Running the Brinks Gold Vault?.......................from Rico

Spot Gold and spot Silver prices skyrocketed last night on the GLOBEX in the wake of Ben Bernocchio's fireside chat yesterday afternoon.

- Looking at the charts, my first reaction was "Cartel spank" since the gangsters manipulating the markets certainly cannot allow reality to intrude like this.

But, there is more to this. Much more, in fact.

- The registered (private) Gold inventories at the COMEX have been dropping like a rock lately, as the owners rush to get possession of their physical bullion before the hindmost discover what they 'thought' they owned had been re-hypothecated (sold) many times over.

- The price of Gold has been in backwardation for three days in a row (the GOFO) which is both unprecedented and a sure sign of physical bullion delivery problems.

Now another 'dot' has appeared for us to connect. Brinks.

- CME (the owner of COMEX) reports that Brinks is now being drained of private (registered) Gold. The chart shows an almost vertical inventory drop just this week of ~70%. More owners running the bullion bank to reclaim their physical? Looks like it's not just JPM running on fumes (they are 20-25% short of bullion inventory they have already sold and need to deliver).

The wisdom of Marc Faber comes to mind, who said: "You keep your Dollars and I'll keep my Gold, and we'll see which goes to zero first."

- The 'smart money' does not seem to be betting on the Dollar.