Consequenc​es.......................from Rico

There are always consequences.

Manipulators selling massive amounts of unbacked paper Gold managed to 'drop' the price about 35%.

- This drove the demand for physical Gold 'up' about 53% in Q2.

- The story is pretty much the same for Silver.

As COMEX and LBMA physical inventories shrink, a 'short squeeze' is in the offing...a 'burning' of the shorts.

- JPM is now buying physical Gold in the market to meet delivery demands.

We have had the 29th consecutive day of negative GOFO (Gold is in 'backwardation' and not 'contango') meaning physical Gold is more valuable in the present than Dollars borrowed and secured by Gold. [This has happened for a day or two a few times in past years, but never for a month.]

- Fiat 'cash' (and other paper promises) is increasingly distrusted and thus increasingly worthless, while physical 'in-hand' is the only game going forward.

China knows this. Russia knows this. India knows this. Ben Bernanke knows this. So do Jamie Dimon and Blythe Masters...