Q2 Gold Demand WGC Can’t Spell ‘Deco- tana goldfields PLC

1. Q2 Gold Demand: WGC Can’t Spell ‘Deco... - tana goldfields PLC

2. What actually happened in the gold market during the second quarter of 2013? The One Bank launched one of its most savage assaults on bullion markets throughout the entire course of this 13-year bull market, causing all-time record demand for gold – while the market for its (fraudulent) paper-called-gold collapsed. However (potential) gold investors wanting information on those events would have been hard-pressed to decipher what really happened in bullion markets from the fictionalized account of the World Paper Council for Q2. Despite observing itself that demand for paper-called-gold (NYSEARCA:GLD) suffered the largest crash ever, while demand for real gold experienced its greatest spike ever; the WGC simply finds it impossible to spell the word d-e-c-o-u-p-l-i-n-g. This should not be a surprise to regular readers, who now understand that the WGC is little more than a mouthpiece for the One Bank. So when it comes to describing the crimes of the bankers in bullion markets, the mantra is “see no evil, hear no evil, speak no evil.” 

3. Some may attempt to argue that the report of the WGC does try to portray a (somewhat) bullish picture in the sector. It did report that demand for gold bars hit an all-time high. It did report that demand for minted coins hit an all-time. It did mention that global jewelry demand spiked to a five-year high. But what choice does it have? It is (at least supposedly) the World “Gold” Council. And while it does its best to hide data on the gold market (only two years of supply/demand numbers exists for a commodity (NYSEARCA:DBC) which has traded for thousands of years), at the very least it will always be forced to report current sales data. What we had here was the World Paper Council deliberately understating the most-explosive quarter in the history of the world’s gold market. What did the WGC lead with in its deceptive account of this quarter? A fictionalized number which it calls “total demand” – which (as its tag-team partner, Kitco immediately reported) was “down 12% from the same period a year ago.” 

4. In the most-explosive quarter for demand in the history of the gold market, we have the WGC beginning its pseudo-report talking about falling demand. Of course what it calls “total demand” is the demand for real gold minus the plummeting demand for the Banksters’ paper-called-gold. However, there can no longer be any possible excuse in reporting demand for gold and demand for paper-called-gold as a single number, for two reasons. The most-obvious reason is the dichotomy: thedecoupling we have seen in this market as demand for the One Bank’s paper-fraud products collapsed at the same moment that demand for gold hit an all-time high. The second reason, while not as spectacular is no less imperative. The bullion banks (via the Corporate Media) have implicitly confessed that all of their own paper-called-gold is just paper. When the Banksters attacked the gold market in Q2, driving down prices, demand exploded in India – still clinging to the mantle of “world’s largest gold market” (just ahead of China). Since India produces virtually no gold itself, this produced a gigantic gold deficit. How did the bankers and the Corporate Media insist (again and again) that they could “fix” this gold deficit? By selling Indians more of their own paper-called-gold. 

5. And as I rebutted again and again in my own commentaries; as a simple proposition of arithmetic/logic the only way that selling “paper gold” could alleviate a “gold deficit” is if you are merely selling paper, and calling it gold. Fraud – now out in the open. But all of this is totally invisible to the World Paper Council. Indeed, it allowed itself to be pimped-out by the One Bank, sending some of its own foot soldiers to India as sleazy “front men” to try to increase the success of these fraudsters in selling Indians paper-called-gold. Thus when the WGC adds demand for gold, and demand for paper-called-gold together, and calls it total demand; it’s not comparing “apples and oranges.” It’s comparing apples with paper apples. In the former proposition we are dealing with two fruits; in the latter, a fruit and a poor imitation of a fruit. One does not report “total Rolex demand” by adding up demand for genuine Rolex watches plus all the millions of cheap knock-offs also sold around the world as “a Rolex.” Yet this is precisely what the World Paper Council is now doing in headlining “global gold demand” with the fraudulent number it calls “total demand.” The global gold market has decoupled. It’s merely the One Bank, the Corporate Media, and the World “Gold” Council who are trying to pretend this didn’t happen. 

6. Trying hard. Indeed, the bullion banks were forced to soak-up so much of their own fraudulent paper-called-gold, that they themselves are now officially “long gold” (in a typically perverse sort of way). This was forced upon them as the only alternative to the Decoupling reaching such a magnitude that it would have been absolutely impossible to wallpaper over it – even with the Corporate Media’s ‘industrial-strength’ propaganda. What would have happened if the bullion banks had not stepped into this market (as buyers), a market where there were no buyers because of the panic caused by their own attacks on this market (and the relentless, gold-bashing propaganda which accompanied it)? Obviously the collapse in total holdings of paper-called-gold would have been far more spectacular. But more important than that is it prevented a much larger decoupling in price between the gold market and the imitation-gold market. As it was, the discount at which the SPDR Gold Trust (GLD) was trading reached its highest level ever, while (simultaneously) the “premiums” for real gold were soaring to their highest levels ever. The combined effect was to produce a price-decoupling in bullion markets of approximately 20%. But how large would the price-differential have gotten if the Banksters had not stepped in, in such a large way that the world’s biggest Shorts are now “long gold”? Conceivably their paper-called-gold fraud products could have simply gone to zero. 

7. With no buyers to soak-up the vast quantities of that shunned paper, what was merely a Decoupling could have easily become a full-fledged “run” on paper-called-gold – a stampede which fed upon itself until (when the dust settled) there was simply nothing left of the Banksters fraudulent “gold” empire.  Read more: http://www.slideserve.com/tags/tana-goldfields-united-kingdom-gold-investment-scams-how-to-avoid-them http://www.valueinvestingnews.com/tana-goldfields-company