the other side too. These are the central banks and other government entities that have bought paper gold in anticipation of taking physical delivery. There are also some institutional buyers in this group.
But regardless whether they are in the public or private sector, they are riding in the same boat. All they hold are paper promises to receive physical metal. And now this group is starting to become aggressive in taking delivery. They don’t want cash settlement — they want physical metal.
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